THE ORGANIZATIONAL CULTURE

& STRUCTURE




CHAMARA DE ZOYSA




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Organizational Culture Defined
The basic pattern of shared assumptions,
values, and beliefs considered to be the
correct way of thinking about and acting on
problems and opportunities facing the
organization.

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When people join an organization, they bring
with them the values and beliefs they have
been taught. However, these values and
beliefs are insufficient for helping the
individual succeed in the organization. The
person need to learn how the particular
enterprise does things.


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Characteristics of Organizational
Culture
1. Innovation and risk taking
2. Attention to detail
3. Outcome orientation
4. People orientation
5. Team orientation
6. Aggressiveness
7. Stability
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Physical Structures
Rituals/ Ceremonies
Stories
Language



Beliefs
Values
Assumptions
Artifacts of
Organizational
Culture
Organizational
Culture
Elements of Organizational Culture
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Culture is a Descriptive Term
Organizational culture is concerned with how
employees perceive the seven characteristics
of an organizations culture, not whether or
not they like them
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Do Organizations Have Uniform
Cultures?
A dominant culture expresses the core values
that are shared by a majority of the
organizations members
Subcultures tend to develop in large
organizations to reflect common problems,
situations, or experiences that members face

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Strong vs. Weak Cultures
In a strong culture, the organizations core
values are both intensely held and widely
shared
Strong cultures will:
Have great influence on the
behavior of its members
Result in lower employee
turnover
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Benefits of Strong Corporate Cultures
Strong
Organizational
Culture
Social
Control
Aids
Sense-Making
Social
Glue
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Problems with Strong Cultures
Culture content might be incompatible with the
organizations environment.
Strong cultures focus attention on one mental
model.
Strong cultures suppress dissenting values from
subcultures.
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Cultures Functions
Boundary-defining role
Conveys a sense of identity
Facilitates the generation of commitment
Enhances social system stability
Sense-making and control mechanism

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Keeping a Culture Alive
Selection seek out those who would fit in
Top Management Senior executives establish
norms of behavior through what they say and
do
Socialization help new employees adapt to
the culture
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A Socialization Model
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How Organization Cultures Form
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Creating an Ethical
Organizational Culture
Be a visible role model
Communicate ethical expectations
Provide ethical training
Visibly reward ethical acts and punish
unethical ones
Provide protective mechanisms

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Merging Organizational Cultures
Assimilation
Deculturation
Acquired company embraces
acquiring firms culture
Acquiring firm imposes its culture on
unwilling acquired firm
Integration
Both cultures combined into a new
composite culture
Separation
Merging companies remain
separate with their own culture
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Strengthening
Organizational
Culture
Founders
and leaders
Culturally
consistent
rewards
Stable
workforce
Selection
and
socialization
Managing the
cultural
network
Strengthening Organizational Culture
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Changing organizational culture
The case of Mergers and Acquisitions
Organization
A
Structure
Politics
Emotions
Organization
B
Structure ( two cultures size, age, and history of two firms)
Politics ( Where does the power and managerial decision making really reside)
Emotions ( personal feelings such as thoughts, habits, attitudes, commitment.
These emotions will be a major input into the clash of two cultures)
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Modern Organizational Designs
Modern organizational designs need for flexibility, adaptability
to change, creativity, innovation, knowledge, ability to
overcome environmental uncertainty.

Horizontal
Network
Virtual organization designs


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Modern Organizational Designs
Horizontal Organizations
Horizontal design replace the traditional vertical, hierarchical
organization. The advanced information technology and
globalization environment suggests to use of horizontal
structure to facilitate cooperation, teamwork, and a customer.
Guidelines for horizontal organizational design:
1. Organization revolves around the process, not the task
2. The hierarchy is flattened
3. Teams are used to manage everything
4. Customers drive performance
5. Team performance is rewarded
6. Supplier and customer contact is maximized
7. All employees need to be fully informed and trained


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Modern Organizational Designs
The Contrast Between The Hierarchical And Network
Organization





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Network designs cannot
readily be drawn.
Hierarchical structures can be drawn
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Modern Organizational Designs
Virtual Organization
Virtual organizing requires a strong information technology
platform.

The virtual organization is a temporary network of companies that
come together quickly to exploit fast- changing opportunities.
The partners in the virtual organization share costs, skills, and
access to international markets.
Virtual organizations what is best is core capabilities
1. Technology ( e.g. electronic contacts)
2. Opportunism ( Partnership will be less permanent, less
formal and more opportunistic )






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Modern Organizational Designs
Virtual Organization
3. No borders ( more cooperation among competitors,
suppliers, and customers )
4. Trust
5. Excellence ( because each partner brings its core
competence it is possible to create a best of everything
organization).







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4-24
An
External
Alliance
Principal
Customer
Joint
Venture
Partner
An
Internal
Alliance
A typical TCG firm of
5-10 professionals
A TCG Project
Leader
An Example Of A Virtual Organization
TCG (Technical and Computer Graphics )an Australian based multinational firm
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AUTHORITY AND POWER
With authority comes power. Power is the
ability to influence people toward
organizational objectives.
However, you have limits on your authority
and power.
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Concept of Power
Power - the ability to influence another person

Influence - the process of affecting the thoughts,
behavior, & feelings of another person

Authority - the right to influence another person
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Power
In conjunction with your authority, you use
power to influence others toward the
accomplishment of command goals.
You can use power for personal gain or for the
good of the organization.
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REWARD POWER
Reward power stems from your use of positive
and negative rewards to influence
subordinates. Positive rewards range from a
smile or kind word to recommendations for
awards. Negative rewards range from corre
ctive
type counseling to placing a person on rep
ort
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COERCIVE POWER
Coercive power results from the expectation
of a negative reward
if your wishes are not obeyed. For exa
mple, suppose you have counseled a
subordinate twice for minor infractions of
regulations
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LEGITIMATE POWER
Legitimate power
comes from the authority of your rate
and position in the chain of command. You
use this power in day-to-day
business. Although legitimate power
increases with added responsibilities, you can
decrease that power if you fail to meet all of
your responsibilities
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INFORMATIONAL POWER
Informational power depends on your giving
or withholding of information or having
knowledge that others do not have. Use
informational power when giving orders to
subordinates.
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REFERENT POWER
Referent power derives from your
subordinates identification or association
with you.
You have this power by simply being "the
chief." People identify with the ideals you
stand for. The chief has a pre-established
image. You can enhance that image by
exhibiting charisma, courage, and charm
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EXPERT POWER
Expert power comes
from your knowledge in a specific area throug
h which you influence others. You have expert
power because your subordinates regard you as
an expert in your rating. Subordinates may also
have this type of power.

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Commitment
Consequences of Power
Reward
Power
Legitimate
Power
Coercive
Power
Expert
Power
Referent
Power
Resistance
Compliance
Sources
of Power
Consequences
of Power
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Two Faces of Power


Personal Power
Social Power
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Two Faces of Power


Personal Power
used for personal gain

Social Power
used to create motivation
used to accomplish group goals
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Successful Power Users
Have high need for social power
Approach relationships with a communal
orientation
Focus on needs and interests of others
belief in justice unselfishness
belief in the
authority system
preference for
work & discipline
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Using Power Ethically
Does the behavior produce a good
outcome for people both inside
and outside the organization?
Does the behavior respect the
rights of all parties?
Does the behavior treat all parties
equitably and fairly?
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EMPOWERMENT
Authority to make decisions without having to
first get approval.

Giving Power and Authority Away

Carries Risk and Reward

How does it enhance innovation and why does it
work?

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Political Behavior in Organizations
Organizational Politics - the use of power and
influence in organizations

Political Behavior - actions not officially
sanctioned (authorized) by an organization
that are taken to influence others in order
to meet ones personal goals
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Organizational Areas That Are More
Political Than Rational
Areas
Goals
Decisions Resources
Change
Technology and
external
environment
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Political Implications of Power
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Political Implications of Power
A Final Word on Power and Politics-
To help overcome the negative impact the
organizational politics can have on the ethics of an
organization, use following guide lines
Keeps lines of communication open
Role-model ethical and nonpolitical behaviors
Be ware of game players acting only in their own self-
interests.
Protect individual privacy interests.
Always use the value judgment Is this fair

(Continued)
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Political Implications of Power
A Final Word on Power and Politics-
authenticity (genuineness)
(Continued)
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Advice to Managers
Recognize that power and politics influence all behavior
in organizations and that it is necessary to develop the
skills to be able to understand and manage them.

Analyze the sources of power in the function, division,
and organization in which you work to identify powerful
people and the organizations power structure.

To influence organizational decision making and your
chances of promotion, try to develop a personal power
base to increase your visibility and individual power.
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Questions
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THANK YOU..
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