Effective Organizing and Organizational Culture - Review Notes

Online MBA Management Theory Handbook 

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People Organization is an intentional structure of roles various employees of an organization designed for effective and efficient performance of firm/company. There is material organization also which is an intentional structure comprising equipment, facilities, materials and other inputs. Individual employees are made responsible for using and maintaining certain equipment and facilities and to utilize materials and other inputs in working towards achieving goals of the organization through individual jobs assigned to them. 

The people organization must have certain persons who acts as decision makers in certain given areas of responsibility (function) and communicate their decisions to others. They need data for decision making, and there has to be arrangement to transmit data to them. In decision making and as well as data and information transmission, the role of equipment and facilities has increased in the recent days.

Principles of organizations must be put into practice in design of organizations and using them in daily operations. These principles are to be applied taking into consideration the unique features of each and every organization.

Some mistakes in organizing

Failure to plan properly

Failure to clarify relationships

Failure to delegate authority

Failure to balance delegation

Confusion of lines of authority with lines of communication

Granting authority without exacting responsibility

Responsibility without authority

Careless application of the Staff Device

Misuse of Functional Authority

Multiple Subordination

Misuse of Service Departments

Over Organization

Organization is a network of decision, communication and activity centers for coordinating efforts toward group and enterprise goals. To work effectively, an organization structure must be be understood and principles of making organizations work must be put into practice

Design of Effective Organizations

Design of Effective Organization depends on the objectives and goals of the organization.

Developing the Ideal Organization

Modification for the Human Factor

A plan of ideal organization will help in maintaining the actual organization whenever changes occur in personnel.

Avoiding Organizational Inflexibility

Signs of inflexibility
Reasons for reorganization
Need for Readjustment and Change

Organizations should continuously change in response to changes in customer needs and wants. An organization should not be allowed to become inflexible.

Avoiding Conflict by Clarification

Organization Charts
Position Descriptions
Need to Define Relationships
Goal Definition

Assuring Understanding of Organizing

Teaching the Nature of Organizing

Many organization plans fail because organization members do not understand them. The description of the organization plan in terms of organizational philosophy, programs, organization chart and an outline of job descriptions all help in making people understand it. In addition managers have to explain and teach the members through individual coaching, staff help or special meetings etc.

Recognizing the Importance of Informal Organization

Promoting An Appropriate Organization Culture

Culture is the general pattern of behavior, shared beliefs, and values that members have in common. Value can be defined as a fairly permanent belief about what is appropriate and what is not that guides the actions and behavior of employees in fulfilling the organization's aims. Values can be thought of as forming as ideology that permeates everyday decisions.

Changing a culture may take a long time, up to five to ten years. It demands changing values, symbols, myths and behavior. It may require, first understanding the old culture, then identifying a subculture in the organization that is appropriate and rewarding those living this appropriate culture. In other words, the new culture one wishes to bring in starts as a subculture. Espoused values need to be reinforced through rewards and incentives, ceremonials, stories, and symbolic actions.

Principles of Management - Subject Update


Updated 30 Dec 2021,  3 July 2020,  3 Feb 2015, 6 Jan 2015, 12 Dec 2011

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