2.2-organizational structure and communication-higher level
TRANSCRIPT
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2.2. Organizational Structure &
Communication
Higher Level (HL) Content:
P103-109
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Centralization & Decentralization
What is centralization?
Centralization means concentrating decision
making in a particular location or group. If the decisions in a school are predominately
made by one group or location then decision
making could reasonably be described ashighly centralized.
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Centralization & Decentralization
What is decentralization?
Decentralization is when decision making islargely dispersed to outlying parts of theorganization.
If a school allows different parts of theorganization to make substantial decisions
about things like uniform, activities, subjectsand how they are taught, then decisionmaking is highly decentralized.
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Decentralized Economic Systems
Many economies have moved away fromcentralized command and control todecentralized systems.
These systems have the advantage that decisionmaking is closer to the people making andunderstanding the decision.
However, such a system is likely to result ingreater variation in the decisions made and theprocess of decision making may be slowerbecause more people are usually consulted..BUT.. decentralized decision making will ofteninvolve fewer layers of hierarchy and fast decision
making.
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Matrix Structures or Project Teams
In many firms employees may work for two bosses.
They may have Supervisor or Manager for the sectionthey work in and another person they report to forspecial projects.
Such systems reflects a matrix structure.
Amatrix structure refers to situation where individualswork across teams and projects.
It is possible that such a system can lead to a clash, eg:
where a person is expected to be in two places at thesame time.
In this situation , it may be that senior managementwill need to intervene to decide where and when thepriorities should be.
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Mintzberg: DOSPAN
Professor Henry Mintzberg is a well known
academic writer on human resources.
Mintzberg describes six frameworks, parts andcoordinating mechanisms for organizations.
The six organizational frameworks or
coordinating mechanisms in an organization
are DOSPAN.
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Mintzberg: DOSPAN
The six organizational frameworks are:
Direct Supervision
Output Standardization Skills Standardization
Process Standardization
Adjustment
Norms Standardization
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Mintzberg: DOSPAN
Direct Supervision
A boss tells a subordinate what to do
This is common in small businesses
where there is little distance
between managers and workers.
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Mintzberg: DOSPAN
Output Standardization
Standards are set for results This is common in
organizations that produce awide range of outputs and
where uniformity is important.
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Mintzberg: DOSPAN
Skills Standardization
Standards are set for the
qualifications that employees must
have
This is common in professionalorganizations such as those
employing lawyers and doctors.
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Mintzberg: DOSPAN
Process Standardization
Standards are set for the way the
work is done.
This is common in organizations
with tight control of quality, such
as producers of medicines.
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Mintzberg: DOSPAN
Adjustment
Employees adapt and adjust to
achieve organizational goals.
This is common in
entrepreneurial organizationswhere the environment is rapidly
changing.
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Mintzberg: DOSPAN
Norms Standardization
Team norms are the standard by which
someone is assessed, so an employee must fitinto in to established customs, traditions,
habits and practices if that person is to suceed
in the organization.
This is common in religious or missionary
organizations.
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Mintzberg:MOSTIS
The six parts of an organization are: MOSTIS
Middle Management
Operating Core
StrategicManagement
Technostructure.
Ideology
Support Staff
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Mintzberg:MOSTIS
MiddleManagement
Acts as buffer between senior and
junior management and ensures thatpolicies are put into effect
Operating Core
Produces the goods and services ofthe organization
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Mintzberg:MOSTIS
StrategicManagement
Sets the strategic direction of theorganization
Technostructure
Which provides the systems such as ITand training, for organizational
effectiveness
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Mintzberg:MOSTIS
Ideology
This includes the value of the organization and
the way things get done.Support Staff
Which offer back-up services such as catering
and maintenance.
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TOM PETERS
Tom Peters is a prolific writer on organizations.
His most famous book (written with Robert
Waterman in 1982) cites successful
organizations and suggested reasons for their
successes.
Peters and Waterman suggested eight
features of organizations that achieved
excellence.
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8 Features of Organizations that Achieve
Excellence: Peters & Waterman
Get Things Done
Understand your customer needs
Be independent and innovative
Achieve productivity through people
Be hands on-get involved in the organization
Only do what you do best.
Have a simple structure and lean staff. Directly control core activities, but delegate or
outsource peripheral ones.
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The Seven `S` Framework for analysing the set
up of an organization
The Hard Ss
Strategy:
In broad terms, how aims are to be achieved over thelong term
Structure
The management structure needed to achieve those
aimsSystems
The operational systems, such as appraisal reportingand IT
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The Seven `S` Framework for analysing the set
up of an organization
The Soft Ss
Staff
Attracting, retaining and developing people
Style
The ways things get done
Shared
Values (the beliefs of the organization), subordinate goals.
Skills
Ensuring that staff are suitably qualified to achieve a givetask.
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Outsourcing, Offshoring and
Migration of HR Functions
When an organization gets a sub-contractor to
undertake part of its production process, it is
outsourcing.
Examples are when Nike get another company
to manufacturer its products or Coca-Cola
appoints a marketing agency to markets its
range.
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Outsourcing, Offshoring and Migration of
HR Functions
Outsourcing enables an organization to cut
costs and focus on what it believes it does
best.
Toyota has been described as a car assembler
rather than a manufacturer because so many
of the components in its cars are made by
sub-contractors.
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Outsourcing, Offshoring and Migration of HR
Functions
What is offshoring?
The relocation of an organizations activities
from one country to another is calledoffshoring.
Many organizations have relocated their
activities to India and China to take advantage
of much lower production costs.
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What are the HR functions in an
organization?
Payroll
Ensuring that employees receive the pay due to
them.
Work Time
Recording hours worked and holiday entitlement
Benefits Administration
Such as travel and accommodation expenses
incurred while working away from home.
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What are the HR functions in an
organization?
The HR Management Information System
Recording qualifications, training, appraisal experience, and
disciplinary records
Recruiting Anticipating employee shortfalls and recruiting staff in
preparation for this.
Dismissal and Redundancy
Ensuring that appropriate procedures are followed.
Public Relations (PR)
Managing internal and external communication to project and
maintain a positive image.
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Outsourcing HR Functions
Many organizations have outsourced all or partsof the HR function and hardly any have reversedtheir decisions once they have seen the benefitsof outsourcing.
The main benefits are cost savings and serviceimprovements.
An external HR service provider can focusexclusively on those functions and be fully
conversant with legal requirements and labourdevelopments.
It also allows the outsourcing organization tofocus on what it does best.
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COMMUNICATION NETWORKS
The term communication network refers to the route(s)through which messages travel within an organization.
The Chain Network
In a hierarchical organization it is likely that informationwill pass up and down the various levels
This can be time consuming and slow down decisionmaking and organizational effectiveness.
It is also more likely that the message could bedistorted as it moves through the various levels.
However, this system can ensure that all levels areinformed and thus reduce the likelihood of errors.
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COMMUNICATION NETWORKS
The Wheel Network
The wheel network refers to the system wherebyinformation passes through an individual at the centreor (hub) to various individuals surrounding him.
The advantage is that information can be controlled bythe individual and distributed quickly.
The main problems are that he may becomeoverloaded with information and organizational
effectiveness may rely too heavily on this individual. A newspaper will often operate using a wheel (or
wheels) so that one editor can control the informationthat goes out from his section.
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COMMUNICATION NETWORKS
The Web Network
The web network exists when anyone cancommunicate with anyone else in the
organization to achieve their goals.
Communication can thus be vertical, diagonaland horizontal.
Although rather chaotic this kind of networkcan be useful to gain a variety of ideas andthus help deal with complex issues.
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COMMUNICATION NETWORKS
When assessing the effectiveness of a networkit is important to consider its likely impact onspeed, confidentiality, accuracy and
inclusiveness. Eg: The Chain network is likely to slow down
communication and exclude those outside thechain, but it will be easier to keep thecommunication confidential and ensure theaccuracy of the information communicated.