Organizational structure and culture are important aspects of how organizations function. There are several types of organizational structures, including functional, divisional, and matrix structures. Organizational culture represents the shared values, beliefs, and norms that develop within an organization over time. Elements of culture include stories, language, rituals and symbols. Changing organizational culture can be difficult and requires clear vision, leadership commitment, and realigning structures and practices to support the new culture.

1. Module IV: Individual in the
Organization

2. Organizational Structure
• It is the formal system of tasks & authority
relationships that control how people co-
ordinate their actions & use resources to
achieve organisational goals.

3. Types of Organisational Structure
• Functional Structure
• Place Structure
• Product Structure
• Multidivisional Structure

5. Functional Structure
• Oldest & most commonly used
• When it is used, the organisation is
departmentalized on the basis of functions it
needs to perform to reach its objectives.
• The activities or functions of all these
departments are co-ordinated by the Chief
Executive of the organisation.
• This approach helps reduce errors & lowers
costs.

6. • Functional structure is easily understood by the
employees.
• It eliminates duplication. There is only one
marketing department for the entire enterprise,
only one production department & so on.
• Problem – Horizontal integration across
functional departments often becomes difficult
as the organisation increases the number of
geographic areas served & the range of goods &
services provided.

7. Place structure

8. • Popularly called the geographic area structure.
• Popularly used by Multinational Corporations
which need to be responsive to local needs.
• In the US, soft drinks have less sugar than in S.
America, so the manufacturing process must be
slightly different in these two locals.
• Problems – lack of communication among
divisions & diffusion of technology is slow as
innovations generated in one division (area) may
not be adopted quickly by others.

9. Product structure

10. Multidivisional structure
• Referred as M- form
• Tasks are organised by divisions on the basis of
the product or geographic markets in which the
goods or services are sold.
• Divisional heads are primarily responsible for
day-to-day operating decisions within their units.
• Freed from these routine activities, top level
executives concentrate on strategy issues -
allocating resources to various divisions,
assessing new business to acquire etc

11. Organisations for future

12. Matrix structure

13. Networked structure
• Also called Modular Organisation.
• It is a cluster of different organisations whose
actions are co-ordinated by contracts &
agreements rather than through a formal
hierarchy of authority.
• It offers flexibility & innovation.

15. VIRTUAL ORGANISATION
• Enables individuals separated by distance
and/ or time to work together towards a
common goal.
• Use computers for communication
• Employees of virtual organisation respond
quickly to changing customer demands with
customised products & services available at
any time & place.

16. • Employees are interdependent.
• Managers delegate authority & responsibility
to employees while providing them with a
clear vision of the organisation’s goals.

17. Characteristics of virtual organisation
• A reliance for their functioning & survival
upon the medium of cyberspace.
• No readily identifiable physical form.

18. Learning organisation
• In the competitive environment, only a learning
organisation will survive.
• Its abilities to learn, create, & utilize knowledge
faster than its rivals & quicker than the
environment changes – will provide tomorrow’s
corporation a competitive edge.
• A learning organisation is understood as the
one that has developed the capacity to adapt &
change.
• Learning organisations – constantly learn.

19. Characteristics of learning organisation
• System Thinking
• Personal mastery
• Mental models
• Building shared vision
• Team Learning

20. Need for learning organisation
Only it can -
• Survive tomorrow’s knowledge based
economy
• Manage tomorrow’s intense global
competition.
• Cope with tomorrow’s rapid fire technological
changes.
• Handle tomorrow’s demanding market

21. Team based designs
• Organisations are made up of teams.
• Instead of organising jobs in the traditional,
hierarchical fashion by having a long chain of
individuals perform parts of a task, team
based organisations have flattened
hierarchies.

22. Boundaryless organisations
• This designs presents a picture of chaos,
chains of command are eliminated, spans of
control are unlimited, & empowered teams
replace rigid departments.
• Eg – GE envisioned a boundaryless
organisation for its $ 60 bn empire.
• Such a design is hardly sustainable.

24. Strategic alliances
• These are co-operative agreements between
firms that go beyond normal company – to-
company dealings.
• Such co-operative agreements involve joint
research efforts, technology sharing, joint use
of production facilities, marketing one
another’s products or joint manufacture of
components.

25. • Comprises of -
a) Shared management agreement – All the
alliance partners actively participate in
managing the alliance.
b) Assigned arrangement – A partner holding a
major stake in the alliances assumes primary
responsibility for managing its affairs.
c) Delegated arrangement – Alliance partners
create a separate entity to manage the alliance.

26. Built 2 change (b2change
organisation)

27. • Strategising – Describes how an organisation
achieves priority to the needs of end users. When
customers demand change, organisation’s
responses should also change.
• Creating value – Asks the following questions –
what do we need to learn, how do our
capabilities need to evolve, what do we need to
do better so that we can add value in the future ?
• Designing – Organisations need to be designed &
management practices need to be identified to
realise the strategic intent.

28. Structure decisions

29. Structure decisions
• Organisations must make important structure
decisions –
a) Whether or not to use staff experts
b) Whether the organisation will be structured
in a flexible or rigid way.
c) How the authority will be distributed.

34. centralising & decentralising authority,
Formal & informal organisations

35. Organisational culture

36. definition
• Organisational culture has been defined as
the philosophies, ideologies, values,
assumptions, beliefs, expectations, attitudes &
norms that knit an organisation together & are
shared by its employees.

37. Characteristics
• Individual initiative
• Risk tolerance
• Direction
• Management support
• Control

38. • Identity
• Reward system
• Conflict tolerance
• Communication patterns

39. Cultural dimensions – levels of
culture

40. National Culture
• Dominant culture within the political
boundaries of the nation state.
• Dominant national culture usually represents
culture of the people with the greatest
population or the greatest political or
economic power.
• Formal education is given & business is
usually conducted in the language of the
dominant culture.

41. Business culture
• Represents norms, values, beliefs, that
pertain to all aspects of doing business.
• Business culture tells people the correct,
acceptable ways to conduct business in a
society.

42. Occupational cultures
• They are the norms, values, beliefs, and
expected ways of behaving of people in the
same occupational group, regardless of which
organisation they work for.
• Eg – physicians, lawyers, accountants

43. Organisational culture
• Organisational culture has been defined as
the philosophies, ideologies, values,
assumptions, beliefs, expectations, attitudes &
norms that knit an organisation together & are
shared by its employees.

44. Mechanistic culture
• It exhibits the values of bureaucracy &
feudalism.
• This sort of culture resists change &
innovation.

45. Organic culture
• Formal hierarchies of authority, departmental
boundaries, formal rules & regulations, &
prescribed channels of communications are
frowned upon.
• In problem situations, the persons with
expertise may wield far more influence than
the formal boss.
• The culture stresses on flexibility,
consultation, change & innovation.

47. • Autoritarian & Participative cultures
• Dominant & sub – cultures
• Strong, weak & unhealthy cultures

48. How is culture created ?
• External adaptation & survival
• Internal integration - establishment &
maintenance of effective working relationship
among the members of the organisation.

50. Cultural artifacts
• Refers to stories, rituals, ceremonies,
language, symbols & statements of principles.
• Also called observable aspects of culture

51. stories
• Stories about past corporate incidents serve
as powerful social prescriptions of the way
things should (or should not ) be done.
• As they are told & retold, stories give
meaning & identity to organisational members
& are specially helpful in orienting new
employees.

52. • Stories about the CEO
• Stories about getting fired
• Stories about how the company deals with
crisis situations.
• Stories whether lower level employees can
rise to the top

53. language
• The language of the workplace speaks highly
about the organisation’s culture.
• Organisations, over time, often develop unique
terms to describe equipment, offices, key
personnel, suppliers, customers, or products that
relate to its business.
• Eg – MMB (Monday Morning Blues), Pronto –
Now, quickly, Promo- Promotion
• New employees are overwhelmed with the
jargon, after 6 months on the job, have become
fully part of their language.

54. Structure & symbols
• The size, shape, location & age of buildings
might reveal organisation’s culture.

55. Statement of principles

56. Strategies for sustaining culture
• Selecting & socialising employees
• Actions of founders & leaders
• Culturally consistent rewards
• Managing the cultural network
• Maintaining a stable workforce

57. Effects of culture

58. Changing organisational culture

59. • 3 approaches
1. Behavioural approach
2. Competing values approach
3. Deep assumptions approach

60. DIFFICULTIES IN CHANGING

61. Guidelines for changing
• Formulate a clear strategic vision
• Display top management commitment
• Model cultural change at the highest levels
• Restructure the organisation to support the
new culture
• Select & socialize new comers & terminate
deviants
• Develop ethical & legal sensitivity

62. Organizational Design

63. definition
• Organisational Design is the process by which
managers select & manage elements of
structure so that an organisation can control
the activities necessary to achieve its goals

64. • It is a task that requires managers to strike a
balance between external pressures from the
organisation’s environment & internal pressures.
• Organisational design is important, inorder to –
a) Deal with contingency (A possibility that must
be prepared for)
b) Gaining competitive advantage
c) Managing diversity
d) efficiency & innovation

65. Key factors in organisational design
• Environment – degree of complexity, degree of
dynamism (whether environmental characteristics
remain same or change), richness (amount of
resources available to support an organisation)
• Business Strategy – low cost,differentiation (based on
providing customers with something that is unique &
makes the organisation’s product/ service distinctive
from its competitors, focused
• Technology – technological complexity
• Internal Contingency factors – goals ,size , employees

66. CONSEQUENCES OF POOR
ORGANISATIONAL DESIGN