OD&SP Assignment

7/29/2019 OD&SP Assignment

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ASSIGNMENT

ON

ORGANIZATIONAL DESIGN AND

STRUCTURAL PROCESSES

Introduction to Organization and its Types,

Determinants of Organizational Design

Submitted By:

DOLLY MODI

MBA (G)

IV SEM

A50001911013


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INTRODUCTION TO ORGANIZATION

Organizations are social entities that are goal-directed, are designed as deliberatelystructured and coordinated activity systems and are linked to the external environment. Organizations are made up of people and their relationships with one another.Managers deliberately structure and coordinate organizational resources to achieve theorganizations purpose. The modern organization may be the most significant innovationof the past 100 years. What contribution do organizations make?

Organizations bring together resources (labour, materials) to achieve desiredgoals and outcomes;

Produce goods and services efficiently (competitive prices, benefits);

Facilitate innovation (e-business, computers, redesigning organizationalstructures etc);

Use modern manufacturing and information technologies (e-business,computers);

Adapt to and influence a changing environment (globalization);

Create value for owners, customers and employees;

Accommodate ongoing challenges of diversity, ethics and the motivation andcoordination of employees (cope with growing concerns about ethics and socialresponsibility).


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TYPES OF ORGANIZATIONS

Organizations are of various types. They can be classified on different bases. However,

the most common classifications of organizations are based on their nature andpurpose. Blau and Scot (1964) have given a classification of organizations which they

call "who benefits typology. This typology is specifically, concerned with the nature of

output from an organizations>four type's of organizations are distinguished a. business

organizations, b. nonprofit service organizations, c. mutual-benefit organizations, and d.

commonweal organizations. Each of these typed of organizations has a different group

of beneficiaries.

Blau and Scott used this typology in-order to suggest that special problems are

associated with each type of organizations. These problems have to be met by specific

organizational forms and strategies. Organizations are mostly concerned with theproblem of efficient rennin g in relationship to changing markets and effectiveness.

BUSINESS ORGANIZATIONS - Business organizations are economic entities

established for the purpose of making economic gains. They are of avaricious

types, Surya Nepal Company, Everest Brewer company, Bottlers Nepal,

Standard Chartered Bank, Udaipur Cement Factory, Buddha Airways, Hotel

Himalaya are examples of business organization. Although their nature is

different, their purpose is to make profit to survive and grow. The prime

beneficiaries of business organizations are their owners or shareholders.

NONPROFIT SOCIAL ORGANIZATIONS - Many organizations are formed not

for profit making but for providing services to the clients of the community. For

examples, Tribhuvan University, Bir Hospital, Family Planning Association of

Nepal, And CRS Company are nonprofit service organizations. They provide

specific services to some segment of the society. Such organizations run onsmall fees, donations, grants, endowments, and the like. The prime beneficiaries

of nonprofit services organizations are the clients and the communities.


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MUTUAL-BENEFIT ORGANIZATIONS - The examples of mutual-benefits

organizations are labour unions, trade, associations, teachers associations,

chambers of commerce, community clubs and the like .Individuals join these

organizations to satisfy their needs for affiliation, associations and security.Membership is, therefore, the strength of these organizations. These

organizations are compelled to manage. Membership dissatisfaction is the

biggest threat to these organizations. It members needs are not fulfilled, they quit

their membership. These organizations are also conflict-prone. Therefore, the

failure rate is higher in these organizations. The prime beneficiaries of mutual-

benefit organization are the members.

COMMONWEAL ORGANIZATIONS - Common organizations are basicallyservices organizations. They are created to provide standard services to large

segment of the population. There is no profit motive behind the formation of

these organizations .The common of weal of the organization are postal services,

police departments, army units, and other public agencies. The prime

beneficiaries of commonweal organization are the general public.


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DETERMINANTS OF ORGANIZATIONAL DESIGN

The factors which affect the organization in its becoming fit in all conditions for the

attainment of organizational goal are called determinants of organization design. These

factors may be identified as:

A. Strategy and Goals

B. Environment

C. Technology

D. Size/life cycle

e. Culture.

STRATEGY AND GOALS: For the accomplishment of organizational goals and

missions, managers have to select specific strategy and design option that will help

organization achieve its purpose and goals within its competitive environment. A

strategy is a plan for interacting with competitive environment to achieve organizational

goals. Strategy goals are defined where the organization wants to go. Strategy defines it

will get that.

Example: Goal15% Annual sales growth. Strategy to achieve may be aggressive

advertisement, motivating sales people or acquiring other business that produces same

product.

ENVIRONMENT: Everything which surrounds and affects the organization in which it

operates is the environment of the organization like, consumers, trade unions,

technological breakthroughs, Govt. regulations, international happenings, climatic

conditions, political ups and downs.

TECHNOLOGY:It refers to the tools techniques and actions used to transformenvironmental inputs into organizational output. The strategy cannot be translated

directly into output. We have to design different technologies for different production

process (batch or mass) systems, differ control, system have to be created to maintain

efficiency and efficacy.

Therefore, technology will became a determinant for what type of structure is to be

designed.


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SIZE AND LIFE CYCLE: Generally size of an organization is related to the age of

organ. But it is not always true as lifecycle theories feel it. An organization may remain

small although it may grow in age. It has been found that organizations are more

structurally differentiated with increase in size. Smaller organizations tend to centralizethemselves as compared to large organs. Age of the organization makes it mature.

CULTURE AND PEOPLE:Organizations culture is the underlying set of key values,

beliefs, understandings and norms shared by employees. These underlying values may

pertain to ethical behaviour, commitment to employees, efficiency, or customer service

and they provide glue to hold the organization together. Organization culture is

unwritten but can be observed from the stories, slogans, ceremonies, dresses and office

layout. If the top manager is autocratic by nature, he/she would prefer an organization

arrangement which would allow him or he to have closer control over people and

operations. Organizational culture may or may not allow him to play autocratic role.

The studies of troubled organization revealed that the strategy, organizational structure

and culture will often reflect the personality and fantasies of top managers.

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