culture and organization: organizational structure and leadership

7/29/2019 culture and organization: organizational structure and leadership

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Organizational structure formsthe basis of the organizationsculture: 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 theformal lines of communication

between the employees


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Network structure A network of company unitswhich has a horizontal system ofcommunication

Responsibility is dispersed to

local subsidiaries

Facilitates cross-culturaltransfer of knowledge and

organizational learning

Facilitates organizationallearning.

E.g. Coffee Beans


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a multi-faceted organization which can respond to

international, multinational and global environment

dispersed, interdependent, and specialized

its national units make differentiated contributionsto integrated worldwide operations

its knowledge is developed jointly and shared

worldwide.

Examples of transnational companies? GM & Ford


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STRUCTURE

Domestic: services orproducts offered only inthe domestic market

Multidomestic:

Autonomous sub-unitssituation in severalcountries

Multinational: Diversity isinherent through

geographical spread Transnational: generates

its own evolution:heterogeneityindispensable.

CULTURAL DIVERSITY

no impact on theorganization

Strongly affects relations

external to theorganization (clients &employees)

Can cause problems, butcan also benefit

organization allows mutually beneficial

relations to be created


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How much risk is involved in the firms activities?

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


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Artifacts

Everything which is visible within theOrganization.

EspousedValue

Strategies , Objectives & philosophiesof organization.

Shared tacitassumption

Thought & perception driving the overt

behavior.


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Police Hospitals

Cosmetics

Lots of risk-taking , Quick feedback Emphasis on youth and speed.

Quick decisions needed , even if not always right.

The ToughGuy , MachoCulture

Company

Sales Dept.

Fun and action with Quick feedback .

Low-risk activities (strict control system preventing

major risks).

Consumers very important.

Work Hard /Play HardCulture

Exploration

Companies

(Oil)

High risk , Slow feedback .

Years before pay-off or failure.

Much discussion to ensure the right decision is

taken.

Bet YourCompanyCulture

Banks

Insurance

Pharmaceutical

Low-risk activities with little feedback .

Focus on how things are done rather than what

needs to be achieved.

ProcessCulture


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- Self-realization.

- commitment to

oneself & professional

recognition.

- Task-oriented , focus on

power of knowledge /

expertise.

- Commitment to tasks ,

pay for performance.

- Power-oriented with

stress on personal

relationships &entrepreneurial

character

- Role-oriented with

power attached to theposition or role.

High FormalizationHigh

Central

ization

LowC

entralization

Low Formalization


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The basic concepts & beliefs of an organization (Deal &

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 andcommitment .

Values are an indispensable guide for making day-to-daychoices.


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To make sure that each individualunderstands the full extent ofresponsibilities and work expectedout of them.


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; a large wholesaler specializing in interior furnishings,needed to boost its sales, Its domestic market was stagnant and, itsexport sales, although increasing gradually, were not delivering theanticipated volume: The company desperately, needed to make alarge deal, preferably in the expanding Asian market.

After Intensive efforts by its marketing department, Lekan waseventually contacted by a Japanese company, Ligato, which wasinterested in purchasing floor coverings. The two companies met on

several occasions in Tokyo and a large deal was finally made. Adinner was arranged to celebrate the successful conclusion ofbusiness.

Mr Roberts, the senior sales manager who had headed theLekan 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 thenChanel 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.


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- 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


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Bureaucratic

Organization

Defined

Responsibilities

Hierarchy

ofAuthority

Control Centralized


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Female Entrepreneurs

Emphasizes that a leader must

have a certain set of traits to beviewed as an effective leader


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High

IntelligenceConsiderable Verbal

Fluency

Overall

Knowledge

Energetic

Ambitious

Persistence


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The Contingency Theory

The degree of confidence, trust and

respect

Leader-

member

relationship

The extent to which goals, procedure andguidelines need to be spelled out to the

workers

TaskStructure

The extent to which the leader or thegroup holds the powerPositionPower


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Well known internet entrepreneur Age 22

2004

Youngest recorded billionaire

By 2010, the site had an estimated500 million users worldwide

The Social Network

Mark Zuckerberg


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Cultural Attributes

& Values can have

a big effect on

Styles of

Leadership

Power

Evenly

Distributed

WideVariation

Uncertainty


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UncertaintyPower

Cultures with strongUncertainty Avoidance preferto work by the book, to relyon rules, regulations &

Instructions.Leaders may need to showdirection & make sure thattasks are well-structured.

Cultures where there is largePower Distance, an IdealLeader may be expected todisplay great authority to the

benefits of those being Led.


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ParticipativeLeadership

Degree to which managers involve others in making& implementing Decisions.

Humane OrientedLeadership

Supportive & Considerate Leadership but alsoincludes compassion & generosity.

AutonomousLeadership

Independent & Individualistic Leadership.

Self-protective

Leadership

Ensuring Safety & Security of individuals.


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Performance Oriented

Charismatic/

Value Based

Leadership

In-group collectivism

Humane Orientation

Uncertainty Avoidance

Team

Oriented

Leadership


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Male Female

Less Interpersonal-oriented & more

focused on the task.

:

Decisiveness

AggressionIndependence

Objectivity

Concentrate on thewelfare of others

democratic &charismatic

:WarmSensitiveconsiderateexpressive


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Male Female


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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 reflectthese differences is based more on culture than gender.


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What are the forms of

corporate structures,elaborate on the two recent

ones?

Culture and

Corporate

Structure

Compare and contrast

between X and Y leadership

theories?

Culture and

Leadership


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Sahar Al-JoburyM M h d

Naglaa AshourY i N fi

culture and organization: organizational structure and leadership

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