ORGANIZATIONAL BEHAVIOUR & DESIGN

Organizational Structure, Culture & Management Approaches

TABLE OF CONTENTS

TASK 12

Learning Outcome 1: Organizational Structure & Culture Relationship2

A: Organizational Structure & Culture2

Organizational Structure2

Organizational Culture2

Divisional Structure3

Matrix Structure4

Merit Descriptor6

Distinction Descriptor7

B: Organizational Structure, Culture and Impact on Performance9

Organizational Culture & Associated Organizational Structure9

Impact on Organizational Performance11

C: Personality, Attitude & Work Behaviour11

TASK 213

Learning Outcome 2: Approaches to Management & Leadership13

A: Effectiveness of Different Leadership Styles13

Scenario 114

Scenario 215

B: Scientific Management15

Application of Scientific Management16

C: Different Management Approaches17

Contingency Approach17

Human Relations Model17

TASK 318

Learning Outcome 3: Motivational Theories18

Maslow's theory of Needs19

McGregor's Two Theories20

Herzberg's Two Factor Theory21

Learning Outcome 4: Team Development Mechanism22

Forming22

Storming22

Norming23

Performing23

Adjournment24

Organizational Structure, Culture & Management Approaches

Task 1

Learning Outcome 1: Organizational Structure & Culture Relationship

A: Organizational Structure & Culture

Organizational Structure

An Organizational Structure defines reporting relationships, task allocations, departmentalization, interaction patterns and formal coordination mechanisms followed within an Organization (Daft, 2010, p. 22). According to the requirement of the Organization, one of the following types of Organizational Structure is selected:

Bureaucratic Structure

Functional Structure

Divisional Structure

Matrix Structure

Horizontal Structure

Hybrid Structure

Organizational Culture

Organizational Culture refers to a system of shared meaning within an Organization. Every Organization has its own symbols, myths, patterns of beliefs and practices which have evolved over time. The Organizational culture in turn creates a common understanding among the employees regarding how they should behave. Moreover, an Organization's culture affects the employees from the very moment they join the Organization until they depart with some new additions to their personalities. The type of Organizational culture is also reflected in the level of complexity, formalization and centralization within an Organization's Structure (Daft, 2010, p. 405).

Divisional Structure

When a firm is diversifying its product or service lines, beginning to serve heterogeneous customer groups or cover broad geographic areas, the functional structure becomes inadequate. In order to meet the increased decision making and coordination requirements, the Organization divides itself into sets of relatively autonomous units or divisions. Each division is governed by a central corporate office but has its own functional specialists and decision making authorities according to their work requirements (Lewis et al., 2006, p. 216).

Sample Divisional Structure

Associated Culture

A divisional structure can be associated with the following Organizational Culture characteristics:

Individual Initiative: The employees are given freedom to be creative because of the dynamic and changing external environment of the division.

Direction: The employees direct their efforts more towards the progress of their particular division or product line.

Integration: The inter-departmental coordination is high because of changing environment and high reliance between departments.

Control: The level of control is relatively low and clearly defined. Therefore, the level of formalization is also low.

Communication Patterns: Horizontal Communication is encouraged for increased coordination and quick decision making to cope up with the changing cultural requirements.

Matrix Structure

A matrix structure is one in which employees are assigned to their functional departments and a product related project simultaneously. The basic properties of a matrix structure include dual channels of authority, responsibility, performance evaluation and control. This structure is intended to make the best use of individuals in an Organization by assigning them both functional as well as project responsibilities and therefore, encouraging coordination and diversification ...