Organisational Behaviour (in short called as OB) is concerned with the study of the behaviour and interaction of people in restricted or organised settings.

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Unit 3: Organisations and Behaviour:

Introduction:

Organisational Behaviour (in short called as OB) is concerned with the study of the behaviour and interaction of people in restricted or organised settings. It involves understanding people and predicting their behaviour, and knowledge of the means by which their behaviour is influenced and shaped. Organisations are bodies or entities created for a stated purpose They may consist of one or more people. In the case of a sole trader or single operator, he needs to build relationships with suppliers, contractors, customers, clients, and the community. For those that consist of more than one person, internal as well as external relationships have to be created and maintained. Organisations therefore consist of individuals, groups, and relationships. Objectives, structures, systems and processes are then created to give direction and order to activities and interactions. OB is thus of great concern to anyone who organises, creates, orders, directs, manages, or supervises the activities of others. It is also of concern to those who build relationships between individuals, groups of people, different parts of organisation between different organisation, for all these activities are founded on human interactions. OB is therefore concerned with:1. The purposes for which organisations are created 2. The behaviour of individuals, and an understanding of the pressures and influences that cause them to act and react in particular ways. 3. The qualities that individuals bring to particular situations. 4. The creation of groups i.e., collections of people brought together for given purposes. 5. The background and context within which activities take place. 6. The relationships and interactions with the wider environment with other organisations and groups. 7. The management and ordering of the whole and its parts into productive and effective work relationships. GOALS OF O.B. There are 4 primary goals of OB, which are as under:1. Describe 2. Understand 3. Predict, AND 4. Control.

Task 1:

  1. Compare and contrast different organisational structures and culture
  2. Explain how the relationship between an organisation’s structure and culture can impact on the performance of the business
  3. Discuss the factors which influence individual behaviour at work

First of all, an organisational structure refers to how an organisation has Hierarchical subordinates of persons concerned to achieve the same goal. The culture of an organisation can be described as the value, attitudes and beliefs of people within an organisation. The structure and the culture of the organisation reflects the aims and strategies to be accomplished.

Formal and Informal organisation

In order to have control of an organisation’s performance, an organisation would have some type of deliberate organisational structure. This is called a formal organisation; Structures are clearly organised by dividing departments, level of authority, responsibility and communication line.

On the other hand, there are informal organisations. An Informal organisation does not have a specific structure or a planned division of responsibility and this type of organisations can be seen within formal organisations.

Geographic Structure

A structure with one head office who has the power to control all departments, and several regional or territorial departments where they run the production or service. For example, An airline company would have an head office in a country and departments spread all over the world. These departments whether in country A or country B, will have the same structure such as the finance, human resource and marketing and sales, therefore their operations would be the same, in the case of an airline firm, to sell flight tickets.

Advantages

• Each department has the power to makes decisions in order to meet the local demand. For example, a Fast food company may produce a spicy burger in Thailand since their main dishes are spicy, where this burger if launched in Italy, would not have that much of success.

• Some countries can produce or provide services for a cheaper price. For example the cost of labour in Africa, is far economical than a country in Europe.

Disadvantages

• The original standard of a product may not output identically between regional departments. For example, a soft drink produced in one country may taste different from another,even by using the same ingredients. The explanations might be the diversity of country’s climate and different raw materials.

• Costs could be higher at some Hierarchical level. For Instance, some management decisions may be taken by the head office for all departments, consequently, each board would have less Managers leading to cutting the organisation’s costs.

 

Functional Structure

A functional Structure is characterised by a system where people who owns the same skills are grouped together forming a department or division. Each departments are featured with clear lines of command, precise objectives and responsibilities.

Advantages

• departments are focussed in operations on specific tasks.

• Decision makings can be quicker since units are focussed on one particular field.

• Faster and clear communication and high quality of customer service within the department.

Disadvantages

• each department would have a lack of knowledge and not concerned about what is going on, to other departments.

• separates areas leads to barriers of communication.

Stucture by Product/Brand

A structure similar to a functional structure, however with the addition of having divisional managers in charge of the production line of each brand or product. For instance, in a cosmetic company, divisional manager A would have responsibilities on a perfume brand, and divisional manager B about a shampoo product, both produced from the same firm.

Advantages

• Specialisation may increase since each departments’ staff are focussed only on one product

• profits or losses can be analysed separately by each product, therefore it is easier to make decisions.

Disadvantages

• Overhead costs will increase as more managers are required .

• Lack of communication between departments

• Resources and customers are not shared among divisions

Matrix Structure

A Matrix structure features the combination of the functional structure and the product based structure, with vertical and horizontal administration processes.

Usually a Matrix structure is adopted for specific projects Coordinated by Project Managers. Functional department managers will direct their own performances.

Advantages

• It is based on expertise qualities

• High coordination and Communication skills         

Disadvantages

• Having two Leaders may create confusion and conflicts within the staff.

Multifunctional teams

A group of people who has particular skills and knowledge, coming from different divisions and brought together in order to accomplish specific problems or processes.

Companies producing soft drinks, adopting a Multifunctional team may help them improve their efficency if they plan in developing new products.

Advantages

• Maximize efficency

• Faster decision makings

• Develop motivation within the staff

Disadvantages

• Increases time for meetings, therefore costs aswell

• Divergence on loyalties among the staff

Multidivisional Structure

A Multidivisional Structure has the characteristic of having several product line or divisions. In addition, each division has a suitable organisational structure.

They are all monitored by a corporate headquarter focusing on divisional activities and the financial management for each department.

Advantages

• Clear division of labour

• Enhance strategic and financial control

Disadvantages

• Increase bureaucratic costs

• Communication barriers

• Competition for the resources

Organisational Cultures

The culture of an organisation is the personality of an organisation or the value, attitudes and beliefs of people within an organisation. Types of cultures in organisations are: Power culture, Role culture, task culture and person culture.

Power culture

A culture that is transmitted by a central figure of the organisation, they usually are owners, chairmen or founders of a company. Power culture reflects an organisation with a decentralised authority system. Power culture may reduce staffs’ motivation and limits creativity since the top

level manager has the only power to make all decisions.

Role Culture

Organisations with separate functions, may adopt a culture of role. IT has a bureaucratic system. This means that this culture is based on giving roles to each manager to look after their production line leading to improving expertise. This particular culture may be seen in organisations with functional structures.

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Task Culture

A task culture is usually seen in Matrix structures or project teams, where individuals from different divisions are put together and let them work on particular projects.

Person Culture

Person culture refers to a culture where an organisation is concerned about the interest of the individuals with in it. This Culture however rare in organisations, it can be seen in non-profits organisations or charities.

Factors which influence individual at work

It is very hard to understand what people want or what exactly they think in view of the fact that ...

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