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ORGANIZATIONALSTRUCTUREAND
INDIVIDUAL BEHAVIOUR
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Every Organization has a
StructureBut structures can differ
Due to choice
Due to national laws
The words used to describe them also can
differ
Organization chart, design, structureThe 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 organizationalobjectives
arises out of strategic directions
and causes managers to ask:what structure will best aid us in meeting
our strategy and objectives?
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Restructuring Occurs for Many
Reasons
Turnover in top management
Competitive positioning
Mergers and/or acquisitions
Cost-savings
Even the illusion of managerial control
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The Illusion of Managerial
ControlWe 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 wetend 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.
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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
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Your Job
Understand organizational objectives
(articulated in the varied levels of
strategy)
Analyze the structure
Assess the match betweenorganizational strategies and structures
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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 executivecommittee 8
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Beneath the Board are
Several Structural Types Intra and interorganizational networks
Special cases
Functional, divisional, hybrids
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Networks
Intraorganizational networks
internal networks
shamrockspiderwebs
Interorganizational networks
strategic alliances
joint ventures
partial acquisitions/mergers
cross-sector partnerships
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Except for born globals, Most
Companies Grow intoExpansion
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Most Common StructuralTypes
Among Global Firms are: Functional structure
Divisional structure
Hybrid structures
Combined functional/divisional structure
Matrix structure
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Global Functional Structure
VP Marketing VP Finance
Country A Country B
Product 1 Product 2 Product 3
VP Operations VP R&D VP Legal issues
CEO
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Divisional Structure Can Take
Different Forms Product
Geographic
Customer group served
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Global Geographic Division
Structure
Admin/Finance
VP for the Americas VP Europe VP E. Asia
Marketing Operations
Australia/NZ Indonesia Islands
VP Australasia
CEO
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Global Product Structure
DIVISIONAL STRUCTURE (BY PRODUCT LINES)
FRAGRANCES SKIN CARE PRODUCTS HAIR CARE PRODUCTS OTHER PRODUCTS
COSMETICS CORPORATION
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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 andRelationships in Business
Education
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Global Matrix Structure
Management
financing
parts
sports utilities
light trucks
autos
Strategic Business units N. America Latin America Europe Asia
Executive Committee
Chairman of the Board
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Combined Functional andDivisional Structure
Danone Group, 2003
Chair and CEO Vice Chair and COO
General
SecretaryExec VP,
Finance
Exec VP,
Fresh Dairy
Exec VP,
Water
Exec VP,
Biscuits and
Cereal Snacks
Exec VP,
Asia-PacificExec 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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o r g a n i z a t i o n a l
b e h a v i o r
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After studying this chapter,you should be able to:
1. Define the key biographical
characteristics.
2. Identify two types of ability.
3. Shape the behavior of others.
4. Distinguish between the four schedules
of reinforcement.5. Clarify the role of punishment in
learning.
6. Practice self-management
LE
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Biographical Characteristics
Personal characteristicssuch as age, gender,and marital statusthat are objective andeasily obtained from personnel records.
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Ability, Intellect, and Intelligence
AbilityAn individuals capacity to performthe various tasks in a job.
Intellectual AbilityThe capacity to do mental activities.
Multiple IntelligencesIntelligence contains four subparts:cognitive, social, emotional, and cultural.
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Number aptitude
Verbal comprehension
Perceptual speed
Inductive reasoning
Deductive reasoning
Spatial visualization
Memory
Dimensions of
Intellectual Ability
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Physical Abilities
The capacity to do tasksdemanding stamina, dexterity,strength, and similar
characteristics.
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Other Factors
7. Body coordination
8. Balance
9. Stamina
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
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Ability-JobFit
The Ability-Job Fit
Employees
Abilities
Jobs Ability
Requirements
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Learning
Learning
Involves change
Is relatively permanent
Is acquired through experience
Any relatively permanent change in behaviorthat occurs as a result of experience.
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Theories of Learning
Key Concepts
Unconditioned stimulus
Unconditioned response
Conditioned stimulus
Conditioned response
Classical ConditioningA type of conditioning in which an individualresponds to some stimulus that would notordinarily produce such a response.
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Theories of Learning (contd)
Key Concepts
Reflexive (unlearned) behavior
Conditioned (learned) behavior
Reinforcement
Operant Conditioning
A type of conditioning in which desired voluntarybehavior leads to a reward or prevents a punishment.
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Theories of Learning (contd)
Key Concepts
Attentional processes
Retention processes
Motor reproduction processes
Reinforcement processes
Social-Learning TheoryPeople can learn through observationand direct experience.
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Theories of Learning (contd)
Key Concepts
Reinforcement is required to change behavior.
Some rewards are more effective than others.
The timing of reinforcement affects learning speed andpermanence.
Shaping BehaviorSystematically reinforcing each successive step thatmoves an individual closer to the desired response.
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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 anundesirable behavior.
Extinction
Withholding reinforcement of a behavior to cause38
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Schedules of Reinforcement
Continuous Reinforcement
A desired behavior is reinforcedeach time it is demonstrated.
Intermittent Reinforcement
A desired behavior is reinforced
often enough to make thebehavior worth repeating but notevery time it is demonstrated.
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Schedules of Reinforcement
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Schedules of Reinforcement(contd)
Fixed-Interval Schedule
Rewards are spaced atuniform time intervals.
Variable-Interval Schedule
Rewards are initiated after afixed or constant number of
responses.
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Behavior Modification
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
The application of reinforcement conceptsto individuals in the work setting.
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OB MOD Organizational
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OB MOD OrganizationalApplications 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 trainingeffectiveness.
Self-management
Reduces the need for external management 42
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