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The Organization: Lecture # 3

This document discusses organizational structures and change. It defines an organization as a group of people and resources gathered together to achieve a common goal. Organizations have defined relationships and hierarchies. They can take various structures like hierarchical, flattened, matrix, or informal structures. The document discusses different types of hierarchies and how matrix and informal organizations are structured. It also addresses global organizational structures, drivers for organizational change, barriers to change, and how to manage change.

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Furqan Waris
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25 views

The Organization: Lecture # 3

This document discusses organizational structures and change. It defines an organization as a group of people and resources gathered together to achieve a common goal. Organizations have defined relationships and hierarchies. They can take various structures like hierarchical, flattened, matrix, or informal structures. The document discusses different types of hierarchies and how matrix and informal organizations are structured. It also addresses global organizational structures, drivers for organizational change, barriers to change, and how to manage change.

Uploaded by

Furqan Waris
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Engr.

Syed Waqas Haider Shah

LECTURE # 3

THE ORGANIZATION

10/9/2016

LECTURE 3

DEFINING THE ORGANIZATION


2

An organization is considered to be a group of


people with defined relationships to each other
By an organization, one may also be referring to a
collection of human and material resources, which
are gathered together for stated aim, for example,
a factory
An organization may also be refer to a structure
defining the division of work and hierarchical action
between individual, group and resources
(Dunderadle, 1994)
Engr. Syed Waqas Haider Shah

10/9/2016

DEFINING THE ORGANIZATION


3

An organization is a system that contains one or


more of following elements
A collection of people in formal and informal
groupings
Individuals who have defined tasks and
responsibilities, some of which may consist of
specialization
The manner in which these tasks interact and relate
to each other is defined
The tasks all lead to achievement of a common aim

Engr. Syed Waqas Haider Shah

10/9/2016

ORGANIZATIONAL STRUCTURES
4

Hierarchical structure

Engr. Syed Waqas Haider Shah

10/9/2016

ORGANIZATIONAL STRUCTURES
5

Flattened structure

Engr. Syed Waqas Haider Shah

10/9/2016

ORGANIZATIONAL DYNAMICS
6

Organizations are dynamic feedback systems that need


to be creative if they are to survive
Managements main task is in creating conditions for the
organization to learn and develop
If situation changes, staff must be able to experiment,
learning from new experiences
An organization is a complex web of feedback
structures, where one activity leads to another
according to some predetermined relationship
Most organizations tend to oscillate between two states:
integration and disintegration
Engr. Syed Waqas Haider Shah

10/9/2016

ORGANIZATION STRUCTURES
7

An organization structure is the way the organization


allocates its resources towards meeting its strategic aims
It is commonly defined by organizational charts
Organizations may broadly be either operational and
representative
Hierarchical Structures
The Matrix Organization
The Informal Organization
Global Organization
Engr. Syed Waqas Haider Shah

10/9/2016

HIERARCHICAL STRUCTURES
8

Most common structures and are for the control of


large organizations
Also known as Bureaucratic Structures
They are characterized by following
A hierarchy of authority
Specialization of tasks
A system of rules
Impersonality in the application of rules
Engr. Syed Waqas Haider Shah

10/9/2016

HIERARCHICAL STRUCTURES
9

Authority of managers can be of three types


1.Legal or organizational authority
2.Traditional authority
3.Personal authority
Advocates of hierarchical structure claim that it is an
efficient communications medium
In Modern Technological age, a command can be
sent electronically, almost instantaneously, to many
thousands of people
Engr. Syed Waqas Haider Shah

10/9/2016

HIERARCHICAL STRUCTURES
10

A concentric of hive hierarchy

Accountability
Effective communication
Distribution of responsibilities

Exists in several large multinational organizations

Engr. Syed Waqas Haider Shah

10/9/2016

HIERARCHICAL STRUCTURES
11

An overlapping hierarchy

Engr. Syed Waqas Haider Shah

10/9/2016

HIERARCHICAL STRUCTURES
12

A line and staff organization

Engr. Syed Waqas Haider Shah

10/9/2016

HIERARCHICAL STRUCTURES
13

A functional hierarchy
A project hierarchy
A geographical hierarchy

Engr. Syed Waqas Haider Shah

10/9/2016

THE MATRIX ORGANIZATION


14

The matrix organization aims to capture the best of


both the functional and project organizations
It is hierarchical structure, except that two parallel
hierarchies exist
The project manager is responsible for directing day-today work, setting priorities, meeting tight program time
scales and delivering products to the customer
The functional manager is responsible for looking after
the personal needs of individual engineer and for
ensuring that high quality standards are followed on the
project
Engr. Syed Waqas Haider Shah

10/9/2016

THE MATRIX ORGANIZATION


15

Matrix organization has several aims


To allow projects to be formulated, grow and deliver products to
the customer, including post-sales support, with minimum time and
expense
To provide staff leveling
To provide a project focus on all the work being done
To provide the focus on the customer
To provide a view across all the various functional areas in order to
determine the impact of developments or change in one area on
another
To provide a platform for faster decision making
To allow the project to concentrate on delivering the product to the
customer
Matrix management teams are often confused with task teams
Engr. Syed Waqas Haider Shah

10/9/2016

THE INFORMAL ORGANIZATION


16

Organizations which exist within a company are essentially pluralist


in structure; that is they consist of an overlap of the structures
defined earlier; functional, project, staff, matrix and so on
Informal organizations can occur at all levels and usually grow up
within a company for several reasons
The failure of official organization to provide leadership
The official organization fails to provide the employees concerned
with a feeling of self-respect in their work and a sense of
achievement
The official organization does not make the employee feel
accepted and part of the wider group
The employees do not feel that they are receiving sufficient
recognition and development in their work
The official communication channels are ineffective
Engr. Syed Waqas Haider Shah

10/9/2016

GLOBAL ORGANIZATION
17

The Pyramid Global Organizations


The Treacle Global Organizations

Engr. Syed Waqas Haider Shah

10/9/2016

ORGANIZATIONAL CHANGE
18

Engineers and technologists create change


An organization must continually change to survive;
one can move forwards or backwards, but no
company can hope to mark time and remain where
it is for very long (Chapman, 1993)
Change should therefore be seen as an
opportunity for growth and development

Engr. Syed Waqas Haider Shah

10/9/2016

THE NEED FOR ORGANIZATIONAL


CHANGE
19

Internal pressures include:


New investments in plant or products
Staff developing and being promoted
Career moves within the organization
Leavers and new joiners to the organization
External pressures include:
Changing markets
Changing customer requirements
Changing legislation and regulatory conditions
Economic considerations
Supplier changes
Competitive pressures
Technology changes
Takeovers and mergers between organizations
Engr. Syed Waqas Haider Shah

10/9/2016

BARRIERS TO CHANGE
20

Many of the barriers which a manger faces when


change is being implemented are:
The inertia within the organization
Employees feel threatened by the change
Employees may feel that they are no longer in control
of their own career paths
Their could be uncertainty about future roles
Employees may feel that they would not be able to
cope
Past experience within the organization
Engr. Syed Waqas Haider Shah

10/9/2016

MANAGING CHANGE
21

Setting the vision


2.Communicating the change
3.Project managing the change
4.Flexible policies
5.Putting people first

Engr. Syed Waqas Haider Shah

10/9/2016

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