BUSINESS OPERATIONS

MGMT 8340
BUSINESS STRUCTURES AND CULTURE
AGENDA
▪ Business System Design
▪ Four Key Components
▪ Developing the Organizational Framework
▪ Structure: Types & Building Blocks
▪ Culture and Environment
▪ Management Approach: Five Core Criteria
▪ The Concept of Restructuring
Textbook Readings
▪ Chapter 8: Developing your business structure and culture
LEARNING OBJECTIVES
3.1 Describe the factors involved in developing an organization's
framework.
3.2 Define the types of organizational structures.
3.3 Explain organizational culture and its importance.
3.4 Discuss the relationship between managerial approach and
organizational structure.
3.5 Elucidate the concept of restructuring an aorganization
REVIEW OF LAST WEEK’S MATERIAL
▪ Canada and its Economic System
▪ Key Economic Influencers
▪ The Economy in Simple Terms
▪ The Economic Growth Cycle/Managing Economy Movement
▪ Managing Challenges
3.1 DESCRIBE THE FACTORS INVOLVED IN DEVELOPING AN
ORGANIZATION'S FRAMEWORK.
DEVELOPING THE ORGANIZATIONAL
FRAMEWORK
3 key questions:

1. What is the best structure?

2. What culture or environment is needed?
3. What management approach will best support ?

❑ How the organization will facilitate delivery of operational plan, and

ultimately, its vision and mission
DEVELOPING THE
ORGANIZATIONAL
FRAMEWORK
DEVELOPING THE ORGANIZATIONAL
FRAMEWORK
1. STRUCTURE
• Formal framework around which tasks organized and responsibilities
allocated
• Consider expectations of customers including customer touch points
• Structure not static
• Ongoing monitoring to ensure it continues to meet organizational
needs
• Assessed against marketplace changes (remain pertinent)
• Products/services delivered to the marketplace in superior manner to
competition
DEVELOPING THE ORGANIZATIONAL
FRAMEWORK
Sample: Structural Evolution
3.2 DEFINE THE TYPES OF ORGANIZATIONAL STRUCTURES.
TYPES OF
STRUCTURES :
SIMPLIFIED
 MATRIX STYLE
ORGANIZATION

Organizational structures explained(Video)

 CHARACTERISTI
CS OF VIRTUAL
ORGANIZATION

According to you, what could be some benefits and drawbacks

to organizations which have moved from traditional structures
to virtual?
TYPES OF STRUCTURES: FACTORS TO
CONSIDER
The organizational structure for a company is related to
several factors:
▪ Organization size / Geographic dispersion
▪ Range of business undertakings
▪ Task specialization requirements
▪ Nature of the work
▪ Ability to leverage communication and technology
▪ Perceived best way to connect with customers
3.3 EXPLAIN ORGANIZATIONAL CULTURE AND ITS IMPORTANCE.
ORGANIZATIONAL CULTURE
• How individuals within organization behave ?
• How organization reacts to internal & external challenges?
• Way all layers of organization interact with each other
• Behavioral aspect of internal processes and procedures
• Underlying values, attitudes, and interactive relationships that govern
how work accomplished
• Affected by diversity, immigration and the interconnectivity of the
global marketplace
 CULTURAL
INTERCONNECTIVITY

Did you ever hear your friends, siblings or parents appreciate or

complain about their work place? Share some insights?
 DEVELOPING THE
ORGANIZATIONAL
FRAMEWORK
Zones of Cultural
Influence

The meaning and importance of culture for project success

3.4 DISCUSS THE RELATIONSHIP BETWEEN MANAGERIAL
APPROACH AND ORGANIZATIONAL STRUCTURE.
MANAGERIAL APPROACH
The managerial approach is reflective of the conclusions reached about
structure and culture; based on 5 core criteria:
1. Managerial Hierarchy (Chain of Command)
2. Decision-Making Control
3. Span of Control
4. Coordination of the Work Effort
5. Nature of the Work
KEY
MANAGEMENT
APPROACH
CRITERIA
3.5 ELUCIDATE THE CONCEPT OF RESTRUCTURING
AN ORGANIZATION.
 THE CONCEPT OF RESTRUCTURING
▪ “Addressing the need to change an organization’s business system or
desired position in the marketplace, or to make fundamental changes
to the way an organization does business”
▪ Occurs when companies recognize disconnection to intended strategy
from internal or external disruptions
▪ Examples: response to the need to reduce costs, competitive pressures,
change in consumer behavior, technology obsolescence, or bankruptcy
▪ Not always a reactive business decision,
▪ Can be positive circumstances – significant growth, launch of new
products/services, or acquisitions
▪ Goal: increase value & long-term health of organization
There has been a major global business acquisition in the month of April-May this year.
Does anyone remember what it was? How does it relate to the concept of restructuring?
WHAT HAVE WE LEARNED TODAY?
▪ Business System Design
▪ Four Key Components
▪ Developing the Organizational Framework
▪ Structure: Types & Building Blocks
▪ Culture and Environment
▪ Management Approach: Five Core Criteria
▪ The Concept of Restructuring
 NEXT WEEK
OPERATIONS AND SUPPLY CHAIN MANAGEMENT