Organisation Theory and Design

8/10/2019 Organisation Theory and Design

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ORGANISATION

THEORY AND DESIGN


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What is an Organization?

An organization is a-

consciously coordinatedsocial entity,

with relatively identifiable boundary that

functions on a relatively continuous basis for

the achievement of a common goal.


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WHY ORGANIZATIONS

mission

goals

objectives


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Organizations have missions but

individuals have visions.


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Goals

desired state of affairs which the organization

attempts to realize

They refer to future desired results.

Present efforts are directed to these futuredesired results

And goals are predetermined.


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Missions are statements of dedication.

Goals are statements of commitment.

Objectives are statements of intentions.


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Organization Structure

Made to achieve organizational objectives

Control and coordinate activities of employees


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Dimensions of Structure

Hierarchical

Functional

Centrality


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Organization Structure

net works of formally sanctioned and relatively

durable relationship between individual and

work group, between individual and machine

and between individual and organizationalarrangements.


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Organization Design

Management side

Constructing or changing an organizations

structure to achieve its goals.


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Systems

A set of interrelated and interdependent parts

arranged in a manner that produces a unified

whole.

Eg Societies, Automobiles, Human body


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Open Systems

Environment

Input Conversion Output

Feedback


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Differentiation & Integration

Specialised functions are Differentiated

Then integrated


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Inputs(Goal

Oriented)

Outputs(External

ToOrgnzn.)

Planning

Organizing

Staffing

Leading

Controlling

Product/Services,

Profits, Customer &

Societal satisfaction,

Other Long-term Goals

Man, Machine

Material,

Method,

Measurement

Stake holder Feedback (reenergizing the system)

EXTERNAL ENVIRONMENT(Opportunities, Constraints)

StakeholdersShareholders;

Society; Customers;

Employees; Suppliers

Organizations as Open Systems


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Organizations as systems

Environment Awareness

Feedback

Cyclical character

Negative Entropy


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Characteristics of structure

Allocate responsibilities

Designates reporting relationship

Legitimizes authority to award or punish

Ensure smooth flow of communication

Uncertainty avoidance


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Lack of clearly defined structures

Motivation and morale

Delay in decision making

Loss of opportunities


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Over defined structures

Rigidity

Status demarcation

Distort error correcting mechanism


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Informal

formal


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Flat Tall


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Implementing Structure

Planning (bounded rationality)

Organizing

Staffing

Controlling

Monitoring

evaluating

Implementation


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THEORIES OF DESIGNOPTIONS


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Rational Sys tem Model

Self Sufficient

Perfect

Little human Interference

Adam Smith

Max Weber

Fredrick Taylor


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DIVISION OF LABOUR (Adam

Smith)

One man makes one pin a day.

One man draws out the wire another straightens it, a third cuts it, a fourthpaints it , a fifth grinds it at the top for receiving the heads; to make thehead requires two or three distinct operations; to put it on is a peculiar

business, to whiten the pin is another, it is even a trade by itself to put theminto the paper, and the important business of making the pin is., in thismanner divided into about eighteen distinct operations

Result

Upwards of 48000 pins a day by 10 people


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One person cannot perform al l the

operat ions

Each job requ ires special ski l ls

Repet it ion in creases eff ic ienc y

a high degree of departmentalization and

differentiation of both horizontal and verticalkind


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BUREAUCRACY (Max Weber)

Bureaucracy was developed as an ideal type

that is perfectly rational and provides

maximum efficiency of operation

Hierarchy o f Struc ture

Rules and Regu lat ions

Impersonal izat ion


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SCIENTIFIC MANAGEMENT (Fredrick

Taylor)

Develop clearly stated rules and principles to replacethe old rule of thumb methods.

Select the "best" person, and train and develop himrather than choosing the untrained and any person.

Monitor their performance closely. Divide tasks and responsibilities equally between

workers and managers.

Use the following scientific methods to improve

efficiency: Economy of mot ion

Time Stud y

Ind us tr ia l Engin eer ing


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Science of Shoveling

Piece-rate System


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Failure ofRational

System

Social

System


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Social System

Human Relations School

Hawthorne Studies by Elton Mayo,

Adhocracy by Henry Mintzberg, and

Theory Z by William Ouchi


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Social System

People do not really dislike their work. The expenditure ofphysical and mental effort is as natural as play or rest

Since they enjoy their work, they do not have to be inducedor forced to work.

They do not necessarily avoid responsibility but take it moreseriously. There is no need to breathe down on their neck asthey do not have to look for directions.

People are quite capable of innovation and responding to thechallenges of work.

KYOTO
http://localhost/var/www/apps/conversion/tmp/scratch_1/Kyoto.docxhttp://localhost/var/www/apps/conversion/tmp/scratch_1/Kyoto.docx


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Adhocracy

teams of professionals getting together for a

specific task It is a time-bound, task-bound system based on the need of the

assignment.

Decision-making processes are highly decentralized.

As it has professionals who are experts, it has a high degree of

horizontal differentiation.

there are no formal rules of conduct or operations.

rules of hierarchy do not apply.

the focus is on innovation under time and facilities constraints.

It is best suited to technology that is non-routine

Th A Th J Th Z


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Theory A Theory J Theory Z

Term of Employment

career path

decision making

Responsibility

appraisal

formal appraisal

promotion

concern for people


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Documents

Organisation Theory and Design