MGMT1001 Lecture Notes - Lecture 9: Common Purpose, Centralisation, Formal System

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Organisational culture: system of shared beliefs and values within organisation that
guides behaviour of its members.
The 4 types of organisational cultures:
Clan
-
Adhocracy
-
Hierarchy
-
Market
-
Competing values framework
Clan "doing things together"
Thrust: Collaborate
Means: Cohesion, participation, communication, empowerment
Ends: Morale, people, development, commitment
Adhocracy "doing things first"
Thrust: Create
Means: Adaptability, creativity, agility
Ends: Innovation, growth, cutting-edge input
Hierarchy "doing things right"
Thrust: Control
Means: Capable processes, consistency, process control, measurement
Ends: Efficiency, timeliness, smooth functioning
Market "getting job done"
Thrust: Compete
Means: Customer focus, productivity, enhancing competitiveness
Ends: Market share, profitability, goal achievement
Three levels of culture
Observable artefacts: Physical manifestations such as manner of dress,
awards, myths and stories about the company, decorations, rituals and
ceremonies, behaviour exhibited by managers and employees.
1)
Espoused value: The explicitly states values and norms preferred by
organisation
2)
Basic assumptions: The core beliefs that employees have about their
organisation, which are not observable
3)
Three perspective on culture-performance link
A strength perspective: Assumes that strength of corporate culture is related
to firm's long-term financial performance
1)
A fit perspective: Assumes that organisation's culture must align, or fit, with
its business or strategic context.
2)
An adaptive perspective: Assumes that most effective cultures help
organisations anticipate and adapt to environmental changes.
3)
Adaptive cultures seem to be best predictor of long-term financial
performance.
-
How can culture be changed?
Formal statements1)
Slogans and sayings2)
Stories, legends and myths3)
Leader reactions to crises4)
Role modelling, training and coaching5)
Physical design6)
Rewards, titles, promotions and bonuses7)
Organisational goals and performance criteria8)
Measurable and controllable activities9)
Organisational structure10)
Organisational systems and procedures11)
Organisational structure: A formal system of task and reporting relationships that
coordinate and motivate organisation's members so that they can work together to
achieve organisations' goals.
Elements of organisational structure
Common purpose: unifying members1)
Coordinated effort: working for common purpose2)
Division of labour: work specialisation for greater efficiency3)
Hierarchy of authority: the chain of command4)
Span of control: narrow versus wide5)
Authority, responsibility and delegation: line versus staff positions6)
Centralisation versus decentralisation of authority7)
Basic types of organisational design
Traditional designs:
Simple structure
-
Functional structure
-
Divisional structure
-
Matrix structure
-
Creating the best structure
Environment - mechanistic vs organic1)
Differentiation vs integration2)
Stages in the life cycle3)
Link between strategy and structure4)
Week 9 Lecture
Friday, 4 May 2018
10:19 pm
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