Organizational behavior deals with the employment behavior of individuals and groups within the organization. Accepted that the subject of organizational behavior is the employment behavior of the individual and the group with a view to their realization and effective management.
1 Organizational culture and structure
To be effective, an organization there should have an order. This work can be divided among the members of this organization. The purpose of any structure is to help in the efforts of the staff and to support the implementation of the assignment. Any manager needs to understand the importance and effects of organizational structures. The purpose of the structure is to coordinate the activities of the members of the organization so that they quickly achieve their purposes.
The organizational structure is a set of separate elements that are hierarchically arranged and interact with each other for the realization of the objective. This structure is built on the basis of the management bodies of various levels, and the relations between rulers and ruled. The structure is very important for any organization no matter how big she is. With the increase in size of course is necessary carefully selected official organizational structure. Should also be regularly reviewed this structure to ensure that it is best for the organization and its development.
An organizational structure is an institution with strategies, policies, commonly shared values and a specific set of activities working together toward a single objective. Businesses adopt various organizational models that best match their programs. There are several types of organizational structures: Tall organisation structure, Flat organisation structure, The bureaucratic structure, Independence structure, The Matrix structure, The Power culture.
Flat structure encourages its employees and paying attention to their creative talent. In this type of structure in the organization problems are solved by each other cooperation between employees. Not monitored and not respected the chain of command. There are fewer levels of management with each level responsible for a wide area. Example of a Flat structure
In the flat structure is very little involvement of managers or it is very small. The purpose is well trained workers to be more ambitious and productive in the decision process.
The main advantage of a flat organizational structure is to improve the coordination and timely distribution of information between the different units. Senior management is closer to the middle management, which makes it easier to communicate with a lower level of control. The disadvantages are that employees at lower levels will feel less necessary. There will be many people at the same level as them and will have a big chance to shine because of all employees who are at the same level.
The tall structure specifies the relationships between the senior management and middle levels of the organizational structure. Senior management sets specific tasks necessary to achieve the objectives. For these tasks are committed competent staff with appropriate qualifications. Example of Tall Organisational Structure
Advantages and Disadvantages of a Tall Organization Structure: Advantages: The greatest possible amount of management decisions; Objectivity and impartiality of the assessment; Fast transfer new issues; Flexible management structure Disadvantages: Relatively expensive structure. Experts are not tied to the performance of management decisions. Between the outsides experts and internal specialists occurs rivalry. Foreign experts do not know all the details of the organization. Matrix structure
In this structure, collaborators are united in permanent functional groups and teams. Organizations use matrix structure when required sophisticated professional skills and high qualifications when searching ability for successful adaptation and flexibility to changing external conditions. Source:https://www.google.co.uk
Advantages and Disadvantages of a Matrix Organization Structure: Advantages:
Can help to improve communication across the organization.
Can allow people to use specific skills in different contexts. Reducing costs and improving coordination.
Likely to lead to greater motivation in team members.
Encourage mutual enrichment of ideas between different departments – such as helping to share best ideas and practices. One good way to share resources between different departments.
It is difficult to coordinate.
It’s taken time for members of the matrix team to adjust to the work. Organisational culture
Organizational culture is a relationship between beliefs, rules, actions, institutions and communication patterns of a particular group of people. By Charles Handy has four main types of culture: Power culture, Role culture, Tack culture, Person culture.
The power culture
This type of culture is based on strong leadership exercised by the person of formal power. Management is performed by one person or a small group and extends over all activities of the organization. The mechanism of operation of this type of culture is done by default on the part of those who are subordinate to the expectations, desires, decisions and intentions of those who lead them. Professional skills are not a criterion in the evaluation of staff. For those who want to develop and move in the hierarchy, it is necessary to build a network of contacts with people who can influence.
Example of Power Culture
Advantages and Disadvantages of Power culture:
People give preference to the wishes of the boss even if it interferes with the performance of important work. People are afraid to bring bad news to the chief.
People do not question the leaders even when they are seen to be wrong People with power special privileges and break the rules.
Can move quickly to the market and make fast inner changes.
Leverages the knowledge, wisdom and talent of the leader.
Can provide the direction and certainty, reduce conflict and confusion at a time of emergency. The Bureaucratic structure
In this type of culture all relationships are built on a formal basis. It is not accepted to go beyond the role performed. It does not allow the expression of creativity and initiative. Characterized mainly by increased
attention to the functions, the division of labor, specialization, rules and procedures. Example of Role Culture
Task culture is inherent in teams that perform specific projects and tasks. People involved in the teams willingly proceed to solve the problems and tasks. Each member of the group is subject to group decisions even when they do not coincide with his opinion. This type of culture is characterized by mobility, behaves extremely professionalism, qualifications, experience, mutual respect, facilitated communication. Organizations with this type of organizational culture accept change as a challenge, staff work to implement them.
Example of Tack Culture
The Person culture
This culture is constructed to meet the needs of the individual. It is applicable to small organizations whose members have high potential. In large organizations, it can only exist within individual groups. In this culture, the missing relationship of employer and employee and management is done informally through personal authority and maintain friendly relations. This organizational culture helps individuals to feel satisfied that they belong to an organization which reflects their values, desires and behavior.
Example of Person Culture
Similarities and differences between the different organizational structures and cultures Organisational structures ( differences)
Tall organisational structure is suitable for large organizations; Tall
structure adheres to chain of command. Flat structure is suitable for small to medium sized organization; Flat structure believes in empowerment of employees. Organisational structures (Similarities)
Both the systems follow hierarchy however the number of levels of hierarchies can be different. Organisational culture (differences)
Power culture- it implies little bureaucracy ; Utilises the experience and skills of top management. Role culture- it implies a higher level of the hierarchy ; Bureaucracy ; little room for experts Organisational culture (Similarities)
Both the systems are systematic. Both the cultures reduce confusions and conflicts. Tack culture/ Person culture (differences)
Tack culture- tasks are accomplished by working in teams
Person culture- goals are attained on the basis of individual Tack culture/ Person culture (Similarities)
In both the systems the power lies in each group of individuals and teams. Power culture/Person culture (differences)
Power culture- this culture concentrates power among few
Person culture- power lies in each group of individuals
Power culture/Person culture ( similarities)
Both the cultures implies few rules and little bureaucracy
1.2 Organisational culture and structure-relationships
Structure is a framework for culture to be applied until the culture dictates how the company should be structured. So, no matter how big a company if its culture starting to fall apart, it’s only a matter of time until the structure collapse. Most companies use a hierarchical structure that resembles a pyramid. Director or president sits on top of the pyramid. His direct reports, usually vice-presidents under him. Their direct subordinates under them. Pyramid extends out and down depending on the number of levels of management. A company must operate in accordance with its objectives. People work efficiently thanks to the organizational structure. The more Efficient structure, more effective working relationships between people and departments.
The structure is based on how power and accountability work in the organization. This defines the allocation of responsibilities and allows for effective involvement. The selection of the structure depends on a number of factors, including the organizational culture. Culture sets the limits of an organization. Thus culture distinguishes this organization from all others. Culture creates a sense of identity with the organization. Also creates a sense of attachment to the organization. Culture increases the stability of the social system. Organizational culture is something that relies organization and provide standards of behavior for business.
1.3 Individual behaviour at work – influencing factors
People have different abilities, personalities, educational backgrounds and attitudes. That is why they see work in different ways. These differences can be a source of creative ideas or cause disappointment and resentment. Management must be able to meet the needs of each individual. Thus achieving satisfaction, when it reaches the objectives. People highlight individual differences when looking for a job that gives various advantages in different individuals.
Personality- Personality is an internal structure in which the organization and behavior are related in a particular way that makes an individual unique. Individuality is the result of inherited traits and experience. Personality influence even to a small extent of consumption. For example, the type of jewelry, clothes, cars reflects his personal characteristics. Perception- People perceive the same object differently. There are three processes – selective attention, selective distortion and selective memorizing. Learning is a learned behavior due to experience and memory. In other words, the user chooses what information to pay attention, organize it, and interpret it in a way that is advantageous. The most important characteristic is the subjectivity of perception.
This means that user-created image based on perceived and processed information about the objective world, in many cases differs from the original model. This distortion of information is partly subconsciously, partly conscious. Ability and Skills- People differ in their abilities and knowledge in their competence and efficiency in performing the tasks. For example, if a person wants to buy something will rely on their knowledge, experience and qualifications, and another will rely on information obtained from external sources. Different customers use different information in deciding to purchase. Knowledgeable buyers use information about quality and other characteristics of the product and those unfamiliar – use price as an indicator.
Overall opportunities and sills influence in all areas of human existence. Attitudes- attitudes are predisposition of an individual to react to the influence of the object, which may be beneficial or negative. They are feelings, evaluations and answers. They are formed by information obtained directly from previous experiences with an object or indirectly under the influence of others.
Can be supported and contain three components: cognitive (knowledge), emotional and tendency of behavior (goal, desire). Sources for the development of attitudes are: Personal Experience – formed when meeting objects and are influenced by the needs, selective perception and personality; Groups – include family, reference groups, Others – include friends leaders. Attitudes perform four functions: adaptation, protection of the individual, expression of the values and knowledge building. Hereditary and Diversity Factors- Many things influence the development of human behavior, especially heredity. People are shaped by life experiences and how they respond to life’s experiences.
2.1 Leadership styles- effectiveness
Autocratic Leadership is characterized in that the individual who has taken focuses all power and basic management functions into their own hands. This type of leader takes his own decisions and does not allow discussion and questioning them in the group. It allocates strictly roles between members. Detailed control the activities and behavior of the group members. In many cases, autocratic style is irreplaceable and even the only possible one. Democratic Leadership is collective, collegial style in which the leader managed jointly with the members of the group. Authority is converted into common property.
This type of style allows and encourages discussion of the decisions of the group and stimulate the participation of others in the process. It assures enough freedom of action and initiative of members of the group. Roles are occupied according to the preferences of the group members, and this is beneficial to their activity. The advantages of the democratic style are unquestionable. It provides a social-psychological comfort for the individual members. Laissez-faire Leadership- in this style the power of the head above the rest is minimal. In this group no one has no authority over anyone. General decisions are difficult because of their acceptance must have an absolute majority. In this situation, individuals have considerable freedom itself specifies requirements and criteria for the task. Laissez- faire is most closely associated with the character of the group.
This type of leadership protects creative individualistic personality. Paternalistic Leadership- This is a management style that is normally used by dominant men who use their organizational power to control and protect the subordinate employees who are expected to be loyal. This style is suitable for a formal business structure, which does not require creative thinking by employees. Kurt Lewin, along with its associates presented the results of the experimental atmosphere created in children’s clubs for the production of various toys. These clubs simulate three types of leadership – autocratic, democratic and laisser-faire. In purposefully create a different atmosphere leadership examine the degree of subjection and place deciding to take account of their impact on the performance of the groups.
At the head of every kids’ club stood adult supervisor. Different clubs experiment three different styles: autocratic, democratic and laissez-faire. High Scores – productivity achieved groups autocratic leaders, ie leaders who make decisions and give orders alone are responsible for this, perform a one-way communication, suppress individual initiative. A prerequisite for decisions are the goals pursued by the leader, not the goals they set subordinates.
The experiment shows that in case of absence of an autocratic leader, the working group members fail to act and do not know how to proceed further. Poor performance (low productivity) had groups led by leaders with democratic style, ie those who allow their subordinates to take part in decision making, delegate some of their rights, but retain the responsibility. Leaders with the democratic style were carrying two-way communication, group members were committed to the goals and decisions. As with the autocratic leader, in the absence of the leader of a democratic style the group members did not know what to do further. Labor productivity is low and laissez-faire leaders, those who reject responsibility and provide all of its power to the group. In groups with laissez-faire leadership stands out as a characteristic horizontal communication.
Experiments have shown that in the absence of the leader the group also idle. In Kurt Lewin study found that the amount of work is the highest in the autocratic leadership. In it, however there is a low level of motivation, less originality of tasks less outgoing in groups, lack of group thing, much aggressiveness in terms of the group leader, as well as other members of the group , dutiful behavior. As opposed to autocratic style, which contributes to higher productivity, job satisfaction is highest in groups with democratic leadership style. Satisfaction was lower in the groups with autocratic and laissez-faire leadership style.
2.2 Organisational theory
There are several classifications of organizational theories. Some of them are those that accentuate on the mechanical efficiency of the organization. Such is the classical theory of F.W. Taylor
The basis of this theory is the concept of a worker as lazy, indifferent to the his work, trying hard to moisture in it as much as possible less effort. With middling intelligence and capabilities, it is unable to improve his work and his organization. His egocentrism makes him indifferent to the goals of the organization. His foreign initiative and innovation meet negative changes in production. From that Taylor made the following conclusions: Is needed a new principle to be forced employee to do their job; The worker is not able to lead change because these deficiencies and indifference. This might make a smart, proactive and focused on achieving the objectives of organization leader.
He must examine the activities of prosperous workers and regulates in detail every step of the lazy employee by imposing such a scheme to work, which will ensure maximum production results; This forcibly imposes mandatory schemes of work of employees by management. In this case the manager will think, the worker will perform. Generally the organization following changes: Procedures are systematic selection and training of workers; Are being developed accurate schemes regulating the manner of performing the activity; Been introduced regulations under which for the performance of any manufacturing operation is required a fixed time; Taylor relies heavily on monetary incentives as considered workers as lazy and motivated primarily by money.
The goal is employment behavior to become stable and predictable to be a more effective job. The aim is the worker with the lowest cost of physical and mental energy to do efficiently an operation or set of operations. This approach leads to the whittling away of workers, to the monotony of work, ignored the participation of employees in employment. The organization is a closed, rational system.
Theory of Henri Fayol
Henri Fayol is considered the founder of the classical school of management. It looks at workers as a factor that must be well controlled by the management. This school formulates basic management functions: finance, manufacturing and marketing. According Fayol has 14 universal principles for the effective management of the organization. Many of these principles relate to organizations today: Division of labor, which is associated with the specialization of workers; Authority and responsibility, where power is exercised, there should be a responsibility of the other party.
Discipline, in the organization must exist precisely defined rules and objectives , if they do not comply be sanctioned by penalties. The unity of the leadership, every employee should receive orders from only one boss. Unity of direction, each group performs one single goal, perform one plan and have a one manager. Individual interests must be subordinated to the interests of the organization as a whole. Employees must receive fair wages.
Everyone should know his place in the organization.
Justice is a combination of careful and honest attitude.
Stability and security in the workplace for each member of staff. There should be no staff turnover because it deteriorates efficiency. Of subordinated should be allowed initiative associated with implementation of the tasks. This gives the organization strength and energy. Each organization must be a unified and coherent, working in harmony, to be a supportive atmosphere.
Theory of Abraham Maslow
Abraham Maslow assumes that there is a system of hierarchy of needs, which is unchanging. Needs are five main groups. A schematic can be represented as a pyramid divided into five main levels. The basis and stay physiological needs. The following are security needs. Over they are the social-striving to belong to the group. Follower needs respect. On top of the pyramid are the needs of self-realization.
The main idea of Maslow’s need to activate from the bottom. It begins with physiological needs. Until they are not satisfied they motivate the individual to take action to satisfy them. Then their intensity decreases and they cease to be a motivator. The foreground comes out the need for security. After satisfying them passes to the next higher level and so on until it comes to the highest needs – from self-realization. People prefer and like different things and different values. For this reason, if a manager wants to effectively motivate their subordinates, he must have information about their individual needs.
Theory of Frederick Herzberg
Frederick Herzberg distinguishes between two types of motivation factors of the work: motivational factors and factors for maintenance or hygiene factors. Hygiene factors for example a good salary, high status and good interpersonal relationships. The theory has determined that these factors do not lead to a greater level of motivation, but without them occurs frustration. Rather motivators were elements that enrich people’s work. Herzberg found five factors in particular strongly determine job satisfaction: achievements, recognition, the work itself, responsibility and advancement. These motivators are associated with long-term positive results in the performance of the work, while hygiene factors might produce only short-term changes in attitudes towards work and productivity.