Topic 4:Structure, Culture and
Creativity
a)
b)
c)
d)
e)
f)
Organisational structure and strategy
Culture and strategy
Theories of organisational strategy
National cultures and Project Globe
Culture and corporate governance
Functions performed by culture and
structure
Organisational Structure
•Organisational chart
•Reporting relationships
•Levels of hierarchy
•Spans of control
•Departmentalisation
•Teams and groups
•Formal v informal
Types of systems needed
for :
•Co-ordination
•Communication
•Integration
•Control
•Motivation
Organisational Structure
•Organisational chart
•Reporting relationships
•Levels of hierarchy
•Spans of control
•Departmentalisation
•Teams and groups
•Formal v informal
Types of systems needed
for :
•Co-ordination
•Communication
•Integration
•Control
•Motivation
Organisational Structural Designs
•Functional Structure
Can adapt functional
structure with horizontal
linkages
•Divisional Structure
•Geographical Structure
•Matrix Structure
•Horizontal Structure /
Product Line Structure
•Hybrid Structure
CEO and
Board
Europe
Division
A
Division
B
Asia
Division
C
Alfred D. Chandler (1992 ...)
• Strategy and stucture US investigation of large
organisations
• ‘strategy follows structure’
• Du Pont, general Motors, Standard Oil and Sears
Roebuck
• Adoption of the multidivisional form to execute strategy
(the M Form)
• Corporate strategy – long-tern goals and resource
allocation
• New organisational forms evolve from strategy evolution
Henry Mintzberg (1983)
•Framework of the
organisation to enable
dialogue
•5 basic parts of the
organisation
•Described 5 ideal types of
stucture – simple, machine,
professional,divisional and ad
hoc structures
•5 basic parts are:
•- Strategic apex
•- middle line
•-operating core
•-technostructure
•- support staff
•Add to the above the
culture of the organisation
Structures and Challenges
(Johnson et al,2012)
Challenges
Control
Knowledge
Change
Internationalisation
F M Ma T
*** **
**
*
*
**
*
**
*
**
P
**
F - functional
M - multidivisional
Ma - matrix
T - transnational
*** *** **
P - project
3 stars – best score
*** *** ***
Virtual organisations
Complex organisational
*** *** **
forms
Ulrich and Black’s six global
capabilities in Martin (2005)
•
•
•
•
Determine core and non core activities
Achieve consistency and encourage flexibility
Gain leverage through focus
Share learning globally and create knowledge and
innovation
• Build global brands that respect local custom
• Work within a global perspective but be locally accountable
These capabilities provide a sound basis for
global cultural behaviours to-day
Yip and Bartlett and Ghoshal
Yip (1989)
Globalisation consists of 3
stages
-Developing a core strategy
-Internationalisation of the
strategy
-Globalisation through integration
of largely seperate country based
international strategies
Bartlett and Ghoshal
(1989)
•Identifies the differentiation
between globalisation and
internationalisation
•Identify 2 forms of global
organisation
- International organisation
- transnational organisation
McKinsey 7-S Model: enterprise analysis
•Strategy
•Structure
•Shared Values
•Style
•Staff
•Systems
Hard and soft elements are
grouped seperately
What is culture?
The way we do things around here”
• Is it based on nationality, religion , race or social
experience?
• Is there something called corporate culture?
• How can a global culture and mind set be developed?
• Are global paradigms easy to foster, develop
and maintain?
• Can corporate culture be a source of competitive
advantage?
Hofstead and Trompenaars
Hofsted’s 5 dimensions of
culture 1984, to 91)
•Power distance
•Uncertainty avoidance
•Individualism-collectivism
•Masculinity –femininity
•Long term-short term orientation
•Became the basis for project
Globe (see later)
Trompenaars (1993)
•Argues that what works in one
culture rarely transmits to another
•Worked for Shell and as a
consultant
•Major differences e.g.
Performance pay etc.
•Suggests 7 dimensions of culture
– argues against dominant head
office and for transnational
approach
Project Globe
1.
2.
3.
Power distance
In-group collectivism
Institutional collectivism
4.
5.
Uncertainty avoidance
Future orientation
6.
7.
8.
9.
Gender egalitarianism
Assertiveness
Humane orientation
Performance orientation
1.
2.
3.
4.
5.
6.
7.
8.
9.
Power culture
Loyalty culture
Co-operation over individual
autonomy
Desire for order
Defer immediate desires for
future benefits
Gender equality
Assertiveness culture
Fairness and caring for people
Rewards for performance are of
key importance
Global Culture and Corporate
Governance
• 2006 Scherer et al uncovered the following issues:
– Businesses on the global scale have more complex responsibilities
then the traditional economic theories of the firm suggest (i.e. profit
maximization)
– Consumers have growing social expectations which can be fuelled
by the media
– Management studies are acknowledging global firms’
responsibilities but not how they can optimize their behaviour
– Where do the boundaries lie and what are the limits of corporate
responsibility
Is this creating a new economic theory of the firm!
Definitions and the Cultural Web
Stories
Rituals and routines
Symbols
Control systems
Power structures
Organizational structures