Organizations, andOrganizational Structure

and System

By:

It is not easy to grasp the whole idea of an “organization” because they are abstract

entities. Nevertheless, they are real and can be considered “alive”.

*Authors use metaphors to enhance the understanding of the concept.

ORGANIZATIONS

What is an Organization?

Organizations are collectives of parts that cannot accomplish their goals as effective if they operate

separately.

*It’s easier to understand why organizations existthan to precisely define what they are.

Classical Theory

Neoclassical Theory

Systems Theory

THREE THEORIES OF ORGANIZATIONS

- first few decades of 20th century

FOCUS:

form and structure of organizations

CLASSICAL THEORY

1.) A system of differentiated activities

2.) People

3.) Cooperation toward a goal

4.) Authority

* Superior-subordinate relationships

FOUR BASIC COMPONENTS OF ORGANIZATIONS

Four MajorStructural Principles

- Division of labor; organizations should be divided into units that perform similar tasks

-Work is broken down to provide areas of specialization

*Horizontal growth of organization

FUNCTIONAL PRINCIPLE

Organization:Xavier University

Unit 1:English Dept.

Unit 2:Psychology

Dept.

Unit 3:RS Dept.

-Refers to the chain of command that grows with increasing levels of authority

-Unity of command- each subordinate should be

accountable to only one superior*Vertical growth of organization

SCALAR PRINCIPLE

Organization:Xavier University

Unit 1:English Dept.

Department Chairperson

Faculty

Unit 2:Psychology

Dept.

DepartmentChairperson

Faculty

Unit 3:Philosophy

Dept.

Department Chairperson

Faculty

Unit 3:RS Dept.

Department Chairperson

Faculty

Line functions- primarily responsible for meeting

the major goals of the organization* production departmentStaff functions

- support the line’s activities but are regarded as subsidiary in overall

importance* personnel and quality control

LINE/ STAFF PRINCIPLE

-the number of subordinates a manager is responsible for supervising

-May be “small” span or “large” span

“Small” span-> flat organization* 1 manager: 3 subordinates

“Large” span-> tall organization* 1 manager: 10 subordinates

SPAN-OF-CONTROL PRINCIPLE

Manager

Staff 1

Staff 2

Staff 3

Staff 4

Staff 5

Staff 6

Staff 7

Staff 8

“LARGE” SPAN;FLAT ORGANIZATION

“SMALL” SPAN;TALL ORGANIZATION

OrganizationManager

Manager

Manager

Manager

There is really no theory; but rather a recognition of psychological and behavioral issues that question the

rigidity with which the classical theory originality stated.

NEOCLASSICAL THEORY

Division of labor depersonalizes the activities of the units, where a sense of alienation develops from highly repetitive work, that the individual

finds little meaning in their activities.

*less rigid division of labor, more humanistic work

ISSUES

Individuals are influenced by interpersonal activities that extend well beyond the prescribed formal

organizational structure.

* Many sources operating in an organization influence the

individual.

“Systems approach”

Views an organization as existing in an interdependent relationship with its

environment, where all parts affect the other parts and their interrelatedness make up the

“system”.

SYSTEMS THEORY

1. Individuals

- personalities, abilities, attitudes

2. Formal Organization- interrelated pattern of jobs

3. Small Groups- facilitates adaptability within the system

5 PARTS OF AN ORGANIZATIONAL SYSTEM

4. Status and Role- differences define the behavior of individuals within the system

5. Physical Setting- external physical environment and

degree of technology

5 PARTS OF AN ORGANIZATIONAL SYSTEM

Organization

Small Group

1

Small Group

3

Small Group

4

Small Group

2

Although the systems theory appears to be abstract, the systems perspective of

organizations allows us to understand phenomena of organizational life that earlier

theories would not permit.

ORGANIZATIONAL STRUCTURE

Mutual Adjustment – simple process of informal communication

Direct Supervision - one person takes responsibility for the work of others

Standardization of Work Process – standardize or specify work process

Standardization of Work Output – standardize or specify the product of the work to be performed

Standardization of Skills and Knowledge – specifying in advance the knowledge, skills ,

training required to perform work

COORDINATING MECHANISMS

Operating Core - employees responsible for conducting basic work

dutiesStrategic Apex - the “brain” of the

organizationMiddle line- mid-level bosses

Technostructure - employees who posses expertise that facilitates the overall operation of the organizationSupport Staff - provides services that

aides the basic mission of the organization

THE FIVE BASIC PARTS OF AN ORGANIZATION

Social System - the human components of a

work organization that influences the behavior of individuals and groups

-it has no formal structure apart from its functioning

-when a social system stops functioning , no identifiable structure

remains

COMPONENTS OF SOCIAL SYSTEM

ROLES - a set of expectations about appropriate behavior in a position

NORMS - a set of shared group expectations about appropriate behavior

CULTURE - the language, values, attitudes and beliefs and customs of an

organization

COMPONENTS OF SOCIAL SYSTEM

Observable Artifacts - artifacts are the surface level actions that can be observed from which some deeper meaning or interpretation can be drawn about the

organization.

e.g. legends, taboos and ceremonies

Espoused Values- beliefs or concepts that are especially endorsed by management.

e.g. “Safety is our top Priority” and “ We Respect the Opinions of our Employees”

Basic Assumptions- unobservable and are at the core of organization

THREE LAYERS OF CULTURE IN AN ORGANIZATION

THE END