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Chapter 8

Chapter 8. Organizations and Organizational Change. Learning Objectives. Explain the classical and structural theories of organizations. Describe the components of social systems: roles, norms, and organizational culture. Understand the concept of person-organization fit.

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Chapter 8

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  1. Chapter 8 Organizations and Organizational Change

  2. Learning Objectives • Explain the classical and structural theories of organizations. • Describe the components of social systems: roles, norms, and organizational culture. • Understand the concept of person-organization fit. • Explain downsizing, outsourcing, offshoring, and mergers and acquisitions. • Explain the creation of global organizations. • Discuss the rationale for organizational change. • Understand why employees resist change. • Understand the concept of corporate social responsibility.

  3. Overview • Organizations are: • “Alive” • Don’t have “skin” • Under constant pressure to change • Able to shape the behavior of their members • Major activity of I/O psychologists is to help with change • Birth of “O” psychology

  4. Theories of Organizations • Classical Theory • Four basic components to any organization • A system of differentiated activities • People • Cooperation toward a goal • Authority

  5. Theories of Organizations • Classical Theory (cont’d) • Four major structural principles • Functional principle • Scalar principle • Line/staff principle • Span-of-control principle

  6. Theories of Organizations

  7. Theories of Organizations

  8. Theories of Organizations • Structural Theory • Seven basic parts of an organization • Operating core • Strategic apex • Middle line • Technostructure • Support staff • Ideology • Politics

  9. Components of Social Systems • No formal structure apart from its functioning • Have three informal components: • Roles • Norms • Organizational Culture

  10. Roles • Expectations others have about behaviors in specific positions • Five aspects of roles: • Impersonal • Related to task behavior • Difficult to pin down • Learned quickly and can produce behavior changes • Person in one job may have several roles

  11. Roles (cont’d) • Key concepts • Role conflict • Role ambiguity • Role overload

  12. Norms • Unwritten, shared expectations define appropriate group behavior • They differentiate positions • Four important properties of norms: • “Oughtness” quality of norms is a prescription for behavior • More obvious enforcement for “important” group behaviors • Regulated internally by the group • Shared to varying degrees and amount of deviation allowed

  13. Norms (cont’d) • Three-step process for developing and communicating norms; group must: • Define and communicate • Monitor and judge if being followed • Reward conformity and punish nonconformity • Norms can both promote or deviate from organizational goals

  14. Organizational Culture • Concept of culture is complex pattern of variables • Can be seen as three layers of an organization’s culture • Observable artifacts (from which deeper meaning drawn) • Symbols (physical objects, locations) • Language (jargon, gossip, humor) • Narratives (stories, legends) • Practices (rituals, taboos) • Espoused values • Beliefs endorsed by management • Can be different without anxiety • Basic assumptions • Deeply ingrained values • Rarely confronted without anxiety

  15. Organizational Culture (cont’d)

  16. Person-Organization Fit • Perception of value and goal match between employee and organization • Schneider’s ASA cycle – people drawn to organizations that fit • More predictive of turnover than job performance

  17. Downsizing • Downsizing (also called “reduction in force”) • organizations eliminate jobs to reduce payroll costs • Jobs are eliminated; employees are not fired

  18. Downsizing

  19. Downsizing

  20. Outsourcing and Offshoring • Outsourcing – functions performed by employees of the organization are eliminated, as functions are now performed by subcontractors or contingent personnel. • Offshoring – jobs are shipped overseas to cheaper labor markets

  21. Global Organizations • Evolution of global cultures: International → Multinational → Global • Hofstede’s four main dimensions: • Power distance • Individualism-collectivism • Masculinity-femininity • Uncertainty avoidance

  22. Global Organizations (cont’d)

  23. Global Organizations (cont’d) • Diversity of values (Marquardt) • Diversity leads to conflict • Global organization’s core values must transcend differences to be: • Fair • Reasonable • Respectful of local culture • Differences in values can be reduced to four key dimensions • Leadership roles and expectations • Individualism and groups • Communications • Decision-making and handling conflict

  24. Organizational Change • Forces responsible for organizational change today • Technology • Business based change • Small intentional organization change can grow to produce unintended change

  25. Corporate Social Responsibility • Corporate volunteering • Sustainability • Intersection of economic, social, and environmental goals

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