This document discusses organizational structure and design. It covers several key topics: 1) It defines an organization as a group of people with common goals and objectives, and examines an organization's structure, levels (strategic, tactical, operational), and features. 2) It explores systems views of organizations and different types of organizational structures proposed by Mintzberg. 3) It analyzes open systems approaches to organizations and chaos theory as they relate to organizational complexity. 4) It addresses organizational design, including division of labor, strategic design, and bureaucratic vs behavioral models. It also discusses analyzing organizational culture in design.

1. Copyright © 2011, Oxford University Press, India Dipak Kumar Bhattacharyya
Dipak Kumar Bhattacharyya, DirectorDipak Kumar Bhattacharyya, Director
Camellia School of Business Management, KolkataCamellia School of Business Management, Kolkata
ORGANIZATIONAL CHANGE ANDORGANIZATIONAL CHANGE AND
DEVELOPMENTDEVELOPMENT

2. Copyright © 2011, Oxford University Press, India Dipak Kumar Bhattacharyya
Chapter-1
Understanding Organizational Systems,
Structure and Design

3. Copyright © 2011, Oxford University Press, India Dipak Kumar Bhattacharyya
• Organization is made of group of people with some specific goals and
objectives. It is defined as relations among components of a system.
• Organization structure denotes the components and relations that
bind people working with the organization.
• Three pillars of organization are the people, the organization itself
(considering it as a separate entity) and the technology. People issues
encompass education, training and attitudes.

4. Copyright © 2011, Oxford University Press, India Dipak Kumar Bhattacharyya
Three different levels of organization structure are strategic,
tactical and operational.
• Strategic level represents decision making level, i.e., the corporate
or the top level of an organization.
• Tactical or business level is the middle management level, where
strategic decisions are transformed into tactics to achieve the
strategic intents.
• Operational level represents the actual implementation level,
where first level employees and workers, execute the tactics,
adopting the actions plans.

5. Copyright © 2011, Oxford University Press, India Dipak Kumar Bhattacharyya
Features of organization-
• Organization is a group of people who are organized to achieve a
common purpose.
• It is an entity, a unit or an establishment, which utilises resources to
achieve some common purpose.
• It shows a structure of relationship in an enterprise
• It is a process, which facilitates to relate tasks and facilities of people
working in an enterprise, to achieve intended goals.

6. Copyright © 2011, Oxford University Press, India Dipak Kumar Bhattacharyya
Organizations are viewed from systems perspectives, as systems is a
collection of parts (or sub-systems), which is integrated to accomplish the
goals and objectives of the organization. Systems have inputs, processes,
outputs and outcomes, with ongoing feedback among these various parts. If
one part of the system is removed, the nature of the system is changed.
•Organization is viewed as a system, as organization is a unitary whole. It
consists of arrangement of activities to achieve its objectives.
Systems view of Organization

7. Copyright © 2011, Oxford University Press, India Dipak Kumar Bhattacharyya
Mintzberg has given us a potential classification of five different types of
organizational structure.
These are; (1) machine bureaucracy (standardised structure),
(2) professional bureaucracy
(3) adhocracy or innovative forms (relate culture to the organization),
(4) simple or entrepreneurial forms and
(5) divisional forms.
Each structural form indicates different pattern of behaviour of the organization.
Types of Organizational Structure-

8. Copyright © 2011, Oxford University Press, India Dipak Kumar Bhattacharyya
Traditionally organization is viewed as a closed system. Closed systems
perspectives consider everything as deterministic; hence organization structure
should be more or less fixed, depending on the preferences of a specific
organization.
Open system approach to organization is considered more relevant. Open
systems approach has been characterised by importation of energy,
throughput, output, cycles of events, negative entropy, information input,
steady or dynamic homeostasis, differentiation, integration and co-ordination,
and equifinality.
Open Systems approach in organization-

9. Copyright © 2011, Oxford University Press, India Dipak Kumar Bhattacharyya
Chaos theory studies the complexity of world to identify principles to
understand the organizations. The theory of chaos deals with the
structure of turbulence, i.e., study of unpredictable complex systems,
which, per se suggests that a whole is greater than the sum of its parts. It
is also similar to systems theory, as it is only concerned with systems.
Chaos Theory

10. Copyright © 2011, Oxford University Press, India Dipak Kumar Bhattacharyya
Designing of organization is the process of creating a structure or chart to
indicate the action for the employee groups to realise some common objectives.
From traditional percept, organizational design process starts with the division
of labour.
Appropriate organizational design contributes to effective performance of
employees and groups. This is why every company tries to strategically design
their organization to derive the advantage of high performance.
Effective organizational design is instrumental for implementing organizational
strategies for achievement of organizational goals. Broadly organizational
design rests on two models; bureaucratic model and behavioural model.
Organizational Design

11. Copyright © 2011, Oxford University Press, India Dipak Kumar Bhattacharyya
Analysis of organizational culture is an approach to organizational design is a
difficult task. Although it varies between organizations to organizations, we can
draw a tentative list as under:
Identify the core values and beliefs.
•Uncover core values and beliefs. These may include stated values and goals,
but they are also embedded in organizational metaphors, myths, and stories,
and in the behaviors of members.
•Acknowledge, respect, and discuss differences between core values and beliefs
of different subcultures within the organization.
•Look for incongruence between conscious and unconscious beliefs and values
and resolve by choosing those to which the organization wishes to commit.
Establish new behavioral norms (and even new metaphor language) that clearly
demonstrate desired values.
•Repeat these steps over a long period of time. As new members enter the
organization, assure that they are surrounded with clear messages about the
culture they are entering.
•Reinforce desirable behaviour.
Organizational Culture and organization design

12. Copyright © 2011, Oxford University Press, India Dipak Kumar Bhattacharyya