Compare and Contrast Different Organizational Structure & Culture

Definition: “Individual gathered towards under the similar circumstances to achieve common goals”.

Or

“Organizational are the social or UN social arrangements for the collective goals”.

Organization structure

Every organization should have Organization structure because it tells about the level of hierarchy that who is responsible to whom and also shows position of a person. Organization structure consists of vital pillars of an organization which the organization is composed of.

Frame of Organizational Structure:-

Work Specialization:-

Work specialization is a key factor of organization structure. In the organization there are several jobs along their workers. So the workers perform individually their tasks so they are performing that activity again and again then they trained and work specialized on their field. This factor is gives advantage and disadvantage both e.g. In a Honda company these are many portions every worker is specialize on their portion by doing one job. He could be more accurate, takes less time

In less input will give more output and the disadvantage is that if the work specialized person is absent so the production will be stop. By doing the same job he might be bore so the moral will be down…

Departmentalization:-

Though departmentalization jobs are divided into the specialize work and they perform the tasks in a groups the following are the forms of departmentalization

Customer Departmentalization

Geographical Departmentalization

Functional Departmentalization

Product Departmentalization

Process Departmentalization

Chain of Command:-

Chain of command is the responsibility, proper line of authority in the organization. Classical theory explains hierarchy or chart structure that who reports to whom, and clarifies the ranks it tells about the duties, responsible assignments in organization. In some of the organization is based on it like navy and much active.

Span of Control:-

It explains the actual position of the manager in the organization that how managers are controlling their sub co-ordinates we have two types of spin of control. Tall and narrow and the other one is Flat and wide.

Tall and narrow

In this factor manager can handle five to eight sub co-ordinates. It is much easier to handle minimum people good communication will be there supervision will be stronger its means that the distance between CEO and lower managers is very less.

Flat and Wide

This is totally opposite to the tall and narrow. There is many sub co-ordinates under the manager. So it’s very much difficult to handle many people motivation to every is much difficult and normally human can handle eight people. So as a result no attraction to the works moral will be down. No communication between the manager and employees because it’s not easy to ask about the work daily the result will be not impressive in that kind of organization….

Centralization and Decentralization

It tells about the organization structure that who is the decision maker in the organization. Who has the power and the authority to make a decision for the firm. In the centralization decision making is concentrated by the single person and the decision making is done higher manager with no interaction from the lower level and in the decentralization decision making is get distributed in the hierarchy throughout the organization its benefits is actions and decisions are taken more quickly and more confident. Every employee is the decision maker and feel will an important and a part of an organization.

Matrix Structure

Matrix structure is the combination of the product customer, functional departmentalization. An organization which has a matrix structure that is the team work of the business and based for the project. Every department is responsible for their section. This team work is up to the project time if the project time is over then they divert to another project. Here the project manager is responsible after the completion of the project and budget

Advantages

Supports inter-disciplinary co-operation and multi-function working

Combines the benefits of specialization of the product/project structure

Develops tolerance of flexibility

Disadvantages

Here in this sector there is a big disadvantage of the loyalty between the managers and the project manager over the location of funding, dudget and recourses

Costs of added management positions, meetings

Slower decision making

Possible competition between dual managers

Organizational Culture

Organization culture is the set of values, rules, beliefs, attitudes and regulations these factors can help members of the organization to know how we will Work. To whom we will report? What we this? Why this is important?

Culture is like a backbone for the organization because it is the internal environment it play a key role to success of the firm

Types of Culture

Power Culture

Power culture is centralized this culture may found in the small kinds a business control is the basic element the decision maker is alone there is no consultancy the organization may react quickly to the danger. Some times more consultancy can lead to staff feeling undervalued and de-motivated, which can also lead to high staff turnover.

Welfare/ Person culture

Basically this kind of culture is a welfare non profitable, charities and for the social activities. This kind of culture can be in the group or individual aim

Task Culture

It is basically a team work based approach to complete a particular task. This culture is more common the business where the organization will establish a project team to complete the project in the particular time. Employee’s feels motivated because they are in power to make decisions within their team, they will also feel good and value because they may have been selected within that team and given the responsibility to bring the task.

Role Culture

Common in most organizations today is a role culture. In a role culture, organizations are split into various functions and each individual within the function is assigned a particular role. The role culture has the benefit of specialization. Employees focus on their particular role as assigned to them by their job description and this should increase productivity for the company. This culture is quite logical to organize in a large organization.

P2:- Analyze the relationship between an organization’s structure and culture

And the effects on business performance.

Task for P2

Culture and structure is working like a backbone in the organization. It creates a new concepts and strategies which can affect any level of planning. When it applies on any hierarchy organization. So then implications of organizational culture and structure will be implemented to the government companies etc.

Organizational structure and culture can affect progress of organization in the positive and in the negative way. In the positive way it differentiate the organization to the another one which don’t have a culture and structure. It explains the limitation of the firm. It provides a sense of license among the employees to know each other for the success and achievement of goals. It can bring stability and social system in the organization. In any organization having culture and structure strange there will be working environment also provides appropriate standards of working environment.

Every organization has different policies rules and regulations that how to communicate with the employee. The organization also shows about the responsibilities that who will report to whom mean who will be responsible to whom majority in this kind of organization tasks a good decision foe the company

Culture and structure has also some drawbacks on the business progress. If the organization culture is too much complex then in the organization decision will be very slow and also there will be centralized decision making in which the lower level employee’s will not be entertained.

P3:- Analyze the factors which influence individual behavior at work.

Task for P3

Individual Behavior At Work

All individuals are different and behave differently to people over time.

Interpersonal behavior is different from individual behavior

There are many terms and factors which influence the behavior. But the most important one is one is personality and Perception

Personality will be defined as the distinctive traits, thinking and the characteristic of a person and the relation to the others there are two main factors which affects personality are heredity and environment. It includes five factors of personality known as OCEAN which influences behavior at work.

PERSONALITY DIMENSTIONS OF MAP CHART

Personality dimension

High level

Low level

Neuroticism

sensitive, nervous

secure, confident

Extraversion

outgoing, energetic

shy, withdrawn

Openness to experience

inventive, curious

cautious, conservative

Agreeableness

friendly, compassionate

competitive, outspoken

Conscientiousness

efficient, organized

easy-going, careless

Neuroticism It tells about the effectiveness and emotional control in a body. If neuroticism is high in a body then it shows nervoness , sensitivity and unstability where it is low levels shows confidence emotional stability and activeness

Extraversion

In high level its shows energetic or if it is in low level may be described as quite , shyness and unsocial

Openness to experience High openness to experience have broad interest and having a wide imagination. in other hand low openness are conservative and conventional

Agreeableness Its good to have high agreeableness because its brings kindness friendly and a team worker

Conscientiousness Individual with a high a level are original and effective. their focus is just on their job and if this level is low in some one there that person will be very slow, careless and undutiful

P4:-Analyze how organizational theory underpins principles and practices of organizing and of management.

Task for P4

Management

Management is the name of activities is the act of getting people together to accomplish desire goal and objectives using available recourses efficiently.

OR

The attainment of an organizational goal in an effective and efficient manner through planning, organizing, leading and controlling organizational resources.

The role of management

Fayal’s theory about management

Fayal carried out research into how much managers actually do their work. Then he reached at the point that they should work on the following points.

Planning

It is the ongoing process of developing the business’ mission and objectives and determining how they will be accomplished. Planning includes both the broadest view of the organization, e.g. its mission, and the narrowest, a tactic for accomplishing a specific goal.

Organizing

Establishing the internal organizational structure of the organization. The focus is on division, coordination, and control of tasks and the flow of information within the organization. It is in this function that managers distribute authority to job holders.

Commanding

Fayal’s called this maintain activity among the personnel, it involves instructing and motivating subordinates to carry out tasks.

Coordinating

This is the task of monitoring the activities of individuals and groups within the organization, reconciling differences in approach, timing and resource requirement in the interest of overall organizational objectives.

Controlling

It is a four step process of establishing performance standards based on the firm’s objective, measuring and reporting actual performance, comparing the two and taking corrective or preventive action is necessary.

The manager`s role theory by Henry mintz berg

He explains three main types of managerial roles

Interpersonal {figurehead,leader,liaison}

Information {monitor, spokesmen, disssminator}

Decisional roles {entreneur, disturdence handler, resource allocator negotiator}

DEFINITION

Interpersonal Roles

Figurehead

The manager is a symbol, obliged to perform a number of duties. He represents the organization in various ceremonies etc.

Leader

Managers select and trained the team members. He/she used to motivate the team to achieve pre defined goal.

Liaison

Manager duty is to communicate with people outside the work unit trying to coordinates two project groups.

Informational Roles

Monitor

The monitor involves seeking current information from many sources. The manager acquires information from others and shares it with concerns people to stay well informed.

Disseminator

The managers send external information into his organization and internal information from one subordinate to another.

Spokesman

The managers transmit information out to his organization’s environment to speak on behalf of the organization.

Decisional Roles

Entrepreneur

The manager acts as initiator and designer of much of the controlled change of the organization. By using the monitoring role, he seeks opportunities, sees problems, and initiates actions to improve situations.

Disturbance Handler

The manger role involves resolving conflicts among subordinates or between the managers departments and other departments.

Resource Allocator

This role of manager involves deciding about how to allocate people, time, equipment, budget and other resources to attain desired outcomes.

Negotiator

Managers participate in negotiation activities. Managers represent department during negotiation of union contracts, sales, purchases, budgets, represent departmental interest.

Managerial Authority

The formal and a manager to make decisions, issues, orders and allocate resources to achieve organizational goals and objectives.

Managerial authority is the position that empowers a manger to exercise command and control over those placed under him for realization of the assigned role in an organization.

Originally, the overall authority is centrally vested in person of the manager. However, it is not possible for a single man to effectively execute and monitor each and every task. Therefore various functions of authority are devolved downwards to concerned subordinates for better and convenient output. It shows like ‘organizational Tree’ specifying various powers and responsibilities in both vertical and lateral hierarchy.

Task for P5

Compare the different approaches to management and theories of organization used by two organization

Managing and Measuring Organizational Culture

There was an organization which was facing problems due to different cultures. The organization needs an entire change in its culture. The organization was facing conflicts at every level. Employees of all levels were dissatisfied with the qualify of supervision they received. There was a big misunderstanding between employees and their managers. Then they carried out a research that how could we can achieve the change. Mangers and consultants tried to change the culture over a two year period through team development and communication training. And they have three main targets. They also trained the top management for resolving different issues.

The culture was measured through Organizational Culture scale (OCS) before and after two year period. They conducted interviews and presentations of different employees. And then after the change gradually project and finally the researchers directly observed employees in the actual work context. Then at last they found that OCS ratings for the organization were significantly higher than before the research. During the research period the workforce grew by 11 people, decrease in sick leave of 11279.5 hours and decrease in cost of $95864.49

So it can be clearly observed that culture improved for the better. We reached the conclusion that external intervention caused the change. Culture is created through communication and social interaction which leads the organizational culture towards betterment.

Now organizations are viewed having a dominant culture in which the critical issues are shared by employees. The organization may have too many subcultures of a unit which may or may not conform the dominant culture. Other terms used in the corporate culture are strong culture and weak culture. It is generally believed that a strong culture provides advantages to organization in terms of employees commitment and satisfaction. In this case the researchers at the University of South California reached at the result the employees are more committed and more satisfied when their values congruent with those of their supervisors.

Matrix Structure and Conflict

A structure that creates dual lines of authority and combines functional, product, process

And customer departmentalization. Large organization with multiple and complex task require

Matrix structure but matrix structure basically leads to conflict. We selected an organization

Having a matrix structure and problems they are facing Managers responsible for functions and

Mangers responsible for completion of projects have different priorities. Which basically arise

The issue of conflict and misunderstanding which has adverse at affect in the organization. Then

The researcher investigated the problem by conducting a case study in a laboratory in Holland.

Which produces different kinds of starches? They have two main tasks to handle the problem

Which were managed by matrix structure?

Each employee effectively reported to mangers. The research was conducted for a period of

five years. On the basis of detailed analysis of investigation the were able to describe patterns of

Conflict and its consequences and suggest theoretical reasons

Then they reached at the result that although power in matrix structure was equally

Distributed but the conflict arise due to changing operating norms, introducing new rules,

Withdrawing support for new projects etc. The ultimate outcome was a kind of cold war which

Continued until the R&D development unit was sold off. They described the key factors

Indicating the latter outcome consists of certain factors.

The implications was in establishing a matrix structure careful attention requires for the

Issue of balance of power, authority and resultant political behavior. If these points were ignored

Then the organization will destruct. There must be joint benefits of the two main parties of

Organization. The organization needs joint struggle to run. In this case study no solution was

Possible and the overall effectiveness of organization suffered.

M1:- Discuss the organizational structure and the prevailing culture in the

Organization under study. Also discuss how the structure and culture affect the performance of the business.

Task for M1

Culture and Structure of Shell

Every organization has their own culture and structure it’s very important for every organization in a culture there are many people belonging to the different groups. Every organization needs good culture, good social norms, valves and ethical behavior.

Shell Company is the biggest multinational company with many product lines. Employees are functional specialists trained according to the product or market distribution.

Now shell in Pakistan divided into the five functional locations for example operations, commercials, retail, finance and the human resources.

Through the use of horizontal linkages and committees management attempts to find divisional activities. The decision of major impacts result from strategic plan made by the organizational staff it explains that in shell company there is centralization system.

The culture of the shell organization is based on commitment of the top level management for the sake of employs, performance, quality and local community. Culture also pushes the member to behave in a way that is counter to the formal mission and goals of organization but it can be changed through inter personal skills and good behaviour. In organization good, positive and progressive culture and structure is shared among the people.

Culture and Structure of standard chartered

Culture and structure are important in organization but each organization has their own structure and culture. According to this organization, there is not a specific culture in organization. They develop their own culture according to their own requirement. Culture controls the behavior of employees according to their nature which accepts the efforts to that culture.

Develop the behavior of employees they develop culture which they need. Culture depends upon the nature of employees it according to that culture. Culture does not remain the same but the unwanted culture will changed according to new environment. In organization culture is made when employees share their own culture.

In this organization the bureaucratic structure is used .Employees are not involved during taking of the decision they are totally depended upon the orders of their boss. Through structure it is easy for the organization for placement of employees, staffing and they also know how many employees are required for the jobs in organization.

Factors Influencing in Both Organization

Culture and structure is important in each organization because through good culture there is friendly environment between the manager and employees. And through good structure the organization runs fast towards its objectives and can achieve goals easily. In both organization culture developed by sharing their own culture which is very effective for both organization because by communication with each other and sharing their views least conflict occurs between the employees and manager.

Through this friendly environment occurs which helps organization to run as high as they want. In organization the bureaucratic structure should be avoided and during decision making employees should involved because under this structure employees cannot work by their heart. They take their work as a burden. Under this structure organization cannot run towards there goals as fast as they need for their success because employees are not motivated by this structure they do not share their views, their ideas among themselves. This structure has negative effect on organization. It can be good thing in small doses especially in tackling issues that will become recurring themes in large businesses. Through good culture and structure employees are motivated and they share their new idea. They help each other and also solve the problems of organization.

Task for M2

Here you will apply the concept of organizations theory and what is being discussed in P5 and apply your knowledge to the organization under study.

Management Functions:-

Planning:-

Objectives of standard chartered

Following are the main objectives of the standard chartered

Standard Chartered Bank is an international bank, focused on the established and emerging

markets of Asia, Africa, the Middle East and Latin America with an extensive global network of

more than 600 offices in over 50 countries. The three principal business groups are Treasury,

Consumer Banking and Corporate and Institutional Banking. Their main objective is to offer

outstanding value to their customers by providing knowledgeable, efficient and reliable service

in a personal, helpful and responsive manner. Central to this service philosophy is the

professional consultative approach they take with each customer. By getting to know the

customer better, they can identify the customer’s needs and match them with quality products

which suit their best.

Mission Statement: To offer outstanding value to our customers by providing knowledgeable, efficient and reliable services in a personal, helpful and responsive.

LOCATIONS OF STANDARD CHARTERED BANKS

Managerial Authority

In standard chartered CEO Give orders and issues polices to the managers. Then further the managers forward these instructions and policies to their subordinates and so on. All of them accept and obeyed those instructions/polices/orders.

Managerial Role:-

Spokesman:

Spokesman standard chartered of attending the seminars outside the bank and negotiating with the people in banking issues.

Task for D1

Discuss what problems can the organization face in the performance areas (due to structure and culture) and what is your suggestion/recommendations to the problem

Problems

The major problems of Standard Chartered is at time facing more than a few dissatisfied customers of credit cards as other banks are offers lower rates and fees. These customers are having are bad experience with this bank. .

The department at present is facing the problem of continues hiring and firing. This is resulting in greater difficulty of coordination and the synergy that may exist in a stable environment. During the course of my internship of 6 weeks I saw at least 3 people who left their job, 2 who were fired and approximately 7 employees who were hired.

Apart from this there is also the problem that time has to be taken out to train and induct the new employees. There is however no designated trainer and therefore the BDE’s have to carry out the training.

The management environment of this department promotes fear and the adopted leadership approach is to treat employees. It’s resulting in a certain extent of dissatisfaction and also promoting a greater sense of insecurity amongst the employee`s. The result is loss of productivity that exists due to the difference between complete commitment of the employees and the approach of “just surviving” that they have adopted at present.

The limited numbers of firms that are on the approved list of companies and the banned of self employed professionals not being eligible for personal loan are also limiting the department from making major inroads into the Islamabad market.

Suggestions:-

The organization should focus on participative and pre active work of management through which the organization can easily analyze the problems. The participative approach will also be effective in keeping relationship among the employees and as well among the different unit of organization. When there will strong relationship then the decision making process will also be quick.

The organization should focus on training and development in order to guide the employees regarding the culture of organization. Through training and development the employees will come to know about the norms, values, beliefs and symbols which should be adopted during working.

Task for D2

Discuss your recommendations as how can management are improved with appropriate use of managerial approach according to the requirement of the organization.

Management is the act of getting activities completed efficiently and effectively with and through other people. The activity is efficient and effective if it follows all the functions of management i.e. planning, organizing, coordinating and controlling. The organization under study is standard chartered bank, I have analyzed the two broad categories of the function of management in this organization which are planning and leading.

All the organizations are working to achieve some goals and these goals can be achieved if the organization has the resources. The organization must plan their resources in a good manner in order to achieve the objectives standard chartered bank. Have also certain goals which they want to achieve through well managed plans. I have analyzed the planning function of standard chartered bank in which I studied the objectives and mission statement of standard chartered bank. So my suggestions for standard chartered bank in light of objectives is that objective of standard chartered bank must be SMART stands for Sustainable, Measureable, Attainable, Realistic and Time Bond. So if the objectives are SMART then the standard chartered bank will be in a position that can achieve it efficiently and effectively.

Mission statement should be specific, relevant to working environment, should be motivating one, should give value to customers. In light of standard chartered bank mission statement it reflects all the features of good mission statement.

Further I have analyzed the leading function of standard chartered bank. In leading the manager’s perform/acts as a role of leader, the mangers will motivate, resolving conflicts and select the effective communication channel for employees. My suggestion for standard chartered bank in motivating factor is that the Bank should provide strong incentives and participate the employees in decision making. The employees should be given equally authority and responsibility and also the Bank should make in effective reward system through which they can motivate their employees. My suggestion for resolving conflict is that the Bank should distribute the working activities and responsibilities among employees equally. In the Bank employees must be treated equally to keep the environment without rising conflicts.

My suggestion for standard chartered bank in light of managerial authority is that the Bank should maintain proper hierarchy system which clearly shows that who is directed to whom. In light of responsibility factor my suggestion is that the Bank should establish a proper job description will show to their employees about the responsibilities and work to be conducted by each and every employee.

My suggestion for standard chartered bank in light of managerial role is that if managers want to play a role of leader then they should keep the close coordination with their subordinates and also direct in control. In light of spokesman factor of managerial role if managers want to play a role of spokesman they should clearly info the outsiders relating to the Bank policies, product offering and some of their plans.