W 11 1 Organizational Structures and Dynamics

W 11. 1 Organizational Structures and Dynamics

Some important organizational variables: • • Organizational Structure Organizational Communication Organizational Leadership Organizational Culture

• Formal structures is a fixed set of rules of infraorganization procedures and structures. • As such, it is usually set out in writing, with a language of rules that ostensibly leave little discretion for interpretation. • • • Key characteristics of the formal structures: Enduring Static Excellent at alignment Approach individuals as a ‘role’ bound together by codified rules

• Informal structures is the aggregate of norms, personal and professional connections through which work gets done and relationships are built among people who share a common organizational affiliation • It consists of a dynamic set of personal relationships, social networks, communities of common interest, and emotional sources of motivation. • • • Key characteristics of the informal organization: evolving constantly dynamic and responsive approach individuals as ‘personality’ Bound together by norm and values

Relevant theories • • Structuration Theory Social structures are the medium of human activities as well as the result of those activities • • Role theory Each social role is a set of rights, duties, expectations, norms and behaviours that a person has to face and fulfill. The model is based on the observation that people behave in a predictable way, and that an individual’s behavior is context specific, based on social position and other factors. The theatre is a metaphor often used to describe role theory. • • Organizational Role Theory ORT focuses on the manner in which individuals accept and enact an array of roles. In an organizational context, role behaviors are the recurring patterns of actions that are considered important for effective functioning in that particular role and in that particular organization.

• Institutionalization: – When an organization takes on a life of its own, apart from any of its members, becomes valued for itself, and acquires immortality

• Prescribed roles • Discretional roles

• Individual Behavior and Formality • Prescribed roles • Uncertainty Avoidance (Hofstede)

Organizational structure • Organizational structure – • Exhibit 15 -10: the way in which jobs • Determinants and Outcomes of Organizational Structures: tasks are formally divided, grouped, and coordinated. • Formal coordinating Moderated relationships: by individual differences • Simple structure and cultural • Matrix norms • Boundariless Causes: Associated • Virtual Structural Performance Strategy determines Design: Size Mechanistic Technology Organic Environment with and Satisfaction

Organizational Communication • Formal channels • Informal channels • Communication networks

Leadership • The ability to influence toward achievement of a vision or set of goals • Is leadership an art or science? • Formal leadership can have better, faster, more complex allowances over organizational resources • Informal leadership can have better allowance for organizational culture and communication

Leadership • Behavioral theories: • Initiating structure • Consideration • Transformational: • Transforming people and structures • Trait and Neo-Trait: • Charismatic • Authentic • Attribution theory of leadership • Contingency • LMX • Situational leadership theory • Path –Goal Theory • Power – Influence • Influence be dependencies • Leadership Substitutes • properties such as experience, training and organization structure and processes

Organizational Culture • Organizational Culture – A common perception held by the organization’s members; a system of shared meaning • Seven primary characteristics 1. Innovation and risk taking 2. Attention to detail 3. Outcome orientation 4. People orientation 5. Team orientation 6. Aggressiveness 7. Stability

Organizational Culture • Culture is a descriptive term: it may act as a substitute formalization • Culture’s Functions 1. Defines the boundary between one organization and others 2. Conveys a sense of identity for its members 3. Facilitates the generation of commitment to something larger than self-interest 4. Enhances the stability of the social system 5. Serves as a sense-making and control mechanism for fitting employees in the organization

Organizational Culture • • Culture as Liability Barrier to change – Occurs when culture’s values are not aligned with the values necessary for rapid change Barrier to diversity – Strong cultures put considerable pressure on employees to conform, which may lead to institutionalized bias Barrier to acquisitions and mergers – Incompatible cultures can destroy an otherwise successful merger • Keeping Culture Alive • Selection – Concerned with how well the candidates will fit into the organization – Provides information to candidates about the organization • Top Management – Senior executives help establish behavioral norms that are adopted by the organization • Socialization – The process that helps new employees adapt to the organization’s culture

Socialization options: • • • Formal versus Informal Individual versus Collective Fixed versus Variable Serial versus Random Investiture versus Divestiture

How Employees Learn Culture • Stories – Anchor the present into the past and provide explanations and legitimacy for current practices • Rituals – Repetitive sequences of activities that express and reinforce the key values of the organization • Material Symbols – Acceptable attire, office size, opulence of the office furnishings, and executive perks that convey to employees who is important in the organization • Language – Jargon and special ways of expressing one’s self to indicate membership in the organization

Organizational climate • is the process of quantifying the “culture” of an organization, it precedes the notion of organizational culture. • It is a set of properties of the work environment, perceived directly or indirectly by the employees, that is assumed to be a major force in influencing employee behavior.

Positive Organizational Culture • A culture that: – Builds on employee strengths – Rewards more than it punishes – Emphasizes individual vitality and growth • Limits of Positive Culture: – May not work for all organizations or everyone within them

Organizational Dynamics: Relevant theories • In social dynamics individual choices and interactions are typically viewed as the source of aggregate level behavior, while system dynamics posits that the structure of feedbacks and accumulations are responsible for system level dynamics • Complex adaptive systems are special cases of complex systems. They are complex in that they are dynamic networks of interactions, and their relationships are not aggregations of the individual static entities. They are adaptive; in that the individual and collective behavior mutate and self-organize corresponding to the initiating micro-event or collection of events

Core challenges: • Discontinuity • An interruption in the normal physical / logical structure or configuration

Core challenges • Desynchronization • The ways organizations leverage time, space and knowledge, however, are leading to desynchronization • Desynchronization suggests that different segments of organization and environment move at varying rates

• Contingency Theory • The organization’s structure must be matched to its environment to enhance performance. • The optimal form of an organization is contingent on the circumstances faced by that organization

• Chaos Theory • Based upon the belief in the uncertainty and unpredictability of the environment, chaos theory asserts that organizations are living, self-organizing systems that are complex and self-adaptive. • The system moves between order and chaos and is only stable temporarily.

• Sense-and-response • Instead of What organizations do? • => What organizations become?

Later Views of the Flexible Firm Charles Handy – the Shamrock Organisation Atkinson’s Flexible Firm Core and peripheral workers

• • • Adaptive Designs Matrix Virtual Networked Flexible • • Adaptive Cultures Learning Connective Flexible

The flexible firm (John Atkinson, 1984) • Core group – primary personnel in the company, provide functional flexibility • First peripheral group – numerical flexibility in order to meet fluctuations in the demand of company products • Second peripheral group – short-term, multitasking, job sharing, part time work • Subcontracted and outsourced work • Agency workers (leasing of personnel) • Self employment

The Shamrock Organization (Charles Handy, 1996) Professional core Contractual fringe Flexible workers

Types of Flexibility • • • Functional Numeric Temporal Geographic Attitudinal

Adaptive cultures • Adaptive cultures are driven by integrative approaches that allow organizations influencing the environment while being influenced by it.

Summary and implications for managers • Structure impacts both the attitudes and behaviors of the people within it • Some behaviors in relation to structures are cultural • Managers shall consider managing formal and informal structures • Flexible designs and culture of organizations are useful to cope with complex organizational dynamics in face of discontinuity and desynchornization