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Type of organizational structure
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Culture, Power & Politics in the Workplace
As far back as history can be told mankind has struggled between balancing culture, power and politics. Many wars have been fought and many people have placed their lives on the line in order to stand up for what they believe in. The combinations of culture, power and politics have spilled over into the workplace. In today’s business environment individuals have much more to worry about than just completing their assigned tasks. Organizational culture, power and office politics influence day to day operations as well as govern the atmosphere within the organization. The amount of impact that power and politics have in the workplace, directly reflect the organization’s culture formally as well as informally.
Organizational Structure
Organizational structure within an organization is a critical component of the day to day operations of a business. An organization benefits from organizational structure as a result of all it encompasses. It is used to define how tasks are divided, grouped and coordinated. Six elements should be addressed during the design of the organization’s structure: work specialization, departmentalization, chain of command, spans of control, centralization and decentralization. These components are a direct reflection of the organization’s culture, power and politics.
Common Organizational Designs
Most organizations fall under one of three organizational designs: simple structure, bureaucracy and matrix structure. The organizational design of a company suggests who makes executive decisions and how they are enforced. The organizational design is typically decided based on the size of the company and market place.
Simple Structure
Simple structure is widely used by small businesses in which the owner directly manages the day to day operations. The benefit of using the simple structure is that it is simple. One person normally calls the shots and takes full responsibility for the businesses success and failure. “It’s fast, flexible, and inexpensive to maintain, and accountability is clear” (Judge & Robbins, 2007, p.546). Unfortunately, using simple structure as an organizational design limits the business of its full potential, as it grows, it becomes more difficult for one individual to oversee the daily operation and make quick executive decisions. Once an organization reaches this point, it must change its organizational design in order to remain competitive within its market.
Bureaucracy
Bureaucracy is an organizational design based on the concept of standardization. “It is characterized by highly routine operating tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command” (Judge & Robbins, 2007, p.
Often, when the discussion of American bureaucracy is broached in conversation, those holding these conversations often think of the many men and women who operate behind the scenes within the government. This same cross section of Americans is looked upon as the real power within the federal government and unlike the other branches of government, has little to no oversight. A search of EBSCO resulted in the following definition, an organization “structure with a rigid hierarchy of personnel, regulated by set rules and procedures” (Bureaucracy, 2007). Max Weber believed that a bureaucracy was technically the most efficient form of organization, one structured around official functions that are bound by rules, each function having its own specified competence (2007). This wide ranging group of Americans has operated within the gaps, behind the scenes, all under the three core branches of government: the legislative, executive, and judicial branches. The division of government into three branches and separate powers gives each branch both exclusive powers and some additional power...
The Organisation structure of a company addresses the fact that every organisation has specific units that are responsible for different roles and actions in the organisation and that no department within the organisation stands alone, they are intertwined. The organisational chart or structure should be designed to divide up the work load, responsibilities and roles to be done
Max Weber, German sociologist, social theorist, and economist, explicated the theory of bureaucracy in which he details the monocratic bureaucracy “as an ideal form that maximized rationality” (Bolman & Deal, 2008, p. 48). He provided his most complete exposition of theory in his 1922 tome Economy and Society (Casey, 2004). This classic form of bureaucracy is characterized by the following (a) well-defined official functions; (b) specialization of function; (c) clearly defined hierarchy of offices; (d) rules governing performance, which require training to administer; (e) impersonal treatment of clients, in that all are treated equally; (f) merit as the basis of promotion or appointment; (g) compensation based on rank; (h) separation of personal and company assets and interests; (i) discipline and control of daily work; (j) files and record keeping for decisions, acts, and rules (Bolman & Deal, 2008; O’Connor, 2011). There are numerous shorthand versions of Weber’s theory including Harmon and Mayer (1986) in Organization Theory for Public Administration and Heady (2001) in Public Administration: A Comparative Perspective (O’Connor, 2011).
Bureaucracy is a specific type of secondary group that are everywhere in one's life. Max Weber identified Bureaucracy with six different types of characteristics. Areas in my life that have been Mcdonaldized can first fit in with the Specialization part. Specialization is where all members of a bureaucracy are assigned specialized roles and tools, an example of this in my life can fit in with voluntary work I do in hospitals. Everyone who voluntaries to work each have their own roles to help out with. When I go to stores or to restaurants Hierarchy is something I see the most. The reason as to why is because both stores and restaurants have supervision by higher-ranking managers and bosses. Another area in my life that has been Mcdonaldized is my school. My school fits under Rules and regulations because responsibilities are written down and are clearly stated. Almost student who starts school is given a handbook, the handbook has our responsibilities written down on
Organizational culture is a reflective view of the inner workings of an organization. This culture reflects hierarchical arrangements as it pertains to the lines of authority, rights and obligations, duties, and communication processes. Organizational structure establishes the manner in which power and roles are coordinated and controlled amongst the varying levels of management. The structure of an organization is dependent upon their goals, objectives, and strategy. Determining organizational structure best suited for an organization is generally found within the six key elements of organizational structure and choosing those to implement those best suited for the organization. The six key elements include:
Bureaucracy has been the main form of organisation for over a century and can be characterised by the following: functional specialisation, employees carrying out one function of activity as their primary role; hierarchy of authority, those in superior positions having authority based solely on the virtue of the position itself; a system of rules, the tasks of the organisation following a formal set of procedures and practices; and impersonality, individuals being treated on the basis of the rules rather than emotions and personality (Knights & Willmott, 2012). The mainstream perspective states that a bureaucratic organisation’s central aim is to maximise efficiency, objectivity and fairness and can be thought of as a ‘machine’ with the people making up the components (Knights & Willmott, 2012). This view attributes three problems to this rule-centred organisation: poor motivation, poor customer service and a resistance to innovation and change (Knights & Willmott, 2012). Employees in bureaucratic organisations tend not to be committed to their
An organization is structured in a certain way based on some factors. Size is a factor because the bigger the organization, the more complex its structure. If the company is small, the design is generally simple. A small company does not have to undergo a formal structure. Larger organizations depend more on authority delegation and formal work responsibility, because a bigger company is harder to manage. Another factor is the lifecycle of the organization. An organization undergoes the...
Organizational structure is one of the three key organizational assets that could contribute to the effectiveness of operations of any organization (Zheng, Yan and Mclean 2009) It is joined together by different flows of information, decision processes, hierarchy of authority, specialization and working materials. (Enz 2009; Mintzberg 1980) Furthermore, it also determines the operating workflow, control of information, decision-making in the organization and the line authority (Mintzberg 1980). The facets of the organizational structure, the relationships that exist within it, and how the business processes (Bititci et al 2011) are controlled, determine the managerial style that should be utilized in addition to the strategies the organization could implement. Going further, a company’s organizational design and the parts that constitute it are seen as a contributing factor to superior performance, which ultimately provide an organization with competitive advantage over its competitors. (Enz 2009; Zheng, Yang, and Mclean 2009)
The Different Ways Organizations Can Be Structured and Operated There are four major ways a company - organization can be structured and operate. P.C.G (o) Ltd I would dare say that is structured and operates with the functional structure. In order to make it clear and understandable I am analyzing here below the four ways that organizations can structure and operate. We will observe that all four structures have there advantages and disadvantages. In order also to assist you understand better the differences of the four ways that organizations can be structured see in Page 4 & 5 Figures 1,2,3 which are the layout of the organization charts for each structure: 1.
In order for one to evaluate and identify with the diverse business structures, he/she must be aware of the meaning and standards that makes that structure. Various businesses functions in different ways as the world is full of technology and new structures, company cultures and new ways in which companies are run. In order to fully grasp the concepts of Organizational structure and culture in the movies, I will use the Movie Up in the Air and The Devil Wear Prada movies to analyze a business scenario from them.
In an organization of any size or complexity, employees' responsibilities typically are defined by what they do, who they report to, and for managers, who reports to them. Over time these definitions are assigned to positions in the organization rather than to specific individuals. The relationships among these positions are illustrated graphically in an organizational chart (see Figures 1a and 1b). The best organizational structure for any organization depends on many factors including the work it does; its size in terms of employees, revenue, and the geographic dispersion of its facilities; and the range of its businesses (the degree to which it is diversified across markets).
Every organization needs a structure in order to operate systematically. The organizational structures can be used by any organization if the structure fits into the nature and the maturity of the organization.
Organizations are established in specific ways to obtain different objectives, and the structure of an organization can help or restrain its advance toward accomplishing these goals. Organizations of different sized and types can achieve higher sales and other profit adequately by identifying their requirements with the structure they use to operate.
Organizations must operate within structures that allow them to perform at their best within their given environments. According to theorists T. Burns and G.M Stalker (1961), organizations require structures that will allow them to adapt and react to changes in the environment (Mechanistic vs Organic Structures, 2009). Toyota Company’s corporate structure is spelt out as one where the management team and employees conduct operations and make decisions through a system of checks and balances.
A German sociologist Max Weber was the first person who describe about the term bureaucracy. Bureaucracy is a means to create efficient institution staffed with trained experts who work permanently, whose jurisdiction is prearranged by laws and regulations, and whose responsibility comprises of applying plain broad rules to specific circumstances (Weber, 1946).