MBA 540 Final Exam

1. (10 pts.) Discuss how organizational architecture and corporate culture are related. Use an example of a real-life firm and discuss how its corporate culture blends with its organizational architecture.

Organizational architecture and corporate culture should be intertwined within any successful company or organization. In the text, Brickley (2009), refers to organizational architecture as being three legs of a company: assignments of decision rights, 2) methods of rewarding individuals, and 3) the structure of systems to evaluate the performance of both individuals and business units. Organizational architecture is the framework of company departments such as managerial chain of command, the duty description and responsibility of each position. Corporate culture includes the ways work and authority are organized, the way people are rewarded and controlled for their work, as well as taboos, customers, heroes, slogans, and social rituals. The three elements of architecture help form the existence of how a culture is developed. A prime example is Merrill Lynch. Merrill is a well know investment company that manages the portfolio of investors. It suggested to its client to buy Info Space though, internally, analyst knew the stock had tanked in price. They were never upfront about selling the stock. Their ethical violations caused shockwaves in the investment community forcing other to ensure measures were in place to prevent a disaster. Merrill Lynch had developed a culture of deceit and mistrust amongst it clients. It would seem to me the Merrill Lynch lacked the leg of the architecture; the structure of systems to evaluate the performance of both individuals and business units, which created this type of culture.

2. (10 pts.) Billy Riggan is in charge of all technical developments at Always Round Tire. He makes all the choices concerning