HRM60016 - BEHAVIOUR IN ORGANISATION Week 04 Structure and Alternative forms of Organization
Organisation Designs: · Simple Structure is a structure characterised by a low degree of departmentalisation, wide span of control, authority centralise in a single person and little formalisation · Bureaucracy is a structure of highly operating routine tasks that are achieved through specialisation that is very formalised rules and regulations, tasks that are being grouped into functional departments centralised authority, narrow spans of control and decision making that follows the chain of command o Bureaucracy is designed to install rationality and eliminate emotionality · Matrix structure: A structure that creates dual lines of authority and combines functional and product departmentalization The characteristics of bureaucracy according to Weber: · There are 6 main characteristics which are: o There is the principle of fixed and official areas of administration which are usually ordered by rules or regulations o It involves hierarchy which means that there is a firmly ordered system where those in lower office are under the command of those in higher office o The management of the office is based upon written documents which are preserved in their original form. The officials of the office materials and the files make up the bureau or office o Specialised office management presupposes thorough and expert training o When the office is fully developed officially actively demands the full working capacity of the official o The management of the office follows general rules that can be learnt Advantages of bureaucracy: · There are 10 main advantages: o Precision o Speed o Lack of ambiguity o Knowledge of the files o Continuity o Discretion o Unity and uniformity o Strict subordination
o Reduction of friction and of material and personal const o There are calculable rules so there is a calculability of consequences Bureaucracy organisational, order and efficiency: . ... as matters of rational, non-emotional activity; the idea that cool, clear strategic thinking should not be tarnished by messy feelings." · Business is discharged 'without regard for persons' (Weber 1978:226); the division of labour in administration is put into practise according to purely objective criteria. All love, hatred and purely personal, irrational, and emotional sentiments are excluded. Changing nature of the organisation: · Max Weber's bureaucracy o Organisations in which people discharge from functions according to rules o Work order and tasks are determined by structure and roles rather than negogiated o Status provides legitimacy and authority · Bureaucracy divides people from process · It can be viewed as the iron cage . Think back to the Clip about Ritzer McDonaldization of Society · Virtual Organisations: o A small, core organisation that outsources its major business functions that is highly centralised with little or no departmentalisation · Provides maximum flexibility while concentrating on what the organisation does best · Reduced control over key parts of the business Aspects of McDonaldization: · There are many aspects to consider which are known as: o Efficiency o Calculability o Predicitability · Predictable, standardized settings