This document provides background information on organizational structure and culture. It discusses key elements of organizational structure including work specialization, departmentalization, chain of command, span of control, centralization/decentralization, and formalization. Mechanistic and organic structures are described as well as divisional, functional, team-based, and flexible structures. The reading also covers organizational culture, how it is formed and taught to new members. It emphasizes that organizational culture and structure should align for effective functioning and to avoid tension between how people work and imposed structures.

1. Module 4 - Background
Organizational Structure and Culture
Note: All Background and Module Home materials are required
unless designated as optional or general reference.
Organizational Structure and Design
The way an organization is designed and structured can have
significant effects on its members and its ability to execute its
strategy. In this module we will try to understand those effects
and analyze the behavioral implications of different
organizational designs.
An organizational structure defines how job tasks are formally
divided, grouped, and coordinated. According to Robbins and
Judge (2014) managers need to address six key elements when
they design their organization’s structure:
Work specialization
—the extent to which activities are subdivided into separate
jobs.
Departmentalization
—the basis on which jobs will be grouped together.
Chain of command
—the people to whom individuals and groups report.
Span of control
—the number of individuals that a manager can direct
efficiently and effectively.
Centralization and decentralization
—the locus of decision-making authority.
Formalization
—the extent to which there will be rules and regulations to
direct employees and managers.
A simple, but classical, classification of organizational designs
focuses on
mechanistic
versus
organic
design. The mechanistic design is characterized by extensive

2. departmentalization, high formalization, a limited information
network, and centralization. The organic design is characterized
by low formalization, flat hierarchy and the use of cross-
hierarchical and cross-functional teams, free flow of
information, and decentralization. Each design has advantages
and disadvantages. For example, a mechanistic design is good
for keeping the costs of standardized products or services down,
but it inhibits innovation and creativity. Read this short
summary comparing mechanistic and organic organizational
structures:
Mechanistic vs. Organic Organizational Structure: Contingency
Theory (2014) BusinessMate.Org
http://www.businessmate.org/Article.php?ArtikelId=44
A more sophisticated look at organizational structure considers
the different ways that work is organized and coordinated to
best fit the organization’s mission and objectives. Common
forms are divisional structures, functional structures, team-
based or process structures, and flexible structures. The key
learning here is that the structure selected should match the
organization’s strategy—or it will be very difficult for the
organization to be successful.
The following reading explains these different structures,
reviews their advantages and disadvantages, and suggests the
strategic considerations for when each should be used. Though
this article is on the older side, it is still right on target.
Anand, N. & Daft, R. L. (2007). What is the right organizational
design? Organizational dynamics, 36, 329-344. retrieved from
http://faculty.cbpp.uaa.alaska.edu/afgjp/PADM610/What%20is
%20the%20Right%20Organization%20Design.pdf
There are newer names for the types of structures discussed by
Anand and Daft in the section of their article titled Era 3. This
updates the terminology in the article above, though all of the
forms Anand and Daft discuss are still common today. The
virtual organization and the boundaryless organization are
among these new structures. The virtual organization is a
relatively small, core organization that outsources major

3. business functions. The boundaryless organization has teams
instead of departments, and aspires to have as flat a hierarchy as
possible.
Organizational Culture
Have you ever observed how some organizations just seem to be
shining stars in their fields, even if the product or service they
produce is not that much different from their competitors? Have
you noticed that it seems that they are the ones who are the
most successful? Did you ever wonder why? Read the following
material on organizational culture for some insights into what
culture is, what it does, how it is formed, and how it is taught to
newcomers in the organization. This reading is available in the
Trident University Library.
Denison, D., Hooijberg, R., & Lane, N. (2012). Building a high-
performance business culture. Leading Culture Change in
Global Organizations: Aligning Culture and Strategy. (pp. 1-
23), Hoboken, NJ, USA: John Wiley & Sons. Retrieved from
http://media.wiley.com/product_data/excerpt/4X/04709088/0470
90884X-373.pdf
The following material on organizational culture type may be
particularly helpful as you prepare your Module 4 SLP
assignment:
McNamara, C. (2000) Organizational Culture. Adapted from the
Fieldguide to Organizational Leadership and Supervision. Free
Management Library.
http://managementhelp.org/organizations/culture.htm
Combining Culture and Structure
Designing an organization’s structure involves more than just
shifting boxes and lines on an organizational chart. Mootee
(2012) offers several critical tests when considering the
adequacy of designing an organization’s structure:
a.
The Future Test: Does the design reflect the needs for how a
company plans to compete in the future?
b.

4. The People/Culture Test: Does the design adequately reflect the
motivations, strengths and weaknesses of employees?
c.
The Competitive Advantage Test: Does the design allocate
sufficient management emphasis to the strategic priorities?
d.
The Power Test: Does the design provide the desired allocated
power to groups/individuals that is linked to the strategic value
of the unit or functions?
e.
The Agility Test: Is the design adaptable and swift to respond to
future changes? (p. 1)
It makes intuitive sense that organizational culture and
organizational structure should affect each other. Indeed, the
way work is coordinated, the way hierarchies are designed, and
the way communications are channeled should align with the
norms and values of the people who work there. If they do not,
there will be tension and conflict between the way people feel
comfortable working and the structures that force work to be
done in a different way. The following article is an excellent
and compelling analysis of why management should consciously
insure that culture and structure support each other so that the
organization can function as smoothly and effectively as
possible.
Janicijevic, N. (2013). The mutual Impact of organizational
culture and structure. Economic Annals 58(198). Retrieved from
http://www.doiserbia.nb.rs/img/doi/0013-3264/2013/0013-
32641398035J.pdf
Module 4 - Case
Organizational Structure and Culture
Assignment Overview

5. This assignment focuses on the importance of organizational
structure and its possible impact on employees. After finishing
with the Background page and readings, go to the following
interview with Rosabeth Moss Kanter, who is a renowned
Professor of Business Administration at Harvard Business
School, and an influential business advisor. Among other
things, in this interview she talks about the evolution of
changes in organizational structure in the past decades, and the
link to employees’ well-being and functioning.
Required Reading
Puffer, S. (2004) Changing organizational structures: An
interview with Rosabeth Moss Kanter. Academy of Management
Executive, 18(2).
The following article looks at changing organizational
structures as open systems and the effect on managers:
Buhler, P. M. (2011). Changing organizational structures and
their impact on managers. Supervision, 72(2), 24-26.
Both of these articles can be found in the Trident University
Library.
Case Assignment
Write a 4- page critique answering the questions below.
·
An organization’s structure can have significant effects on its
members. What might those effects be? Analyze the behavioral
implications of different organizational designs and use at least
two examples.
·
Is it possible to generalize and say that a certain structure is
better than others? That is, is there a structure that is superior in
terms of its effects on its members? Take a stand and defend
your comments with references to the concepts in the readings
in this module and any previous modules that you find relevant.
Demonstrate that you have read, understood, and can apply the
background materials by citing them in support of your

6. analysis.
Module 4 - SLP
Organizational Structure and Culture
For the SLP 4 assignment, you will explore some aspects of an
organization's culture, at least as you see it. (Select an
organization you have worked with, if possible.) Since the
concept of organizational culture is open to many
interpretations and classifications, this assessment offers a
slightly different approach from your background reading on
organizational culture.
Required Reading
Debra Woog McGinty and Nicole C. Moss have compiled a
short
corporate culture survey
aimed at identifying characteristics of workplaces. The
categories of workplace description that it generates are fairly
self-explanatory.
Assignment
When you have completed the assessment think about it for a
minute, and how it compares to the Academy, Baseball Team,
Fortress, and Club cultures described by McNamara in the
Background reading. Then prepare a 2- page paper addressing:
·
Your scores on the McGinty/Moss assessment and whether or
not they fit your general expectations or constitute a surprise in
some ways. Interpret the results of the assessment in terms of
your own experience, either to confirm or to question the
results. Compare your findings with the McNamara categories.
·
The degree to which the McGinty/Moss assessment and the
McNamara information tell you similar or dissimilar things
about your organization.
·

7. Do the assessment and the McNamara categories help improve
your managerial understanding and/or skills? What can you
infer from the assessment results about how your organization’s
culture fits or doesn't fit with you? What (if anything) can you
do to make your interaction with the culture more effective?
·
Provide your opinion on whether or not the questions asked help
you understand the organization and how you cope with it. Do
they accurately assess what is needed to analyze a company’s
culture?
·
Include the actual results to the survey in an Appendix section
in your paper.