The organizational Structure and Culture of Family Business

This assignment will address to the students who are already having a family businesses or their parents are in an corporate organization. These students will be the main contact persons and will make a group of three to four students. You will have to look into your family business and discuss its structure and culture. Some of the outcomes will be attempted by two groups where they will compare their findings with each other. Your teacher will be moderator and will help you in assigning group members and integrating the work.

Scenario:

Consider yourself as joining an organization as management trainee, you are asked by the boss to make a report and present your findings about the organizational structure, culture and leadership approaches in the management. For merit grade you will have to present your analysis mostly about how the organization is performing in these areas and for distinction you will give your recommendations and solutions to the problems.

P1. Compare and contrast different organizational structures and cultures

Task for P1

In this area you will discuss the different organizational structure and cultures studied in the class/course. This should be descriptive area, we will encourage use of diagrams and figures representing different structures and cultures

Organizational structure is the framework of policies and rules within which an organization arranges its lines of authority. It determines how the information flows between levels of management. To construct an organizational chart following things should be involved:

Work Specialization

this is way work is divided into tasks between the workers. This way efficiency increases but the draw back is that workers might get bored by doing the same job over and over again.

Departmentalization

All organizations must have departments. This way work is handed over to the specialized people who are qualified to do the particular job in the best way possible. The chart below will clear the concept of departmentalization.

CEO

PRODUCTION

RESEARCH & DEP

MARKETING

HR

FINANCE

SALES

ADVERTISING

Chain of command

It is the system by which authority passes down from the top level of the authority to the bottom level.

Span of Control

This is the control over the subordinates a manager can efficiently control. There are two types of span of controls.

Tall and narrow

Flat and wide

In tall and narrow there are less subordinates per manager and it is easy for them to control the staff. But the decision making in this type of span of control is slow. Following is the example of a tall and narrow span of control.

CEO

MANAGER

MANAGER

MANAGER

STAFF

STAFF

STAFF

STAFF

STAFF

STAFF

In flat and wide there are more subordinates under a manager and is efficient in terms of cost but it is demotivating for the staff as managers don’t have enough time. Below is the chart for this type of span of control.

manager

Employ

Employ

Employ

Employ

Employ

Employ

Employ

Employ

Employ

Employ

Employ

Employ

Employ

Employ

Centralization & Decentralization

In centralization decision making is done by manager with very little input by the lower level personnel and all the decisions are made at a single point in the organization. Decentralization is the opposite of centralization here employees of the middle and lower level have authority to make decision and actions are taken quickly to solve a problem. This way employees are motivated as they feel that they are part of the organization.

Matrix Structure

This is defined as a type of management system in which workers report to more than one person. Workers might be having two or more supervisors at the same time. In this type of structure specialists are hired and work is done more efficiently but there might be a conflict between the two supervisors hence creating a lot of confusion.

Organizational culture: Is an idea in the field of organizational studies and management which describes psychology attitudes, experiences, beliefs and cultural values of an organization. importance of an organizational culture is to motivate their employees, to improve the Image of the organization and to improve the ability to give back to the community as aid or in charity program.

POWER CULTURE

in this type of culture power is with one person who takes all the decisions himself without consulting anyone else. Decision making is quick but lack of consultation could de-motivate staff and staff turnover is high.

Role Culture

In most of the organizations role culture is common. Organizations are split into various functions and each staff member is assigned a particular role. Here the concept of specialization is used were employees focus on their jobs and productivity is increased.

Task Culture

this type of culture promotes team work. It is very beneficial to organizations as staff fell motivated and make decisions within their group.

Person culture

Person cultures are commonly found in charities or nonprofit organizations. The focus of the organization is the individual or a particular aim.

P2. analyze the relationship between an organization’s structure and culture and the effects on business performance

Task for P2

Here you will discuss how organization culture and structure affect the organizational performance positively or negatively. This should be attempted as a continuation of P1

Organizational structure is the framework of policies and rules within which an organization arranges its lines of authority. It determines how the information flows between levels of management. To construct an organizational chart following things should be involved.

Organizational culture.is an idea in the field of organizational studies and management which describes attitudes, experiences, beliefs and cultural values of an organization.

Effects on business performance.

Organizational.structure impacts workplace culture through controlling, coordinating and motivating employees to work together to accomplish company goals and objectives.

Organizational.structure and culture affect employee behavior, motivation, performance, dedication, satisfaction, cooperation and relationships.

The decision on which structure to implement should be based on the organization’s employees, strategy and the type of work performed.

M1.Discuss the organization structure and the prevailing culture in the organization under study. Also discuss how the structure and culture affects the performance of the business.

Task for M1

This task should be taken as continuation of your answers to P1 and P2, Here you will discuss what is the prevailing structure and culture in the organization. This will be seen with the view that you can see the application of the concepts in real life.

ORGANISATIONAL STRUCTURE

Structure is the pattern of relationships among positions in the organization and among members of the organization. The purpose of structure is the division of work among members of the organization, and the co-ordination of their activities so that they are directed towards achieving the same goals and objectives of the organization. Structure defines tasks and responsibilities, work roles and relationships, and channels of communication. Structure of UFONE is tall structure which is defined below.

TALL STRUCTURE

A tall structure has one in which the span of control is narrow and, as a result, there is a large number hierarchical level. In organization with a narrow span of control will have more levels in its management hierarchy there is a “long chain of command” running from the top of the organization down to the bottom of the organization the figure below captures the concept of a tall structure.

Affects of tall structure on the performance of UFONE employees

There is a narrow span of control ie each manager has a small number of employees under their control. This means that employees can be closely supervised, and hence quality of work will improve.

There is a clear management structure meaning that employees have a clear idea of what they have to do and know who they have to be accountable.

Clear progression and promotion ladder. Equal growth and promotional opportunity as a result employees are motivated and work better in order to gain promotion.

The function of each layer will be clear and distinct.

There will be clear line of responsibilities and control.

Organizational culture: Is an idea in the field of organizational studies and management which describes psychology attitudes, experiences, beliefs and cultural values of an organization. importance of an organizational culture is to motivate their employees, to improve the Image of the organization and to improve the ability to give back to the community as aid or in charity program. UFONE has adopted task culture in their organization as defined below.

TASK CULTURE

This type of culture promotes team work. It is very beneficial to organizations as staff feels motivated and makes decisions within their group.

Affects of task culture on the performance of UFONE:

Here workers are motivated as they feel empowered and take decisions within their group. Work is done more efficiently as they are working in a group a lot of ideas are brought up to the table. Work is done quickly as all the members of the group are working on different tasks at one time.

P3.Analyze the factors which influence individual behavior at work

Task for P3.

In this area discuss the factors that influence behavior at work, your answer should focus on personality, traits and types, its relevance in understanding self and others.

Following are the.factors which affect the individual behavior at work:

Personality.of individual

Perceptions

Attitude

Ability

Aptitude

Personality:.can be defined as a dynamic and organized set of characteristics possessed by a person that uniquely influences his or her cognitions, motivations, and behaviors in various situations.

Perception:.Is the process of attaining awareness or understanding of sensory information.

Attitude: Is.a mental state of readiness, exerting a directive or dynamic influence upon the individuals’ responses to all objects and situations with which it is related.

Ability: Is a.thing that people can do, or are good at- largely believed to be inherited.”However, ability is the only one factor of performance in a work context.

Aptitude: Is.the capacity to learn and develop abilities or skill.

P4.Analyze how organizational theory underpins principles and practice of organizing and management.

Task for P4.

Discuss the major organizational theories and discuss their salient features (focus on functions of management, managerial roles, and managerial authority) – Please see the course contents for detail.

Functions of Management

Planning

Planning is the process that managers use to identify and select appropriate goals and courses of action. The three steps in planning are:

deciding which goals the organization will pursue,

Deciding what courses of action to adopt to attain those goals

Deciding how to allocate organizational resources to attain those goals.

Organizing

Organizing is the processes that managers use to established a structure of working relationships that allow organizational members to interact cooperate to achieve organizational goals.

MANAGERIAL ROLES

INTERPERSONAL

FIGURE HEAD

Is a person who normally has a prominent position but no real authority.

LEADER

A person who initiates a task and workers working under him obey his orders.

LIASION

Here managers have to make contacts with people working out of the organization to gain information.

INFORMATIONAL

MONITOR

Here managers collect information from different sources like magazines or talking to people to know what is the new trend.

SPOKESPERSON

Is the person who transmits information of the organization like the future plans, policies to the general public.

DISSEMINATOR

Is the person who provides the information received from the employees or the outside sources to the members of the organization.

MANAGERIAL AUTHORITY

POWER

power is the way a person influences another person by force according to his wishes.

AUTHORITY

Is the power delegated by the manager to the person of his choice and that persons orders are to be obeyed no matter what happen.

P5.compare the different approaches to management and theories of organization used by two organizations

Tasks for P5

This will be the comparative analysis of the two organization, you will do the comparison with another organization (assigned to another group). This will be covered through the presentation. You must give soft and hard copy of your presentation to the teacher.

The two organization under study are UFONE and MOBILINK cellular companies and here we will compare the approaches of management of these two companies.

Ufone has applied bureaucracy approach to management introduced by MAX WEBER this is normally used in large organizations where a set of rules and regulations are set for the employees and everyone is assigned what they are suppose to do also known as division of labour this concept divides the work between workers with which specialization occurs. There is a clear hierarchy in the organization everyone one knows who they are answerable to and who is working under them. Work is done in this approach to management on paper thus all the decisions, rules and actions are recorded on the paper.

MOBILINK is using human relation approach which was introduced by ELTON MAYO

M2.Discuss what approach of management adopted by the organization, with focus on management functions, roles and authority.

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.

Organization.exist to achieve goals. Management has to define goals and means to achieve them.

Planning.Process includes:

Missionƒ  Goals ƒ  Objectives ƒ  Policy ƒ  Strategy ƒ  Program ƒ  Budget ƒ  Procedure.

As we have discussed Ufone and Jazz cellular companies they have tall structures , it means there are people working in different hierarical posts such such from CEO and executive to the line managers and peons working there. Ufone has addopted multifuntional culture where a group of.people from line manager or Hr manager or any group of people relating to a particular post work as team and try to accomplish their own objective in this way Ufone has given roles to each group.to play for the achievement of the strategic goals ( Objectives of the company as a whole). The the higher the individual on the hierarchy (CEO. Executive manager etc) the higher their authorities in Ufone . the decision making is centralized in UFONE and no one is allowed to challenge.the executive decision but the executive in UFONE allowed their employees to give suggestions but the final decision remain with the CEO.

Grading Statement

P1

Compare and contrast different organizational structures and cultures

M1

Discuss the organization structure and the prevailing culture in the organization under study. Also discuss how the structure and culture affects the performance of the business.

D1

Discuss what problems can the organization face in the performance areas and what is your suggestion/solution to the problem.

P2

analyze the relationship between an organization’s

structure and culture and the effects on business

performance

P3

analyze the factors which influence individual

behavior at work

P4

analyze how organizational theory underpins

principles and practices of organizing and of

management

M2

Discuss what approach of management adopted by the organization, with focus on management functions, roles and authority.

D2

Discuss your recommendations which should use the synthesis of different approaches, this should also include the convergent and lateral thinking.

P5

compare the different approaches to management

and theories of organization used by two

organizations

Task for P1

In this area you will discuss the different organizational structure and cultures studied in the class/course. This should be descriptive area, we will encourage use of diagrams and figures representing different structures and cultures.

Task for P2

Here you will discuss how organization culture and structure affect the organizational performance positively or negatively. This should be attempted as a continuation of P1

Task for P3

In this area discuss the factors that influence behavior at work, your answer should focus on personality, traits and types, its relevance in understanding self and others

Task for M1

This task should be taken as continuation of your answers to P1 and P2, Here you will discuss what is the prevailing structure and culture in the organization. This will be seen with the view that you can see the application of the concepts in real life.

Task for D1

You must identify some problems observed regarding organizational structure and culture (there is no organization which is flawlessly perfect). You will give your recommendations and justify your recommendations in light of the management knowledge you have gained in the class.

Task for P4

Discuss the major organizational theories and discuss their salient features (focus on functions of management, managerial roles, and managerial authority) – Please see the course contents for detail.

Tasks for P5

This will be the comparative analysis of the two organization, you will do the comparison with another organization (assigned to another group). This will be covered through the presentation. You must give soft and hard copy of your presentation to the teacher.

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.

Task for D2

In this task you will come up with recommendations for the organization theory for the organization. We will encourage amalgamation of two or more approaches considering the environment in which the organization exists. In addition we will also appreciate your approach towards the solution you are recommending as it should a) solve the organizational problem, b) should also consider the internal and external environment requirement.