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  • Organizational Culture

    In the last byte, we looked at the emphasis of various organizational structures. In today’s byte, we begin our discussion on organizational culture.

    Defining organizational culture is a challenging task. Following is one definition of organizational culture that would be useful for our discussion here:
     
    “Organizational Culture refers to the patter of basic assumptions that are considered valid and that are taught to the new members as thee way to perceive think and feel in the organization“
     
    Note here that the definition has a corporate tinge.
     
    If one were to think what were the basic means of communicating an organization, we could identify the following:
    • Artifacts
    •     Personal Enactment
    •     Stories
    •     Rituals
    •     Symbols
    • Values
    • Assumptions
    Before we jump into the understanding of these means of communicating organizational culture we should understand the different levels of organizational culture. This is the subject of our next byte.

  • Structural configurations

    In the last byte, we looked at some of the questions that one would need to ask when designing an organization. In today’s byte, we try summarizing the various designs and some of the characteristics associated with it.
    The following table summarizes 5 structural configurations:



    We have earlier discussed about the various organizational structures possible and the implications of these designs etc in our discussion on organizational theory and development concepts.


    Your could read more about these form the following links:
    1. http://somanagement.blogspot.in/search/label/Organizational%20Theory
    2. http://somanagement.blogspot.in/search/label/Organizational%20Development%20%E0%B2%B5%E0%B3%8D%E0%B2%AF%E0%B2%B5%E0%B2%B9%E0%B2%BE%E0%B2%B0%E0%B2%BF%E0%B2%95%20%E0%B2%89%E0%B2%A8%E0%B3%8D%E0%B2%A8%E0%B2%A4%E0%B2%BF

    So we shall limit our discussion on organizational structure and move to understanding organizational culture.

  • Dimensions of Organizational Design 2

    In the last byte, we looked at the definitions of the various dimensions of organizational design. In today’s byte, we continue the discussion a bit further.

    Most often we can think of organization design, and wonder where to start. Prof Henry Mintzberg has suggested begining with the following questions to help get clarity:

    1. How many tasks should a given position in the organization contain, and how specialized should each task be?
    2. How standardized should the work content of each postion be?
    3. What skills, abilities, knowledge, and training should be required for each position?
    4. What should be the basis of grouping of positions within the organizations into units, departments, divisions, and so on?
    5. How large should each unit be, and what should the spn of control be?
    6. How much standardization should be required in the output of each position?
    7. What mechanisms should be established to help individuals in different positions and units to adjust to th needs of other individuals?
    8. How centralized or decentralized should decision-making power be in he chain of authority? Should most of the decisions be made down in the chain or authority or at the top?

  • Seek – Rakesh Godhwani

    I completed reading Rakesh‘s book on career choices – Seek a few minutes back, and as is my habit – here is my review.
    Here is what I liked about the book:
    • The structure of the book – he covers each of the cases (as I call them) and takes care of the most commonly aspired sectors for an MBA student.
    •  Mistakes were highlighted too – it makes it more real life, that we see people making mistakes
    • Subtly highlighting the role an alumni plays as a mentor to the those in dilemma (builds a case for many colleges to strengthen their alumni network)
    • Highlighted the existence of naysayer and their influence in every cases. These people have stood their ground.
    What else I would have liked to see in the book:
    • Could have also included not IIM cases – that would potentially increase the audience to which one could reach out to
    • How about Non-MBA (some where I felt the book could have included a few cases of those who managed career transitions without an MBA – could have been a more generic learning for the readers – and there by making the recommendations more generic. MBA itself gives the breadth to adapt and hence may act as a cushion of sorts – should readers believe that an MBA become necessary for career shifts?)
    • How should one learn from mistakes could have also been added – may not be the subject of this book and hence excluded. But it would be good to help people learn  how to course correct.
    This is a good starting point for those seeking career guidance, however I hope that Rakesh of other authors in this line consider different starting points and help seekers learn how to navigate from different starting points. All the best for your work on careers going ahead – keep the good work going.
    Here is a presentation he has upload covering the highlights from his book – I guess this was during the launch of the book.

  • Dimensions of Organizational Design

    In the last byte, we looked at horizontal linkage as a means of integration. In today’s byte, we define 6 dimensions of organizational design:

    1. Formalization – the degree to which the organization has official rules, regulations and procedures
    2. Centralization – the degree to which decisions are made at the top of the organization
    3. Specialization – the degree to which jobs are narrowly defined and depend on unique expertise
    4. Complexity – the degree to which mny different types of activities occur in the organization
    5. Hierarchy of authority – the degree to vertical differentiation across levels of management.

  • Horizontal Integration

    In the last byte, we looked at vertical integration linkage. In today’s byte, we look at the horizontal integrator mechanisms.

    As mentioned earlier, horizontal integration mechanism provides the communication and coordination that is required across the different jobs and departments in the organization. The need for such horizontal linkages increses as the complexity of the organization increases. When built into the organization, the forms these linkages could take forms like liason roles, task force, integrator positions and teams. 

    Liason roles is created when a person in one department has the responsibility to coordinate with the other department. Task force are temporary committees composed of representatives from multiple deparments and focus on solving specific problem.
     
    The strongest means of horizontal integration is through teams.
     
    Note that these linkage mechanisms vary from organization to organization, as well asaa within the same organization. A simple observation is that the flatter the organization, the more necessary are horizontal mechanisms.
     
    We next look at the various dimensions of org design.

  • Vertical Integration

    In the last byte, we began our discussion on integrations and the role it plays in an organization. In today’s byte, we look at vertical linkages.

    Vertical linkages as mentioned earlier used to integrate activities up and down the organizational chain of command. Many structural devices can be used to achieve vertical linkages viz – hierarchical referrals, rules and procedures, plans and schedules, positions added to the structure of the organization, and management information systems.

    The vertical lines on an organization chart indicate the referral up and down the organization. While work is delegated down the organization chart, when an employee has a doubt he refers up to the chart for consideration and resolution.
     
    The various vertical integration linkage mechanism help the manager have a wider span of control. The employee handbook, procedures etc reduce the demand on the manager’s time to focus each employee  and could choose to manage only in exceptional situations.
    For a greater understanding, one would need to think of each linkage mechanism.

  • Integration

    In the last  byte, we looked at complexity and the relationship the different differentiation. In today’s byte, we look at integration.

    Integration refers to the process of coordinating the different parts of an organization.
     
    The purpose of any integration mechanisms are designed to achieve unity among individuals and groups in various jobs, departments, and divisions in the accomplishments of organizational goals and tasks.
     
    One could understand the role of integration to be that of maintaining a equilibrium in the dynamic state of affairs – a condition in which all the parts of the organization are inter-related and balanced.
     
    We could achieve this through two broad ways:
    1. Vertical linkages
    2. Horizontal linkages
    Vertical linkages are used to integrate activities up and down the organization’s chain of command. Horizontal integration mechanisms provide the communication and coordination that is necessary for linkages across jobs and departments in the organization.

  • Complexity and Differentiation

    In the last byte, we discussed about spacial differentiation. In today’s byte, we look at the the different differentiation in combination. 

    Horizontal, Vertical and Spacial Differentiation indicates the amount of width, height and breadth an organizational structure needs. A lot of distribution on any one of these dimensions doesnt necessarily mean that it is distributed on all other dimensions as well. 
     
    As an example Imagine an university – one could find a very great horizontal differentiation, but relatively little vertical differentiation. On the other hand, consider the case of a large company like Coca-Cola: It would have a great level on all three dimensions.
     
    What one needs to remember is that the more structurally differentiated the organization is, the more complex it would be.
     
    We have used the term “complexity” a  lot. Complexity refers to the number of activities, subunits or subsystems with the organization. It has been suggested that organization’s complexity should mirror the complexity of the environment.
     
    As the complexity of an organization increases, its need for mechanisms to link and coordinate the different parts of the organization increases phenomenally. Failure to coordinate effectively could lead the orientation towards the organization goal to disappear
     
    With the need for linkage and coordination establish, we shall next move towards understanding integration.

  • Spacial Differentiation

    In the last byte, we looked at vertical differentiation. In today’s byte, we look at spacial differentiation.

    Spacial Differentiation refers to the geographic dispersion of an organizational’s office, plants and personnel. Increasing the number of locations increases the complexity of organizatgional design, but this may be necessary for organizational goal achievement or organizational protection.
     
    An implication of this suggestion would mean that organizations intending to open their branch in another company could do it by creating a subsidiary with partial ownership by the main organization while could be managed by the citizen of the country.
     
    This could also offer the organization political and legal advantages in a country because it could be identified as a local company. Distance is as important as political and legal issues in making spacial differentiation decisions.
     
    In the next byte, we continue the discussion on the various differentiations.