Chapter 9
Organizations: Structure,
Effectiveness, and Cultures
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9-1
Chapter Outline
What Is an Organization?
 Common
Characteristics of Organizations
 Classifying Organizations
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9-2
Chapter Outline
(continued)
Organization Charts
 Vertical
and Horizontal Dimensions
 A Case Study: The Growth of an
Organization
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9-3
Chapter Outline
(continued)
Contrasting Theories of Organizations
 The
Traditional View
 Challenges to the Traditional View of
Organizations
 Organizations as Open Systems: A Modern
View
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9-4
Chapter Outline
(continued)
Organizational Effectiveness
 No
Silver Bullet
 A Time Dimension
 Organizational Decline
 Characteristics of Organizational Decline
 Downsizing: An Ethical Perspective
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9-5
Chapter Outline
(continued)
Organizational Cultures
 Characteristics
of Organizational Cultures
 Forms and Consequences of Organizational
Cultures
 The Organizational Socialization Process
 Strengthening Organizational Cultures
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9-6
ORGANIZATIONS
Organization: a cooperative social
system involving the coordinated efforts
of two or more people pursuing a
shared purpose.
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9-7
ORGANIZATIONS
(continued)
Common Characteristics of
Organizations




Coordination of effort
Common goal or purpose
Division of labor
Hierarchy of authority
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9-8
Figure 9.1 The Evolution of an
Organization Chart
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9-9
TYPES OF ORGANIZATIONS
Table 9.1
 Business
organizations (Main problem:
Make a profit)
 Nonprofit service organizations (Main
problem: Selectively screen large
numbers of potential clients)
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9-10
TYPES OF ORGANIZATIONS
(continued)
 Mutual-benefit
organizations (Main
problem: Satisfy members’ needs)
 Commonweal organizations (Main
problem: provide standardized services
to large groups of people with diverse
needs)
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9-11
TYPES OF ORGANIZATIONS
(continued)
For Discussion: Which type of
organization would be the most difficult
to manage today? Why?
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9-12
TRADITIONAL PRINCIPLES OF
ORGANIZATION
1. A well-defined hierarchy of authority
2. Unity of command
3. Authority equal to responsibility
4. Downward delegation of authority but not of
responsibility
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9-13
A MODERN VIEW OF ORGANIZATIONS
Open-System Characteristics

Interaction with the environment

Synergy
Dynamic equilibrium: the process of
maintaining the internal balance
necessary for survival by importing
needed resources from the environment
Equifinality: reaching the same result by
different means


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9-14
Figure 9.2 Open-System Model of a
Business
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9-15
A MODERN VIEW OF ORGANIZATIONS
(continued)
Extending the Open-system Model
organization: “an organization
skilled at creating, acquiring, and
transferring knowledge, and at modifying
its behavior to reflect new knowledge and
insights.”
 Learning
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9-16
Figure 9.3 Garvin’s Model of the
Learning Organization
Source: Adapted from discussion in David A. Garvin, “Building a Learning Organization,” Harvard Business
Review, 71 (July-August 1993): 78-91.
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9-17
A MODERN VIEW OF ORGANIZATIONS
(continued)
For Discussion: What evidence of
learning organizations have you seen
lately?
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9-18
ORGANIZATIONAL EFFECTIVENESS
Organizational effectiveness: meeting
organizational objectives and prevailing societal
expectations in the near future, adapting and
developing in the intermediate future, and
surviving in the distant future.
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9-19
Figure 9.4 The Time Dimension of
Organizational Effectiveness
Source: Adapted from James L. Gibson, John M. Ivancevich, and James H. Donnelly Jr., Organizations:
Behavior, Structure, Processes, 5th ed. (Homewood, Ill.: Richard D. Irwin, Inc.), p. 37. © 1991.
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9-20
ORGANIZATIONAL DECLINE
Organizational decline: a weakened
condition resulting from resource or demand
restrictions and / or mismanagement.


“Management complacency is largely
responsible for turning success into decline.”
“An organization that has entered a period of
stability has taken the first step toward
decline.”
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9-21
Figure 9.5 Complacency Can Lead to
Organizational Decline
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9-22
ORGANIZATIONAL DECLINE
(continued)
Characteristics of Organizational Decline
Table 9.5
1.
2.
3.
4.
5.
Centralization
No long-term planning
Innovation curtailed
Scapegoating
Resistance to change
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6.
7.
8.
9.
Turnover
Low morale
Nonprioritized cuts
Conflict
9-23
ORGANIZATIONAL DECLINE
(continued)
For Discussion:
1. Why is managerial complacency so bad for
the organization?
2. What well-known organizations appear to be
in decline? How can you tell? What do they
need to do to reverse the slide?
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9-24
ORGANIZATIONAL CULTURES
Organizational culture: the collection of
shared (stated or implied) beliefs,
values, rituals, stories, myths, and
specialized language that foster a
feeling of community among
organization members.
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9-25
ORGANIZATIONAL CULTURES
(continued)
Characteristics of Organizational
Cultures






Collective
Emotionally charged
Historically based
Inherently symbolic
Dynamic
Inherently fuzzy
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9-26
Figure 9.6 Forms and Consequences
of Organizational Cultures
Source: Forms adapted from Harrison M. Trice and Janice M. Beyer, The Cultures of Work Organizations
(Englewood Cliffs, N.J.: Prentice-Hall, 1993), pp. 77-128. Consequences adapted from Linda Smircich,
“Concepts of Culture and Organizational Analysis,” Administrative Quarterly, 28 (September 1983): 339-358.
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9-27
ORGANIZATIONAL CULTURES
(continued)
For Discussion:
1. What characteristics of organizational culture can you
detect in your present (or past) work organization?
2. Would you call the organization's culture healthy or
unhealthy? Why?
3. What stories have you heard that reveal useful
information about a particular organization?
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9-28
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