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We are joining an organization as management trainee, we are asked by the boss to make a report and present our findings about the organizational structure, culture and leadership approaches in the management.
In this assignment for the task of P1 we discussed the culture and structure of different departments of organisation under study. It also discussed about the prevailing structure and culture of an organisation. Then for the task of P2, it is explained that how structure and culture have positive or negative impact on the performance of an organisation along with the examples from real life. In the next task those factors are discussed which influence the buyer behaviour. It is focused on relevance understanding of each other, personality traits and types. For the task of M1, the prevailing structure and culture of organisation is discussed with the view that we can see the concepts in real life. As it is understood that no organisation is perfect, there must be any issue or problem therefore for the task of D1 problems are identified regarding structure and culture and give recommendations about management learned in class.
TASK FOR P1:
Every organization should have Organization structure because it tells about every level of hierarchy that who is responsible to whom and also shows the position of a person. Organization structure consists of vital pillars which show that what an organization is composed of.
FRAME OF ORGANIZATIONAL STRUCTURE:-
Work specialization is main factor of organization structure. In an organization there are several jobs along their workers. As every worker performs individually their tasks so they do performing that activity again and again and get trained and work specialized in their field. This factor is gives advantage and disadvantage both e.g. In a Honda Company there are many portions. Every worker becomes specialist on their portion by doing one job. He could be more accurate and efficient as he will be used to it and he can do it in less time.
In less input that worker will give more output and the disadvantage is that if the work specialized person is absent so the production will stop. By doing the same job he might be bore so the moral will be down.
Though departmentalization jobs are divided into the specialize work and they perform the tasks as groups.
Following are the forms of departmentalization:
CHAIN OF COMMAND:
Chain of command is the responsibility and proper line of authority in the organization. Classical theory explains hierarchy or structure that who reports to whom, and clarifies the position. It tells about the duties and responsibilities of given tasks in organization.
SPAN OF CONTROL:
It explains the actual position of the manager in the organization that how managers are controlling their sub co-ordinates. We have two types of span of control.
Tall and narrow
Flat and wide.
TALL AND NARROW:
In this factor manager can handle five to eight sub co-ordinates. It is much easier to handle minimum people because good communication and understanding will be there. Supervision will be stronger its means that the distance between CEO and lower managers is very less. Manager will be answerable to CEO. CEO does not have to handle all workers or employees.
FLAT AND WIDE:
This is totally opposite to the tall and narrow. In this there are many sub co-ordinates under the manager. So it's too much difficult to handle many people. Motivation to everyone is much difficult and normally human can handle few people. So as a result there will be no attraction or interest in work and moral will be down. There will be no communication between the manager and employees because it's not easy to ask about the daily work result and this is not in favour of organization.
CENTRALIZATION AND DECENTRALIZATION:
It tells about the organization structure that who is the decision maker in the organization. Who has the power and the authority to make a decision for the firm. In the centralization decision making is concentrated by the single person and the decision making is done higher hierarchy and without interaction from the lower level.
In the decentralization decision making is distributed in the hierarchy throughout the organization. It is beneficial and decisions are taken more quickly and more confidently. Every employee is the decision maker and he will feel himself an important part of an organization.
Matrix structure is the combination of the product customer, functional departmentalization. An organization which has a matrix structure it has the team work. Every department is responsible for their section. This team work is up to the project time. If the project time is over then they divert to another project. Here the project manager is responsible after the completion of the project and budget.
Supports inter-disciplinary, co-operation and multi-function working
Combines the benefits of specialization of the product/project structure
Develops tolerance of flexibility
Here in this sector there is a big disadvantage of the loyalty between the managers and the project manager over the location of funding, budget and recourses
Costs of added management positions and meetings
Slower decision making
Possible competition between dual managers
Organization culture is the set of values, rules, beliefs, attitudes and regulations these factors can help members of the organization to know how we will work. To whom we will report? What are we doing? Why this is important?
Culture is like a backbone for the organization because it is the internal environment and it plays a important role in success of the firm.
TYPES OF CULTURE:
Power culture is centralized. This culture may found in the small kinds of businesses. Control is the basic element. The decision maker is alone. There is no consultant. The organization may react quickly to the danger.
Basically this kind of culture is welfare. This culture is for the sake of society. This kind of culture can be in the group or individual aim but mostly group.
It is basically a team work based approach to complete a particular task or project. This culture is more common that business where the organization will establish a project team to complete the project in the particular time. Employee's feels motivated because they are in power to make decisions within their team or give ideas, they will also feel good and valued because they may have been selected within that team and given the responsibility to do any task and this factor will motivate the employees.
Role culture is common in most organizations nowadays. In a role culture, organizations are split into various functions and each individual within the function is assigned a particular role or task. The role culture has the benefit of specialization. Employees focus on their particular role as assigned to them by their job description and this should increase productivity for the company. This culture is quite logical to organize in a large organization.
STRUCTURE OF ORGANIZATION UNDER STUDY:
The organization we have selected in ALLIED BANK LIMITED. The main branch present at Hayatabad Phase 5. ALLIED BANK has a tall structure. There is a president who looks after the whole structure or activities there and he is only one who is answerable or accountable to regional manager. After president there is branch manager. After branch manager there are other different posts and authorities given to people working there. Like the regional does not ask the cashier anything, the cashier is answerable to branch manager and branch manager to president and then regional manager. Branch we have selected it has wide range of authorities because on the ground floor they have settled the entire banking network and the rest of the building they do their own official work.
It is a centralized system because the decision making authority lies with only one person. The president give order to manager and then manager convey orders to the employees working there. No one can make decision or do anything in bank work without asking the boss. They do what is said or decided by the higher hierarchy.
CULTURE OF ALLIED BANK LIMITED:
As we mentioned above that culture is the back bone of any organization. It tells that what are the organization rules and beliefs.
ALLIED bank almost covers all types of cultures. Allied bank have given authorities on different levels according to which they have the right to make decision in some places. That's why they have power culture. As a welfare culture Allied bank is not into any social work or something but the employees working they can have a lot of benefits. Clerks or lower level staff working there can have many good options. They can buy anything with the help of bank and they will pay on instalments. Other options they can use includes medical and basic needs.
TASK FOR P2:
ANALYZING THE RELATION BETWEEN CULTURE AND STRUCTURE:
Culture and structure is working like a backbone in the organization. It creates a new concepts and strategies which can affect or change any level of planning. When it applies on hierarchy of organization then implications of organizational culture and structure will be implemented to the government companies etc.
Organizational structure and culture can affect progress of organization in both positive and negative way. In the positive way it differentiates the organization from other organization which doesn't have a culture and structure. It explains the limitation of the firm. It provides a sense of understanding among the employees to know each other for the success and achievement of organizational goals. It can provide or bring stability and social system in the organization. In any organization having culture and structure will be having working environment and also provides appropriate standards of working environment.
Every organization has different policies, rules and regulations that how to communicate with the employee or co-workers. The organization also shows about the responsibilities that who will report to whom.
Culture and structure has also some drawbacks on the business progress. If the organization culture is too much complex then in the organization decision making will be very slow and also there will be centralized decision making in which the lower level employee's will not be entertained.
TASK FOR M1:
PREVAILING STRUCTURE AND CULTURE IN ORGANIZATION:
TALL AND FLAT STRUCTURE:
The organization we have selected is ALLIED bank limited. The structure they are prevailing is tall and narrow structure because there is a regional manager on the top of whole system. After that branch manager and then the authorities are sub divided which means that it is clear that who is answerable to whom. Tall structure in an organization means that organization will have large number of levels of management hierarchy. As authorities are sub divided at lower hierarchy therefore it also has flat structure at lower level of management.
In the system of ALLIED bank they cover different aspects of organizational structure which are as follow:
People who are assigned to their posts have are specialized in their work. They know what to do and what is their job. They are not given any other duty apart from their specialized skill.
There are also different departments in this organization. Banking department, ATM department and different places for official work also. It also fulfills the concept of departmentalization.
As mentioned above they know who is accountable to whom, this covers the idea of chain of command.
CENTRALIZATION AND DECENTRALIZATION:
In centralization the decision making authority lies only at higher level. Therefore ALLIED bank limited is also a centralized system because all the decisions are made at higher level. The authority is not delegated throughout all levels of organization. Everyone is answerable to their respective boss. They do not have any right to make any decision without asking their boss. So ALLIED bank limited is a centralized organization where all the decisions are made at higher level or hierarchy.
ALLIED bank limited covers different aspects of culture too. As we know that culture is the image of any organization. It represents the environment of that organization.
ALLIED bank has power culture because everyone has given the authority on the basis of their specialization. They have the complete right to use their power on different and respective levels.
People working in ALLIED bank also have role culture because all of them perform their own job.
They also fulfill the task culture idea because the task assigned to an individual or groups is also fulfilled or by completing different projects.
TASK FOR P3:
ANALYZE FACTORS WHICH INFLUENCE INDIVSUAL BEHAVIOUR AT WORK:
There are many terms and influences which can change the individual behavior but the most important one is personality and perception.
Personality will be defined as the distinctive traits and the characteristic of a person and the relation to the others and the response from the other people around. It includes five factors of personality known as OCEAN which influences behavior at work.
OPENNESS TO EXPERIENCE:
High openness to experience has broad interest and having a wide imagination. In other hand low openness are conservative and conventional.
Individual with a high level are original and effective. Their focus is just on their job and if this level is low in someone then that person will be very slow, careless and undutiful.
In high level its shows energetic or if it is in low level may be described as quite, shyness and unsocial.
It's good to have high agreeableness because it brings kindness friendly and a team worker.
It tells about the effectiveness and emotional control in a body. If neuroticism is high in a body then it shows nervousness, sensitivity and instability and where it is low levels shows confidence, emotional stability and activeness.
TASK FOR D1:
IDENTIFYING THE PROBLEMS AND RECOMMENDATIONS
The structure and culture we have explained will have the following problems if it is in any organization.
First of all there will be lake of delegation. Everyone have to do their respective job by which they might get bore and demand for any change which might an organization fail to provide. There is also a chance that may be an individual have a new idea but he cannot convey it to the higher authority because it is a tall structure, this also can degrade the employees.
Last and the most important problem that might occur is the communication problem. If any decision is made, it will take time to filter down to the lower hierarchy which is wastage of time. Similarly, if there is any problem in office or an individual have any issue so it will also take longer to inform the high level authority. This is the main drawback about tall structure. The communication problem can affect any organization very severely.
By having tall structure, the organization have to increase administration which will result in costs.
Recommendations about the mentioned problems are as follow:
There should be some way of communication for low level employees to communicate with boss. If they have any new idea to share or any issue to be solved so they can easily communicate with higher hierarchy.
When I asked the employee working in ALLIED bank about his communication with boss, he was not satisfied. He said that once he wanted to go for leave, he got the leave but after about 3 days because of lake of communication with boss. He gave application which should be signed by the branch manager. It is not difficult thing to do but don't know why it took so long. So there should be some communication in the whole structure.
If an organization increases its administration, it will be very expensive. So they should try to work efficiently as much as possible. We have seen clerks in ALLIED bank which were sitting free for long time. They should not hire even clerks if there is no need.