ORGANIZATIONAL STRUCTURE AND INDIVIDUAL BEHAVIOUR

Every Organization has a Structure

But

structures can differ Due to choice Due to national laws The words used to describe them also can differ Organization chart, design, structure The way they are drawn can differ pyramid, sideways pyramid, circle
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The Structural Configuration

is the skeleton of the organization reflects corporate governance is intended to meet organizational objectives arises out of strategic directions and causes managers to ask: what structure will best aid us in meeting our strategy and objectives?

Restructuring Occurs for Many Reasons

Turnover in top management Competitive positioning Mergers and/or acquisitions Cost-savings Even the illusion of managerial control

The Illusion of Managerial Control

We trained hardbut it seemed that every time we were beginning to form up into teams, we would be reorganized. I was to learn later in life that we tend to meet any new situation by reorganizing; and a wonderful method it can be for creating the illusion of progress while producing confusion, inefficiency, and demoralization. Petronius Arbiter, 210 B.C.

Structural Choice is Important Because

it focuses attention on particular areas shapes how resources will be used directs communication flows defines control and other processes illustrates peoples roles relative to others roles

Your Job
Understand

organizational objectives (articulated in the varied levels of strategy) Analyze the structure Assess the match between organizational strategies and structures

Top Managers Answer to a Power Greater than Themselves

God or conscience in a wholly owned private firm The family in a family owned firm The Board in a publicly owned firm: U.S. boards often are chaired by the CEO Boards in U.K. usually are chaired by a non executive European companies often have a two-tier board In Germany, duties are split between supervisory and management boards Spain and France often use an executive committee 8

Beneath the Board are Several Structural Types

Intra and interorganizational networks Special cases Functional, divisional, hybrids

Networks
Intraorganizational networks internal networks shamrock spiderwebs Interorganizational networks strategic alliances joint ventures partial acquisitions/mergers cross-sector partnerships
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Except for born globals, Most Companies Grow into Expansion

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Most Common Structural Types Among Global Firms are:

Functional structure Divisional structure Hybrid structures Combined functional/divisional structure Matrix structure

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Global Functional Structure

CEO

VP Marketing

VP Finance

VP Operations

VP R&D

VP Legal issues

Product 1

Product 2

Product 3

Country A

Country B

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Divisional Structure Can Take Different Forms

Product Geographic Customer group served

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Global Geographic Division Structure

CEO Admin/Finance

VP for the Americas

VP Europe

VP E. Asia

VP Australasia

Australia/NZ

Indonesia

Islands

Marketing

Operations

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Global Product Structure

DIVISIONAL STRUCTURE (BY PRODUCT LINES)

COSMETICS CORPORATION

FRAGRANCES

SKIN CARE PRODUCTS

HAIR CARE PRODUCTS

OTHER PRODUCTS

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Hybrids Often Emerge to Deal with Problems of Functional and Divisional Forms
Matrix forms are hybrids Some hybrids combine a mostly functional structure with one or more important products or markets, e.g., North America Some hybrids combine a mostly divisional structure with one or more important functions, e.g., marketing

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We Use a Matrix to Organize Roles and Relationships in Business Education

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Global Matrix Structure

Chairman of the Board

Executive Committee

Management

Strategic Business units

N. America

Latin America

Europe

Asia

autos

light trucks

sports utilities

parts

financing

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Combined Functional and Divisional Structure

Danone Group, 2003
Chair and CEO Vice Chair and COO

General Secretary Exec VP, Biscuits and Cereal Snacks

Exec VP, Finance

Exec VP, Fresh Dairy

Exec VP, Water

Exec VP, Asia-Pacific

Exec VP, Intl Strategy

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Intraorganizational Structures

spiderwebs internal networks shamrocks horizontal keiretsu chaebol

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Interorganizational Structures
Strategic alliances Joint ventures Partial acquisitions

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Special Cases

Family structuresusually hierarchical with a patriarch/matriarch or a set of family members who divide tasks according to skill or obligation Structures that arise out of national tradition German firms always have union representation and two levels of boards Holding companies Virtual organizations

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organizational behavior

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OBJECTIVES

After studying this chapter, you should be able to:

1.

Define the key biographical characteristics. Identify two types of ability. Shape the behavior of others. Distinguish between the four schedules of reinforcement.

LEARNING

2. 3. 4.

5.

Clarify the role of punishment in learning. Practice self-management

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6.

Biographical Characteristics
Personal characteristicssuch as age, gender, and marital statusthat are objective and easily obtained from personnel records.

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Ability, Intellect, and Intelligence

Ability An individuals capacity to perform the various tasks in a job.

Intellectual Ability The capacity to do mental activities.

Multiple Intelligences Intelligence contains four subparts: cognitive, social, emotional, and cultural.

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Dimensions of Intellectual Ability

Number aptitude Verbal comprehension Perceptual speed Inductive reasoning Deductive reasoning Spatial visualization Memory

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Physical Abilities
The capacity to do tasks demanding stamina, dexterity, strength, and similar characteristics.

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Nine Physical Abilities

Strength Factors
1. Dynamic strength 2. Trunk strength 3. Static strength 4. Explosive strength

Flexibility Factors
5. Extent flexibility 6. Dynamic flexibility

Other Factors
7. Body coordination 8. Balance 9. Stamina

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The Ability-Job Fit

Ability-Job Fit

Employees Abilities

Jobs Ability Requirements

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Learning
Any relatively permanent change in behavior that occurs as a result of experience.

Learning
Involves change Is relatively permanent

Is acquired through experience

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Theories of Learning
Classical Conditioning
A type of conditioning in which an individual responds to some stimulus that would not ordinarily produce such a response. Key Concepts Unconditioned stimulus Unconditioned response Conditioned stimulus Conditioned response
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Theories of Learning (contd)

Operant Conditioning
A type of conditioning in which desired voluntary behavior leads to a reward or prevents a punishment.

Key Concepts Reflexive (unlearned) behavior Conditioned (learned) behavior Reinforcement

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Theories of Learning (contd)

Social-Learning Theory
People can learn through observation and direct experience.

Key Concepts
Attentional processes Retention processes Motor reproduction processes Reinforcement processes

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Theories of Learning (contd)

Shaping Behavior
Systematically reinforcing each successive step that moves an individual closer to the desired response. Key Concepts
Reinforcement is required to change behavior. Some rewards are more effective than others. The timing of reinforcement affects learning speed and permanence.

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Types of Reinforcement
Positive reinforcement Providing a reward for a desired behavior. Negative reinforcement Removing an unpleasant consequence when the desired behavior occurs. Punishment Applying an undesirable condition to eliminate an undesirable behavior. Extinction Withholding reinforcement of a behavior to cause

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Schedules of Reinforcement
Continuous Reinforcement A desired behavior is reinforced each time it is demonstrated.

Intermittent Reinforcement A desired behavior is reinforced often enough to make the behavior worth repeating but not every time it is demonstrated.

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Schedules of Reinforcement (contd)

Fixed-Interval Schedule Rewards are spaced at uniform time intervals.

Variable-Interval Schedule
Rewards are initiated after a fixed or constant number of responses.

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Behavior Modification
The application of reinforcement concepts to individuals in the work setting.

Five Step Problem-Solving Model

1. Identify critical behaviors

2. Develop baseline data 3. Identify behavioral consequences 4. Develop and apply intervention 5. Evaluate performance improvement
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Well Pay versus Sick Pay Reduces absenteeism by rewarding attendance, not absence. Employee Discipline The use of punishment can be counter-productive. Developing Training Programs OB MOD methods improve training effectiveness. Self-management Reduces the need for external management

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OB MOD Organizational Applications

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