Relationship Between Organization Structure and Culture
Relationship Between Organization Structure and Culture
Relationship Between Organization Structure and Culture
Preface
We have written this assignment mainly to complete course requirement of HND 1st semester. Our assignment is related to the subject
"Organization and Behavior". We collected information from various sources which includes internet, books, and class notes and by
interviewing different departments of Mobilink GSM. We were rejected several times by the organization but still completing this assignment
was interesting and was full of experience. We hope our work will be appreciated.
Outcome 1st:
Task for P1:
Organization defined:
"Working through specific setup is called as organization".
Organizational structure:
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 organization's
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)
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"
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.
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.
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)
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"
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.
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
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.
Personality:
Personality is the general model of an individual's beliefs, feelings, and behaviors which represents style of individual's involving to the
surroundings. Personality of a person involves person's 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 individual's 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.
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 Pakistan's 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)
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.
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.
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 manager's 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.
>> 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. Employees should be motivated because then they will do
their work effectively and efficiently and with interest. Employees can be motivated by involving them in decision making and by giving them
reward etc.
Managerial Roles:
"Duties or responsibilities of manager in organizations". Manager of an organization should know how to run an organization. Henry
Mintzberg grouped roles of manager into 3 categories. They are explained below.
Interpersonal roles: As the name indicates how physique of manager etc is.
Figure head: What are skills of manager and how is figure if manager. Manager should know how to arrange different organizational events
and ceremonies.
Liaison: Manager should the ability to forecast. Manager must have good communication with outside agents, this also includes attitude of
manager with outside agents.
Leader: Leadership is the inborn quality of manager. Manager is one who possesses influencing ability. Manager should also have the ability
how to motivate employees or subordinates.
Informational roles:
Monitor: Managers should know about everything going on in organization, observing and checking etc. Managers monitor organization that
is the tasks going on according to plan or not.
Disseminator: Manager is one who receives information and provides information.
Spokesperson: Manager should have the ability to speak on behalf of organization. Manger should have ability to answer the questions of
outsiders.
Decisional roles:
Entrepreneur: Manager should have the ability to run whole organization that is manager should have ability to combine four operations and
take work from them.
Disturbance Handler: Managers are one who has the ability to handle clashes or disturbance occurred. Managers resolve clashes.
Resources Allocator: Managers are responsible to allocate resources for different departments that hiring right employees, machinery etc.
Negotiator: Managers should have the ability to bargain and discuss problems of one department with other and find solution for that to
resolve problems and benefits organization.
Managerial Authority:
Legal rights of managers to manage organization are called as managerial authority. These rights are given to managers by the owner of the
organization. Managerial authority is the power of taking work from employees.
In matrix structure each manager is accountable for his/her department. This will lead toward conflicts, because manager of each department
will focus on his/her department.
Research and Development team found that employees were accountable to two different managers, functional manager and project
manager. Information was collected by research and development team by interviewing with 46 peoples including all managers of the
organization.
As authority was equal with each department, they used to change business norms and rules and regulation whenever they wanted without
properly informing employees of the organization. Due to research and development team managers adopted democratic style of leadership.
Strategic decisions were made by involvement of both the departments of the organization. Tasks were clearly defined and employees started
knowing to whom they are accountable.
Power and authority should be wisely distributed in matrix structure. In organization political behavior should be destructed from grass root
level, because political behavior in an organization creates problems. Appropriate leadership style should be adopted by the managers.
According to the interview that we conducted with the team leaders of different departments of Mobilink GSM they told us in interview that
Mobilink GSM has multi cultured employees environment. This means that there are different people who belong to different cultures,
religions and race they all are given chance to work in Mobilink GSM, this really shows that Mobilink GSM's recruitment policy is totally
based on merit.
Wages:
When sales increases Mobilink GSM increases wages of employees too. This really motivates employees which lead to efficient work.