Define organizational structure.

Question

What will be an ideal response?

Answer 1

Organizational structure is 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 goals. Organizational structure is concerned with who reports to whom and who specializes in what work.

AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-01 Describe how managers align vision and strategies with the organization's culture and structure.
Topic: Organizational Structure

83. This question contains two parts; be sure to answer both. After John's father died, John inherited his successful tire business, Thrifty Tire. John wants to make sure the company's culture, which his father had built for over 40 years, does not get lost but instead remains embedded in the organization. First, summarize 4 of the 12 ways that a particular culture can become embedded in an organization. Then explain how John might use each technique to keep Thrifty Tire's corporate culture strong, with an emphasis on employee development, a family-like atmosphere, and a dedication to offering the best service and the lowest prices.

A particular culture can become embedded in an organization in many ways, 12 of which are described in the textbook. Changing organizational culture is essentially a teaching process—that is, a process in which members instruct each other about the organization's preferred values, beliefs, expectations, and behaviors. The process is accomplished by using one or more of the following 12 mechanisms: formal statements; slogans and sayings; rites and rituals; stories, legends, and myths; leader reactions to crises; role modeling, training, and coaching; physical design; rewards, titles, promotions, and bonuses; organizational goals and performance criteria; measurable and controllable activities; organizational structure; and organizational systems and procedures.

Here is how John might use each of these mechanisms at Thrifty Tire:

1. Formal statements: John might hang a plaque with Thrifty Tire's mission statement in each store.

2. Slogans and sayings: John might come up with a tagline for Thrifty Tire, such as "Thrifty in a Jiffy" or another saying that customers (and employees) will find appealing.

3. Rites and rituals: John might continue the tradition of the company picnic that his father started 40 years ago.

4. Stories, legends, and myths: John might tell stories about his father's founding of the business, and how the business weathered several recessions while still doing the right thing for its employees.

5. Leader reactions to crises: John can set a strong example for the company by responding in a level-headed way to any crises that may come up (for example, problems with defective tires that cause blow-outs).

6. Role modeling, training, and coaching: John may ask his top salespeople, or his top technicians, to take roles in training junior staff in the "Thrifty Tire Way" of doing business.

7. Physical design: John can make sure the tire shop has a comfortable, clean place for customers to sit and wait, as well as a staff break room that is well stocked with bottles of water and snacks.

8. Rewards, titles, promotions, and bonuses: John can offer bonuses to salespeople who exceed their sales goals and promote those who work hard.

9. Organizational goals and performance criteria: John can be very clear regarding the way success is defined at Thrifty Tire. By telling workers the criteria on which their performance will be based, John has the opportunity to send a very strong signal about where employees should be spending their time (and where they should not be spending their time).

10. Measurable and controllable activities: John can use analytics to make sure that the company is meeting its goals, monitoring its expenses, and meeting its profit expectations.

11. Organizational structure: John can use a flat management structure so that there are very few (if any) management layers between him and most of his workers, which will allow him to perpetuate the family atmosphere that his father created.

12. Organizational systems and procedures: John can use the latest technology and other developments to help his employees communicate and save time.