Organisation Behaviour Tutotial

8/13/2019 Organisation Behaviour Tutotial

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ORGANISATIONAL BEHAVIOURANDANALYSISTUTORIAL

UNIT19 OCTOber 2013


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FOUNDATIONSOFINDIVIDUAL AND ORGANISATIONBEHAVIOUR


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Ability-Job Fit

The Ability - Job Fit Employee performance is enhanced when

there is a high ability - job fit.

We need to keep this in mind from an HR

perspective as well as an individual trying to

make a job decision.

What predictions can we make if the fit is poor?

If employees lack the required abilities? If employees abilities far exceed the

requirements of the job?


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JOB ATTITUDES


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ORGANISATIONAL BEHAVIOURANDANALYSISTUTORIAL

UNIT 319 OCTOber 2013


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THE NATUREOFORGANISATIONSTRUCTURE


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Why Have a Structure? All businesses have to organise whatthey do A clear structure makes it easier tosee which part of the business doeswhat There are many ways to structure abusiness


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Ways to Structure a Business By function arranging the businessaccording to what each sectionor department does By product or activity organisingaccording to the different productsmade By area geographical or regionalstructure


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Ways to Structure a Business By function arranging the business according towhat each section or department does By product or activity organising according tothe different products made By area geographical or regional structure By customer where different customer groups

have different needs By process where products have to go throughstages as they are made


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Some Key Terms Flat/Tall/Divisional/Adaptive

Structure

Span of control

Chain of command

Hierarchy

Delegation

Empowerment


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Divisional StructureAdvantagesccountability

This approach makes it much easier to assign responsibility for actions and results. In

particular, a division is run by its own management group, which looks out for the best

interests of the division.

ompetitionThe divisional structure works well in markets where there is a great deal of competition,

where local managers can quickly shift the direction of their businesses.

ultureYou can use this structure to create a culture at the divisional level that most closely meets the

needs of the local market.

Local decisionsThe divisional structure allows decision-making to be shifted downward in the organization,

which may improve the company's ability to respond to local market conditions.

Multiple offeringsWhen a company has a large number of product offerings, or different markets that it

services, and they are not similar, it makes more sense to adopt the divisional structure.

SpeedThis approach tends to yield faster responses to local market conditions


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DIVISIONAL STRUCTUREDISADVANTAGES

Cost

When you set up a complete set of functions within each division, there are likely to be more employees in total than

would be the case if the business had instead been organized under a purely functional structure. Also, there must

still be a corporate organization, which adds more overhead cost to the business.

Economies of scale

The company as a whole may not be able to take advantage of economies of scale, unless purchases are integrated

across the entire organisation.

Inefficiencies

When there are a number of functional areas spread among many divisions, no one functional area will be as

efficient as would have been the case if there had instead been one central organization for each function.

Rivalries

The various divisions may have no incentive to work together, and may even work at cross-purposes, as some

managers undercut the actions of other divisions in order to gain localized advantages.Silos

All skills are compartmentalized by division, so it can be difficult to transfer skills or best practices across the

organization. It is also more difficult to cross-sell products and services between the divisions.

Strategic focus

Each division will tend to have its own strategic direction, which may differ from the strategic direction of the

company as a whole


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ORGANISATIONAL DESIGN


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Organisation design is the deliberate process ofconfiguring structures, processes, rewardsystems, and people practices to create aneffective organisation capable of achieving thebusiness strategy. The organisation is not an endin itself; it is simply a vehicle for accomplishingthe strategic tasks of the business. A well-designed organisation helps everyone in thebusiness do her or his job effectively. A poorly-designed organisation or an organisation bydefault creates barriers and frustrations forpeople both inside and outside the organisation


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Organisation Behaviour Tutotial