Organization and Behaviour across Banking, Tourism and Energy Supply Essay Example
The main subject of this study is organization and behavior, particularly examining organizational culture and structure. The chapter is divided into various sections, starting with an exploration of organizational culture and structure.
The second chapter discusses motivational theories, while the third chapter focuses on single behavior. Both topics are extensively examined. In this assignment, a thorough exploration of organizational structures and cultures is undertaken. Organizations are defined as "social agreements for the controlled performance of corporate goals."
The organizational structure is crucial for any organization as it demonstrates how information flows from one level to another within the company. Work specialization involves dividing each job into various steps, with each step being completed independently by an individual. Departmentalization coordinates common tasks. The chain of command establishes a clear assignment of responsibilities and duties throu
...gh a formal line of authority and ensures accountability.
In centralization, decisions are made by lone directors, whereas in decentralization, directors consult their subsidiaries before making decisions. An organization with a Matrix Structure consists of teams of people focused on specific projects. Culture essentially encompasses the norms, values, and behavior adopted by members of the organization while working.
The organizational performance is influenced by the culture and structure of the organization, both positively and negatively. In a positive sense, the culture and structure of an organization set it apart from others and also establish its boundaries. SNGPL follows a functional approach to management, which is the most basic form of organization, while Disney management adopts a divisional structure. In the following part of my assignment, I have described the culture and structure of HBL & UBL. Furthermore, I have also examined the management approaches adopted b
these organizations.
Culture and structure are important aspects in every organization. A good culture promotes a friendly environment between managers and employees, while a good structure helps the organization efficiently achieve its goals. In the previous section of my assignment, I discussed various problems that organizations face in the performance area. Lastly, I provided suggestions to address these problems.
P1: - Comparison and contrast different organizational structure & Culture.
Task for P1: - In this section, you will discuss the different studies on organizational structure and culture in the course.
This paragraph provides information about promoting the usage of diagrams and figures to represent different cultures and structures in a descriptive country.
Organization:
According to Buchanan and Huczynski (1991), organizations are social agreements for achieving corporate goals. Chester Barnard (1938) illustrated this concept by using the example of a man trying to lift a heavy rock. By teaming up with another person and combining their efforts, the man was able to move the rock.
Organizational Structure: -
It is necessary for every organization to have an organizational structure, which determines the hierarchy and reporting structure within the organization.
Organizational construction is the way information and flows are organized within a company, moving from degree to level.
Planing of Organizational Structure: -
Work Specialization
Work specialization is the fundamental aspect of organizational construction. It refers to the extent to which tasks in the organization are divided into separate jobs. In work specialization, the entire job is divided into different steps, and each step must be completed individually by an individual. For example: - making a car.
Work specialization has several advantages. Firstly, it allows employees
to improve their skills and accomplishments by repeatedly performing the same task. This not only saves time but also increases accuracy in production. Additionally, work specialization enables managers to supervise a larger number of employees. On the other hand, there are drawbacks to work specialization. Employees may become bored by repeatedly performing the same job. Furthermore, if a specialized employee is absent, there may be no one available to perform their job, leading to increased absenteeism.
Quality of work may endure.
Departmentalization: -
Through departmentalization common undertakings can be coordinated. In Departmentalization, work or persons are grouped into manageable units. The primary signifiers of departmentalization are: -
- Functional Departmentalization
- Customer Departmentalization
- Geographic Departmentalization
- Merchandise Departmentalization
- Procedure Departmentalization
Chain of Command:
Chain of bid is the formal line of authorization, communicating, and duty within an organisation.
According to classical organization theory, the organizational chart allows one to visualize the lines of authority and communication within a organizational structure and ensures clear assignment of responsibilities and duties. In many organizations, the chain of command is still very much alive. Military is an example of consecutive chain of command which starts from a top to low level ranks.
Span of Control:
In a business of more than one person, unless the business has equal partners, then there are managers and subordinates. Subordinates are workers controlled by the manager. Span of control can be: -
Tall and Narrow:
The manager controls six or few employees.
There is close supervision, tight control, and fast communication in the organization. However, the supervision can be too close resulting in many levels of management, which may create a significant distance between top and bottom levels.
Flat and
Wide:
A wide span of control requires managers to establish clear objectives and policies, as well as carefully select and train employees. With less supervision, employees have more responsibility and higher morale in this type of structure.
The success of flat and broad span of control relies on employee awareness of their duties and job responsibilities, as managers cannot monitor them daily.
Centralization and Decentralization:
Centralization and decentralization refer to the extent of delegation of decision-making power in an organization, or the level at which responsibilities, power, and authority are delegated to lower levels. Organizations with high power delegation are decentralized while those with low power delegation tend to be centralized. In a decentralized structure, both operational issues and strategic direction are delegated to lower hierarchy levels.
Matrix Structure:
An organization with a Matrix structure comprises teams formed from different business departments.
These squads, led by a project manager, will be created for a specific task. Usually, the squad will only be required during the project and matrix structures are often used for developing new products and services. The advantages of a matrix structure include the ability to select individuals according to the project's needs. Dynamic and specialized project teams are brought together in an innovative environment to tackle problems from diverse angles.
Project managers are accountable for finishing their projects on time and within budget. However, conflicts between line managers and project managers over resource allocation can lead to drawbacks. Supervising separate teams can also be difficult, and costs may rise if additional project managers are formed by utilizing project teams.
Organizational Culture:
Culture pertains to the norms, values, and behavior embraced by organization members in their work. When individuals
join an organization, they adopt its specific culture.
The organizational culture is shaped by the work and nature of the business, which impacts employee behavior. Having a grasp on the culture helps predict the working environment.
Types of Culture:
Power Culture
In power cultures, control holds great importance. These cultures are often found in small or medium-sized organizations where decision-making is centralized. Individuals within this culture value control and the authority it brings.
In a power civilization, group work is not visible, allowing the organization to quickly respond to surrounding threats without involving an audience. However, this civilization faces challenges such as staff feeling undervalued and demotivated due to a lack of audience, ultimately resulting in high turnover rates.
Role Culture
A commonly seen culture in organizations today is the role culture. In this culture, organizations are divided into different functions and each individual is assigned a specific role within their function.
The concept of civilization has the advantage of specialisation. Workers concentrate on their specific function as defined in their job description, leading to increased productivity for the company. This type of civilization is particularly relevant in large organizations.
Culture of Undertaking
A task culture refers to a team-oriented approach to completing a specific project. This approach is popular in today's modern business society, where organizations establish dedicated "project teams" to complete tasks within a specified timeframe. The task culture undoubtedly provides certain advantages.
Staff members are motivated and feel valued because they have been empowered to make decisions within their team and have been entrusted with the responsibility for completing the project.
In charities or non-profit organizations,
there is a prevalence of individual cultures that focus on the individual or a specific purpose.
P2: - Analyze the relationship between an organization's structure and culture and its impact on business performance.
Task for P2: Discuss how organizational culture and structure can have both positive and negative influences on organizational performance. This discussion should build upon P1. Organizational Culture and Structure encompass various concepts, strategies, and situations that affect all levels of planning in hierarchical establishments.
The theories of organizational structure and culture are applicable to various entities including companies, corporations, charities, governments, and sports organizations. The impact of organizational culture and structure on performance can be both positive and negative. In a positive sense, they differentiate one organization from another and establish boundaries within the same organization. This sense of identity motivates employees to work efficiently in order to achieve organizational goals. Additionally, organizational culture and structure can foster employee commitment to the organization.
Having a strong organizational culture is beneficial for society as it promotes stability by embodying its norms and values. This culture creates a positive work environment where employees share common beliefs, resulting in appropriate workplace standards. Both the organizational culture and structure impact employee attitudes and behaviors, offering guidance and control. Consequently, organizations establish policies that align with their structure and culture for employees to adhere to.
The organization's structure highlights the accountability of each employee to their superiors, which is essential for making prompt and accurate decisions. Moreover, both the organizational structure and culture can adversely impact business performance. In particular, if employees are not obliged to communicate their values, conflicts may arise.
The dynamic environment can impact the effectiveness of an organization, leading
to slow decision-making and neglect of lower-level employees due to a complex organizational structure.
P3: - Analyze the factors which influence individual behavior at work.
Task for P3:
- This section examines the factors that influence behavior at work, with a focus on personality, traits, and types. These factors are crucial in understanding oneself and others. Differences in opinions also play a role in influencing behavior, but personality and perceptions have the most significant impact. Personality encompasses an individual's characteristics, traits, responses, adjustments to situations and people. The table below illustrates the big five factors of personality dimensions (OCEAN), which affect workplace behavior. It also highlights different trait poles associated with these dimensions.
According to Costa, A, McCrae (1992: 14-16, 49), personality dimensions can be classified into different levels. Neurosis indicates the level of affect and emotional control. Individuals with high neurosis tend to be sensitive and nervous, experiencing negative emotions more frequently. They are often unstable, agitated, temperamental, and sad. On the other hand, individuals with low neurosis demonstrate confidence, emotional stability, and activeness in their workplace. The dimension of extraversion is characterized by a high level of liveliness and energy in individuals. Additionally, openness to experience is associated with qualities such as imagination and a sense of humor in individuals. Conscientiousness represents efficiency and organization in individuals with high levels but easy-going and careless behavior in those with low levels.
Both extroverts and introverts display contrasting characteristics. Extroverts are recognized for their high energy levels, outspokenness, daring nature, assertiveness, directness, sociability, and talkativeness. Conversely, introverts or individuals with low extroversion tend to be more self-reliant, reserved, composed, and seek solitude. They can be described as calm, withdrawn, hesitant,
and not inclined towards socializing.
Openness to experience is a characteristic that involves depth, breadth, and variability in an individual's imagination and desire for new experiences. Those with high openness to experience have diverse interests, are open-minded, and enjoy novelty. Conversely, individuals with low openness to experience tend to be conventional, conservative, and prefer familiarity.
Agreeableness is a trait that can be described as selfless, kind, caring, empathetic, and warm. Individuals with high levels of agreeableness are friendly, compassionate, and have the ability to work well in teams.
On one hand, individuals with low levels of conscientiousness tend to be more competent and vocal, lacking a strong focus on specific goals and control over their impulses. On the other hand, individuals with high levels of conscientiousness are more organized and efficient, directing their efforts towards a limited number of goals and working hard to achieve them. While the focused individual concentrates on a few goals and puts in a great deal of effort to accomplish them, the flexible individual is more spontaneous and adaptable when transitioning from one task to another.
The more meticulous an individual is, the more competent, dutiful, orderly, responsible, and thorough they are. Personality is considered the most complex aspect of human beings that heavily influences behavior. Personality traits provide an opportunity for the organization to understand an individual's behaviors, guide their efforts, and motivate them towards achieving organizational goals.
P4: - Examine how organizational theory supports the principles and practices of organizing and managing.
Task for P4:
- Discuss the major organizational theories and explain their notable characteristics (focusing on management functions, roles, and authority) - Please refer to the course content for details.
Management
The achievement of
an organizational objective in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources.
Planning
It is the ongoing process of developing the business's mission and objectives and determining how they will be achieved. Planning includes both the broadest view of the organization, such as its mission, and the narrowest, a tactic for achieving a specific goal.
Forming
The formation of the internal organizational structure of the organization is the main focus. This includes dividing tasks, coordinating them, and controlling the flow of information within the organization. Managers assign authority to job holders through this process.
Commanding
Fayol referred to this as the act of maintaining activity among employees. It involves instructing and motivating subordinates to carry out tasks.
Organizing
This involves overseeing the activities of individuals and groups within the organization, while adapting to differences in approach, timing, and resource requirements in order to achieve overall organizational goals.
Controling
It is a four measure procedure of set uping public presentation criterions based on the house 's nonsubjective, mensurating and describing existent public presentation, comparing the two and taking disciplinary or preventative action is necessary.
Managerial Functions
A function every bit defined as an organized set of behaviors belonging to an identifiable office or place. Thus histrions, directors and others play functions that are predetermined, although persons may construe them in different ways.
Interpersonal Functions
Front man
The director is a symbol, obliged to execute a figure of responsibilities. He represents the organisation in assorted ceremonials etc.
Leader
The leader is responsible for selecting and training the squad members. He/she
also motivates the squad to achieve predetermined goals.
Affair
The manager's responsibility is to communicate with individuals outside the work unit in order to coordinate two project teams.
Informational Functions
Proctor
The proctor is involved in gathering current information from various sources. The director gathers information from others and shares it with relevant individuals in order to stay well informed.
Propagator
The directors facilitate the transfer of external information into the organization and internal information between subsidiaries.
Spokesman
The directors communicate information on behalf of the organization to its external environment.
Decisional Functions
Entrepreneur
The director acts as a catalyst and facilitator for organizational change. By utilizing the monitoring function, they identify opportunities, identify problems, and take action to improve situations.
Disturbance Handler
The manager's role involves resolving conflicts between subsidiaries or between the director's departments and other departments.
Resource Allocator
This role of a director involves deciding how to allocate people, time, equipment, budget, and other resources in order to achieve desired outcomes.
Negotiator
Directors engage in negotiation activities. They represent their department during negotiations of union contracts, sales agreements, purchases, budgets, and departmental involvement.
Managerial Authority
Managerial authority refers to the official and legitimate right of a director to make decisions, resolve issues, give orders, and allocate resources in order to accomplish organizational goals and objectives.
Managerial authorization refers to the authority that enables
a manager to give orders and control those who work under them in order to achieve the assigned tasks within an organization. Initially, this overall authority is held by the director alone. However, it is not feasible for one person to effectively carry out and supervise every task. Therefore, certain responsibilities with an appropriate level of authority are delegated to subordinate employees for improved and convenient output. This practice also establishes an organizational structure, known as the 'organizational tree', which outlines different powers and duties within both the vertical and horizontal hierarchy.
P5: - Comparing the different attacks to direction and theories of organisation used by two organisations.
Undertaking for P5:
- This will involve analyzing and comparing the approaches to organization used by two different organizations (assigned to another group). This will be presented in a soft and hard transcript format to the instructor.
Functional Theory followed by SNGPL: -
Organizations make decisions on how to execute their work by selecting an organizational approach. There are five common methods used by management to execute work: functional, divisional, matrix, team, and networking. Each organization follows different approaches based on their needs and requirements.
Case Sui Northern Gas Pipe Line utilizes a functional approach, the most basic form of organizational structure. The management of Sui Northern exemplifies this structure, with clearly defined communication channels and responsibilities. By implementing this approach, SNGPL enhances productivity, reduces employee duplication, and streamlines employee training. However, there are disadvantages to the functional approach, such as limited perspectives leading to
reduced cooperation.
Decisions are slow to take place because of multiple levels of hierarchy, leading to centralized authority. This structure limits employees to gain experience in only one field and prevents them from overseeing all company operations.
Disney's Implementation of Divisional Theory
However, Disney management follows a divisional structure unlike many other companies in order to track their operations. Here is an example of Disney's management structure. In large companies like Disney, it becomes challenging to monitor all activities. To tackle this, specialized departments are created and divided based on organizational output. This grouping is known as a divisional structure, which makes performance monitoring easier and allows managers to focus on resorts and results.
This sort of construction may result in duplication and competition within the division due to limited resources. M1: Discuss the organizational structure and culture within the Organization under review. Also, discuss how the structure and culture impact the business performance. Project for M1: This project should be seen as a continuation of your responses to P1 and P2; here you will discuss the prevailing structure and culture within the organization. This will be examined from the perspective of applying these concepts in real life. Organization Structure and Culture in HBL and UBL.
Culture and Structure of HBL:
Organizations have their own structure and culture.
Culture and structure play a crucial role in an organization's success. If there is informality and employees feel like they are an integral part of the organization, their behavior will have a positive impact. A strong culture is built upon the diverse groups of individuals within an organization, while the structure is formed by factors such as unity of command, span of
control, and intrinsic motivation, all of which influence employee morale. Furthermore, a good organizational culture is characterized by social norms, values, and ethical behavior, which effectively regulate employee conduct. Culture is cultivated through positive social norms, meaningful content, cohesive groups, and cannot be enforced; it is intertwined with internal behavior and continuously evolves. Ultimately, it is the organization's positive behavior that drives the cultural dynamics.
Culture not only influences how members behave within an organization, but it can also be modified through interpersonal skills and good conduct. In a successful organization, a positive and progressive culture and structure are shared among its members. Organizational structure refers to the interconnected groups and departments within a company that facilitate smooth functioning. The primary purposes of an effective organizational structure are to promote effective communication between different parts of the company and increase coordination between different departments.
UBL's Culture ; Structure
Each organization has its own unique structure and culture, including UBL.
According to this organization, there is no specific culture within the organization. They establish their own culture based on their own needs. The behavior of employees is influenced by culture, which aligns with their inherent nature and embraces the efforts towards that culture. Thus, they create the necessary culture.
Culture is influenced by the individuals it cultivates, shaping employee behavior in alignment with that culture. It is important to note that culture is not static; it adapts and evolves in response to new environments. Within an organization, a shared culture is formed when employees bring their own cultural backgrounds and experiences. In this particular organization, a bureaucratic structure is utilized, where employees have no
say in decision-making and depend entirely on the directives of their supervisor.
Through construction, the organization can easily arrange and staff employees, knowing how many employees are required for various positions within the organization.
Factors Influencing Both Organizations
Culture and structure are important in every organization. A good culture promotes a friendly environment between managers and employees, while a good structure allows the organization to quickly pursue its objectives and achieve goals. Both organizations can develop culture by sharing their own cultures, which is very effective because it promotes communication and sharing of viewpoints, reducing conflict between employees and managers. This friendly environment enables the organization to operate at optimal levels. Bureaucratic structures should be avoided in organizations, and employees should be involved in decision-making processes, as this empowers them to work with passion and dedication.
They view their work as a burden, which hinders the organization from achieving its goals quickly and successfully. Due to a lack of motivation and communication among employees, this structure has a negative impact on the organization. However, in small amounts and for recurring topics in large businesses, it can be beneficial.
Through effective organization and structure, employees are motivated and share their new ideas. They also help each other and solve management issues. A fully functional organizational structure and culture is expected under normal circumstances.
M2: - Discuss the management approach adopted by the organization, with
emphasis on management functions, roles, and authority.
Task for M2:
- In this task, you will apply the concepts of organizational theory discussed in P5 and apply it to the organization being studied.
Management Functions: -
Aims of HBL
- Following are some chief aims
of HBL
Mission Statement: -
To make our clients prosper, our staff excel and to create value for shareholders.
Leading functions in HBL:
Motivation: Directors of HBL motivate the employees by providing free medical treatment, free education and incentives to them.
Resolving Conflicts:
- Directors of HBL always try to resolve conflicts among employees.
- Giving importance to their opinions.
- Providing new ideas for solving problems.
- Sometimes assigning group projects to employees.
Managerial Authority
In HBL, the CEO gives orders and issues policies to the directors.The directors pass on these instructions and policies to their subsidiaries, who in turn accept and adhere to them.
Managerial Role:
Spokesman: The spokesperson of HBL represents the bank at external seminars and negotiates with individuals on banking matters.
D1: - Discuss the challenges the organization may face in terms of performance in different countries and propose solutions to these
challenges. Task for D1: - You must identify some problems observed concerning organizational structure and culture (there is no organization that is completely perfect). You will provide your recommendations and justify them based on the management knowledge you have acquired in the class.
Problems:
The main objective of organizational structure is to establish a network of relationships among employees at different levels. When the structure becomes large and complex, the issue arises of how these employees will maintain a network of relationships.
This job will also have effects on the decision-making process of an organization. The organizational structure also maintains coordination between different departments.
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