Organisational Structure Culture.ppt

8/10/2019 Organisational Structure Culture.ppt

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Organisational Structure & Culture

Tutor: Agi Oldfield

Copyri ght Agi Oldf ield 2014

ORGANIZATIONS & BEHAVIOUR


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What is an organization?How would you define it?

What is your experience of organizations?Importance of understanding howorganizations operate

The context in which organizations operate What and how do people contribute?How can we manage these elements?


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WHAT DO YOU THINK WILL BE THE NATUREOF WORK IN THE NEXT 5-10 YEARS?

WHAT WILL BE THE MOST SIGNIFICANTCHANGE FROM TODAYS WORKENVIRONMENT?

WHAT WILL BE THE MOST IMPORTANT SKILLREQUIRED IN MANAGING THE WORKFORCE?(in groups 10 minutes and present)


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External environment Globalization/Multinationals

Management of diversity Removal of trade barriers Increased competition Changing nature of work Multicultural workforce Global Financial Crisis


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Internal environment Culture Strategy

Structure Systems Nature of business Change

Technology Staffing/People


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Organizations do not exist in isolationImportance of peopleUnderstanding what and how people contribute to the

organizationsPotential problems caused by individuals and theirinteractionsImportance of team-work

Importance of competence


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Changes in organizations External/internal

Cultural flexibilityChanges in Careers and individualexpectations

Changing nature of work Impact of technology on workingenvironment/organizations


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Organisational Structure & Culture Formal system of tasks & reporting linesDivision of tasks & responsibilities5 main elements: (Childs, 1984):Specialization vs greater scope

Hierarchy vs flatGrouping: function or productIntegrationControl: centralization vs delegation


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Types of Structure for large organisations:Organised by Function Key functions are centralised and manage all the products Efficient as fewer functions are needed Not d3edicated to any one product

Organised by Product Dedicated teams Not as ecenomic as more functions are required

Organised by Geogrpahy

Central key role Each division or Strategic Business Unit (SBU) has functionsrepeated

http://www.youtube.com/watch?v=5BVVy0MgM8k
http://www.youtube.com/watch?v=5BVVy0MgM8khttp://www.youtube.com/watch?v=5BVVy0MgM8k


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Organisational Structure & Culture Dimensions:

HierarchyLevels of operations & ManagementDivision of LabourStrategy & Structure inter-relatedDefines roles & ResponsibilitiesChannels of CommunicationLines of reporting and accountabilitiesSmall organisations do not need the same complexity of structure

WHY???


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Structure

People

TechnologyObjectives

Leavitt Diamond


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Organisational Structure & Culture Two major types:

MECHANISTIC/BUREAUCRATIC Large organizations More levels of hierarchy Division of labour Stable environment Slow to respond Volume of activities

ORGANIC/FLEXIBLE Fewer layers

Faster communication Quicker to respond to uncertain environments Devolved decision making


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Organizational Chart

Horizontal/vertical decision making authorityStatic does not show dynamics/workflowFormal organization - Overt Mission Policies & procedures

Organizational chart reporting/responsibilitiesInformal organization Personal relationships Informal leaders/influencers Personal motivations/agendas Emotions Personalities Grapevine Politics

l & l


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Organisational Structure & Culture BY PRODUCT


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CENTRALIZATION

- More economic

DECENTRALIZATION

Delegation of authority

Decisions at managerial levels

Greater autonomy

Horizontal and vertical patterns of communications


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Organisational Structure & Culture HIERARCHICAL VS DELAYERING/FLAT ORGANIZATIONHIERARCHICAL Problem of optimum levels Communication vertical takes time Vertical Stable environment

FLAT ORGANIZATION Horizontal communication HORIZONTAL HIERARCHY?

Flexible Problems?


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MATRIX ORGANISATIONS

PROJECTS

/PRODUCTS

MANUFACTURING MARKETING ENGINEERING FINANCE

PROJECT/

PRODUCT A

PROJECT/

PRODUCT B

PROJECT/PRODUCT C

PROJECT/

PRODUCT D

PROJECT/PRODUCT E


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Organisational Structure & Culture MATRIX ORGANIZATIONS

Need to respond to rapid change

Effective in utilizing specialised staff/equipment

Share resources

Specialist assigned to projects/products

Dual authority system

Personnel reporting to 2 managers


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SPAN OF CONTROL

Number of individuals reporting Number possible to control Number of possible relationships Intensity and frequency of interactions Nature of interactions Greater ambiguity greater interaction

Degree of specialisation


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What is Culture ?Shared meaning as basis for actionCollective & Individual source of understandingShared sense of experiencesDifficult to define

Attitudes & Communication patterns Ways of doing things Taboo


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Culture: Collective programming of the

mind ( Hofstede 1980 )National Personality

Values shared Attitudes and beliefsSocialRepresentations


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Dimensions of culture:

POWER DISTANCE perceptions of equality

UNCERTAINTY AVOIDANCE

INDIVIDUALISM vs COLLECTIVISM close correlation withnational wealth

MASCULINITY differences in values MAS emphasis on promotion and money Fem emphasis on relationship and social values


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Influence of National Culture on organisational culture

Problem for international and global organisationsLocal culture practices transferred to organisationsImpact of national culture on organisational design

Can you identify three different international organisations andcompare their perceived culture and values?

http://www.youtube.com/watch?v=EcHpgsTg458
http://www.youtube.com/watch?v=EcHpgsTg458http://www.youtube.com/watch?v=EcHpgsTg458


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Organisational Culture:Strong culture drives workforce behaviour

Artefacts open plan office

ValuesBeliefs

MythsHeroes Characters of special achievement

SymbolsRituals Performance awards

Provides meaning for employeeshttps://www.google.co.uk/about/company/facts/culture/

rgan sat ona tr ct re t re
https://www.google.co.uk/about/company/facts/culture/https://www.google.co.uk/about/company/facts/culture/


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rgan sat ona tructure u ture Handy:Power Culture Depends on central power

Dominant central figure holds power Policy made centrally based on leaders views Few rules but implicit codes for behaviour Entrepreneurial businesses

Role culture Bureaucracy, rationality, procedures and rules, specialist Pillars Focus on roles, Hierarchical position determines power

Task culture Job oriented, focus on jobs acquisition of resources Project objectives rather than roles

Person culture Focus on the individuals Collaboration to meet needs Barristers Architects


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Organisational Structure & Culture Four Types of Culture:

Tough guy, macho culture High risk, intense pressure, high pay-off, quick feed back

Work hard/Play hard culture Few risks, fun, quick feed-back

Bet-your-company culture Slow feed-back, large scale decisions and high risks

Process Culture Slow feed-back, low risk, difficult to evaluate own contributions

Culture is influenced by:Founding members values

New ManagementIndustry


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Organisational Structure Culture.ppt

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