Organizational Structure

Task 01 1) Discuss different organization structures and identify the type of organizational structure that do you thinks suitable for your selected organization? Organizational structure • Organizational structure is the way in witch an organization’s activities (job tasks) are divided, organized and coordinated. • Organizational structure is the way in which and work, authority resources of an organization have been divided among members. Types of organizational structure ? Entrepreneurial structure ? Bureaucratic structure ? Matrix structure Entrepreneurial structure

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Most organizations start life as an entrepreneurial structure in that they are brought into existence to extend the capability and capacity of an individual, who has discovered a way of meeting potential customer – or client need, but cannot achieve results without assistance. The two essential components of any dictionary definition of the word ‘entrepreneur’ are risk and initiative. The fact of having had the initiative and taken the risk gives the entrepreneur such dominance in the evolving organizations that everything depends on him and most activities of other members are either replicating or mirroring what the entrepreneur is doing.

The initiative shown usually includes a powerful ingredient of expertise or specialized knowledge that nobody else can supply, and which is the secret of success. Most people are employed in organizations that do not depend absolutely on the continuing, irreplaceable contribution of a single entrepreneur. The large oil companies most public sector undertakings like the National Health Service or the Civil service, High Street banks, schools, colleges, airline companies, insurance companies have a quite different type of drive to their activities.

Other types of organization appear to need, however, the strong centralization of the entrepreneurial form to be effective. Where there is the need to move fast and take major decisions requiring flair and skilled judgement rather than a measured weighing of alternatives, then the entrepreneurial form is maintained. The entrepreneurial form is attractive to many managers because of its emphasis on individual power and risky competition. This organization works on precedent, on anticipating the wishes and decisions of the central power sources.

There are few rules and procedures, little bureaucracy. Control is exercised by the centre, largely through the selection of key individuals, by occasional forays from the centre or summonses to the centre. It is a political organization in that decisions are taken largely on the outcome of a balance of influence rather than on procedural or purely logical grounds. Bureaucratic structure Bureaucracy is the most common form of organization and has been used, as we saw in the second chapter, in various forms for most of human history.

It is only recently that the word has taken on the unattractive overtones that turn “bureaucrat” into a term of abuse. The principal of bureaucratic organization is that jobs are grouped according to some common feature and then ranked in a conventional hierarchy of responsibility to distribute power between organization members. The most common grouping is function, with a marketing hierarchy, a production hierarchy and so on. An alternative is the geographical grouping, whereby there is a factory hierarchy and another for the London office and a third for the warehousing and distribution centre.

In bureaucracy the employee focuses on his role in the organization rather than on the relative power of individuals. Bureaucratic structures are characterized by an advanced degree of specialization between jobs and departments, by a reliance on formal procedures and paperwork, and by extended managerial hierarchies with clearly marked status distinctions. In bureaucracies there tends to be a strictly delimited system of delegation down these hierarchies whereby an employee is expected to use his discretion only within what the rules allow.

A useful example is retail banking or the work of building societies. Here the operations have to be standardized, not only in all branches of the same bank but also between competing banks, so that customers find the system easy to deal with. The work of bank clerks and, in a different way, bank managers requires knowledge, skill and accuracy, but it must be carried out strictly in accordance with the rules and there is little scope for individuality apart from one’s manner in talking with customers and manual dexterity in counting banknote.

Bureaucracy provides scope for economies of scale and extensive specialization at the expense of flexibility and product innovation. Their predictability provides a secure environment for the employee and a clear line of safe career progression. Chief Executive The matrix structure As the entrepreneurial and bureaucratic structures have such obvious drawbacks, a third general mode has been evolved and used IV some situations: the matrix. The method is simply to overlay a second set of hierarchical connections over a first, but at right-angles to it.

This was first developed in the American aerospace industry because of government demands for a single project manager who would be responsible for the progress of each government contract and to whom government officials could channel all their queries and instruction. Companies soon found big advantages in this arrangement and expanded it so that the project manager was not only a communication link but also a direct superior of employees in different functional groups, although these employees would also still report to their functional superiors.

An example could be the making of a television program, which will require a rang of specialist skills, such as set-building, make-up, special effects, design and engineering. The matrix organization does, therefore, need time and care in its creation, balancing the power of the tow axes and working out a basis of trust and understanding among the key participants. It is not something to work out on the back of an envelope during a train journey; it requires extensive consultation and discussion, progressive implementation over several months and attention for several years as it settles down and moves towards effectiveness.

General Manager 1. 2) Explain centralization and decentralization states which types present in your selected organization Centralization and decentralization Centralization: The degree to which decision-marking is concentrated at the top of the organization. Decentralization: The extent to which decision discretion is pushed down to lower level employees. Or The delegation of authority from higher to lower levels of the organization, often accomplished by the creation of small self-contained organizational units. Advantages and Disadvantages of Decentralization Advantages |Disadvantages | |Reduces the workload of top managers. |Difficulties in maintaining uniformity and consistency of | | |organization policies and procedures | |Speed up decision-making. |Difficulties in communication. | | |Coordination problems. | |Increases the quality of decisions. |High administrative cost. | | | |Motivates subordinates. | | | | | |Trains lower level managers for higher level responsibilities | | The process of Decentralization 1. Assign duties to subordinates. 2. Grant them authority. . Create an obligation for the satisfactory performance of the job. My selected organization is Decentralization because of these reasons Reduces the workload of top managers, Speed up decision-making, Increases the quality of decisions, Motivates subordinates, and Trains lower level managers for higher level responsibilities. 1. 3) Examine organizational culture and how employees learn organization culture in the deleted anyway The organization culture is the patterned way of thinking, feeling, and reacting that exists in an organization or its sub sectors.

It is the unique ‘mental programming’ of that organization, which is a reflection of its modal organization personality. The organization’s culture is affected by three general factors: broad external influences, societal values, and organization-specific factors Broad external influences are factors over which the organization has little or no control such as the natural environment and historical events which have shaped the society. Organization culture, structures, and manifestations Sourcesorganization culturemanifestations Type of organization culture

The modal personality of the dominant power group in the organization, usually key managers at top levels, will be the major determinant of the organization culture. This group makes the important decisions about the strategies and modes of implementation such as market strategy, organization design, the nature of the reward system, and who is advanced into this group. The five types of neurotic organization culture • Charismatic-self-sufficient • Paranoid-trusting • Avoidant-achievement • Politicized-focused • Bureaucratic-creative

Charismatic-self-sufficient A charismatic organization culture is associated with a dramatic managerial personality. Dramatic managers have feelings of grandiosity, have a strong need for attention from others, and act in ways to draw attention to themselves. They tend to be exhibitionists, seeking excitement and stimulation. Howe ever, they often lack self-discipline, cannot focus their attention for long periods of time, and tend to be charming but superficial. They frequently exploit others and often attract subordinates with high dependency needs.

In charismatic organization cultures, this emphasis on individualism is exaggerated, particularly at the top level. The executives have a high need for visibility and recognition outside the firm. The goal of the firm is to grow rapidly. Decision making is based on intuition, guesses and hunches without careful analysis of the environment or the capabilities of the organization. Often the organization structure and human resources are inadequate to handle the desired growth. Such managers exploit others, and power is concentrated at the top of the organization.

This does tow things; the top executive keeps close control and at the same time remains the center of attention. Firm with a self-sufficient culture emphasize independence, individual initiative, and achievement. Members believe that the success of the firm is related to how well individuals, as individuals, succeed. In these firms, managers have opportunities to develop and advance at their own rates. Achievement and self-discipline are recognized. Paranoid-trusting The paranoid culture results from a suspicious personality style.

The manager feels persecuted by others and doesn’t trust them and so behaves in guarded and secret ways, believing that subordinates are lazy, incompetent, and secretly whish to “get” him or her. He or she feels hostile toward others, particularly peers and subordinates, and acts aggressively toward them. The top managers in paranoid firms are not proactive. The fear and suspicion that dominates the organization reduces its ability to respond quickly and spontaneously to important strategic opportunities.

Managements are constantly searching for information about what is going in their environments. It is acquired through elaborate control systems that provide information the top management believes is required to cope with the external crises those they fear are coming. The information, however, tends to be highly distorted to confirm the suspicions of threat that are the basis for the paranoid organizations. The decision makers look for deeper, hidden reason for the events that occur around them. In a trusting culture this unrealistic fear is not present. There is a sense f tryst, fairness, and openness toward others, managers, professionals, and workers in the firm have the competence and motivation to succeed. This could result in active searches for new strategic niches in which the firm can gain some competitive advantage if such ventures are undertaken. Avoidant-achievement The depressive personality orientation leads to an avoidant culture. Depressive tendencies arise out of feelings of helplessness and dependence on others. The depressive person has strong needs for affection and support from others and feels to act on and change the course the course of events.

These feeling of inadequacy are related to very passive behavior and inaction. Depressives often seek justification of their actions from other significant actors, in the case of managers; these might be experts and consultants. A feature of organizations with avoidant cultures is that the dominant coalition seeks to avoid change. They are passive and purposeless. Managers avoid making decisions. Change is resisted because it may threaten the current organization values and power structure; appropriate action is avoided.

The relative low level of external change and the desire of the management to retain control result in little activity, low self-confidence, high anxiety, and extremely conservative culture. In a achievement culture, member of the top executive group value logical analysis and rational processes. They seek to understand the strengths and weaknesses of the firm relative to its competitors. Those managers recognize a need to change and feel confident that changes can made. Having information about the availability of opportunities, managers are willing to make decision and take action to take advantage of them.

Politicized-focused Politicized cultures occur in organizations when the modal organization personality is a detached orientation. Those with this orientation have a strong sense of detachment from others and of not being connected to the environment. They believe that interaction with others will lead to harm and avoid emotional relationships because they fear they will be demeaned by others. Aloofness and coldness characterizes their relationships. They are socially and psychologically isolated and do not care about it. In politicized organization cultures there is no clear direction.

The chief executive is not strong, but detached from the organization. Liking leadership, managers at lower level try to influence the direction of the firm. There are often several individuals or coalitions competing for power because of the lack of leadership. Managers are involved in these divisive power struggles to enhance their own position and status, and there is only minimal concern with the success of the organization. In a focused culture, members share similar perspective about the organization’s sense of direction.

This flows from the clear direction set by the executives, and there is member commitment and enthusiasm towards these objectives. Bureaucratic-creative The Bureaucratic culture is a result of a compulsive model organization personality. Compulsive peoples have a very strong need to control the environment. Such people view things in terms of domination and submission. They behave in meticulous ways and focus on very specific but often trivial details. Compulsive managers are devoted to their work and tend to show difference towards those at levels above them and act in autocratic ways towards subordinators.

They have strong preference for well ordered system and processes. In the bureaucratic culture the concern is more with how things look rather than with how things work. In the creative culture, members are more self- disciplined. They can work together as a team without excessive reliance on rules and procedures. They are knowledgeable about the work of others and the task interdependencies. Coordination among members is a somewhat intuitive process that develops from experiences of working together and being successful. The members know that cooperation is for success. . 4) Examine nature of human behavior, complexity of each human behavior and the importance of translating individual objectives into organizational objectives Who best exemplifies the basic essence of human nature: greedy executives engaged in corporate fraud; Mike Tyson, the aggressive boxer; or the courageous, compassionate Americans who risked their lives to save strangers on Sept. 11? If you chose only the personifications of greed and aggression, you are neglecting a vital part of our nature, according to Shelley E. Taylor, UCLA psychology professor.

In a new book, Taylor argues that nurturing others and caring for their needs are as wired into our genes as our aggressive and competitive nature. “The tending instinct is every bit as tenacious as our more aggressive, selfish side,” Taylor argues in “The Tending Instinct: How Nurturing Is Essential to Who We Are and How We Live” (Henry Holt). “Tending to others is as natural, as biologically based, as searching for food or sleeping. ” An internationally renowned scientist in the field of stress and health, Taylor conducted 25 years of research and analyzed more than 1,000 research studies before writing this book. I originally assumed that biology largely determines behavior,” Taylor said, “and so it was a tantalizing surprise to see how clearly social relationships forge our underlying biology, even at the level of gene expression. Chief among these social forces are the ways in which people take care of one another and tend to one another’s needs. An early warm and nurturing relationship, such as mothers often enjoy with their children, is as vital to development as calcium is to bones. “The benefits that tending provides to children, especially those with genetic risks, are substantial.

Children who are well tended in early childhood grow up with better social and emotional ways of meeting the world. Even in adult relationships, we tend to each other’s needs in ways that sustain long and healthy lives. ” Life, business and relations between the sexes are often depicted as battlefields — “dog eat dog” — where the successful outmaneuver and overpower the weak. Taylor, whose research is federally funded by the National Science Foundation and the National Institute of Mental Health, finds this metaphor to be a half-truth, at best. Tending is instinctive, and affects our biology at every stage of life,” she said. “We have neuro-circuitrys for tending as surely as we have biological circuitry for obtaining food and reproducing ourselves. How people fare in times of stress — from how calm they are to their likelihood of becoming ill — depends on the quality of the tending they receive. ” What role does our genetic makeup play in determining our behavior? “The genome is like an architect’s first plan, a rough projection of how a person may turn out,” Taylor argues. This plan is revised during the course of the building process. The kitchen is rotated 90 degrees; the living room is extended a few feet. Later, the owner adds a bathroom, perhaps even a second story. This is what happens when genes meet the environment in which they find expression, and tending is a large part of this environment. “From life in the womb to the surprisingly resilient brain of old age, the social environment molds and shapes the expression of our genetic heritage until the genetic contribution is sometimes barely evident.

A mother’s tending can completely eliminate the potential effects of a gene; a risk for a disease can fail to materialize with nurturing, and a genetic propensity may lead to one outcome for one person and the opposite for another, based on the tending they received. “Who we are — our character, even our physical health — depends on the people who tend to us and how well we get along with them — our mothers, fathers, friends and lovers. ” Early tending has an extraordinary impact on children, Taylor documents.

Showing an example of the devastating effects on children who received little love or tending, Taylor cites the hundreds of thousands of Romanian orphans housed together in desperate conditions at the end of the Ceausescu regime in 1990. With few workers to care for large numbers of children, relief workers were shocked to find “room after room of children who rocked back and forth, hit their heads against the walls, and grimaced oddly, giving no sign they had registered that anyone new was present,” she writes. Others simply stared at the strangers with big, sad eyes. “Their emotions were stunted. They took little joy in their surroundings, and were not bothered by reprimands or criticisms. They just didn’t care. They weren’t tortured or raped. They just weren’t loved, held, hugged or taught to feel emotions or how to recognize them in others. “The first few years of life are critical for building these emotional responses to life. If a child fails to get warm, responsive contact with another person during those years, the disadvantages may never be fully overcome. As the Soviet bloc crumbled, Eastern Europe’s newly free countries experienced an abrupt decline in the marriage rate, a staggering increase in divorce, a steep decline in the birth rate, dramatic increases in heart disease and fatal accidents, and a plummeting life expectancy. People who were expected to live into their 70s were dying in their 40s and 50s instead. The threat to life expectancy hit young and middle-aged men especially hard, particularly those who were single. In 1994 a Russian man’s ife expectancy had decreased to just 57 (from 64 five years earlier). Men in the former East Germany suffered a 40 percent increase in their death rate. “Women fared better than men because they had informal ties in place that helped them negotiate the new social and economic order,” Taylor writes. “Using well-honed networking skills, they were able to acquire food and other goods to maintain their now reduced standard of living. Women and children died, too, but in far fewer numbers, sustained through the transition by the social bonds they had created and nurtured.

When a society’s tending system breaks down, illness and death can follow, sometimes in astonishingly short order. Men, in particular, are vulnerable. ” Among older workers in the United States, those with little social support die earlier, Taylor said. How well workers are treated by their immediate supervisor makes a large difference in their physical and mental health, especially for men, Taylor writes. This “tending,” or lack of it, by your supervisor, affects your risk for coronary heart disease or a heart attack, as well as depression and anxiety.

Nurturing contact with parents in early childhood, combined with social support during times of stress, good friends (especially female friends), and a strong, loving relationship (especially with a wife) “all protect against the psychological and health problems that stress otherwise promotes,” she writes. People with social support have “younger” stress systems and better protection against major chronic diseases, Taylor writes. Strong ties with family and close friends protect against health ailments, while social isolation increases the risk for all causes of death, including heart disease, cancer, strokes and accidents. More than 100 scientific studies show that people who have social support and who are connected to their families, their colleagues at work, their communities, their churches and their friends all prosper biologically,” Taylor said. Women often get much of their social support from other women, and women’s friendships are vital to their mental health, she writes. Throughout life, women seek more close friends than men do, and create larger social networks for themselves.

Women’s networks become especially important in stressful times, meeting a variety of needs, including raising children, protecting against violence and coping with stress. Even among animals, she writes, females enjoy the comfort of one another’s company. In a study of Norway rats, for example, females housed together in groups of five lived 40 percent longer than rats that were housed alone. Among prairie voles (a small rodent), males react to stressful conditions by seeking contact with their female mates, while females turn not to their mates, but to other female “friends. Female bonobos (monkeys) form intense, long-lasting bonds with other females, much more so than males. From velvet monkeys to humans, mothers often treat their young the way they were treated in childhood. In monkeys, mothers who were mistreated or deprived in infancy do not mother their own offspring as well as nurtured monkeys do, Taylor writes. Men and women who were abused as children are likely to become abusive parents themselves, she writes, and children who do not receive much physical attention or warmth are at risk for a wide range of serious physical and mental health problems.

Taylor’s own research over many years shows that turning to one’s social group for safety and support is a common way for people to cope with stress. “The fact that one can see a similar pattern in animals suggests that turning to others may have quite old biological origins,” she writes. Across cultures, girls typically receive training in tending from an early age, Taylor writes, beginning with playing with dolls and caring for younger siblings, baby-sitting for others’ children, and later caring for their own children, a sick husband and elderly parents.

With the enormous popularity of cell phones, Taylor noted, we now carry our social support network with us wherever we go. Friendships are vital, she said, and “social ties are the cheapest medicine we have. ” [pic] ———————– Chief executive Company secretary & Personnel office Personal Assistant Distribution Research and Development Production Supervisor Northern Region Sales Account and general office Purchasing and Supplies Overseas sales Design and Engineering Southern Region Sales Director of Finance Director of Personnel Director of Marketing

Director of manufacturing Director of Research General project manager Production Design Personnel Project A Manager Functional areas resurging projects Material supplies Cost Accounts Project B Manager Project C Manager Team A Team B Team C • External influences • Societal values • organization-specific factors o Technology o History • Charismatic-self-sufficient • Paranoid-trusting • Avoidant-achievement • Politicized-focused • Bureaucratic-creative • Organization design • Socialization strategies • Class distinctions • Ideologies • Myths and symbols • Language • Rites and ceremonies

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