VARIABLES IN STRUCTURE

Session 3&4

Need for structures

Structures are created to predetermine, regulate, and control behaviour

Bar & Grill Restaurant Bob & Amanda 3 people

3 people 22People 29 people 52 people 150 people

DIFFERENTIATION

the degree of differences that exist in various activities of the organisation.

Mr Bonamali
Tools Singh Bolts & nuts Chaterji Hurricane lanterns Menon Finance

Mr B

Sales

Book Keeper

Book Keeper

Book Keeper

Engg

Engg

Engg

Mr B
Bankim

Tools Singh

Bolts & nuts Chaterji

Hurricane lanterns Menon

Finance

Sales

Book Keeper

Book Keeper

Book Keeper

Engg

Engg

Engg

Building Blocks
Organization
Division
Function Role

CONTROL MECHANISMS

Authority
ability

of an individual to seek compliance to the legitimate instructions of the superior adopt and enforce organizationally expected behaviour from employees

Rules, Procedures and Policies

Types of Differentiation

Horizontal differentiation
- two jobs being different while horizontal level remains the

same

vertical differentiation
-two jobs being different from each other because they

happen to be at two different hierarchical levels in the organization.

Job descriptions

Job descriptions are means to differentiate one activity from another in an organisation Different job descriptions require employees with different training, background, educational qualifications and other experience Job descriptions are not fixed points A complete job description is not always possible to provide

This is a story about 4 people. Everybody, Somebody, Nobody And Anybody. There was an important job to be done and Everybody was asked to do it. Everybody was sure that some body would do it. Anybody could have done but nobody did it. Somebody got angry about that because it was Everybodys job. Everybody thought anybody could do it but Nobody realized that Everybody would not do it It ended up that Everybody blamed Somebody when actually nobody asked Anybody

Drawbacks

Managing the Differentiation

Draw the Chart Analyse each role Analyse relationships between departments

Integration

Process of coordinating various tasks, functions and divisions do that they work together

Integrating Mechanisms

Liason MBWA Task force or teams

DECISION PROCESS

A decision is a choice between/amongst the alternatives. Centralisation Decentralisation

Centralisation

Centralisation as a method of taking decisions refers to the extent to which decision-making authority is concentrated at a single point in the organisation

Decentralisation

It implies a low concentration of decisionmaking at the higher levels. When decision processes are pushed down to the lower levels where the decision makers are closest to action, we opt for a decentralised system of decision-making.

Delegation

For an activity to be performed in a formal structure requires three components. allocation of responsibility, which defines the nature of job to be performed. allocation of authority, which provides for claiming the necessary support, infrastructural help, and facilities for performing the allocated responsibilities. accountability, which is the test of the outcome expected when responsibility is allocated.

Delegation is defined as the assignment of duties, responsibilities and authority to others.

Conditions for Effective Delegation

A supervisor's perception of a subordinate's trustworthiness Similarly, a supervisor's perception of the subordinate's competencies and relevant knowledge The Personality of the supervisor The size of the organisation

Advantages

It frees supervisors to perform broader and more strategic responsibilities It provides subordinates with opportunities to develop new skills and competencies to perform the delegated tasks. It enriches the subordinate's job It helps groom subordinates for possible promotion. . It is an attempt to empower subordinates. It liberates rather than reduces the range of thought and action amongst employees.

Standardization & Mutual Adjustment

FORMALISATION

the extent to which rules, policies, procedures, standardise the behaviour of the employees in the organisation

Socialization

Understood Norms. Norms are standards or style of behaviour that are considered acceptable or typical for a group of people

Rule: Office begins to function at 9.00 am. ' Procedure: Follow steps ABC then check with supervisor. Policy: Provide equal opportunity in employment. Norm: Male employees are expected to shave before coming to work. Tradition: The older employees are promoted first.

Rules are more restrictive and prescribe or prohibit action. Procedures are less restrictive. They specify a series of steps to be taken in the performance of a job. Policies are least restrictive and subject to more frequent changes. all positions in the organization are subject to rules, procedures and policies.

Disadvantages

They are constrained by time and space. They apply during the office hours and are not enforceable beyond and before the office hours. Excessive use of rules, procedures and policies limits risk taking, flexibility and innovation. Organizations may fail to cash on opportunities available to them. Number of employees may feel more comfortable by going by the book as their own initiative may neither be appreciated nor rewarded.