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Wk 4 Dq
Why do organizational structures differ?0 ch. 15
Culture, views of the ceo, technology, its resources, global
Generally, organizational structures tend to reflect the views of the CEO. As more and more “new blood” comes into Nucor, do you think the structure will begin to look like that of other organizations?
Technology describes the way an organization transfers inputs into outputs. Every organization has at least one technology for converting financial, human, and physical resources into products or services. Ford Motor Company uses an assembly-line process to make its products. Colleges may use a number of instructional technologies—the ever-popular lecture method, the case-analysis method, the experiential exercise method, the programmed learning method. Regardless, organizational structures adapt to their technology.
Yet many organizational structures tend to be based on physical rather than intellectual resources.
U.S. auto manufacturers focus their structure on physical assets—product lines or component systems—and outsource some parts making or assembly. Japanese auto manufacturers such as Toyota or Honda, conversely, focus on developing the intellectual products in house (design and engineering) and outsource some or most manufacturing and assembly to the countries where they sell their products. It has been argued that these structural differences account for the intangible design and engineering advantages Japanese automakers enjoy.
Although research is slim, it does suggest national culture influences the preference for structure.34 Organizations that operate with people from high power-distance cultures, such as Greece, France, and most of Latin America, find that their employees are much more accepting of mechanistic structures than are employees from low power-distance countries. So consider cultural differences along with individual differences when predicting how structure will affect employee performance and satisfaction.
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