Kinicki/Williams, Management, 9e: Chapter 8 Organizational Culture, Structure, and Design: Building
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CLASSROOM OUTLINE
Manage U: How to Get Noticed in a New Job: Fitting into an Organization’s Culture in the
First 60 Days
It is important to stand out when you begin a new job. This toolbox provides advice for things to
do in the first 60 days of new employment. First, you should strive to make a positive first
impression by demonstrating an energetic attitude. You should arrive early and stay late to
Possible Topics for Discussion:
● How does the foregoing advice square with your past experiences in starting a new job?
Are there things you wish you could have done differently?
Typically, students will focus on how their actions reflected the advice above. This is a
good place to emphasize the value of learning from the past, and to encourage students to
● Describe a time when you made a bad first impression with someone at work. How did
you or could you work to overcome that first impression?
While first impressions are lasting, they are not impossible to overcome. Encourage
students to think about different ways to overcome a poor first impression, and in
● Discuss ways that you could strive to be more open to feedback.
Emphasize to students the value of critical/developmental feedback, as a means of
8.1 Aligning Strategy, Culture, and Structure
POWERPOINT SLIDES:
#3 How to Stand Out in a New Job: Fitting into an Organization’s Culture in the First 60 Days
#4 Organizational Culture: The Shared Assumptions That Affect How Work Gets Done
#5 Drivers and Flow of Organizational Culture
#6 Organizational Structure: Who Reports to Whom and Who Does What
Section 8.1 begins the discussion on organizing, the second of the four functions in the
management process. Organizational culture consists of the set of shared, taken-for-granted
implicit assumptions that a group holds in the workplace. Organizational structure describes who
reports to whom and who does what. Managers need to align the organization’s vision and
strategies with its organizational culture and organizational structure.
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One advantage of sites such as Glassdoor is that they are more likely to provide evidence
of enacted values of the company which may not be reflected in the espoused values
3. Discuss how the managerial challenges discussed in Chapter 1 are likely to impact
organizational structure and organizational culture.
Many of these challenges address substantial changes in the external environment, such
as technological changes, increasing demographic diversity and globalization, and
Section 8.1 Key Concepts:
Organizational Culture: The Shared Assumptions That Affect How Work Gets Done
● To implement a particular strategy, managers must determine the right kind of (1)
organizational culture and (2) organizational structure.
● Culture can vary considerably, and the elements that drive an organization’s culture can
vary.
Organizational Structure: Who Reports to Whom and Who Does What
● Organizational structure is a formal system of task and reporting relationships that
coordinates and motivates an organization’s members so that they can work together to
achieve the organization’s goals.
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Interactive Classroom Material:
EXAMPLE: How Strategy Affects Culture and Culture Affects Structure: Cleveland Clinic
Refocuses Its Continuous Improvement Strategy.
Rather than having specified managers check statistical measures of performance once or twice a
year, Cleveland Clinic implemented a continuous improvement strategy to improve patient care
Connect® Exercise
CLICK AND DRAG: Drivers and Flow of Organizational Culture
Summary of Activity:
Interactive Classroom Material:
CASE ANALYSIS: W.L. Gore’s Culture Promotes Employee Satisfaction, Innovation, and
Retention
Summary of Activity:
Follow-Up Activity:
Instructor should open the floor to students to discuss organizational culture. Students should be
encouraged to share from their own experiences.
Instructor can also ask students about some examples of what W.L. Gore is doing to promote
employee satisfaction, innovation, and retention. Specifically, are these aligned with its
organizational mission and vision?
8.2 What Kind of Organizational Culture Will You Be
Operating In?
How do I find out about an organization’s “social glue,” its normal way of doing business?
POWERPOINT SLIDES: 6-14
#7 Three levels of Organizational Culture
#8 and #9 Four Types of Organizational Culture
#10 Competing Values Framework
Section 8.2 discusses the layers of organizational culture, the four types of organizational
cultures and how culture is transmitted. Organizational culture appears as three layers:
observable artifacts, espoused values, and basic assumptions. The four types of organization
culture are: clan, adhocracy, market, and hierarchy. Culture is transmitted to employees in
symbols, stories, heroes, rites and rituals, and organizational socialization.
video, René Carayol profiles how the Beverly Wilshire implements a customers-first mentality.
For a supplemental activity, have the students describe the culture of the Beverly Wilshire and
identify how they would classify it on the competing values framework. If time allows, ask
students to speculate about the culture of the London hotel that Carayol mentions at the end of
the video: where might it fall within the competing values framework?
The intensely customer-centric experience that Carayol describes at the Beverly Wilshire
suggests that the hotel exhibits a mix of types from the competing-values framework, as noted in
VIDEO
Kinicki/Williams, Management, 9e: Chapter 8 Organizational Culture, Structure, and Design: Building
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culture. If time allows, follow up by asking whether there might be downsides or unanticipated
disadvantages to some of these interview approaches.
As discussed in the article, the HubSpot managers value the extent to which interviewees fit with
the corporate culture of “HEART” (representing the espoused values of humble, effective,
Topics and Tips for Discussion:
1. Of the four culture types (i.e., clan, adhocracy, hierarchy, and market), identify which one
you would find the most motivating and explain why. (As with the Beverly Wilshire), is
there a particular combination of the culture types that you would find particularly
effective in motivating you to excel?
2. Discuss ways to learn about an organization’s culture prior to a job interview or before
accepting a new job.
It is important to do “culture detective” work as part of deciding where to work. A first
step is to look at available artifacts of culture, such as company documents. If possible,
3. Provide examples of how the organizational culture is transmitted at your organization or
at a previous one.
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Section 8.2 Key Concepts:
Levels of Organizational Culture
● Level 1: Observable Artifacts
● Level 2: Espoused Values
o Espoused values are the explicitly stated values and norms preferred by an
organization.
● Level 3: Basic Assumptions
o Basic assumptions, which are not observable, represent the core beliefs that
The Competing Values Framework
● The competing values framework (CVF) provides a practical way for managers to
understand, measure, and change organizational culture.
● The CVF indicates that organizations vary along two fundamental dimensions or axes:
● Combining these two axes creates four types of organizational cultures that are based on
different core values: clan, adhocracy, hierarchy and market.
Types of Organizational Culture
● Clan Culture
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o Clan culture: a culture that has an internal focus and values flexibility rather than
stability and control.
● Adhocracy Culture
o Adhocracy culture: a culture that has an external focus and values flexibility.
● Market Culture
o Market culture: a culture that has a strong external focus and values stability and
control.
● Hierarchy Culture
o Hierarchy culture: a culture that has an internal focus and values stability and
control over flexibility.
Interactive Classroom Material:
CLICK AND DRAG: Four Types of Organizational Cultures
Summary of Activity:
Organizational culture, sometimes called corporate culture, is a system of shared beliefs and
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SELF-ASSESSMENT 8.1
What Is the Organizational Culture at My Current Employer?
This 16-question Self-Assessment addresses students’ perception of the culture at their current or
How Employees Learn Culture
● A symbol is an object, act, quality, or event that conveys meaning to others.
● Organizational socialization is defined as the process by which people learn the values,
norms, and required behaviors that permit them to participate as members of an
organization.
o Converting from an outsider into an organizational insider may take weeks or
even years and this socialization occurs in three phases: anticipatory socialization,
encounter and change, and acquisition phase.
Interactive Classroom Material:
CLICK AND DRAG: The Organizational Socialization Process
Summary of Activity:
Kinicki/Williams, Management, 9e: Chapter 8 Organizational Culture, Structure, and Design: Building
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In this Click and Drag Exercise, students will match the different parts of the organizational
socialization process with its correct definitions.
The Importance of Culture
● Culture can powerfully shape an organization’s long-term success by enhancing its
competitive advantage.
● Figure 8.3 shows what organizational benefits are associated with what organizational
cultures.
● Research on the importance of culture shows that:
o An organization’s culture matters and it can be a source of competitive advantage.
o Employees have more positive work attitudes when working in organizations with
clan cultures.
What Does It Mean to “Fit”?
● Person-organization (PO) fit reflects the extent to which your personality and values
match the climate and culture in an organization.
8.3 The Process of Culture Change
What can be done to an organization’s culture to increase its economic performance?
POWERPOINT SLIDES: 15-16
#16 and #17 A Dozen Ways to Change Organizational Culture
Section 8.3 discusses the 12 ways in which a culture becomes established in an organization.
These include formal statements; slogans and sayings; rites and rituals; stories, legends and
Kinicki/Williams, Management, 9e: Chapter 8 Organizational Culture, Structure, and Design: Building
Blocks of the Organization
myths; leader reactions to crises; role modeling, training and coaching; physical design; rewards,
titles, promotions and bonuses; organizational goals and performance criteria; measurable and
controllable activities; organizational structure; and organizational systems and procedures.
Topics and Tips for Discussion:
1. Select at least four of the ways to change organizational culture listed in Section 8.3 and
provide an example of how each mechanism has been used by your company (or a
previous one) to embed its own culture in the organization.
Encourage students to fully detail what their chosen mechanisms have actually
communicated, and which values they have embedded. Ask students to think about the
effectiveness of each mechanisms: do some feel more authentic or have more impact than
others?
2. Consider the classroom layout and physical design at your academic institution. What do
they suggest about the organizational culture at your school?
Classroom layout can include the placement of desks or tables and chairs relative to the
instructor’s position in the classroom, and relative to each other. Outside the classroom,
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3. Have you ever had a job where you felt like you did not fit with the organization’s
culture? If so, describe the factors that contributed to this lack of fit. If not, in what ways
is (or was) your current or most recent position the right fit?
Section 8.3 Key Concepts:
The Process of Culture Change
● Changing organizational culture is a teaching process in which organizational members
teach each other about the organization’s preferred values, beliefs, expectations, and
behaviors.
● This process is accomplished by using one or more of the following mechanisms:
o Formal statements: Organizations can imbed a preferred culture through formal
statements made about organizational philosophy, mission, vision and values, as
well as materials used for recruiting, selecting and socializing employees.
o Leader reactions to crises: How top leaders respond to critical incidents and
organizational crises sends a clear cultural message.
o Role modeling, training, and coaching: Structured training can provide an in-
depth introduction to organizational values.
Kinicki/Williams, Management, 9e: Chapter 8 Organizational Culture, Structure, and Design: Building
Blocks of the Organization
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McGraw-Hill Education.
o Organizational structure: The hierarchical structure found in most traditional
organizations is more likely to reinforce a culture oriented toward control and
authority.
o Organizational systems and procedures: Companies are increasingly using
electronic networks to increase collaboration among employees along with
innovation, quality, and efficiency.
Interactive Classroom Material:
CLICK AND DRAG: The Process of Culture Change
Summary of Activity:
In this Click and Drag Exercise, students will match the different mechanisms of organizational
culture change with their correct descriptions.
Person-Organization Fit
● PO fit reflects the extent to which your personality and values match the climate and
culture in an organization.
● Employees’ PO fit matters because it links to their work attitudes and performance.
SELF-ASSESSMENT 8.2
Assessing Your Preferred Type of Organizational Culture
This 16-question Self-Assessment asks about the students’ preferred type of organizational
8.4 Organizational Structure
POWERPOINT SLIDES:
Kinicki/Williams, Management, 9e: Chapter 8 Organizational Culture, Structure, and Design: Building
Blocks of the Organization
Section 8.4 covers the organizational structure of the three types of organizations: for-profit,
nonprofit, and mutual-benefit. The structure may be expressed vertically or horizontally on an
organization chart.
Topics and Tips for Discussion:
1. Discuss the ways in which for-profit, nonprofit, and mutual-benefit organizations differ.
For-profit organizations are formed to make profits from the sale of products or services.
2. Discuss the value of creating an organizational chart.
An organizational chart provides a useful way to visualize an organization’s structure
3. Locate the organizational chart for your company or one for which you would like to
work after graduation. Describe what you can learn from this chart about the firm’s
vertical hierarchy of authority and the horizontal specialization of the firm.
The vertical hierarchy of authority in an organizational chart clarifies both who reports
to whom within an organization as well as the official communication network, that is,
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Section 8.4 Key Concepts:
Types of Organizations
● An organization is a system of consciously coordinated activities or forces of two or
more people.
● The three types of organizations are classified according to the different purposes for
which they are formed.
Organization Charts
● An organization chart is a box-and-lines illustration showing the formal lines of
authority and the organization’s official positions or work specializations.
● Vertical Hierarchy of Authority
o The vertical hierarchy identifies who reports to whom.
● Horizontal Specialization
o The horizontal specialization identifies who specializes in what work.
8.5 The Major Elements of an Organization
POWERPOINT SLIDES:
#21 and #22 Common Elements of Organizations
#23 Line Positions and Staff Positions
Section 8.5 discusses the seven basic elements or features of an organization. These include
common purpose; coordinated effort; division of labor; hierarchy of authority; span of control;
authority, responsibility, and delegation; and centralization versus decentralization of authority.
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Kinicki/Williams, Management, 9e: Chapter 8 Organizational Culture, Structure, and Design: Building
Blocks of the Organization
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McGraw-Hill Education.
One way that you could begin your coverage of these topics is to have the students read the HR
Magazine article “Is It Time to Tear Up the Organizational Chart?” from the March 2016 issue.
This article profiles some of the downsides of removing formal organizational structures. For a
supplemental activity, you can have the students discuss the tradeoffs that organizations make in
choosing different types of organizational structures such as centralization versus
decentralization, or tall versus flat hierarchy.
The process of choosing a specific organizational structure will be covered in Section 8.7.
However, it is worth discussing here the tradeoffs inherent in most dimensions of organizational
In order to focus students more closely on the activity of managerial delegation, you could have
Like many company founders, Tsai reports that she had to learn how to delegate in order to
scale (or grow) the business: “At first, I thought I could do everything myself…but the reality is,
Topics and Tips for Discussion:
1. Describe what being a “flat organization” means for the company’s organizational
structure.
2. Describe the span of control at your company or a previous one. Is this the appropriate
span for this company? Defend your point of view.
Again here, it can be useful to have students discuss the tradeoffs that their chosen
company most likely made (whether implicitly or explicitly) as it developed to its current
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whether they believe the benefits of the company’s span of control outweigh the
downsides.
3. Describe the advantages and disadvantages of centralized authority versus decentralized
authority.
Centralized authority is typically associated with higher levels of control and ability to
standardize products and processes, whereas decentralized authority is typically
Section 8.5 Key Concepts:
Common Elements of Organization Proposed by Edgar Schein
● Organizational psychologist Edgar Schein proposed the four common elements of (1)
common purpose, (2) coordinated effort, (3) division of labor, and (4) hierarchy of
authority.
● The hierarchy of authority, or chain of command, is a control mechanism for making
sure the right people do the right things at the right time.
o If coordinated effort is to be achieved, some people need to have more authority,
or the right to direct the work of others.
Other Common Elements of Organizations
● In addition to Schein’s four common elements, three others that most authorities agree on
are: span of control; authority, responsibility, and delegation; and centralization versus
decentralization of authority.
● Span of Control
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o The span of control, or span of management, refers to the number of people
reporting directly to a given manager.
▪ A narrow span of control means a manager has a limited number of people
reporting; an organization is said to be tall when there are many levels
with narrow spans of control.
● Authority, Responsibility, and Delegation
o Authority refers to the rights inherent in a managerial position to make decisions,
give orders, and utilize resources.
▪ Authority is distinguished from power, which is the extent to which a
person is able to influence others so they respond to orders.
o With more authority comes more responsibility, the obligation you have to
perform the tasks assigned to you.
▪ If managers are given too much authority and not enough responsibility,
they may become abusive to subordinates and capricious in exerting
o Delegation is the process of assigning managerial authority and responsibility to
managers and employees lower in the hierarchy.
o An organization chart distinguishes between line positions (indicated on a chart
by a solid line) and staff positions (indicated on a chart by a dotted line).
Kinicki/Williams, Management, 9e: Chapter 8 Organizational Culture, Structure, and Design: Building
Blocks of the Organization
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McGraw-Hill Education.
▪ Staff personnel have advisory functions; they provide advice,
recommendations, and research to line managers.
Interactive Classroom Material:
CLICK AND DRAG: Major Organizational Elements
Summary of Activity:
What comprises the list of the elements or features of an organization is not universally agreed
Interactive Classroom Material:
PRACTICAL ACTION: How to Delegate Effectively
How do you decide when to delegate and when not to? Here are some guidelines: 1) Delegate
routine and technical matters; 2) Delegate tasks that help your subordinates grow; 3) Don’t
▪ Centralization versus Decentralization
o With centralized authority, important decisions are made by higher-level
managers.
▪ Nearly all organizations have at least some authority concentrated at the
o With decentralized authority, important decisions are made by middle-level and
supervisory-level managers.
▪ Power is delegated throughout the organization.
8.6 Basic Types of Organizational Structures
POWERPOINT SLIDES:
#24 Basic Types of Organizational Structures: Simple Structure
#25 Basic Types of Organizational Structures: Functional Structure
#26 Basic Types of Organizational Structures: Divisional Structure
Section 8.6 describes organizational designs, which can be categorized as traditional, horizontal,
and designs that open boundaries between organizations. Traditional organizational designs
include simple, functional, divisional, and matrix. Horizontal designs revolve around teams or
workgroups. Open structures include hollow, modular, and virtual organizations.
One way that you could begin your coverage of these topics is to have the students read the