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UNDERSTANDING ORGANIZATION : STRUCTURE AND CULTURE TYPES OF ORGANIZATION STRUCTURE ADVANTAGES AND DISADVANTAGES ORGANIZATION CULTURE
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Nov 06, 2015

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Lecture -2
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UNDERSTANDING ORGANIZATION : STRUCTURE AND CULTURE

UNDERSTANDING ORGANIZATION : STRUCTURE AND CULTURETYPES OF ORGANIZATION STRUCTUREADVANTAGES AND DISADVANTAGESORGANIZATION CULTURETYPES OF ORGANIZATION STRUCTURETRADITIONAL FUNCTIONAL ORGANIZATIONDEDICATED PROJECT TEAMSMATRIX STRUCTURETRADITIONAL FUNCTIONAL ORGANIZATION STRUCTUREORGANIZING PROJECTS WITHIN THE EXISTING FUNCTIONAL HIERARCHYDIFFERENT SEGMENTS OF PROJECTS ARE DELEGATED TO RESPECTIVE FUNCTIONAL UNITSCOORDINATION THROUGH GENERAL MANAGEMENT CHANNELSBASED ON THE NATURE OF PROJECT, ONE FUNCTIONAL AREA TAKES THE LEAD ROLEADVANTAGESNO CHANGE: PROJECTS ARE COMPLETED WITHIN THE BASIC FUNCTIONAL STRUCTURE OF THE PARENT ORGANIZATION WITHOUT ANY CHANGE IN DESIGN AND OPERATION FLEXIBILITY: FLEXIBILITY IN THE USE OF STAFF. WORK CAN BE ASSIGNED TEMPORARILY. STAFF CAN BE SWITCHED AMONGST DIFFERENT PROJECTSIN-DEPTH EXPERTISE: IF SCOPE OF PROJECT IS NARROW, FUNCTIONAL AREAS CAN HAVE IN-DEPTH STUDY AND KNOWLEDGE

EASY POST-PROJECT TRANSITION: NORMAL CAREER PATHS WITHIN FUNCTIONAL DIVISIONS ARE MAINTAINED; SPECIALISTS CAN ADVANCE THEIR PROFESSIONAL GROWTH AND ADVANCEMENT

DISADVANTAGESLACK OF FOCUS: EACH FUNCTIONAL UNIT HAS ITS OWN CORE ROUTINE WORK AND TARGETS. PROJECT RESPONSIBILITES ARE PUSHED ASIDEPOOR INTEGRATION: FUNCTIONAL SPECIALISTS MAY BE CONCERNED ONLY WITH SEGMENT OF THE PROJECT AND NOT WITH WHAT IS BEST FOR THE TOTAL PROJECTSLOW: TAKES LONGER TIME TO COMPLETE THE PROJECTS, LACK OF HORIZONTAL, DIRECT COMMUNICATION AMONG FUNCTIONAL GROUPS CONTRIBUTES TO REWORKLACK OF OWNERSHIP: MOTIVATION IS WEAK. LACK OF OWNERSHIP DISCOURAGES STRONG COMMITMENT TO PROJECT-RELATED ACTIVITIESON-GOING PROJECTS AS DEDICATED TEAMSCREATION OF INDEPENDENT PROJECT TEAMSPROJECT MANAGER HEADS THE GROUP OF SPECIALISTS WHO WORK FULL TIME ON THE PROJECTTEAM IS PHYSICALLY SEPARATED FROM THE PARENT ORGANIZATION AND GIVEN MARCHING ORDERS TO COMPLETE THE PROJECTADVANTAGESSIMPLE: FUNCTIONAL ORGANIZATION REMAINS INTACT WITH PROJECT TEAM OPERATING INDEPENDENTLYFAST: PROJECTS TEND TO GET DONE MORE QUICKLY, RESPONSE TIME IS QUICKER AS DECISIONS ARE MADE WITHIN THE TEAM COHESIVE: HIGH LEVEL OF MOTIVATION AND COHESIVENESS EMERGE WITHIN PROJECT TEAM AS THEY HAVE COMMON GOAL AND PERSONAL RESPONSIBILITY IN COMPLETING THE PROJECT CROSS FUNCTIONAL INTERACTION: SPECIALISTS FROM DIFFERENT AREAS WORK TOGETHER TO OPTIMIZE THE PROJECT

DISADVANTAGESEXPENSIVE: DUPLICATION OF EFFORTS AND LOSS OF ECONOMIES OF SCALEINTERNAL STRIFE: DEDICATED PROJECT TEAMS TAKE ON ENTITY OF THEIR OWN AND A DISEASE KNOWN AS PROJECTITIS (WE-THEY SYNDORME)LIMITED TECHNOLOGICAL EXPERTISE: CREATING SELF- CONTAINED TEAMS INHIBITS MAXIMUM TECHNOLOGICAL EXPERTISEDIFFICULT POST-PROJECT TRANSITION: ASSIGNING FULL-TIME PERSONNEL TO A PROJECT CREATES THE DILEMMA OF WHAT TO DO WITH PERSONNEL WHEN THE PROJECT IS COMPLETEDORGANIZING PROJECTS WITHIN A MATRIX ORGANIZATIONHYBRID ORGANIZATIONAL FORM IN WHICH A HORIZONTAL PROJECT MANAGEMENT IS OVERLAID ON THE NORMAL FUNCTIONAL HIERARCHYTWO CHAIN OF COMMANDS:FUNCTIONAL LINESPROJECT LINESPROJECT PARTICIPANTS REPORT TO BOTH FUNCTIONAL AND PROJECT MANAGERSADVANTAGESOPTIMAL UTILIZATION OF RESOURCES BY HAVING INDIVIDUALS WORK ON MULTIPLE PROJECTS AS WELL AS CAPABLE OF PERFORMING NORMAL FUNCTIONAL DUTIESACHIEVE GREATER INTEGRATION BY CREATING AND LEGITIMIZING THE AUTHORITY OF A PROJECT MANAGERDIFFERENT MATRIX FORMSWEAK MATRIX: BALANCE OF AUTHORITY STRONGLY FAVOURS THE FUNCTIONAL MANAGERSBALANCED MATRIX: TRADITIONAL MATRIX ARRANGEMENTSTRONG MATRIX: BALANCE OF AUTHORITY STRONGLY FAVOURS PROJECT MANAGERSWEAK MATRIXFUNCTIONAL MANAGERS ARE RESPONSIBLE FOR MANAGING THEIR SEGMENT OF THE PROJECTPROJECT MANAGER ACTS AS A STAFF ASSISTANT WHO DRAWS THE SCHEDULES AND CHECKLISTS, COLLECTS INFORMATIONON STATUS OF WORK AND FACILITATES PROJECT COMPLETIONFUNCTIONAL MANAGER CALL MOST OF THE SHOTS AND DECIDE WHO DOES WHAT AND WHEN THE WORK IS COMPLETEDLIKELY TO IMPROVE TECHNICAL QUALITY AS WELL AS PROVIDE BETTER SYSTEM FOR MANAGING CONFLICT ACROSS PROJECTSFUNCTIONAL CONTROL IS OFTEN MAINTAINED AT THE EXPENSE OF POOR PROJECT INTEGRATIONBALANCED MATRIXPROJECT MANAGER IS RESPONSIBLE FOR DEFINING WHAT NEEDS TO BE ACCOMPLISHEDESTABLISHES THE OVERALL PLAN FOR COMPLETING THE PROJECTINTEGRATES THE CONTRIBUTION OF DIFFERENT DISCIPLINESSETS SCHEDULES AND MONITORS PROGRESSFUNCTIONAL MANAGERS ARE CONCERNED WITH HOW IT WILL BE ACCOMPLISHEDASSIGNING PERSONNEL AND EXECUTING THEIR SEGMENT OF THE PROJECT ACCORDING TO STANDARDS AND SCHEDULES SET BY THE PROJECT MANAGER

STRONG MATRIXCREATE A FEEL OF A PROJECT TEAM WITHIN THE MATRIX ENVIRONMENTPROJECT MANAGER CONTROLS MOST ASPECTS OF THE PROJECT INCLUDING SCOPE TRADE-OFFS AND ASSIGNMENT OF FUNCTIONAL PERSONNELPROJECT MANAGER CONTROLS WHEN AND WHAT SPECIALISTS DO AND HAS FINAL SAY ON THE MAJOR PROJECT DECISIONSFUNCTIONAL MANAGER IS CONSULTED ON A NEED BASISLIKELY TO ENHANCE PROJECT IINTEGRATION DIMINSH INTERNAL POWER STRUGGLESIMPROVE CONTROL OF PROJECT ACTIVITIES AND COSTSTECHNICAL QUALITY MAY SUFFERSTRENGTHS OF MATRIX MANAGEMENTEFFICIENT: RESOURCES CAN BE SHARED ACROSS MULTIPLE PROJECTSSTRONG PROJECT FOCUS: DESIGNATED PROJECT MANAGER RESPONSIBLE FOR COORDINATING AND INTEGRATING CONTRIBUTIONS OF DIFFERENT UNITSEASIER POST-PROJECT TRANSITION: SPECIALISTS MAINTAIN TIES WITH FUNCTIONAL GROUPS SO THEY CAN RETURN AFTER PROJECT COMPLETIONFLEXIBLE: FLIXIBLE UTILIZATION OF RESOURCES AND EXPERTISE WITHIN THE FIRMWEAKNESSDYSFUNCTIONAL CONFLICT: CONFLICT BETWEEN PROJECT AND FUNCTIONAL MANAGERSINFIGHTING: COMPETITION FOR SCARCE RESOURCESSTRESSFUL: PROJECT PARTICIPANTS HAVE TWO BOSSES: ONE PROJECT MANAGER AND ANOTHER FUNCTIONAL MANAGERSLOW: DECISION MAKING IS SLOW ESPECIALLY IN BALANCED MATRIXRIGHT PROJECT MANAGEMENT STRUCTURE : FACTORSORGANIZATION CONSIDERATIONS:IF 75% OF WORK INVOLVES PROJECTS, THEN ORGANIZATION SHOULD CONSIDER A FULLY PROJECTIZED STRUCTUREIF ORGANIZATION HAS BOTH STANDARD PRODUCTS AND PROJECTS, THEN MATRIX ORGANIZATION WILL BE APPROPRIATEIF AN ORGANIZATION HAS VERY FEW PROJECTS, THEN LESS FORMAL ARRANGEMENT IS REQUIRED, DEDICATED TEAMS COULD BE CREATED ON AN AS - NEEDED BASISRESOURCE AVAILABILITYIF RESOURCES NEED TO BE SHARED AMONGST MULTIPLE PROJECTS THEN MATRIX TYPE IS PREFERREDIF CRITICAL PERSONNEL ON INDIVIDUAL PROJECTS CANNOT BE AFFORDED THEN MATRIX TYPE IS PREFERREDWHEN RESOURCES ARE NOT AVAILABLE INTERNALLY THEN CREATE A DEDICATED TEAM BUT OUTSOURCE PROJECT WORK

TRANSITION FROM FUNCTIONAL TO PROJECT MATRIX ORGN. BEGIN WITH A WEAK FUNCTIONAL MATRIXMANY ORGANIZATIONS CREATE PROJECT MANAGEMENT OFFICES TO SUPPORT PROJECT MANAGEMENT EFFORTSPROJECT CONSIDERATIONSSIZE OF PROJECTSTRATEGIC IMPORTANCENOVELTY AND NEED FOR INNOVATIONNEED FOR INTEGRATION (No. OF DEPARTMENTS)ENVIRONMENTAL COMPLEXITYBUDGET AND TIME CONSTRAINTSSTABILITY OF RESOURCE REQUIREMENTSHIGHER THE LEVELS OF THESE FACTORS, MORE AUTONOMY AND AUTHORITY THE PROJECT MANAGER AND TEAM NEED TO BE SUCCESSFUL DEDICATED PROJECT TEAMS SHOULD BE USED FOR URGENT PROJECTS IN WHICH THE NATURE OF THE WORK REQUIRES PEOPLE WORKING STEADILY FROM BEGINNING TO ENDCREATION OF FLEXIBLE MANAGEMENT SYSTEMS THAT ORGANIZES PROJECT ACCORDING TO REQUIREMENTS

PROJECT TYPESADVANCED DEVELOPMENT PROJECT: HIGH RISK PROJECT: INVOLVING CREATION OF A BREAKTHROUGH PRODUCT OR PROCESSPLATFORM PROJECT: MEDIUM RISK PROJECT: INVOLVING SYSTEM UPGRADATION THAT YIELD NEW PRODUCTS AND PROCESSESINCREMENTAL PROJECT: LOW RISK PROJECT: INVOLVE MINOR ADJUSTMENTS IN EXISTING PRODUCTS AND PROCESSESORGANIZATION CULTUREREFERS TO A SYSTEM OF SHARED NORMS, BELIEFS, VALUES AND ASSUMPTIONS WHICH BINDS PEOPLE TOGETHER THEREBY CREATING SHARED MEANINGSCULTURE RELECTS THE PERSONALITY OF THE ORGANIZATION AND SIMILAR TO AN INDIVIDUALS PERSONALITYCHARACTERISTICSMEMBERS IDENTITY: THE DEGREE TO WHICH EMPLOYEES IDENTIFY WITH THE ORGANIZATION AS A WHOLE RATHER FROM THEIR TYPE OF FIELD OR PROFESSIONAL EXPERTISETEAM EMPHASIS: THE DEGREE TO WHICH WORK ACTIVITIES ARE ORGANIZED AROUND GROUPS RATHER THAN INDIVIDUALSMANAGEMENT FOCUS: THE DEGREE TO WHICH MANAGEMENT DECISIONS TAKE INTO ACCOUNT THE EFFECTS OF OUTCOME IN PEOPLE WITHIN THE ORGANIZATION

UNIT INTEGRATION: THE DEGREE TO WHICH UNITS WITHIN ORGANIZATION ARE ENCOURAGED TO OPERATE IN A COORDINATED OR INTERDEPENDENT MANNERCONTROL: THE DEGREE TO WHICH RULES, POLICIES AND DIRECT SUPERVISION ARE USED TO OVERSEE AND CONTROL EMPLOYEE BEHAVIOURRISK TOLERANCE: A DEGREE TO WHICH EMPLOYEES ARE ENCOURAGED TO BE AGGRESSIVE, INNOVATIVE, AND RISK SEEKINGREWARD CRITERIA: THE DEGREE TO WHICH REWARDS SUCH AS PROMOTION AND SALARY INCREASES ARE ALLOCATED ACCORDING TO EMPLOYEE PERFORMANCE RATHER THAN SENIORITY, FAVOURITISM OR OTHER NON-PERFORMANCE FACTORSCONFLICT TOLERANCE: THE DEGREE TO WHICH EMPLOYEES ARE ENCOURAGED TO AIR CONFLICTS AND CRITICISMS OPENLYMEANS VERSUS END ORIENTATION: THE DEGREE TO WHICH MANAGEMENT FOCUSES ON OUTCOMES RATHER THAN ON TECHNIQUES AND PROCESSES USED TO ACHIEVE THE RESULTSOPEN SYSTEM FOCUS: THE DEGREE TO WHICH THE ORGN. MONITORS AND RESPONDS TO CHANGES IN THE EXTERNAL ENVIRONMENTIDENTIFYING CULTURAL CHARACTERISTICSSTUDY THE PHYSICAL CHARACTERISTICS OF THE ORGANIZATIONEXTERNAL ARCHITECTURE, OFFICES, UNIFORM OF EMPLOYEESREAD ABOUT THE ORGANIZATIONANNUAL REPORT, MISSION STATEMENTS, PRESS RELEASES, INTERNAL NEWS LETTERSCONCERN FOR PEOPLE, CONCERN FOR RESULTS AND THE BOTTOM LINEOBESERVE HOW PEOPLE INTERACT WITHIN THE ORGANIZATIONPACE, RITUALS, VALUES, BELIEFSMEETINGS, CONVERSATIONINTERPRET STORIES AND FOLKLORE SURROUNDING THE ORGANIZATION