An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. An organization can be structured in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs.
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An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. An organization can be structured in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs.
Behavior Structure, Process and Design
CONTENTS
TITLES PAGE NO
7.1. Behavior Structure 1
7.2. Organization Culture 1
7.3. Organizational Development 9
7.4. Organization Process/Structure 16
7.5. Dimensions Of Organization Structure 19
7.6. Organizational Design 22
7.7. Traditional Organizational Structure 26
7.8. Contemporary Organizational Designs 33
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Behavior Structure, Process and Design
7.1 - BEHAVIOUR STRUCTURE
Behavior structure of organization deals with :
1) Organization Culture
2) Organization Development
7.2 – ORGANIZATION CULTURE :
7.2.1 - Meaning and Definition of Organizational Culture
Organizational culture is accumulated tradition of the organizational
functioning. It is based on certain values, norms and positive attitudes of an
organization. Organizational environment becomes a culture if it is used for
motivating people to avoid any friction and adopt the valuable tradition of the
organization. The success of any organization depends on the culture, as it is the
invisible power governing the organization.According to O’Rellly,” Organizational
culture is the set of assumptions, beliefs, values and norms that are shared by an
organization’s members”.
TABLE: Formal components of Organizational Culture :
1) Mission/vision The milestones to be
reached.
Could be unrealistic.
2) Policies Statements designed to
be guidelines to
behavioral decision.
Policies, if not drafted
properly can provide
leeway.
3) Procedures Methods of providing
specific guidelines.
Can facilitate or
create obstacles in
smooth functioning.
4) Rules Specific Instructions for Rules could be a
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Behavior Structure, Process and Design
performing a task. means or an end in
themselves.
5) State f Organizational
development.
Organization at young,
growing, maturing or
mature stage of
development
Stage of
organizational
development has
direct impact on work
culture.
7.2.2 - Characteristics of Organizational Culture :
1) Individual initiative.
2) Risk Tolerance.
3) Direction.
4) Integration.
5) Management Support.
6) Control.
7) Identity.
8) Reward system.
9) Communication Patterns.
7.2.3 - Functions of Organizational Culture:-
1) Organization is recognized by its culture. Whenever people name an
organization, the culture attached to the organization is immediately
remembered. One organization is immediately remembered. One
organization is distinctively different from other organizations by its culture.
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Behavior Structure, Process and Design
2) Organizational Culture makes the boundary beyond which no employees are
permitted to go. They automatically adopt the limit known as a cultural
limit.
3) A number of organizations are well recognized by the culture. They are
given a sense of pride and identity by the public.
4) Organizational culture provides the facilities for self-satisfaction. Employees
get internal satisfaction with an esteemed culture. People are more satisfied
this way than when their individual interests are fulfilled.
5) The culture of an organization provides its stability. People prefer to
continue with the organization. Employees, customers, financiers and other
related persons prefer to remain with the organization.
6) The social recognition of the organizational culture makes the organization
grow and develop in all dimensions.
7) Employees get an opportunity to set the standards of performance. They try
to achieve the standards. It becomes a self-control mechanism which helps
the organization to grow and flourish.
8) The attitude and the behavior of the employees are directed towards the
achievement of goals through a sound culture.
9) Organizational culture acts as a motivator that guides and controls the
employees.
7.2.4 - ELEMENTS OF CULTURE:-
Artifacts: artifacts are the physical things that are found that have particular
symbolism.
Stories, histories, myths, legends, joke.
Rituals, rites, ceremonies, celebrations.
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Heroes: idealized examples by which cultural members learn about the
‘perfect behavior’.
Symbols and symbolic actions: symbols can also be used to indicate status
within a culture. This includes clothing, office décor and so on.
Beliefs, assumptions and mental models.
Attitude.
Rules, norms, ethical codes and values.
7.2.5 - LEVELS OF ORGANIZATION CULTURE:
According to Edgar schein organizational culture has three levels. These are:
1) Observable Artifacts: These are the symbols of culture in the physical and
social work environment and are most visible and accessible. Among he
artifacts of culture are the following:-
i. Organizational heroes: As a reflection of the organization’s
philosophy, this dimension concerns the behavior of
organizational members, specially the behavior of top
management and their leadership styles.
ii. Ceremonies and rites: This reflects the activities that are
enacted repeatedly on important occasions.
iii. Stories: Lavin son and Rosenthal suggest that stories and myths
about organization’s heroes are powerful tools to reinforce
cultural values throughout the organization an specially n
0rienting new employees.
iv. Cultural Symbols: Certain code of dress or a company logo can
reflect its values and orientations.
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2) Shared Values: Values reflect a person’s underlying belief as to what
should be and what should not be. Values are what those principles and
qualities that shapes our thinking and behavior.
3) Common Assumptions: These are deeply held beliefs that are not
objectively observable but manifest themselves in the behavior of people so
strongly that any violation of such beliefs would be unthinkable.
7.2.6 - PROCESS OF CREATING ORGANIZATIONAL CULTURE:-
Organizational culture is a long-term proposition that must satisfy the
members needs and values and match the cultural requirements of the society of
which the organization is a part. Therefore, the organization has to develop a
culture which is conducive to both the members in it and social culture.
Figure: 1 Process of organizational culture
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Establishing values
Creating vision
Operationalizin
g values and visio
n
Socialization of
employees
Behavior Structure, Process and Design
7.2.7 - MAINTAINING ORGANIZATIONAL CULTURE:-
After the organizational culture is created and developed, the next step is to
maintain it.
Figure 2: Model of managing Organizational Culture
1) Selection of Entry-Level Personnel
2) Placement on the Job.
3) Job Mastery.
The emotionally balanced employees easily adjust and encounter the
initial cultural shock and concentrate on mastery of their jobs. Superiors and
trainers help the employees in this process.
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Start
Careful selection of entry
level candidat
es
Deselct
Consistent role
model
Humility inducing experiences
promote openess towards accepting
organizational norms and values.
Reinforcing
Adherence to values
enables the reconciliati
on of personal sacrifces
In-the trenches training leads
to mastery of a core discipline.
Rewards and control systems are
meticulously refined to einforce behavior that
is deemed vital to success in the market
place.
Behavior Structure, Process and Design
1) Measuring and Rewarding Performance: - Employees performance is
measured and rewarded based on performance.
2) Adherence to Core Values:- At this stage, the employees are inspired and
encouraged o adhere to the company’s core values even by sacrificing their
personal comforts like missing weekends, working long hours and taking up
inconvenient job assignments.
3) Reinforcing the Stories and Folklore: At this stage, companies reinforce
organizational folklore.
4) Recognition and Promotion: Management maintains culture by recognizing
and promoting the employees who serve as role models in implementing the
cultural values.
7.2.8 - MERITS OF ORGANIZATIONAL CULTURE:-
1) Culture keeps the people together and increases the cohesiveness or bondage
among its members.
2) Culture performs boundary- defining role.
3) It conveys a sense of identity among the members.
4) It creates a social system of shared values.
7.2.9 - DEMERITS OF ORGANIZATIONAL CULTURE:-
1) When the organization is operating as a dynamic environment, culture does
not allow the organization to change in accordance with the environmental
demands.
2) New entrants bring diversified cultures into the organization. But the strong
cultures demand new employees to confirm to its values rather than
modifying it through their diversified culture, whatsoever their merits may
be.
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3) Many business alliances like mergers and acquisitions, today, are tending
towards divorcé due to the strong cultures of the partners to the alliance.
Thus, change in organizational culture is necessary in order to allow the
organization o change in accordance with the environment and to act as a
change agent to the environment.
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7.3 – ORGANIZATION DEVELOPMENT
7.3.1 – Meaning and Definition
Theory and practice of planned, systematic change in theattitudes, beliefs,
and values of the employees through creation and reinforcement of long
term training programs. OD is action oriented. It starts with a careful organization
wide analysis of the current situation and of the futurerequirements, and
employs techniques of behavioral sciences such as behavior modeling, sensitivity
training, andtransactional analysis. Its objective is to enable theorganization in
adopting-better to the fast-changingexternal environment of
new markets, regulations, and technologies.
7.3.2 - Objectives of Organizational Development:
As objectives of organizational development are framed keeping in view
specific situations, they vary from one situation to another. In other words, these
programs are tailored to meet the requirements of a particular situation. But
broadly speaking, all organizational development programs try to achieve the
following objectives:
• Making individuals in the organization aware of the vision of the organization
Organizational development helps in making employees align with the vision of
the organization.
• Encouraging employees to solve problems instead of avoiding them.
• Strengthening inter-personnel trust, cooperation, and communication for the
successful achievement of organizational goals.
• Encourage every individual to participate in the process of planning, thus making
them feel responsible for the implementation of the plan.
• Creating a work atmosphere in which employees are encouraged to work and
participate enthusiastically.
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• Replacing formal lines of authority with personal knowledge and skill.
• Creating an environment of trust so that employees willingly accept change.
According to organizational development thinking, organization development
provides managers with a vehicle for introducing change systematically by
applying a broad selection of management techniques. This, in turn, leads to
greater personal, group, and organizational effectiveness.
7.3.3 - Organizational Development Process
The organizational development process consists of three major steps: diagnosis,
intervention and evaluation. These steps are similar with the planned change
process, since organizational development is actually a specialized type of change
effort. An organizational development process is most likely to be initiated when
top management believes that there are deficiencies in the way the overall
organization is functioning.
Diagnosis: The first step involves diagnosis of the present situation. Change agents
collect the required information through interviews, questionnaires, internal
documents, records, and reports. Usually, a diagnostic strategy is developed using
two or more methods of data collection after their respective strengths and
weaknesses have been considered.
Intervention: After the situation is diagnosed, organizational development
interventions or change strategies can be designed and implemented with the help
of a change agent. Some of the organizational development intervention techniques
are:
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• Process consultation: This is concerned with interpersonal relations and
functioning of work groups. The organizational development change agent
observes the group and gives feedback regarding dysfunctions in areas of decision
making, handling conflicts, and communication patterns.
• Team building: This technique is used to help work groups become effective in
performing their tasks. The organizational development consultant helps in
assessing group tasks, member roles, and strategies for accomplishing work tasks.
• Third-party intervention: Here, organizational development consultants help
the parties concerned to resolve their differences through techniques like problem
solving and conciliation.
• Survey Feedback: In survey feedback, data gathered through survey
questionnaires and personal interviews are analyzed, tabulated into understandable
form and shared with those who first supplied the information. Survey feedback
lets people know where they stand in relation to others on important organizational
issues thus helping them resolve conflicts in a constructive manner. Effective
feedback should be relevant, understandable, descriptive, verifiable, and inspiring.
• Techno structural activities: This technique is used to improve work
technology and organization structure. It is intended to help employees evaluate
themselves and to make appropriate changes in task design, work methods, and
organization structure.
• Skill development: This technique is used to help employees identify their
shortcomings and overcome their deficiencies. It is used to improve performance
in areas such as delegation, problem solving conflict resolution, and leading.
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Evaluation: Since organizational development is directed towards long-term
change, organizational development programs have to be monitored on a regular
basis. An accurate evaluation of organizational development interventions is
dependent on the accurate diagnosis of the current situation and the clear
identification of the desired results.
7.3.4 - Benefits of Organizational Development
Could your business or organization benefit from high efficiency and
productivity? Are you working geared towards improving team effectiveness,
customer service and team quality? Well, organizational development is designed
to help you improve on these areas, through performance improvement techniques.
1. Environmental impact
Organizational development aims to create job satisfaction, which is equals life
satisfaction. We all know that the workplace environment plays a role on how we
execute our set of responsibilities. In the same way that employment is important
for the employees, job satisfaction directly influences life satisfaction as well.
2. Reduces absenteeism
According to recent findings, satisfied employees tend to be present often. Some
cases of absenteeism might be due to medical reasons. However, organizational
development helps to predict involuntary absenteeism like surgery, and is done
away with through physical exams.
3. Improves quality and productivity
The major benefit of organizational development is that it helps improve
productivity, as well as quality. Improving quality means your business has a