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Definitions of organizations:
What is organizing?
Organizing involves the assignment of functions and tasks to group and to individual employees.
It includes delegation of authority to subordinates and operating employees so that they can
properly carry out their duties. Thus organizing establishes the pattern of relationship observed
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also in terms of the way individuals look at the world. Thus, organizational structure affects
cognitive frames.
Organization design:
It is concerned with constructing and changing an organizations structure to achieve the
organizational goals. So design emphasizes the management side of organization theory.
constructing or changing an organization is not unlike building or remodeling a house.
Both begin with an end. The designer then creates a means or plan for achieving that
goal. In organization building the analogous document is an organization chart.
Organizational effectiveness: (OE)
Effectiveness refers to the degree of congruence between organization goal and some
observed outcome. Organizations can be effective or ineffective in a number of different
ways and these ways may be relatively independent of one another. Productivity
efficiency, employee absenteeism, turnover, goal consensus, conflict, participation in
decision making, stability and communication are the variables on the basis of which OE
can be measured. But there is no one-consensus approach among the authors about the
measurement of OE.
Researchers have often used different non- overlapping criteria, thus limiting the
accumulation of empirical evidence about organizational effectiveness. The following are
the different approaches to measure/define OE.
Goal Model:
The goal model is the most common theoretical perspective on effectiveness. It is both
simple and complex. In its simplest form the goal model defines effectiveness as the
degree to which organization realizes its goals. The model posits that organizations can
be understood as rational entities. Evaluators assume that an organizations goals can be
identified and organizations are motivated to meet these goals and progress toward them
can be measured.
Process approach:
Under this model effectiveness is described as a process rather than an end state, as might
be the case under the goal model. The process approach consists of three related
components:
Goal optimization
A system perspective
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Flexibility
People
Organization
Control
Ends
Description
Definition
OFM
OFE
OCM
OCE
PCM
Flexibility
Acquisition of resources
Planning
Productivity and efficiency
Availability of information
PCE
PFE
PFM
Stability
Skilled work force
Cohesive work force
On the basis of eight above cells we can create four diverse models of organization effectiveness;
Human relation model (PFM, PFE): define OE in terms of a cohesive (as means) and
skilled (as ends) work force.
Open system model (OFM&OFE): define OE in terms of flexibility and ability to
acquire resources (as ends).
Rational goal model (OCM & OCE): OE defined as goal and productivity.
Internal process model (PCM&PCE): focuses on adequate dissemination of information
and stability and order in the assessment of OE.
Dimension of organization structure:
The structural dimensions of organization can be categorized into the following variables:
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Administrative component: the ratio of number of line supervisor and managers with the
total number of employees.
Autonomy: the extent to which top management has to refer certain typical decisions to a
higher level of authority.
Complexity: the number of occupational specialties; the professional activities and the
professional trainings of the employees.
Delegation of authority: the ratio of the number of specific management decisions the
CEO has delegated to the number he has the authority to make.
Integration: the quality of the state of collaboration that exists among departments those
are required to achieve unity of effort.
Span of control: the number of subordinates that an individual manager can and should
supervise.
Specialization: the degree to which highly specialized requirements are spelled out in
format job description for various function.
Standardization: the range of variation that is tolerated within the rules defining the jobs
Vertical span: the number of levels in the authority hierarchy from the bottom to the top.
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employees
behavior.
Standardizing
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behavior
reduces
variability.
Standardization promotes co-ordination and economy of job performance. The greater the
formalization the less discretion required from a job incumbent. This is relevant because
discretion costs money. Jobs those are low in formalization, demand greater judgment.
Given that sound judgment is a scarce quality, organization has to pay more (in terms of
wages, salaries and benefits) to acquire the services of individuals who possess this
ability
C. Centralization:
Centralization refers to the degree to which decision-making is concentrated at a single
point in the organization. A high concentration implies high centralization where as low
concentration implies decentralization. Formal authority in the organization encompasses
with the centralization of decision-making. Many organizations push the making of
decisions down to lower levels but then the decision makers are bound by policies. Even
though employees low in the organization are making many decisions, if those decisions
are programmed by organizational policies a high degree of centralization exists. The
following points are important to understand the concept of centralization:
o Centralization is concerned with formal structure, not with the informal organization.
o Centralization looks at decision discretion.
o Concentration at a single point of decision-making implies a high degree of
centralization.
o Information processing system that closely monitors decentralized decisions doesnt
maintain centralized control.
o Centralization adds a comprehensive perspective to decisions and can provide
significant efficiencies. On the other hand decentralization reduces the probability of
information overload facilitates rapid response to new information provides more
detailed input into a decision instills motivation and represents a potential vehicle for
training managers in developing good judgment.
Organization theory vs. organization design and organization behavior
Organization behavior takes a micro view-emphasizing individuals and small group. It
focuses on behavior in organizations and a narrow set of employees performance and
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attitude variables- employees productivity, absenteeism, turnover, and job satisfaction are
those most frequently looked at. Individual behavior including perception, values,
learning, motivation and personality and group behavior including roles, status,
leadership, power, communication and conflict are the study area of OB.
In contrast, organization theory takes a macro perspective. Its unit of analysis is the
organization itself or its primary subunits. OT focuses on behavior of organizations and
uses a border definition of organizational effectiveness OT is concerned not only with
employee performance and attitudes but with the overall organizations ability to adopt
and achieve its goals.