The differences of bureaucratic and non bureaucratic organisations

Organization is two or more people who work together to achieve organizational goals and objectives efficiently and effectively. Also it can identify as non-random arrangement of components or parts interconnected in a manner as to constitute a system identifiable as a unit. In an organization, they use organizational structures for their works. We can identify there are three traditional organizational design such as simple, functional, divisional. Organizations face more strength and weakness in these structures. Nowadays they try to ignore that weakness and develop these organizational designs as Team structure, Matrix structure, Project structure, Boundary less structure and Learning structure.

Using those contemporary organizational designs organizations gain there are many advantages. Employees are more involved and empowered, Reduce barriers among functional areas, fluid and flexible design that can respond to environmental changes, faster decision making, highly flexible and responsive, draws on talent wherever it’s found, organization can cope with environmental changes and employees feel free to make decisions are advantages. So, contemporary organizational designs are better than traditional organizational structures to the organizations.

“Organizational structure is the formal framework by which job tasks are divided, grouped, and coordinated”. When managers develop or change and organization’s structure, they are engaged in organizational design, a process that involves decisions about six key elements:

Work Specialization

Departmentalization

Chain of Command

Span of Control

Centralization and Decentralization

Formalization

Organizational design is engaged when managers develop or change an organization’s structure. Organizational Design is a process that involves decisions about the following six key elements:

i). Work Specialization

Describes the degree to which tasks in an organization are divided into separate jobs. The main idea of this organizational design is that an entire job is not done by one individual. It is broken down into steps, and a different person completes each step. Individual employees specialize in doing part of an activity rather than the entire activity.

ii). Departmentalization

It is the basis by which jobs are grouped together. For instance every organization has its own specific way of classifying and grouping work activities.

There are five common forms of departmentalization:

a). as shown in the Figure, it groups jobs Functional Departmentalization by functions performed. It can be used in all kinds of organizations; it depends on the goals each of them wants to achieve.

iii).Chain of Command

It is defined as a continuous line of authority that extends from upper organizational levels to the lowest levels and clarifies who reports to whom. There are three important concepts attached to this theory:

Authority: Refers to the rights inherent in a tell people what to do and to expect them to do it.

Responsibility

Unity of command should report to only one manager.

iv). Span of Control

It is important to a large degree because it determines the number of levels and managers an organization has. Also, determines the number of employees a manager can efficiently and effectively manage.

v). Centralization and De-Centralization

vi).Formalization

It refers to the degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures.

BUREAUCRATIC STRUCTURE

A structure with highly routine operating tasks achieved through specialization, much formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command.

In large organizations and under well defined conditions, organization structure may be bureaucratic. The essential elements of a bureaucratic organization are:

The use of standard methods and procedures for performing work; and

A high degree of control to ensure standard performance.

Mintzberg (1981) has identified two types of bureaucracies. They are standard and profession al bureaucracy. Standard bureaucracy is based on efficient performance of standardized routine work. Professional bureaucracy depends upon efficient performance of standardized but complex work. Thus, it requires a higher level of specialized skills. The structure of standard bureaucracy is based on functions, large technical staff and many mid-level managers. In contrast, professional bureaucracy has few mid-level managers.

Strengths

Functional economies of scale

Minimum duplication of personnel and equipment

Enhanced communication

Centralized decision making

Weaknesses

Subunit conflicts with organizational goals

Obsessive concern with rules and regulations

Lack of employee discretion to deal with problems

QUESTION – 3:

Assess and examine the advantages and disadvantages of your selected style in your organisation

Types of Organizational Structure

In making organizational design decisions, managers have some common structural designs from which to choose. Most commonly we consider about two organizational designs. These are:

Traditional organizational structure

Contemporary organizational structure.

Traditional Organizational Structure

When we consider the traditional organizational design, especially there are three major types of structures. They are can be listed out:

Simple structure

Functional structure

Divisional structure

Disadvantages

Lack of flexibility to changing mission needs/rapidly changing world

Internal and external communication barriers (ideas are not communicated)

Slow/Poor in responding to customer requirements

Failure to get things done

Customers/Vendors have a hard time dealing with the organization (multiple/unknown contacts)

Due to above reasons they need to move in creative ways to structure and organize works and to make their of customers, employees and other organizational constituents. In this century, there are more favourable concepts that have being generated, especially due to global village concept most of organizations have to their organizational structures in order to achieve their overall objectives through making employees’ job satisfaction. Therefore the contemporary structure is used by organizations.

Simple Structure

A simple structure is defined as a design with spans of control, centralized authority, and little formalization. This type of design is very common in small start up businesses. For example in a business with few employees the owner tends to be the manager and controls a function of the business. Often employees work in all parts of the business and don’t just focus on one job creating little if any departmentalization. In this type of design there are usually no standardized policies and procedures. When the company begins to expand then the structure tends to become more complex and grows out of the simple structure.

Functional Structure

The functional organization, shown in Figure, is a structure in where authority rests with the functional heads; the structure is sectioned by departmental groups. Staff members are divided to groups (e.g. financial, planning, public relations, engineering, legal etc) according to their specialized some of these groups can be further subdivided into smaller functional groups.

For example, the Engineering Department may be further subdivided into Mechanical Engineering and Electrical Engineering Units.

The main advantage of this organizational structure is that each functional group has complete control over its segment of the project, enforcing in this way the application of standards across projects. The disadvantages of the functional organization are that of speed, flexibility communication when attempting cross-functional projects. Since in a functional organization the work is divided between the departments, any query or request must be passed among department heads for approval, causing in this way delays. In addition, the re project is shared among the functional managers (head of the departments) and this may cause lack of ultimate responsibility for project management.

Divisional Structure

A divisional structure is made up of separate, semi divisions. Within one corporation there may be many different divisions and each division has its own goals to accomplish. A manager oversees their division and is comp lately responsible for the success or failure of the division. This gets man agers to focus more on results knowing that they will be held accountable for them. 12 causing in this way de lays. In addition, the responsibility of managing the project is shared among the functional managers (head of the departments) and this may cause lack of ultimate responsibility for project management.

Contemporary Organizational Designs

The flexible structural methods that job tasks are divided, grouped, and coordinated for response to dynamic environmental factors.

To face highly dynamic and complex environment the contemporary organizational structure is very important. In response to market place demands for being lean, flexible and innovative current organization s use these contemporary structures.

Team structure

Matrix structure

Project structure

Boundary less organizations

Network organizations

Modular organizations

Virtual organizations

Learning organizations

Team Structure

In the team base structure, the entire organization is made up of work groups or teams that perform the organization’s work. In the team base structure, employee’s empowerment is crucial because there is no line of managerial authority from top to bottom. Rather, employee teams are free to design work in the way think is best. However, the teams are also held responsible for all work activity and performance results in their respective areas.

In large organizations, the team structure complement what is typically a functional or divisional structure. This allows the organizations to have efficiency of a bureaucracy while providing the flexibility that team provide to improve productivity at the operational level.

Examples for team structure

In marketing field sales force is use this team based structure. Also forces use this team structure.

Team based structure usually practice in unbranded products, like furniture, electric equipments, and cosmetics.

Advantages

Easy Integration.

Since it is the most popularly used form of team organization it is easy to integrate. This is so, because every developer is experienced with such a structure and understands their role within it.

Better Management,

More Control, since the entire team is physically within the same building, communication is at its peak, since face-to-face communication is by far the best method in all situations. The physicality of this team structure typically means it is easier to find and solve issues together. It is also easier to spawn a team spirit, particularly in crunch periods, which can spark increased motivation.

Greater productivity,

In a team based structure there are various skills and ability persons give their contribution produce a great output.

Disadvantages

Significant Overheads

Of course hiring a full team and owning or renting office space with all that goes with it (i.e. electricity, computers) a studio is going to run high overheads. In fact, overheads can amount to a quarter of the budget on some productions, which is an incredibly high ratio of cost

Arising conflicts,

Team based structure lead to opinion conflicts among team members.

Matrix Structure

The matrix structure of contemporary organizational structures assigns specialist from different functional departments to work on one or more projects.

In matrix structure one employee should report to two managers. So the employee faces conflict when they address their superiors. To whom should I report firstly, to whom should I obey or directly responsible for functional department’s manager and their product or project manager who share authority. The project managers have authority over the functional members who are part of their project team in area relative to the project’s goals. However decisions such as promotions, salary recommendations and annual reviews remain the functional manager’s responsibilities. To work effectively, project and functional managers have to communicate regularly, coordinate work demands on employees and resolve conflicts together.

Matrix Organizational Structure

On the other hand the two managers influence to the employee so the employee should want to their works in correct way. By using matrix structure can establish high control and greater supervision throughout the project period. It may helps to increase project performance and effectiveness.

In matrix structure we can easily get high performance because there is skilled, ability full and experienced employees come from different functional departments.

This structure is most effective to achieve overall organizational goals. It leads to increase job satisfaction, experience and knowledge of the employees.

Project Structure

An organizational structure in which employees continuously work on projects is a project structure. In a project structure has no formal departments to which employee return at the completion of a project. Instead employees take their specific skills, abilities and experience to other work project.

In addition, all work activities in project structures are performed by teams of employees who become part of a project team because they have the appropriate work skills and abilities.

Project structure tends to be fluid and flexible organizational designs. There is no departmentalization or rigid organizational hierarchy to slow down decision making or taking actions.

Ex-: Information Systems build by using project structure, Constructions

Project structure reduces job boredom, because they work different projects, and less work specialization. Although the matrix structure work well and continued to be effective structure design choice for many organizations are using more advance types project structure, in which employees continuously work on projects. Unlike the matrix structure, a project structure has no formal departments to which employees return at the completion of a project. Instead, employee take there specific skills, abilities and experiences to other work projects. In addition, all work activities in project structures are performed by teams of employee who become part of a project team because they have the appropriate work skills and abilities.

In this types of structures managers serve as facilitators, mentors and coaches. They “serve the project teams by eliminating or minimizing organizational obstacles and by ensuring that team has the resources they need to effectively and efficiently complete their work.

QUESTION – 2:

Assess and select which style is suitable for your selected organisation any why?

BOUNDARYLESS ORGANIZATIONS

In a boundaryless organization, the boundaries that divide employees such as hierarchy, job function, and geography as well as those that distance companies from suppliers and customers are broken down. A boundaryless organization seeks to remove vertical, horizontal, and external barriers so that employees, managers, customers, and suppliers can work together, share ideas, and identify the best ideas for the organization.

What are the boundaries?

Vertical

Boundaries between layers within an organization Classic Example: Military organization Problem: Someone in a lower layer has a useful idea; “Chain of command” Mentality

Horizontal

Which boundaries exist between organization functional units? Each unit has a singular function.

Problem: Each unit maximize their own goals but not the overall goal of the Organization

External

Here are external barriers between the organization and the outside world (customers, suppliers, other government entities, special interest groups, communities). Customers are the most capable of identifying major problems in the organization and are interested in solutions. Problem: Lose sight of the customer needs and supplier requirements

Geographic

Barriers among organization units located in different countries Instead of being organized around functions with many hierarchical levels, the boundaryless organization is made up of self-managing and cross-functional teams that are organized around core business processes that are critical for satisfying customers such as new-product development or materials handling. The traditional vertical hierarchy is flattened and replaced by layers of teams making the organization look more horizontal than vertical. Some believe that the boundaryless organization is the perfect organizational structure for the 21st century.

Types of boundary less Organizations

Network Organizations

In a network organization, various functions are coordinated as much by market mechanisms as by managers and formal lines of authority. Emphasis is placed on who can do what most effectively and economically rather than on fixed ties dictated by an organizational chart. All of the assets necessary to produce a finished product or service are present in the network as a whole, not held in-house by one firm.

Virtual Organizations

The most interesting networks are dynamic or virtual organizations. In a virtual organization an alliance of independent companies share skills, costs, and access to one another’s markets. It consists of a network of continually evolving independent companies. Each partner in a virtual organization contributes only in its area of core competencies. The key advantage of network and virtual organizations is their flexibility and adaptability.

The Modular Organization

A modular organization is an organization that performs a few core functions and outsources noncore activities to specialists and suppliers. Services that are often outsourced include the manufacture of parts, trucking, catering, data processing, and accounting. Thus, modular organizations are like hubs that are surrounded by networks of suppliers that can be added or removed as needed. By outsourcing noncore activities, modular organizations are able to keep unit costs low and develop new products more rapidly. They work best when they focus on the right specialty and have good suppliers.

Learning Organizations

The concept of a Learning Organizations doesn’t involve a specific organizational design. Learning Organizations is an organization that has a developed the capacity to continuously adopt and change because all members take an active role in identifying and resolving work related issues. In a Learning Organizations, employees are practicing knowledge management continually acquiring and sharing new knowledge and are willing to apply that knowledge in making decisions or performing works. Some organizational designs theorists even go so far as to say that an organization’s ability to do this-that is, to learn and to apply that learning as they perform the organization’s work may be the only sustainable source of competitive advantage.

In a Learning Organization, it is a critical for members to share information and collaborate on work activities throughout the entire organization, across different functional specialties and even at different organizational levels. This can be done by minimizing or eliminating the existing structural and physical boundaries. In this type of boundaryless environment, employees are free to work together and collaborate in doing the organizations work the best way they can and to learn from each other. Because of this need to collaborate, teams also tend to be an important feature of a learning organization’s structural design. Employees work in teams on whatever activities need to be done, and these employee teams are empowered to make decisions about doing their work or resolving issues.

With these empowered employees and teams, there’s little need for “bosses” to direct and control. Leadership plays an important role as an organization moves to become a learning organization. Leaders should facilitate the creation of a shred vision for the organization’s future and then keeping organizational members working towards that vision.

Also organizational culture is an important aspect of being a learning organization. A learning organization’s culture is one in which everyone agrees on a shared vision and everyone recognizes the inherent interrelationship among the organization’s process, activities, functions and external environment. In learning organizations, employees feel free to openly communicate, share, experiment, and learn without fear of criticism or punishment.

Learning can’t take place without information. For a learning organization to “learn”, information must be shared among members, that is organizational members must engage in knowledge management.

Company Overview – WATEEN Telecom

Mission Statement

To provide affordable communication services that meets and exceeds customers’ requirements

To deliver high-quality, flexible and innovative solutions those are cost effective and conducive

To provide complete customer satisfaction on time, every time

Vision

To introduce Wateen Telecom in the European and North American markets and provide the leading telecommunications international voice services through a world-class cutting- edge network to deliver a broad range of reliable, affordable and quality customer- centric services.

Corporate Values

Simplicity: Practical and easy-to-use

Satisfaction: Customer satisfaction is foremost

Quality: Premier services; no compromises

Innovation: Always at par with the latest technology

Honesty: Practice what we preach: integrity, ethics and open communication

Wateen’s Organizational Structure

As shown in Figure, Wateen’s organizational structure can be divided into 2 parts: one is Business Units where the sub-units are separated based on Product Departmentalization, and the Administrative Units are categorized based on Functional Departmentalization.

Business Units are the “money-making” departments or divisions that are directly involved with the products of the company; and the Administrative Units are the departments that coordinate Wateen’s daily business operation activities.

Within the Business Units, there are 8 sub-units:

• QCT (Wateen CDMA Technologies) develops and suppliers CDMA-based integrated circuits and system software for wireless voice and data communications, multimedia functions and global positioning system product.

• QTL (Wateen Technology Licensing) grants licenses to use Wateen’s intellectual property, including certain patent rights essential to or useful in the manufacturing, sale and use of CDMA-based products.

• QSI (Wateen Strategic Initiatives) makes strategic investments in ventures that focus on worldwide adoption of 3G wireless communications technologies (voice and data) and products serving consumers, the enterprise and all members of the wireless value chain such as wireless network operators, device and equipment manufacturers, and application and content providers.

• QIS (Wateen Internet Services) provides technology to support and accelerate the convergence of wireless data, Internet and voice services.

• QWBS (Wateen Wireless Business Solutions) provides companies around the globe with industry-leading mobility platforms, applications and services that accelerate business. These products serve a variety of industries, including transportation and logistics, third-party logistics, construction, petroleum, retail, food and beverage, and healthcare.

• QTV (Wateen Technology and Ventures) offers the MediaFLOâ„¢ system enabling wireless multimedia services and supports Wateen’s mission of enabling and fostering CDMA and wireless Internet markets through strategic investments in privately-owned start-up ventures.

• QGOV (Wateen Government Technologies) provides the Unites States government with secure wireless communications solutions using CDMA, Wimax and other Wateen technologies. Through government funded R&D, QGOV is creating leading-edge security technology with the development of the QSec®-2700, a 3G secure phone.

• QCTestâ„¢ and Deployment Products. Wateen’s focus is the creation of products that ultimately lower licensee and carrier operator costs while enabling the quickest deployment of the latest technology.

The Administrative Units consist of the following departments:

Human Resource Department

Marketing Department

Financial Department

Global Development Department

Those departments coordinate the company’s business operations worldwide and provide necessary resources to the production operations.

Conclusion

At first glance, Wateen seems to employ two types of traditional designs in its structure. One is Functional Structure that applies to its Administrative Units in which departmentalization is based on the function of the departments. The other is Divisional Structure which applies to its Business Units where each division’s teams are responsible for performance and have strategic and operational authority while the top management acts as an external overseer to coordinate and control the various divisions.

However, Wateen also demonstrates signs of Contemporary Organizational Design. By exhibiting the characteristics of a team structure, a design in which an organization is made up of teams that work toward a common goal, Wateen was able to provide expertise in every specific field. Also, characteristics of a Learning Organization are thrown into the mix. Wateen was named Organization of the Year by the American Society for Training and Development in 2000. By receiving this award, Wateen demonstrated that they are a company that builds on learning and development. This recognition highlights Wateen’s commitment to employee development and their focus on supporting learning with their overall business objectives.

Although Wateen does show some kind of traditional organizational design characteristics, their website states: “We encourage teamwork while reinforcing the importance of individuality to enhance our inclusive atmosphere and to leverage creativity. Despite our rapid growth, we work hard to avoid the chains of bureaucracy and retain our entrepreneurial, free- spirited culture,” which indicates that Wateen has evolved into a semi- contemporary organizational design.

QUESTION – 4:

Explain the skills required for management work and list according to their importance.

Preface

Ref#1 – Being a new manager-what a responsibility you have taken on! You may be thinking that the position sounded wonderful when it was offered, and now the reality has set in. You not only have a huge amount of work to accomplish, much more than you did as an individual contributor, but you have all these people who work in your new organization for whom you now have responsibility as well. Where do you start?

The best place to start is to learn how to utilize your direct reports so that you can achieve your necessary results through them. For without them, you will never be successful.

Whether you work for a non-profit, for-profit, educational institute or the government or own your own business and have employees in that business, the skills introduced in this book will help you to become a more effective manager. As an effective manager using these skills, your direct reports will become more motivated and capable and will help you to achieve your desired results.

Introduction

When incorporated into your day-to-day activities-allow you to improve your ability to manage your direct reports. To gain the greatest learning from this process, it is helpful to consider your current work situation, or the new position of manager to which you may aspire, and identify situations that you believe are or will be the most difficult for you to address. These situations might be specific interactions that have generated difficulty for you to achieve success such as letting a direct report know that he needs improvement in his communication with customers or knowing what, when, and to whom to delegate a project. It could even be an event that hasn’t yet occurred, but one in which you may anticipate some discomfort, such as delivering a final appraisal.

As you think of your own challenges, write them down on the chart on the following page and then prioritize them in order of importance to your success. In other words, list the most urgent, important, and difficult situations that you want to overcome.

Defining Your Role

As we consider the manager’s role in today’s business environment, it is important to put the subject into the context of what has happened-and is happening-in our world of work, because managers in today’s business world can’t simply emulate managers of the past and expect the same level of success. The manager’s role is more challenging today than in the past because of the numerous changes that are occurring in today’s world. These changes are more complex, more frequent, and more rapid than ever before. In this chapter, we will:

Review the business trends that have an impact on management efforts

Clarify the roles and responsibilities of manager

Identify what is needed to create the ”right” environment for success

Eight Management Skills of Effective Managers

1. Leader

The leader looks beyond the current day-to-day work requirements and determines where her organization needs to go. Leaders move their organizations forward by thinking strategically about the directions they need to take. They form relationships beyond the organization to build and maintain the reputation of the organization.

2. Director

The director is able to define a problem and take the initiative to determine a solution. Using planning and goal-setting skills, the director determines what to delegate and ensures that individuals understand what they are being asked to do.

3. Contributor

The contributor is expected to be task oriented and work focused, ensuring that his own personal productivity is attended to along with motivating others to be sure that their organization’s productivity is at its highest potential.

4. Coach

The coach is engaged in the development of people by creating a caring, empathetic orientation: being helpful, considerate, sensitive, approachable, open, and fair.

5. Facilitator

The facilitator fosters a collective effort for the organization, building cohesion and teamwork, and managing interpersonal conflict.

6. Observer

The observer pays attention to what is going on in the unit, determining if people are meeting their objectives, and watching to see that the unit is meeting its goals. The observer is also responsible for understanding what is important for the team to know and ensuring that information overload does not occur.

7. Innovator

The innovator facilitates adaptation and change, paying attention to the changing environment, identifying trends impacting the organization, and, then, determining needed changes for the success of the organization.

8. Organizer

The organizer takes responsibility for planning work, organizing tasks and structures, and then following up to ensure that what is committed to is completed by attending to technological needs, staff coordination, crisis handling, and so forth.

Management roles by Henry Mintzberg and h

Ref#2 – The main functions of the management are:

Planning

Organizing

Controlling

Leading

Planning:

Specifying goals to be achieved and preparing how to meet them analyzing current situation, gathering and analyzing information

Organizing:

Devising and allocating roles for respective position within the managers scope of work obtaining and allocating resources delegation – assigning duties and responsibility to subordinates for results defining the roles and authority of personal

Leading:

Motivating people to high performance, directing and communicating with people assisting and inspire then toward achieving team and organizational goals

Controlling:

Set and monitor performance the standard of progress toward goals indentifying performance problems by comparing data against standards.