This document discusses organizational structures and cultures. It covers common organizational designs like simple, bureaucratic and matrix structures. It also discusses elements of organizational structure such as work specialization, chain of command, and departmentalization. Additionally, it examines characteristics, functions and types of organizational culture, including dominant and subcultures. Organizational culture influences behaviors and provides a sense of identity and commitment, though it can also act as a barrier to change, diversity and mergers.

1. ORGANISATION Structures and Cultures

2. Topics to be covered… ORGANISATIONAL STRUCTURE Elements of Organisational Structure Common Organisational Designs ORGANISATIONAL CULTURE Characteristics of Organisational Culture Functions of Organisational Culture Types of Organisational Culture

3. Organisational Structure

4. Elements of Organisational Structure Work Specialisation The process of division of labour or is known as work specialisation.

5. Advantages and Disadvantages of Work Specialisation ADVANTAGES Increases work efficiency and productivity Repetitive performance increases employee skills Less time is spent in changing tasks. It is easier and costs less DISADVANTAGES Causes boredom Causes fatigue and stress Increases absenteeism Increases employee turnover

6. Elements of Organisational Structure Chain of Command Chain of Command is an unbroken line of authority that extends from the top of the organisation to the lowest employee.

7. Chain of Command Authority of Command Authority is the rights given to a person in the chain of command to give orders and expect them to be obeyed. Unity of Command Unity of Command states that a person should have one and only one superior to whom they must report.

8. Elements of Organisational Structure Span of Control Span of control is the number of subordinates in an organisation who are supervised by managers. The span of control determines the number of levels and managers in an organisation.

9. Elements of Organisational Structure Centralisation and Decentralisation In centralised organisaions the top management makes all the key decisions. In decentralised organisation the lower-level personnel have a greater say in decision making.

10. Elements of Organisational Structure Formalisation Formalisation is the degree to which jobs within an organisation are standardised. On highly formalised jobs employees are merely expected to follow rules and instructions laid down without much or any freedom.

11. Elements of Organisational Structure Departmentalisation In departmentalisation jobs are grouped together so that common tasks can be coordinated.

12. Departmentalisation Functional Departmentalisation

13. Departmentalisation Product Departmentalisation

14. Departmentalisation Geographical Departmentalisation

15. Departmentalisation Process Departmentalisation

16. Departmentalisation Customer Departmentalisation

17. Common Organisational Designs When the elements of orgainsational structure are coordinated together in an appropriate manner they form an Organisational Design Some of the common Organisational Designs are: The Simple Structure The Bureaucracy The Matrix Structure

18. Common Organisational Designs The Simple Structure A simple structure organisation is usually a small informal organization in which there is a single individual with unlimited power Following are the main characteristics: It has a low degree of departmentalisation Authority is centralised in a single individual It is a ‘flat’ organisation There is very little specialisation or formalisation

19. Advantages and Disadvantages of The Simple Structure ADVANTAGES They are fast and flexible. They are able to respond quickly to the changes in the environment. DISADVANTAGES They are risky organisations as everything depends on one person. As the organisation grows, it leads to information overload on a single individual. Increase in size leads to a slower decision-making process

20. Common Organisational Designs The Bureaucracy Characteristics of a Bureaucracy: Employees perform highly routine tasks High level of specialisation and employees are grouped into functional departments There are many formalised rules and regulations and authority is centralised Decision making follows a chain of command and hence can be slow

21. Advantages and Disadvantages of The Bureaucracy ADVANTAGES High level of standardisation leads to high efficiency in performances of activities of employees. It can be managed by less talented and less costly managers High levels of specialisation reduces production costs DISADVANTAGES High levels of specialisation leads to conflicts between functional units In bureaucratic organisations there is an obsessive concern for rules There is no scope for modification

22. Common Organisational Designs The Matrix Structure The matrix structure combines two forms of departmentalisation, functional and product. In the matrix design there are three major roles: Two-Boss Managers Matrix Bosses Top Leader

23. Advantages and Disadvantages of The Matrix Structure ADVANTAGES Facilitates coordination Exhibits flexibility Encourages better communication DISADVANTAGES Leads to power struggle Unclear expectations creates ambiguity Role-conflict causes frustration and stress

24. Organisational Culture

25. Characteristics of Organisational Culture Innovation Some organisations encourage its employees to be creative and generate new ideas. However there are other organisations that expect the employees to go strictly by the rules laid down by the company’s manual.

26. Characteristics of Organisational Culture Stability Some organisation emphasize on maintaining the status quo. That is, they prefer to maintain a stable and predictable environment. On the other hand some organisation encourage change and resist too much stability.

27. Characteristics of Organisational Culture People Orientation It is the degree to which the management takes into consideration the effect a decision will have on its people before a decision is made. For example, Infosys Technologies views its employees as assets and decision are made only after considering what impact it will have on its “assets”.

28. Characteristics of Organisational Culture Result Orientation It is the degree to which management focuses on results rather than methods used to obtain results. For example, Reliance Industries is often described as a result oriented company.

29. Characteristics of Organisational Culture Team Orientation It is a degree to which work activities are organised around teams rather than individuals. For example, most software companies emphasize team approach towards work.

30. Characteristics of Organisational Culture Easygoingness In some organisations the work atmosphere is relaxed and laid back whereas in some organisations the work atmosphere is charged, aggressive and competitive. For example, public sector banks in India have a very easy going attitude towards work.

31. Characteristics of Organisational Culture Attention to Detail It is the degree to which employees in the organisation are expected to show precision, anlysis and attention to detail.

32. Functions of Organisational Culture Positive Functions Sense of identity: When employees develop a sense of belongingness to the organisation they feel themselves part of the larger family.

33. Functions of Organisational Culture Positive Functions Commitment to the organisation's mission: Culture reminds people what their organisation is all about and encourages greater commitment to the organisation goals and missions.

34. Functions of Organisational Culture Positive Functions Appropriate Standards of Behaviour: Organisational Culture guides the words and deeds of employees. Culture tells the employees what the should or should not do in a given situation. Thus Organisational Culture is an important force influencing behavior.

35. Functions of Organisational Culture Shortcomings of Organisational Culture Barrier to change Organisational practices which were previously successful may now prove to be the cause of failure. Under such circumstances Organisational Culture becomes a burden.

36. Functions of Organisational Culture Shortcomings of Organisational Culture Barrier to diversity Organisations hire individuals with diverse background because they bring various strengths to the workplace. But often strong cultures result in organisations becoming insensitive to people who are different.

37. Functions of Organisational Culture Shortcomings of Organisational Culture Barrier to mergers and acquisitions Often mergers and acquisitions are not successful because of the diverse culture of the two organisations. For example, due to their different work cultures, managers face a lot of problems when a public sector company is taken over by a private sector company.

38. Types of Organisational Culture Dominant Cultures The dominant culture is the core values and dominant beliefs that are generally shared throughout the organisation. When we talk about organisational culture, we refer to the dominant culture prevailing in the organisation.

39. Types of Organisational Culture Subcultures Subcultures are minicultures within an organisation. These minicultures operate within the larger, dominant culture. Subcultures are usually an outcome of occupational, professional, functional differences or geographic distances.

40. Types of Subcultures Academy Organisations with this kind of a culture hire new college graduates and train them in a wide variety of jobs. Such an organisational culture provides the employees with opportunities to master different jobs.

41. Types of Subcultures Club Organisations that are highly concerned with getting people to fit in and be loyal are referred to as a club. The organisation promotes form within and highly values seniority.

42. Types of Subcultures Baseball Team In such cultures employees tend to be entrepreneurs who are willing to take risks and are handsomely rewarded for their success. This type of culture exists in fast-paced high-risk organisations such as investment banking, advertising.

43. Types of Subcultures Fortress The fortress type of culture exists in organisation that are facing a hard time in fighting for their survival. Employees who enjoy the challenge of fighting with their backs against the wall and do not mind the lack of job security enjoy working in this kind of culture.

44. Conclusion

45. Activity