2.2-organizational structure and communication-higher level

8/7/2019 2.2-Organizational Structure and Communication-Higher Level

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2.2. Organizational Structure &

Communication

Higher Level (HL) Content:

P103-109


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Centralization & Decentralization

What is centralization?

Centralization means concentrating decision

making in a particular location or group. If the decisions in a school are predominately

made by one group or location then decision

making could reasonably be described ashighly centralized.


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Centralization & Decentralization

What is decentralization?

Decentralization is when decision making islargely dispersed to outlying parts of theorganization.

If a school allows different parts of theorganization to make substantial decisions

about things like uniform, activities, subjectsand how they are taught, then decisionmaking is highly decentralized.


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Decentralized Economic Systems

Many economies have moved away fromcentralized command and control todecentralized systems.

These systems have the advantage that decisionmaking is closer to the people making andunderstanding the decision.

However, such a system is likely to result ingreater variation in the decisions made and theprocess of decision making may be slowerbecause more people are usually consulted..BUT.. decentralized decision making will ofteninvolve fewer layers of hierarchy and fast decision

making.


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Matrix Structures or Project Teams

In many firms employees may work for two bosses.

They may have Supervisor or Manager for the sectionthey work in and another person they report to forspecial projects.

Such systems reflects a matrix structure.

Amatrix structure refers to situation where individualswork across teams and projects.

It is possible that such a system can lead to a clash, eg:

where a person is expected to be in two places at thesame time.

In this situation , it may be that senior managementwill need to intervene to decide where and when thepriorities should be.


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Mintzberg: DOSPAN

Professor Henry Mintzberg is a well known

academic writer on human resources.

Mintzberg describes six frameworks, parts andcoordinating mechanisms for organizations.

The six organizational frameworks or

coordinating mechanisms in an organization

are DOSPAN.


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Mintzberg: DOSPAN

The six organizational frameworks are:

Direct Supervision

Output Standardization Skills Standardization

Process Standardization

Adjustment

Norms Standardization


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Mintzberg: DOSPAN

Direct Supervision

A boss tells a subordinate what to do

This is common in small businesses

where there is little distance

between managers and workers.


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Mintzberg: DOSPAN

Output Standardization

Standards are set for results This is common in

organizations that produce awide range of outputs and

where uniformity is important.


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Mintzberg: DOSPAN

Skills Standardization

Standards are set for the

qualifications that employees must

have

This is common in professionalorganizations such as those

employing lawyers and doctors.


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Mintzberg: DOSPAN

Process Standardization

Standards are set for the way the

work is done.

This is common in organizations

with tight control of quality, such

as producers of medicines.


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Mintzberg: DOSPAN

Adjustment

Employees adapt and adjust to

achieve organizational goals.

This is common in

entrepreneurial organizationswhere the environment is rapidly

changing.


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Mintzberg: DOSPAN

Norms Standardization

Team norms are the standard by which

someone is assessed, so an employee must fitinto in to established customs, traditions,

habits and practices if that person is to suceed

in the organization.

This is common in religious or missionary

organizations.


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Mintzberg:MOSTIS

The six parts of an organization are: MOSTIS

Middle Management

Operating Core

StrategicManagement

Technostructure.

Ideology

Support Staff


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Mintzberg:MOSTIS

MiddleManagement

Acts as buffer between senior and

junior management and ensures thatpolicies are put into effect

Operating Core

Produces the goods and services ofthe organization


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Mintzberg:MOSTIS

StrategicManagement

Sets the strategic direction of theorganization

Technostructure

Which provides the systems such as ITand training, for organizational

effectiveness


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Mintzberg:MOSTIS

Ideology

This includes the value of the organization and

the way things get done.Support Staff

Which offer back-up services such as catering

and maintenance.


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TOM PETERS

Tom Peters is a prolific writer on organizations.

His most famous book (written with Robert

Waterman in 1982) cites successful

organizations and suggested reasons for their

successes.

Peters and Waterman suggested eight

features of organizations that achieved

excellence.


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8 Features of Organizations that Achieve

Excellence: Peters & Waterman

Get Things Done

Understand your customer needs

Be independent and innovative

Achieve productivity through people

Be hands on-get involved in the organization

Only do what you do best.

Have a simple structure and lean staff. Directly control core activities, but delegate or

outsource peripheral ones.


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The Seven `S` Framework for analysing the set

up of an organization

The Hard Ss

Strategy:

In broad terms, how aims are to be achieved over thelong term

Structure

The management structure needed to achieve those

aimsSystems

The operational systems, such as appraisal reportingand IT


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The Seven `S` Framework for analysing the set

up of an organization

The Soft Ss

Staff

Attracting, retaining and developing people

Style

The ways things get done

Shared

Values (the beliefs of the organization), subordinate goals.

Skills

Ensuring that staff are suitably qualified to achieve a givetask.


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Outsourcing, Offshoring and

Migration of HR Functions

When an organization gets a sub-contractor to

undertake part of its production process, it is

outsourcing.

Examples are when Nike get another company

to manufacturer its products or Coca-Cola

appoints a marketing agency to markets its

range.


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Outsourcing, Offshoring and Migration of

HR Functions

Outsourcing enables an organization to cut

costs and focus on what it believes it does

best.

Toyota has been described as a car assembler

rather than a manufacturer because so many

of the components in its cars are made by

sub-contractors.


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Outsourcing, Offshoring and Migration of HR

Functions

What is offshoring?

The relocation of an organizations activities

from one country to another is calledoffshoring.

Many organizations have relocated their

activities to India and China to take advantage

of much lower production costs.


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What are the HR functions in an

organization?

Payroll

Ensuring that employees receive the pay due to

them.

Work Time

Recording hours worked and holiday entitlement

Benefits Administration

Such as travel and accommodation expenses

incurred while working away from home.


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What are the HR functions in an

organization?

The HR Management Information System

Recording qualifications, training, appraisal experience, and

disciplinary records

Recruiting Anticipating employee shortfalls and recruiting staff in

preparation for this.

Dismissal and Redundancy

Ensuring that appropriate procedures are followed.

Public Relations (PR)

Managing internal and external communication to project and

maintain a positive image.


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Outsourcing HR Functions

Many organizations have outsourced all or partsof the HR function and hardly any have reversedtheir decisions once they have seen the benefitsof outsourcing.

The main benefits are cost savings and serviceimprovements.

An external HR service provider can focusexclusively on those functions and be fully

conversant with legal requirements and labourdevelopments.

It also allows the outsourcing organization tofocus on what it does best.


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COMMUNICATION NETWORKS

The term communication network refers to the route(s)through which messages travel within an organization.

The Chain Network

In a hierarchical organization it is likely that informationwill pass up and down the various levels

This can be time consuming and slow down decisionmaking and organizational effectiveness.

It is also more likely that the message could bedistorted as it moves through the various levels.

However, this system can ensure that all levels areinformed and thus reduce the likelihood of errors.


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The Wheel Network

The wheel network refers to the system wherebyinformation passes through an individual at the centreor (hub) to various individuals surrounding him.

The advantage is that information can be controlled bythe individual and distributed quickly.

The main problems are that he may becomeoverloaded with information and organizational

effectiveness may rely too heavily on this individual. A newspaper will often operate using a wheel (or

wheels) so that one editor can control the informationthat goes out from his section.


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The Web Network

The web network exists when anyone cancommunicate with anyone else in the

organization to achieve their goals.

Communication can thus be vertical, diagonaland horizontal.

Although rather chaotic this kind of networkcan be useful to gain a variety of ideas andthus help deal with complex issues.


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When assessing the effectiveness of a networkit is important to consider its likely impact onspeed, confidentiality, accuracy and

inclusiveness. Eg: The Chain network is likely to slow down

communication and exclude those outside thechain, but it will be easier to keep thecommunication confidential and ensure theaccuracy of the information communicated.

2.2-organizational structure and communication-higher level

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