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The report emphasizes on the ideal approach of projecting the perception points at the organizational analysis and design theories and concepts on the role of rational approach in the contemporary organizational structure and the various ways of implementation of relevant theories and concepts in a newly started large scale IT organization falling within the high tech business sector. Related theories and organizational concepts provide the needed legitimate support to various organizational features like four frame theory, organizational rationality, business ethics, organizational strategy and sustainability.
The Four Frames:
Employees would always prefer to work in a prosperous and nurturing organization than an organization that witnesses pitfalls and downslides. Forming a prosperous and thriving organization is an arduous task and a vast literature on management emphasizes on building thriving organizations. Four Frames of the organization is one such important literature that is widely accepted and used.
Modern era organizations are complicated beasts (Gallos, 2008) - and the volatile nature of the dynamic, tech-savvy, racing global environment appends to their complication. The four frame theory that is drawn from both practice and research is highly essential in diagnosing the organizational needs, identifying these complications and devising an optimum solution for the same. This approach is not really bound to the major changes in the organization but also while finding a solution for minor problems internal to the organization.
The structural frame focuses on the rules, goals and technology of a particular organization. It provokes a need to design a process and implement the same respective to the current problem and the surrounding circumstances. Henceforth, "the frame concentrates on the goal directions, structural clarity, and task accomplishment in an organization."(Harris & Nelson, 2008). The key principles that support this frame are:
High clarity in the organizational goals
Efficient management of the external environment
Based on the task and the environment, a clear structure should be framed
Lines of authority devised with proper magnification and clarity
Subject expertise and segregation of workforce leads to enhanced individual specialization and performance.
Clearer focus on facts, logic and processes instead on emotions and personality.
The above mentioned principles derive an inference that the various problems in the organization reflect structural problems and the optimum solution for the same is redesigning and restructuring.
"Whereas structural frame is concerned with the way structure develops response to an organizations task; the human resources perspective adds the interplay between organization and people" (Harris & Nelson, 2008) . Inferring from this view, the building blocks of an organization are the people, the most important resource. The skills, thoughts, innovative ideas and their commitment towards the organization are directly proportional to the growth of the organization.
Poor fit between the individual and the system paves way to exploitation of individuals and the organization in a bidirectional manner. Good fit ensures clear and meaningful work that provides the energy and talent needed for the success of the organization. The major task of human resources is the alignment of individual and organizational needs in the same direction.
From the perspective of structural frame, organizations are structured to be a rational system and the controversial question is how can a effective system be designed; The human resource frame views organizational rationally but attempts to identify the mismatches between organizational needs and people.
On the whole, all of these frames are different, but they do have common characteristics. "They assume a world that is relatively certain - goals provide direction, effectiveness can be seen, needs can be identified, power can be understood, developed and used. So the world is substantially rational." (Harris & Nelson, 2008)
Warren Bennis, in one of his books, On Becoming a Leader, stresses on a fact "When you understand, you know what to do" (2003), which actually means that the best understanding of scenario resides at the core of eminent leadership and remains as an important tool in building organizations.
The managers/leaders make effective use of the four frames to analyze and evaluate the logistics of the organization with various perspectives and counter the potential problems through proper identification, interpretation and solving methodologies. These frames act as magnifying lenses that puts organizational life into a sharp focus with much clarity and paves the way for the manager to perceive the workplace from versatile views to judge things and get them done.
According to Bolman and Deal (2007), the major traditions in organizational theory are synthesized and integrated into four significant areas: Structural, Symbolic, Political and Human resource. The authors call these four areas as frames, each one of them, having a distinct view of the organizational background, emerging from different academic streams. All of these four frames have their own focus points, submerged assumptions, implementation plan and direction to the effectiveness of the organization.
One among these 4 frames, the structural frame, perceives organization as a mechanical devices or factories and stresses on goals, roles with specialization and formal relationships. It not only takes different perceptions but also drives on creating policies, rules, hierarchies and procedures to integrate the different activities of the organization aligned with its goal.
Quite different from the structural frame, the human resource frame views the organization as a single family where individuals possessing feelings, thoughts, skill, constraints and needs residing under the family umbrella. Organizations should strive towards the mutual growth of the individuals aligned to its vision.
The political frame views organization as a arena (or jungle) with supremacy, conflict, competition, power and organizational policies at its core where the beliefs, behaviors, skills, interests and diversity of values and implications within the workforce are inevitable organizational myths. "They are often toxic, but can also be a source of creativity and innovation when recognized and effectively managed" (Thomas, 2006).
The symbolic frame beholds the life in an organization as a carnival or a theatre where different individuals join together to frame culture, context and meaning as they perform their respective roles and bring self-expression and artistry into action. "Organizations that attend to the symbolic issues surrounding their own theater of work infuse everyday efforts with creativity, energy, and soul" (Gallos, 2008).
Every frame among these four, beholds a significant portion of the organizational life, but none of them are stand alone. Provided this theory, the goal of the essay is to criticize these frames and the dependency on any single view can mislead to wrong whole-part perceptions, or to misidentifying the core cause of challenges or events.
The essay will intensively explore the theoretical niceties of the frames; their pitfalls and the mutual dependence of the frames and the significance of the multi-frame perception of the organization.
Rationality is a key aspect of an organization. "Organizations are assumed to be "intentional", in the sense that they work towards specific goals or purposes"(Brunsson, 2009). In most of the organizations, there exists an assumption that under the umbrella of the norms of rationality, the decisions govern the actions.
Rational choice and foolishness exist in all the organizations. Theorizing about rational choice while ignoring the foolishness is easier and vice versa and the challenge that stands in front of them is to reconcile.
The rational behavior of the individuals causes a considerable impact on the economics of the organization, aggregating the utility-maximizing nature of the individuals such that organizational efficiency is promoted by seeking these utilities.
The discussions of decision making and policy change can be projected within the arguable dimension of rationality and incrementalism. It is never easy to segregate issues of rationality from the non rational issues.
"The fundamental premise underlying organizational studies in political science is that the behaviour of organizations mimics the bounded rationality of the actors that inhabit them" (Jones, 1999).
Questionable facts arise when the meaning of rationality and comprehensive rationality is analysed. It is referred to a prescription or description of decision making pattern in which:
The policy ends or aims are identified and assessed in terms of the policy maker's values
Every way to achieve these ends is properly identified
Out from the identified ways, the best out of the lot is selected
Comprehensive is the analysis of decision-making context (Jordan and Richardson, 1987).
John (1999) says that the rational actor model envisages the policies to be logical, justified and unbiased through which organizations can assess issues, devise solutions and implement them into action. Unless organizations are faced with choices, they cannot make decisions. Ranking and prioritizing the decisions helps them to find the best solution. When organizations make their choices, the preference rankings between the choices are consistent, when organizations have to pick their optimum option. Within the policy process, each and every participant, subjecting to the constraint of resources, gets what is needed.
This process holds a very close relevance with Lindblom's incrementalism and Simon's bounded rationality. As per the views of John (1999), aggrandizing the differences between rationality and incrementalism is absolutely counterproductive, but the key difference may be the approach of Simon presented as a recognizable attempt to get as close to the rational ideal as possible.
Based upon the limitations to a comprehensive analysis, Simon came up with his approach where in terms of the policy maker, the limitations are due to:
Simon's approach is based on limitations to comprehensive analysis. In terms of the policy maker it is limited by:
Inadequate information and knowledge of the current situation and the relevant consequences connected to the policy solutions.
Analytical inability of the people involved in decision making to look into all the possible solutions in terms of intelligence, time, predisposition and values.
The dissimilarity between individual rationality and organisational rationality.
The complexity of separating values and facts (Lindblom, 1979)
A deeper insight into the way the policies are carried out in an organization will complicate these problems to a higher level. Simon's approach is not to deny any of these limitations but to accept them as a description, and at the same time try improving all the abilities as a prescription instead of maximising.
Jones (1999) identifies the limitations to objective rationality are as follows:
Incomplete search for knowledge.
Deficit of inclination or capacity of organization to seek every available solution.
Solutions do never exist anywhere, it has to be developed.
Even before the problems arise, the solutions for the same exist.
In accordance to the above mentioned factors, the agenda-setting literature is interlinked with the boundaries of decision making rationality, where framing or problem definition and the prioritization of the significance of policy problems plunge into the competitive arena of the policy actors.
According to Lindblom, there exists a similar rationality critique. The failures are based upon constraints in:
Analytical skills and problem-solving ability
Data that are available about future conditions and future consequences
The capability to segregate values and facts
The possible ways in which issues rise up and the policy process dynamics.
There are various key perspectives from the structural background of the organizational framework. Bureaucratic model has undergone a considerable amount of study and research on its extension. Weber and Taylor took contrary stands in depicting the key principles, with monocratic bureaucracy and specialization and control standing on either side.
As like the head and tail of a coin, differentiation and integration reflect either sides of the structural frame and causing the prevalence of rationality. Differentiation triggers the allotment of responsibilities and tasks to units and individuals. Integration is the factor that maps the roles responsible for the mutual dependency. The mutual dependencies and the roles impacted by them are aligned and coordinated vertically by the authorities and laterally by conferences, teams and meetings.
The success of an organization underlies within the coordination of individual distinct values, where they get deployed efficiently across the vertical streams (designations) or the lateral streams (conferences, business units) (Bolman & Deal, 2007).
Authorities play an important role in organizational environments to regulate and coordinate the performance of individuals and divisions. In an organization with a standard set of hierarchies, the roles and responsibilities are defined with high clarity throughout all the levels of the hierarchy and the level of authority increases as the individual moves up the hierarchy. Quality management is an inevitable tool that is being used in organizations and sets certain benchmarks against which the result of any task is contrasted to. Rules and regulations support the forecasting methods applied on the operations of the organization. Some of the widely used quality management tools are Six Sigma and TQM (Total Quality Management) (Bolmer & Deal, 2007).
In this organization, the vertical hierarchy will suit the best as to obtain the necessary amount of clarity in defining the roles, responsibilities and goals.
The vertical hierarchy in addition to coordinating the individuals efficiently, it also motivates them to move up the hierarchy ladder seeking the power of authority.
Lateral coordination is the best fit when it comes to handling the lower level of management. The high amount of flexibility that this coordination offers makes it a bit informal compared to the vertical coordination. This IT firm relies heavily upon the coordination of the individuals to create products and services with innovation. As the organization grows, the complication of the organization structure increases and the wide spread geographical work force locations rise up as a potential hurdle to be watched closely. The Project leader holds the onus to regulate the workforce of the project and coordinate the team members by ensuring their respective tasks like developing, testing and maintenance are performed to the optimum level. Lateral coordination is the most sought in this kind of a situation. (Bolmer & Deal, 2007)
Centralization and decentralization are distinguished based upon three major factors:
Delegation of Decision making
Geographical centralization is the one that exists in an organization which holds a single operating location and decentralization of the same type exists when organization operates from various locations.
Functional centralization focuses on the similar functionalities of work performed by a team and the functional decentralization is about each and every team has its own set of functions to be performed.
Delegation of decision making becomes centralized when the decision making authority is placed at a single point at the core of the organization and becomes decentralized when every department or function has its won decision making authority.
Decentralized structure encourages dispersed decision making at the lower levels of management (Fred, 1977).
This organization contains all the types of decentralization as it comprises of various kind of task forces and teams like virtual teams and cross-functional teams. Since the organization possesses a blend of decentralization, centralization and lateral coordination at the appropriate levels, it stands across the efficient vertical of the industry.
Mintzberg suggests that the optimum way to convert groups into business units as a part of integration comprises of various options:
Organizational strategy is the way in which an organization does need to change over time in order to deliver the enterprise strategy and an implementable plan to make the required transformation.
Keen thinking and analysis is required to contrast the current state to the desired state and identify the gap along with executing capabilities to perform the requisite changes.
The key considerations of organizational strategy are as follows:
Extended structure of enterprise (Essential re-configurations, strategic relationships and reach extensions required in delivering the espoused strategy)
Required new skills and capabilities (workforce composition, development needs and talent acquisition, operational and process capability improvements)
Talent management processes and practices entailed to develop a high progress workforce
Operating culture of business - Mapping of value proposition to operating style
Projected performance results - Tools and processes necessary to achieve the goal
The resolute integration of the entire operating activities to provide the alignment of total enterprise to the cause
In this organization, a common mission and a set of values are shared by the employees.
Provide telecom billing software and services that add value to the relationships between our clients and their customers.
Unparalleled Client Satisfaction
Value clients, understand their business, and pledge the fullest commitment to contribute to their success and satisfaction.
Value team accomplishments and seek opportunities to join with the colleagues to advance the success of the clients.
Respect for the Individual
Value fellow employees and commit to an environment where respect for each other is essential, recognize excellence, and challenge each individual to grow personally and professionally.
Value the ongoing development and improvement of our greatest resource - our people.
We value the unique combination of qualities and contributions that each individual brings to the workplace.
We value the trust of our owners and work diligently to enhance their investment.
Value the communities in which our employees and their families live and commit to be a good corporate citizen.
We value, above all, our integrity in everything we do.
Corporate Social Responsibility
CSR (Corporate Social Responsibility) does involve a business identifying its specific stakeholders and assimilating their values and needs enclosed within the day-to-day and strategic decision-making processes.
CSR as an organizational strategy is highly important for organizations in today's dynamic world due to three major trends:
Changing social expectations
The society and consumers expect a lot more from the organizations whose products and services they buy. In the light of the corporate scandals during recent times, this sense has increased considerably that reduced the level of trust on organizations and public confidence in the ability of organizations and regulatory bodies to control the corporate excess.
In developed nations and developing nations, increasing affluence has become an undeniable truth. Affluent consumers get the freedom to choose the products and services that they want to buy. The society in requirement of work and inward investment is unlikely to impose strict regulations and also penalize organizations that are probable to take away their business and money.
The influence of media with its magnified glasses on all the time brings every mistake by companies into the limelight immediately and caters it to the attention of the public. Appending to this, the internet media acts as a catalyst to the communication within social groups and consumers by empowering them to spread the message across and giving them the way to coordinate a collective action like a product boycott.
This organization maintains a legitimate and robust Corporate Responsibility Program. Our CSR practices are densely integrated with our business and culture. They majorly fall into six key categories:
Business and trusted relationships are formed on the base of dedication and uncompromised integrity to the highest standards of ethics.
The enrichment of relationship between our employees and customers is a promise to be kept by us for our clients.
Our company being a global firm, the relationships with employees are framed on a sincere respect and trust for the individual.
Our organization supports localized giving and specific programs in the different countries in which we do operate.
Working environments are structured to optimize our organization's efficiency and performance while lowering the consumption of energy, pollution and waste.
Across the entire supply chain, we project high clarity expectations with our business partners.
Business Ethics http://www.uwf.edu/bpeach/motorola/caseb.pdf
Business ethics is the combination of ethical behaviour and morality that is used by a firm to establish a standard design of behavioural norms for all of the related activities. Business ethics puts the key focus on the moral adequacies of various corporate activities (Goodpaster, 1997).
Global businesses always face different cultural moralities because the right may be wrong when it switches from one culture to another. The scholars of business ethics have come up with a number of models purely based upon social contract, concepts of rights and utilitarianism (Thomas, 1989).
In ethical decision making, the judgement starts with gathering the relevant facts, evaluating the motives and intent, and determining the exact criteria (RS Moorthy, et al., 1998). Business ethics branch out into two streams as normative and descriptive. As per the thoughts of Donaldson & Preston (1995), normative ethics is the tangible collection of the moral issues faced and the moral reasons that we have, and the manner in which these reasons interconnect with the non-moral reasons to help better decision making and the judgments of acts. Descriptive ethics is composed of anthropological ¸ sociological and psychological investigation into the moral values reflected in what people are expected to do and in reality what do they actually do (Gary, 2006).
This organization functions aligned with a code of ethics to which employees are bound to comply. The organization commits itself to act lawfully and ethically at all times to maintain its high standard of business integrity. The code of ethics of our firm is as follows:
Well-being and safety
Diverse business relationships
Global employment standards
Organizational sustainability is the ability to sustain the operations and existence of the organization. As per the thoughts of Marek, L.I et. al., there are various sustainability factors for an organization.
Perceived value - Values witnessed by individuals and groups impacted by improved outcomes and new ways of working.
Monitoring/Feedback - Feedback is shared in an easily understandable version and monitoring is performed on a periodical basis.
Leadership - The degree of active engagement that the leaders possess.
Staff - Staff have the confidence, skills and interest in sticking on to the new ways of working.
Organizational infrastructure - It is the degree to which the job descriptions, internal resources, business models and systems support the new ways of working.
Shared models - The continued application of shared models among the people involved in the new processes and ways of working.
Organizational fit - It is the degree of alignment of the new ways of working with the organizational overall goal.
Community fit - It is the level up to which the new working ways match with the needs and interests of the community, and the urge to get involved in activities.
Partners - It is essential that the partners who support the new ways of working must be involved.
Government policy - the extent to which the government supports the new ways of working
Funding - It is the funding process that continues even beyond the grant period.
Spread - The level of expansion to additional locations and populations.
This report has managed to touch up on every essential feature of organizational analysis and design, supported with strong literatures and theories correlated with the given kind of organization. On the whole, the sequential flow of the report provides a firm answer to the posed question by the management theory and modern organization as how best to design a structure specifically suited to the circumstances with which an organization has to deal.