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Mohammed Al-Bakheet

Organisations
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Chapter 1: Organizational aspects of business

Q1 What are the goals write in details from your experience or studied in b200. Or describe the nature of goals. () The main purpose of goals is to give members a sense of direction. Managers who use goals in this way make the assumption that the clear formulation of goals will influence performance. Goals are sometimes defined as future orientation of the company. A narrow definition considers goals to be the ultimate, long-run, open-ended attributes or ends a person or organization seeks Organizational goals are the stated goals of an organization exist to give direction to the activities of its members Characteristic of goals: They are overall statement of intend (a mission statement) A setoff more detailed objectives to guide strategic planning Goals are highly political because orgs. Are made of a set of group. Look at goals as there set by senior mgt. Goals have a role to shape culture of an organization. Goals might lead to conflict within the organization.

The main purpose of goals is: 1. To give members a sense of direction. 2. To reduce ambiguity and conflict. 3. To guide performance of the organization. The nature of goals considers goals to be the ultimate, long-run, open-ended attributes or ends a person or organization seeks. There is a clear distinction between: - Goals, they are bounded, generalized statement of intent - Objectives, those intentions that can be measured within a certain time frame. - Strategies, are seen as processes by which goals are determined through the adoption of certain courses of action and the allocation of resources - Closed-ended goals are those which have already defined and measurable targets to be achieved within a stated time. - Open- ended goals; they are the ones that include broad statement of intent such as pursuit of excellence. - Goals have seen as mission which is a master strategy which has a visionary content. Mission, objectives and strategies are different types of goals. Goals as: - Official goals are the statement of intent which occurs in official document. - Operative goals, they reflect the behavior that is actually occurring. Multiple goals: different interest groups have different good results in conflict.

How goals are developed? An interest group may be: 1. An entire department, such as marketing or research and development.
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2. A particular section within that department such as a project team. 3. A less formal grouping of managers within a department who collectively wish to purchase a specific policy. We can conclude the following about goals: 1. Most groups in an organization will agree to those goals formulated by senior management as a means of achieving their own goals. 2. Most organization members would appear to accept the goals of top management with little question. 3. The dominant coalition normally sets up a series of controls to ensure compliance to their goals. 4. In many firms senior management acknowledge that different groups may have their own goals which need to be satisfied. Q2 What are the structures write in details from your studied in b200. ** Or describe the nature of Organization Structure. () Structure is grouping of activities in the most suitable manner to achieve the goals of the dominant coalition. Organizational structure is a grouping of activities and people to achieve the goals of the organization. Q3 What are the factors that affect an organization's structure? The factors which influence structure:

1- TECHNOLOGY Improved technology includes machines of all sizes, shapes, and functions; processes that enable business to produce goods at faster speeds, with lower costs. Knowledge Economy as a new knowledge is reshaping and transforming old industries, creating new businesses. 2- SIZE can be measured in several ways - by annual sales, profits, number of full-time employees, and increase in size might create problems in coordination and control causing changes in structure. 3- ENVIRONMENT Organizations in stable environments tend to have a different kind of design from organizations in unstable environments. 4- CULTURE An organizations culture includes all the values, symbols, beliefs, and language that guide behavior. 5- INTEREST GROUPS a shared interest and interdependence develops between a company and other groups the organization is interacting with its stakeholders who are people and groups affected by, or that can affect, an organizations decisions, policies, and operations. Stakeholder groups exist in many forms.

Q4 - List the 5 types of organizational structure given in the organization module?

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Or describe the basic forms of organization structure (design). Outline the advantages and disadvantages of each. Final 2011 Types of structure: --

1. Functional: where Employees performing related specialist tasks are grouped together under a single Management structure. This type is mostly suited to a single product firms. 2. Divisional: (multidivisional) associated with the market expansion and product Diversification, each division is self contained and operates as a profit center. 3. The holding company: It is a group of independent companies controlled by a coordinating group usually made up of chief executive of constituent companies. 4. The project team: this in specially crated temporary units to deal with a special task with no hierarchy management to meet a specific need for a client. This type of structure is common in high tech firms and some types of service org. 5. The matrix: it in an attempt to combine the best of all worlds: Project managers coordinate teams of employees drawn from different functional departments. Customer orientation of the project. The economics of used and specialist orientation of the functional organization. The product or market focus of divisional company. 22

Three different types of flexibility: 1. Functional flexibility; this is achieved when employees are trained 10 move between jobs and able to perform different tasks as the need arises. 2. Numerical flexibility; this is the ability of firm to make changes of the head- count to meet changes in demand. 3. Financial flexibility; this is needed for reflect changes is the S+D of labor. and to enhance the operation of functional and numerical flexibility.

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Q5 What are the ownerships write in details from your experience or studied in b200.
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Owners can be clearly defined and their impact easily assessed. Discovering who actually owns and controls businesses becomes much more difficult with large corporations like the major oil companies. Two aspects of ownership and examine the implications for the way businesses operate: 1. With the traditional debate surrounding ownership control. 2. Examine the issue of the public of organizations and the trend of privatization. There are two types of ownership: 1. Private ownership or private sector, individuals and organizations own and operate their companies that conduct business. 2. Public ownership or public sector, the government directly owns the organization. 3 types of public sectors: a- Nationalized industries: wholly owned and control by the state. b- Companies: controlled by the state acting as a majority shareholder and holding company. c- Organization: such as health, education, offers its services to the population and funded indirectly through the taxation system. Who are stock holders? - There are two types of stockholder: 1. Individual can purchase shares directly through stock brokers. 2. Institutional, who indirectly purchase shares in financial institutions. Privatization It is the transfer of activities from the public sector to the private sector. The Governments opposition to the public sector its belief in the private sector focuses on issues of efficiency and effectiveness, as well as control. Heald sensed that the pro-privatization lobby viewed the public-sector organization as inherently flawed, which no amount of attention paid to efficiency and control can cure. The privatization enthusiast's case rests upon two major assumptions: 1. Public-sector organizations are seen as less effective instruments of public policy than those of the private sector. 2. The political objectives of public ownership are seen as less valid than the market criteria of private enterprise.

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Q6 What are the Size write in details from your experience or studied in b200.
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The influence of size as organizational variables interacts across all levels of the business model. Employing large number of people require special expertise in the area of recruitment, training, job evaluation, payment system and industrial relations. - There is a relation between size and R+D function. - Size is related to dominance in the market place. - There is a clear correlation between size and profitability Small businesses Small business contributions to the economy: : - Innovation and flexibility. - Competition which forces larger companies to stay competitive. - Ability to maintain close relations with customers and community. - They generate job opportunities. - They give employees opportunities to gain experience in many years. - They offer challenge and freedom to risk-takers. The value of small businesses The value of small businesses may be viewed in terms of the benefits to the owners, their impact on economic growth, the number of jobs they provide to families, and their service to the consumer. Advantages: - Self-employment offers the individual far greater opportunities for control, and perhaps greater satisfaction through direct involvement, than working for someone else. - Seen as filling gaps in the marketplace by offering specialist products that would be uneconomic for large firm to offer. - Exploited by big business and the main economic advantages of a small business presence accrues to the large company. - More innovate and great provider of employment. - Price takers so they offer no threat to inflation. Some problems that plague small companies' more than larger ones and limit their development are: 1. Inadequate financing. 2. Inadequate management (especially as the firm grows). 3. Burdensome government regulation and paperwork. Some current trends challenging small businesses are: 1. A more diverse work force. 2. Empowerment and team performance. 3. Exploding technology. 4. Occupational and industry shifts. 5. A move to global operations.

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Q7 What are organizational culture write in details from your experience or studied in b200. Or discuss the importance and determinants of an organization's culture.

Refer to those factors which enable us to distinguish one organization from other and are the product of its history, management, operating environment and so on. It is a collection of shared beliefs, values, rituals, stories, myths, a specialized language that foster a felling of community, and common identity among organization members. Organizational culture is both a set of distinguishing features that mark off one organization from another and more popularly used has become a set of universal principles guiding best practice. The nature of organizational or corporate culture: The concepts are used in two different ways: 1. It is used to understand the social phenomena in org. and to explain the difference between companies especially the ones operating in the same product market. As, history, size, technology, goods, objectives, environmental and people. 2. It is used by management to achieve certain strategic end that could incorporate Improved performance or the control of labor or both. Types of corporate culture: 1Power culture: - Absence of bureaucracy and control is exercised by a central power - Found in small firm and the big size of firm threat it - Refer as family 2Role culture: - Classic bureaucracy - Slowness in responding to change - Refer as Eiffel tower 3Task culture: - Focus on getting job done and flexibility and responsiveness to market changes - Refer to this culture as a guided missile 4Person culture: - Focus on individuals to satisfy the need of them - Refers to this culture as a incubators Characteristics of strong cultures: Guiding values are set by the senior mgt and shared and communicated to the employees. Strong cultures are strengthen by rituals such as appropriate rewards Strong cultures are associated with hero figure who exemplify key values Strong cultures are strengthening further by more formal procedures such as special design and training. 123456The notion of excellent company : bias for action clear objectives closeness to the customer identifying customers' needs autonomy and entrepreneurship create coherent team productivity through people participation of workforce hands on value driven strong corporate culture stick to the knitting limiting activities to avoid diversification () 7

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7simple form avoiding complex hierarchies 8Simultaneous loose-tight properties organization structure display combination of strong direction with work-group autonomy

Chapter 6: Classic theories of Bureaucracy

Q1 Write about Durkheims Classic theory of bureaucracy. 1- Durkheim For Durkheim the important point about increasing differentiation and specialization of the division of labor was the implications of the new differentiation for social solidarity. Durkheim's distinguishes two different kinds of solidarity: A. mechanical solidarity: employees "members" are very similar to each other B. Organic solidarity: members are differentiated and individualized Mechanical solidarity -Based on high degree of resemblance of individuals. -Individual is absorbed into society. -Individuality barely developed. -Member similar to each other. Organic solidarity -Parts of society & individuals are differentiated & individualized. -come from functional interdependence & exchange-relationships. .

Isolated individual is the person entering into exchange relation in order to maximize his personal returns is itself. According to Durkheim, a product of social development and presupposes a moral order, the spread of the ideals of individualism is not a symptom of a pathological condition of society, but on the contrary is the normal and healthy expression of the social transformations that are engendering a new form of social industry. The important point is that Durkheim argued that the function of generating social solidarity was performed by certain factors, in modern society been replaced by the division of labor. The increasing development and differentiation of the division of labor was a source of stability and social solidarity. Durkheim demonstrates that there are some abnormal forms of the division of labor: These abnormal forms are the result of three conditions: The division of labor is often not spontaneous The division of labor can produce abnormal effects because it is anomic. For Durkheim, anomie resulted from the lack of social control as a result of uneven development of economic conditions and social solidarity, of the individualization witch has moved ahead of the necessary development in social regulation. As a result, the economy is unregulated and liable for crisis, alienation, on the other hand results from certain sorts of social control. Abnormal development of the division of labor concerns the fact of organization itself.
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The difference between Durkheim and the other theorist: The difference between Durkheim and the other theorists is one of degree. Both the other theorists were concerned with the possibility of societal instability Followed by the development of conflict relations between privileged and negatively Privileged classes. Durkeims prime concern was with how it is that societies hold together.

Q2 Write about Webers Classic theory of bureaucracy. Or Discuss how Weber analysis the nature of new organization? 2 Weber Weber regarded the organizational developments described earlier as constituting the development of bureaucracy, a type of organization which expressed a wholly new principle of organization and which represented a radical departure from traditional organizational forms in a number of respects: 1 - The basis of authority within the organization. 2 - The methods and principles of control. 3 - And the basis of decision-making and planning. Weber sees bureaucracy as characteristic of many aspects of social life, the Church and state, of armies, political parties, he also sees it as characteristic of economic enterprises. The development of capitalism has been marked by; 1 - The progressive expropriation of workers from the means of production. 2 - By the increase in size of the enterprise. 3 - By increased specialization and mechanization, and the increase in the functions and size of management.
According to Weber, capitalism and bureaucracy both depend on the same basic principle or attitude: that of rationality.
Webber sees that the capitalist system played a major role in the development of bureaucracy.

Capitalism as an economic system or attitude is distinctive for its pursuit of profit, and forever renewed profit, by means of continuous rational capitalistic enterprise. Capitalism must be distinguished from traditional, pre-rational attitudes and economic systems. When Weber described an institution as rational, he was making a number of precise points: A. he was distinguish the institution from traditionalism B. he was describing the institution not evaluating it C. rationality itself was of two forms formal and substantive Formal: refers to installation (or possibility) of accurate calculations of the nature of decisions, or the organization of conduct around certain explicit, formalized rules & principles. (calculation as :costs, quantities, profits, results ect) Substantive: refers to the relationship between results & overall, general guiding principles. According to Weber, in order to achievement of high standards of formal rationality within an economy is dependent on a number of factors: - Expropriation of the individual worker from the mean of production - Stringent discipline. Webers analysis of the nature of the new organizational forms of the nineteenth century focused attention on:
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1The development of organization with radically new forms and mechanisms of control which he` called bureaucracies. 2These new organizations involved a totally new basis of authority. Personal and traditional ties between leader and led are irrelevant to the bureaucracy. 3These were organizations are described as rational.

The social and personal consequences of the new organization are revealed in three ways: 1Classes and their inter-relationships. 2Progressive expropriation of employees, workers, managers from their work, their product. 3Organizations affect the lives of individuals directly by controlling and dominating them through their employment. The expropriation The expropriation of workers being a result of the depersonalization of labour within capitalism, and its use purely for economic production is also required by the needs for centralized control, which results in the emergence of management, for this group takes over the control, monitoring and decision-making of the workers. The process of expropriation of employees from control over their work, products and labour is not restricted only to shop-floor employees. The process applies also to whitecollar workers and to management itself.

According to Weber, the ideal bureaucracy exhibits five basic characteristics: 1) The organization should adopt a distinctive division of labor, and each position should be filled by an expert. 2) The organization should develop a consistent set of rules to ensure that task performance is uniform. 3) The organization should establish a hierarchy of positions or offices that creates a chain of command from the top of the organization to the bottom. 4) Managers should conduct business in an impersonal way and maintain an appropriate social distance between themselves and their subordinates. 5) Employment and advancement should be based on technical expertise, and employees should be protected from arbitrary dismissal.

In general Weber's interest is in the changes of values and priorities witch accompanied the process of industrialization particularly the gradual transcendence of rationalism. Weber's analysis also focus on, the emerging structure of organizational control and the establishment of both management and shop-floor levels of systems of direct control over personal and performance.

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Q3 Write about MARXs Classic theory of bureaucracy. 3 - MARXs Marx maintains that the nature and organization of work in modern large scale work organizations reflect the essential nature of the employment relationship, which in turn determines all other aspects of society since it establishes the basic groupings (classes) and their relationships and is therefore regarded as the key feature of capitalism. Capitalism as a form of economy and society is revealed through the organization of work and the nature of work relationships. Under capitalism work relationships are characterized by the sale and purchase of labor power. Capitalism As a form of economic & society is revealed through the organization of work & the nature of work relationship. Politicization: it is a result by the overlapping of search for profit with the need for grater control in work. At work this conflict relationship between expropriating employer/capitalist and expropriated employee gives rise to a number of necessary features of work under capitalism: a. The need for management to direct and organize the labor power that is purchased. b. control and discipline potentially recalcitrant employees whose commitment is always unreliable. Profit from the use of purchased and exploited labor power creates conflict between employers and employees, greater efficiency at achieving profit is inevitably and irrevocably interconnected with greater control and discipline. The basic overlapping of the search of the profit with the need for greater control results in the politicization of the all aspects of work organization. In the first place the design of work, the distribution of work rewards, the level of wages, the state of work conditions etc. reveal the primacy of profit over all other considerations, and demonstrate class based assumptions about the value and moral worth of the hands. Secondly, the design of work, the use of technology, mechanization, bureaucratization, the development of supervision and management, the emergence of specialist groups within the enterprise are all part and parcel of capital's efforts to increase profitability, cheapen labor, reduce the impact of employees antipathies and resistance, and increase discipline and control. Marx writes the division of labor within workshop implies the undisputed authority of the capitalist over men that are but parts of a mechanism that belongs to him Technology is used to cheapen labor and to deskill it and make it easier to obtain and transfer workers.

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The features of work in capitalism have 2 major consequences: 1Conflict relations between employer & employee OR capitalist & proletariat. 2Alienation of the worker. While Marx admits that all large scale enterprises require some consideration, management in the capitalist enterprise is necessitated by the attempt to achieve profit from the employment of alienated labor power. Capitalism requires managers as an army requires officers, to command in the name of the capitalist. Certain essential aspects of capitalism assist the development of class consciousness among the proletariat. The nature of work itself, mechanization, degrading activities, de- skilling; the low wages allocated to labor, and the tendency for these to decrease; the increasing pressure of work, the exhaustion of long hours.

Certain essential aspects of capitalism assist the development of class conscious among the proletariat: 1The nature of work itself mechanization, degrading activities, deskilling. 2The low wages allocated to labor. 3The tendency for these to decrease, the increasing pressure of work-the exhaustion of long hours, or of intensively organized work regimes , add to the deprivations of the employees and encourage the development of hostility. Constitutes the alienation of labor 1. work is external to the worker, not part of his nature, & does not fulfill himself in his work but denies himself, has feeling of misery than well-being, dose not develop freely his mental & physical energies, but he is exhausted & mentally debased. 2. The work is not voluntary, but imposed, forced labor. Not satisfaction of need, but only a means of satisfying other need. Q4 What are the similarities between three theories ?** Or Outline the main similarities between the classic theories of bureaucracy of Weber, Durkheim and Marx.

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Q5 what are the disagreements or differences between three theories?** Or Outline the main differences between the classic theories of bureaucracy of Weber, Durkheim and Marx.

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Chapter 7:

Work Organizations, Managerial Strategies and Control

Q1 define the organization and what that goals are important both in distinguishing organizations form non-organizations?
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- Organization: An investment, a deliberate and rational means for attaining known goals. Also an organization is a collection of people working together under a defined structure for the purpose of predetermined outcomes through the use of financial, human and material resources. - On way is still to accept that goals are important both in distinguishing organizations form nonorganizations - Official goals of an organization the general purposes of the organizations are put forth in the charter, annual reports, public statements by key executives and other authoritative pronouncements. - Operative goals, which designate the ends sought through the actual Q2 What are bureaucracy talk about it in details? Or define Webers model of organization bureaucracy by using the 3 points and what are ?the benefit of bureaucratic organization structure Bureaucratic structures
In Weber's original statement on bureaucratic structures the issue of control is central. The formal structure of an organization may be so designed as to maximize the exercise of control by those possessing legitimate power in the organization. Weber regarded the modern organization as a highly rational form of administration in which each of the characteristics is designed to enhance the rationality of the whole.

Bureaucratic dysfunction often appears to arise from the attempts by management to increase control in the organization. Such attempts at control may derive from the need for greater efficiency or may be seen as management asserting its power the two are not mutually exclusive. Direct control may be achieved by a high centralization of decision making in the organization. Indirect control may be achieved through invoking the bureaucracy rules the imposition of the system of
rules in the organization ensures standardization in functioning.

Bureaucracy Functional or dysfunctional When situation arises whereby members of an organization are constantly pressured into reliability, certain effects flow:
In the first place, there is a reduction in personalized relationship.

Second, an over-internationalization of the rules of the organization may occur, suggesting that the function of rules is changed whereby rule following becomes an end in itself rather than as a means of achieving the goals of the organization.

Third, an emphasis on control can lead to the position where categorization is so restricted that the search for alternatives that is essential to decision-making becomes self-restricted reading from the book page 100 2 nd and 3rd paragraph

Q3 What are the main characteristics of a bureaucracy?** A set of characteristics defines bureaucracy, these characteristics, which apply to all members of bureaucracy: The staff members are personally free, observing only the impersonal duties of their office
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There is a clear hierarchy of offices The functions of the offices are clearly specified Officials are appointed in the basis of a contract They are selected on the basis of a professional qualification, ideally substantiated by a diploma gained through examination They have a money salary and usually pension rights. The salary is graded according to position in the hierarchy. The official can always leave the post, and under certain circumstances, it may also be terminated The official's post is his sole or major occupation There is a career structure and promotion is possible either by seniority or merit and according to the judgment of superiors The official may appropriate neither the post nor the resources which go with it He is subject to a unified control and disciplinary system

Q4 What are contingency perspectives and what are the basic principles of contingency model derived from Burrell and Morgan studies? ** Contingency perspectives suggest that which is about formal structure of organizations might vary according to the circumstances of the organization. The basic principles of contingency model derived from Burrell and Morgan studies: Contingency theory argues that the analogy of a biological organism is appropriate for the study of complex organizations , The theory employs an open system perspective, I.e. one which emphasizes the importance of the environment with in which an organization operates There is an interdependence between an organization and its environment Those using contingency theory tend to focus upon the organization per se and seek to separate it form the environment It is the actual nature of relations between organization and environment that constitutes the primary focus `of contingency theorists The survival need for the organization is perceived as the central relationship between organization and environment Each organization, in addition to being a sub-system of the environment, consists of a number of interdependent sub-systems each of which is a functional imperative in relation to the total process ,i.e. there are a number of essential processes which must be achieved within each organization The sub-system or key processes comprise the strategic control, the operational, the human and the managerial. These four interact and engage in a processes of mutual influence with themselves and their environments There is considerable variation in each of the sub-systems stressing strategic, technological and organizational choices Environments may be distinguished by the degree of uncertainty they experience, bearing in mind that the notion of a stable, predictable environment is perhaps only theoretically possible .

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Chapter 8:

Studying Organizations: An Introduction

Q1 what is the Domain Assumptions of Mainstream Approaches? The mainstream approach presents a view of organizations where the purposes of the organization are clear, agreed, shared; whereas decisions are taken on clear and rational grounds; where all staff know and agree what they are doing and work co-operatively together for the shared larger organizational purpose; where the structure and processes of the organization are carefully designed to ensure efficiency; and where management strives to ensure coordination and control for the achievement of the organizations goals. Q2 Organization as a goal seeker, and the role of management. Explain.
Organizations as goal-seekers If organizations are consciously created instrument, then their purpose can be defined in terms of goal-seeking. This is provides a means of distinguishing organizations from social institutions or movements, which do not manifest systematic structures and processes for controlling relations between means and ends. There is an assumption that the organization has some capacity to resist environmental constraints and set its own pattern. Members of organizations may have goals, which are contradictory to senior management; creating gaps between formal and informal, official and operative, goals and actual policies. In search of the rational- efficient organization The emphasis on collective goal-seeking can only be sustained by a vision of organizations as rational instruments or tools; indeed this was a prime theme of which formed the basis of modern organizational analysis.

Q3 what mainstream is strongly influenced by? Mainstream is strongly influenced by:

12345Organization cooperative social systems self regulating bodies. Tending towards a state of equilibrium and control. Organization is a unitary body combining the activities, values and interests of all participants. Organization is a system of interrelated parts or sub-units working towards the ultimate goal. Division of labor plays a significant role to sustain social solidarity and the survival of the organization.

Q4 what are the major characteristics of mainstream?

1. 2. 3. 4. 5. The purposes of the organizations are clear, agreed and shared. Decisions are taken on a clear and rational ground. All workers and staff agree on what they are doing and work co-operatively and collectively towards the organization purpose. The structure and processes of the organization are carefully designed to ensure efficiency. Management strives to ensure coordination and control of achievement of organization's goals.

Q5 What is the Domain Assumptions of a Critical Approach?

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Domain Assumptions of a Critical Approach has four kinds there are: 1- Reflexivity Critical perspective must first of all be reflexive. That is they must have the capacity to reflect upon themselves, so that values, practices and knowledge are not taken for granted. In fact, our inability to experience large organizations directly in the same way, as individuals or small groups, subordinates or power holders, creates special problems for studying organization; problems which are often resolved through the use of unsatisfactory substitutes such as metaphors, organizations are like machines, garbage cans or prisons 2- The embeddedness of organizations A further guiding principle is the necessity to be historical and contextual. Organizational theory and practice can only be understood as something in process, otherwise the search for general propositions and instant prescriptions becomes disconnected from reality, as it has done in conventional a historical approaches 3- Dialectics and contradiction Many critical theorists utilize the notion of dialectical perspectives a crucial means of explaining the dynamic of organizational change. In abstract terms a dialectical process refers to a movement from thesis to antithesis and synthesis and derives from Hegel and Marx. More frequently it is used to denote a reciprocal interaction, between structure and human agency or between conflicting groups. Management control strategies are fundamentally a means of dealing with contradictions, uncertainties and crises in their socioeconomic environment. Management responses are likely to develop into alternative control methods, blending with and going beyond the old. 4- Social transformation Social transformation is the social relationship, i.e. open day for employees with their families.

Q3 Discuss the two approaches that describe work at organizations: the mainstream approach and the critical approach. Clarify the major terms and concepts used by each approach.

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Chapter 11:

Organizational Structuring and Re-Structuring

Q1 what are the Reasons for Restructuring? Bureaucracies were unable to respond quickly to changes in the market. They were unable to meet the demands of consumers or to stay close to consumers. New structures enable companies to foster commitment, respond quickly to market demand, and stay close to the customer From an organizational re-structuring point of view the hard aspects are to be found in the drastic cuts in head counts, the downsizing and the outsourcing. The soft side of the rationale is to be found in the ideas of empowerment the learning that is required to cope with multiple demanding tasks, and the team working that is invoked As competitive conditions changed these systems found it hard to adapt Bureaucracy was used to command and control The restructuring that has excited attention in recent years goes well beyond mere adjustments in size and tinkering with the classical form. From an organizational re-structuring point of view the hard aspects are to be found in the drastic cuts in headcounts, the downsizing and the outsourcing. Organizational structuring and re-structuring are intimately intertwined with many aspects of human resource management. Q2 what are the key attributes of bureaucracy? And what are three sets of unanticipated consequences and dysfunctions of bureaucracy have been pointed out by various organizational analysts? The key attributes of bureaucracy in the descriptive, social science, sense can be summarized as follows: 1- A clear division of work with stipulated boundaries to responsibilities; officials are given authority to carry out their assigned functions. 2- Referral by role occupants to formal (written) rules and procedures which ensure predictability and reutilization of decisions. 3- A well-defined hierarchy of authority. 4- Appointment to posts arranged not through patronage or bribery but on the basis of technical competence. 5- A system of rules with formal (written) documentation of actions and decisions.
Three sets of unanticipated consequences and dysfunctions of bureaucracy have been pointed out by various organizational analysts: 1- The first derives from the emphasis on control. This can prompt rigidity of behavior and defensive routines. 2- The second focuses on the implications for the behavior of subunits. Division of task and responsibility can elevate departmental goals above whole system goals, that is, lead to sub optimizing behavior. 3- Thirdly, as a result of the impersonality of rules the minimal acceptable standards can become transformed into targets and behavioral norms. Rules and procedures can also become ends in themselves.

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Q3 what are the Factors that influence choice of organizational structure? Old Success Factors: Size, role clarity, specialization and control. New Success Factors: Speed, flexibility, integration and innovation. Factors that influences choice of organizational structure 1. Senior managers will usually want structures which enable a clear and direct flow of communication from top to bottom and possibly may also want to facilitate upward communication as well 2. Power struggles can occur between SBUs which seek to use optimal supply chain rationalities, and divisions which have assets to protect, such as sales or capital investment or jobs 3. Various contingent factors such as technology have been argued as exerting an influence on organizational structure 4. In recent years new technologies have begun to influence organizational structures and to a large extent, open them up: the mobile phone, PCs, laptop computers, modems and networked databases. Q4 Faced with rapidly changing environments many employers have responded by downsizing. Discuss the effects of downsizing and decentralization upon bureaucratic organizations using the material from the B200 Organizations. The discussion of key changes within traditional organizational boundaries is organized under three headings: 1- Downsizing and lean production: In response to changes in the business environment many organisations have chosen downsizing and have retreated upon long term commitments to employees. The strategy of many companies over the past few years has been to reduce their size; take costs out of the business; increase productivity by having fewer people undertake the same or even more work; and re-focus activity on the core business. Senior executives were rewarded for so doing: share prices tended to rise when these steps were taken and top management salaries increased. It has been suggested that when properly implemented the lean organization concept should involve a phased journey from cutting back on non value-added activities and downsizing to a reformed stage where activities smoothly interconnect in a more efficient manner. However most organisations appear to be stuck at the downsizing stage and not moving on to JIT and TQM. 2- Devolved management: Divisionalization and strategic business units The past 20 years has favoured decentralisation there is probably a cycle of centralisation and decentralisation at play! Synergies and big company advantages may be lost by decentralisation. Delayering has continued. There is an inherent danger in devolving HR to line managers as they may focus on short term priorities. Hamel and Prahalad argue that senior managers should seek to identify and exploit the interlinkages across units that could potentially add value to the corporation as a whole. No longer will organizations use boundaries to separate people, tasks, processes and places; instead, they will focus on how to permeate those boundaries to move ideas, information, decisions, talent, rewards and actions where they are most needed. 3- De-structured organisations: The new watchwords are teams, lateral communications, the minimization of hierarchy, and the sparse use of rules.

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B200-B

Organisations

No longer will organizations use boundaries to separate people, tasks, processes and places; instead, they will focus on how to permeate those boundaries to move ideas, information, decisions, talent, rewards and actions where they are most needed. This amounts to a paradigm shift towards boundary-less structures

Chapter 12:

Beyond Organizational Structure

Q1 Define Supply chain management ((Re-engineering)) and what the key elements of process innovations?
Supply chain management. ((Re-engineering)) The central idea of re-engineering is that in order to survive under the new competitive conditions, companies must re-orient themselves around their core processes the start to finish sequence of activities which create customer value. Re-engineering means the end of narrow jobs, the end of supervisory management. The key elements of process innovations are said to be:
: .

1- A fresh start, blank sheet review. 2- A process rather than functional view of the whole organization. 3- Cross-functional solutions. 4- Step change. 5- The exploitation of information technology. 6- Attention to work activities on and off the shop floor. 7- Adoption of a customers view of the organization/producing value for customers. 9- Processes must have owners.

Q2 what HRM tasks and responsibilities ? 1. Awareness 2. Changing mindsets and behavior 3.using measures to track performance 4. Process improvement and redesign

Q3 Why are so many organizations finding it necessary to reengineer themselves? We noted in an earlier chapter that all systems, including organizations, are subject to entropy a normal process leading to system decline. An organization is behaving most typically when it maintains the status quo, does not change in sync with its involvement, and starts consuming its own resources to survive. In a sense, that is what IBM did. The firms managers grew complacent and assumed that IBMs historic prosperity would continue and they need not worry about environmental shifts, foreign competition, and so forth- and entropy set in. The key is to recognize the beginning of the decline and to immediately move toward reengineering. Major problems occur when managers either do not recognize the onset of entropy until it is well advanced or else are complacent in taking steps to correct it. Q4 Explain characteristics of reengineering? 1- Several jobs are combined in one. Combining several jobs in one reduce errors, delays and miscommunication. 2- Employees make the decision. Employees are empowered to act, and technology give them the information they need to make informed decisions. 3- Work performed where it make the most sense. An example of this is making responsibility for recruiting and selection team members to team instead of HR department at some corporate headquarters. 4- Controls are used only where they add value. Checking, approving and reconciling adds up to overheads, which sometimes cost more than any amount saved by having control system in place.
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B200-B

Organisations

Q5 What does mean by Strategic outsourcing? Outsourcing refers to the situation when a company subcontracts to another supplier work that it was previously performing in-house. Outsourcing entails the externalizing of production and services. There are many different types of outsourcing activity and usage. Some of the instances are piecemeal and opportunistic with little strategic character. Office cleaning is an example in most circumstances. The reasons for the growth of outsourcing are many. In a complex, fast-moving market, it is a speedy way to gain access to specialist services, as well it reduce costs by sourcing from low-cost products. Outsourcing also enables flexibility in the supply can be more readily turned on or off. Ex, Office cleaning is an example in most circumstances.
The reasons: fast-moving market, it is a speedy way to gain access to specialist services. Problems: the potential loss of expertise in certain areas which may be difficult to recover.

Q6 Restructuring within organization boundaries. Discuss / or Describe two new types of organizational structure which cross traditional organizational boundaries and discuss the implications of implementing them? De-structured organisations: The new watchwords are teams, lateral communications, the minimization of hierarchy, and the sparse use of rules. No longer will organizations use boundaries to separate people, tasks, processes and places; instead, they will focus on how to permeate those boundaries to move ideas, information, decisions, talent, rewards and actions where they are most needed. This amounts to a paradigm shift towards boundary-less structures. Old Success Factors: Size, role clarity, specialization and control. New Success Factors: Speed, flexibility, integration and innovation. 1- Joint ventures, organizations are able to achieve a number of objectives:

1- Large companies using their marketing expertise and systems can bring new products developed by smaller companies to market rather faster than a small company acting alone. 2- Additionally, large companies may seek a joint venture in order to gain a foothold in new product areas and to acquire new expertise rapidly. 3- A third reason for joint ventures is to enable the partners to reduce their cost base by pooling resources. Companies have often cut their staffing levels and reduced their distribution costs. 4- A fourth factor is that certain developing countries such as India and China may disallow inward investment which is not tied to some form of joint venture with a domestic concern. 2- Networks and virtual organizations: - Definition: A network organization has been defined as an economic entity that operates through a cluster of compact business units, driven by the market, with few levels of decision making and a willingness to outsource whatever can be better done elsewhere. - Human resource management considerations: The underlying logic of network organizations as presented by their advocates and practitioners is that know-how and resource capability are now critical factors, and these are increasingly difficult to locate within the boundaries of a single organization.
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Organisations

- Know-how and capability are increasingly distributed across a network of different business and contractors. But if this is so, the human resource management challenge to identify, retain, develop and appropriate such scarce resources are immense

Q7- Discus the spectrum of relationship structure beyond conventional organizational boundaries?

Command/hierarchy

Open market
Diversified Networks and virtual organizations

External

Figure 11.2 a spectrum of relationship structures Strategic outsourcing beyond conventional organizational boundaries
Supply chain management and process engineering

Joint ventures

Internal

Bureaucracy

Focused
Performance-based control

Task-based control

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