Management and Organisational Behaviour 7th Edition

Management and Organisational Behaviour 7th Edition CHAPTER 16 Patterns of Structure and Work Organisation

Approaches to organisation & management • Classical approach – focused on formal structure, technical requirements of the organisation and general sets of principles • Human relations approach – focused on the informal organisation and the psychological & social needs of people at work • Systems view – emphasised the socio-technical approach, the interrelationships of sub-systems & multiple channels of interaction

The contingency approach • A development of the systems approach • Takes the view that there is no one best universal structure • A range of situational factors influence organisational design & performance • Emphasises the need for flexibility

Figure 16.1 The if – then contingency relationship

Figure 16.2 Main influences on the contingency approach

The Woodward study • Concluded that differences in organisational structure appeared to be closely linked with differences in manufacturing techniques • Organisational patterns related more to the similarity of objectives and production techniques than to size, industry type, business success

The Woodward study The organisational characteristics showing a direct relationship to technology were – • Spans of control • Levels of management • Percentage of total turnover allocated to wages & salaries • Ratio of managers to total personnel • Ratio of clerical & administrative staff to manual workers • The more advanced the technology, the longer the line

Table 16.2 Characteristics of production systems Source: Reproduced with permission from Woodward, J. Industrial Organization: Theory and Practice, Second edition, Oxford University Press (1980) p.128.

Mechanistic systems A rigid system of management practice and structure characterised by – • A clear hierarchical structure • Specialisation of task • Defined duties & responsibilities • Knowledge centered at the top of the hierarchy

Organic systems A fluid & flexible system of management practice & structure characterised by – • The adjustment & continual redefinition of tasks • A network structure of control, authority & communication • Superior knowledge not necessarily coinciding with positional authority

Mechanistic or organic systems

Integration The quality of the state of collaboration that exists among departments that are required to achieve unity of effort by the demands of the environment. Lawrence & Lorsch

Integration • Describes the degree of co-ordination and co-operation between different departments with interdependent tasks • Recognises that different departments could have their own distinctive structures according to the nature of their task • Includes the use of mediating devices to co-ordinate the different outlooks

Differentiation The difference in cognitive & emotional orientation among managers in different functional departments with respect to – • Goal orientation of managers • Time orientation • Interpersonal relations of managers • Formality of structure

Integrating mechanisms The mechanisms used depend on the amount of integration required & the difficulty in achieving it – • Mechanistic structures – integration can be attempted through the use of policies, rules & procedures • Organic structures – integration can be attempted via teamwork & mutual co-operation

Criticisms & limitations of the contingency approach These usually revolve around – • Causal relationships • Organisational performance • Independent variables • Multiple contingencies • Planned change • Power factors • Timing of organisational change

Seven habits of new organisations • Flexible & free-flowing • Non-hierarchical • Based on participation • Creative & entrepreneurial • Based around networks • Driven by corporate goals • Utilising technology as a key resource Crainer

The flexible firm Atkinson suggests that firms are looking for three kinds of flexibility - • Functional flexibility – permits rapid redeployment of employees among different activities and tasks • Numerical flexibility – allows for restructuring to adjust the number of employees to match the level of demand for labour • Financial flexibility – pay and other employment costs reflect the supply & demand of labour

Figure 16.6 The shamrock organisation

Challenges of the shamrock • Whilst the shamrock organisation is logical, these are not easy organisations to run • Each leaf of the shamrock has to be managed differently yet as part of the whole • The core is the critical hub of the organisational network & this raises important questions as to what activities & people belong in the core Handy

Management and Organisational Behaviour 7th Edition