Organisational structures and Behaviour - theory and examples from my employment experience.

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Nadim Shahbandar                Module 03

STU: 28750                Organizations and Behavior

Nadim Shahbandar

Student number: 28750

Module 03:
Organizations and Behavior

Date of Completion: November 15th 2011

Word count: 4,692

Table of Contents

Cover page        

   

   

   

   

   

   

   

   

   

Task 1

1.(a)

“Organizational structure is the pattern of relationships among positions in the organization and among members of the organization. Structure makes the application of the processes of management possible and creates a framework of order and command through which the activities of the organization can be planned, organized, directed and controlled. The structure defines tasks and responsibilities, work roles and relationships and channels of communication.” (Mullins (2005. p 596.)

A success of an organization is based on the internal operational structure. It helps determine the chain of command and reporting relationship (which can be horizontal or vertical). The different types of structures are: Functional, product-based, geographic based, and the matrix organization structure.

In a functional structure, teams are created based on corporate functions in a bottom-up manner.

 1

The different divisions (creative, accounts, etc.) are coordinated and the decision making process is centralized by the top level management. Functional managements are less product-based and more technical; the managers are skilled in their functional division and weak in areas such as, future product-business plans. The advantage of this structure is it maximizes the functional performance of each division separately and cultivates specialists within each division. From a personal experience, dealing with functional structure management is organized since each individual is assigned to a specific task, e.g. if I had any salary issues I would approach the payroll manager in the Human Resource department.

Unlike functional-based structure, a product- based structure is employed in an organization that has several product lines.

*Figure 2

The teams are organized in a set of divisions, where each division is self-contained and corresponds to the end product or service provided by the organization. Unlike functional, the division structure is mainly decentralized because the management is more skilled on product and lesser on core technical abilities. For instance Emaar Properties (my previous employer), has many products like Emaar Properties, Healthcare, Malls and etc. Since each division is operated solely focusing on a specific product/service, the overall operation proved a great success. From personal experience, I did not favor the product-based structure because of its long chain of command, I used to get affected by actions and orders from managers and directors that are by no means linked to me personally; and that made me feel devalued and unappreciated.

1.(b)

Cultural norms influence the decision making process, style of management and how everyone classifies success in the organisation. Each culture stems from different assumptions about: the basis of power and influence, what motivates people, how people think, and how change should occur. According to Kotter and Heskett (1992), “organizations with adaptive cultures perform much better than organizations with unadaptive cultures. An adaptive culture translates into organizational success.” There are four main types of organizational cultures that are mainly referred to: power, role, task and person culture.

Within a power culture, decisions are centralized around one key personnel and that key member uses their authority to run the organization. Power culture is mainly found in small/ medium sized organizations where leaders have direct communications with all employees. Good employee relations are needed in order for this type of cultures to be successful. Since there is no group work in power structured cultures, the organization can respond to dangers promptly as no consultation is involved. ContinentAd, a formal company I worked for, adapted this culture within the company. The company consisted of 30 employees that were directly controlled by the owner. During my employment in the company, I found such a culture flexible since I had to report directly to the owner which made me feel valuable. But from a personal experience the disadvantages were that (1) it was not flexible to quickly adapt to changes. (2) Lack of consultation led employees to feel de-motivated because they had no say in the operational matters which lead to a high staff turnover. Overall, having one leading power made rules and regulations understandable and unbreakable, and since the owner was controlling his values and beliefs were important to all employees since he knew the road for the company’s success.

Unlike a power-cultured organization, the task culture organization joins the right resources and employees to complete a particular task. This type of culture is mainly reflected in a matrix structure because its task oriented. It depends on labor and specialization; employees are empowered to make decisions within their team, which makes them feel valued because they hold responsibility of bringing the project to a successful end which will reflect their efforts. From personal experience, in a promotional job the main disadvantage in a task culture is jealousy and competition between team members. Every member is keen about being noticed and recognized by the managers, which created a conflict of interest that was obvious in members’ performance and the overall end result. Whether it’s a power culture or task culture, it is important that the management constantly develops the culture to suit the organizations’ operation by developing norms and regulations.

1.(c)

One of the main factors of containing a successful business is the internal culture and structure employed and adapted within the workplace. There is an existing alignment between the firm and its members which helps corroborate a consistent behavior due to a solid culture and structure in an organization. If the proper structure is set determining the hierarchy and bureaucracy of all employees allying a culture that supports this structure, motivation and performance would increase between staff members. This is because organized employees would know their duty and whom to report to.

Emaar Properties has a corporate ‘product-based’ structure and my department imposed a ‘person culture’. It was an unsuccessful alignment because I was never motivated to achieve more since the decision making process is decentralized and getting promoted isn’t expected. I was also lost with the chain of command, I did not know whether to obey my direct manager or satisfy others who are constantly intervening with our daily operations. Since the corporate structure of Emaar is ‘product-based’ and each product/department is a team on its own, a ‘task culture’ would best fit them. Since we were a service department all employees should be supervised and monitored since there isn’t a technical task to deliver. The culture that will best fit our department is a ‘role culture;’ it is the most effective way to manage a huge department. To keep us organized, our manager should have direct command and any individuals concerned with our department should discuss it with our manager rather then us. Having the power set according to a hierarchy role means each employee would consistently perform to get promoted up the line. And having organized motivated employees means an overall achievement of the department’s objectives and a success to the overall business.

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In summary, culture should be intentional shaped to suit the organizational structure employed by the management because they’re both connected. An unorganized leverage between the structure and the culture would reason employees to feel undervalued and complicated. Having an unorganized weak labor force influences the business to not achieve objectives and reach definite loss. Adopting the best fit structure and culture affects the internal performance which would influence the overall success for the organization.

1.(d)

        According to John Ivancevich and Michael Mattson, “the major factors that influence individual differences in behavioral patterns are demographic factors, abilities and ...

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