Organizational Structure and Culture

Question 1

The process of:

Answer 1

• Creating, implementing, monitoring, and modifying
• The structure, process, and procedures of an organization

Question 2

Key components

Answer 2

• structure
• culture
• control

Question 3

Organizational Structure

Answer 3

• Determines how efforts of individuals and teams are orchestrated
• How resources are distributed

Question 4

Org Structure Types

Answer 4

(1) Specialization
(2) Formalization
(3) Centralization
(4) Hierarchy

Question 5

Specialization

Answer 5

• Describes the degree to which a task is divided into separate jobs
• Larger firms: have a high degree of specialization
• Small ventures: low degree of specialization

Question 6

Formalization

Answer 6

• The extent to which employee behavior is guided by rules and procedures

Pros:
Ensures consistent and predictable results

Cons:
Slower decision making
Reduced innovation
Hindered customer service

Question 7

Centralization

Answer 7

• The degree to which decision making is concentrated at the top of the organization
• Affects strategic planning
• Top down strategic planning takes places in highly centralized organizations
• Planned emergence is found in more decentralized organizations

Question 8

Hierarchy

Answer 8

The formal, position based reporting lines
- Who reports to who

Span of control
- The number of employees who directly report to a manager

Question 9

Mechanistic

Answer 9

• Specialization and formalization
• Tall hierarchies
• Centralized decision making

Question 10

Organic

Answer 10

• Little specialization and formalization
• Flat organizational structure
• Decentralized decision making

Question 11

Organizational Culture

Answer 11

• Shared values and norms of an organization’s members
• Values: what is considered important
• Norms: appropriate attributes and behaviours
• Expressed through artifacts: physical space, symbols, events, vocabulary
• Comes from: founder imprinting, values (should be linked to a reward system)

Question 12

Change in Org Culture

Answer 12

• When the environment changes: a firm must hone, refine, and upgrade to ensure a core rigidity does not emerge
• New leadership: changes in strategy and structure