357 33 powerpoint-slides_chapter-1-understanding-organizational-systems-structure-design

Copyright © 2011, Oxford University Press, India Dipak Kumar Bhattacharyya

Dipak Kumar Bhattacharyya, Director Dipak Kumar Bhattacharyya, Director Camellia School of Business Management, KolkataCamellia School of Business Management, Kolkata

ORGANIZATIONAL CHANGE AND ORGANIZATIONAL CHANGE AND DEVELOPMENTDEVELOPMENT


Chapter-1

Understanding Organizational Systems, Structure and Design


• Organization is made of group of people with some specific goals and objectives. It is defined as relations among components of a system.

• Organization structure denotes the components and relations that bind people working with the organization.

• Three pillars of organization are the people, the organization itself (considering it as a separate entity) and the technology. People issues encompass education, training and attitudes.


Three different levels of organization structure are strategic, tactical and operational.

• Strategic level represents decision making level, i.e., the corporate or the top level of an organization.

• Tactical or business level is the middle management level,

where strategic decisions are transformed into tactics to achieve the strategic intents.

• Operational level represents the actual implementation level, where first level employees and workers, execute the tactics, adopting the actions plans.


Features of organization-

• Organization is a group of people who are organized to achieve a common purpose.

• It is an entity, a unit or an establishment, which utilises resources to achieve some common purpose.

• It shows a structure of relationship in an enterprise• It is a process, which facilitates to relate tasks and facilities of people

working in an enterprise, to achieve intended goals.


Organizations are viewed from systems perspectives, as systems is a collection of parts (or sub-systems), which is integrated to accomplish the goals and objectives of the organization. Systems have inputs, processes, outputs and outcomes, with ongoing feedback among these various parts. If one part of the system is removed, the nature of the system is changed. •Organization is viewed as a system, as organization is a unitary whole. It consists of arrangement of activities to achieve its objectives.

Systems view of Organization


Mintzberg has given us a potential classification of five different types of organizational structure. These are; (1) machine bureaucracy (standardised structure), (2) professional bureaucracy (3) adhocracy or innovative forms (relate culture to the organization), (4) simple or entrepreneurial forms and (5) divisional forms.

Each structural form indicates different pattern of behaviour of the organization.

Types of Organizational Structure-


Traditionally organization is viewed as a closed system. Closed systems perspectives consider everything as deterministic; hence organization structure should be more or less fixed, depending on the preferences of a specific organization. Open system approach to organization is considered more relevant. Open systems approach has been characterised by importation of energy, throughput, output, cycles of events, negative entropy, information input, steady or dynamic homeostasis, differentiation, integration and co-ordination, and equifinality.

Open Systems approach in organization-


Chaos theory studies the complexity of world to identify principles to understand the organizations. The theory of chaos deals with the structure of turbulence, i.e., study of unpredictable complex systems, which, per se suggests that a whole is greater than the sum of its parts. It is also similar to systems theory, as it is only concerned with systems.

Chaos Theory


Designing of organization is the process of creating a structure or chart to indicate the action for the employee groups to realise some common objectives. From traditional percept, organizational design process starts with the division of labour.

Appropriate organizational design contributes to effective performance of employees and groups. This is why every company tries to strategically design their organization to derive the advantage of high performance.

Effective organizational design is instrumental for implementing organizational strategies for achievement of organizational goals. Broadly organizational design rests on two models; bureaucratic model and behavioural model.

Organizational Design


Analysis of organizational culture is an approach to organizational design is a difficult task. Although it varies between organizations to organizations, we can draw a tentative list as under:Identify the core values and beliefs. •Uncover core values and beliefs. These may include stated values and goals, but they are also embedded in organizational metaphors, myths, and stories, and in the behaviors of members.•Acknowledge, respect, and discuss differences between core values and beliefs of different subcultures within the organization.•Look for incongruence between conscious and unconscious beliefs and values and resolve by choosing those to which the organization wishes to commit. Establish new behavioral norms (and even new metaphor language) that clearly demonstrate desired values.•Repeat these steps over a long period of time. As new members enter the organization, assure that they are surrounded with clear messages about the culture they are entering. •Reinforce desirable behaviour.

Organizational Culture and organization design

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