MID-TERM EXAMINATION

Program Name PGP Academic Year/ Term 2021-2023, Term - VI

Course Code EOH122601 Course Name DHPO
Total Marks 15 Time 1 hour

Instructions:
Open Book Yes Open Laptop Ye Internet Access ye Calculato ye
s s r s

Other Information:
A. Attempt all questions. Duration: one hours
B. If you miss any information in the case, you are allowed to outline the necessary conditions yourself.
C. This is only a theoretical task.

Name: Aatish Jagtap

Reg. Id: 2021PGP090

Q1 Recognize the factors (structures) in figure 2.7 and 12.3 “The organizational Life cycle” [Marks
. and relate these two theories to each other 8]

Ans 1.

In the field of organizational theory, structural organization refers to the formal system of
authority, communication, and roles within an organization. This system is designed to
facilitate the achievement of organizational goals and to ensure that work is carried out in

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an efficient and effective manner. The factors or structures that make up the structural
organization include:

• Hierarchy: The arrangement of positions and roles within the organization from
top to bottom. It establishes who has the authority to make decisions, who reports to
whom, and who is responsible for different aspects of the organization's operations.

• Departmentalization: The division of work into different functional areas or

departments. This is often based on the type of work being performed, such as
marketing, finance, or operations.

• Centralization: The degree to which decision-making is concentrated at the top

of the organization. In a highly centralized organization, decisions are made by a small
group of top executives. In a decentralized organization, decision-making is distributed
among different levels of the organization.

• Formalization: The extent to which policies, procedures, and rules are

standardized and written down. This helps to ensure consistency in the way work is
carried out and reduces the need for interpretation or negotiation.

On the other hand, the organizational life cycle theory describes the stages that
organizations go through as they grow and develop over time.
The four stages of the organizational life cycle are:

• Entrepreneurial stage: This is the stage where the organization is just starting
out and is focused on creating and developing its products or services. This stage is
characterized by a high degree of uncertainty, risk-taking, and experimentation.

• Growth/ Collectivity stage: In this stage, the organization experiences rapid

growth and expansion as it gains more customers and expands its operations. There is a
clear provision of direction, and it is characterized by a focus on scaling up operations,
increasing efficiency, and building a strong organizational culture. The organization may
also begin to diversify its products or services to capture new markets.

• Maturity stage / Formalization stage: At this stage, the organization has

reached a stable level of growth and operates smoothly. The focus in this stage is on
maintaining profitability, addition of internal systems, improving efficiency, and
responding to changes in the market.

• Elaboration stage: In this final stage, the organization experiences a decline in

its growth and may struggle to remain profitable. This can be due to a variety of factors,
such as changes in the market, increased competition, or the failure to innovate. The
organization may begin to streamline, restructure or revitalization and development of
teamwork for staying afloat in business.

There is a relationship between structural organization and organizational life cycle

theories. As organizations go through the different stages of the life cycle, they may need

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 to adapt their structural organization to accommodate the changing needs of the
organization. For example, in the entrepreneurial stage, a company may have a flat
organizational structure with minimal formalization to allow for flexibility and innovation.
However, as the organization grows and becomes more complex, it may need to
introduce more formalized structures to maintain control and efficiency.

In the growth stage, the organization may need to introduce more departmentalization to
manage the increased complexity of its operations. It may also need to centralize
decision-making to maintain consistency and alignment with the organization's goals. In
the maturity stage, the organization may need to streamline its structures to reduce costs
and improve efficiency.

In summary, the factors or structures in structural organization theory are important for
organizing an organization's formal system, while the organizational life cycle theory
describes the stages of growth and development that organizations go through over time.
The two theories are related because the structural organization of an organization may
need to adapt as it goes through the different stages of the organizational life cycle
Q2 Take one organic structure and another bureaucratic structure from figure 2.7 and apply [ Marks
. them to figure 1.6 on page 31. 7]

Ans 2.

Bureaucratic structure:

Functional grouping –
In this grouping, various departments are functioning based on their
expertise and domain knowledge.
Functional teams or departments are responsible for their role and reports to higher-level
manager who oversees the organization, CEO in this case according to the diagram.

This Bureaucratic structure resembles the Mechanistic Design.

Centralized Structure:
The CEO is at the helm and controls the decision the organization takes as a
collective.

Specialized Task:
Each department/function performs tasks that falls under their domain of expertise.
Finance team would not design marketing campaigns which would be done by marketing team.

Vertical Communication:
The flow of decisions and communication is done vertically. The CEO
communicates with Team leads and functional heads of each department and they further
communicate with their teams.

Strict Hierarchy and Authority:

The functional heads have control over their own departments and can’t make
or interfere in decisions outside their authority.

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Formalized Rules:
Rules are designed following the domain of each department and work that it
undertakes. Manufacturing units safety rules maybe different than those of finance team which
may emphasize on preventing fraudulent behaviours

Organic Structure<<End of the Document>>