2. The Structure and Culture of a Business Organization
Chapter Eight
The Structure and Culture of a Business Organization
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McGraw-Hill/Irwin
Introduction to Business

3. Learning Objectives
Discuss why organizational structure and culture are important determinants of a company’s ability to pursue a profitable business model.
Identify the relationship between organizational design, structure, culture and the environment.
Identify the main types of organizational structure companies can choose from to group their activities, employees and resources.

4. Learning Objectives
Explain why the need to coordinate functions and divisions is an important element in organizational design and list the main methods companies use to coordinate their activities.
Identify the nature and sources of organizational culture and understand the way it influences and shapes employee behavior and attitudes.

5. Structure, Culture, and the Organization’s Business Model
Organizational structure
Organizational culture
Organizational design

6. Structure, Culture, and the Organization’s Business Model
The Business Model and Organizational Design
Contingency Approach to Organizational Design

7. Functional Structures
Advantages of a Functional Structure
Coordination advantages
Motivational advantages
Disadvantages of a Functional Structure

8. Divisional Structures: Product, Market, and Geographic
a structure that groups employees by function but allows them to focus their activities on a particular product line or type of customer

9. Divisional Structures: Product, Market, and Geographic
Product structure
Market structure
Geographic structure
Matrix Structure
Coordination advantages
Motivational advantages
Disadvantages of a matrix structure

10. Divisional Structures: Product, Market, and Geographic
Advantages of a Divisional Structure
Coordination advantages
Motivational advantages
Disadvantages of a Divisional Structure

11. Coordinating Functions and Divisions
Allocating authority
Specifying work rules
Using formal integrating mechanisms

12. Allocating Authority Tall and flat hierarchies
Minimum chain of command
Centralization and decentralization of authority

13. Work Rules and Standard Operating Procedures
Management by exception
Integrating Mechanisms

14. Integrating Mechanisms
Direct contact
Liaison roles
Task forces
Cross-functional teams

15. Values and Norms
Company values
Company norms

16. Sources of a Company’s Culture
Values of the founder
Organizational socialization
Ceremonies and rites
Stories and language

17. Characteristics of a Strong Culture
Cohesive sets of values and norms that work together to motivate employees
Companies communicate with employees their desire to invest in them
Rewards are directly linked to an employee’s performance and to the performance of the company as a whole