Lecture on organization

By: kanchi. MadhaviM.sc. Psychology

Msc. nursing M.phil psychology,

Department of psychology,College of social sciences and humanities,

Adigrat university.

Life is a mixture of sunshine and rain,Laughter and teardrops, pleasure and pain,Low tides and high tides, mountains and plains,Triumphs and defeats, losses and gains.

poems of faith from Helen steiner rice

Life is a mixture of sunshine and rain,Laughter and teardrops, pleasure and pain,Low tides and high tides, mountains and plains,Triumphs and defeats, losses and gains.

poems of faith from Helen steiner rice

THE ORGANIZATION

ORGANIZATIONAL STRUCTURE AND

DESIGN

The framework

for dividing,

assigning, and

coordinating work

Developments in

or changes to

the structure of

an organization

OrganizationStructure

OrganizationDesign

Key Elements of Organization Structure

DepartmentalizationSpan of Control

WorkSpecialization

Chainof Command

Authority and Responsibility

Centralization vs. Decentralization

Work Specialization HighLowLo

wH

igh

Pro

du

ctiv

ity

Work Specialization

• Job is broken down into a number of steps

• Each step is completed by a separate individual

• Makes efficient use of the diversity of skills that workers have

The Chain of Command

DistrictA

DistrictB

DistrictC

DistrictD

DistrictE

DistrictF

DistrictG

Region1

Region2

Region3

Region4

Region5

VicePresident

VicePresident

VicePresident

VicePresident

VicePresident

Chief ExecutiveOfficer

ExecutiveVice President

ExecutiveVice President

President

Span of Control

• Number of employees that an manager can manage effectively

• Increased over the last several years

• Contingency variables impact number

Authority vs. Responsibility

• Rights inherent in managerial position to give orders and expect them to be followed

• Related to one’s position--not the characteristics of person

• Obligation to perform

• Goes hand-in-hand with authority

MarketingHuman

ResourcesProductionAccountingFinance

Chief ExecutiveOfficer

Research andDevelopment

The Concept of Authority

Line Authority

• Level of authority that entitles manager to direct the work of an employee

• Contributes directly to the achievement of organizational objectives

FinanceAccounting

Marketing

Human Resources

Research andDevelopmentProduction

The ConceptThe Conceptof Powerof Power

Function

AuthorityLevel

The PowerCore

ExpertExpert LegitimateLegitimate

CoerciveCoercive

ReferentReferent RewardReward

PowerPower

The Degree of Centralization

Higher

Em

plo

yee

Em

po

we

rme

nt

Centralization

DecentralizationDecentralization

HigherLowerT

op

Man

ag

eme

nt

Co

ntr

ol

Lower

Five ways to departmentalize

Functional Geographic

Product Customer

Process

Contingency Variables Affecting Structure

MECHANISTIC

• Rigid hierarchical relationships

• Fixed duties

• Formal communication channels

• Centralized authority

ORGANIC• Collaboration (both

vertical and horizontal)

• Adaptable duties• Information

communication• Decentralized

authorized

ContingencyFactors andOrganization

Design

Strategy

Size

EnvironmentalUncertainty

Technology

Environmental uncertainty and the performance of vertical and horizontal designs.

CentralizedAuthority

LittleFormalization

FewDepartments

Wide Spans of Control

The SimpleStructure

TheBureaucracy

DivisionalStructure

FunctionalStructure

Allocationof Specialists

ClearAccountability

Dual Chainof Command

The MatrixStructure

Cross-FunctionalCoordination

Matrix Structure Sample

The Team-BasedStructure

Hold TeamsAccountablefor Results

of Work

EmpowerEmployees

to MakeDecisions

Boundaryless Organization

• Globalization of markets and competitors

• Rapidly changing technology

• Need for rapid innovation

The Learning OrganizationOrganizational Design•Boundaryless•Teams•Empowerment

Leadership•Shared vision•Collaboration

Information Sharing•Open•Timely•Accurate

Organizational Culture•Strong mutual relationships•Sense of community•Caring•Trust

LEARNING ORGANIZATION

Source: Management, Seventh Canadian Edition, by Stephen P. Robbins, Mary Coulter, and Robin Stuart-Kotze, page 231. Copyright © 2003. Reprinted by

permission of Pearson Education Canada Inc.

29NOW TIMETIME

ORGANIZATIONAL CULTURE

What is Culture?

• Personality of the organization.

• Comprised of the assumptions, values, norms and tangible signs of organization members and their behaviors.

• Difficult to express distinctly, but everyone knows it when they sense it

• Particularly important when attempting to manage organization-wide change

04/15/23 32

Importance

Organizational change failure is credited to lack of understanding about the strong role of culture and the role it plays in organizations.

That's one of the reasons that many strategic planners now place as much emphasis on identifying strategic values as they do mission and vision.

04/15/23 33

Types of Culture

There are different types of culture just like

there are different types of personality

• Academy Culture (highly skilled and tend to stay in the organization) Eg :universities, hospitals, large corporations, etc

• Baseball Team Culture (Employees are "free agents" who have highly prized skills,high demands)Eg : Investment banking, advertising, etc.

04/15/23 34

Types of culture

• Club Culture (Requirement for employees in this culture is to fit into the group)Eg : Military, some law firms, etc

• Fortress Culture (Employees don't know if they'll be laid off or not. These organizations often undergo massive reorganization) Eg : savings and loans, large car companies, etc.

Dimensions of Organizational Culture

• Member identity

• Group emphasis

• People focus

• Unit integration

• Control

• Risk tolerance

• Reward

• Conflict tolerance

• Means-end orientation

• Open-systems focus

Cultural Affects on Managers

• Constrains what managers can and cannot do

• Constraints are rarely explicit

• Culture has a link between values and managerial behaviour--what is acceptable and not

Strong vs. Weak Cultures

• Predictability

• Orderliness

• Consistency

• Internal guidelines

ORGANIZATIONAL CHANGE AND DEVELOPMENT

CHANGE

• CHANGE MEANS THE ALTERATIONS OF STATUS QUO OR MAKING THINGS DIFFERENT.

• IT MAY REFERS TO ANY ALTERATIONS WHICH OCCURS IN THE OVERALL WORK ENVIRONMENT OF AN ORGANISATION

STIMULATING FORCES FOR CHANGE

• IN TECHNOLOGY USED

• IN CUSTOMER EXPECTATIONS AND TASTES

• AS A RESULT OF COMPETITION

• AS A RESULT OF GOVERNMENT LEGISLATION

• ALTERATIONS IN ECONOMY

• IN COMMUNICATION MEDIA AND SOCIETYS VALUE SYSTEM

• SUPPLY AND DISTRIBUTION CHAIN

PLANNED CHANGE

• HUMAN RESOURCES

• FUNCTIONAL RESUOURCES

• TECHNOLOGICAL CAPABILITIES

• ORGANIZATIONAL CAPABILITIES

UNPLANNED CHANGE

• CHANGING EMPLOYEE DEMOGRAPHICS

• PERFORMANCE GAPS

• GOVERNMENT REGULATIONS

• ECONOMIC COMPETITION IN THE GLOBAL ARENA

LEWINS FORCE FIELD THEORY OF CHANGE

Resistance to

change

Resistance to

change

Force for

change

Force for

change

Time

Ch a n g e

X

Y

L e

v e

l o

f P

erf

or m

an

ce

M o v e m

e n t

04/15/23 44

Lewin’s Three-Step Change Model

RefreezingMovingUnfreezing

04/15/23 45

Implementing Change

• Unfreezing: getting ready for change

• Moving: making the change

• Refreezing: stabilizing the change

04/15/23 46

Unfreezing

• Arouse dissatisfaction with the current state

• Activate and strengthen top management support

• Use participation in decision making

• Build in rewards

04/15/23 47

Moving

• Establish goals

• Institute smaller, acceptable changes that reinforce and support change

• Develop management structures for change

• Maintain open, two-way communication

04/15/23 48

Refreezing

• Build success experiences

• Reward desired behaviour

• Develop structures to institutionalize the change

• Make change work

04/15/23 49

Overcoming Resistance to Change

• Education and communication• Participation and involvement• Facilitation and support• Negotiation and agreement

50NOW TIMETIME

ORGANIZATIONAL CHANGE AND DEVELOPMENT

52NOW TIMETIME

MANAGEMENT OF ORGANIZATIONAL ISSUES

WORK STRESSJOB DISSATISFACTION

CONFLICTSCHANGING OF JOBS

ANXIETYPSYCHOLOGICAL

DISTURBANCES…..………………….…………………..

04/15/2355

Employee behavioral pattern study

PERIOD  EMPLOYEE BEHAVIOR

Day 1 Denial, fear, no improvement

After a month Sadness, slight improvement

After a Year Acceptance, significant improvement

After 2 Years Relief, liking, enjoyment, business development activities

56NOW TIMETIME

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