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Foundation Degree in Accounting and Finance - Organisational Behaviour - Culture, Structure and Change.

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Foundation Degree in Accounting and Finance Subject: Organisational Behaviour Assignment Title: Culture, Structure and Change Assignment Submission: w/c 01/12/2003 Course Tutor: C.E. Stafford Name: Daisy So Course Code: FDA Contents Front Cover 1 Contents 2 Introduction 3 1. Defining Culture 3 1.1 Organisational Culture 4 1.2 Culture of old Water Authority 4 1.3 Culture of Water Atlantic 5 1.4 Comparison of the old Water Authority and Atlantic Water 5 2. Defining Structure 6 2.1 Organisational Structure 6 2.2 The old Water Authority's Structure 6 2.3 Atlantic Water's Structure 7 3. Organisational change 8 3.1 Strategies for Change and Innovation 8 3.2 Atlantic Water's Approaches 9 4. Conclusion 10 Diagram 1 11 Bibliography 12 Reference 13 Introduction There is a radical change after the privatisation of Atlantic Water. The change not only affects the organisation's objectives and strategic planning, but also its structure and culture. B Burnes (1996: 115) cited writers such as Handy (1986), Allaire and Firsirotu (1984) argued the issue as follow: '...to operate effectively and efficiently, an organisation's culture need to match or be appropriate to its structure. Given that an organisation's environment can change rapidly, as can its structure, situations will arise in the environment, structure and practices of the organisation.' Observing organisational behaviour is not enough, we need to understand the meaning of the behaviour, and therefore, it is important to identify the culture and structure of an organisation, to enable management to react quickly for any external or internal change. 1. Defining Culture It is difficult to define culture, usually it is defined as 'how things are done around here' or 'this is how we are'. Culture within an organisation is influence by the personality of an individual, pattern of communication, work performance, behaviour of management and subordinate as a role. Schein (1983) defines organisational culture as: '... the pattern of basic assumptions that a given group has invented, discovered or developed in learning to cope with its problems of external adaption and internal integration and that have ...read more.


This also demands a greater involvement of the staff and creates opportunities for employees developing their career. The encouragement of staff training is vitally important to the change of an organisation, this will not only benefit the organisation's productivity, but will also improve the level of employees' morality and to make them understand their value to the organisation. 2. Defining Structure P Drucker (1974: 52) defined structure as follow: 'Structure is a means for attaining the objectives and goals of an organization.' An organisation existent is to achieve its goal and objectives, the work within an organisation has to be divided among its members. It provides the framework of an organisation and makes all process and application possible. The effectiveness and efficiency of the organisation will be influenced by the structural design and the behaviour of the people who work within the structure. 2.1 Organisational Structure An organisation's structure is designed to ensure that rules and procedures are used and followed, it contains four frameworks of relationships within an organisation: the individual's job description, job specialisation, its lines of communication and its hierarchy. Organisational structure can be layered into three hierarchical structures: the technical level, the managerial level and the community level. It is important to have clear objectives within the organisation, good communications both horizontally and vertically can enable an organisation to perform effectively and efficiently. The correct grouping of individuals and work is also important to maintain a high level of performance. 2.2 The old Water Authority's structure The old Water Authority was a public service organisation, its main objective was to provide a service to local communities. Job description was clarified to individuals and the working pattern was not flexible. The division of work was based on the employees' skills, i.e. operation of clean water side and the dirty water side. It had a narrow span of control and more level of authority, this result in a 'tall' hierarchical structure and there are a few problems with this structure. ...read more.


The organisation introduced a new salary structure, but it leaves many employees worse off financially, Atlantic Water failed to provide a better quality of work life. Counselling - There is a programme to help individual to deal with stress which are caused from job insecurity. This will help and assist individual to attain their goal and to re-build their confidence. Atlantic Water has improved their performance in general by investing in training programmes for both the management and their staff, but they did not consider their employees' feeling. The morality and commitment level had dropped significantly due to the amount of work load and insecurity of their job. Although they offered a counselling programme, their employees are not being awarded for the extra efforts they put into the organisation. The low level of morality and commitment has major influence on the level of work performance. Atlantic Water should try to re-build the relationship with their employees by re-viewing their salary structure. The employees should be informed at a reasonable level of the activity within the organisation, sharing the success of the organisation will also boost the level of confidence for the individual. The management training should not be limited to the knowledge within the industry, it should includes counselling, coaching and leadership skills. Managers have a major influence on the motivation and behaviour of employees. 4. Conclusion The change has a massive impact upon Atlantic Water, the structure, culture and organisational climate had changed significantly. They have taken a certain level of approach but the results are not all positive, they need to carefully re-build relationships with its employees. The organisational climate is an indication of the employees' feeling and beliefs, obviously Water Atlantic's climate needs to be improved. It must develop new ways to increase the loyalty and commitment of employees. This includes attention to reward strategies based on recognition of contribution rather than status or position. The management of organisational climate is an important means of improving productivity and standard of work performance. ...read more.

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