Professional Documents
Culture Documents
Organization Structure
Formalization contd.
Organizations use formalization because of the benefits that accrue from regulating employees behavior. Standardizing behavior reduces variability. Formalization tends to be inversely related to level in the organization. Most popular techniques : Selection : Organizations do not choose employee at random. Procedure : To ensure standardization of work process. Policies : Provide greater leeway than rules do.
Core Dimension
Centralization : Most problematic of the three components. The term refers to the degree to which decision making is concentrated at a single point in the organization. A high concentration implies high centralization, whereas a low concentration indicates low centralization or what may be called decentralization.
Centralization contd.
Centralization can be described more specifically as the degree to which the formal authority to make discretionary choices is concentrated in an individual, unit, or level, thus permitting employees minimum output into their work. Centralization is concerned only with the formal structure not the informal organization. It looks at decision discretion.
Decentralization
It reduces the probability of information overload, facilitate rapid responses to new information, provides more detailed input into a decision, instills motivation, and represents a potential vehicle for training managers in developing good judgement.On the other hand, centralization adds a comprehensive perspective to decisions and can provide significant efficiencies.
Decentralization contd.
The balance between centralization and decentralization : There are choices about which decisions to decentralize & which to centralize. Choosing decision areas to delegate is frequently regarded as a problem of selecting the proper balance between centralization and decentralization. According to Koontz & ODonnell such a balance is the key to effective decentralization.
Organizational Design
Organizational Design
Introduction Definition Classical & Neoclassical Approaches : Contingency approach Mechanistic organization Organic organization Simple structure Machine bureaucracy Interorganizational Designs Technology as a factor in OD
Introduction
Organizing is a subject of the larger activity of managing. it is the process by which the structure of an organization is created & maintained. The word organization may be used to refer to the process of organizing, the structure that evolves out of this process and the processes/activities that take place within it. All activities involving two or more persons entails the formation of an organization.
Definition
Organization Design refers to the process of coordinating the structural elements of an organization in the most appropriate manner.
Based on W. Richard Scott, Theoretical Perspectives, in Marshall W. Meyer, ed., Environments & organizations
Types
1. The early approaches to organization theory in this century conceived of organizations as mechanical devises to achieve goals. Management could design formal relationships, rules, and the like but there were informal patterns of communication, status, norms, and friendships created to meet the social needs of organization members.
2.
Types contd.
3. Argued that properly aligning structure to its contingency variables would facilitate the achievement of the organizations goals. Conversely, implementation of the wrong structure could threaten the organizations survival. Political nature of the organizations. The outcome of the political struggles among coalitions within the organization for control.
4.
Developing Framework
Type 1 theorists : Known as classical school, models that would apply in all situations. Frederick Taylor & Scientific Management Henri Fayol & Principles of Organization : He proposed 14 principles that he argued were universally applicable & could be taught in schools and universities.
14 Principles
Division of Work Authority Discipline Unity of command Unity of direction Subordination of individual interest to the general interest 7. Remuneration 1. 2. 3. 4. 5. 6.
14 Principles contd.
8. Centralization 9. Scalar chain 10.Order 11.Equity 12.Stability of tenure of personnel 13.Initiatives 14.Esprit de corps. Promoting team spirit
EFFECT / IMPACT ON OB Positive Effects : 1) Hierarchy & Specialization, Productivity 2) Stability Negative Effects / Dysfunctions 1) Conflicts and differences 2) Distorted communication 3) Dull, gray, conditioned organization man. 4) Group Think 5) System of control & authority 6) No informal organizations 7) Bureaucratic Rules 8) Cannot assimilate influx of new techniques NO REAL WORLD ORGANIZATION EXACTLY FOLLOWS THE WEBER MODEL.
Innovation
Market Differentiation
To select the right Breadth Innovation range of products, services, customers & territory Breadth Stability Cost Control
High complexity; high formalization ; high centralization To produce standardized High formalization ;high centralization products efficiently
Organizational size The larger an organization becomes, the more complicated its structure. When an organization is small such as a single retail store, a two-person consulting firm, or a restaurant its structure can be simple. In reality, if the organization is very small, it may not even have a formal structure. Instead of following an organizational chart or specified job functions, individuals simply perform tasks based on their likes, dislikes, ability, and/or need. Rules and guidelines are not prevalent and may exist only to provide the parameters within which organizational members can make decisions. Small organizations are very often organic systems.
As an organization grows, however, it becomes increasingly difficult to manage without more formal work assignments and some delegation of authority. Therefore, large organizations develop formal structures. Tasks are highly specialized, and detailed rules and guidelines dictate work procedures. Interorganizational communication flows primarily from superior to subordinate, and hierarchical relationships serve as the foundation for authority, responsibility, and control. The type of structure that develops will be one that provides the organization with the ability to operate effectively. That's one reason larger organizations are often mechanisticmechanistic systems are usually designed to maximize specialization and improve efficiency.
Organization life cycle Organizations, like humans, tend to progress through stages known as a life cycle. Like humans, most organizations go through the following four stages: birth, youth, midlife, and maturity. Each stage has characteristics that have implications for the structure of the firm. Birth: In the birth state, a firm is just beginning. An organization in the birth stage does not yet have a formal structure. In a young organization, there is not much delegation of authority. The founder usually calls the shots. Youth: In this phase, the organization is trying to grow. The emphasis in this stage is on becoming larger. The company shifts its attention from the wishes of the founder to the wishes of the customer. The organization becomes more organic in structure during this phase. It is during this phase that the formal structure is designed, and some delegation of authority occurs. Midlife: This phase occurs when the organization has achieved a high level of success. An organization in midlife is larger, with a more complex and increasingly formal structure. More levels appear in the chain of command, and the founder may have difficulty remaining in control. As the organization becomes older, it may also become more mechanistic in structure. Maturity: Once a firm has reached the maturity phase, it tends to become less innovative, less interested in expanding, and more interested in maintaining itself in a stable, secure environment. The emphasis is on improving efficiency and profitability. However, in an attempt to improve efficiency and profitability, the firm often tends to become less innovative. Stale products result in sales declines and reduced profitability. Organizations in this stage are slowly dying. However, maturity is not an inevitable stage. Firms experiencing the decline of maturity may institute the changes necessary to revitalize. Although an organization may proceed sequentially through all four stages, it does not have to. An organization may skip a phase, or it may cycle back to an earlier phase. An organization may even try to change its position in the life cycle by changing its structure.As the life-cycle concept implies, a relationship exists between an organization's size and age. As organizations age, they tend to get larger; thus, the structural changes a firm experiences as it gets larger and the changes it experiences as it progresses through the life cycle are parallel. Therefore, the older the organization and the larger the organization, the greater its need for more structure, more specialization of tasks, and more rules. As a result, the older and larger the organization becomes, the greater the likelihood that it will move from an organic structure to a mechanistic structure.
Strategy How an organization is going to position itself in the market in terms of its product is considered its strategy. A company may decide to be always the first on the market with the newest and best product (differentiation strategy), or it may decide that it will produce a product already on the market more efficiently and more cost effectively (cost-leadership strategy). Each of these strategies requires a structure that helps the organization reach its objectives. In other words, the structure must fit the strategy. Companies that want to be the first on the market with the newest and best product probably are organic, because organic structures permit organizations to respond quickly to changes. Companies that elect to produce the same products more efficiently and effectively will probably be mechanistic.
Environment The environment is the world in which the organization operates, and includes conditions that influence the organization such as economic, social-cultural, legal-political, technological, and natural environment conditions. Environments are often described as either stable or dynamic. In a stable environment, the customers' desires are well understood and probably will remain consistent for a relatively long time. Examples of organizations that face relatively stable environments include manufacturers of staple items such as detergent, cleaning supplies, and paper products. In a dynamic environment, the customers' desires are continuously changingthe opposite of a stable environment. This condition is often thought of as turbulent. In addition, the technology that a company uses while in this environment may need to be continuously improved and updated. An example of an industry functioning in a dynamic environment is electronics. Technology changes create competitive pressures for all electronics industries, because as technology changes, so do the desires of consumers. In general, organizations that operate in stable external environments find mechanistic structures to be advantageous. This system provides a level of efficiency that enhances the long-term performances of organizations that enjoy relatively stable operating environments. In contrast, organizations that operate in volatile and frequently changing environments are more likely to find that an organic structure provides the greatest benefits. This structure allows the organization to respond to environment change more proactively.
Technology Advances in technology are the most frequent cause of change in organizations since they generally result in greater efficiency and lower costs for the firm. Technology is the way tasks are accomplished using tools, equipment, techniques, and human know-how. In the early 1960s, Joan Woodward found that the right combination of structure and technology were critical to organizational success. She conducted a study of technology and structure in more than 100 English manufacturing firms, which she classified into three categories of core-manufacturing technology: Small-batch production is used to manufacture a variety of custom, made-to-order goods. Each item is made somewhat differently to meet a customer's specifications. A print shop is an example of a business that uses small-batch production. Mass production is used to create a large number of uniform goods in an assembly-line system. Workers are highly dependent on one another, as the product passes from stage to stage until completion. Equipment may be sophisticated, and workers often follow detailed instructions while performing simplified jobs. A company that bottles soda pop is an example of an organization that utilizes mass production. Organizations using continuous-process production create goods by continuously feeding raw materials, such as liquid, solids, and gases, through a highly automated system. Such systems are equipment intensive, but can often be operated by a relatively small labour force. Classic examples are automated chemical plants and oil refineries.
Organizational Culture
Organizational Culture
Definition: A common perception held by the Organizations members; a system of shared meaning. The essence of culture: Innovation & risk taking Attention to detail Outcome Orientation People orientation Team orientation Aggressiveness Stability
1. 2. 3. 4. 5. 6. 7.
CULTURAL PHILOSOPHY
CULTURE-SPECIFIC APPROACH CULTURECULTURE-GENERAL APPROACH CULTURE-
The culture-specific approach gives definite information about individual cultures. Culture-general believes that one should first have an understanding and awareness of cultural issues before specific information is given. This is to reduce the chance of stereotyping.
Cultural Jeopardy
Prejudice Ethnocentrism Stereotype Sexism Multiculturalism Cultural Sensitivity Ethnicity Racism Race Internalized Oppression Discrimination Heterosexism Culture
The ability to be open to learning about and accepting of different cultural groups.
Cultural Sensitivity
Prejudice Ethnocentrism Stereotype Sexism Multiculturalism Cultural Sensitivity Ethnicity Racism Race Internalized Oppression Discrimination Heterosexism Culture
A belief that racial differences produce an inherent superiority of a particular race. Racism
Prejudice Ethnocentrism Stereotype Sexism Multiculturalism Cultural Sensitivity Ethnicity Racism Race Internalized Oppression Discrimination Heterosexism Culture
Prejudice Ethnocentrism Stereotype Sexism Multiculturalism Cultural Sensitivity Ethnicity Racism Race Internalized Oppression Discrimination Heterosexism Culture
A subconscious belief in negative stereotypes about ones group that results in an attempt to fulfill those stereotypes and a projection of those stereotypes onto other members of that group.
Internalized oppression
Prejudice Ethnocentrism Stereotype Sexism Multiculturalism Cultural Sensitivity Ethnicity Racism Race Internalized Oppression Discrimination Heterosexism Culture
A belief in the inherent superiority of one pattern of loving over all and thereby the right to dominance.
Heterosexism
Prejudice Ethnocentrism Stereotype Sexism Multiculturalism Cultural Sensitivity Ethnicity Racism Race Internalized Oppression Discrimination Heterosexism Culture
Discrimination
Prejudice Ethnocentrism Stereotype Sexism Multiculturalism Cultural Sensitivity Ethnicity Racism Race Internalized Oppression Discrimination Heterosexism Culture
The recognition and acknowledgement that society is pluralistic. In addition to the dominant cultural, there exists many other cultures based around ethnicity, sexual orientation, geography, religion, gender, and class.
Multiculturalism
Prejudice Ethnocentrism Stereotype Sexism Multiculturalism Cultural Sensitivity Ethnicity Racism Race Internalized Oppression Discrimination Heterosexism Culture
An attitude, opinion, or feeling formed without adequate prior knowledge, thought, or reason.
Prejudice
Prejudice Ethnocentrism Stereotype Sexism Multiculturalism Cultural Sensitivity Ethnicity Racism Race Internalized Oppression Discrimination Heterosexism Culture
The belief in the inherent superiority of one sex (gender) over the other and thereby the right to dominance.
Sexism
Prejudice Ethnocentrism Stereotype Sexism Multiculturalism Cultural Sensitivity Ethnicity Racism Race Internalized Oppression Discrimination Heterosexism Culture
A body of learned beliefs, traditions, principles, and guides for behavior that are shared among members of a particular group.
Culture
Prejudice Ethnocentrism Stereotype Sexism Multiculturalism Cultural Sensitivity Ethnicity Racism Race Internalized Oppression Discrimination Heterosexism Culture
To judge other cultures by the standards of ones own, and beyond that, to see ones own standards as the true universal and the other culture in a negative way.
Ethnocentrism
Prejudice Ethnocentrism Stereotype Sexism Multiculturalism Cultural Sensitivity Ethnicity Racism Race Internalized Oppression Discrimination Heterosexism Culture
As a biological concept, it defines groups of people based on a set of genetically transmitted characteristics.
race
Prejudice Ethnocentrism Stereotype Sexism Multiculturalism Cultural Sensitivity Ethnicity Racism Race Internalized Oppression Discrimination Heterosexism Culture
Sharing a strong sense of identity with a particular religious, racial, or national group.
Ethnicity
Parental Status
Education
Religious Beliefs
Loden and Rosener
CULTURAL SENSITIVITY
Leads to
Cultural Competency
Cultural Proficiency
Cultural Destructiveness
SAMHSA
Cultural Incapacity occurs when agencies do not intentionally seek to be culturally destructive, but rather have no capacity to help people from other cultures. This system remains extremely biased, and believes in the superiority of the dominant group. It assumes a paternal posture towards lesser groups.
Cultural Pre-competence implies movement towards reaching out to other cultures. The pre-competent agency realizes its weaknesses in working with people of other cultures and attempts to improve that relationship with a specific population.
Cultural Proficiency is the culmination point on the continuum is characterized by holding culture in high esteem. These agencies actively seek to hire a diverse workforce.