Hierarchical organization, Organizational Structure, Culture of the Organization

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LESSON 4

Unique Attributes of Organization

Organizations can be distinguished on the basis of various criteria. These are as follows.

Organizational structure

Culture of the Organizations

Management Style

Decision Making Style

4.1 Organizational Structure Pyramid/Tall/Hierarchical

4.1.1 Hierarchical organization

A hierarchical organization is organization structured in a way such that every entity in the

organization, except one, is subordinate to a single other entity. This is the dominant mode of

organization among large organizations; most corporations and governments are hierarchical

organizations

Low number of subordinates per supervisor

Long chain of command

Greater number of levels

4.1.2 Organizational Structure

Flat

Flat organization refers to an organizational structure with few or no levels of intervening management

between staff and managers. The idea is that well-trained workers will be more productive when they are

more directly involved in the decision making process, rather than closely supervised by many layers of

management.

This structure is generally possible only in smaller organizations or individual units within larger

organizations. When they reach a critical size, organizations can retain a streamlined structure but cannot

keep a completely flat manager-to-staff relationship without impacting productivity. Certain financial

responsibilities may also require a more traditional structure. Some theorize that flat organizations

become more traditionally hierarchical when they begin to be geared towards productivity.

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Following are the characteristics of a flat organization.

· High number of subordinates per supervisor

· Short of chain of command

· Less number of levels

· Eliminates middle level managers

· Decentralizes authority to low level managers

4.1.3 Culture of the Organization

Organizational culture is the specific collection of values and norms that are shared by people and groups in

an organization and that control the way they interact with each other and with stakeholders outside the

organization. Organizational values are beliefs and ideas about what kinds of goals members of an

organization should pursue and ideas about the appropriate kinds or standards of behavior

organizational members should use to achieve these goals. From organizational values develop

organizational norms, guidelines or expectations that prescribe appropriate kinds of behavior by

employees in particular situations and control the behavior of organizational members towards one

another.

Culture is set of Fundamental Assumptions that exist and grow with the organization. It's not publicly

announced but spoken about within the organization. It is a combination of implicit values that keep the

organization together. It is essential that the employees understand the culture-What drives the

organization.

4.2 Management Styles

Authoritative

Participative

Mixed

4.2.1 Authoritative

· An Autocratic or authoritarian manager makes all the decisions, keeping the information and

decision making among the senior management. Objectives and tasks are set and the workforce is

expected to do exactly as required. The communication involved with this method is mainly

downward, from the leader to the sub-ordinate critics such as Elton Mayo have argued that this

method can lead to a decrease in motivation from the employee's point of view. The main

advantage of this style is that the direction of the business will remain constant, and the decisions

will all be similar, this in turn can project an image of a confident, well managed business. On the

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other hand, subordinates may become highly dependent upon the leaders and supervision may be

needed. Decisions are taken centrally by the senior management themselves and are enforced at all

levels.

4.2.2 Participative

In a Democratic style, the manager allows the employees to take part in decision-making: therefore

everything is agreed by the majority. The communication is extensive in both directions (from subordinates

to leaders and vice-versa). This style can be particularly useful when complex decisions need to be made

that require a range of specialist skills: for example, when a new computerized system needs to be put in

place and the upper management of the business is computer-illiterate. From the overall business's point of

view, job satisfaction and quality of work will improve. However, the decision-making process is severely

slowed down, and the need of a consensus may avoid taking the 'best' decision for the business.

4.2.3 Mixed

The approach is a combination of both authoritative and participative style. Input from employees is taken

and respected, final decision is taken by the senior management keeping in view the views given by the

employees.

4.3 Decision Making Approach

Structured

Procedures are predefined for solving routine repetitive problems

Non-structured

When problems require individual judgment, evaluation and insight varying on case-to-case basis

4.4 Sources of information in Organizations

There can be sources of information both internal and external to the organization. Following is a list of

important sources.

Internal

External

· Loan applications

· Staff meetings

Purchasing agreements

Formal reporting systems

Project proposals

Research results

Distribution Contracts

Employee Surveys

Persuasive interviews

Table 4.1

4.5 Direction of Information Flow

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Ideal Information Network in an Organization

Periodically updated / continuously updated the information should be updated so that whenever

accessed, the user should be fully informed.

Efficient Processing data should not be kept unprocessed for long. Timely processing helps in

effective decision making.

Value driven the information kept in a computerised system should add value to the user's

knowledge.

Audience Centred every one should receive that part of information that is relevant to the user.

Conclusion

Availability of timely and accurate information helps in proper decision making and meeting the

organizational goals.

Information should be tailored in accordance with the organization's culture and structure.

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