Revised chapter 7 (7) culture and corporate structures

Slide 7.3Forms of organisational structure Fatehi 1996: • Three basic models of organisational structure: Functions – Products – Geographic areas... Slide 7.5Cultural diversity and orga

Slide 7.1

Part 2

Culture and organisations

Chapter 7

Culture and corporate

structures

Slide 7.3

Forms of organisational structure

Fatehi (1996):

• Three basic models of organisational structure: Functions – Products – Geographic areas.

• Classification of five organisational structures:

− Geographic structure

– Functional structure

– Product structure

– Mixed structure (combinations of above)

– Matrix structure (the two ‘lines’ – functional and

• Transnational structure (Bartlett and Ghoshal, 1989)

– A multi-faceted organisation

– respond to international, multinational and global

environment.

Characteristics:

– Dispersed, interdependent, specialised

– Its national units make differentiated contributions

to integrated worldwide operations – Its knowledge is developed jointly and shared

worldwide.

Slide 7.5

Cultural diversity and organisational

structure

• The concept focuses on the ‘corporate’ element of culture and on two key criteria:

─ business environment

─ national cultural setting

• The business environment:

• single greatest influence in shaping a corporate culture

• The national cultural setting:

• has an influence on how companies manage their business.

Slide 7.7

Classifying organisational cultures

(Deal and Kennedy)

The tough guy, macho

culture

e.g police, hospitals,

cosmetics

 lots of risk-taking, quick feedback

 emphasis on youth and speed

 quick decisions needed, even if not always right

Work hard/Play hard culture

e.g company sales

department or factory

 ‘Fun’ and action with quick feedback

 low risk activities (strict control system preventing major risks)

 consumers very important

Bet-your company culture

e.g exploration companies (oil)

 high risk, slow feedback

 years before pay-off or failure

 much discussion to ensure the right decision is taken

The process culture

e.g banks, insurance,

 low-risk activities with little feedback focus on how things are done rather than what needs

(Trompenaars and Woolliams)

oneself and professional recognition

The Guided

Missile

 Low degree of centralisation and a high degree of formalisation

 Task-oriented, focus on power of knowledge/expertise

 Commitment to tasks, pay for performance

The Family  High centralisation and low formalisation  Power-oriented, with stress on personal

relationships and entrepreneurial character

The Eiffel

Tower

 High formalisation, high centralisation

 Role-oriented, with power attached to the position or role

Model based on ‘organisational relationships’

Slide 7.9

Analysing organisational cultures