Copyright © Houghton Mifflin Company. All rights reserved. 9-1 Chapter 9 Organizations: Structure, Effectiveness, and Cultures

Copyright © Houghton Mifflin Company. All rights reserved.

9-1

Chapter 9

Organizations: Structure, Effectiveness, and Cultures


9-2

Chapter Outline

What Is an Organization? Common Characteristics of Organizations Classifying Organizations


9-3

Chapter Outline (continued)

Organization Charts Vertical and Horizontal Dimensions A Case Study: The Growth of an

Organization


9-4

Chapter Outline(continued)

Contrasting Theories of Organizations The Traditional View Challenges to the Traditional View of

Organizations Organizations as Open Systems: A Modern

View


9-5


Organizational Effectiveness No Silver Bullet A Time Dimension Organizational Decline Characteristics of Organizational Decline Downsizing: An Ethical Perspective


9-6


Organizational Cultures Characteristics of Organizational Cultures Forms and Consequences of Organizational

Cultures The Organizational Socialization Process Strengthening Organizational Cultures


9-7

ORGANIZATIONS

Organization: a cooperative social system involving the coordinated efforts of two or more people pursuing a shared purpose.


9-8

ORGANIZATIONS (continued)

Common Characteristics of Organizations

Coordination of effort Common goal or purpose Division of labor Hierarchy of authority


9-9

Figure 9.1 The Evolution of an Organization Chart


9-10

TYPES OF ORGANIZATIONSTable 9.1

Business organizations (Main problem: Make a profit)

Nonprofit service organizations (Main problem: Selectively screen large numbers of potential clients)


9-11

TYPES OF ORGANIZATIONS (continued)

Mutual-benefit organizations (Main problem: Satisfy members’ needs)

Commonweal organizations (Main problem: provide standardized services to large groups of people with diverse needs)


9-12

TYPES OF ORGANIZATIONS (continued)

For Discussion: Which type of organization would be the most difficult to manage today? Why?


9-13

TRADITIONAL PRINCIPLES OF ORGANIZATION

1. A well-defined hierarchy of authority

2. Unity of command

3. Authority equal to responsibility

4. Downward delegation of authority but not of responsibility


9-14

A MODERN VIEW OF ORGANIZATIONS

Open-System Characteristics Interaction with the environment Synergy Dynamic equilibrium: the process of

maintaining the internal balance

necessary for survival by importing

needed resources from the environment Equifinality: reaching the same result by

different means


9-15

Figure 9.2 Open-System Model of a Business


9-16


(continued)

Extending the Open-system Model

Learning organization: “an organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights.”


9-17

Source: Adapted from discussion in David A. Garvin, “Building a Learning Organization,” Harvard Business Review, 71 (July-August 1993): 78-91.

Figure 9.3 Garvin’s Model of the Learning Organization


9-18


(continued)

For Discussion: What evidence of learning organizations have you seen lately?


9-19

ORGANIZATIONAL EFFECTIVENESS

Organizational effectiveness: meeting organizational objectives and prevailing societal expectations in the near future, adapting and developing in the intermediate future, and surviving in the distant future.


9-20

Source: Adapted from James L. Gibson, John M. Ivancevich, and James H. Donnelly Jr., Organizations: Behavior, Structure, Processes, 5th ed. (Homewood, Ill.: Richard D. Irwin, Inc.), p. 37. © 1991.

Figure 9.4 The Time Dimension of Organizational Effectiveness


9-21

ORGANIZATIONAL DECLINE

Organizational decline: a weakened condition resulting from resource or demand restrictions and / or mismanagement.

“Management complacency is largely

responsible for turning success into decline.” “An organization that has entered a period of

stability has taken the first step toward

decline.”


9-22

Figure 9.5 Complacency Can Lead to Organizational Decline


9-23

1. Centralization

2. No long-term planning

3. Innovation curtailed

4. Scapegoating

5. Resistance to change

6. Turnover

7. Low morale

8. Nonprioritized cuts

9. Conflict

ORGANIZATIONAL DECLINE(continued)

Characteristics of Organizational Decline Table 9.5


9-24

ORGANIZATIONAL DECLINE(continued)

For Discussion:

1. Why is managerial complacency so bad for the organization?

2. What well-known organizations appear to be in decline? How can you tell? What do they need to do to reverse the slide?


9-25

ORGANIZATIONAL CULTURES

Organizational culture: the collection of shared (stated or implied) beliefs, values, rituals, stories, myths, and specialized language that foster a feeling of community among organization members.


9-26

ORGANIZATIONAL CULTURES(continued)

Characteristics of Organizational Cultures

Collective Emotionally charged Historically based Inherently symbolic Dynamic Inherently fuzzy


9-27

Source: Forms adapted from Harrison M. Trice and Janice M. Beyer, The Cultures of Work Organizations (Englewood Cliffs, N.J.: Prentice-Hall, 1993), pp. 77-128. Consequences adapted from Linda Smircich, “Concepts of Culture and Organizational Analysis,” Administrative Quarterly, 28 (September 1983): 339-358.

Figure 9.6 Forms and Consequences of Organizational Cultures


9-28

ORGANIZATIONAL CULTURES(continued)

For Discussion:

1. What characteristics of organizational culture can you detect in your present (or past) work organization?

2. Would you call the organization's culture healthy or unhealthy? Why?

3. What stories have you heard that reveal useful information about a particular organization?

Documents

Copyright © Houghton Mifflin Company. All rights reserved. 9-1 Chapter 9 Organizations: Structure, Effectiveness, and Cultures