Organizational culture is a concept in the field of Organizational studies and management which describes the attitudes, experiences, beliefs and values of an organization. It has been defined as the specific collection of values and goals that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization. Organization culture varies from one organization to other, to understand this lets look at the culture of our organization which is "Mansha Commercial Bank".
Culture of Mansha Commercial Bank:
Some common norms and values that mansha bank follows on departmental level are discussed below:
Mansha Commercial Bank emphasizes on values and has set it as a core objective that has to be practiced on every level of business, they believe that values has great role in the success of the organization.
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Human value is the first value set by mansha commercial bank, the nature of the business is such that they have to take care of the human capital. Customer care is a part of organizational culture and is a technique of self imaging.
Mansha Commercial bank is also a best place to work, this means that employees comfort is also practiced and appreciated by it, usually this sort of culture is accustom to motivational factors. Mansha commercial bank also appreciates technological changes that means they also like adding up modernism to their organization, this impacts the working environment and performance.
Organizational structure describes how jobs tasks are divided and it also describes how groups work in coordination. In modern or new organizational structure the owner handover his work to the professional manager to run his organization and the manager is responsible for achieving their objectives and goals. Organization can achieve their goals by thinking in terms of groups or small group of people, either what they do, or where they to do it or both. E.g. in manufacturing organization some people are doing work and some are thinking. Some are making decision and other is acting on those decisions which are taken before. There are different types of organizational structure some are tall with more managers and supervisors and some are flat with one or two mangers and have lots of employees under control. The organizational structure with which we are concerned is of Mansha commercial bank; As Mansha Commercial Bank is listed on stock exchange therefore it follows all the legalities which are imposed by concerned statutes, Mr. Mohammad Mansha is chairman & Chief executive of the company with a team of 10 directors and 1 vice chairman to help in business control and strategy making for the company. Operational management of the bank is handled by a team of 10 professionals, which is headed by Mr. Mohammad Mansha. The different operational departments are Consumer Banking & IT Division, Financial & Inter-Branch Division, Banking Operations Division, Human Resource & Legal Division, Financial Control & Audit Division, Credit Management Division, Commercial Banking Division, Corporate Banking Division, Treasury Management & FX group and Lastly Special Assets Management Group. Here is an Overview of how the Organizational Structure on the top level looks like in diagram form:
Organizational Structure of Management On a branch level is slightly different then on top level. The following is an operational organization structure of a Mansha Commercial Bank branch;
Task for P2
Here you will discuss how organization culture and structure affects the organizational performance positively or negatively. This should be attempted as a continuation of P1
You must give examples from real life(use books and internet) to clarify the relationship between organizations structure and culture and its effect on performance of an organization
Positive and Negative affects of Organizational Culture and Structure
The Affects of organizational culture and structure are vast because it deals with the key resources of an organization from a direct and indirect way, It deals with the behavior and placement of employees. Here are some of the positive and negative affects on the organizations performance in the light of structure and culture:
The behaviours and beliefs characteristic of a workplace are its culture. The culture and structure of an organization affect one another. A structure appropriate to the organization helps to develop a healthy culture. Healthy culture means a suitable work environment, customer care etc. Healthy culture tends to increase and decrease motivational levels in an organization.
Always on Time
Marked to Standard
In companies with rigid structures, communication tends to follow reporting lines. In companies with flatter structures, communication may occur more easily across departments. Communication is important and tends to decrease and increase efficiency and time of operations.
Studies have found a relationship between job satisfaction and organizational structure. Organizations with flatter structures may foster more feelings of self-actualization and create less anxiety in employees.
Relationships with customers may suffer if departmental relationships cause the customer difficulty in getting problems addressed. Multi-functional teams that can answer a customer's questions and resolve issues have a positive effect on customer satisfaction.
Organizational structure impacts the success of a company's projects. If project personnel also perform routine operational work, it may be difficult for them to focus on projects and meet schedules. If the flow of information across departments is difficult, it may affect ability to share resources effectively.
Tasks for P3
In this area discuss the factors that influence behaviour at work, your answer should focus on personality, traits and types, its relevance in understanding self and others.
Factors that influence Individual behavior at work
Personality: Personality is the behaviors and techniques for solving problems that are used by an individual .personality are the individual as culture is to the group personal beliefs, expectations, desires, values and behaviors that drive from the interaction between culture and the individual.
Perception: Perception is differs from sensations which are the impact of some stimulus on some receptors.
Perception in selection: The main point here is that we pay attention to various inputs which are selected. Some of the inputs are automatically selected while other have impact but may not be perceived.
Perception in organization: An organization affects individual in terms of what information is present as potential input.
Attitude: Attitudes are tendency to responds in a particular way towards a specified class of object. It is something which cannot be measured directly because it is inside the people.
Co-operation and Conflict: The number of people working together and cooperating on a task will produce better results then the same number of people who working alone. Co-operation inspires teamwork. Conflicts plays large role in most peoples live. Conflict occurs due to new ideas, practices and solutions to problems because people differ in the appearances, attitudes, goals. Conflict is necessary for the growth and development of individual, groups and organizations.
Communication: Communication requires that all parties understand a common language that is exchanged with each other. The effective use of communication skills such as active listening and helpful feedback depends on a supportive communication climate. Research indicated that structure communication affects both the speed and quality of work and also feeling of people.
Task for P4
Discuss the major organizational theories and discuss their salient features (Focus on function of management, managerial roles and management authority).
There are four general management theories.
1. Fredrick Taylor (Scientific management theory)
2. Henri Fayol (administrative theory)
3. Max Weber (Bureaucratic management theory)
4. Elton Mayo (Behavioral management theory)
Frederick Taylor's scientific theory.
Taylor theory of scientific management aimed at improving economic efficiency, especially labor productivity. Taylor had a simple view for motivating people at work and that was money. He felt that workers should be paid daily according to their output at the end of the day. Hence he introduced the paying of wages to the workers which was called the Piece Rate. It has a major disadvantage that the quality was compromised by the workers in order to take out more output at the end of the day.
Henri Fayol's Management administrative Theory:
Henri Fayol laid down the 14 principles of Management.
1). Division of work:
When employees are specialized, output can increase because they become increasingly skilled and efficient.
Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility.
Discipline must be upheld in organizations, but methods for doing so can vary.
4). Unity of Command:
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Employees should have only one direct supervisor.
5). Unity of Direction:
Teams with the same objective should be working under the direction of one manager, using one plan. This will ensure that action is properly coordinated.
6). Subordination of Individual Interests to the General Interest:
The interests of one employee should not be allowed to become more important than those of the group. This includes managers.
Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensation.
This principle refers to how close employees are to the decision-making process. It is important to aim for an appropriate balance.
9). Scalar Chain:
Employees should be aware of where they stand in the organization's hierarchy, or chain of command.
The workplace facilities must be clean, tidy and safe for employees. Everything should have its place.
Managers should be fair to staff at all times, both maintaining discipline as necessary and acting with kindness where appropriate.
12). Stability of Tenure of Personnel:
Managers should strive to minimize employee turnover. Personnel planning should be a priority.
Employees should be given the necessary level of freedom to create and carry out plans.
14). Esprit de Corps:Â
Organizations should strive to promote team spirit and unity.
Max Weber's Bureaucratic Theory of management:
Weber made a difference between power and authority. He said that power develops respect through the threat of force which induces individuals to stick to rules. According to Max Weber there are three types of power in the business
Features of Bureaucracy:
1). Division of labor
2). Formal Hierarchical Structure
3). Selection based on Technical Expertise
4). Management by Rules
5). Written documents
6). Only legal Power is important
Elton Mayo's Behavioral Theory of Management.
Elton Mayo's main point was that the workers are more productive when the workers know that they are being studied and that workers get highly demotivated when they feel left out.
Tasks for P5
This will be the comparative analysis of the two organizations; you will do the comparison with another organization.
Habib Bank Limited Vs. Mansha Commercial Bank
A manager of HBL is known to represent a democratic style of management based on, a family like environment where every employee is aware of their responsibilities. Every organization has its own rules but every manager has sufficient powers to run the show smoothly. The HBL's essence is a goal oriented organization, where the whole of the organization work as a single unit. HBL is the solid example of team work.
Mansha Commercial Bank on the other hand is controlled by autocratic style of management, as the Ceo of the bank is directly in control of all the departments and units, Ceo of the bank is helped by other vice Chairman and mangers but the decision making power lies in Ceo's hand. Motivation in the employees is low because of low power over operations as there is no delegation of authority. The Targets are set by the Ceo and Other helpers and are passed down to the lowest level as a command.
In HBL The manager assigns targets to the staff members in January to achieve the goals up to December and follow the rule of pay for performance. The manager instructs staff members to maintain office discipline, be courtliest with customers, be honest and follow the bank procedure otherwise action is taken against the employees. There are no such conflicts that occur between manager and employees. If manager is not authorized by the owner according to his/her assignment and evaluate him below his abilities then conflict may occur between the manager and owner. The management of HBL selects and trains the employees at the training institute of the organization.
Mansha Commercial Bank the Ceo assigns targets that are to be forwarded to every level as described earlier. HBL provide friendly and relax environment to their employees to deliver their better results and Mansha Commercial Bank provide a friendly but not flexible and relax environment because they believe that best is to be known by higher level management , for business betterment.
Tasks for M1
Discuss what is the prevailing structure and culture in the organization.
Prevailing Structure and Culture in Mansha Commercial Bank
In our organization there are two structures, the first one is the one on the top level. On the top level the organization structure is Tall structure; a tall structure is the one In which the span of control (no superior should have more then 5 or 6 subordinates) is narrow. Tall structure provide more control and direction from the organization point of view and from the point of view of employee's they are more restrictive and the taking of decision is also very few. In tall structure it is easy for the manager to keep in touch with employees and their department because of few subordinates and narrow area to supervise. The leadership style on the upper level is autocratic as described by the structure. There is one superior helped by a vice chairman to make decision for the organization the rest has to follow them and pas them down.
The second one is on the branch level, which can be more precisely called the operational level. On the operational level the structure is a tall one; as it can be seen in the diagram that one chief manager is appointed over all employees and departments. The all in all is chief manager though the chief manager of the branch gets his orders from regional managers which come indirectly under the Chief executive officer.
Tasks for M2
Here you will apply the concept of organizations theory and what is being discussed in P5 and apply your knowledge to the organization under study.
Concept of Organization Theory and Application
In task p5 we have given a summary of bank management techniques that is under study, organization has problems which can be applied with a solution that would be purely based on organization theory.
Characteristics and theories
The autocratic style of management is more of a characteristic of bureaucracy: (Max Weber). Max Weber thought that the leader passes special powers or attributes. In Mansha Commercial Bank the CEO is the leader on corporate level and chief manager is leader on branch level. This means the decision making power lies in the hand of the leader.
Stability: it is partly stable because of its rigid adherence.
Very slow to respond to costumer/ consumer demand
Very slow to respond to change
In its business environment- new technology, competitors, market trends.
Very slow to learn from its mistakes
Tasks for D1
You must identify some problems observed regarding organizational structure and culture. You will give your recommendations and justify your recommendations in light of the management knowledge you have gained in the class.
Mansha Commercial Bank is a large organization with lots of employees and managers. The very common mistake that the organization has made regarding their culture is the style of leadership, which is autocratic; usually top management keeps the decision making to them to keep in control of the operations but this is in efficient and decreases motivation too. Mansha Commercial Bank should pass down the authority, through delegation of authority process. Elton mayo has said regarding Employees that they should not feel left out because it is de motivating. Delegation of authority tests true capabilities of an employee, usually employees on the lower level enjoys power of decision making. This brings confidence and skills in them.
Mansha Commercial Bank should change its structure to a flat one with the combination decentralizing it. This would motivate employees as they will be in total control of the work they are handling, management would be easy and less supervision would be required. With this sort of structure the employee can also get a chance of training and development as their jobs will require more skills from them.
Tasks for D2
In this task you will come up with management recommendations for the organization using a managerial approach. You must consider the situation, organization is facing and which approach will be most appropriate accordingly.
Without proper management it is really hard to manage resources in hand according to plan. Frederick w Taylor (1911) was among the first to argue that management should be based on well- recognized, clearly defined and fixed principles, instead of depending on more or less hazy ideas. There are various management approaches, but the suitable for solving the situation is always appreciated.
As in scenario we are to be management trainee, the job is to train and understand the behavior of workers. In this sort of situation I recommend using "human behavior approach". Here are some if's and why's regarding this particular approach.
Human behavior method specializes in knowing human behavior, there to understand how the staff management to be trained would respond to the training program, this decrease the chances of failure and the trainers would know the favored how to's of the particular program.
Employer is laid on good human relation; this will in turn increase the trainee's motivation. Trainers would be rewarded with successful training.
Gray and Starve, date unknown, Organization and Behavior Concept and Applications
Robert E. Coffey, Anthony G. Athus and Peter A. Raynolds, 1968, Behavior in Organization, New Jersey, Englewood Cliff
Marshall Sashkin and William C. Morris, 1984, Organizational Behavior Concepts and Experiences, USA, Reston Publishing Company
Personal visit to mansha commercial bank limited (circle office)
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mcb. (2012). MCB Bank Ltd. Retrieved december 3, 2012, from MCB Bank Ltd: http://www.mcb.com.pk/
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