Management A Practical Introduction Third Edition Angelo Kinicki

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Management A Practical Introduction Third Edition Angelo Kinicki & Brian K. Williams Kinicki/Williams, Management:

Management A Practical Introduction Third Edition Angelo Kinicki & Brian K. Williams Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin

Chapter 8: Organizational Culture, Structure, & Design Building Blocks of the Organization v. What

Chapter 8: Organizational Culture, Structure, & Design Building Blocks of the Organization v. What Kind of Organizational Culture Do We Have? v. Developing High Performance Cultures v. What is an Organization? v. Elements of an Organization v. Types of Organizational Cultures v. Creating the Best Structure v. Building a Learning Organization Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 2

8. 1 What Kind Of Organizational Culture Will You Be Operating In? WHAT IS

8. 1 What Kind Of Organizational Culture Will You Be Operating In? WHAT IS AN ORGANIZATIONAL CULTURE? v. Organizational culture (also called corporate culture) is a system of shared beliefs and values that develops within an organization and guides the behavior of its members v. It is the organization’s personality There are two levels of corporate culture: v. The invisible level v. The visible level Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 3

Layers of Organizational Culture v Invisible Level: Core Culture v Not seen by the

Layers of Organizational Culture v Invisible Level: Core Culture v Not seen by the naked eye. v Consists of values, beliefs, and assumptions v Core culture might be associated with “it’s the way we do things around here” v Often has two sources: 1) Visions, assumptions, and biases of founders 2) Outlook that initial employees learned from their own experiences Mc. Graw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 4

Layers of Organizational Culture v. Visible Level: v. Observable culture v. Manifestations of culture:

Layers of Organizational Culture v. Visible Level: v. Observable culture v. Manifestations of culture: v. Symbols v. Stories v. Heroes v. Rites and rituals Mc. Graw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 5

8. 1 What Kind Of Organizational Culture Will You Be Operating In? v-symbols are

8. 1 What Kind Of Organizational Culture Will You Be Operating In? v-symbols are objects, acts, qualities, or events that convey meaning to others v-stories are narratives based on true events which are repeated and sometimes embellished to emphasize a particular value v-heroes are people whose accomplishments embody the values of the organization v-rites and rituals are the activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization’s life Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 6

8. 1 What Kind Of Organizational Culture Will You Be Operating In? WHY IS

8. 1 What Kind Of Organizational Culture Will You Be Operating In? WHY IS CULTURE IMPORTANT? 1. Culture provides an opportunity to reinforce the company’s message 2. Culture helps to get everyone on board 3. Culture helps companies manage conflict and change effectively 4. Culture helps employees understand why the company does what it does and how it will achieve its long term goals Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 7

Four Functions of Organizational Culture v It gives members an organizational identity v It

Four Functions of Organizational Culture v It gives members an organizational identity v It facilitates collective commitment v It promotes social-system stability v It shapes behavior by helping employees make sense of their surroundings Mc. Graw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 8

8. 1 What Kind Of Organizational Culture Will You Be Operating In? Figure 8.

8. 1 What Kind Of Organizational Culture Will You Be Operating In? Figure 8. 1: Four Functions Of Organizational Culture Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 9

8. 2 Developing High-Performance Cultures WHAT ORGANIZATIONAL CULTURE ENHANCES ECONOMIC PERFORMANCE? There are three

8. 2 Developing High-Performance Cultures WHAT ORGANIZATIONAL CULTURE ENHANCES ECONOMIC PERFORMANCE? There are three perspectives of how culture can enhance performance: 1. The strength perspective assumes that the strength of a corporate culture is related to a firm’s long-term financial success 2. The fit perspective assumes that an organization’s culture must align or fit with its business or strategic context 3. The adaptive perspective assumes that the most effective cultures help organizations anticipate and adapt to environmental changes v. Studies show that in the long-term, financial performance is highest for firms with an adaptive culture Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 10

8. 2 Developing High-Performance Cultures HOW CAN CULTURE BE EMBEDDED IN AN ORGANIZATION? v.

8. 2 Developing High-Performance Cultures HOW CAN CULTURE BE EMBEDDED IN AN ORGANIZATION? v. The values and beliefs of a culture are shared with members of the organization using a variety of mechanisms: 1. Formal Statements - culture can be embedded in an organization through formal statements of philosophy, mission, vision, and values 2. Slogans & Sayings - corporate cultures can be promoted through slogans and sayings 3. Stories, Legends, & Myths - telling stories, legends, and myths can help embed desirable values in an organization 4. Leader Reactions to Crises - how top managers respond to critical incidents sends a message to employees Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 11

8. 2 Developing High-Performance Cultures 5. Role Modeling, Training, & Coaching - organizational culture

8. 2 Developing High-Performance Cultures 5. Role Modeling, Training, & Coaching - organizational culture can be promoted through role modeling, training programs, teaching, and coaching 6. Physical Design - the physical design of workspaces, buildings, and so on can also help embed corporate culture 7. Rewards, Titles, Promotions, & Bonuses - companies use rewards, status symbols, promotions, and so on to encourage desirable organizational behavior 8. Organizational Goals & Performance Criteria - desired organizational behavior and goals can be promoted through criteria for recruiting, selecting, promoting, and dismissing people Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 12

8. 2 Developing High-Performance Cultures 9. Measurable & Controllable Activities - companies can measure

8. 2 Developing High-Performance Cultures 9. Measurable & Controllable Activities - companies can measure and control certain activities to foster a certain culture 10. Organizational Structure - how an organization is structured can send a clear message about its organizational culture 11. Procedures For Self-Development - procedures can be established to help employees develop according to organizational goals Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 13

Practical Action: Fitting into an Organization’s Culture v Get to know some people and

Practical Action: Fitting into an Organization’s Culture v Get to know some people and listen to what they have to say v Remember the seven second rule for first impressions v Make it easy for others to give you feedback v Get something done Mc. Graw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 14

Practical Action: When You Should and Shouldn’t Delegate v Delegate routine and technical matters

Practical Action: When You Should and Shouldn’t Delegate v Delegate routine and technical matters v Delegate tasks that help your subordinates grow v Don’t delegate confidential and personal matters v Don’t delegate emergencies v Don’t delegate special tasks that your boss asked you to do —unless you have his or her permission v Match the tasks delegated to your subordinates’ skills and abilities Mc. Graw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 15

8. 3 What Is An Organization? v Organization: is a system of consciously coordinated

8. 3 What Is An Organization? v Organization: is a system of consciously coordinated activities or forces of two or more people. v. For profit organizations v. Formed to make money by offering products or services v. Not-for-profit organizations v. Formed to offer services to clients, not to make profit for its owners (hospitals, colleges) v. Mutual-benefit organizations v. Voluntary collectives whose purpose is to advance member interests (unions, trade associations) Mc. Graw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 16

8. 3 What Is An Organization? HOW ARE ORGANIZATIONS STRUCTURED? Organizations can be represented

8. 3 What Is An Organization? HOW ARE ORGANIZATIONS STRUCTURED? Organizations can be represented in an organization chart (a box-and-lines illustration showing the formal lines of authority and the organization’s official positions) Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 17

8. 3 What Is An Organization? Figure 8. 2: Organization Chart Kinicki/Williams, Management: A

8. 3 What Is An Organization? Figure 8. 2: Organization Chart Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 18

The Organization Chart Board of Directors Strategic Planning Advisor Chief Executive Officer Legal Counsel

The Organization Chart Board of Directors Strategic Planning Advisor Chief Executive Officer Legal Counsel President Cost Containment Staff Executive Administrative Director of Personnel Director of Admissions Director of Patient & Public Relations Mc. Graw-Hill/Irwin Executive Medical Director of Nutrition & Food Services Director of Accounting Director of X-Ray & Laboratory Services Director of Pharmacy Director of Surgery Chief Physician Director of Outpatient Services Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 19

8. 3 What Is An Organization? v. The vertical hierarchy of an organization shows

8. 3 What Is An Organization? v. The vertical hierarchy of an organization shows the chain of command, and the official communication network v. The horizontal specialization shows the different jobs or work specialization of an organization Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 20

8. 4 The Major Elements Of An Organization WHAT ARE THE COMMON ELEMENTS OF

8. 4 The Major Elements Of An Organization WHAT ARE THE COMMON ELEMENTS OF AN ORGANIZATION? v. There are seven elements common to all organizations: 1. Common Purpose - a common purpose unifies employees or members and gives everyone an understanding of the firm’s reason for being - mission 2. Coordinated Effort - organizations achieve a common purpose by coordinating individual efforts into a group or organization-wide effort 3. Division Of Labor - the arrangement of having discrete parts of a task done by different people is referred to as work specialization Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 21

8. 4 The Major Elements Of An Organization 4. Hierarchy Of Authority - the

8. 4 The Major Elements Of An Organization 4. Hierarchy Of Authority - the control mechanism for making sure the right people do the right things at the right time is called the hierarchy of authority or chain of command 5. Span Of Control - the span of control or span of management refers to the number of people reporting directly to a given manager Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 22

Spans of Control: Narrow versus Wide CEO Narrow T M F F F F

Spans of Control: Narrow versus Wide CEO Narrow T M F F F F F M F F F F CEO M M F F T M Wide F Key: T = Top manager M = Middle manager F = First-line (supervisory) manager Mc. Graw-Hill/Irwin F F M M F F F F M F F F Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 23

8. 4 The Major Elements Of An Organization 6. Authority, Responsibility, & Delegation –

8. 4 The Major Elements Of An Organization 6. Authority, Responsibility, & Delegation – authority, accountability, responsibility, and the ability to delegate are all part of an organization’s elements 7. Centralization Versus Decentralization - when important decisions are made by higher-level managers, the organization has centralized authority, when important decisions are made by middle-level and supervisory-level managers, the organization has decentralized authority Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 24

Eight Organizational Structures 1) Simple structure: for the small firm 2) Functional structure: grouping

Eight Organizational Structures 1) Simple structure: for the small firm 2) Functional structure: grouping by similar work specialties 3) Division structure: grouping by similarity of purpose 4) Conglomerate structure: grouping by industry 5) Hybrid structure: functional & divisional used within the same organization 6) Matrix structure: a grid of functional & divisional for two chains of command 7) Team-based structure: eliminating functional barriers to solve problems 8) Network structure: connecting a central core to outside firms by computer connections Mc. Graw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 26

8. 5 Basic Types Of Organizational Structures WHAT ARE THE BASIC TYPES OF ORGANIZATIONAL

8. 5 Basic Types Of Organizational Structures WHAT ARE THE BASIC TYPES OF ORGANIZATIONAL STRUCTURES? 1. The simple structure has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization and is often used in the very early stages of a firm Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 27

8. 5 Basic Types Of Organizational Structures Figure 8. 4: Simple Structure: An Example

8. 5 Basic Types Of Organizational Structures Figure 8. 4: Simple Structure: An Example There is only one hierarchical level of management beneath the owner Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 28

8. 5 Basic Types Of Organizational Structures WHAT ARE THE BASIC TYPES OF ORGANIZATIONAL

8. 5 Basic Types Of Organizational Structures WHAT ARE THE BASIC TYPES OF ORGANIZATIONAL STRUCTURES? 2. In a functional structure, common in both profit and nonprofit organizations, people with similar occupational specialties are put together in formal groups Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 29

8. 5 Basic Types Of Organizational Structures Figure 8. 5: Functional Structure: Two Examples

8. 5 Basic Types Of Organizational Structures Figure 8. 5: Functional Structure: Two Examples Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 30

8. 5 Basic Types Of Organizational Structures 3. When people with diverse occupational specialties

8. 5 Basic Types Of Organizational Structures 3. When people with diverse occupational specialties are put together in formal groups, a divisional structure is in place v. Product divisions group activities around similar products or services v. Customer divisions group activities around common customers or clients v. Geographic divisions group activities around regional locations Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 31

Divisional Structure Product Divisional Structure Motion Pictures & TV Division President Customer Divisional Structure

Divisional Structure Product Divisional Structure Motion Pictures & TV Division President Customer Divisional Structure Consumer Loans Mc. Graw-Hill/Irwin Internet Products Division President Mortgage Loans Geographic Divisional Structure Western Region Magazine & Book Division Music Division Business Loans Agriculture Loans Southern Region Eastern Region President Northern Region Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 33

8. 5 Basic Types Of Organizational Structures 4. The conglomerate structure groups divisions or

8. 5 Basic Types Of Organizational Structures 4. The conglomerate structure groups divisions or business units around similar businesses or industries Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 34

Conglomerate Structure This resembles the structure of Tyco International President Electronics Mc. Graw-Hill/Irwin Fire

Conglomerate Structure This resembles the structure of Tyco International President Electronics Mc. Graw-Hill/Irwin Fire & Security Healthcare Plastics & Adhesives Engineered Products & Services Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 36

8. 5 Basic Types Of Organizational Structures 5. A hybrid structure uses functional and

8. 5 Basic Types Of Organizational Structures 5. A hybrid structure uses functional and divisional structures in different parts of the same organization Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 37

Hybrid Structure Product Divisional Structure President Cadillac Vice. President, Production Manager Region I President

Hybrid Structure Product Divisional Structure President Cadillac Vice. President, Production Manager Region I President Buick Vice. President, Marketing Manager Region II Vice. President, Finance Manager Region III President Pontiac Vice. President, Human Resources Manager Region IV President Chevrolet Functional divisional structure Geographical divisional structure A Hypothetical example of what GM might use Mc. Graw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 38

8. 5 Basic Types Of Organizational Structures 6. When an organization combines functional and

8. 5 Basic Types Of Organizational Structures 6. When an organization combines functional and divisional chains of command in a grid so that there a two command structures, vertical and horizontal, a matrix structure is used Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 40

8. 5 Basic Types Of Organizational Structures Example of Ford motor company Kinicki/Williams, Management:

8. 5 Basic Types Of Organizational Structures Example of Ford motor company Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 41

8. 5 Basic Types Of Organizational Structures 7. In a team-based structure, teams, both

8. 5 Basic Types Of Organizational Structures 7. In a team-based structure, teams, both temporary and permanent, are used to improve horizontal relations and solve problems throughout the organization Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 43

8. 5 Basic Types Of Organizational Structures Figure 8. 10: Team-Based Structure Kinicki/Williams, Management:

8. 5 Basic Types Of Organizational Structures Figure 8. 10: Team-Based Structure Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 45

8. 5 Basic Types Of Organizational Structures 8. The network structure or virtual organization

8. 5 Basic Types Of Organizational Structures 8. The network structure or virtual organization has a central core that is linked to outside independent firms by computer connections which are used to operate as if all were a single organization Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 46

Network Structure Design Studio Components Assembly Sweden Mexico, Asia Core of personal computer company

Network Structure Design Studio Components Assembly Sweden Mexico, Asia Core of personal computer company USA Engineering Company Distribution Company Japan Canada Accounting & Finance Mc. Graw-Hill/Irwin USA Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 47

8. 6 Contingency Design: Factors In Creating The Best Structure WHAT IS THE BEST

8. 6 Contingency Design: Factors In Creating The Best Structure WHAT IS THE BEST STRUCTURE? v. Contingency Design is the process of fitting the organization to its environment Firms must consider: 1. The environment (mechanistic versus organic) v. Mechanistic organizations are characterized by centralized authority, clearly specified tasks and rules, and close supervision of employees v. When authority is decentralized, there are few rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks, an organic organization exists Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 49

Mechanistic Vs. Organic v Mechanistic organizations: authority is centralized, tasks and rules are clearly

Mechanistic Vs. Organic v Mechanistic organizations: authority is centralized, tasks and rules are clearly specified, and employees are closely supervised. v When rigidity and uniformity work best v Mc. Donald's Mc. Graw-Hill/Irwin v Organic organizations: authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks. v When looseness and flexibility work best v Information and Technology v “adhocracies” Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 50

Chapter 8: Organizational Culture, Structure, & Design CLASSROOM PERFORMANCE SYSTEM Which of the following

Chapter 8: Organizational Culture, Structure, & Design CLASSROOM PERFORMANCE SYSTEM Which of the following is not a characteristic of a mechanistic organization? A) clearly specified tasks B) decentralized authority C) close supervision D) clearly specified rules Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 51

Chapter 8: Organizational Culture, Structure, & Design CLASSROOM PERFORMANCE SYSTEM Which of the following

Chapter 8: Organizational Culture, Structure, & Design CLASSROOM PERFORMANCE SYSTEM Which of the following is not a characteristic of a mechanistic organization? A) clearly specified tasks B) decentralized authority C) close supervision D) clearly specified rules Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 52

8. 6 Contingency Design: Factors In Creating The Best Structure 2. The Environment (differentiation

8. 6 Contingency Design: Factors In Creating The Best Structure 2. The Environment (differentiation versus integration) v. Differentiation is the tendency of the parts of an organization to disperse and fragment v. Integration is the tendency to come together to achieve a common purpose 3. Size v. Organizational size is usually measured by the number of full-time employees Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 53

8. 6 Contingency Design: Factors In Creating The Best Structure 4. Technology v. Technology

8. 6 Contingency Design: Factors In Creating The Best Structure 4. Technology v. Technology (the tools and ideas for transforming materials, data, or labor into goods and services) influences organizational design 5. Organizational life cycle v. The organizational life cycle involves birth, youth, midlife, and maturity Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 54

Life Cycle: Four Stages in the Life of an Organization v The organizational life

Life Cycle: Four Stages in the Life of an Organization v The organizational life cycle has a natural sequence of stages: 1. 2. 3. 4. Mc. Graw-Hill/Irwin Birth Youth Midlife Maturity Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 55

Life Cycle: Four Stages in the Life of an Organization v As organization moves

Life Cycle: Four Stages in the Life of an Organization v As organization moves through the stages, it becomes not only larger, but more mechanistic, specialized, decentralizes, and bureaucratic v There are different managerial challenges and different organizational design issues in each stage Mc. Graw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 56

Life Cycle: Four Stages in the Life of an Organization v Stage 1: The

Life Cycle: Four Stages in the Life of an Organization v Stage 1: The Birth Stage v – nonbureaucratic v Stage which organization is created v No written rules and little supporting staff v Founder may be a lone entrepreneur or two friends who have gotten together v Text: Apple Computer’s early development Mc. Graw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 57

Life Cycle: Four Stages in the Life of an Organization v Stage 2: The

Life Cycle: Four Stages in the Life of an Organization v Stage 2: The Youth Stage – prebureaucratic v Stage of growth and expansion v People are added to the payroll, and some division of labor and setting of rules is instituted v Text: Apple Computer from 1978 to 1981 with Apple II product line Mc. Graw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 58

Life Cycle: Four Stages in the Life of an Organization v Stage 3: The

Life Cycle: Four Stages in the Life of an Organization v Stage 3: The Midlife Stage – bureaucratic v Period of growth evolving into stability v Organization has formalized bureaucratic structure, staff of specialists, decentralization of functional divisions, and many rules v Text: Apple Computer in the 1980 s under John Scully Mc. Graw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 59

Life Cycle: Four Stages in the Life of an Organization v Stage 4: The

Life Cycle: Four Stages in the Life of an Organization v Stage 4: The Maturity Stage – very bureaucratic v Organization large and mechanistic v Danger at this point is lack of flexibility and innovation v Text: Apple Computer floundered in the late 1980 s until Steve Jobs returned Mc. Graw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 60

Life Cycle: Four Stages in the Life of an Organization v Holding on to

Life Cycle: Four Stages in the Life of an Organization v Holding on to the prebureaucratic way of life for too long hinders the organization’s ability to deliver goods and services efficiently Mc. Graw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 61

Building Learning Organizations A Learning Organization is an: Organization that actively creates, acquires, and

Building Learning Organizations A Learning Organization is an: Organization that actively creates, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge Mc. Graw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 64

Building Learning Organizations v Organizations must continually learn new things or face obsolescence v

Building Learning Organizations v Organizations must continually learn new things or face obsolescence v A key challenge for managers is to establish a culture that will enhance their employees ability to learn v But, there may be resistance, and some firms unconsciously resist learning because: Mc. Graw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 65

8. 7 Toward Building A Learning Organization WHY DO ORGANIZATIONS RESIST LEARNING? v-people believe

8. 7 Toward Building A Learning Organization WHY DO ORGANIZATIONS RESIST LEARNING? v-people believe that competition is always better than collaboration v-fragmentation leads to specialized fiefdoms that resist learning v-unless encouraged, people won’t take risks, the basis for learning Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 66

The New Paradigm: “We’re All Stakeholders” v Paradigms are generally accepted ways of viewing

The New Paradigm: “We’re All Stakeholders” v Paradigms are generally accepted ways of viewing the world v The paradigm underlying American business today is that competition is superior to collaboration v Many established paradigms have outlived their usefulness Mc. Graw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 67

8. 7 Toward Building A Learning Organization WHAT IS THE NEW PARADIGM? v. A

8. 7 Toward Building A Learning Organization WHAT IS THE NEW PARADIGM? v. A new paradigm suggests that everyone in an organization is business together- and everyone has a responsibility for working toward common goals Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin 68

The New Paradigm: “We’re All Stakeholders” v One challenge is to create a climate

The New Paradigm: “We’re All Stakeholders” v One challenge is to create a climate in which managers and employees stop thinking in terms of “us” versus “them” and start thinking of themselves as mutual stakeholders Mc. Graw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3 e © 2008, Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. All rights reserved. 69