amity global business (bangalore)

1. Module IV: Individual in the
Organization

2. Organizational Structure
• It is the formal system of tasks & authority
relationships that control how people co-
ordinate their actions & use resources to
achieve organisational goals.

3. Types of Organisational Structure
• Functional Structure
• Place Structure
• Product Structure
• Multidivisional Structure

5. Functional Structure
• Oldest & most commonly used
• When it is used, the organisation is
departmentalized on the basis of functions it
needs to perform to reach its objectives.
• The activities or functions of all these
departments are co-ordinated by the Chief
Executive of the organisation.
• This approach helps reduce errors & lowers
costs.

6. • Functional structure is easily understood by the
employees.
• It eliminates duplication. There is only one
marketing department for the entire enterprise,
only one production department & so on.
• Problem – Horizontal integration across
functional departments often becomes difficult
as the organisation increases the number of
geographic areas served & the range of goods &
services provided.

7. Place structure

8. • Popularly called the geographic area structure.
• Popularly used by Multinational Corporations
which need to be responsive to local needs.
• In the US, soft drinks have less sugar than in S.
America, so the manufacturing process must be
slightly different in these two locals.
• Problems – lack of communication among
divisions & diffusion of technology is slow as
innovations generated in one division (area) may
not be adopted quickly by others.

9. Product structure

10. Multidivisional structure
• Referred as M- form
• Tasks are organised by divisions on the basis of
the product or geographic markets in which the
goods or services are sold.
• Divisional heads are primarily responsible for
day-to-day operating decisions within their units.
• Freed from these routine activities, top level
executives concentrate on strategy issues -
allocating resources to various divisions,
assessing new business to acquire etc

11. Organisations for future

12. Matrix structure

13. Networked structure
• Also called Modular Organisation.
• It is a cluster of different organisations whose
actions are co-ordinated by contracts &
agreements rather than through a formal
hierarchy of authority.
• It offers flexibility & innovation.

15. VIRTUAL ORGANISATION
• Enables individuals separated by distance
and/ or time to work together towards a
common goal.
• Use computers for communication
• Employees of virtual organisation respond
quickly to changing customer demands with
customised products & services available at
any time & place.

16. • Employees are interdependent.
• Managers delegate authority & responsibility
to employees while providing them with a
clear vision of the organisation’s goals.

17. Characteristics of virtual organisation
• A reliance for their functioning & survival
upon the medium of cyberspace.
• No readily identifiable physical form.

18. Learning organisation
• In the competitive environment, only a learning
organisation will survive.
• Its abilities to learn, create, & utilize knowledge
faster than its rivals & quicker than the
environment changes – will provide tomorrow’s
corporation a competitive edge.
• A learning organisation is understood as the
one that has developed the capacity to adapt &
change.
• Learning organisations – constantly learn.

19. Characteristics of learning organisation
• System Thinking
• Personal mastery
• Mental models
• Building shared vision
• Team Learning

20. Need for learning organisation
Only it can -
• Survive tomorrow’s knowledge based
economy
• Manage tomorrow’s intense global
competition.
• Cope with tomorrow’s rapid fire technological
changes.
• Handle tomorrow’s demanding market

21. Team based designs
• Organisations are made up of teams.
• Instead of organising jobs in the traditional,
hierarchical fashion by having a long chain of
individuals perform parts of a task, team
based organisations have flattened
hierarchies.

22. Boundaryless organisations
• This designs presents a picture of chaos,
chains of command are eliminated, spans of
control are unlimited, & empowered teams
replace rigid departments.
• Eg – GE envisioned a boundaryless
organisation for its $ 60 bn empire.
• Such a design is hardly sustainable.

24. Strategic alliances
• These are co-operative agreements between
firms that go beyond normal company – to-
company dealings.
• Such co-operative agreements involve joint
research efforts, technology sharing, joint use
of production facilities, marketing one
another’s products or joint manufacture of
components.

25. • Comprises of -
a) Shared management agreement – All the
alliance partners actively participate in
managing the alliance.
b) Assigned arrangement – A partner holding a
major stake in the alliances assumes primary
responsibility for managing its affairs.
c) Delegated arrangement – Alliance partners
create a separate entity to manage the alliance.

26. Built 2 change (b2change
organisation)

27. • Strategising – Describes how an organisation
achieves priority to the needs of end users. When
customers demand change, organisation’s
responses should also change.
• Creating value – Asks the following questions –
what do we need to learn, how do our
capabilities need to evolve, what do we need to
do better so that we can add value in the future ?
• Designing – Organisations need to be designed &
management practices need to be identified to
realise the strategic intent.

28. Structure decisions

29. Structure decisions
• Organisations must make important structure
decisions –
a) Whether or not to use staff experts
b) Whether the organisation will be structured
in a flexible or rigid way.
c) How the authority will be distributed.

34. centralising & decentralising authority,
Formal & informal organisations

35. Organisational culture

36. definition
• Organisational culture has been defined as
the philosophies, ideologies, values,
assumptions, beliefs, expectations, attitudes &
norms that knit an organisation together & are
shared by its employees.

37. Characteristics
• Individual initiative
• Risk tolerance
• Direction
• Management support
• Control

38. • Identity
• Reward system
• Conflict tolerance
• Communication patterns

39. Cultural dimensions – levels of
culture

40. National Culture
• Dominant culture within the political
boundaries of the nation state.
• Dominant national culture usually represents
culture of the people with the greatest
population or the greatest political or
economic power.
• Formal education is given & business is
usually conducted in the language of the
dominant culture.

41. Business culture
• Represents norms, values, beliefs, that
pertain to all aspects of doing business.
• Business culture tells people the correct,
acceptable ways to conduct business in a
society.

42. Occupational cultures
• They are the norms, values, beliefs, and
expected ways of behaving of people in the
same occupational group, regardless of which
organisation they work for.
• Eg – physicians, lawyers, accountants

43. Organisational culture
• Organisational culture has been defined as
the philosophies, ideologies, values,
assumptions, beliefs, expectations, attitudes &
norms that knit an organisation together & are
shared by its employees.

44. Mechanistic culture
• It exhibits the values of bureaucracy &
feudalism.
• This sort of culture resists change &
innovation.

45. Organic culture
• Formal hierarchies of authority, departmental
boundaries, formal rules & regulations, &
prescribed channels of communications are
frowned upon.
• In problem situations, the persons with
expertise may wield far more influence than
the formal boss.
• The culture stresses on flexibility,
consultation, change & innovation.

47. • Autoritarian & Participative cultures
• Dominant & sub – cultures
• Strong, weak & unhealthy cultures

48. How is culture created ?
• External adaptation & survival
• Internal integration - establishment &
maintenance of effective working relationship
among the members of the organisation.

50. Cultural artifacts
• Refers to stories, rituals, ceremonies,
language, symbols & statements of principles.
• Also called observable aspects of culture

51. stories
• Stories about past corporate incidents serve
as powerful social prescriptions of the way
things should (or should not ) be done.
• As they are told & retold, stories give
meaning & identity to organisational members
& are specially helpful in orienting new
employees.

52. • Stories about the CEO
• Stories about getting fired
• Stories about how the company deals with
crisis situations.
• Stories whether lower level employees can
rise to the top

53. language
• The language of the workplace speaks highly
about the organisation’s culture.
• Organisations, over time, often develop unique
terms to describe equipment, offices, key
personnel, suppliers, customers, or products that
relate to its business.
• Eg – MMB (Monday Morning Blues), Pronto –
Now, quickly, Promo- Promotion
• New employees are overwhelmed with the
jargon, after 6 months on the job, have become
fully part of their language.

54. Structure & symbols
• The size, shape, location & age of buildings
might reveal organisation’s culture.

55. Statement of principles

56. Strategies for sustaining culture
• Selecting & socialising employees
• Actions of founders & leaders
• Culturally consistent rewards
• Managing the cultural network
• Maintaining a stable workforce

57. Effects of culture

58. Changing organisational culture

59. • 3 approaches
1. Behavioural approach
2. Competing values approach
3. Deep assumptions approach

60. DIFFICULTIES IN CHANGING

61. Guidelines for changing
• Formulate a clear strategic vision
• Display top management commitment
• Model cultural change at the highest levels
• Restructure the organisation to support the
new culture
• Select & socialize new comers & terminate
deviants
• Develop ethical & legal sensitivity

62. Organizational Design

63. definition
• Organisational Design is the process by which
managers select & manage elements of
structure so that an organisation can control
the activities necessary to achieve its goals

64. • It is a task that requires managers to strike a
balance between external pressures from the
organisation’s environment & internal pressures.
• Organisational design is important, inorder to –
a) Deal with contingency (A possibility that must
be prepared for)
b) Gaining competitive advantage
c) Managing diversity
d) efficiency & innovation

65. Key factors in organisational design
• Environment – degree of complexity, degree of
dynamism (whether environmental characteristics
remain same or change), richness (amount of
resources available to support an organisation)
• Business Strategy – low cost,differentiation (based on
providing customers with something that is unique &
makes the organisation’s product/ service distinctive
from its competitors, focused
• Technology – technological complexity
• Internal Contingency factors – goals ,size , employees

66. CONSEQUENCES OF POOR
ORGANISATIONAL DESIGN