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    ORGANIZATIONALSTRUCTUREAND

    INDIVIDUAL BEHAVIOUR

    1

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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

    2

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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?

    3

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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

    4

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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.

    5

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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

    6

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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

    7

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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

    9

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    Networks

    Intraorganizational networks

    internal networks

    shamrockspiderwebs

    Interorganizational networks

    strategic alliances

    joint ventures

    partial acquisitions/mergers

    cross-sector partnerships

    10

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    Except for born globals, Most

    Companies Grow intoExpansion

    11

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    Most Common StructuralTypes

    Among Global Firms are: Functional structure

    Divisional structure

    Hybrid structures

    Combined functional/divisional structure

    Matrix structure

    12

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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

    13

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    Divisional Structure Can Take

    Different Forms Product

    Geographic

    Customer group served

    14

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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

    15

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    Global Product Structure

    DIVISIONAL STRUCTURE (BY PRODUCT LINES)

    FRAGRANCES SKIN CARE PRODUCTS HAIR CARE PRODUCTS OTHER PRODUCTS

    COSMETICS CORPORATION

    16

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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

    17

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    We Use a Matrix to

    Organize Roles andRelationships in Business

    Education

    18

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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

    19

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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

    20

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    Intraorganizational Structures

    spiderwebs

    internal networks

    shamrocks

    horizontal keiretsu

    chaebol

    21

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    Interorganizational Structures

    Strategic alliances

    Joint ventures

    Partial acquisitions

    22

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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

    23

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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

    24

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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

    A

    R

    NI

    N

    G

    OB

    JE

    C

    T

    IV

    E

    S

    25

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    Biographical Characteristics

    Personal characteristicssuch as age, gender,and marital statusthat are objective andeasily obtained from personnel records.

    26

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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.

    27

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    Number aptitude

    Verbal comprehension

    Perceptual speed

    Inductive reasoning

    Deductive reasoning

    Spatial visualization

    Memory

    Dimensions of

    Intellectual Ability

    28

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    Physical Abilities

    The capacity to do tasksdemanding stamina, dexterity,strength, and similar

    characteristics.

    29

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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

    30

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    Ability-JobFit

    The Ability-Job Fit

    Employees

    Abilities

    Jobs Ability

    Requirements

    31

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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.

    32

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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.

    33

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    34

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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.

    35

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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.

    36

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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.

    37

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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.

    39

    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.

    40

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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.

    41

    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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