Final ob


Published on

Published in: Business
1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Final ob

  1. 1. BehaviorStructure, Processand Design Somanath An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. An organization can be structured in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs. Achievers InstituteB.E.M.L 5th Stage, RR Nagar, Bangalore +917204678798[Type the fax number] 11/27/2011
  2. 2. Behavior Structure, Process and Design CONTENTS TITLES PAGE NO7.1. Behavior Structure 17.2. Organization Culture 17.3. Organizational Development 97.4. Organization Process/Structure 167.5. Dimensions Of Organization Structure 197.6. Organizational Design 227.7. Traditional Organizational Structure 267.8. Contemporary Organizational Designs 33Department of MBA, Govt RC college Page 2
  3. 3. Behavior Structure, Process and Design 7.1 - BEHAVIOUR STRUCTUREBehavior structure of organization deals with : 1) Organization Culture 2) Organization Development7.2 – ORGANIZATION CULTURE :7.2.1 - Meaning and Definition of Organizational Culture Organizational culture is accumulated tradition of the organizationalfunctioning. It is based on certain values, norms and positive attitudes of anorganization. Organizational environment becomes a culture if it is used formotivating people to avoid any friction and adopt the valuable tradition of theorganization. The success of any organization depends on the culture, as it is theinvisible power governing the organization.According to O‟Rellly,” Organizationalculture is the set of assumptions, beliefs, values and norms that are shared by anorganization‟s members”.TABLE: Formal components of Organizational Culture :1) Mission/vision The milestones to be Could be unrealistic. reached.2) Policies Statements designed to Policies, if not drafted be guidelines to properly can provide behavioral decision. leeway.3) Procedures Methods of providing Can facilitate or specific guidelines. create obstacles in smooth functioning.Department of MBA, Govt RC college Page 3
  4. 4. Behavior Structure, Process and Design4) Rules Specific Instructions for Rules could be a performing a task. means or an end in themselves.5) State f Organizational Organization at young, Stage of development. growing, maturing or organizational mature stage of development has development direct impact on work culture.7.2.2 - Characteristics of Organizational Culture : 1) Individual initiative. 2) Risk Tolerance. 3) Direction. 4) Integration. 5) Management Support. 6) Control. 7) Identity. 8) Reward system. 9) Communication Patterns.7.2.3 - Functions of Organizational Culture:- 1) Organization is recognized by its culture. Whenever people name an organization, the culture attached to the organization is immediately remembered. One organization is immediately remembered. One organization is distinctively different from other organizations by its culture.Department of MBA, Govt RC college Page 4
  5. 5. Behavior Structure, Process and Design 2) Organizational Culture makes the boundary beyond which no employees are permitted to go. They automatically adopt the limit known as a cultural limit. 3) A number of organizations are well recognized by the culture. They are given a sense of pride and identity by the public. 4) Organizational culture provides the facilities for self-satisfaction. Employees get internal satisfaction with an esteemed culture. People are more satisfied this way than when their individual interests are fulfilled. 5) The culture of an organization provides its stability. People prefer to continue with the organization. Employees, customers, financiers and other related persons prefer to remain with the organization. 6) The social recognition of the organizational culture makes the organization grow and develop in all dimensions. 7) Employees get an opportunity to set the standards of performance. They try to achieve the standards. It becomes a self-control mechanism which helps the organization to grow and flourish. 8) The attitude and the behavior of the employees are directed towards the achievement of goals through a sound culture. 9) Organizational culture acts as a motivator that guides and controls the employees.7.2.4 - ELEMENTS OF CULTURE:- Artifacts: artifacts are the physical things that are found that have particular symbolism. Stories, histories, myths, legends, joke. Rituals, rites, ceremonies, celebrations.Department of MBA, Govt RC college Page 5
  6. 6. Behavior Structure, Process and Design Heroes: idealized examples by which cultural members learn about the „perfect behavior‟. Symbols and symbolic actions: symbols can also be used to indicate status within a culture. This includes clothing, office décor and so on. Beliefs, assumptions and mental models. Attitude. Rules, norms, ethical codes and values.7.2.5 - LEVELS OF ORGANIZATION CULTURE: According to Edgar schein organizational culture has three levels. These are: 1) Observable Artifacts: These are the symbols of culture in the physical and social work environment and are most visible and accessible. Among he artifacts of culture are the following:- i. Organizational heroes: As a reflection of the organization‟s philosophy, this dimension concerns the behavior of organizational members, specially the behavior of top management and their leadership styles. ii. Ceremonies and rites: This reflects the activities that are enacted repeatedly on important occasions. iii. Stories: Lavin son and Rosenthal suggest that stories and myths about organization‟s heroes are powerful tools to reinforce cultural values throughout the organization an specially n 0rienting new employees. iv. Cultural Symbols: Certain code of dress or a company logo can reflect its values and orientations.Department of MBA, Govt RC college Page 6
  7. 7. Behavior Structure, Process and Design 2) Shared Values: Values reflect a person‟s underlying belief as to what should be and what should not be. Values are what those principles and qualities that shapes our thinking and behavior. 3) Common Assumptions: These are deeply held beliefs that are not objectively observable but manifest themselves in the behavior of people so strongly that any violation of such beliefs would be unthinkable.7.2.6 - PROCESS OF CREATING ORGANIZATIONAL CULTURE:- Organizational culture is a long-term proposition that must satisfy themembers needs and values and match the cultural requirements of the society ofwhich the organization is a part. Therefore, the organization has to develop aculture which is conducive to both the members in it and social culture. Establishing Operationalizing Socialization of Creating vision values values and vision employees Figure: 1 Process of organizational cultureDepartment of MBA, Govt RC college Page 7
  8. 8. Behavior Structure, Process and Design7.2.7 - MAINTAINING ORGANIZATIONAL CULTURE:- After the organizational culture is created and developed, the next step is tomaintain it. Careful Start selection of entry Deselct level candidates Consistent role model Humility inducing experiences promote openess towards accepting organizational In-the trenches training leads to norms and values. mastery of a core discipline. Reinforcing Rewards and control Adherence to values systems are meticulously enables the refined to einforce reconciliation of personal behavior that is deemed sacrifces vital to success in the market place. Figure 2: Model of managing Organizational Culture 1) Selection of Entry-Level Personnel 2) Placement on the Job. 3) Job Mastery. The emotionally balanced employees easily adjust and encounter the initial cultural shock and concentrate on mastery of their jobs. Superiors and trainers help the employees in this process.Department of MBA, Govt RC college Page 8
  9. 9. Behavior Structure, Process and Design 1) Measuring and Rewarding Performance: - Employees performance is measured and rewarded based on performance. 2) Adherence to Core Values:- At this stage, the employees are inspired and encouraged o adhere to the company‟s core values even by sacrificing their personal comforts like missing weekends, working long hours and taking up inconvenient job assignments. 3) Reinforcing the Stories and Folklore: At this stage, companies reinforce organizational folklore. 4) Recognition and Promotion: Management maintains culture by recognizing and promoting the employees who serve as role models in implementing the cultural values.7.2.8 - MERITS OF ORGANIZATIONAL CULTURE:- 1) Culture keeps the people together and increases the cohesiveness or bondage among its members. 2) Culture performs boundary- defining role. 3) It conveys a sense of identity among the members. 4) It creates a social system of shared values.7.2.9 - DEMERITS OF ORGANIZATIONAL CULTURE:- 1) When the organization is operating as a dynamic environment, culture does not allow the organization to change in accordance with the environmental demands. 2) New entrants bring diversified cultures into the organization. But the strong cultures demand new employees to confirm to its values rather than modifying it through their diversified culture, whatsoever their merits may be.Department of MBA, Govt RC college Page 9
  10. 10. Behavior Structure, Process and Design 3) Many business alliances like mergers and acquisitions, today, are tending towards divorcé due to the strong cultures of the partners to the alliance. Thus, change in organizational culture is necessary in order to allow the organization o change in accordance with the environment and to act as a change agent to the environment.Department of MBA, Govt RC college Page 10
  11. 11. Behavior Structure, Process and Design 7.3 – ORGANIZATION DEVELOPMENT7.3.1 – Meaning and Definition Theory and practice of planned, systematic change in theattitudes, beliefs,and values of the employees through creation and reinforcement of longterm training programs. OD is action oriented. It starts with a careful organizationwide analysis of the current situation and of the futurerequirements, andemploys techniques of behavioral sciences such as behavior modeling, sensitivitytraining, andtransactional analysis. Its objective is to enable theorganization inadopting-better to the fast-changingexternal environment ofnew markets, regulations, and technologies.7.3.2 - Objectives of Organizational Development: As objectives of organizational development are framed keeping in viewspecific situations, they vary from one situation to another. In other words, theseprograms are tailored to meet the requirements of a particular situation. Butbroadly speaking, all organizational development programs try to achieve thefollowing objectives:• Making individuals in the organization aware of the vision of the organizationOrganizational development helps in making employees align with the vision ofthe organization.• Encouraging employees to solve problems instead of avoiding them.• Strengthening inter-personnel trust, cooperation, and communication for thesuccessful achievement of organizational goals.• Encourage every individual to participate in the process of planning, thus makingthem feel responsible for the implementation of the plan.• Creating a work atmosphere in which employees are encouraged to work andparticipate enthusiastically.Department of MBA, Govt RC college Page 11
  12. 12. Behavior Structure, Process and Design• Replacing formal lines of authority with personal knowledge and skill.• Creating an environment of trust so that employees willingly accept change.According to organizational development thinking, organization developmentprovides managers with a vehicle for introducing change systematically byapplying a broad selection of management techniques. This, in turn, leads togreater personal, group, and organizational effectiveness.7.3.3 - Organizational Development ProcessThe organizational development process consists of three major steps: diagnosis,intervention and evaluation. These steps are similar with the planned changeprocess, since organizational development is actually a specialized type of changeeffort. An organizational development process is most likely to be initiated whentop management believes that there are deficiencies in the way the overallorganization is functioning.Diagnosis: The first step involves diagnosis of the present situation. Change agentscollect the required information through interviews, questionnaires, internaldocuments, records, and reports. Usually, a diagnostic strategy is developed usingtwo or more methods of data collection after their respective strengths andweaknesses have been considered.Intervention: After the situation is diagnosed, organizational developmentinterventions or change strategies can be designed and implemented with the helpof a change agent. Some of the organizational development intervention techniquesare:Department of MBA, Govt RC college Page 12
  13. 13. Behavior Structure, Process and Design• Process consultation: This is concerned with interpersonal relations andfunctioning of work groups. The organizational development change agentobserves the group and gives feedback regarding dysfunctions in areas of decisionmaking, handling conflicts, and communication patterns.• Team building: This technique is used to help work groups become effective inperforming their tasks. The organizational development consultant helps inassessing group tasks, member roles, and strategies for accomplishing work tasks.• Third-party intervention: Here, organizational development consultants helpthe parties concerned to resolve their differences through techniques like problemsolving and conciliation.• Survey Feedback: In survey feedback, data gathered through surveyquestionnaires and personal interviews are analyzed, tabulated into understandableform and shared with those who first supplied the information. Survey feedbacklets people know where they stand in relation to others on important organizationalissues thus helping them resolve conflicts in a constructive manner. Effectivefeedback should be relevant, understandable, descriptive, verifiable, and inspiring.• Techno structural activities: This technique is used to improve work technologyand organization structure. It is intended to help employees evaluate themselvesand to make appropriate changes in task design, work methods, and organizationstructure.• Skill development: This technique is used to help employees identify theirshortcomings and overcome their deficiencies. It is used to improve performancein areas such as delegation, problem solving conflict resolution, and leading.Department of MBA, Govt RC college Page 13
  14. 14. Behavior Structure, Process and DesignEvaluation: Since organizational development is directed towards long-termchange, organizational development programs have to be monitored on a regularbasis. An accurate evaluation of organizational development interventions isdependent on the accurate diagnosis of the current situation and the clearidentification of the desired results.7.3.4 - Benefits of Organizational Development Could your business or organization benefit from high efficiency andproductivity? Are you working geared towards improving team effectiveness,customer service and team quality? Well, organizational development is designedto help you improve on these areas, through performance improvement techniques.1. Environmental impactOrganizational development aims to create job satisfaction, which is equals lifesatisfaction. We all know that the workplace environment plays a role on how weexecute our set of responsibilities. In the same way that employment is importantfor the employees, job satisfaction directly influences life satisfaction as well.2. Reduces absenteeismAccording to recent findings, satisfied employees tend to be present often. Somecases of absenteeism might be due to medical reasons. However, organizationaldevelopment helps to predict involuntary absenteeism like surgery, and is doneaway with through physical exams.3. Improves quality and productivityThe major benefit of organizational development is that it helps improveproductivity, as well as quality. Improving quality means your business has aDepartment of MBA, Govt RC college Page 14
  15. 15. Behavior Structure, Process and Designcompetitive edge over other competitors. Additionally, it increases productivitywhich helps in making quality products; thereby there is no need for rework.4. Encourages self-improvementThere are numerous benefits associated to personnel training. For this reason, it isessential to consider organizational development as a training tool for business andindividual self-development and improvement.5. Helps in conflict resolutionWith organizational development, conflict is resolved constructively in such a waythat promotes innovation, and does not interfere with productivity. Additionally,employees are compensated for success to improve their productivity.6. Encourages open communicationCommunication is open, vertically and laterally, and all feelings and facts areshared. This proves to be an effective strategy since it allows employees to learnfrom personal experience.Apart from having numerous benefits, organizational development also has itsshare of disadvantages as well. It is expensive and time consuming since everyemployee has to undergo extensive training.7.3.5 – Limitations of Organization Development :1. Organisation development can be no more powerful than the behaviouralscience concepts on which it rests. Behavioral science itself has various limitations,and these are applicable to OD also.Department of MBA, Govt RC college Page 15
  16. 16. Behavior Structure, Process and Design2. There are some persons, specially complacent ones who are not prepared toapply diligence of effort for improvement and the methods of work involved in ODare sometimes not of sufficient strength to challenge the motivation of highlycomplacent people.3. Task of the organisation and the characteristics of its membership also putlimitation on the effectives of OD. Thus OD cannot be applied without giving dueregard for the local circumstances existing within any given organisation. Forexample, Research and Development a organisations are less responsive to changepotential of OD. It may be emphasised here that, as with any new strategy, some criticismsare justified because of mistakes. However, OD can be treated as a more in thecorrect direction.7.3.6 - Organization Development Interventions: OD interventions are plans or programs comprised of specific activitiesdesigned to effect change in some facet of an organization. Numerousinterventions have been developed over the years to address different problems orcreate various results. However, they all are geared toward the goal of improvingthe entire organization through change.In general, organizations that wish to achieve a high degree of organizationalchange will employ a full range of interventions, including those designed totransform individual and group behavior and attitudes. Entities attempting smallerchanges will stop short of those goals, applying interventions targeted primarilytoward operating policies, management structures, worker skills, and personnelpolicies.Department of MBA, Govt RC college Page 16
  17. 17. Behavior Structure, Process and DesignOD interventions can be categorized in a number of ways, including function, thetype of group for which they are intended, or the industry to which they apply. Infact, W.L. French identified 13 major "families" of interventions based on the typeof activities that they included—activity groups included teambuilding, surveyfeedback, structural change, and career-planning. Figure An Action Research Model for Organizational DevelopmentDepartment of MBA, Govt RC college Page 17
  18. 18. Behavior Structure, Process and Design 7.4 - ORGANIZATION PROCESS/STRUCTURE Organization structure refers to hierarchical arrangement of variouspositions in the enterprise. It also defines the relationship between variouspositions, departments and persons. It helps in allocating authority andresponsibility formally and decides who is to report whom and who is direct towhom. It defines the position of the persons in the organization.7.4.1-Features of good Organization Structure: 1. Simplicity 2. Flexibility 3. Clear Line of Authority 4. Application of ultimate Responsibility 5. Proper Delegation of Authority 6. Minimum possible managerial levels 7. Principles of Unity of Direction and command 8. Proper Emphasis on Staff 9. Provision for Top Management7.4.2-Importance of Organizational Structure : 1. Specialization 2. Well Defined Jobs 3. Clarifies Authority and Power 4. Avoiding Duplication of work 5. Co-ordination 6. Source of Support and Security 7. AdoptionDepartment of MBA, Govt RC college Page 18
  19. 19. Behavior Structure, Process and Design7.4.3- Role of Organization Structure : 1. Facilitating Management Action 2. Encouraging Efficiency 3. Communication 4. Optimum Use of Organization Resources 5. Stimulating Creativity 6. Job Satisfaction7.4.4-Determinants of Organization Structure: Environment Organizational Technology Strategy Structure Size1) Environment : Organizations are open systems that continuously interact with the outside environment. The macro-environment of business today has considerable impact on the internal operations of the organization, especially if the organization is a large one. These external factors include the customers, cultural and economic conditions as well as international environment. The organizational structure would depend upon whether there are dynamic and rapid changes in it.2) Technology : It is the combinations of tools, techniques and know-how and has major influences on organizational structure that would depend upon whether the technology is simple and routine requiring few repetitive tasks.Department of MBA, Govt RC college Page 19
  20. 20. Behavior Structure, Process and Design3) Size : The size of the organization is measured by the number of people working in the organization would determine as to which type of structure would be more effective for it.4) Strategy of the Organization : It is defined as “the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.”Department of MBA, Govt RC college Page 20
  21. 21. Behavior Structure, Process and Design 7.5 – DIMENSIONS OF ORGANIZATION STRUCTURE7.5.1 - Work specialization Work specialization (also called division of labour) is the degree to whichorganizational tasks are sub-divided into individual jobs. With too muchspecialization, employees are isolated and do only a single, tiny, boring job. Manyorganizations enlarge jobs or rotate assigned tasks to provide greater challenges.7.5.2 – Departmentalization : Departmentalization is the basis on which individuals are grouped intodepartments and departments into total organizations. Approach options include: 1. Functional - by common skills and work tasks 2. Divisional - common product, program or geographical location 3. Matrix - combination of Functional and Divisional 4. Team - to accomplish specific tasks 5. Network - departments are independent providing functions for a central core breakerFew Common Types of Departmentalization : Functional departmentalization Product departmentalization Customer departmentalization Geographic departmentalization Process departmentalizationDepartment of MBA, Govt RC college Page 21
  22. 22. Behavior Structure, Process and Design7.5.3 - Span of management : Factors influencing larger span of management. 1. Work performed by subordinates is stable and routine. 2. Subordinates perform similar work tasks. 3. Subordinates are concentrated in a single location. 4. Subordinates are highly trained and need little direction in performing tasks. 5. Rules and procedures defining task activities are available. 6. Support systems and personnel are available for the managers. 7. Little time is required in non-supervisory activities such as coordination with other departments or planning. 8. Managers personal preferences and styles favour a large span.7.5.4 - Authority, responsibility, and accountability : Authority is a managers formal and legitimate right to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes. Responsibility means an employees duty to perform assigned task or activities. Accountability means that those with authority and responsibility must report and justify task outcomes to those above them in the chain of command.7.5.5 - Delegation Of Authority : Delegation is the process managers use to transfer authority andresponsibility to positions below them. Organizations today tend to encouragedelegation from highest to lowest possible levels. Delegation can improveflexibility to meet customers‟ needs and adaptation to competitive environments.Managers often find delegation difficult.Department of MBA, Govt RC college Page 22
  23. 23. Behavior Structure, Process and DesignTypes of authority (and responsibility) : Line authority Functional authority Staff authority7.5.6 - Centralization, decentralization, and formalization : Centralization - The location of decision making authority near top organizational levels. Decentralization - The location of decision making authority near lower organizational levels. Formalization - The written documentation used to direct and control employees.Department of MBA, Govt RC college Page 23
  24. 24. Behavior Structure, Process and Design 7.6 - ORGANIZATIONAL DESIGN7.6.1 – Meaning of Organizational Design : It is the design of an Organizational structure where organizational structureis the design of the pattern of positions and functions in the organization.Organizational design includes structure as well as the design of the organizationalprocess of work, in particular decision making process.7.6.2 - Factors to be considered while Designing Organizational Structure : While designing a structure, the following points should be given adequateconsideration.1.Departmentation: Departmentation is the process of arranging work to formpositions functions, and other organisational elements.There are several ways ofdepartmentation. However, any base should provide facility in co-ordination advantages of specialisation, minimum cost, emphasise on important activities, consideration of internal and external factors, and external factors, and development of individuals. Departmentation is not a fixed pattern, it should be checked and analysed from time to time to make necessary adjustment according to changes in internal an external variables.2. Balancing. Each function should be given its proper emphasis with respect to itsbasic purpose in the organisation. Each element of the organisation should be seenDepartment of MBA, Govt RC college Page 24
  25. 25. Behavior Structure, Process and Designin the context of total structure because no decision can be taken on a particularelement in isolation. Compromise in various elements gives a balanced andworkable organization structure.3.Focusing of Operating Responsibility. The work assignment createsresponsibility. Organisation structure should clearly define the responsibility of allthe individuals so that they exactly know what is expected of them. Clearly definedresponsibility helps in delegating appropriate authority to various level. Moreover,when responsibility is clearly defined, the persons can be trained accordingly tooccupy the position.4. Establishing Span. Span of management, supervision, or control refers to thenumber of people one manager can supervise. There is a limit on this number;however, arbitrary designation of limits on number is misleading. In practice, thespan may vary widely because a number of factors determine this. The span shouldbe decided on the basis of its needs at various levels of organisation5. Facilitating Units. Departmentation and responsibility centres provide as towho will perform the work. The persons heading the responsibility centres need thehelp of facilitating units which are created in the organisation. These units may beorganised in the form of departments, sectors, or committees. In organising theseunits, factors like co-ordination of operating units, consistent action throughout theorganisation, provision for adequate importance and control, and common use ofspecialised facilities should be considered.6. Continuity. The structure is determined for future period also. As such, itshould be designed in such a way that it helps in achieving the objectives of nearDepartment of MBA, Govt RC college Page 25
  26. 26. Behavior Structure, Process and Designfuture also. For this purpose, the structure should be kept flexible enough so that itcan be adjusted to changing conditions.7.6.3 – Importance of Organizational Design :1. Dealing with contingencies. A contingency is an event that might occur andmust be planned for such as a changing environment.2. Gaining Competitive Advantage. Increasingly, Organizations are discoveringthat organization design is a source of sustained competitive advantage.3. Managing Diversity. Differences in the race, gender, and national origins of theorganizational members have important implications for the values of anorganization‟s effectiveness.4. Efficiency and Innovation. Organizations exists to produce goods and servicesthat people value. The better organization function, the more value.7.6.4 – Models of Organizational Design :1. Mechanistic Model: i. Extensive Departmentalization ii. High Formalizationiii. A limited information networkiv. Centralization2. Organic model: i. Cross Hierarchical and cross functional teams ii. Low formalizationiii. Comprehensive information networkiv. High participation in decision-makingDepartment of MBA, Govt RC college Page 26
  27. 27. Behavior Structure, Process and Design7.6.5 – Types of Organizational Structure :1) Traditional Organizational structure/Design2) Contemporary Organizational DesignsDepartment of MBA, Govt RC college Page 27
  28. 28. Behavior Structure, Process and Design 7.7 - TRADITIONAL ORGANIZATIONAL STRUCTURE 1. Line or military organization 2. Line and staff organization 3. Functional Organization 4. Divisional Organization1.Line or Military Organization : It is the one in which all managers have direct authority over their respectivesubordinates through the chain of command. Authority flows directly from top tobottom through various managerial positions. Each superior is and who authorityto issue order.Features of Line Organization :  It is a simple type of organization.  Only one form of authority viz line authority exists in this form of organization.  The authority relationships are clearly established.  All the managers in the line organizations have full authority to decide things to act with respect to their respective function.  In this Line Organization, departments are created for basis activities each of which is self continued as the related services are also part of the activities of the departmental heard.Advantages of Line Organization: 1. Simplicity 2. Identification of authority and responsibility 3. Co-OrdinationDepartment of MBA, Govt RC college Page 28
  29. 29. Behavior Structure, Process and Design 4. Effective Communication 5. Quick Decisions 6. Unity of Command 7. Effective Control and supervision 8. Executive Development 9. FlexibilityDisadvantages of Line Organization: 1. Excess work 2. Lack of specialization 3. Lack of Co-ordination 4. Improper Communication 5. Favoritism 6. Lack of initiative 7. Instability2. Line and staff Organization :The line and staff organization refers to an organization in which two type ofauthority relationships coexist they are direct or line authority and advisoryauthority.The line authority flows downward And staff authority plows upward : 1. Executive assistant to the managing director 2. Legal Advisor to the Organization 3. Quality control manager 4. Personnel OfficerDepartment of MBA, Govt RC college Page 29
  30. 30. Behavior Structure, Process and DesignTypes of Staff :1.Personal Staff : Personal Staff means a person who assists another person in the performanceof a work effectively under such circumstances the work of the line officer‟s couldnot be delecated to others.2.Specialized Staff: The Specialized Staff officer‟s render service to the line officer‟s at all levelsof the organization. The specialized staff officer offer advice with some limitedprovisions. These provisions are imposed by the management.3.General Staff Assistant: General Staff assistant are a group of person‟s who are rendering services asadvisors to top management in specialized matters. The primary feature of thegeneral staff is that they give advice regarding overall plans and policies of theorganization. But they are not specialized in any area.Functions of Staff:1. The Staff officers assists the line officers in the planning of business activity.2. The board of directors frame the policies of the business on the basis ofrecommendations given by the staff officers.3. The managers can get the advice from the staff officers regarding theselection, training, placement and remuneration fixation of the personnel.4. Staff officers of a department help the manager in the preparation of budget ofthe department.Department of MBA, Govt RC college Page 30
  31. 31. Behavior Structure, Process and DesignAdvantages of Line and Staff Organization:1.Specialization2.Better Discipline3.Balanced and Prompt Decisions4.Growth and Expansion5.Development of Employees6.Lesser Burden on Line OfficersDisadvantages of Line and Staff Organization:1.Conflict between Line and Staff Organization.2.Lack of Responsibility.3.More dependence on staff.4.Lack of co-ordination.5.Ineffective staff.6.Expensive.Department of MBA, Govt RC college Page 31
  32. 32. Behavior Structure, Process and Design3. Functional Organization: It is the type of organization where line,staff and functional authority existtogether. It is limited form of the line authority given to functional experts overcertain specialized activities under the normal supervision of mangers belonging toother departments. Managers who are given functional authority have the right toissue directives on matters over which they do not have direct line authorityotherwise.Features of Functional Organization: 1. It is more complex organization than line organization and line and staff organization. 2. Three types of authority relationships exists. 3. More importance is given to the staff specialists. 4. The principle of unity of command does not apply to this form of organization,managers and others get instruction from more than one superior.Advantages of Functional Organization:1.Specializaion.2.Increase in Efficiency3.Scope for Growth4.Flexibility5.Relief to top Executives6.Economy of OperationsDepartment of MBA, Govt RC college Page 32
  33. 33. Behavior Structure, Process and Design7.Better Supervision8.Democratic controlDisadvantages of Functioinal Organization:1. Conflict in authority2. Lack of co-ordination3. Difficulty in fixing responsibility4. Delay in taking Dicisions5. Poor Descipline6. Expensive7. Group Rivelris8. Application of Expert Knowledge9. Mass production10. Economy11. Complex Relationships12. CenralizationDepartment of MBA, Govt RC college Page 33
  34. 34. Behavior Structure, Process and Design4. Divisional Structure : The second basic structure form employed by organizations is the divisionalstructure. While growth through expansion of some line of business forces a smallorganization to recognize on functional basis,growth through gographic andproduct diversification necessitates the adoption of divisional structure.Advantages of Divisional Structure : 1. Divisional structure emphasizes on the end result,that is, on product,or customer through which revenue is generated in the organization. 2. Since a division focuses its attension on a particular product or service,its performance measurement is easier as the performance can be measured in the light of contributions made by the division. 3. There is a high level managerial motivation because managers work in the environment of autonomy. 4. Through divisional structure,more managers with general outlook can be developed who can easily take up the job at the corporate level. Thus there is no problem in managerial succession. 5. Organizational size can be increased without any as new divisions can be opened without disturbing the existing system.Disadvantages of Divisional Structure : 1. It is quite costly because all the facilities have to be arranged for each other. 2. Lack of emphasis of functional specialization. 3. Lack of Managerial personnel. 4. Control system is major problem of divisionalization.Department of MBA, Govt RC college Page 34
  35. 35. Behavior Structure, Process and Design 7.8 - CONTEMPORARY ORGANIZATIONAL DESIGN7.8.1-Project Mnagement :Features Of Project Organization: project organization has been found to be of great great use under thefollowing situations: 1. The company gets one time assignments or a big contract in addition to its regular activiteis. The assignment should be definable in tern of a single, specific goal. 2. The assignment or project is unique. Infrequent and unfamiliar to the present organization. 3. The project is complex and calls for high degree of interdependence among the tasks. 4. The project assignment to be completed within the time limit prescribed by the client. There may be a penalty clause if the project is not completed in time. 5. Successful completion of the project is essential as the image of the company is at stake.Advantage of project organization: The advantage of project organization are as follows: 1. Project organization can be tailored to meet the requirements of a particular project. It enables the organizations to adopt to environmental demands particularly when environmental factors are fast changing.Department of MBA, Govt RC college Page 35
  36. 36. Behavior Structure, Process and Design 2. Project organization allows maximum use of specialized knowledge available with the organization, Specialists gets higher satisfaction while working on complex projects. Knowledge and skills can be transferred from one particular project to another.Limitations of project organization: A project manager has to face unusual problems resulting from the projectorganization. Following problems are usually experienced in project organization: 1. Project organization creates a feeling of insecurity and uncertainty among people in organization. It is an adhoc arrangement with limited life. Therefore, a question comes in mind of people what will happen after the project is over. 2. People are not able to identify themselves with any particular department of organization because they do not have permanent tenure with any project. Thus there is lack of loyalty and feeling of belongingness in people towards organization. 3. The project manager has to deal with specialist from a number of diverse field. The specialists often have different types of orientations and interests. 4. The job of the project manager becomes difficult because of lack of clearly defined responsibility, lack of clear communication pattern and lack of standards of performance of various professionals. 5. Decision making is made very difficult because there are unusual pressures from diverse fields.Department of MBA, Govt RC college Page 36
  37. 37. Behavior Structure, Process and Design7.8.2-The Matrix Design : Very popular organization design is the “Matrix design”. This designcombines two forms departmentalization.  Functional  ProductThe matrix design attempts to gain in the strength of both these forms ofdepartmentalization while avoiding the weakness.Advantages of matrix design : 1. It facilitates coordination when the organization has a multiplicity of complex and independent activities. 2. The direct and frequent contact between different experts in the matrix can provide for better communication and more flexibility. 3. The matrix reduces the drawbacks of bureaucratic design. The dual lines of authority reduces the tendency of departmental heads to put their departmental goals first before the organizational goals. 4. The matrix facilitates the efficient allocation of specialists. When individuals who are specialists in particular lodged in the functional department or product group, their talents are monopolized and underultilized.Disadvantages of Matrix design : 1. The matrix design creates the confusion in the organization. When there is a dual chain of command, ambiguity increases and ambiguity leads to conflict. 2. The matrix has the propensity to foster power struggles. In bureaucracy, the rules of the game are defined which reduces the potential for power grabs.Department of MBA, Govt RC college Page 37
  38. 38. Behavior Structure, Process and Design 3. This design put a lot of pressure and stress on the individual employees. Dual unity of command introduces role conflicts and unclear expectations introduce role ambiguity.7.8.3-Horizontal Organizations : Horizontal designs replace the traditional vertical, hierarchical organization,The advanced information technology and globalization environment, suggests theuse of horizontal structure to facilitate cooperartion,teamwork, and a customerrather than functional orientation.The following guiding principles that define horizontal organization design : 1. Organization revolves around the process, not the risk 2. Hierarchy is flattened 3. Teams are used to manage everything 4. Customers Drive Performance 5. Team performance is rewarded 6. Supplier and customer contact is maximized 7. All employees need to be fully informed and trainedDepartment of MBA, Govt RC college Page 38