A company's performance depends on the extent in which three factors: organizational culture, organizational structure, and HR practices work together
Organizational culture/corporate cultrue
the set of shared, taken for granted implicit assumptions hat a group holds and that determines how it perceives, thinks abut, and reacts to its various environments
Organizational structure
a formal system of task and reporting relationships that coordinates and motivates an organization's members so that they can work together to achieve the organization's results
Human resource practices
Consists of all of the activities an organization uses to manage its human capital
Person organization(P-O) fit
Outlandish questions that can be used to find out how well you will fit in with the organization
Organizational culture is present at three levels
Observable artifacts
Espoused values
Basic assumptions
Observable artifacts
physical manifestations such as manner of dress, awards, myths and stories, about the company, as well as visible behavior
Espoused values
the explicitly stated values and norms preferred by an organization
Basic assumptions
represent the unobservable yet core values of an organization's culture that are often taken for granted
Symbol
an object or action that represents an idea or quality
Story
Narrative based on true events
Organizational socialization
defined as the process by which people learn the values, norms, and required behaviors that permit them to participate as members of an organization
Organizational Socialization Phases
Anticipatory socialization phase
Encounter phase
Change and acquisition phase
Anticipatory socialization phase
learn about the organizations needs and values and how your own values fit in
Encounter phase
learn what the organization is really like and to manage your expectations
Change and acquisition phase
begin to fine-tune necessary skills and tasks
Competing values framework(CVF)
a practical way for managers to understand, measure, and change organizational culture
The competing values model has four quadrants: Clan Culture, Adhocracy Culture, Market Culture, Hierarchy Culture.
The horizontal dimension
Does the organization focus its attention on internal dynamics and employees or its external environment and customers
The vertical dimension
Does the organization prefer decentralized decision making(flexibility) or centralized decision making(Stability)
Clan culture
an internal focus and values flexibility
Adhocracy culture
an external focus and values flexibility
Market culture
a strong external focus and values stability and control
Hierarchy culture
an internal focus and values stability and control over flexibility
All organizations can be described according to four features: common purpose, coordinated effort, division of labor, and hierarchy of authority
Common purpose
unifies employees or members and gives everyone an understanding of the organization's reason for being
Coordinated effort
the coordination of individual efforts into a group or organization wide effort
Division of labor
the arrangement of having discrete parts of a task done by different people
Hierarchy of authority
a control mechanism for making sure the right people do the right things at the right time
Flat organization
an organizational structure with few or no levels of middle management between top managers and those reporting to them
Unity of command
an employee should report to no more than one manager in order to avoid conflicting priorities and demands
Span of control
refers to the number of people reporting directly to a given manager
Authority
refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources
Accountability
Managers must report and justify work results to the managers above them
Simple structure
authority centralized in a single person, a flat hierarchy, few rules, and low work specialization
Functional structure
people with similar occupational specialties are put together in formal groups
Divisional structure
people with diverse occupational specialties are put together in formal groups by similar products
Matrix structure
an organization combines functional and division chains of command in a grid so that there are two command structures- horizontal and vertical
Horizontal structure
are used to improve collaboration and work on shared tasks breaking down internal boundaries
Boundaryless organization
a fluid highly adaptive organization whose members come together to collaborate on common tasks