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INTRODUCTION

Todays business is characterized by rapid


technological developments, intensified terms of competition and selfchanging values. Organisations can only remain competitive in this dynamic
field if they change. Therefore, a systematic interaction of both
organisational learning and knowledge known as knowledge management
has become an important matter for organisations. It seems that the existing
structures and prevailing organisation cultures, in particular, have an
essential influence on the success of these efforts. This article shows that
organisational learning can be undertaken in a deliberate way and that
people play a leading part in this process. A case study illustrates and
improves the theoretical comments and gives a lot of tips for real use.
Definition
Reference for Business defines an organizational structure as
the way that an organization arranges people and jobs so that its work can
be performed and its goals can be met. Small groups can make decisions
democratically and be productive in an unstructured arena, but larger groups must
delegate authority and jobs in order to run efficiently. Different sized organizations
with differing goals and a continual need to increase productivity gave rise to a
plethora of structure types.

Significance And Function


Organizational structure defines to character of an organization: how it thinks
and how it will react. As a business grows, employee responsibilities detach from
specific people, and are instead, assigned to specific positions or departments
regardless of who holds that job. The relationship between all these different
positions, their departments and the hierarchical management structure make up
your organization's structure.
Structural Components
Three main components comprise an organization's structure: complexity,
formalization and centralization. According to FAO Corporate Document Repository,
centralization refers to the degree to which activities within the organization are
differentiated. Differentiation can be horizontal: differences between departments
including education, training, tasks and members; vertical: the number of
management levels; and spatial: the geographical distribution of personnel and
facilities. Formalization describes how specialist each position is. The degree of
centralization shows how much of the decision-making and authority concentrates
in one place.

Organizational Principles
Organizational evolution shows four important principles:
specialization, coordination, departmentalization, and decentralization or
centralization. Specialization facilitates division of work into units for efficient
performance, reports FAO Corporate Document Repository. Coordination is the way
all specialized units and employees fit into a cohesive whole to reach company
goals. Departmentalization clusters different activities and job functions at the same
authority level. Decentralization is when lower levels of the hierarchy have decisionmaking authority, whereas centralization is when you group authority at higher
levels.
Structure Types
Structure comes in one of three types: classical, functional, divisional or matrix.
Classical structure is common with very small businesses, it is very centralized, has
few general functions and some specialists in critical positions as needed.
Functional organization divides employees into units based on job function and
succeeds in large companies that produce large amounts of low price products or
services. A step more complex, division structure takes functional units and divides
them into divisions that have their own resources and can function completely
independent of other divisions. Matrix organizations split their employees into
teams based on their function and the product or service they work with, and uses
each team to complete a specific task.
Focused Vision
Vision is a key trait of effective leadership and having a more centralized
structure keeps all levels of an organization focused on one vision or purpose. A
company president or executive team can establish and communicate its vision or
strategy to employees and keep all levels moving in the same direction. This
prevents potential inconsistency in vision and helps companies deliver a common
message to customers and communities.
Fast Execution
With fewer people involved in discussing and deciding on strategy and action,
centralized organizations typically react more quickly to a dynamic marketplace.
Leaders can gather information and efficiently discuss pros and cons of decisions in
a small group. This makes the communication and decision making process much
more efficient than in decentralized structures in which many local managers must
participate in the process. Once decisions are made, top managers send out
directives to lower levels for implementation as directed.

Reduced Conflict
When only one person or a small group at the top makes important decisions,
companies experience less conflict and dissent among lower to mid-level
employees. If many employees and levels in the organization get involved in
decisions, more potential exists for conflict and difference in implementation. With
top managers taking the responsibility of making and implementing critical
decisions, they insulate other managers and leaders from the burden of making
risky or unfavorable decisions. This is especially important to lower level manageremployee relationships.
Control and Accountability
When centralized leaders are in charge of all major decisions they retain more
control over operation of the company and development of its culture. Additionally,
little question exists over who is accountable for the results of those decisions. If the
company gets a bad price in a supplier negotiation, top managers know to turn to
the head buyer to get a sense of what went wrong. This accountability causes top
managers to drive each other to peak performance.

Objective Of Organisation Structure


Chain of Command
Organizational structures, among many things, help establish who is in charge or
what. They dictate how many vice presidents, department heads, managers and
project coordinators there are and what they oversee. Good organizational charts
illustrate who reports to whom so that everyone has a clear idea of how they are
held accountable. This helps employees know from whom to take direction, where
they fit in to the overall scope of an operation, and the scope and limitations of their
roles.
Efficiency
Everyone needs to understand their role in a company's operation to do their
part well. If two people perform unnecessarily overlapping tasks, the company is
wasting labor resources. If no one is handling a particular task because they don't
think it's within their role, the company faces another form of inefficiency.
Structures help to define departments, jobs and roles around the tasks and
functions the company needs executed. As companies grow, downsize or business
changes, they should periodically review their structures to make sure the
structures match their efficiency needs.

Uniformity And Controls


Some lines of business, such as banking and manufacturing, require require
tasks to be done regularly and precisely. Typically, these business require and do not
allow much if any variation in how their employees perform their jobs because the
requirements of the tasks are set. Therefore, their organizational structures tend to
be very vertical -- emphasizing limited scopes for employees at the bottom and
many layers of managerial oversight above them. Everyone has a very specific role.
Other organizations, such as advertising firms and innovative computer companies,
emphasize creativity and innovation in their businesses. They employ wide or
horizontal structures with many teams dedicated to different functions with more
autonomy and less oversight. The numerous departments may work on many
different tasks and are charged with driving the business. Therefore, there are fewer
layers of management and the organizational chart appears relatively horizontal.

NATURE AND SCOPE (FEATURES) OF ORGANIZATIONAL


BEHAVIOUR
Organizational behaviour has emerged as a separate field
of study. The nature it has acquired is identified as follows :

1. A Separate Field of Study and not a Discipline Only


By definition, a discipline is an accepted science that is based on a theoretical
foundation. But, O.B. has a multi-interdisciplinary orientation and is, thus, not
based on a specific theoretical background. Therefore, it is better reasonable to
call O.B. a separate field of study rather than a discipline only.

2. An Interdisciplinary Approach
Organizational behaviour is essentially an interdisciplinary approach to study
human behaviour at work. It tries to integrate the relevant knowledge drawn from
related disciplines like psychology, sociology and anthropology to make them
applicable for studying and analysing organizational behaviour.

3. An Applied Science

The very nature of O.B. is applied. What O.B. basically does is the application
of various researches to solve the organizational problems related to human
behaviour. The basic line of difference between pure science and O.B. is that
while the former concentrates of fundamental researches, the latter concentrates
on applied researches. O.B. involves both applied research and its application in
organizational analysis. Hence, O.B. can be called both science as well as art.

4. A Normative Science
Organizational Behaviour is a normative science also. While the positive
science discusses only cause effect relationship, O.B. prescribes how the
findings of applied researches can be applied to socially accepted organizational
goals. Thus, O.B. deals with what is accepted by individuals and society engaged
in an organization. Yes, it is not that O.B. is not normative at all. In fact, O.B. is
normative as well that is well underscored by the proliferation of management
theories.

5. A Humanistic and Optimistic Approach


Organizational Behaviour applies humanistic approach towards people
working in the organization. It, deals with the thinking and feeling of
human beings. O.B. is based on the belief that people have an innate
desire to be independent, creative and productive. It also realizes that
people working in the organization can and will actualize these potentials
if they are given proper conditions and environment. Environment affects
performance or workers working in an organization.

6. A Total System Approach


The system approach is one that integrates all the variables, affecting
organizational functioning. The systems approach has been developed by
the behavioural scientists to analyse human behaviour in view of his/her sociopsychological framework. Man's socio-psychological framework makes man a
complex one and the systems approach tries to study his/her complexity and find
solution to it.

Scope of Organizational Behaviour


The three internal organizational elements viz., people, technology and
structure and the fourth element, i.e., external social systems may be taken as the

scope of O.B.

1. People
The people constitute the internal social system of the organization. They
consist of individuals and groups. Groups may be large or small, formal or
informal, official or unofficial. They are dynamic. They form, change and disband.
Human organization changes everyday. Today, it is not the same as it was
yesterday. It may change further in the coming days. People are living, thinking
and feeling being who created the organization and try to achieve the objectives
and goals. Thus, organizations exist to serve the people and not the people exist
to serve the organization.

2. Structure
Structure defines the sole relationship of people in an organization. Different
people in an organization are given different roles and they have certain
relationship with others. It leads to division of labour so that people can perform
their duties or work to accomplish the organizational goal. Thus, everybody
cannot be an accountant or a clerk. Work is complex and different duties are to
be performed by different people. Some may be accountant, others may be
managers, clerks, peons or workers. All are so related to each other to
accomplish the goal in a co-ordinated manner. Thus, structure relates to power
and duties. One has the authority and others have a duty to obey him.

3. Technology
Technology imparts the physical and economic conditions within which people
work. With their bare hands people can do nothing so they are given assistance
of buildings, machines, tools, processes and resources. The nature of
technology depends very much on the nature of the organization and influences
the work or working conditions. Thus, technology brings effectiveness and at the
same restricts people in various ways.

4. Social System
Social system provides external environment which the organization operates.
A single organization cannot exist also. It is a part of the whole. One organization
cannot give everything and therefore, there are many other organizations. All
these organizations influence each other. It influences the attitudes of people,
their working conditions and above all provides competition for resources and
power.

O.B. is the study of human behaviour at work in organizations. Accordingly, the


scope of O.B. includes the study of individuals, groups and
organization/structure. Let us briefly reflect on what aspects each of these three
cover.

Individuals
Organizations are the associations of individuals. Individuals differ in many
respects. The study of individuals, therefore, includes aspects such as
personality, perception, attitudes, values, job satisfaction, learning and
motivation.

Groups of Individuals
Groups include aspects such as group dynamics,
communication, leadership, power and politics and the like.

group

conflicts,

CONCLUSIONS

Conclusions are also difficult to write. How do you manage to make the reader feel
persuaded by what you've said? Even if the points of your paper are strong, the overall effect of
your argument might fall to pieces if the paper as a whole is badly concluded.
Many students end their papers by simply summarizing what has come before. A summary
of what the reader has just read is important to the conclusion - particularly if your argument
has been complicated or has covered a lot of ground. But a good conclusion will do more. Just as
the introduction sought to place the paper in the larger, ongoing conversation about the topic, so
should the conclusion insist on returning the reader to that ongoing conversation, but with the
feeling that they have learned something more. You don't want your reader to finish your paper
and say, "So what?" Admittedly, writing a conclusion isn't easy to do.
Many of the strategies we've listed for improving your introductions can help you to improve
your conclusions as well. In your conclusion you might:
1.

Return to the ongoing conversation, emphasizing the importance of your own


contribution to it.

2.

Consider again the background information with which you began, and illustrate
how your argument has shed new light on that information.

3.

Return to the key terms and point out how your essay has added some new dimension
to their meanings.

4.

Use an anecdote or quotation that summarizes or reflects your main idea.

5.

Acknowledge your opponents - if only to emphasize that you've beaten them.

6.

Remember: language is especially important to a conclusion. Your goal in your final


sentences is to leave your ideas resounding in your reader's mind. Give her something to
think about. Make your language ring.

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