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Summary Organization Theory, - H13-14

Summary of ca. 1000 words of Chapter 13 & 14
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Organizational Structure (EBP670C05)

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Chapter 13

Organizational culture: a system of shared meaning within an organization beliefs, symbols, rituals, practices, behavior, common understanding, etc. Terminal values: the desired end-state or outcome that people try to attain quality or performance Instrumental values: desired modes of behavior standards, nature of cooperation, communication-patterns

Symbolic-interpretive approach to culture: membership of an organization not only provides economic rewards, but also a sense of meaning and belonging somewhere (identification).

Environment influences the organization’s culture. Key characteristics where cultures differ (to ‘measure’ culture): -individual initiative -risk tolerance -direction -integration -management support -control -identity -reward system -conflict tolerance -communication patterns

Dominant culture: the overriding core values shared by the majority of an organization’s members Core values: the primary values expressed by an organization’s dominant culture Subcultures: separate cultures encompassed within organizational subunits

Strong culture: a culture characterized by intensely held, clearly ordered and widely shared core values -the stronger an organization’s culture, the more important it is that culture be congruent with the other variables -external fit: culture will conform to strategy and environment -internal fit: culture matched to technology -when environment and technology change, so must the culture -strong culture promotes behavioral consistency, like high formalization does as well -the stronger the culture, the less formalization is needed

Ways in which a culture is sustained -selection practices -actions of top management -socialization -use of appropriate rewards and punishments

Deeper aspects of culture -stories -rituals -material symbols -observation and experience -language

Managing culture: changing the organisation’s culture

Factors influencing cultural change - Dramatic crisis o Shock that undermines the status quo o Calls into question current practices o Opens the door to accepting a different set of values that can respond better to the crisis, and the post-crisis environment o More widely the crisis -> greater its contribution to preparing cultural change - Long-term slow decline o Realisation organisation entered a period of slow or no growth -> successful cultural change programs - Leadership turnover o As top management has a major influence in transmitting culture, a change in organisation’s key leadership positions facilitates the imposition of new values. - Life-cycle stage o Cultural change is easier when the organisation is in transition from the formation stage to the growth stage and from maturity into decline - Age o The younger an organisation, the less entrenched its values will be o Reason: have no long-serving employees and lower levels of formalisation - Size o Cultural change is easier to implement in a small organisation o Reason: easier to reach employees, communication is clearer and role models are more visible - Strengths current culture o Weak cultures should me more amenable to change than strong ones - Absence of subcultures o The more subcultures there are, the more resistance there will be to changes in the dominant culture

Techniques of managing organisation culture - Applying firm leadership - Seeking political support - Changing key personnel - Implementing structural changes - Avoiding micro-managing the details - The need to be patient - Applying appropriate management skills

  1. Creativity o Development of products/markets o Professional & sophisticated management is needed
  2. Direction o More structure, bureaucracy leading to a direction o Decentralization is compulsory for success, managers are reluctant
  3. Delegation o Divisionalised structured evolves o Control is hard to designate
  4. Coordination o Is reached via support staff o Leads to line-staff conflicts (too many rules)
  5. Collaboration o Solving the crisis by strong interpersonal collaboration (strong company culture i.) o Any new crisis can exist from here

Paradox: Success leads to its own new problems.

Hanks’ growth model for high-tech organizations: 1. Start-up stage: - Simple-structure, centralized, low horizontal differentiation. - Research&Development 2. Expansion stage: - Organizational growth, centralized, higher formalization. 3. Late expansion stage: - Develop structure, more decentralized 4. Maturity stage: - Decentralized management, high formalization, greater horizontal specialization

Organizational decline: a long-lasting and ongoing decrease in the overall activity of the organization. external causes: mature markets, technological obsolescence, loss of market share, globalization, mergers and acquisitions, institutional rigidities. Population ecology: approach which seeks to identify characteristics in the environment which contribute to organizational failure: population density, organizational life cycle, new & young organizations

Behavioral dimensions of decline: the influence of behavioral factors on organizational decline. contributors: self-fulfilling prophecy, groupthink, management perceptions, selective perception, rigidity effect, framing.

Administrative component: the number of people in an organization who engage in support activities. The administrative support group, because of its power, is more effective in resisting cutback pressures. the ratio of supportive staff to operatives will be higher at the same level of total organizational size in the decline stage administrative rationality, which can explain the size-structure relationship in growth, is replaced by a power struggle explanation in decline.

Stages of decline: decline is not a continuous process, when exercised wisely and appropriately, management can end or slow the decline process.  Weitzel & Jonsson model: decline consisting of five stages:

  1. Blinded decline: the organization fails to anticipate or detect internal or external influences which can threaten the organizations’ survival.
  2. Inaction: the signs of decline are apparent but the organization chooses to do little or nothing about them.
  3. Faulty action: they see the multiplication of the external signs of decline, even though action is being taken to arrest the decline.
  4. Crisis: opportunities to save the organization are starting to run out.
  5. Dissolution: decline is irreversible.

Potential managerial problems when organizations decline:  increased conflict, increased politicking, increased resistance to change, loss of top management

credibility, change in workforce composition, increased voluntary turnover, decaying employee

motivation

Solutions to organizational decline: - Aligning the strategy with environmental realities - Increasing communication - Centralizing decision making - Redesigning jobs and work practices - Developing innovative approaches to cutbacks

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Summary Organization Theory, - H13-14

Vak: Organizational Structure (EBP670C05)

495 Documenten
Studenten deelden 495 documenten in dit vak
Was dit document nuttig?
Chapter 13
Organizational culture: a system of shared meaning within an organization
beliefs, symbols, rituals, practices, behavior, common understanding, etc.
Terminal values: the desired end-state or outcome that people try to attain
quality or performance
Instrumental values: desired modes of behavior
standards, nature of cooperation, communication-patterns
Symbolic-interpretive approach to culture: membership of an organization not only provides
economic rewards, but also a sense of meaning and belonging somewhere (identification).
Environment influences the organization’s culture.
Key characteristics where cultures differ (to ‘measure’ culture):
-individual initiative
-risk tolerance
-direction
-integration
-management support
-control
-identity
-reward system
-conflict tolerance
-communication patterns
Dominant culture: the overriding core values shared by the majority of an organization’s members
Core values: the primary values expressed by an organization’s dominant culture
Subcultures: separate cultures encompassed within organizational subunits
Strong culture: a culture characterized by intensely held, clearly ordered and widely shared core
values
-the stronger an organization’s culture, the more important it is that culture be congruent with the
other variables
-external fit: culture will conform to strategy and environment
-internal fit: culture matched to technology
-when environment and technology change, so must the culture
-strong culture promotes behavioral consistency, like high formalization does as well
-the stronger the culture, the less formalization is needed
Ways in which a culture is sustained
-selection practices
-actions of top management
-socialization
-use of appropriate rewards and punishments
Deeper aspects of culture
-stories
-rituals
-material symbols
-observation and experience
-language