Presented and Developed by:

Sandeep Singh Sikerwar

Associate Professor

Maldives Business School,

Mal, Maldives

Compare and contrast different organizational structures and culture

Explain how the relationship between an organization's structure can

impact on the performance of the business

Discuss the factors which influence individual behavior at work

Arranging the activities of the

enterprise in such a way that they

systematically contribute to the

enterprises goals.

The process by which managersestablish working relationshipsamong employees to achievegoals.

A system of co-operative human activities.(Chester I. Bernard, 1938)

It is a complicated system of interactions between people working

at various levels in that organization and reacting with the social,

economic, cultural, political, and competitive systems which

surround it.(Hecht,1980)

An organized or cohesive group of people working together

to achieve commonly agreed goals and objectives. . . . The

basic objectives of most commercial organizations are to

create a product or service that customers will buy, thus

creating profit.(McGovern, 1999)

Fo

rma

l st

ruc

ture Goal-oriented entity

Structure of jobs and positions.

Clearly defined functions, responsibilities and authorities.

Info

rma

l str

uc

ture Set of people get

together and starts interacting on a long term basis.

More than just a collection of people.

Internal social structure based on dominance and friendship relations.

Size Task Staff Environment

conditionsAge

Culture and management

style

A step-by-step methodology which identifies dysfunctional

aspects of work flow, procedures, structures and systems,realigns them to fit current business realities/goals and then

develops plans to implement the new changes.

(Dr. Roger K. Allen)

Determine design or

organizational structure

Environment

(Centralize Vs.

Decentralize)

Strategy Technology

Human resources

Flat or tall structures

Span of control

Chain of command

Hierarchy

Delegation Empowerment

Functional structure

Product based structure

Area based structure

Matrix based structure

Team-based structure

Multi-divisional structures

Involves grouping together people who perform similar tasks or use similar

technology or materials.

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Specialisation each department focuses on its own work

Accountability someone is responsible for the section

Clarity know your and others roles

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s Closed communication could lead to lack of focus

Departments can become resistant to change

Coordination may take too long

Gap between top and bottom

Group activities on the basis of products or product lines.

Functional departmentation remains same.

Divisional manager is given responsibility for the product or product line, with

authority over personnel of different functions.

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Clear focus on market segment helps meet customers needs

Positive competition between divisions

Better control as each division can act as separate profit centre

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s Duplication of functions (e.g. different sales force for each division)

Negative effects of competition

Lack of central control over each separate division

Structure of geographical, regional or territorial departmentation.

Some authority is retained at Head Office, but day to day operations are handled on

a territorial basis.

Takes place when an enterprise is large and has number of divisions located in

different areas.

Enterprises divide their activities into zones or divisions.

Independent profit earning centers and work under local environment.

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Serve local needs better

Positive competition

More effective communication between firm and local customers D

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es Conflict

between local and central management

Duplication of resources and functions

Crosses functional and product/customer/project organization.

Authority is shared between the product managers and the heads of the functional

departments.

Functional departmental heads:

Responsible for the management of their own activities and staff.

Product managers:

those activities and staff where they are involved in the production, selling, distributing of

their particular product.

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Resources can be used efficiently.

Products and projects are formally coordinated across functional departments.

Information flows both across and up through the organization.

Sharing of information and can speed up decision making. D

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es Members may have

divided loyalties.

May not be a clear line of accountability for project teams.

Difficult to co-ordinate

Takes time for team member to get accustomed to structure.

Team members may neglect their functional responsibilities

Group of individuals brought together from more than one functional area.

Work on a problem or process that requires the knowledge, training and

capabilities across the areas.

Emphasizes multi-skilling and multiple competencies

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Eliminates barriers between operating departments

Improved morale due to cross-functional interaction

Improved quality and speed of decision-making

Increased enthusiasm for work D

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es Conflicting loyalties

among members.

Excessive time spent in meetings.

Effective use of time depends on quality of interpersonal relations, group dynamics, and team management.

Each distinct product line, market or business unit is placed in its own self-

contained unit or division.

Each division has within it several functional sub-divisions for production,

marketing and so on.

Headquarters staff monitors divisional activities and exercises financial control

over each of them.

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Better financial and strategic control decision-making responsibility is retained at the headquarters' level

Growth is easier new units do not have to be integrated across organization

Stronger pursuit of internal efficiency performance of individual units is readily measurable. D

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es Bureaucratic costs

Difficulty establishing authority relationship

Communication problems

Competition for resources

Look at the what am I? scenarios given

below. Guess the job in question for each

one.

Who am I?

I am responsible for a whole department. I

report to the managing director. I am

responsible for informing customers about the

product. I also ensure that we know all about

the needs and wants of customers.

Who am I?

I do not tell anyone what to do. I work in a

noisy environment. I work with my hands. My

work does not require much training. I work

with other many other people we all carry out

one small part of whole job.

Who am I?

I work in an office. I support my boss by

organising her workload and carrying out

routine jobs such as writing letters, answering

the phone and arranging meetings.

is the collective self-image and style of the organization; its

shared values and beliefs, norms and symbols.

(BPP learning, 2010)

Economic conditions

Nature of business and its tasks

Leadership styles

Policies and practices

Structure

Characteristics of work force

Basic assumptions

Overt beliefs Visible artifacts

Symbols Rules, norms, ethical codes

and values

Rituals, rites, ceremonies and

celebrations

ZEUS is the god representing.

Controlled by key, central figures.

Characteristics:

Role, not personalities

Adaptable and informal

Small size

Good personal relations

Expressed as WEB, boss in center and surrounded by inmates and influence.

Power culture

Apollo is the god of the role culture.

Characteristics:

Roles, not responsibilities.

Not entrepreneurial

Stability

Slow to change

Expressed as Greek temple.

Role culture

Athena is the goddess of the task culture.

Management, succession of projects or solving problems.

Characteristics:

Team based

Get the job done

Expertise

Results-oriented

Costly

Job satisfaction

Expressed as Net.

Task culture

Dionysus is the god of the person or existential culture.

Purpose is to serve the interests of the individuals within it.

Depends on the talents of the individuals.

Management is derived from consent of the managed.

Person culture

Power culture Role culture

Task culture Person culture

Affects motivation and satisfaction of employees

Can aid the adaptability of the organization

Affects the image of the organization.

Promoting a new sense of corporate mission, or a new image. Slogans, mottos

Leadership

Reward system

Recruitment and selection policies

Visible emblems of the culture