Oranisations & organisational behaviour chap 6


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Oranisations & organisational behaviour chap 6

  1. 1. Presented ByManshi Makati Taught By Asha Madam
  2. 2. Introduction In MIS an organization refers to a business organization. MIS structures and processes can be used in Business organization as well as Non –Business organizations. An organization is any functional group with defined objectives & regular activity. Eg: A company, Hospital, NGO (Non Governmental Organization) Club etc The people are arranged in hierarchical structures, with a flow of information so that the organization functions as a stable unit.
  3. 3. Organization structure refers to the way in which the people, processes,equipment & functions are arranged to fulfill the objectives of theorganization & also to provide stability to the organization and are designedto make the flow of work authority and responsibility easy and clear.This are four principles determine the structure of the organization:1. Hierarchy of authority2. Specialization3. Standardization4. Centralization
  4. 4. 1. Hierarchy of Authority:Hierarchy of authority is a pyramid A person’s place in pyramid (level of authority) is determined by the number of resources controlled, the risks allocated to that person and degree of freedom to make decisions. A layer of persons is assigned by span of control and most effective control is between four to seven persons.2. Specialization: Specialization refers to the arrangement of similar & associated tasks under one head. Eg: Manufacturing specialization refers to manufacturing product. Marketing specialization refers to all activities to market product. This principle of specialization is useful to help an organization choose the right people for right job, to plan, direct & control various functions in organization.
  5. 5. 3. Standardization: Standardization means people work on the basis of set rules, procedures, systems, guidelines & policies. Standardization avoids duplication of work, leading to fewer number of people employed & thus a leaner, more profitable organization.4. Centralization: When most decisions are made at one point in the organization, it is referred to as Centralization. Centralization enables decision making to be Coherent & thus helps to keep the organization focused on its goals.
  6. 6. Chief Executive Manager Manager Commercial TechnicalExecutive Executive ExecutiveMarketing Finance Production
  7. 7. Organizations may be broadly classified as Business Organizationsand Non – Organizations.I. Manufacturing Organizations: These business organization are involved in the manufacture of product. MIS needs in such an organization are typically for information on state of production, level of inputs, quality of raw materials & finished products, etcII. Service Organizations: These are involved in providing a service to customers. These include Hotels, Restaurants, Telephone Services etc. Modern service organizations are also highly dependent on technology, such as ATMs in Banking , Wireless Technology etc. MIS needs in such an organization are both technical as well human in nature.
  8. 8. Additional organization may also term as Organization Structure: Functional Organization: It is one where most of the functions are equal importance. An information is not shared in a cross functional manner, but is collected at the chief executive level and then sent down to other functional areas. A Project Organization: It is one where the business activity is one – time in nature & non – repetitive. Eg: Building industry, where each set of residential/ commercial building is treated as a project. In such an organization, business activity is one – time in nature & has an effect on subsequent business activities. A Matrix Organization: It refers to an organization where information flow is vertical as well as horizontal.
  9. 9. In this section we shall deal with decision making processpertaining to an organization.They are organized into functional units, and then report to acontrolling unit (manager) which may have different goalsaltogether.Thus, the organization becomes a hierarchy of goals, many ofwhich may be in conflict with each other.Decision making is usually about the resolution of conflict.
  10. 10. Some methods of conflicts resolution are:1) Allow local rationality in setting of goals: Where functional interdependence is at a minimum, goals of individual functional units do not greatly affect the corporate goals. E.g.: Security Department, Legal Department, etc2) Decision Making Rules & Systems: Functional units are given a set of rules & systems within which they are permitted to set their goals. Certain goals may be set by top management, while the unit may have autonomy in framing other goals. E.g.: Production, Sales & Materials functions are interdependent and may need to given rules and procedures for goal setting.3) Sequential Achievement Goals: Functional units may be permitted to achieve their goals in sequential manner. This may involve having to ignore conflicting goals within a certain limit.
  11. 11. The term Information Flow implies that information is not static, itmust flow between points in an organization.The flow of information is dependent on the structure of theorganization.Information flows upwards in all organization, but whether it alsoflows horizontally / vertically / top /down depends on the way theorganization is structured.The program or process may be shared with each other teams withIntention of making the overall business unit more successful.
  12. 12. ORGAINZATIONAL BEHAVIOROrganizational Behavior refers to the behavior of the organization asa whole as well as of individual units within the organization.An organization is composed of individuals with different goals &their functional areas. Organizational Behavior is the outcome of the following factors:• Organizational Culture• Organizational Power• Organizational Change• Organizational Learning• Organizational Motivation• Attitude
  13. 13. Organizational Behavior is the outcome of the following factors:A. Organizational Culture: It a collective behavior of people in an organization, based on set of attitude, beliefs, norms, values and understanding. Organizational culture affects the norms of quality & acceptable behavior within the organization, when standard of quality are high and are adhered within the organization, it said to have a quality culture.B. Organizational Power: It refers to the organizations ability to utilize human, material and technological resources to achieve the stated goals of the organization.On an individual level, there are two kinds of power in an organizationalcontext. Positional Power which arises as a result of the position a person occupies in an organization. Personal Power which comes about as a result of the personality of the individual.
  14. 14. C. Organization Learning: Over a period of time, individuals in an organization gather experiences which enable them to anticipate and react to changes in the environment. This learning & behavior modification affects the structure of the organization, leading to greater degree of formalization.D. Organizational Motivation: It refers to the process of getting people to perform to their maximum extent in order to achieve organizational goals. Monetary rewards, citation awards, job security, etc are some of methods of motivating people. Leadership style also affects the motivation of the people within an organization; such leadership style creates an atmosphere of openness & trust to achieve more. Job Environment is another factor that affects organizational motivation, if a person is allowed to “own” a particular process, he tends to take greater pride in his work and thus performs better.
  15. 15. E. Attitude: Attitude can be said to be the organizational Culture & Motivation in the organization. The level of motivation in the organization affects the attitude of the people within the organization. Every action taken by management will have seen to be a means to exploit the workforce and the people within the organizational will not be willing to give their best in terms of performance. This element that most affects motivation & ultimately productivity.
  16. 16. A Note on Management StyleIt would be wise to study these two styles in greater detail with a viewto ultimately instituting a workable MIS in the organization, whichwould fit in with the particular style within the organization. Autocratic: In such style, the leader / manager determines policy & directs the activity required to carry it out. He rarely gives reason for orders and commands are enforced by the leader’s ability to reward or punish. Information flow in an organization can be upward with very little information flowing downward. Autocratic style usually seen in traditional, family run businesses. Supportive: In such style, the leader / manager solicits suggestions from others & invites participation in decision making. They are aware of the impact of decisions on subordinates & generally consult them for inputs on such decision. Information flow in organizations in an organization is usually top down as well as bottom up. Supportive have greater information flow between functional areas, leading to horizontal information flow as well. In such organization subordinates are encouraged to use initiative.