Lecture Slide Ob

8/10/2019 Lecture Slide Ob

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ORGANISATIONAL BEHAVIOUR


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LEARNING OUTCOME : 02

Understand how organisational structures and culture impact

on the effectiveness of the organisation

LO 2.1 : Analyse the characteristics of differentorganisational structure

LO 2.2 : Evaluate the importance of organisationalculture theory in developing organisationaleffectiveness

LO 2.3 : Analyse the culture and structure of oneorganisation and evaluate how they impact on itseffectiveness


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WHAT IS ORGANIZATIONAL STRUCTURE?

According to STEPHEN P ROBBINS An organizational structuredefines how job tasks are formally divided, grouped andcoordinated.

According to FRED LUTHANS Organization structure represents theskeleton framework for organizational behavior.

Organizational structure is defined as the framework of tasks,

reporting and authority relationships within which an organizationfunctions.


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NEED FOR FORMAL ORGANIZATION

STRUCTURE

Facilitating Management

Encouraging Growth

Optimum Use of Technological Improvement

Encouraging Human Use of Human Beings

Stimulating Creativity


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Elements oforganization

structure

Department-alization

Chain ofcommand

Formalization

Span ofcontrol

Workspecialization

CentralizationandDe-

centralization


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Work Specialization

Work Specialization or Division Of Labor

refers to the degree to which activities in an

organization are subdivided into separate

jobs.

In essence, individuals specialize in doing part

of an activity rather than the entire activity.


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Departmentalization

The basis by which jobs are grouped togetheris called Departmentalization.

The various ways by which

Departmentalization can be done are:- Functional

Product

Customer

Geographic


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Chain of Command

Who reports to whom?


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Span of Control

How many people can a manager manage?
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Formal decision making authority is held

by a few people, usually at the top

Centralization

Decision making authority is

dispersed throughout the organization

Decentralization

Centralization and Decentralization


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FORMS OF ORGANIZATIONAL STUCTURES

The Line and Staff Organization Structure

The Functional Organization Structure

The Divisional Organization Structure

The Matrix Structure

The Project Organization Structure

Free form Organization Structure Network Organization Structure


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Line and Staff Organization Structure

Line DepartmentsSubstantive (direct) in its contribution toorganizations overall objective

Staff DepartmentsObjective (indirect) in its contribution to

organizations overall objective

Line and Staff conflict

Reasons of conflict are:

Difference in view points

Lack of separation between Line and Staff Lack of proper understanding of authority

Different background


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Functional Organization Structure

Traditional concept of organizing.

The basis of departmentation is the various

functions to be performed by the

organization.

Widely used in medium and large

organizations.


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Divisional Organization Structure

Also known as Profit Decentralization.

Organization is divided into fairly autonomous units.

Each unit is self contained and directly accountable tothe organization.

Basis of Divisionalisation

Product Divisionalisation

Territorial Divisionalisation Strategic Business Divisionalisation


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Product Divisionalisation

Vice President

Sales and

Marketing

Vice President

Research and

Development

Vice President

Materials

Management

CEO

Vice President

Finance

CannedSoups

Division

PDM

FrozenVegetable

Division

PDM

FrozenEntrees

Division

PDM

BakedGoods

Division

PDM

Centralized support functions

Divisions


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Matrix Organization Structure

It is the realization of two dimensionalstructure which emanates directly from two

dimensions of authority.


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Matrix Structure

CEO

Vice President

Engineering

Vice President

Finance

Vice President

Purchasing

Vice President

Sales and

Marketing

Vice President

Research and

Development

Product A

Manager

Product B

Manager

Product C

Manager

Product D

Manager

Product Team

Two-boss employee


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Project Organization Structure


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Free Form Organization

Also known as naturalistic, organic form of

organization structure.

Free form structures reduce the emphasis on

positions, departments and other formal

units, and on the organizational hierarchy.

Free form organizations are suitable for those

industries which have to work in highly

dynamic environments.


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Network organization structure

A recent innovation in organizationalarchitecture is the use of network structures.

A network structure is a cluster of different

organizations whose actions are

coordinated by contracts and agreements

rather than through a formal hierarchy.


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2003 Prentice Hall Inc. Allrights reserved.

What Is Organizational Culture?

Characteristics:

1. Innovation and risktaking

2. Attention to detail3. Outcome orientation

4. People orientation

5. Team orientation

6. Aggressiveness

7. Stability


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What Is Organizational Culture?

(contd)


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What Do Cultures Do?

Cultures Functions:

1. Defines the boundary between one organization

and others.

2. Conveys a sense of identity for its members.

3. Facilitates the generation of commitment to

something larger than self-interest.

4. Enhances the stability of the social system.


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What Do Cultures Do?

Culture as a Liability:

1. Barrier to change

2. Barrier to diversity

3. Barrier to acquisitions and

mergers


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Stages in the Socialization Process


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H O i ti l C lt H


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How Organizational Cultures Have

an Impact on Performance and

Satisfaction


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Questions for Cultural Analysis

What is the background of the founders?

What explains the organizations growth andsurvival?

What does the organization stand for? Whatis its motto?

What values does the organization talk

about? What values does the organization act

about?leadershipcultivation.blogspot.com


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LIKERTS

Exploitive authoritative

In this style, the leader has a low concern for

people and uses such methods as threats and

other fear-based methods to achieve

conformance. Communication is almost

entirely downwards and the psychologically

distant concerns of people are ignored.


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Benevolent authoritative

When the leader adds concern for people to anauthoritative position, a 'benevolent dictatorship'is formed. The leader now uses rewards to

encourage appropriate performance and listensmore to concerns lower down the organization,although what they hear is often rose-tinted,being limited to what their subordinates think

that the boss wants to hear. Although there maybe some delegation of decisions, almost all majordecisions are still made centrally.


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Consultative

The upward flow of information here is still

cautious and rose-tinted to some degree,

although the leader is making genuine efforts

to listen carefully to ideas. Nevertheless,

major decisions are still largely centrally made


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Participative

At this level, the leader makes maximum use

of participative methods, engaging people

lower down the organization in decision-

making. People across the organization are

psychologically closer together and work well

together at all levels.


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Mintzbergs-

Five Generic Structures

There are five generic organisation structureswhich can be described in terms of the five-part

theory: Simple structure,

Machine bureaucracy,

Professional bureaucracy,

Divisionalised form,

Adhocracy


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SIMPLE STRUCTURE

The simple structure, typically, has

little or no techno structure, few supportstaffers,

a loose division of labour, minimaldifferentiation among its units, and a smallmanagerial hierarchy.

The behaviour of simple structure is notformalised and planning, training, and liaisondevices are minimally used in such structures


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Machine Bureaucracy

The design of a machine bureaucracy tends to be asfollows:

highly specialised, routine operating tasks;

very formalised procedures in the operating core;

a production of rules, regulations, & formalisedcommunication;

large-sized units at the operating level;

reliance on the functional basis for grouping tasks;

relatively centralised power for decision making; an elaborate administrative structure with sharp

distinctions between line and staff.


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Professional Bureaucracy

The professional bureaucracy relies for coordination on:

the standardization of skills and its associatedparameters such as design, training and instruction.

In professional bureaucracy type structures dulytrained and indoctrinated specialists -professionals- arehired for the operating core, and then considerablecontrol over their work is given to them.

Most of the necessary coordination between theoperating professionals is handled by thestandardization of skills and knowledge especially bywhat they have learned to expect from their colleagues


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Divisionalised Structure

Divisionalised form type organizations are

composed of semi-autonomous units - the

divisions. The divisionalised form is probably a

structural derivative of a Machine Bureaucracy -an operational solution to co-ordinate and

controls a large conglomerate delivering:

Horizontally diversified products or services

In a straight-forward, stable environment

Where large economies of scale need not apply


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Adhocracy Structure

Adhocracy includes a highly organic structure, with:

little formalization of behaviour;

job specialization based on formal training;

a tendency to group the specialists in functionalunits for housekeeping purposes but to deploythem in small, market-based project teams to dotheir work;

a reliance on connection devices to encouragemutual adjustment, the key coordinatingmechanism, within and between these teams


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References Ellinor, L. & Gerard, G. (1998) Dialogue: Rediscover the transformative power of conversation.

New York: John Wiley & Sons Inc. Goodstien, L.D & Goodstien, J. (2007) A new approach to understanding and measuring

values. Pheiffer Annual: Consulting.

Helgesen, S. (1995) The Female Advantage. New York: Doubleday Senge, P., Kleiner, A., Ross, P., Smith, B., & Roberts C. (1994) The fifth discipline fieldbook.

New York: Doubleday. Schein, E. (1992). Organizational culture and leadership, 2nd ed. San Francisco, CA: Jossey-

Bass.

Morgan, G. (2006). Images of organization. Thousand Oaks, CA: Sage. Schein, E. (2004). DEC is dead. Long live DEC. Berrett-Koehler. Schein, E. (1999). The corporate culture survival guide. San Francisco, CA: Jossey-Bass. Schein, E. (1996). Three cultures of management: The key to organizational learning. Sloan

Management Review, 38, no. 1:-20.

Schein, E. (1992). Organizational culture and leadership, 2nd ed. San Francisco, CA: Jossey-Bass.

Stephenson, K. (2007). Quantum theory of trust. Financial Times.

Stephenson, K. (2006). Netform Analysis Training Manual.

Weick, K. E. (1979). The social psychology of organizing (2nd ed.) Weick, K. E. (1996). Sensemaking in organizations. Newbury Park, CA: Sage

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