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Today every business or any other organisation should maintain certain structure that makes a business an organized and balanced one; the structure also helps in operating their activities in a way so that the business can meet its current and future needs. For structure to be effective in an organisation depends on the culture it is following. An organisational structure works within the organisational culture, but it is not completely separate. More specifically, we can say that an organisational structure is related to the infrastructure, and the methods and practices within that infrastructure in an organisation which helps the organisational culture run efficiently. So, it can be said that the organisational structure and culture are very interrelated. Any organisation with healthy structure should have the combination of these two - the structure and the culture.
Burns and Stalker (1961) concluded that "If an organisation is to achieve maximum performance then its structure must fit with or match the rate of change in its environments."
Handy (1990, 1993) has discussed the importance of culture in relation to organisational design and structure and the need for new organisational forms.
Pascal, Milleman and Gioja (2000) consider "design is the invisible hand that brings organisations to life and life to organisations." Thus, from the view of researchers or scientists and from the different aspects of organisation, organisational structure, culture & its approaches is important.
In the given case study, Energypac, a Power Engineering Company wants to reorganize their organizational structure and culture that was previously following the traditional function based structure and the power culture. At this very first chapter of this assignment we will discuss about the organisational structure and culture within an organisation in relation to Energypac. We should suggest an organisational structure and culture for Energypac in a new context. We will also find out the approaches to the suggested structure and culture for Energypac.
Steven Mcshane & Tony Travaglione (2006) states, "Organisational structure refers to the way tasks are divided up, how the work flows, how this flow is coordinated and the forces and mechanisms that allow this coordination to occur.
From the above definition it can be understood that an organisation structure helps to identify the roles of the workers in an organisation. Thus every task is allocated to the worker that creates a work flow, and coordination among the workers comes in accordance to the work flow.
Before suggesting Energypac regarding the type of organisation structures we need to explore it. Let's have a look on different types of organisational structures below -
Different Organisational Structures and Comparisons among Them
The formal purpose of the organisational structure is to determine the hierarchy within the organisation. Hierarchy means the rank that should be maintained in an organisation. Basically, there are three types of organisational structures. These are -
Divisional Structure is further divided into three sub-types. They are -
Geographic/Area based Structure
We can see from the above that an organisation can be formed in five different forms. We are already known that Energypac was following the functional structure. Definitely, question may arise that why they were using the functional structure instead of other structures. The answer is every specific structure has advantages and disadvantages. Every structure has its own features. Each structure gives different facilities than other.
If any company or business looking for grouping their jobs, it should go for departmentalization. And, to be departmentalized a company may follow functional structure that Energypac followed. In a functional structure, there will be a marketing department which will contain all individuals within an organization whose jobs involve marketing tasks. The sales department will involve all who are involved in product or service sales. Customer service, purchasing, accounting, and human resource departments are some other branches that a functionally structured organization may contain.
Further, if any company looks for more specialization, it may further departmentalize its functions into division. That is where a divisional structure comes. The divisional structure often know as product based structure is divided into special sections, such as the type of product it sells, the locations of its branches, or the type of market it focuses on. Each one of these divisions will contain its own sales team, marketing specialists, customer service representatives, accountants, etc. to make the individual branches function on their own.
There are some organisations those actually want to gather all the advantages within one should go for matrix structure though it's a complicated one. Matrix structure is a combination of both functional and product structure. For example, imagine that Energypac is producing "energy efficient lamp (EFL)" and "energy efficient UPS (EF UPS)".
Figure 1.1: A view of Project based Matrix Structure
Using the matrix structure, Energypac should organize functions within the company as follows: "EFL" sales department, "EFL" customer service department, "EFL" accounting, "EF UPS" sales department, "EF UPS" customer service department, "EF UPS "accounting department.
Organizational culture, sometimes also referred to as corporate culture, is a general term that outlines the collective attitudes, beliefs, common experiences, procedures, and values that are prevalent in an organization and others similar to it.
Kotter and Heskett (1992) of the Harvard Business School define organisational culture, "As an interdependent set of values and ways of behaving that are common to a community and tend to perpetuate them, sometimes over a long period of time".
Robbins (20030 defines organisational culture as "Organisational culture refers to a system of shared meaning held by members that distinguishes the organisation from other organisations."
In the given assignment, Energypac is also looking for reorganizing its culture in a new context. Previously they were following the power culture where decisions are centralized by one key individual. Before suggesting Energypac regarding culture, let's have a look on different organisational cultures.
Different Organisational Cultures and Comparisons among Them
There five common types of culture we can see within an organisation. These are -
Forward and Backward Looking Cultures
We already got the definition of organisational culture. The definition actually says that organisational culture is nothing but an attitude of an organisation towards the outsider and the clusters of some values that is shared by the employees of that organisation. For example, Energypac was previously following the power culture. There the decisions are made by the one person and other are just worked according the decision. As Energypac was not that big organisation at that time, they were been successful since that time. In power culture, control is the key element. If any company looks for specialization of their production, they should go for the role culture as it holds the perception of divisional structure.
In role culture, organisations are split into various functions and each individual within the function is assigned a particular role. This type of culture helps to run big organisations.
On the other hand, a team based approach to complete a particular task is referred to task culture. This is the culture that most organisations are today interested for. Because, a task culture clearly offers some benefits. Staff feels motivated because they are empowered to make decisions within their team, they will also feel valued because they may have been selected within that team and given the responsibility to bring the task to a successful end.
Apart from the above cultures that we discussed so far, person culture and forward and backward looking culture is also followed by some organisations. Person cultures are commonly found in charities or non-profit organisations. The focus of the organisation is the individual or a particular aim.
Organisations that have an entrepreneurial spirit always embrace change and listen to staff and customers are said to be forward looking. And organisations those don't embrace changes and are led by systems and procedures called backward looking cultures.
In the above paragraphs, we talked a lot about the organisations system that means structure and culture. In contexts, the organisational structure and culture we tried to show comparisons and contrasts.
Now, if we look back to the given scenario, we can see that Energypac has entered into a new context where an increased product line is available and company itself grown by. In determining organisational structure and culture, a company's size, purpose, products have a great influence.
From the scenario, we got three primary goals that will lead us to determine what organisational culture and structure should follow Energypac. We want to mention the goals below:
Energypac wants to -
Maximize its profit by offering better quality product and services
Have a clear focus on different market segments
See every product is promoting by its own team, in a way so that every single division can operate as a separate profit centre.
Approaches to the Appropriate Structure & Culture
We have already gotten the objectives of Energypac that will help us in suggesting appropriate organisational culture and structure for them. This actually refers to the technique or method I am using to choose the right structure and culture. I am going to design it for you guys and showing it below in Boxed Paragraph. (A Power Point Presentation will be held later on)
Method: Finding the initiate objectives of Energypac
Energypac's Objective: To manufacture the better quality products with good profit, a clear and focused segmented market view, to get separate profit against each product division.
Suggested Organisational Structure: Divisional/Product Based Structure
Suggested Organisational Culture: Role Based Culture
Explanation: It became really simple to find out the right organisational structure and culture for Energypac after having this unique design and method that I formed. Now, it's time to defend my suggestion. It's also easy using my Method 1. Let's see below:
A divisional or product structure is divided further after functionalized. That means, if Energypac divided its organisation according to product, each department of Energypac will work for each specific product. Say for instance, Energypac has now Marketing, Finance and HR Department. Implying product structure will bring these departments under each specific product like Energy saving lamp or Energy Efficient UPS. So, we got that for Energy saving lamp there will be Marketing, Finance and HR department, and there will also Marketing, Finance and HR department for Energy Efficient UPS. As a result, each product will get the highest priority as well as specialization will come so that they can manufacture good quality product with good profit.
However, to apply product based structure within Energypac will require the supported culture that will ensure to practice this structure. We know that in a role culture an organisation is split into different functions where individuals are assigned a role. It is convenient for large organisation to adopt this type of culture. Energypac, increasing its product line converted into a large organisation which preferring its product. Practicing role culture will give them that chance to care specially about their product. So, applying product based structure with role culture, Energypac can fulfill their one of the three goals.
Again, for a clear specific segmented market Energypac should go for the product structure. As each division work for each specific product, they do care about the market of each product and finds out the needs of the customers. Identifying customers needs and demands, every department for each product work separately within an organisation for a profit. It helps to become a single specific profit center for each specific product division.
So, from the above it is clear that nothing is better than applying product based structure and role culture within Energypac in its new context.
From the very beginning of Chapter - 1, we talked a lot about the organisational structure and culture. We have suggested Energypac regarding the culture and product they should maintain. But, at the end of this discussion, a reader can easily ask this question, "Why not other culture or structure except the suggested two?" Well. This is very simple. We know, other than product/divisional structure there are functional and matrix structure, and for culture there are four other form. Actually, there are some listed reasons for what I didn't choose these organisational structures and cultures for Energypac in their new context. Reasons are given below -
For functional structure, the main reason for not choosing is its restrictive organisational view. Here, the functional unites are expert in its own field; lacks the organisations broader objectives or even the products. In contrast to this Energypac requires the specialized production unit for its new products.
For functional structure, poor accountability is one of the main reasons for not choosing it, in context of Energypac. Profit maintenance of each individual product is quite difficult for weak link between product and function unit. In contrast to this Energypac is looking for such a system where each production team may become an own profit center.
For Matrix Structure, dual controlling is often confusing. A kind of dominating tendency one over another- product vs. functional often interrupts the development of a product. So, this is the most important reason for not choosing the matrix structure in context of Energypac.
For culture, it goes same with all other than the role culture. No single culture can support the features of product based structure.
Still, apart from these selected reasons, one might raise question about role culture that in this culture employees don't get the opportunity to show their uniqueness and talents due to the tight job schedule. But, I can defend it that I have suggested it for Energypac according to their objectives. Here, it doesn't need to see whether an employee can perform extra ordinary. We should look whether an employee can perform his assigned role effectively. That is why this is the appropriate as I suggested.
Outputs Of Appropriate Structure & Culture
â-¡Introduction; â-¡ Organisational Structure & Culture and their Effects; â-¡ Expected Improvements of Energypac; â-¡ Conclusion
An organisational structure and culture has a great influence on an organisation's performance. An improvement of business largely depends on the combination of these two. In the given case study, Energypac has already got the required organisational structure and culture that they were looking for. Now, it's time to measure the overall expected performance or the improvements that can be achieved after application of the suggested structure and culture.
Chapter 2 of the given assignment is intended to provide an idea to Energypac actually what improvements can be derived from the suggested structure and culture. And for this we have to go through the relationship between the organisational structure and culture.
Organisational Structure & Culture, and their Effects
For a business to be successful needs to depend largely on the relationship between organisational culture and structure. Thus, the relationship between organizational culture and organizational structure is an important theme. It's really difficult to distinguish these two from one another, and even more so to clearly define within an institution. Organizational structure works within an organizational culture, but it is not completely separate. The two are very much interrelated. We also mentioned it in suggesting the Energypac that for product structure to be succeeded, role culture is needed.
Organizational culture is more of a larger picture, a more general term that refers to a large umbrella of smaller topics and issues within an organization. For, Energypac role culture is like an umbrella that holds the product structure within this. The structure refers to the infrastructure and the various methods and practices within that infrastructure. That helps an organizational culture run with the efficiency and consistency which should be the hallmark of any healthy organizational structure, whether it is in a corporation, sports team, or any other set up that is large enough to create its own organizational culture.
Effects of Organisational Structure & Culture on Business Performance
An organisations business performance can be measured by not only analyzing its output but also with internal part. For example, how management works, which specific responsibilities supervisors have, how a complaint is passed through the ranks - are some common area by which we can determine a business's performance. And, all these things are within the organisational cultures that are directly tied to how an organisational structure works. So, if organisational structures work well, it can be said that the business is running well too.
Expected Improvements of Energypac
Applying a correct organisational structure and culture brings some benefits or improvements in business performance of any organisation. In the given case study, Energypac got the appropriate structure and culture. So, it is expected that some good sides may have been seen in Energypac. The improvements that can be derived in the overall performance of Energypac after implementation of the suggested culture structure are given below -
Energypac will experience -
Some good quality products with good profit
A good efficient management with responsible employees
A very good working environment where cooperation between the worker is the theme
A very good system where tasks are distributed among the employees as division wise
Apart from the above benefits, Energypac's main objective regarding their product will get the highest priority after applying the suggested organisational structure and culture.
Finally, at the very end of this chapter, we got the message that having an appropriate organisational structure and culture is the key to improve a performance of any business. For Energypac, it can be concluded that they got the right structure and culture as we suggested, and obviously they will be benefited of having the product structure and role culture.
Individual Behaviour at Work
â-¡ Introduction; â-¡ Behavioural Factors & Effects; â-¡ Perception; â-¡ Personality & Personality Traits; â-¡ Attribution; â-¡Conclusion
The term "Organisational Behaviour" is not limited only into the organisational systems. It also concerns the individual who works in the systems. Thus the individuals in an organisation are so important to discuss. The individuals concern a lot of things - behaviour, emotions, perceptions, values, attitudes, decision making, motivation and so many. But, here in Chapter 3 of the given assignment, we will only talk about the behavioural factors of the individuals that actually have influences in the job performance.
We got from the given scenario that Energypac installed a manufacturing plant at Hotpara Gazipur that needs some people at the post of Branding and Communication Officer in order to create a strong brand image of the organisation.
As a consultant, I need to consider certain things before suggesting Energypac. These are the terms regarding the behavioural factors. In the upcoming paragraphs of this chapter, we will go through the certain terms like Personality, Personality Traits, the Big Five Model, and Locus of Control etc.
Behavioral Factors and Effects
Behavior of an individual is complex and every individual is different from another. So, these varieties in behavior of individuals need to be matched to make an organisation successful. Same thing goes with the Energypac; to be an effective organisation and to get some self motivated dynamic workforces it needs to match the behaviors of the workforces. There are some factors that influence an individual's behavior at job performance in organisation. These are - perception, personality and personality traits, and attribution.
It is said that perception is a process by which individuals manage and interpret their sensory impressions in order to give meaning to their environment.
If we illustrate the definition, we can see that every single individual has his or her own view and distinct way of understanding and interpreting an event. And, as they understand and perceive about an event they react according to that.
Further, perception of an individual is influenced by some sub factors. They are - the situation, the perceiver and the target. Perception of an individual varies by these factors. And thus it has a great influence at job performance of an individual.
Actually, individuals behave based not on the way their external environment actually is but, rather, on what they see or believe it to be. Evidence suggests that what individuals perceive from their work situation will influence their productivity more than will the situation itself.
As measuring the perception of an individual is little bit difficult, Energypac should go measuring the other factors that influence the job performance of an individual. Thus they may get the right persons for the position of Branding and Communication Officer.
Personality and Personality Traits
One of the major factors that should be considered by the HR department of Energypac is personality and the other is personality traits. We will talk about personality traits later on. First, we need to know what personality is.
Personality refers to the relatively stable pattern of behaviors and consistent internal states that explain a person's behavioral tendencies.
An individual's personality depends or changes or forms according to three factors. And these factors actually determine his or her personality, and these three are - heredity, environment and situation.
To know what type of personality a man have we have to go through the personality traits. And this is very important for the Energypac to know about the personality traits.
Personality traits actually refer to some characteristics that most often showed or expressed by an individual that helps to identify his /her attitude, belief or how he/she is. For example - an individual can be shy, aggressive, and ambitious or sometimes he can be lazy. These are all about personality traits.
Now it is important for Energypac to select appropriate type of personality that goes with their requirement regarding the position of Branding and Communication Officer. Before that they need to know how personality type can be measured. Scientists invented some tests to measure the personality. One the test is called The Myers-Briggs Type Indicator (MBTI).
In the MBTI, there were 100 questions. Based on the answers of questions researchers sorted out the Sixteen Primary Traits that can determine an individual's personality type. Let's have a look on the sixteen traits below:
Figure 1.1: Shows Sixteen Primary Personality Traits
From the above figure of the Sixteen Personality Traits, the HR Department of Energypac should consider four personality factors. These are - outgoing, more intelligent, emotionally stable, and conscientious.
The MBTI and Job Performance in Relation to Energypac with Reasons
We have learnt it earlier that MBTI actually found out sixteen personality factors. And from that sixteen I have chosen four factors that need to be considered by the HR department of Energypac. Let's what does these affect on job performance.
Outgoing: An individual with this type of personality is generally gorgeous, assertive, and sociable. If we see the type of position vacant in Energypac, we can see that a Branding and Communication Officer is kind of sector that more related to mix or communicate with the outsider. So, it is needed for an officer of this position to be expressed and more social. Therefore, outgoing is a type of personality that should be considered by Energypac.
More intelligent: A more intelligent individual is able to learn, think and understand anything very quickly. A Branding and Communication Officer has to mix and maintain relationship with the national and international world both. He should have the ability to take decision quickly. Moreover, he should understand and think effectively, and should learn from situations. Therefore, Energypac should look for the candidates those who are more intelligent in personality type.
Emotionally Stable: This is a type of personality that is required by every employer. An individual with this dimension is able to tolerate any stress in any situation. As it is a basic requirement for any employee, Energypac should also consider this type of personality type regarding recruiting new officers.
Conscientious: The main feature of an individual with this type of personality is reliability. This is the only personality type that predicts job in OB. Therefore, no way, Energypac should consider this also.
The personality types we are talking about are all in MBTI. But, this Sixteen Primary Traits is not widely used due to lack of evidence. Therefore, still I am not suggesting Energypac to go for this test, but consider the types of personality.
The final and the best personality type test is The Big Five Model. This model contains five factors that can describe an individual's personality properly. These five factors are - extroversion, agreeableness, conscientiousness, emotional stability and openness to experience.
The Big Five Model and Job Performance in Relation to Energypac with Reasons
We can now interpret the job performance from the big five personality factors. Let's have a look on the table below to see effects on job performance.
Big Five Personality Factor
Relationship to Job Performance
Relationship to Team Performance
* Positively related to job performance in occupations requiring social interaction
* Positively related to training proficiency for all occupations
* Positively related to team performance
* Positively related to degree of participation within team
* Positively related to job performance in service jobs
* Most studies found no link between agreeableness and performance or productivity in teams
* Some found a negative link between person's likeability and team performance
* Positively related to job performance for all occupational groups
* May be better than ability in predicting job performance
Openness to Experience
*Positively related to training proficiency
Table 1.1: Shows the Effect of Big Five Personality Factors on Job Performance
So, The Big Five Model is one of the ways that Energypac can use while recruiting officer. We have seen three out of five factors in MBTI also. So, we got at least seven personality factors that should considered by the HR department of Energypac while recruiting officers for the position of Branding and Communication Officer.
Other Necessary Factors to be considered
We have talked about perception, personality and personality traits. There are some other factors also that influence job performance of an individual at work. Among them attribution is one major factor. We will now discuss about the attribution and how Enegypac should consider this factor.
Attribution is the process of observing behaviour and then determining its cause based on individual's personality or situation. In this section we will see the major personality attributes that influence the behaviour of an individual at work.
These personality attributes are - locus of control, Machiavellianism, self-esteem, self-monitoring and risk taking.
Locus of Control
The degree to which people believe they are in control of their own fate. Further the locus of control sub divided into two groups. They are -
Internals: Individuals who believe that they control what happens to them.
Externals: Individuals who believe that what happens to them is controlled by outside forces such as luck or chance.
Locus of Control and Affects on Job Performance in Relation to Energypac
We got the definition of internals and the externals. Now, it is time to analyse their job performance. Researches show that the people who are internals are more successful in jobs and satisfied with their jobs. Additionally, they are self motivated and willing to perform work. On the other hand, the externals are less motivated and less satisfied with their job. Moreover, they are not that successful as the internals. Reason for this difference is internal doesn't believe in fate; they think that they control their fate. And, that is why they are willing to perform a task with interest.
In the given assignment, Energypac needs some self motivated, dynamic Branding and Communication Officers that only goes with the internals.
Some other necessary factors of personality that needed for a Branding and Communication Officer are - risk taking ability, self- esteem and self monitoring.
Through the whole Chapter 3 of this assignment I talked about the behavioral factors, more specifically personality factors. I tried to point out the very specific personality factors those are only need for the Branding and Communication Officer of Energypac. I can never say that my suggested factors are the best but I can say that these are not inappropriate. There might be some other better personality factors that go with the requirement of Energypac. However, I pointed out my suggested personality types that affect job performance with logic.
Apart from Chapter -3, the overall case study or the assignment gives a view of an effective organisation regarding the system, culture and the recruitment process.