Organizational Structure And Specialisation

Organizational Structure And Specialisation In organizational structure we arrange people into groups and different departments. Organizational structure provides the pathway for the system of coverage that drives a business, dividing it into areas or departments that are responsible for certain aspects of the organizations purpose. An organization divides jobs among employees to achieve their goals more efficiently. There are different key factors which will help us to create an organization structure .we will discuss them below Work specialization: When an individual perform certain job several time on daily bases, that individual get habitual to that specific task and become experienced by doing that task again and again, this is called as work specialization. Advantages: Through work specialization level of efficiency increases in employees. Disadvantages: Employees can become bore by doing same task again and again. Lack of interest might increase by doing same task again and again. Departmentalization: Departmentalization is the combination of four departments operating department, marketing department, HRM department and finance department. This is the process of performing different tasks, advertising products, managing resources (hiring employees, machinery etc) for different tasks and providing budgets for performing different of different departments. Functional departmentalization Product departmentalization Geographic departmentalization Process departmentalization Customer departmentalization Functional departmentalization: In functional departmentalization peoples are grouped together according to the work they specialize. Groups of people then perform similar tasks and uses similar materials. Groups are then further divided into sub departments. Advantages: Efficiency of employees increases by doing same work again and again. Hiring/firing and training of employees gets easier. Each department will be responsible for their tasks. Disadvantages: In this structure communication, coordination is poor and accountability becomes difficult in this structure. http://static.flatworldknowledge.com/sites/all/files/imagecache/book/27984/fwk-collins-fig06_008.jpg (htt) (Figure showing functional departmentalization) Product departmentalization: In product departmentalization work is grouped on the basis of manufactured goods they produce. Example Nestle corporation uses product departmentalization technique for their wide range of products. Nestle produces different products like Nestle food, Nestle Beverages, Nestle Baby care products etc is controlled by executives who have full responsibility for their products. http://www.emeraldinsight.com/content_images/fig/3300080301004.png (htt1) (Figure showing product departmentalization) Geographic departmentalization: In this type of structure departmentalization occurs on the basis of region, area. Example Standard Chartered Bank has their branches almost in every city of Pakistan. Like head department of Standard Chartered Bank is in Karachi and their branches are spread over all other cities of Pakistan. Advantages: Services can be easily available for employees. Employees satisfaction increases by providing them services in every city. Service of one department in one city can be different from another department in another city. This might create some problems. Duplication of resources by having lots of managers and staff. Lack of communication with head office is the disadvantages. Process departmentalization: In process departmentalization department are organize to perform particular job. The members of staff are grouped together to concentrate on specific job. In process departmentalization specialization increases because worker has to focus on single task. Example: Making Passport, ID Card etc. Chain of command: A chain of command set up the line of authority within the organization. It helps employee that to whom they will be responsible. Its starting with the board of directors and extended down through the various level in hierarchy to the point where basic function of the organization carried out. Centralization: Centralization is a procedure where top managers take decision; in centralization authority and power remain with high-class managers. Lower level employee are not considerable that much important. Decentralization: Decentralization is the reciprocal of centralization. Here planning and decision-making are distributed among employees. Decentralization has several benefits compare to centralization Employees get motivated by involving them in decision making Decision making get faster. coordination improve through organization Matrix structure: Matrix structure is combination of several different designs want to combine their benefits and avoid there drawbacks. Employees have to responsible for two bases. Organizational Culture: Definition: A specific system of running, controlling which represents and distinguishes an organization from another organization OR Physical image of an organization that is values, understanding, attitude, norms of an organization Characteristics of organization culture: Organizational culture plays major role in the development of an organization. Its gives distinct value to organization, it smoothen path for innovation and risk taking, it provides stability to organization. Some more characteristics of organization structure are explained below. Dominant value: As the name indicates dominant values are specific qualities of a person or an organization. Major values of an organization or person are called as dominant value. Rules: Complete framework of an organization for new coming employees and to the existing employees. All employees must obey all the rules and regulations of an organization. Example, what time to come, when to leave, what to do and what not do etc. Organization climate: Is physical layout of an organization that is how the building of an organization, is it well decorated, how are employees of organization, their dress their attitude toward clients etc? Example: Standard Charted Bank. When we go there we will notice that building would be nicely decorated, all the employees will have proper uniform etc which is the physical representation of Standard Chartered Bank Philosophy: As we know for an organization costumers are king because without costumer organization cannot run. Philosophy is the main characteristic of an organization culture because here we emphasis on how to treat customers and how to behave costumers. Team orientation: Team orientation is another salient characteristic of organizational culture. Individuals or groups of individuals are grouped together to perform different activities of an organization. Innovation and risk taking: Working on new thing is called as innovation, no doubt innovation is quite risky but it can be very helpful for an organization. https://static.flatworldknowledge.com/sites/all/files/imagecache/book/30774/fwk-carpenter-fig08_005.jpg (htt2) Example viewing organization culture: Mobilink GSM: culture of Mobilink GSM is to totally satisfy customer and shareholders wants, their dominant values include business brilliance, confidence honesty value for public, corporate social responsibility. Sub Culture: Sub culture is basically a culture with in a culture, like every organization has its specific culture then in organization every department has its own culture that is style of operating controlling of marketing department is different than finance department and similarly culture of HR department is different that marketing department. Developing Organizational Culture: While developing a culture there are some factors which affect organizational culture at a great, of which some are explained below. Economic conditions: Economic conditions has great affect on organization culture because if the time for an organization is prosperous so definitely organizations will be looking for innovations, new ideas etc but on the other hand if time is not prosperous, there are inflations for an organizations so no doubt organization will face a lot of problems. Formation: Formation or structure means how are tasks ordered. In flexible structured organization employees are motivated by giving them rewards etc. Employees are given good working condition. On the other hand if the structure of organization is stressful so definitely employees will be demotivated this will decrease their interest level of work. Leadership style: Leader must implement such rule and regulations which are both convenient for employees to follow as well as profitable for organization. It is up to the leader how he controls an organization. Changing Culture: Changing organizational culture is huge tough task according to expert it takes 8 years for an organization to change their culture as a whole, but mostly organizations alter their negative culture. Change in culture can be made by changing mission and vision of an organization etc. Some factors which are playing great role in changing organization culture are described below. Mission and Vision: In order to change organizational culture changes must be made in the mission and vision statement of organization. As mission and vision is communication purpose to stakeholders, mission and vision for an organization should be wisely selected. Alteration from top to down: While changing organizational culture it is important that whatever changes are made by an organization it should be followed by top level managers as well lower level managers and employees because it is obvious if top managers are implementing new rule and they them self not following rule changing of culture might not be possible. Physical sign of culture: New culture must be physically visible that is style of working, dress of employees and attitude toward stakeholders etc must match the changed culture. Leadership: Leader provides motion for cultural alteration. It is the leader who will guide about new alteration of culture plus leader is one who will implement new culture. Importance of culture: Culture affects over all activities of an organization. It is the culture which represents organizations that how they perform their different tasks. Culture plays lively role in the motivation of employees and culture of an organization is the communication purpose to other stakeholders like customers, competitors etc. Some of the salient points of culture are explained below. Motivation: Culture of an organization helps in the motivation of employees because if the culture of an organization is flexible employees will be encouraged they will be interested in organization, similarly if the culture of an organization is not fulfilling employees demand definitely it will have bad impact on success of an organization. Image of an organization: It is culture which gives an organization a distinctive image. Culture represents an organization that is how is does an organization perform their activities how are there attitude toward customers, employees and other stakeholders. Communication: As discussed above culture plays great role in communication to customers and other stakeholders. Working style, building style and their attitudes attracts customers. Flexibility: Culture provides flexibility in an organization by giving value to customers and having friendly working condition for employees and managers etc. Kinds of culture: There are different types of culture, which are expressed below. Power culture Role culture Task culture Person culture Task for P2: Relationship between organization structure and culture: Organizational structure is the mechanism by which efforts and works are coordinated with supervision to produce the results that are hoped from organizational culture. One of the most important features in relationship between organizational structure and culture is that it gives clear picture to the employees about their limitations and responsibilities and so not to concern about the issues that are beyond their scope of expectation this will help employees to work more efficiently. An effective coalition between organization structure and culture gets people closer to achieve organizational end goals more efficiently. Affect of structure on organization: Structure has a great affect on the performance of organization. If the structure of an organization is flexible the employees of that organization will be motivated and they will perform their task willingly. Structure of an organization helps in maintaining communication and stresses on coordination. Mainly there are two kinds of structures which are given below. Tall structure. An organization which have tall structure will have lower span of control that is there will be lots of hierarchy of manager is high. Advantage: low level of span of control, motivation of employees, good coordination. Disadvantage: expensive because so many managers required for an organization, distraction of accountability, single task is passed from so many individuals in organization, slow decision. Narrow structure: According to specialists single individual can handle well 8 individuals. In narrow structure of an organization there is high span of control, that hierarchy of managers is lower as compared to tall structure. Advantages: less expensive because low number managers, decision making is fast, good communication among employees. Disadvantage: high span of control that is pressure on manager is a lot. Example: We visited Mobilink GSM Peshawar, we had an interview with Customer Care Department. According to them structure of Mobilink GSM is decentralized due to which employees are satisfied from organization structure because they are involve in decision making this really motivates customers and this leads to innovations as well. Affects of culture on organization: Culture has a great affect on organization. If the culture of an organization is good corporate culture employees will be motivated and they will work efficiently and it is also the communication purpose to other stakeholders like customers, shareholders, and government etc. Some salient characteristics of organizational culture are given below. Organizational culture is the physical image of an organization. Helps in making good image of an organization. It is the communication purpose to stakeholders. Example: Mobilink GSM has great friendly environment. When we visited Mobilink GSM we feel our selves like we are home we were asked about what to take and what to eat, this really attracted us and felt us happy. Employees are motivated by various methods specially by awarding them and Mobilink GSM provides their employees with necessities of life like they have air condition system in whole organization in summer while in winter they have heater system and they provide employees coffee breaks etc which increase the level of interests of employees. Task for P3: Individual behavior at work: According to psychologist understanding human psyche is very tough job as we know behavior of one person will be different from another. Behavior of individual varies according to conditions around. Interpersonal behaviors are changed from individual behaviors, that is when a person is alone his/her personality changes as compared to when an individual is with other individuals. On the other hand group behavior is different from interpersonal or individual behavior. Example person named Ahmed sets with his colleagues, Ahmads attitude, style and other things which are concerned with his personality will be changes as compared to when Ahmad is alone. Personality: Personality is the general model of an individuals beliefs, feelings, and behaviors which represents style of individuals involving to the surroundings. Personality of a person involves persons height, weight, attitude, fashion, thinking etc. factors which affect personality are given below. Heredity: It involves attitudes, feelings, thinking and behavior etc that you learn from your parents, siblings etc. It is not 100% sure that your personality will resemble to your parents and siblings it may vary. Environment: Your personality changes according to environment you living. If an individual owns good personality that having good attitude, good expression etc definitely that individuals behavior at work would be appreciative. Perception: Is a method in which individual get in-coming information from their surroundings and then arrange and build out these to understand in a particular manner. Each in-coming information or happening going on nearby of individual is perceived in a particular style by every individual. Therefore perception is a center for the communication of a person with its surroundings both at job or other place. Perceptual selectivity: Human minds are attacked by different information all the time. What basically perceptual selectivity means is that selecting of information by our mind to understand, it is not under the control of human being. Further components of perceptual selectivity are. Context 2. Nature of stimuli 3. Internal factors 4. Fear and trauma Attitude: It is basically the response of an individual to all the actions happening in surrounding to it. Attitude is very important because it is attitude which represents you that is how you perform different task and how you deal things happening around you. Ability: Ability of an individual is inborn quality it changes which passage of time like when an individual perform some task again and again a time may come that person will perform activity efficiently. Ability of an individual in organization is required to obtain certain goals and objectives. Task for M1: Culture and structure of selected organization: The organization which I have selected is Mobilink GSM, Pakistan. About Mobilink: http://upload.wikimedia.org/wikipedia/en/7/7a/Mobilink.jpg Mobilink GSM started its business as the primary GSM cellular cell phone services inside Pakistan through MOTOROLA Inc in 1994, afterward Mobilink GSM was purchased by Orascom Telecom Holding (OTH) which is the first multi-national company of Egypt. Mobilink GSM, a subordinate of the Orascom Telecom Holding, is Pakistans primary cellular and Blackberry service supplier. Having more than 31.5 million subscribers, Mobilink holds market leadership through progressive integrated expertise, the strongest trademark and the largest range of value added services in the business. (Wikipedia , 2011) Mobilink Mission Statement: The business is devoted to give its stakeholders highest level of satisfaction through admirable services and show that we as a corporation meeting our commercial as well as moral objectives, in ways that a regular sensible communal expectations of accountable cellular corporations. (Mobilink GSM, 2011) Culture of Mobilink GSM: Complete purchaser approval: According to Mobilink GSM clients are key to their achievements. Mobilink GSM says that costumers has expectation from us and they are doing to the best of their ability to provide them quality, services more that what they have expected. We will surely work according to needs of our clients. Business brilliance: Mobilink GSM struggle to provide the best quality to our clients. Furthermore Mobilink seek to the uppermost standards and search to identify costumer needs every day. This leads Mobilink GSM to market leading company and gives satisfaction to the stakeholders. Confidence honesty: Mobilink GSM gets arrogance in working the top moral principles in an open and frank environment, and by devoting their promises. Value for public: Mobilink GSM runs its business by its relation with peoples. Mobilink GSM gives its importance to its employees and other stakeholders and Mobilink GSM believe in cooperation. Value for employees: Mobilink provide good, flexible and friendly working environment for their employees. Mobilink GSM treats their employees and managers very well and gives them good amount of salary along with security. Corporate Social Responsibility: Mobilink GSM believes that costumers and businesses are in relationship with each other. They are interdependent to each other. Being good corporate business Mobilink not only focuses on earning profit from society but they also spend in the prosperity of societies. (Mobilink GSM, 2011) Mobilink GSMs organizational Structure: We visited Mobilink GSM, we conducted an interview with their Customer Care department and also with HR department. According to Customer Care department and HR department organizational structure of Mobilink GSM is Decentralized. This means that Mobilink GSM involves their lower level managers and employees in decision making. Advantages of this structure: Due to this structure employees are motivated they consider organization as their family they then work efficiently. This structure leads to new innovations because employees of Mobilink GSM told us in interview that employees can give their suggestions and feedback whenever they want, and feedbacks of employees are given great attention. When their suggestions are liked by the top managers, employees are given different rewards even some employees were given Dubai return tickets. (Figure showing Organizational structure of Mobilink GSM) (Source: Interview) Strategic decision making: Strategic decisions of Mobilink GSM are made by Chief Executives (Presidents) in Islamabad. Other decisions are made by directors of each department involving their lower level managers and employees as well. Task for D1: Recommendations: When skills of employees increases salary should be increased as well. In order to keep employees motivated and efficient they should be given training repeatedly. Giving awards on good performance to employees should be maintained this will develop competition among employees. Keeping in mind conditions of Khyber Pukhtoonkhwa employees should be provided good security. Each department should have emergency alarm and fire distinguisher which would be use in case of emergency. They should provide pick and drop system this will attract employees from competitors. Customer Care Department should be improved because too much customers are dissatisfied from their work. Customers are not satisfied from the mistakes of billing department. As compared to competitors prices are high and customer is dissatisfied with the quality as well. Outcome 2nd Task for P4: Organizational or managerial theories: Before we discuss organizational theories it is important first to know what management is. Management: The art of taking work from employees or people effectively and efficiently. Effectiveness means doing exact work as told. Efficiency doing work with less possible input and more possible output. History: The word manage comes from Italian word (maneggiare) and (maneggiare) itself is derived from Latin word (Manus) which means hand. Later on, in 17th and 18th centuries, French word (Mesnagement) influenced in meaning of the English word (Management).. Ranks of management: There are three ranks of management, high-level managers, middle-level managers and lower-level managers. Each rank has its own authorities in organization, which is discussed below. High-level managers: This includes board of directors, presidents, vice presidents and chief executives. They generally make top decisions. They are accountable for the outside image of organization. Middle-level managers: This normally includes general managers, department managers etc. They are accountable to high-level managers. They basically acts like interpreters, they describe information of high-level managers to lower-level managers. Lower-level managers: They are managers who have direct contact with employees, lower-level managers gives job to employees and takes work from them. In short its lower-level managers who run organization on daily bases. Development of management thought: how does management start that which steps an organization should carry in order to manage organization Different organizational theories are of which some are discussed below. Scientific Management: To convert your short skilled labor into efficient employees. This will happen by giving your employees good training that is how to perform different task and by increasing their wages this will increase their interest in work. Explanation: scientific management is also known as Taylorism. It was developed by Frederick Winslow Taylor, he said that organization cannot be managed by hazy ideas it should be managed by organized rules. Principles of Scientific Management: >> Employees should be train for more improvement and they should be motivated by giving awards etc to employees. >> Recruitment should be completely base on merit (scientifically). >> Boss should not be so strict so that employees become stressful nor should the boss be so friendly that employees do not perform their tasks effectively. >> When sales increases, wages should be increased as well. This will encourage employees a lot. >> There should be possible minimum work pressure on employees so that they can perform their tasks well. Human Relations Approach: This approach emphasize on, that human should not be considered as machines, they should be given proper relation and breaks when working Explanation: This approach was first introduced by George Elton Mayo. He was the first person who talked about human relationships approach. He said that human beings become bored when do something for long time without proper breaks, they should be given breaks, they should be provided food, water etc while working in organization. Salient features of Human Relationships Approach: >> Employees should be motivated positively not by force. >> Employees should not be considered as rational, they should be given breaks while working in organization. >> This approach stresses on team work, because by team there is low level of work pressure on employees plus when more than one individuals are grouped together to solve specific problem they will do it more effectively as compared to an individual who is alone. Classical Administration: Henri Fayol introduced classical administration. Henri Fayol was suburb of Turkey who was born in 1841 and was French mining engineer. He gave 14 principles of management. Which are discussed below. Division of work: To train employees in order to make them more efficient. Authority: Managers should have the ability take work from employees. That he/she should be able to make employees to obey their orders. Discipline: There should be proper rules and regulations in organization and all employees must obey them. Example: wearing proper uniform, coming on time and leaving on time etc. Unity of command: Employees should be accountable to one boss because the number of boss in organization is more than one this will cause confusion for employees. Unity of direction: in order to avoid distraction employees must go on one plan that is one direction. Subordination of person interests to the common interest: Interests of organization must be given top priority. Remuneration: There should be extra packages for employees in organization. Employees should be given good wage. Centralization: It means making of decisions by managers. Hierarchy: They are the managers to whom employees are accountable. Order: To place right person the task that is every person should be given task according to the work they specializes. Equity managers should not be cruel or bad with employees they should be friendly with employees. Stability of staff: There should not be surplus of employees not shortage of employees in organization. Initiatives: Organization should focus on innovation, they should take risk in making new things. Esprit De Corps: To work as team because it will ease task for every employees. (Wikipedia, 2011) Function of management: Managing almost in every organization helps in achieving organizational goals and objectives, it brings employees closer that is stresses on team work. Management plays great role on motivating employees. There are different functions of management which are planning, organizing, leading, coordinating and controlling. Planning: For achieving organization goals and objectives planning is done. That how will an organization achieve their goals and objectives. Planning further includes mission, goals, objectives, tactics, budgeting and procedure. Mission: It is the very reason of existence of an organization. Goals: Are the long term intentions, what an organization wants to become in future. Objectives: Are short term intentions of an organization. Tactics: Are methodologies used to achieve objectives (short term targets). Strategies: Are game plans which are used to achieve long term targets of an organization (goals). Budgeting: Amount of capital (money) required for achieving specific goal is called as budgeting. Procedure: Is the specific way of doing some activity. OR Rules and regulations to do some work. Organizing: Collecting the best resources to achieve different goals and objectives of an organization, which is having good machinery, skilled employees and managers etc. Leading: guiding employees how to perform tasks in organization, how to behave clients etc. Coordinating: Providing team work environment, which is helping each other in organization in order to be successful. Controlling: to monitor how are tasks going on and is it going according to the plan or not. Motivation: Without motivating employees taking work from them is so difficult. Employ