Tasks on Organisation Structure and Management Roles
Organizational structure refers to the way in which an organization's activities are divided, grouped, and coordinated into relationships between managers and employees, managers and employees.
An organization's departments can be formally structures in three major ways: by function, by product market, or in matrix from.TYPES OF STRUCTURE1.1.1. FUNCTIONAL SRUCTURE
Perhaps the simplest structure is the functional structure. The functional structure organizes the firm around traditional functional areas such as accounting, finance, marketing, operations, and so on.
This structure is one of the most common organizational structures in part because it separates the specialized knowledge of each functional area through horizontal differentiation and can direct that knowledge toward the firm's key products or services.
Firms with operations outside their domestic borders might also adopt a functional structure. The key difference between a purely domestic organization and a multinational organization with a functional structure is the scope of responsibilities for functional heads in the multinational firm.
In a multinational, each department would have worldwide responsibilities. Thus, while each subsidiary would have a local human resource manager, the top human resource manager would be responsible for directing worldwide human resource activities such as hiring, training appraising, or rewarding employees.
This structure is most common when the technology and products of the firm are similar throughout the world.CEOFinancialProductionMarketingR&DHuman resourceFigure 1.1ADVANTAGES OF FUNCTIONAL STRUCTURE
Well suited to small to medium-sized firms with limited product diversification
Facilitates specialization of functional knowledge
Reduces duplication of functional resources
Facilitates coordination within functional areasDISADVANTAGES OF FUNCTIONAL STRUCTURE
Often creates problems of coordination across functional groups
Creates restricted view of overall organization goals
Can limit attention paid to customers as functional groups focus on their specific areas
Can lead to slower organization response to market changes
Often burdens chief executives with decisions that involve multiple functions1.1.2. PRODUCT STRUCTURE
In a product structure, the firm is organized around specific products or related sets of products. Typically, each product group contains all the traditional functional departments such as finance, marketing, operations, human resource management, and so on.
Each product is generally treated as a profit center. That is, the related expenses are subtracted from the revenues generated by the sales of located in the headquarters of the company. However, this not necessarily the case.
Multinational firms also use global product structures. This typically happens when customer needs for a given product are more or less the same the world over.CEOProduct DProduct CProduct BProduct AFinanceR&DH/ResourceProductMarketingFigure 1.2ADVANTAGES OF PRODUCT STRUCTURE
Individuals in different functional areas within the product group focus more on the products and customers
Performance of the product is typically easier to evaluate
There is usually greater product responsiveness to market changes
It often reduces the burden of the top executive in making operating decisions compared to the functional structureDISADVANTAGES OF PRODUCT STRUCTURE
Duplication and lack of economies of scale for functional areas
Can create problems for customers who purchase products across multiple product groups
There can be more conflict between product group objectives and overall corporate objectives.
There is an increased like hood of conflict between product groups and greater difficulty coordinating across product groups1.1.3. DIVISION STRUCTURE
The division structure can be viewed as an extension of a product structure. Divisions typically consist of multiple products within a generally related area, though specific products may not necessarily be closely related.
Like domestic firms multinational firms can and do use this structure. In this case, each division is charged with worldwide responsibility. Because division structures are generally extensions of product structure, they have many of the same advantages and disadvantages. For large diversified multinational firms, the division structure is of the more common structures.CEOFinanceDivisionConsumerDivisionAgroDivisionPaintDivisionGeneralManagerGeneralManagerGeneralManagerGeneralManagerR&DProductH/ResourceFinanceMarketingFigure 1.3ADVANTAGES OF DIVISION STRUCTURE
Organizing various product families within a division can reduce functional duplication and enhance economies of scale for activities
To the extent That product families within a division serve common customers, customer focus can increase
Cross-product coordination within the division is eased
Cross-regional coordination within product families and within the division is often easedDISADVANTAGES OF DIVISION STRUCTURE
Typically only appropriate for diversified, large companies with significant numbers of specific products and products families
Can inhibit cross division coordination
Can create coordination difficulties between division objectives and corporate objectives1.1.4. CUSTOMER STRUCTURE
As the implies customer structure are organized around categories of customers. Typically, this structure is used when different categories of customers have separated but broad needs.
Multinational firms find this organizational form difficult to implement because of differences among customers across region and countries.CEOVice presidentMilitaryVice presidentIndustrialVice presidentRetailSmallArmyDomesticMid-sizeInternationalNavyFigure 1.4ADVANTAGES OF CUSTOMER STRUCTURE
Facilities in-depth understanding of specific customers.
Increases responsiveness to changes in customer preferences and needs as well as responsiveness to moves by competitors to better serve customerDISADVANTAGES OF CUSTOMER STRUCTURE
Typically leads to duplication of functional resources in each of the customer units.
Often crease difficulty in coordinating resources in each of the customer units and corporate objective
Can fail to leverage technology or other strengths in one unit across other units.1.1.5. GROGRAPHIC STRUCTURE
Firms can structure themselves around various geographical areas or region. Within this structure, regional executives are generally responsible for all functional activities and products in their regions.
A number of multinational firms employ geographical structures. This is primarily because customers demands. Government regulations, competitive conditions, availability of suppliers, and other factors vary significantly from one region of the world to another. The size or scope of the region is typically a function of the volume of business.CEO
Vice president Africa
Vice president America
AsiaFigure 1.5ADVANTAGES OF GOEGRAPHIC STRUCTURE
Typically leads to in-depth understanding of the market, customers, governments, any competitors within a given geographical area.
Usually fosters a strong sense of accountability for performance in the regional managers.
Increase responsiveness to unique changes in the unique market, government regulations, economic conditions, etc. for the geography.DISADVANTAGES OF GOEGRAPHIC STRUCTURE
Often inhabits coordination and communication between regions.
Can increase conflict and coordination difficulties between regions and corporate office
Normally leads to duplication of functional resources across the regions.
Separating production facilities across multiple regions can inhabit economies of scale
Can foster competitive behavior among the regions, which is particularly frustrating for customer who have operations across multiple regions1.1.6. MATRIX STRUCTURE
A matrix structure consists of two organization structures superimposed on each other. Consequently, there are dual reporting relationships.
That is one person essentially reports to two bosses. These two structures can be a combination of the general forms already discussed. In multinational companies, matrix structure comes and goes with some frequency.
They come into play quite often because while economies of scale for global product, division or even customer structures are compelling, often-regional differences relative to governments, culture, languages, and economies are also strong. In multinational firms, matrix structure goes out because they are difficult to manage.PRESIDENT
R & D
DEP 3Figure 1.6ADVANTAGES OF MATRIX STRUCTURE
Typically Facilitates information flow throughout the organization
Can enhance decision quality because before key decisions are made, the organization considers the two interesting perspectives.
Is best suited to a changing and complicated business environment
Can facilitate the flexible use of human resources.DISADVANTAGES OF MATRIX STRUCTURE
Often increases complexity of performance evaluation because people often have two bosses
Can inhabit the organization's ability to respond to changing conditions quickly
Can diffuse accountability
Often leads to conflicts as the differing perspectives and objectives of the intersecting units come togetherCULTURE
Culture is expressed by handy's has been "The way we do things" arround here. The concept of culture involves how people want to view their relationships to one another around the globe, you can expect to find divers experiences, traditions, and practices regarding power in human relationship.TYPES OF CULTUREPower Culture
Power and influence stem from a central source. Perhaps the owner - directors or the founder of the business. The degree of formalization is limited, and there are few rules and procedures. Such a firm is likely to be organized on a functional basis.Role culture
These organizations have a formal structure, and operate by well-established rules and procedures. Job description establishes definite tasks for each person's job and procedures are established for many work routines. Communication between individuals and departments, and the settlement of dispute and appeals.Task culture
Task culture is reflected in a matrix structure or else in project teams and task forces. In such organization, there is no dominant or clear leader. The principal concern in a task culture is to get the job done.Person culture
In the three cultures, the individual is subordinate to the organization or task. A person culture is found in an organization whose purpose is to serve the interest of the individuals within it.Now we will move on to selected organization structures and culture
ABX is internationally well performing company. This is communicating all over the island. And three of the branches are operating as franchise branches. ABX provides those with affiliation of UK universities. Therefore, the Matrix structure is most suitable for it. But, the ABX is under Flat structure.
ABX is defined by their functions, that is, the work that they do. It is a traditional, common sense approach and many organizations are structured like this.
It is based on work specialism and managers can be technical experts. ABX can benefit from economies of scale and division of labor.
B 1STAFF MANAGERSSTAFFSTAFFSTAFFSFigure 1.7
When compare the Flat structure with Matrix structure mainly hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim in all branches
The matrix structure sometimes referred to as a multiple command system." Is a hybrid that attempts to combine the benefits of both types of designs while avoiding their drawbacks.
ABX has two types of structure existing simultaneously. Employees have in effect two bosses-that is, they work in two chains of command. One chain of commands is functional or divisional, the type diagrammed vertically in the preceding charts.
The second is a horizontal overlay that combines people from carious divisions or functional departments into a projects or business team led a projector group.Advantages of the structure
Easy communication among specialist- people grouped together according to similarities in their position can easily communicate and share information with each branches.
Decisions - people who approach problems from the same perspective can often make decisions more deeply and effectively than can people whose perspective differ.
Learning - makes it easy for people to learn from one another's experiences. Thus a helps employees to improve their skills and abilities and thereby enhances individual and organizational performance.
Facilitates communication - between functions improve decision making, thereby increasing performance.
Facilitates teamwork - people are sometimes able to pool their skills and knowledge and brainstorm new ideas for products or improved customer service.Even though there are some disadvantages :-
Coordination - as organization attract customer with different needs, they may find it hard to service these different needs by using a single set of functions.
High operating and managing costs - because each division has its own set of functions, operating costs - the cost associated with managing an organization-increase.
Poor communication between divisions - Structures normally have more managers and more levels of management than functional structure have communications problems can arise as various managers at various levels in various divisions attempt to coordinate their activities.
Conflict among divisions - divisions may start to complete for organizational resources and may start to pursue divisional goals and objectives at the expense of organizational ones.IF A COMPANY OR INSTITUTE FOLLOW THIS STRUCTURE (MATRIX) IT WILL MOST SUITABLE :-BOARD CHAIRMAN(FRANCHISE)(BRANCHES)B 5B 4B 3B 15B 14B 13B 12B 11B 10B 2B 1B 9B 8B 7B 6KIDSMSCBSC DIVISSHORT COURSETRAINEE PROGRAME(DIVISION) Figure 1.8
And the selected organization depends on mix of power and task culture. Power culture tends to rely on central figures for its strength and has lines of communication which not only radiate out form this centre but link sideways across the organization.
The boss is sits in the centre, surrounded by ever widening circles of intimates and influence. Power does derive simply from an individual's level in the organizational hierarchy.
The culture supports a belief that power in organizations should be unequally distributed. Power has long been a subject of considerable interest.
Task culture is concerned with the continuous and successful solution of problems. Judged in terms of results and problems solved. A different set of variables internal to the ABX are prominent in the task culture approach to ABX design that emerged in the 1990s.
Unit production refers to the production of individual items tailored to a customer's specification. The span of management for first level management increases as we move from unit to mass production, but decrease when we move from mass to process production.
Because lower level employees in both unit and process production division usually do highly skilled work, they tend to from small work groups, making a narrow span inevitable.RELATIONSHIP BETWEEN ORGANIZATIONAL STRUCTURE AND ORGANIZATIONAL CULTURE
ABX structure has a vertical component of hierarchy and a horizontal structure of working groups. These can be arranged by territory; function; product; brand; customer; staff number and work patterns; and equipment specialization.
ABX culture is part of the wider culture of society. It emphasizes aspect of behavior that is acceptable in the ABX context.
Culture is both internal to ABX and external to it. The culture of ABX is embedded in the culture of the wider society.
It is true if a management culture is developed, all the managers will adopt the same way of performing the task.
if we observe the selected organization that management styles adopted in different areas we can well know that though they have mostly the same management culture, the styles adopted by these areas have distinction in between them.
There are two reasons why the management culture is differing. Firstly, which have varied purpose, size, the environment in which they have to operate etc. thus is becomes difficult rather unreasonable to adopt the same type of management culture.
Stability in negotiations process is a major concern of structure and their culture counter parts because their relationship is one that they usually anticipate will continue into the future indefinitely.
It is also a concern because, generally speaking across industries in the ABX and over many decades stability has been elusive in structure - culture relationship.FACTORS INFLUENCE THE INDIVIDUALBEHAVIORThe individual's expectation of the organization
This is mainly reflected in is word call psychological contracts formal contracts between people are written documents, which state rights and obligations. However, the same contracts can sometimes be mentally entered into without it being in writing.
These are psychological contracts. These contracts can now exist between employees and the organizations.
The employee is willing to put forward effort and intern has certain expectation of the organization. The employer intern has certain expectation from the employee for which to take salaries and benefits.
Does if a person's expectations are not properly met by the organization. This can have an adverse effect on performance and it can demotivate problems.The job fit
Effective performance comes through when the person and the job have a good fit. The person knowledge, experience and skill levels need to match with the requirements of the job.1.3.3. The employees' personality
A person's personality can have three traits, which effect their behavior at work
Agreeableness - effects how people get along with others
Conscientiousness - a person's commitment towards work and dedication
Attitude - this could form through experience, family background level of education, religious believe etcâ€¦TASK 022.1 DIFFERENT ORGANIZATIONAL THEORIES2.1.1 Contingency Approach
A contingency approach is one which argues that the ability of a manger to be a leader, and to influence the subordinate work group, depends on the particular situation, and will vary from case to case.
Contingency theory asserts that when staffs take a solution, they should have into responsible all aspects of the current situation and act on those aspects that are steps to the situation at hand. Basically, it's the approach that "it depends."
This approach is linked to the theories to designing organizations, which rejects the notion of universally applicable principles and proceeds via a consideration of the dominant factors in a given situation.
Contingency approach to ABX developed as a reaction to the idea that are "universal principles" for designing ABX and moving staff and so on. Newer research indicated that different forms of ABX structure could be equally successful, that there was no inevitable effectiveness, and that there were a number of variables to be considered in the design of the ABX and their styles of management.
Essentially it depends on the total picture of the internal factors and external environment of ABX.2.1.2 Systems approachThere are 4 concepts underlie Systems approach.Which is :-
Specialization :- A system is divided into smaller components allowing more specialized concentration on each component.
Grouping :- To avoid generating greater complexity with increasing specialization, it becomes necessary to group related disciplines or sub-disciplines.
Coordination :- As the components and subcomponents of a system are grouped, it is necessary to coordinate the interactions among groups.
Emergent :- Dividing a system into subsystems (groups of component part within the system), requires recognizing and understanding the "emergent properties" of
a system; that is recognizing why the system as whole is greater than the sum of its parts. For example, 2 forest stands may contain the same tree species, but the spatial arrangement and size structure of the individual trees will create different habitats for wildlife species. In this case, an emergent property of each stand is the wildlife habitat.
Let's look at ABX. Inputs will include things such as raw materials, money, technologies and people. These inputs go through a process where they're planned, organized, motivated and controlled, ultimately to meet the ABX's goals.
Outputs would be products or services to a market. Outcomes would be, enhanced quality of life or productivity for customers/clients, productivity. Feedback would be information from human resources carrying out the process, customers/clients using the products, etc. Feedback also comes from the larger environment of the ABX.
The systems approach emphasizes the existence of sub systems, or parts of the bigger system. Trist and bam forth developed an approach which suggested that an organization can be treated as an open "Socio-technical" system.2.2 MANAGEMENT THEORIES2.2.1. Scientific management
Concerned with improving the performance of individual workers.
Fredric Taylor developed this system, which he believed would lead to a more efficient and productive work force.
Develop a science for each element of the job
Scientifically select employees and then train them to do the job
Supervise employees to make sure they follow prescribe methods
Continue to plan replace employees who do not show high achievement2.2.2. Administrative management
Whereas scientific management deals with the jobs of individual employees, administrative management focuses on managing the total ABX. Administrative management laid the foundation for later development in management Theory. It is more appropriate for stable and simple organizations than for today's dynamic and complex ABX.14 principle of management
Division of work
Authority with responsibilities
Unity of command
Unity of direction
Subordination of individual interests
Spirit de corps2.1.3. Bureaucracy managementâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦
Outline the concept of Bureaucracy based on a rational set of guidelines.
Most logical and rational structure.
Founded on legal or rational authority, which is based on law, procedures or rules.
Charismatic authority stems from personal qualities of the individual.
Foundation of contemporary organization theory. Works not know in English until 1947.
Efficiency in Bureaucracies comes from:
Clearly defined and specialized functions.
Use of legal authority
Written rules and procedures
Technically trained bureaucrats
Appointment to positions based on technical expertise.
Promotions based on competence
Clearly defined career paths.2.1.4. Elton mayo - the Hawthorne experiment
The Hawthorne experiment was originally done by the western electric company in the US within their hawthorn plant.
The main purpose of the experiment was to examine how different working conditions had impact on worker output & efficiency. In lieu with this lighting, heating, the working week, working hours within a day, breaks were altered to see its effects on output.
However the results were contradictory in that no matter how adverse working conditions were made outputs was still rising. Since this scenario could not be explain a professor Elton Mayo was called in.
Mayo continued the experiment by isolating six vary workers in a special room. They were given changing working conditions. Productivity was still rising. Mayo concluded two factors to be causing this.1. Group Atmosphere
The workers enjoyed in the company and had well inter personal relationship. Their social needs were effectively affected.2. The experimenter effect
Mayo himself was having an impact on the result; since the workers were isolated for the study they felt special and recognized. This was motivating well.
The overall conclusions of the experiment indicate people are not nearly motivated by money and working conditions as indicated by Taylor. They want to be treated with respect and have their social needs main in their work place.We shall compare ABX with another organization.For an example,We shall compare ABX management theories with DIALOG.
DIALOG uses Entrepreneurial style. Every human is innovative and thus always tries to initiate unfolding the mysteries of nature.
Conservation leads to survival whereas entrepreneurship leads to seeking, rather creating opportunities for growth. This very fact nurtured the inherent qualities of innovation, probing and adventures.
This has breaded entrepreneurship in the world of trade and commerce as well as in all fields of life.
ABX management theory follows Taylor's scientific management; man is an economic creature, responding directly to money. Therefore, workers follow management's orders and work harder if they can earn money.
An employee related to their work, rather like machines, and made as efficient as it was theoretically possible to make them. Extend of work in a task performance is determined by employees physical capacity.
Therefore productivity increased by the efficiency of the workers. The managers approach their jobs in arbitrary rule of thumb way.If ABX use entrepreneurial style,
That which leads the ABX to the ditch of failure. If ABX ignores any of the fundamentals of management excellence, it is sure that it may not give desired results.
If all the powers and decision making, rights are concentrated in one person, his decisions, may be overpowered. Aged are more conservative on the other hand younger's that means new generation possesses entrepreneurship.
But unless this style is backed with conservatism in true sense, it may lead to over enthusiasm which is prone to unnecessary risk taking and thereby landing in trouble.TASK 033.1 DIFFERENT TYPES OF LEADERSHIP3.1.1 Autocratic leadership style
Under this all the authority and decision making powers are vasted in leader himself. He is workcentred or leadercentred. He designs the workload and work situation for his employees.3.1.2 Democratic leadership style
Under this style leader allows the participation of subordinates in decision making process. Leader gives responsibility as well as freedom to the subordinates.3.1.3 Group centered leadership style
Under this style a leader gives full freedom to his subordinates to take decisions. Entire authority in decision making is given to subordinates. Under this type of leadership, a little direction is involved.3.1.4 Bureaucratic leadership style
As is clear from the name of the style all activities of the groups are governed by the rules and regulations already framed and brought into operation. The leader are not supposed rather are not required to take any decision, as even the procedures are already laid down.3.1.5 Manipulate leadership style
This is typically style of leadership. The leader uses his acquaintance with the subordinates for achievement of his goals. As the subordinates believe in their leader they tell him all their needs and desires with an expectation that the leader will help them in fulfillment of these needs and desires.3.1.6 Expert leadership style
This type of leadership style is basically meant for meeting critical situations. A regular leader needs not be expert in all the matters and therefore may not be able to sort out some problems.
In selected organization following an autocratic leadership style, all the decisions are taken by him only; subordinates are not to participate in decision
Making process. Autocratic leader directs, motivates and controls his subordinates. The subordinates are bound obedience and adherence to his directions.
In this type of style, quick decisions and its quick implementation is possible. It is a style of one way communication. In this style the leader instructs the subordinates and the subordinates have simply to follow.
Leadership function is a matter of pushing people in ABX until they do what the leader wishes them to do. Leadership is primarily a matter of removing barriers so that people can act with freedom and independence. Leadership encourages and stimulates action from workers by innovating them in planning and decision making activities.3.2 MOTIVATIONAL THEORIES
There are varieties of Motivational theories in practically.3.2.1 Abraham Maslow higherarchy of needs
Maslow is a clinical physiologist presents his fighting on motivation after doing research amongst his patients according to him. Man is motivated towards achieving fire category of needs which can be arranged in a higherarcy or order of importance.
The theory is based on two important principles
The deficiency principle
The progressive principleSelf needsSelf esteem needsSocial needsSafety needsPhysiological needsFigure 3.1
Once the need met the next need on the higheracy now motivates behavior.
Physiological needs: The need for food, water, shelter, which must we met for survival.
Safety needs: The need for order security, certainty and predictability in life and freedom from the eat.
Social needs: The need for friendship, affection, love and relationships.
Self esteem needs. The need for recognition and respect and to sealed as important in the eyes of others.
Self actualized needs: The need to reach once fullest potential.3.2.2 Hertz Berg - Two Factor Theory
Hertz Berg research indicates two sets of disinfectors are responsible for
Preventing dissatisfaction at work
Causing satisfaction at work
The factors which prevent dissatisfaction are referring to as the hygiene factors and our normally associated with the job contexts. However just because hygiene factors are made job satisfaction doesn't occur.
Simply prevented dissatisfaction for satisfaction occurs the motivational factor needs to be presented these are connect to the job content.Hygiene Factors Motivations
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