BBA102 Lecture Notes - Lecture 3: Organizational Culture, Centralisation
8 May 2018
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Organisation is a system of consciously coordinated activities or forces between two or more
persons. (Barnard, 1938)
Social units (or human groupings) deliberately constructed and reconstructed to seek special
goals. (Etzioni, 1964)
Common Elements of Organisations
1. Common Purpose
2. Coordinated Effort
3. Division Of Labour
4. Hierarchy of Authority
5. Span of Control
6. Authority, Responsibility and Delegation
7. Centralisation versus De-centralisation of Authority
Levels of Organisational Culture
Level 1: Observable Artefacts
• Physical manifestations, such as manner of dress, awards, myths and stories about the
company.
• Vision and mission statements visible behaviour exhibited by managers and employees.
Level 2: Espoused Values
• Espoused Values
• Explicitly stated values and norms preferred by an organisation.
• Enacted Values
• Represent the values and norms actually exhibited in the organisation
Level 3: Basic Assumptions
• Represent the core values of the organisation's culture
• Those taken for granted and highly resistant to change
How employees Learn Culture
o Symbol
• An object, act, quality, or event that conveys meaning to others
o Story
• Narrative based on true events, which is repeated, and sometimes embellished upon, to
emphasize a particular value
o Hero
• Person whose accomplishments embody the values of the organization
o Rites and rituals
• Activities and ceremonies, planned and unplanned, that celebrate important occasions
ad accoplishets i the orgaisatios life
Organizational Structure:
The essence of structure:
Roots in geometry: "equilibrium has been shown to be the basis of
all structural cocepts”. ‘osethal, 97
Pillars of organizational
structure:
• The vertical hierarchy of authority
• The horizontal specialisation
Organisational design:
Application ofoptimal structures of accountability and
responsibility as instruments for achieving Organisational goals.
Organisational charts:
Visual representations of vertical and horizontal relationships.
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