Dr.

Hassan Wagih

ESLSCA39E

Organizational structure forms the basis of the organizations culture:

Formalizes the tasks, jobs and positions of its personnel, as well as the limits and responsibilities of the work units Indicates the kind of hierarchy within the organization, the levels of authority and power as well as the formal lines of communication between the employees

Geographic structure

Functional structure

Product structure

Mixed structure

Matrix structure

Network structure
A network of company units which has a horizontal system of communication Responsibility is dispersed to local subsidiaries
Facilitates cross-cultural transfer of knowledge and organizational learning Facilitates organizational learning. E.g. Coffee Beans

Transnational structure a multi-faceted organization which can respond to international, multinational and global environment dispersed, interdependent, and specialized its national units make differentiated contributions to integrated worldwide operations its knowledge is developed jointly and shared worldwide. Examples of transnational companies? GM & Ford

STRUCTURE

CULTURAL DIVERSITY

Domestic: services or products offered only in the domestic market Multidomestic: Autonomous sub-units situation in several countries Multinational: Diversity is inherent through geographical spread Transnational: generates its own evolution: heterogeneity indispensable.

no impact on the organization Strongly affects relations external to the organization (clients & employees) Can cause problems, but can also benefit organization allows mutually beneficial relations to be created

Deal & Kennedy (2000) are among the first to examine in details the phenomenon of corporate culture

The Business environment in which the company operates as a considerable influence on the culture of the company

They present a classification of types of corporate culture using two factors: How much risk is involved in the firms activities?

How much time is needed before a company & its employees know how successful their decisions or strategies have been (feedback)?

Artifacts

Everything which is visible within the Organization. Strategies , Objectives & philosophies of organization. Thought & perception driving the overt behavior.

Espoused Value

Shared tacit assumption

Type
The Tough Guy , Macho Culture

Description
Lots of risk-taking , Quick feedback Emphasis on youth and speed. Quick decisions needed , even if not always right.

Example
Police Hospitals Cosmetics

Work Hard / Play Hard Culture

Bet Your Company Culture

Fun and action with Quick feedback . Low-risk activities (strict control system preventing major risks). Consumers very important.
High risk , Slow feedback . Years before pay-off or failure. Much discussion to ensure the right decision is taken. Low-risk activities with little feedback . Focus on how things are done rather than what needs to be achieved.

Company Sales Dept.

Exploration Companies (Oil)

Process Culture

Banks Insurance Pharmaceutical

Incubator
- Self-realization.

Low Centralization

Guided Missile

- Task-oriented , focus on

- commitment to oneself & professional recognition.

Low Formalization

power of knowledge / expertise. - Commitment to tasks , pay for performance.

High Formalization

High Centralization

Family
- Power-oriented with stress on personal relationships & entrepreneurial character

Eiffel Tower
- Role-oriented with power attached to the position or role.

Kennedy) . Form the very basis of corporate culture. Give direction and guidelines for day-to-day behaviour . Lack of concern for these values can undermine leadership and commitment . Values are an indispensable guide for making day-to-day choices.

The basic concepts & beliefs of an organization (Deal &

Organizational structure is a mechanism through which effort and work is coordinated with supervision to produce the results that are hoped for from organizational culture. The structure seems to be the channels or lines of authority, the system set into place through which individuals can come together to fulfill the expectations of organizational culture.

To make sure that each individual understands the full extent of responsibilities and work expected out of them.

A strong culture is more likely to have a strong and efficient organizational structure. A weak culture is more likely to have a weak and less efficient organizational structure.

Lekan; a large wholesaler specializing in interior furnishings, needed to boost its sales, Its domestic market was stagnant and, its export sales, although increasing gradually, were not delivering the anticipated volume: The company desperately, needed to make a large deal, preferably in the expanding Asian market. After Intensive efforts by its marketing department, Lekan was eventually contacted by a Japanese company, Ligato, which was interested in purchasing floor coverings. The two companies met on several occasions in Tokyo and a large deal was finally made. A dinner was arranged to celebrate the successful conclusion of business. Mr Roberts, the senior sales manager who had headed the Lekan team of negotiators had brought along gifts for Mr Takahashi, his Japanese counterpart. With heartfelt expressions of gratitude, Mr Roberts handed ever a bottle of 25-year-old malt whisky and then Chanel perfume which, he said, was intended for Mrs Takahashi. Mr Takahashi did his best to conceal his anger and disappointment. He left the celebrations, however, without signing the contract.

Why did Mr Takahashi react the way he did?

Process whereby an individual influences a group of individuals to achieve a common goal

- Decide what is important - Set Examples for reactions - Assign priorities for resource allocation - Reinforce values that must be followed - Set Criteria to allocate rewards - Set Guidelines for recruitment, promotion & dismissal

Hierarchy of Authority

Defined Responsibilities

Control Centralized

Bureaucratic
Organization

Female Entrepreneurs
Emphasizes that a leader must have a certain set of traits to be viewed as an effective leader

High Intelligence

Considerable Verbal Fluency

Overall Knowledge

Energetic

Ambitious Persistence

The Contingency Theory

Leadermember relationship
Task Structure Position Power
The degree of confidence, trust and respect

The extent to which goals, procedure and guidelines need to be spelled out to the workers

The extent to which the leader or the group holds the power

Mark Zuckerberg
Well known internet entrepreneur Age 22 2004 Youngest recorded billionaire By 2010, the site had an estimated 500 million users worldwide The Social Network

Evenly Distributed
Cultural Attributes & Values can have a big effect on Styles of Leadership

Power
Wide Variation

Uncertainty

Power
Cultures where there is large Power Distance, an Ideal Leader may be expected to display great authority to the benefits of those being Led.

Uncertainty
Cultures with strong Uncertainty Avoidance prefer to work by the book, to rely on rules, regulations & Instructions. Leaders may need to show direction & make sure that tasks are well-structured.

Charismatic / Value Based Leadership Participative Leadership Humane Oriented Leadership Autonomous Leadership Self-protective Leadership

Ability to inspire, motivate and to expect high performance outcomes from others Degree to which managers involve others in making & implementing Decisions. Supportive & Considerate Leadership but also includes compassion & generosity.

Independent & Individualistic Leadership.

Ensuring Safety & Security of individuals.

Charismatic/ Value Based Leadership Team Oriented Leadership

Performance Oriented

In-group collectivism
Humane Orientation Uncertainty Avoidance

Male
Less

Female

Interpersonaloriented & more focused on the task.

Concentrate on the welfare of others democratic & charismatic

Stereotype Traits:
Decisiveness Aggression

Independence

Objectivity

Stereotype Traits: Warm Sensitive considerate expressive

Male Series of Transactions with subordinates whereby rewards were given for satisfactory performance and punishments given for inadequate performance

Female

Getting subordinates to see the bigger picture, to move beyond self-interest and consider the interest of groups as a whole.

Formal, hierarchical position within the company

Their position in org. & their own character (charisma, interpersonal skills, ability to work hard)

The way in which these attributes are expressed in actual behavior can vary considerably from culture to culture.

The differences in leadership style between males and females observed in one country are also seen in other countries, but the ways in which behavior tends to reflect these differences is based more on culture than gender.

Culture and Corporate Structure

What are the forms of corporate structures, elaborate on the two recent ones?

Culture and Leadership

Compare and contrast between X and Y leadership theories?

Naglaa Ashour Yasmin Nafie

Sahar Al-Jobury Marwa Mohamed