Chapter 2 OT.

For Complete Course & Study Material:-

Mission- Raison d'etre- Reason of existence/being of org. DETERMINATION OF ORGANISATIONAL GOALS

Goal – Every org. work to achieve something known as
organizational Goals. Top mgt. determines goals to
Who Set Goals How to set (GOAL SETTING PROCESS)
achieve mission, It depict Future state of affairs which
1.Democratic Goal Setting – 1.Traditional process–Rationality model
org. strive to achieve.  By Owner/stakeholder  Manager identify problem & provide
Definition  Bottom up process best solution to maximize value
Etzioni- “An Organisational goal is something towards  May be Rationale or not  Full info, costless, Full alternate range
which its resources & efforts are directed.” 2.Autocratic Goal Setting- & best & unanimous decision making
 By CEO or MD  Assume no uncertainity/ambiguity
 Top Down Approach  Perfect rationality & end means chain
Features/Nature Significance/utility/ Limitation
 Traditional Approach
- Depict Desired State Rationale/Function - Rigidity in work
- Conscious - Legitimacy to org.  Assume full rationality 2.Behavioural procee-Carnegie model
- Problem in set goal
3. Middle/Behavioral Goal set-  Assumption of
Determination - Reason of existnce - Distortion of work
 Executive consult  Satisfying human nature
- Determine flow - Direction to res. - End-means reversal
of resources - Std of Performance stakeholder  Bounded Rationality
Overcome by
- PG by owners - Motivation & -Optimum Goal  Top down & bottom up  Organizational Coalition
- SG by Mgt. Control -People Participation  Have negotiations  So limited info, costly, limited range of
- it legitimate activities - Coordination - Timely Review  Time Consuming alternate & only satisfactory not best &
-Std to assess Success - Basis of Per. Apr. - Clarity & MIS  Bounded rationality negotiated decision making

Impact of Envt. Interactional process/Strategies Two Goal Setting approach/Models

Good Goals
to overcome influence
 Opportunity – New Features
1. Avoiding-if not worthful
tech, talent,Mkt. 1.Specific Bounded Rationality model of Coalition Hypothesis
2. Competing- through
 Challenges- 2.Measurable Herbert Simon (Behavioral theory- in modern org as a
superior product
Competition, 3.Real Disagree with total Rationality & political process)
3. Bargaining-for win win
Demand change 4.Result optimum Decision (Traditional Goal setting is coalition of various
4. Coalition- against
 Threats – oriented Approach) because of following interest i.e. manager, Shareholder,
common enemy
revolutionary 5.Participative assumptions customer, Competitor, rather top down
5. Cooptation-shock absorb
Changes 6.Time bound 1.Satisfying Decision – as all process, having say of all.
alternative can’t be known for Feature/ element of Coalition hypothesis
Single Vs. Multiple MG org more MG Limitations taking optimum decision.  Complex process as multiple interests
1.Single – efficient as 1.conflict of priority 2.Bounded Rationality – As  Have negotiation, bargaining,Compro
2.Strain on personnel
a. Quantity Wise 1 Goal 1.Efficient use of value & preference order of all  Decision is based on “COMMON
b. Oneness–Single minded resources 3.Specialisation
negatively affected
alternatives is not known for MINNIMUM PROGRAMME” –after
Like P.G./official goal 2.keep continuity in
2.Multiple – org.
perfect end means chain. negotiation & compromise agreed by all.
a. Quantity wise Multiple 3.Build morale MG are most 3. Limited info, change  Dominant partner has greater
b. To serve Multiple interest easily preferred form resistance, conflicts etc. so all influence, other partners offered rewards
it is to achieve single goal 4.Easy to establish leads to efficiency & possible alternate &
Basis of integration & effect. 5.Diversification
as side payments
effectiveness consequence can’t be predicted  Sequential attention- preference as IMP
so bounded rationality  It is not static but dynamic process
Type of Goals

Individual vs. Organization Goals

Primary Goal Secondary Goal Official Vs. operative
Organisational Goals- As discussed. Eg.
Founding stone & ultimate destination of org. Means to achieve primary goals, are real & 1.Official –General purpose,
Productivity, Profitability, Growth.
Determined by owner/upper mgt. operational, Determined by middle & primary In charter, mission statement
Sum of individual goal & interest.
Oftenly Certain all over life of organization level manager. Eg. – sports, Discpline for school May be vague & colorful term
Eg. Educationn for school, defence for military Significance–1. Use of resources for achieve PG 2.Operative –Real, pursued & Individual Goals – personal Goal of
Without PG its waste of resources 2.leads organisation to work specific, Derived from off. goal. employees. Eg. Security, Status, money.
PG is base for goal succession & displacement Derivative Goal –SG Derived from PG Type/Multiplicity of ope. Goal Psychological Contract – By Denise
Significance – Different SG/MG in corporate – multiple 1.Environmental-Satisfy ex envt Rousseau - Between Individual & Org.
1. Give direction to efforts stakeholders like- Shareholder, worker, 2.Output & product goal Represent Mutual belief, perception,
2. Base for secondary goals consumer, Govt., Society. 3.system - internal envt. obligation & expectation beyond formal
3. Depict vision of organization So multiple SG like- Worker training, Quality 4.Derived - e.g. social service written contract. Eg. How org treat employee
4. Measurement of success products, Pollution control, Dividend payment 5.Technical Dynamism & what efforts employee out for org.
5.
 Different point of view on IG & OG incompatibility/Conflict

Classical view Human Relation Personality advocates Organization Advocate Balanced/modern/Inter

There is no conflict because
 IG & OG Complementary
 Individual Contribute &
Org. Reward
 Ind. Should subordinate
their goals
 OG shall prevail in
conflict
 OG is source of IG
View
 Incongruency between
IG & OG is Inevitable
 satisfaction of human
needs & “good human
relation” leads to to
achievement of OG
 unsatisfied IG may
alienate a person
 it is needed to establish
compatibility by mgr
Chris Argyris-formal system crushes - Incompatibility is not new but actionist/Reconciliatory
Development & self actualisation Of indv.
organization is not villain View
as individual grow from immature to
- Self actualization is not univrsl. - Incompatibility is natural
mature, that cause incompatibility due to
rigidity of org. Its Causes are-
- Even money is great motivator - IG & OG may not be fully
1.Rationality -not real human nature & satisfy individual needs. compatible
2.Specialisation cause monotony - They satisfy self esteem by - Lack Mutual adaptation is
3.Chain of command cause bossism connecting to other org. issue
4.Unity of direction- top down app. - Organization demands - Integration of IG & OG is
This incompatibility leads to short focus, reasonable performance for required
job quit, frustration, conflict etc. which it gives payments
- So that survival even
“So individual satisfaction should also be
an end in itself, rather just means.”
- So incongruency is manageable.
after incongruency.

Reciprocation / Integration among IG & OG END MEANS Chain – “Structuring GOAL into heirarcy”- Traditional view of goal setting.
where goal of lower level become means for upper level.(Goal of worker to produce goods
become means of mgt. to earn profit) This leads to a vertical net of “end-means chain”.
1.Fusion Process- (By EW Bakke) 3.Inducement-contribution As objective at top level become basis for setting objective at lower level & so on, and
Objective of lower level become means to achieve higher level goal. As shown below in picture
- called Internalisation of OG process (by March & Simon)
by personal Commitment to Inducement- Reward by Org to
OG. individual. Source of contri. Org. Goals TM Significance Criticism
Flow of goals

Flow of means
-leads to Fusion of IG & OG Contribution- Performance of - Form Org Str - Perfect End means
- Goal clarity for sub integration impossible
indiv. for org. source of induce. Div. Goal
Subsytem of IG & OG interaction Thus both IG & OG satisfied
MM unit - Personal view & bias
Make EMC Effective
- High level of
1.Socialisation-individual Barnard Simon – org. Dept Goal - Timely revision
motivation
internalize OG equilibrium LM - Purposive delegation
- Suitable leadership
2.Personalisation-Org. - Flexibility in EMC
Org. Equilibrium by org. being Worker Goal of authority - Worker participation
internalize IG able to offer inducement Worker
necessary to attract sufficient
2.Fusion Process- (By Peter F. contribution,thus based on
Drucker)-Discussed in detail reciprocal exchange Management by Objective by Peter F. Drucker

Goal Change -with passage of time & situation by periodic & continuous re evaluation. Brief- Objectives should not be imposed on subordinate but
mutually decided. Avoid activity trap. Focus main objective
Requirement of Goal Change
1.Manager Aspiration change 2. Crisis in org. 3.Change in External envt.
4.Demand from Coalition
3k?k groups 5. Change in internal envt. Principles Benefits Prerequisites
-Cascading of OG & -Clearer Goals - Inspiring mgt.
Type of Goal Change – 1. Succession 2. Distortion 3. Displacement 4. Expansion objective -Std for control - Training
-Member wise specific -Objective Appraisal - Mechanism
objective - Feedback
-Motivational
Goal Succession Goal Distortion -Participative decision - Free from politics
Goal Displacement Limitations
- Individuals do not work/ -Explicit time period - Adequate time &
- New/modified goal - Extreme form of distortion -Goal setting prob.
substitute existing misunderstand stated goals -Evaluation & feedback resources
- Resource used to serve goal -Subordinate Satis.
- May lead to goal - Do misinterpretation due to fully different from OG. -Superior support - workload & conflict
multiply/expansion ambiguity & distort goals - may unconsciously or
-Whn old is achieved, REASON deliberate. Steps in MBO
irrelevant,unattainabl - Communication blockage & - End means chain reversed Measur
-It’s Official & planned Tall hierarchy Reason- same as distortion able
Need/IMP/Situation - Internal issue & size rise Checking/Prevention Establish Goals
- Presnt goal irrelevant - Over commitment to 1 goal - Strong & clear EMC in participative
- Sub unit goal internalization manner
or unattainable - Purposeful & clear Goals Spec Goal
Real
- for org. growth - priority to Measurable - Timely Review & control Decide ific Should istic
- Deal envt. Changes aspect - balanced structure & power Method to be
- to Survive losses - Iron law of oligarchy- goal - Committed Workers attain objective SMART
Causes/ Factors twist by influential people to Form of GD- 1.Pursue Personal
Responsible perpetuate hold over org. Goal. 2. Substitute tangible goals Action Plan of
subordinate Achie Time
- Changing aspiration
Expansion- Aquisition of improved goals in quantity/Quality vable Bound
- Change in coalition
Demands Leads to enriching mission. E.g. higher profit target Appraisal of
- Envt. Change Reasons of G.E.- 1.Eco. growth of country 2.Envt change perormance
3. Mgt./ownership Change 4. Increased Aspiration of coalition
 Chapter 3 OT. For Complete Course & Study Material:-

OT – Study of Structure, Design, Function & Performance of Organisation & behaviour of groups & individuals in org.
S.P. Robbins – “ OT is the discipline that studies the structure & design of organisations. It explains how organisations
are actually designed & offer suggestions on how they can be constructed to improve organizational effectiveness.”
Classification of OT – 1.Classical 2.Neo Classical(1.Human Relation 2.Behavioural science 3.Social System) 3.Modern OT

Key Features
- View Org. as machine
-Emphasis hierarchy str.
- centralization based
-focus on Formal org.
-Worker- economic
man,money motivated
-No conflict between
individual & org.
-Main aim- Productivity
Key Pillars/Common Ele Appraisal/Criticism Key Features Modification over Appraisal
1.Structure -Narrow & Static view -org as Social Sys classical -A trifling body of
2.Div of work & coord. -Assume closed System -Informal org exist -Flatter Structure empirical info
3.Span of control -Dehumanization -Action in groups -Decentralisation -Narrow view on
4.Scalar Chain -Money main motivator -2 way Communi. -Informal Org. conflict - over
Criticism of key pillar -Impractical assumption -Money is not only -Humanistic concern happiness
Str-Disruption & conflict -Bureaucratic Behave motivator Common -less focus work
Div-boredom, monotony -Anti Democratic work. -Org indv. conflict -No conflict -Over focus group
Span-difficult to decide -Only Hierarchial Str. -emotional needs between individual -lack of scientific
Scalar- delegation issue
of employee & organisation validity

1. CLASSICAL ORGANISATION THEORY-:Also called machine Theory 2. NEO-CLASSICAL ORGANISATION THEORY-:Developed as

: Foundation of OT : Traditional View : Concentrated on Org. str. & reaction to classical theory & suppplement it.
principle of mgt. : Deal with Anatomy of Formal org. By thinkers like Mayo, Barnard, Argyris called HUMANIST
Streams – (a) Weber -Bureaucracy (b) Fayol- Adm. Mgt. (c) Taylor – Scien.mgt Compensate some defficiency of classical approach

1(a) Bureaucracy -Weber
“An administrative body
of appointed officials”
Leads institutionalization
3 Method of Power
1.Charismatic-Personal
2.Traditional- Inherited
3.Rational-Legal – by law
Legal Authority is ideal &
rational for management
1(b) Fayol- Admin. Mgt
“Universalist-Mgt princi.
apply to all group activity
-Admin & Mgt. are same.
-Mgt. ability can aquired
-Father of general mgt.
6 main activity of org
1.Technical 2.Commercial
3.Financial 4 Accounting
5.Security 6. Mgt/Admin
1(c)Scientific Mgt-Taylor
Attacked rule of thumb
Work -P1-A piece rate Sys.
-Differential piece rate
-Time & motion studies
P2 - Shop Management
-Scie. method,Std tools,pay
training, Co-operation,wc
P3 - Princ. Of Scientific Mgt.
1.Science for each element
2.Scie. selection & Training
3.Equal div of work & Res.
4.Cooperation by mentl rev.
Feature -Written record Critisism – A.Human Relation By Elton Mayo - Howthrone Studies-Elton Mayo
-Div. & Specialisation -Changing envt.-Rigidity 4 Howthrone experiments by-Social/human aspect at work place
- Rule & Regulation -Excessive rules leads to 1.Illumination Process - No -ve effect of light on productivity
-Heirarchy & legal Auth. dysfunctionality 2.Relay assembly test - +ve - rest,hot lunch,friendly atmosphere
-Impersonal Relation -Goal Displacement 3.Interviewing prog - Baseless complaint, listening subordi imp
-Technical Competence - Loss of mutual trust 4.Bank wiring observation-Own std of output,in social pressure
Benefit – Rationality -No personal motivation
-Continuity, Consistency - Ignore Informal Org. Howthrone Conclusions Appraisal -
-Efficiency & Tr. Of auth. -Red tapism & Sabotage - External factor have no effective role, - Happyness boys
-Predictable Behave -Hoarding Authrity social & human side raise productivity - Short sighted
-Upward communication is necessary - Lack universal
-Free expression give workr satisfaction application
14 Principle of gen. mgt. Flexibility-UOD wid UOC
- Positive effect of supervisor taking - unthoughtful group
1.work Div. 2.Discipline -Principles rather rules
3.Auth & Res 4.UOC personal interest in worker problem disussion
-Gang plank-Level Jump
5.UOD 6. Remuneration -Social man- Need freedom to talk -Scientific validity is
-Initiative wid centralise
7.Centralisation 8. order -Spontaneous Cooperation possible under question
-Order,Pay & equity
9.Scalar chain 10.Equity
11.Stability 12. Initiative
Critisism-only operatio- B.Behavioral science -get knowledge about human behavior by study
13.Unity 14.Gen.int. above nal classification of org. of beha. Science e.g. socio, psycho, anthro. Normative & prescriptive.
5 Management activity -Outdated & inadequate pr. Study of motivation, Leadership, Communication to solve org. Issues.
-Ignore social-psycho need
POCCC-Planning, org.,
-UOD & UOC- contradictory Essential Requirement Key Elements Contribution
Comand, Control, Coord. -Objective data -same as neo classical -Rational
-Cause Effect Relation Features -Dynamic mgt.
Mental Revolution- Appraisal -Relate fact sys. -Inter Discipllinary -Conflict Mgt.
Increase prodcution
-Mutual trust & Coope.
+ve-Bring Efficiency -Open to re-examine -Applied Science -Foundation of OB
-Consider human asp Proposition
-Normative-Suggest Limitation
-Scientific attitude -Org- socio Technical sys
Functional foremanship -Raise productivity cause & Effect - focus Non eco. As.
-Individual differ in behv
8 area expert@supervisory -Prescriptive - Ways -Narrow view
-1st scientific aspect -Individual Need & Goal
level Factory mgr Different from of Org & means -Can not be fully
Planning ofc
-ve - Explotation -many factor affect bhv -Humanistic rationale
Productn ofc
Routine clrk
-Diminishing law of
Speed boss
return C.Social System-By Barnard-Based on understanding of inter relation
IC clrk Gang boss
-fabricated techniq 1 within org.Consider org as cooperative system,where people Interact.
Time & cost Repair boss
It is duty of mgr. To Stimute people efforts on which org success depend
Disciplinarian Inspector -Extra stress on 3 Executive Function 1.Maintain Communication 2. Secure Essential service from
worker economic motivation member 3. Formulate & define common purpose
3.Modern Organisation Theory - Based on General system theory which Treats Organisation as a system MOT Features
of Mutually dependent & related variables/Components.Their interaction form a unitary whole called - Org. As open system
organisation. Each part perform own function towards common goal. - Dynamism & adaptation
Kast & Rosenzweig - “A system is an organised, unitary whole composed of two or more interdependent - Micro-Macro View -org. As
parts, components & subsystems & delineated by identifiable boundaries from its environment.” supra sys. Having subsystem
MOT Consist of two Approaches - 1. System Approach 2. Contingency Approach -Probabilistic & integrative

A.System Approach - Part - subpart - Input - output - transformation process B.Contingency Approach - Extension of SA &
Open system - close system - environment - As discussed in unit 1 relate environment to specific structure of
Organisation is system, external environment is it supra system & Activities like organisation
technical, financial, structure are its sub system. No one Best style but is contigent upon envt &
Situation that determine org. Success & fitness

Implication/Utility Appraisal - superiority of SA Drawbacks Implication Appraisal

- Customer Focused
- Horizontal dev of Str.
-Cybernetics working
-Broader & integrated
3. Carzo & Yanouzas
Present comprehensive,
Compact format of subsys.
1.TSS-(Technical sub sys)
2.SSS-(Social sub sys)
3.PSS-(Politics sub sys)
PSS
Out of interaction of 3
Subsystem a behaviour of
Organisation emerges
- Universality of situation nt principle - Integration isuue - Reject Universality - No technique
- Macro - Micro view - give - Theoritical diff. - Action Oriented 1.to identify situation
multidimensions to working - Abstract analysis - not - Under Development 2.choose Best solution
- Envtal Dynamism & adaptive complete details -Adaptive & flexible 3.to anticipate situation
- Situational selectivity 4.to control situation
-Congruence in supra, -basically intutive
Various Thoughts on System approach
sys, & subsys is must - Complex & confusive
for org. effectiveness process of analysis
4. Open System perspective -Katz & khan
TSS Constant interaction & interdep. For
input/output by org, its adapt to grow. Various Thoughts on Contigency approach
SSS
10 characterstics of org. In open system-
Import of energy, Transformation process Gareth Morgan- Aston - Size Contingency
- Satisfy internal Size of Org. Determine Org
Output, Cyclicality, Negative entropy,
Maintaining stability, Dynamichomeostasis, needs & adapt envt Structure (deg. Of Bureau.)
Emergent Differentiation & specialisation , Integration -No one best way & not just technology
Behaviour -Depends on Org.

Degree of bureau.
& coordination, Equifinality. High perf co.
-Duty of manager to
2. Scott’s Org. System Model - W.G. Scott 1. Kast & Rosenzweig - Integrative system achieve alignments Low perf co.
Advocated Org. As a system, Five subsys -Diff. type of org
that are interconnected,Depicted in pic. needed in diff.envt Size of organisation

5 Subsystem Goals & Technologi

The system Value cal Subsys Neo Contingency Theory
A.People Law of situation-MP Follet
subsys
B.Formal Org. -Essence of sci. Mgt. Is to By donaldson & others
Managerial
C.Informal Org. Input
Subsystem Output find law of situation & not -Micro perspective of Org
D.Fusion Process Input just mgr order worker - Focus upon adaptation
E.Physical Setting -Worker as capable as mgr as per envt & technology
3 Goals Psycho Structural -so fit between str &
to stufy law of situation
Social Susystem contigency be maint.
A.Growth - Study entire situa.
Subsys Str Cont Fit Slack Res.
B.Stability & discover best, as
C.Interaction Goals of system situation determine action Re-inv Big Org Uncert.
Unfit Redesign Fit
5.Social Technical System approach - By Trist & Emery 6. Open System Planning-
Lawerence & Lorsch- If-Then / differentiation Integration
Work system design By Clark & Krone
2 Str. - Mechanist - rules, Organic - mutual coope.
- Purpose is to address
2 dimension of str- Integration -Unity of efforts
Social Subsystem Technical subsytem Interface between
Concerned with Joint Concerned with the Differentiation - functional spacialisation,
organisation & environment
attributes of people Opti process, tasks & Diff. Deptt. - Diff. Envt - diff. Str. = Integrate to run
(Skill,Attitude, value) misa Technology needed -Enphasis Upon-
1. If - uncertain envt - Then - Unstructured org.
Relation among people, tion to transform input 1. systematically analyse
reward system,& authority Firm will be highly differentiated & use integration
into output demand of envt & org
structure 2. If - Stable & hetro envt - Then - Rigid Str
2. Making plans to meet
Least differentiation & high degree of integration
them successfully
External Subsystem 3. If - High Differentiation - Then - High integration
Respond envt in a planned
Concerned with the outside influence & pull on an In any type of environment
Organisation such as stakeholder & partnering manner
4.Unstable envt always need high diff & integration
perspectives

Some Key Words - Span of control -Number of subordinate a manager can effectively supervise Gang Plank - avoid delays
Scalar Chain - A fomal straight line of authority/comunication from top mgt. to lowest rank and allow direct Comm.
Adhocracy -Type of organic structure, no rigid hierarchy, no permanent deptt. or formal rule between two Subordinate
Feature-low vertilcle Differentiation, low formalisation, decentralisation of decision making at the same level

1. Learning Organisation
- It can create, acquire & tr.
Knowledge to get desirable
work behave by members.
-Capable to learn, innovate
- Futuristic, flexible & cont.
Learning & imoprovements
Modern Concepts of Organisation Theory
2. Network Structure 3.Boundaryless Org- J.welch 4. Virtual Organisation- 5. Virtual Enterprise
- Dispersed uni &specialised -lack of horizontal Boun. by Netwk of indep.expert firm, -Temporary alliance
Operation by contracts cross functioning teams etc. work jointly to give quality of enterprises share
-outsourcer unit all efforts & verticle boundaries by flat service/Product,linked by ICT. skill & resources to
-Avoid Heirarchy & str, participation etc. -Challenges - Coordination respond change env.
Bureaucratic cost - Breaking bariers with Ex. issue, Loss of control over Also called collab
- High std. & flexible Envt. by sharing info & expert operations, Planning issue network

6.Virtual Team
- Group of Individual, work
across time & boundaries
Linked by ICT,Complemetry
skills & common purpose
-Flexible & easy to work
- But High set cost of ICT &
Chance of conflict
-members must be
competent & dynamic
-Having clear goal & trust
12. Fractal Organisation
-Div str with subunit for
specific product/client
-controlled by inspiration,
value & understanding
-having clear goals,flat str
autonomy & integrity
7.Autonomous work group
or self managed teams
-Team of 5-15 person self
directed to its goal having
autonomy to take decision
-Skilled, Trained & Cooper.
interdependent members
-Productivity, Involvement,
& sense of res. Increases
-Issue of conflict, delay,
control & perfrm Appraisal
13.Amoeba Org
- Combination of small unit
having 3-50 members.
-autonomous of hierarchy
but functional structure
-adopted where variety
Presi- Div(50) -Amoeba(400)
8.Self Organising System
-Ability to continuly change
Str. & process as per envt
-It need strng goal,Common
value & continue feedback.
9. Self designing org.
Having adaptive leadership
& career development goal
with organic capabilities.
Maintain cnfrmity with goal
& envt & have autonomy
14.Proces organisation-
-Designing operation around
series of process to meet
product dev, mkt, logistics
- Each process controlled
separately & Lean & Thin str.
- Needed for hightech prodct
10.Spaghetti organisation
-Flat, Loosely Coupled,
Project based organisation
-Ambigous job boundary,
extensive delegation.
-Free flow of knowledge,exp
-Network of continously
changing project teams
-Missing heirarchy & resp.
- But faster, employee dev.,
& participative decision
16. Moduler Org.
- Form of virtual org, only
specialised function
outsourced
- work upon core capability
-semi network organisation
11.Fishnet org.
-Fully non heirchial
- lifting of any 1 node
build dynamiv heirch.
-to create new heirch
Node can be dropped
-Pre requisite
- Every member be
able to lead, join pro.
Give vote,create
- Highest ranked
member take lead &
critical decision.

17.Lean Management- By Toyota Production
- To min. process waste & max. Product value
-Focus- Flow chart, JIT, TQM etc.
Focus on delivering Value to customer by-
1.Identify Value 2.Map the value stream
3.Create flow 4.Establish Pull 5.Seek perfection
Stakeholder of lean Management
18. Holacratic Organisation -
-No Top down approach but distribute power
- More autonomy while align to org goal
Core feature -
-Purpose Driven &not by command & control
-Responsive to challenge & opportunity
-Replace mgt with explicit & lightweight rules
- Transparent Role & responsibilities
-Allow distributed decision making
19. Cybernetic -Self regulatory system of flow
of info to control communication.Improvement
over contingency app to influence & influenced
by & respond to envt, maintain stability.
20. Utility-Appreciate significance of Resources
of org & help to understand envt & incidents.

Customer Employee

Organisation

Machine bureau Professional b. Taylorism Fayolism Human Relation Classical Neo classical
-Formal rules -focus on skill -Increase pro. At -Inc. production At -consider personal as -Impersonal -Social system
-Routine work -knowledge base shop level Org. Level human with needs -Economic need -Emotional need
-Centralised -Decentralised -Technique focs -Principle focus -motivation by -Rule & regulate -Feeling,Attitude
- for large size -small/medium -Bottom to top -Top to bottom attention -Dissatisfaction -satisfied people
-Scientific obser -Based on personal - friendly relation with
Bureaucracy Adhocracy & measure based experience later supervisor Human relation Behavioural
-Mechanistic - Organic -Narrow became universal -worker is participative -Social man - Self actualise
-Mass pro by -Creative, perspective of mgt truth -focus on employee -interpersonal -Group relation
Functional str Flexible theory -Wider Perspective (No so in Taylorism) -Conflict -ve -Conflict Natural
-Hierarchy -Boundaryless -Money motivation (point of difference) -ind need/norm -Grup need/nrm
 Chapter 4 OT. For Complete Course & Study Material:-

OD = Org. structure & culture
to achieve organisational goal
OS = authority & responsibility
relationship among various
position. Depicts who reports
whom.
OC = Shared norms & value
that govern interaction in org.
Significance/Importance
- Dealing envt. Contingencies
- Achieving competitive
advantages
- Managing diversity using
Good culture
- Increase efficiency
- Bring innovation
Need
- To implement business
strategy.
- to start org. Mechanism
- to efficient use of
resources
- to insitutionalise mgt
idea & practices
Basic Challenges- OD govern behave
of org men to achieve goal.
Challenges are-
1. Doing differentiation
2. Balancing diff. & integration
3. Balance centralise & decentralise
4. Balance std. & mutual adjustment
5. Formal & informal org coordination

1.Differentiation “Segmentation of organisational system into subsystem (div. of labor) as per task specialisation”
T Parsons - diff. is a process to 1. Allocate people & resources to org task 2. Establish res & auth . relation to achieve goal.

Steps for doing differentiation Type of differentiation Vertical Differen.

1. Determine org. Roles - 1. Horizontal - departmentation - to control task
required task & responsibility by based on division of labour differentiation.
a person due to his position. Homogeneous activity into one Due to limited span
2.Creating functional/ divisional unit on basis of specialisation no single person
can control all
sub units divide Task into Role into subunit .
workers so vertical
Functional - similar skill, tools , On basis of function,product,area level created. It
knowledge people in one group. 2. Vertical - Hierarchy of auth. define who report
Divisional - own set of basic Different role, status, privilege, whom & area of
function & responsibility. reward & authority at each level resp.
3. Verticle - Hierarcy of auth.
Different role, status, privilege,
reward & authority at each level
2.Balancing Differentiation & Integration
Differntiated activities have to be integrated for effective coordination , to avoid communication gap & sub unit orientation.
“Integration is Process of achieving unity of efforts among various subsystem of organisation’s tasks & goals”
Both are expensive in term of number of manager & time spent on coordinating activity, so keep balance.
Integrating Mechanism to bring coordination are described below in increasing order of complexity

1. Hierarchy of authority 4. Task force - a temp. committee 6. Integrating role - a full time 8. Linking Pin Model-by Rensis Likert
Who reports whom to coordinate various activities. position to communicate btw div. Assumption -1. Multiple interlocked grp
2. Direct Contact - of Production R&D 7. Integrating Deptt. - when many 2.Diff person in key place in grp bcm link pin
manager of diff activity. employee ( separate deptt.) to Such member integrate by unity in own grp
3. Liason role - each TASK coordinate activity of subunit & repre. as coordinating agent btw 2 groups.
subunit fix a mgr R&D FORCE
Software Arrow
. in pic
To contact divison Integr Hard Steering
Product ating ware Group indicate
Mgr of Marketing Engineering
linking
Deptt. div.
Other Subunit Market
5. Team - permanent committee Applicaton Role pin
As liason officer divison function
Meet regularly to coordinate act.

Centralisation- Authority to make
imp decisions lie with manager at
top level of hierarchy & operative
decision at lower levels
Allen -”centralisation is the system
-matic & consistent reservation of
authority at central point in org.”
Measuring degree of Cen/Decen
- No. of decision at different level
-Imp decision at lower levels
-Effect of lower level decision
-Degree of top mgt supervision
Advantage - uniform action
-Personal leadership of top mgt
-Unity - integration in operation
-quickly Handle emergency
-Avoid duplication of function &
equipments
Disadvantage- authortiy misuse
- Delay in decision making
-Tall heirachy leads to poor
communication
-No development of lower level
-overburden top mgt.
Decentralisation- dispersal of
decision making power to the
lower level of organisation.
Decentralization is not delegation
It Diffuse authority Within entire
enterprise & not person to person
Need - Quick decision making
- de burdening top management
- Imp decision & project initiative
at all levels
- Growth, diversion & flexibility
-Physical dispersal of activities
Advantage - Flexibility in org
-Responsiveness at lower level
-Reduce load of top gt
-Motivated lower level mgt.
-Faster decision making & work
Limitation-Planning &
coordination become difficullt
-control loss on decision making
For Achieving effective decentr.
-Appropriate degree of centrali.
-Effective coord & communicatn
-Top mgt development
 No right org. Str. To fit all org. ,but choice depend upon
3.Balancing Centralization & Decentralization following factors
Neither is possible 100% , Full C will affect decision making as per situation &
Chapter 4 OT. For Complete Course & Study Material:-
full D will lead org. Disintegration as no scalar chain,so balance is required. More C if Factors More D if
Balance is most conscious choice & necessary to face diff. Phases & changes Simple/stable Environment Complex & uncertain
Difficulty to manage informal org arere difficult to Effective Communication sys Ineffective
Capable Lower level mgr Incapable
Co-existance - both are interdependent, policy making decisions are centralised
Significant Decision Minor
& implementation decisions are decentralised. This co existence promote Strong/Stable Org. Culture Open/flexible
balance & unity in organisation. Co existence help in following Crisis Situation Normal
1.Corporate diversity & unity 2. Freedom to people & control over resource Single/ small Divisonalisation/size Dispersed/large
High level Standardisation Local level
3.promote creativity & innovation 4.conformity to common goal & innovation By lower level involve
By top mgt Strategy implement
At head office Operation At plant level

4.Balancing Standardization & Mutual adjustment

Standardization- confirmity
to specific Model,defined by
set of rules/norms, which are
considered proper to a situat.
Need-
-Sincere work culture
-Predictable behave
- Better Resource use
- Integrate activities
By common rules
Means & Form
-Written-Rules & std
-Unwritten-value/norm
At all stages in org
Input-Process-Output
It Includes
Formalisation- Degree to which
rules & regul. Applicable to ppl
- have written rules &
procedures statement
-Doing by book & no mutual adj
Socialisation
-use of unwritten norms.
-process of learning &
internalise org. Norms.
-Norm is outcome of long term
working(In detail in change mgt.)
Limitations 1.Rigid behavior
2.Against innovation
Benchmarking -
Process of measuring
performance of org.
Against best in industry
Steps to benchmarking
1.Choose product/process
2.Determine best practice
3.Measure internal level
4.Compare & find gap
5.Adopt best practice
Benefits
-High quality & profit
-Low cost & risk
Limitation
-Lack of exact info.
-Costly
Mutual Adjustment Tools of mutual
Adjustments
-When people use their - Rules not as set
prudence for decision in stones.
making rather than std -Norms & values
rules to deal a situation. that accept changes
-Mgr need to use rules -Task force & team
to std behave & flexibility
For creative ways
by mutual adj. To discover - liasoning authority
new & bettter ways. to bridge gap
-MA bring coordination
-sensitiity to people
People at higher level face
needs.
more complexity so need
-Promote informal
more MA, & relatively less
at lower levels. communication

5.Coordinating Formal & Informal Organisation

Formal organisation - Predetermined
Structure of power,rule of behaviour
& path of decision making in an org, for
authority & responsibility relation.
Barnard - A system of consciously
Coordinated activity of 2 or more ppl
Features - 1. Rationality 2. UOD
3. COC 4. Task specialisation
Advantage-1.Well defined right-duty
2.Avoid overlapping & confusion in job
3.Good communication & coordination
4.Easy to expand, diversify & control
5.Min impact of labour To, leader chng
6.Give one best way of doing work
Disadvantage - 1.Delay in action
2.Lack of initiate & creativity
3.Ignore human element like emotion
Informal organisation - unofficial & unauth-.
orised but inevitable relation among people
& group within formal org.
Barnard - an aggregate of interpersonal
relationship without any conscious purpose
but which may contribute to joint result.
Features - 1.Natural,spontenous 2.unofficial
4. Within formal org 4. Grapevine communi
Need - 1. to recover psychological fatigue
2.Desire to socialize 3.Human values protect
Advantage - 1.Motivation to work
2.Job satisfaction 3. quick communication Cliques - Concept of informal org. by Dalton, melville
4.As safety valve 5. fill mgt ability gap A Clique is small group of people with shared interest,
6.Supplement plan & policy wid tradition spend time together & exclude others.
Disadvantage - 1.Spread of rumors These are essential aspect of productive activities , also
2.Time waste in gossip 3.power centre indispensable promoters, stabilizers & change resisters.
4.Resistance to change 5.Politics in org

5 Informal overlays - By John Pfiffner Coordination of FO & IO

1.Social overlay-Similar work related
2.Functional overlays - Have extra
ordinary knowledge
3.Decision overlays - Consulted for
decision beyond formal position
4.Power overlays - Power distinct
from formal authority
5.Communication overlays
Formal org can’t work without informal
So managing informal along formal is
both desirable & possible but difficult
Difficulty to manage informal org are -
- Difficult to trace as no separate exstnc
- Self organising process, No certainity
- mgr may not know who, what, why
Requirements by mgr to coordinate
- Not only manage informal - Proactive step for IO & ppl
But engage purpose fullly - Give meaningful goal to
- Actively participate in talks workers in formal setup
- Recognize & respect values -Fair reward for performance
- Adequate formal space for -Professional work culture
psychological success to wrkr - Understand task & aim of IO
 Chapter 4
1 OT. For Complete Course & Study Material:-

OS - Formal set of relationship Significance/Need/Utility Factors in designing OS 2. Contingent Factors

that exist among individual &
groups in achieving org goals.
-OS is result of oragnising act.
It does division of work,assign
duty & define inter relation.
- Good OS should be easy,
clear, paring auth/res,
integrated & coordinated
- Clear cut Authority relationship
- Orderly pattern of communication
- Stimulate creativity & innovation
- Job satisfaction & motivation
- Encourage efficiency & growth
- Ensure Accountability & respons.
- Locating Decision centres
-Balancing organising activities
1. Basic Consideration
- Division of labour - for efficiency
- Span of control- better supervision
- Staff service - take better decision
- Formal system - to follow rules
- Scalar chain - clear authority
- Dele of authority/decentralisation
-Departmentalisation & integration
- Goal & people type, Org. size
- Environment/Industry nature
- Typ of customer,Technology
- Strategy,innovation,feedback
4 Approaches to design OS
By Peter F drucker - By analysis of
1.Activity 2. decision
3.Relationship 4.Contibution

Organisation Chart - Visual
repres/ diagrammatical
form to show org structure,
imp aspect, major functions
& their relationships & line
of communication.
Represent org in boxes - Line
Boxes - Activity & people
performing it
Line - Relation among them
Organisation Chart type 2.Horizontal - Flow of 3.Circular-top position in Centre Organisational Manual
1.Vertical - Flow of autho auth/ power from left to & middle & lower in outer circle It is authoritative & full
/power, Communication Right guide to organisation
OP PRODUCTION
from top to bottom & well ER
Supplement OC & explain
defined chain of command ATI structure properly
ON
SERVICE
C Utility -give Job descriptn
E - Written guide of auth &
O
FIN res,std,Practice,procedure
AN ACCOUNT -Avoidance of conflict
CE S
-Help good ind. relation

Authority - Right to make Decision & power to hold others a/c for their action Source 1.Formal auth theory
Allen- sum of right & power entrusted to make possible performance of the work asigned. 2.Acceptance theory
3 basic organisational relation ship in formal organisation - 1. Authority 2. Responsibility 3. Accountability 3.Competence theory

Principle of authority - Various kind of authority Control - is about inspire

- Scalar principle - clear line
- Delegation by expected
result from manager
- Absolute responsibility
- Parity of authority &
responsibility
- Unity of command
- Decision within authority
Not by upward manager
1. Cognitive - By accepting someone’s 8. Ownership - by owning a company, ppl to perform & establish
Idea, Opinion & judgement. Like Shareholders coordination among them
2. Acceptance - if subordinate accepts 9. Punitive - by ability to punish How to bring control-
3. Legal Rational - By Law 10. Reward - Power to reward other -Vert. & horiz. diffrentiation
4. Charismatic - By personal charm 11. Result - Ability to achieve targets -Standardisation by rule
5. Traditional - BY traditions, like king 12. Expert - having expertise in a -MBO/MBC & self control
6. Founder - By being founder member particular subject Auth & Control - control by
7. Relational - action of one affect 13. Reverent - based on empathy, authority to bring efficiency.
entire group, like team leader. respect, compassion for other Being done by heirarchy.

Vertical/pyramidal - Basic & Various kind of authority Structure Inverted Pyramid-Challenges tradtnl
classical.CEO at top & goal divided model. Customer at top, employee
Bloated - increase in number of Tall Structure - Multiplying
into micro technical action plan, who r closer to customer are at 2nd
manager at each level in proportion heirarchy level, without need
so more worker at lower levels & top have more freedom & auth to
to increase in subordinate, so more Problems/Drawback
structure is broader at lower level decide mgr at bottom, as facilitator.
manager than needed -Communication problem
but unity of direction & based on Pre-condition - Employee develop
-Motivation problem
scalar chain principle. new skills, have adequate resources,
-Difficult to fix responsibility
& info. Mgr as mentor consistently.
-Increase managing cost
Parkinson Law - every officer want min chain of comm principle
to increase number of subordinate Balance Tall & Flat str by
adequate no. Of level,
not of equals,for better social status
consistent with goal & envt.
& avoid rivalry. This result in taller
heirarchy & large no. of subordinate Monitor COC regularly.

Span of management Narrow Span-few subordi. Wide Span-many subordi. Factor determine span
/control/authority- Under one mgr so tall str. Under 1mgr so flatter str. - Ability of manger
no. Of subordinate +ve Close supervision & +ve force to delegate - time for supervision
under one manager. control & fast ommunication Clear policy & efficient - Nature of work
Usually 4 - 8.It also -ve Many level & costly subordinate -Subordinate capacity
impact org. Str. By Excessive distance -ve overloaded superior - Decentralisation
narrow or wide span Loss of control -Control,communicate
Responsibility - Obligation Responsibility Authority Accountability Accountability -
of an individual to carry out answerability of given
- Duty assigned - Right to command - answerability for some
Chapter 1 OT-Arise
assigned activities . Forfrom
Complete
superior Course- Arise
& Study Material:-
because of formal thing done/not/ wrong authority & responsibility &
Source action performed.
subordinate relation position & responsibility - arise only after task
- Acceptance of authority - Accountability follow resp.
-upward as Subordinate - downward, from done or failure to do
-Being in charge of an task Only after establishing
responsible to superior superior to subordinate - upward in hierarchy
/event/Logical obligation responsibility, A/C can fixed
-Can be delegated -Can be delegated towards source of auth
Importance -A/c keep organisation
- A matter of choice -A matter of choice -Can not be delegated
- Technique to control responsive, otherwise no
-Responsiblity without - Auth without resp has -Not a matter of choice
- Quickly locate responsible value of responsibility, but
authority is meaningless no ultimate purpose -Accountable may not be
- force delegation only waste of resources
-Responsible person -Authorised person will responsible/authorised if
- proper use of authority -only one person can be
always be accountable always be accountable it is delegated
- motivation to give best hold accountable for one
- Duty of leadership - Duty of law/owner - Duty of management
- Point out defficiency task

Delegation - assigning authority to Significance of delegation Weakness/hurdle in deleg Delegation is not decentralization
someone to make them perform the - Lighten executive burden Of Superior - unwilling Point Delegation Decentralisation
assigned duty. - Quick decision of issues - lack of ability to direct Definition Person to Systematic
-Auth & resp with it can be delegated - Motivate subordinates -lack of trust on subordinate person entrust delegation in
where subordi given some discretion - Maintain healthy relation -Ineffective control by mgr of res & auth entire org
but ultimate resp or A/c can not be Guideline for effective del Of Subordinate -overburden Scope Individual level Org. level
-Policy decision & control function - Well defined goal - Desire of dependency
Control By person who In general
should not be delegated - - Right & trained person -Lack of confidence/incentive
delegate level
- Routine decision & implementation - motivate & communicate -iInadequate facility/authority
Compul Compulsory to Optional if
should be delegated - Adequate control Of organisation -
sion get work done necessary
-Shared Auth - when it is delegated Principle of delegation - Inadequate planning
Relation hierarchial Semi autonomous
to 2 or more person together by 1. - Auth & resp parity - Splintered authority
-Splintered Auth - pooling authority - UOC & scalar chain - Ineffective control Philoso Technique to Technique to
dele. to 2 or more ppl to solve issue - Absoluteness of A/C -Defective structure phy get work done design org str

Specialisation - Concentration of Coordination - a Process of Coordination Methods Cooperation Coordination

efforts on a limited field of work.
It create functional structure
Advantage - Of expertise, High
speed, Efficiency/ excellence.
Drawbacks - monotonous job
- Limit diversification/dynamism
- Involve emotions & ego
-Absence of endless challenge
- Subunit orientation - due to
lack of communication between
departments, so coordination
become necessary, to harmonise
all activities
integrating & uniting different parts
of org, to work in harmony mutually
Advantage - Smooth interplay of
function & component of org.
- Minnimise friction & raise synergy
- Enhance efficiency in working
-Essesnce of managing in POCCC
Principle - Start from planning stage
- Direct contact among specialist
-Continue & reciprocal relation
Hurdles - Highly tall & Rigid Str
-Incapable mgr/resistance to change
- frequent Envt & manager change
Direct supervision of subord. - Personal - Wider term &
Standardisation of input Willingness to formal, include
Mutual adjustment by ppl adjust. cooperation
Structural reengineeering
Clear well defined goals - Unthoughtfull or - Planned &
Liason officer/task force natural deliberate
Committee / direct contact efforts
+ve Indicator - precise & - Pre requisite for - Not needed
clear flow of information, co - ordination for cooperation
Harmony & change mgt -essence of
-ve Indicator - No common - Matter of managing & org
vision, resistance to change, personal attitude success.
conflict,no mutual awarenes

Management by exception
Practice of examining business
result only if substantial
difference from expected target
Advantage - efficient use of
managerial time, Realistic App.,
More liberty to employees.
Disadvantage - Variance may be
irrelevant, if improper budget.
- Increase in admin staff cost,
- command & control based
Components - 1. measurement
2.Projection - of business process
3. Selection - of parameters
4. Measure -business
performance
5. Comparison 6. Decision
Chain of Command/ scalar
principle - Interconnected &
unbroken relationship from top
to bottom.Unbreakable flow of
control & communication by
superior to subordinate. & no
direct communication to other
deptt. Or super senior/junior.
It is too long,so gang plank came
Unity Of Command - Each
subordinate is accountable to
only one superior.
Two or more bosses can create
conflict & unsatisfactory
performance by subordinate
Right App Wrong approach
Rational system model
- Traditional Approach of OD
- Focus efficiency, control, profit
-Organisation are like machine
- Formal structure - Rule-process
- Clear communication
- Associated with scientific mgt
& bureaucratic structures
Social system model
- Modern approach to OD
- Social & cultural factors - IMP
- Org as complex social system
- Shaped by value, belief , norms
& behaviour of people working
- Emphasis informal str also
-Ass. With human relation system
 Chapter 5 & 6 OT. For Complete Course & Study Material:-

This type cover only 2 aspects 1.Line organization structure

1.Based on most fundamental
Activities significant to achieve
fundamental goals
2.Straight line concept of
scalar chain based on flow of
authority & responsibility
Merit - simple, easy to operate
- Disciplined, speedy decision
- Easy to fix responsibility
- suitable in emergency
- effec. Commu & cordination
Features- Oldest, Simple.
- Independency of all person at
same level.
- Chain of communication
TM

of perf. reports
Communication
Communication
Suitability - small size org Demerit - Weak planning

of orders
-no dynamism, succession MM
-processing industry
-emergency situation issue, poor specialisation. LM
-low dependence on envt - unbalance work load
W

Line Authority - Responsible to execute
order to achieve goal, & have powers
to command.Directly responsible to
produce goods
Staff Authority - to advice line, by
holding & processing information with
expertise. Doesn’t have performance
Responsibility & Less power .
Line & staff conflict
Line Argument - We are responsible
-Staff encroach authority & take credit
- staff has theoretical bias,narrow view
-staff make empire building efforts
Staff Argument -our advise is neglected
- Not consulted, work without authority
- line resist new idea
2.Line & Staff structure Merit - Expert advice &
rational decision making
Overcoming Conflict -Dynamism & development
- Understanding mutual authority - Better use of line authrity
- Accepting staff advice Demerit - L-S conflict
-Staff- informed & complete task - Costly & delay decision
- Atmosphere of trust & respect - Confused working envt.
LINE STAFF
- Right to decide - Right to advice Relevance of Demarcation
- Direct contri. - Assist line Demarcaction between L-S
- General & unli- -Particular & is considered irrelevant, as
mited function limited function is separate thinking from
- Generalist - Specialist doing & with size increase
----- Staff
- Do control -Do reports dividing line become fusier
Line
- Do execution -Think & plan But by clear demarcation
- Flow downward -Any direction L-S can be made effective

Activity are grouped & deptt
Are created based on fnction
Most widely used & solve
problem of L-S organisation
-Based on taylor’s functional
foremanship concept.
Feature - Division of labour
- Independent functional auth
- Functional UOD
Suitability - Org producing
single or small no. Of product
- where specialisation needed
Team is built by functional pool
of staff under project manager
guidance, when work is done,
team is dismantled & back to
home department for new job
Suitable for multiple project/
product org,construction work,
heavy machine,consultancy etc.
Project manager position
PM unify team & responsible
for work completion. FM decide
who & how aspect of worker.
So Authority-responsibility gap.
3.Functional structure
BOD
4.Project structure
Merit-Role clarity, Specialisation
-Allow delegation, Quick staffing
- Better control, easy expansion
- Effective use of personnel
- Balanced weight to important
function & coordination
Demerit - Subunit goal oriented
- Inter function conflict & lack of
understanding between them
-Slow decision making
- Violation of UOC & confusion
- Restrict generalist developmnt
Merit- Concentrated use of
resource, specialised know -
ledge, executive develop by
diversify projects
- Timely & standardise task
completion & face envt.
- Functional home for
training & development
Demerit - Pm lacking autho.
- Difficult & delay decision
- Identity, morale, security
issue with team member
- Violation of UOC
5.Committee structure
Group of ppl elected/nominated
To advise/decide specific matter.
-Permanent or adhoc committee
May be established to handle
specific issues.
Merits - Advantage of collective
knowledge & experience
-Mutual faith & respect rises
- Decentralisation & innovation
- Improved communication
- Reduce conflict & rise coord
Demerit - Delayed decision
-Dominance by aggressive ppl
- Chance of group think
- Unnecessary talk & Debate
- undefined responsibility
 Created by merging project &
function str. Latest design to
Chapter
establish flexible 5 to
structure &6
get done a series of projects
- It groups ppl & resources in
2 ways simultaneously - by
functions & by products .
- Functional worker serve
many jobs round day to use
time in best way in small job.
- It is rectangular grid with
verticle flow of functional res
& Horiz. Flow of product res.
6.Matrix structure
OT. For Complete Course & Study Material:-
Feature - 1.Build around
specific project,under
charge of Pm 2.Draw ppl
from various function
3.Project & functional mgr
have different roles.
Suitability - If highly trained
professional work in project
To homely feel, reputation
& career advancement.
-Aerospace, Mkt rsearch,
EDP Installation system etc.
Merit - Result orientation
-Give flexibility- client specific
-Skill enhance by multi project
-Minimum verticle control &
maximum horizontal control
- Emphasis professional
competence & maintain
professional identity.
Demerit - Break UOC rule
- Costly & difficult to adjust
- Not suitable for small org
- Require high pursuation skill
-Delay decision making
-More complex & conflict

7.Product structure - for organisation producing various range of products. There are 3 kind of product str as follows
1.Multi divisional Structure - 3.Product Team structure - Specialist from the
Each product division is given support function are combined into product
own set of support function to development teams for particular product.
make them self contained div. CEO Key Feature -
Merit - Increase effectiveness, -Each team is self contained div
control & profit - growth, Support func. - Each team focus 1product
More employment & promotion -Decentralise decision making
Demerit - Coordination issue, PTM Advantage -
Transfer pricing issue, costly, - Increase integration
Communication issue. -Able to respond envt change
Product
2.Product div str- same as no. 8 Division - Intensely involved of team

8.Division structure Tall Structure Flat structure

many level of mgt No or very few level of
Creating set of autonomous unit/division, coordinated by central HQ.
& supervision in org. Heirarchy in org.
Planning, finance etc centralised at HQ level & production, mkt at div level
Feature - Long COC Feature - Minimize bureaucracy
Each divison is semi autonomous with own resource & facility.
- Supervision by senior mgr - Decision making by employee
Criteria to divisonalise - 1.Territory 2.Product .
Suitability - several products with distinct features,wide geographical cover - CEO at top, Employee contact -COC is short, Span is wide
only departmental manager - Rapid & easy communication
Merit - Concentrated & Merit - Close supervision, clear Merit - Cost effective, Improved
Steady growth of each structure, Easy to msr perfmce communication, direct reporting
product line,Autonomous & Demerit - Less freedom to mgr & emplye close to customer
specialised unit, Resp fixing. employee, delay in decision & Demerit - Their could be power
Demerit - Duplication, communication, expensive struggle, not suitable for large
Cumbersome, costly, size organisation
Suitability - Mature & large size
complicated, not suitable Suitability - Network org
company.
for small organisation

Tall Structure Flat Structure Project str Matrix Str Old structure Emerging structure
- Narrow span - Wide span - No power struggle - Power struggle - Classical Str - Line, - Modern Str - Matrix
- few subordinate - Many subordinate - only for 1 project - Resource Sharing L-S, functional Project, network
- informal relation - Formal relation - Single command - Dual Command - Focus output & - Focus community
possible More probable - Few large project - Many small project achievements impact
- Close control - loose control -pure product like str -product+function str - Singular vision - Pluralise vision
- Good coordination - Coordination poor -Admin ease purpose -economy of scale - High level formal - community level
- More disciplined - Discipline issues activities creativities
- mistake chance low - mistake chance high Functional str Divisional str -Strong boundaries - loose boundaries
- Costly - Less Costly - Functional special - product special - Specialist & - Artistically centred
- Slow decision - Quick decision - Simple structure - Complicated technical team teams
- Suitable for - Suitable for -Centralised - Decentralisation - Passive consumer - Participative
Large org Small org - Interdependent - Independent div markteing customer.
Guidance needed Less Guidance need -Difficult coordination -Easy coordination - Focus on long - focus on working
-Mgr in Less pressure -Mgr- more pressure - Simple control -Complex control term capital capital & reserve
- Distorted commu. - Good commu flow - For medium firm - For large firm
 Chapter 7 OT. For Complete Course & Study Material:-

Power - “Capacity to exert Significance of power Bases of power - ‘Thing Source of power - Bases & Source Difference
influence over others” - Fuel to energy of org. under a person’s control -Reward - Coercive -Source refers as from
Salancik & Pffifner - - Help managers to work that lead to exert influence’ -Legitimate - Expert aspect & base as tool
“power is ability to get - Bring order in organisatn -By Etzioni - 1.Coercive - Referent -Information -Base denote ‘what’ a
things done by way one - Source of motivation 2.Utilitarian 3.Normative -Connection person has, source
wants them to be done” - Base of responsibility -By JRP French & Raven denotes from ‘where’
French & Raven consider
Key features Negative effect of power A.Formal - 4 sub type Interaction among source
base & source as same
- Reciprocal Relationship - Lead corruption 1. Coercive 2.Information Not isolated but interdpndnt
But Source are different
- Flexible by position - Objectify other for self 3. Legitimate 4. Reward -More reward rise referent
as per B & L as follows
- Neither fully formal nor - Negative towards other B.Personal/Informal - Due -Referent rise other power
- Position - Personal
fully informal - Self centered decision to own attributes eg - Epertise raise referent
-Expert - Opportunity
-Situational/event based - Arrogance & dictatorship charisma, expertise -Legitimate raise coercive

Successful power user Power Structure in organization Method of sharing power Power Resistance
trait - by John Kotter Vertical spread of - Decentralisation - Resistance to power
Horizontal spread is based
- Sensitive to source power is based on on functional definition of - Delegation of auth- resp exercised or perceived to
- Recognize cost, benefit line concept, higher - Devolution by sub unit be exercised over a
org. Different functional
& risk of source level have more -Privatisation person, it is part of power
head having different power
- Know to temper power power & lower TM Hickson - power get quantm Aquiring greater power by relation
-Know importance of Level have less. due to criticality of role Personal - by knowledge & Type
power to do things It is based on
UMM personal characterstics 1.Organised/effective -
- Know +ve & -ve of base Uncertain Positional - By 1.Scarcity like opposition in lok
P
Verticle definit LMM Critical o
- Use & development of -ion of org. Pervasive Role w 2.Envt uncertainity dealing sabha
LM e
power is attached with 3. non- substitutability 2. Episodic - like labour
Pass by COC No replace r
career goals. Worker 4. Centrality in org strikes

1.Clegg’s Circuit of power Theories of Power 4. Machiavellianism Power Authority

Power is circular process
flow in 3 channels
1.Overt circuit - by tradition
2.Social circuit - by relation
3.Systemic-economic circuit
2.Giddens on power
-Society-human interdepend
- Social norms & rules are
source & limitation of power
-Individual capability-action
are also source of power
-Ability to influence -Right to command
3.General dependence postulate Human nature/characterstic
high on mach scale are - - By Leader - By Manager
By R E Emerson - PXY = DYX
-High self esteem/confidnce - Broader term,- narrow, it is kind of
Power of X on Y is function of
include authority formal power
dependence of Y on X, more the - Cool & calculative
-Two face - +ve, -ve - no such faces
dependence more will be power. - Do alliance for self benefit
- Belief - End justify means -Personal quality -Position associated
H mintzberg - Degree of dependence -Manipulative for profit -flow any direction -Downward flowing
1. Importance of resources - Say what other want listen -All pervasive - With IMP decision
2. Scarcity of resources Such behaviour is of political -Without respons. - with responsibility
3. Uniqueness of resource tendency & Management -can be both formal -Only due to formal
More above 3 more be dependence must be aware of such people or in formal position

Influence - Impression- An idea/feeling Impression management Techniques

Process affecting
Behaviour of others.
Denote any change in
behave of person due to
anticipation of the
response of others
It is associated with term
power, politics, authority
About something/someone
Without conscious thought.
Impression mgt - coined by
Erving Goffman-’Presntation
of self in every day life’ to
control impression of
others about them
Conscious/subcon. process
Motive of imp. Mgt Scope - use by -Conformity - Excuses
By Leary & Kowalski -co. to make strong image - Apologies -Flattery
- Increasing desired -NGO for mor admissions -Favour - Association
reward/outcome -Political parties - cover up Components
probability - Individual - job/personal Impression motivation
- Enhance self esteem Limitations- some good Try to control perception
- Facilitating desired employee unable to do it & Impression construction
identity development some present very well Create specific impression

Organisational Politics Political Tactics/strategy Dysfunction of politics People response Power structure & politics
“Way a person able to get -Bargaining-for resource share - Power use for self interest - low job satisfaction As org grows, iron law of
power over others” -Competition - with opponent - Motivation/morale reduce - Underperformance oligarchy begins & few
-Co-optation-imp in confidence -Conflict & goal displacement - Get defensive unauthorised people
Causes - Power lust become power centres
- Coalition- unity for benefit -Iron law of oligarchy - Perform better if
- To Command resources By using political tactics.
- Pressure - like lobbying Tool to Handle have job clarity
- exercise authority -Making network-with powerful -Job, role, goal - Well defined Conditions promote it Mid mgr Though
- Self interest -Controlling information -Capable/mature manager - Uneven distribution become at lower
Middle mgr
- Career saturation -Planting situations -Unbiased/fair appraisal -role goal not clear
more Level in
-Enhance comfort zone Org can’t be politics free . -Open, 2 way communication -Interdependency high powerful hierarchy
-
-
 Chapter 8 OT. For Complete Course & Study Material:-

Organisation Culture - “is the Characteristics/Feature of OC Functions/role of culture

set of assumption, value, beliefs
& norms that member working
therein share in common”
H.S. Becker - OC refers to a
system of shared meaning held
by members that distinguishes
the organisation from other org
Each organisation has its own
unique culture that becomes its
identity.
- Degree of individual autonomy 1.Integral Integration - member
- Structure of rule/regulations develop collective identity
- Degree of support by manager 2.External Adaptation - Guide
- Performance-reward relations worker activities to deal outsider
- Conflict & tolerance level & meet goals
- Degree of innovation/Risk Work Culture - Combined quality
tolerance capability of org & employee arise out of
- Team,customer Orientation way members of org think & act
- Identity of org member More specific & visible part of OC
-Values,Principle, ethical std etc It include group value & practice

Cultural Values - are general Determinants of OC
guiding principle behaviours & -Family System - upbringing
determine desirability of an & values of org employee
outcome, event or situation. - Social norms & values
Terminal Type Instrumental - Org. Structure - formal or
Desired end state Desired Behave informal
-Technology - like IT
-Value & vision - of
organisation direct OC
-Goal Nature
-Workforce Composition
Impact of OC on modern organisation - By Keith Davis
1.Freedom - to do as one feel likes in modern organisation
2.Equality - justice in rewarding 3.Opportunity - of growth
3.Security - of job & personal life is more in modern org
OC impact on Mgt. Function
1.Objective setting - profit vs
wealth maximization
2.Planning - Degree of risk,
team work value, envt deal
3.Organizing - autonomy etc
4.Work Ethics - ethical stds
5.Motivation - of worker
6.Leading - manager behave
7.Controlling - crieteria, level
Forces to evolve culture
-New Environment challenge
-New CEO with new idea
-Business expansion/diversif.
-Rapid grwth/New employee
-Merger/aquisition/takeover
Impact of structure on OC
-Mechanistic Str - culture of ltl autonomy,
predictability, stability, being cautious etc
- Stable task & role relation - speedy
communication, integration-coordination.
-Organic str -culture of freedom, creativity
Innovation & flexibility
Impact of OC on structure
- Improve coordination & motivation way
- Produce unique core competence
- Improve team performance by values
- Build trust envt due to common OC

Managing OC - OC is needed to develop & manage for matching with goals. It is managed in following steps-

1.Developing a sound culture 2.Spreading culture & worker socialisation 3.Maintaining Culture
Following long term steps - Spreading culture by Require following efforts
Worker socialisation- Pre Arrival - Information 1.Practice cultural value
1.Establishing core corporate - using Org manual
identity - source of all values. Pre-Arrival about org as a whole 2.Suitable HR/OB policy
-Formal informal
2.Development of important during interview process 3.Socialisation-Of new
meets Encounter - Dichotomy
values - Value for time Encounter worker by indoctrinating.
-Story publish/events between expectation &
3.Build healthy behaviour norms Dimension of socialisation
4.Develop consistent management
-Symbol/logo/Rituals Metamorphosis reality of joiny worker
practice - supporting worker -use of verbal & d Metmorph - Internalise
5.Adopt symbols, Rituals & gesture language Turn Produ Commi org norms by employee
Behave Moral Culture
Confor confo confor
Artifacts that signify culture -code of condcut over ctivity tment Result of socialization mity rmity mity

4. Handling Cultural Conflicts 5. Bringing Change in culture Indoctrination of worker employed

Bring suitable changes as per from different cultures/nation
Cultural conflicts How to handle cultural conflicts
demand of time & environment by - - careful selection if member from
- Line & staff - - Developing Soft skill among executive
- Redefining & adopting new goal different culture
execution vs - Goal & role clarity result in equifinality
- Adopting new behavioural norms - -Pre departure training
innovation - Focus on goal rather process
- Introduce new visible artifacts - Suitable work assignment as per
- Corporate vs - Team building, shared responsibility &
Culture Perpetuation - to maintain learned culture & habits
professional Common goal, complementary skills
& sustain cultural value.Steps for it- - Orientation training of new
culture - Deputation & inter deptt transfer for
-Mindful selection - systematic member for new environment
- Professionals better understanding of corporate
indoctrination - efforts to reinforce - Deselection of unsuitable & non
conflict - -Sensitivity training for behaviour aware
values, beliefs among employees adjustable employee
engineer vs -Worker empowerment to perform task
-Story telling, Rituals, ceremonies - Develop sound org culture
accountant - Adopt boundary less organisation -Rewarding who follow cultural norm
Strong culture - Clear & wide
understanding of org philosophy
Chapter 8 OT. ForNormative
Active management who spend
time to communicate & reinforce
values,carefully select employee.
Weak culture - Lack of shared
value, behaviour norms & strong
tradition. Highly politicised & ltl
cohesion among group & Deptt.
High performance culture- spirit
of ‘can do’,pride, no excuses,
involvement, initiative, proactive
Adaptive culture - accept change as per speciality, education &
& challenges, risk taker, creative, interest, at which one is best.
Proactive & adapt new ideas
Type of OC - FLean Culture- An ambitious goal
Complete Course of removing waste from any
culture - Pre&defined
Study Material:-
Baseball team - employee are true
process throughout organization.
Norms & procedure, ideal-strict assets,major role in org. Success
Feature - encourage new idea
adherence to rule & regulation. Fortress - employee terminated if
-Provide learning envt -Seek
Pragmatic - Client & customer org not performing well or at loss
perfection & employee support
satisfaction is motive & priority Tough guy culture - Review of
Benefit - Retain good employee
of employee to max business. employee performance & they
-Sale growth - Sustainability
Academy Culture- Hire skilled are under constant watch
Ways to promote lean culture
individual & assign work as per Bet your company culture - very
- focus customer requirements
qualification. Focus on training risky decision & policy to address
- Communicate co. Vision clearly
& effort to upgrade knowledge. sensitive issues
- Establish & share performance
Club culture - Employee hired Process culture- employee
adhere process & procedure of metrics for everyone
organisation & worka as per - Provide lean training, Kaizen
Regulat appraisal-talent based idealogy of organisation -Continual effort to live lean

Rousseau’s Five layered culture - Theories on OC Iceberg Analogy of OC - some aspect

Most accessible at outer circle &
least accessible layer at centre most
from conscious to unconscious
CULTURE
The cultural web - 6 factors of Deel & Kennedy - 4 type OC visible on surface, like tip of iceberg,
others are implict & submerged within
OC in cultural web to identify
org state by Johnson- Scholes organisation. 90:10 ratio
1. Stories 2. Ritual & routine
2. Symbols 4. Org structure
6. Control sys 6. Power Str

Geert Hofstede - OC
4 basic dimensions of diff.
Between national cultures
1.Power distance
2.Individualism
3.Uncertainity - avoidance
4.Mascullinity

Competing value framework by Edgar Schein - Influential theory of OC. Pareek’s culture
Quinn & Roh Culture exist on 3 levels (HRD) model or
OCTAPACE values
By mgr using -
1.Openness
Espoused
2.Confrontation
& Beliefs
3.Trust
4. Autonomy
Handy’s Cultural typology - 4 type OC
5.Pro-Activity
Power- Dominated by 1 powerful ind
Bi cultural audit - diagnose Relation 6.Authenticity
Role - like functional organisation
between merging company in 3 steps- 7.Collaboration Task - resemble matrix organisation
1.Data collect2. Analys data3.Integrate 8.Experiment Person - ind. Value for professional skill

Significance of OC Harmful effects of OC Push culture Pull culture Culture Climate

- Sense of identity to member
- Unity & integrity in org
- Help to innovate/ creativity
- worker satisfaction
- make behave predictable
- Determine equality,sincerity.
- different culture corporate -CEO Motivate -Self motivated -Based on anthro & - Based on
merger may not be a success. -ppl Feel tiring - Energizing sociology psychology
- Barrier to workforce diversity - Confidentiality -Transparency - Long lasting -Doesn’t deal with
-Hurdle in change process - Punishment for-Mistake as -Member learn & value & norms
-Really strong culture become a communicate its - Mgr prescription
mistakes source of leaning
liability rather assets for org acceptability Must be followed

Something what people feel
at org. It is blend of attitudes,
expectation, policy, norms ,
affecting behaviour of people
Significance - Motivation,
speed, accuracy, Innovation,
productivity, shape relation,
loyalty, commitment, goal -
focus, change management
Organisation Climate
Elements/Dimensions
-Individual freedom to work
- Degree of control
- Leadership style, structure
- Reward, risk taking, conflits
management, trust building
-Communication & relation
Are determined by climate
Way to improve climate Culture give values without written document but
- two way & open manner Formalization is written rules & procedures
communication to clarity Institutionalisation of culture means organisation
-Participative decision aquire personality & valued for itself. Bring a clear
making for commitment understanding of OC & predicatble behave of ppl
- Modernize work method Uniform culture - A dominant culture shared by a
-make policy & procedure majority of org members. Present macro view.
more people oriented Sub culture - Deptt wise reflect separated unit’s
-Care of people aspiration distinct situation.Both vertically & horizontally