Organizational culture - Assignment Example

? HR Case Study Teacher’s ID Task Organizational culture refers to an environment that exists in every organizationand set of shared values and implicit assumptions attached to it. These assumptions further govern how individuals functioning in that environment would perceive input of information and react to it. The culture itself is a by-product of observable artefacts and espoused values. There are four types of organizational culture that are given below: 1) Clan culture: this form of organizational culture represents a family like culture in which flexibility is visible whereas employee satisfaction through development of consensus and employee involvement is considered as an important attribute of organizational management. Where such culture is conducive for employee’s job satisfaction and general motivation, there are also inherent risks of lack of diversity since only homogenous employees will thrive in such culture. Furthermore, lack of leaders’ authority and abuse of flexibility is also some of its disadvantages. 2) Adhocracy culture: flexibility is valued in this type of culture but with an external focus on development and growth by presenting innovative products and services. Some of the key elements of this culture are adaptability, creativity with quick response to market challenges and opportunities and less centralised power. Although such culture shows less formalization of processes whereas its unpredictability favours creativity, there are probabilities that such organizations rely heavily on new technology, unnecessary involvement of too many employees and reduced employee’ accountability and risk management (Kinicki and Kreitner, 2012). 3) Market Culture: this type of culture focuses mainly on growth and competition, building organization over the phenomena of control. Such organizations are result-oriented with more attention paid to customers and profits instead of employee’s satisfaction. The major advantage of this culture is higher profits and better results i.e. revenues and employee efficiency however it may ignore employees’ needs, job satisfaction and their welfare. 4) Hierarchy Culture: this culture has formalized procedures with defined roles and responsibilities; internal focus and higher managerial controls are some of its basic traits. Such culture is predictable and has extensive risk management. However, this culture may lack innovative vibe since all the authorities rest with few individuals. Furthermore, employees may find it unnecessary to collaborate and compete within each other for controls (Kinicki and Kreitner, 2012). There are also various types of organization structures that are bureaucratic, functional and divisional or matrix structure. In bureaucratic model, organizations have strict hierarchies and central controls. In functional structure, organizations are divided into segments that have different functions such as marketing, HR, finance, administration etc. On the other hand, divisional structure results in many independently working departments with their own resources and they operate independently. Such division can be due to different geographic location, products and services etc. In a matrix organization, employees are utilized on the basis of their functions and use intended i.e. product or service. Hence, teams can be formed by involving members of different departments but are assigned with common goals. In the given case studies, City College has a functional model while Enterprise follows divisional model. City College is a single entity present on one location and providing education to students therefore dividing it into several departments functionally is appropriate for organizational effectiveness. However, such strict definition of roles and responsibilities may make it difficult for departments to collaborate and it may result in lengthy processes and procedures followed by unnecessary communication and transfer of responsibility in emergencies. On the other hand, Enterprise has a divisional model with every division having sufficient autonomy and accountability. Although such model gives Enterprise managers to be responsible for their own branches only which maximises their efforts and focus however unnecessary rivalry may build up in divisions and managers may refuse to collaborate and share their resources in urgency; also improvisation and cost effectiveness is difficult in such culture. Task 2 Organizational culture and structure are interrelated variables that have a direct impact on organizational performance. Hence structural definitions describe internal characteristics, culture describes the contextual dimension of an organization. It can be said that structure defines roles and authority of managers within and organization and also how they will interact with each other under its influence where culture refers to organizational norms and values that affect general behaviour. In reality, organizations adopt a structure that conforms to their values, mission and vision. Such structures depict management’s philosophy and work ethics of an organization. If an organization has a strict hierarchical organizational structure, it is more like to have greater centralised controls (Hall and Tolbert, 2005). On the other hand, decentralised authority and control would be more suitable in a flexible culture where people are given responsibility to meet with authority. Hence, allocation of power and responsibility defines organizational culture, which affects employees’ performance in turn. This interrelationship between two variables also manifests itself in organizational performance as well. This is so because organizational performance is directly affected by employees’ performance whereas culture also acts as a source of control mechanism for fostering desired behaviour. In the given case study of City College, it can be seen that the college has market culture with focus on altering organizational practices while responding to markets trends and needs of customers i.e. students as stated in its mission statement which indicates responsiveness, reliability and understanding learners’ needs to be the primary factors affecting corporate objectives (Hall and Tolbert, 2005). All these values are well reflected in the practices of City College. It has departments with defined span of control and authority and they are required to follow four fundamental values in their service delivery. In such organizations, processes and procedures are defined along with objectives. The structure followed by City College is functional in nature with departments attempting to achieve organizational objectives (Hall and Tolbert, 2005). HR department is responsible for recruiting people that are organization-fit and are trained later on to adopt these organizational values; it also facilitates them during their job performance. Administration department takes care of daily operations while dealing with students and other staff. On the other hand, marketing is responsible for internal communication regarding market intelligence and its transformation into business objectives and also creating brand image of college among potential customers. On the basis of task in hand, employees from different departments work in close liaison whenever required. It can be seen that work model and business objectives of City College require a collaborated effort for making City College’s name synonymous to quality adult education. Such market-oriented approach requires all the functions to direct its efforts to attracting and retaining potential customers and employees while functioning individually and collaboratively. Task 3 Behaviour refers to explicit display of one’s attitudes, values, principles and norms. Behaviour in organizational settings can be defined as the way individuals behave in a group setting. Attitudes and behaviour of employees at workplace is affected by several factors. These factors include organizational culture and structure as organizational mechanisms, group mechanism (organizational leadership, team processes and communication) and individual characteristics of employees (ability and personality). All these mechanisms cumulatively have a tendency of affecting employees’ motivation job satisfaction, basic ethics, learning and decision making which is further reflected in their performance and organizational commitment (Colquitt, Lepine and Wesson, 2012). Various theories like Maslow’s hierarchy of needs, Herzberg factors, McGregor’s X and Y theory, expectancy theory and equity theory, have provided the rationale behind individual mechanisms being affected by organizational factors and affecting their behaviour accordingly. Considering example of City College, it is evident that organizational culture and structure plays a vital role in defining its behaviour. The culture is influenced by management’s philosophy of putting customers first and attaining a status of being primary service provider in education sector. Due to this culture, every function of an organization has certain defined procedures that are intended to achieve target of catering the customer. Taking example of teaching department, it is well equipped to provide quality adult education to a diverse community whereas HR department is not only responsible for hiring potential talent but also making them well versed with management’ vision. Efforts are also made to retain this talent so that services are provided to students without interruption. For facilitating all the departments and students enrolled at City College, administration department has its own tasks and processes. On the other hand, marketing department builds good will of the college through various marketing tools like social media, marketing activities etc. A well-orchestrated effort of these departments is responsible for providing desired service level. It is important to note that higher focus on customer’s satisfaction and acquiring a competitive edge has made employees a secondary priority of management. HR department is aimed at inducting and retaining talent through conducive work environment, training, and career progression however there is limited opportunity given to employees for airing their opinions as major controls are retained by organizational leadership. There are also not many opportunities for professional growth and development visible in current organizational model and not many facilities, perks and benefits are offered by City College. It is evident that City College is a well-organized structure with everyone having defined role and authority (Colquitt, Lepine and Wesson, 2012). However, there is limited room for employees’ opinions and management is aimed at providing quality education by having formalised processes and procedures instead of keeping its employees motivated and satisfied. Task-4 There are several leadership theories that have different approaches towards roles and characteristics of leaders in organizational settings. These theories include Great Man theories, trait theories, contingency, situational, behavioural, participative, management and relationship theories. Out of these theories, Great man and trait theories assumed that leaders are born not made. Certain characteristics e.g. charisma, perseverance, intelligence, knowledge and communication, of leaders make them different from average individuals. Unlike these theories, behavioural theories assume that leaders can be made and effective leadership is dependent on learnable and definable behaviour. Hence, leadership can be learned. Behavioural theories have described autocratic, democratic and laissez-faire to be some of the leadership styles. Where above mentioned theories have considered personal attributes to be the criteria for effective leadership, contingency theories i.e. situational leadership theory, path-goal theory and Fiedler’s contingency model, have paid more attention to context and situation in which a leader operates. Participative leadership considers involving other stakeholders in decision-making process to be to be the criteria for effective leadership whereas transactional leadership considers system of rewards and punishment and its suitable use to be a key factor behind success of leadership. Lastly, transformational leadership considers ability to inspire and creating enthusiasm to be effective way of managing people (Northouse, 2003). There are also several management theories that have different treatment for managers and labour. The classical approach i.e. Bureaucracy and scientific management, considers formal structure, defined hierarchy and common principles to be definition of successful management approach (Cole and Kelly, 2011). Another management approach is called human relations approach. Human relations approach pays greater attention to social factors like work, teams, leadership, in-formalization and behaviour of people. This approach was further upgraded by including consideration for personal needs of employees, the effects of group relationships and leadership styles. Where classic and human approaches are at two extremes of spectrum, a midway is offered by systems’ approach (Cole and Kelly, 2011). This approach considers organization, interrelationships of structure and behaviour and other variables existing in an organization while making management decisions. Lastly, a contingency model states that there is no best way of managing an organization and situational factors are required to be considered for devising organization structure and system of management. A critical analysis of City College and Enterprise indicates that they both follow bureaucratic and democratic leadership styles respectively. City College has a centralised hierarchy and a functional organizational structure that requires major decision making to rest with the management. Management considers changing policies and procedures periodically after taking input from different departments, however employees are not made part of resulting decision making process. Such leadership style is effective for City College since major controls rest with single authority, which is useful for ensuring that all the employees adhere to mission and vision on which City College is built. On the other hand, Enterprise follows a democratic or participative leadership style. Here, leaders are supposed to make final decisions however inputs of employees are considered while doing so. In routine activities, employees are given authority to make decisions that can enhance quality level of customer’s service. This leadership style suits organizational culture and structure of Enterprise as presence in many geographic locations would have made it very difficult for management to control. Empowering managers helps in effective organizational management while adhering to basic organizational values. Task-5 Analysing case studies of Enterprise and City College helps in understanding that they follow human relations approach and systems approach respectively (Cole and Kelly, 2011). Enterprise pays greater attention to providing opportunity as well as authority to its workforce and appreciates inputs from its employees while rewarding them appropriately and making attempts to enhance their organizational loyalty. Although at some instances solely senior management makes decisions however they are isolated major events made in the light of information shared by junior managers and other workforce. It is also seen that Enterprise also shows several traits of contingency approach as managers are given authority to exercise their own management styles according to circumstances however motivating employees and creating circumstances that would keep them satisfied lies in the core of business objectives (Cole and Kelly, 2011). In case of Enterprise, behavioural and situational leadership applies more appropriately (Northouse, 2003). Enterprise believes that although leadership can be a natural ability (which is why it seeks to recruit leaders) however this capability can also be learned. The managers have more independence when it comes to selecting their own leadership styles. The culture of this organization generally supports open-door policy where senior managers are accessible by other employees. However, as far as decision making is concerned, some decisions are made with the consent of employees whereas others are made solely by senior management dependent on the nature of agenda in hand and the ability of followers. In addition to that, managers also alter the way they treat employees. Sometimes it is authoritarian (for critical and new tasks) and sometimes it’s participative or delegated. Hence, it is the circumstances that decide what leadership would be more appropriate while managers are also free to exercise their natural leadership styles. On the other hand, City College perceives its organization as a whole by following systems theory (Cole and Kelly, 2011). City college views its departments to be interrelated parts of single body that interact with external environment and then make internal changes cumulatively in response to that change. For example, marketing department creates a brand image to attract more students. More students would require better faculty and other teaching resources along with making infrastructural changes that would involve HR and administration department. Furthermore, such changes would require financial inflow and outflow that also enhances role of finance department. Hence, City College is a synergetic model of different departments that are interdependent and interconnected. City College has opted for bureaucratic leadership style where rules and regulations, roles and rewards are well defined (Northouse, 2003). Such clarity supports its organizational structure and allows it to operate in the form of well-orchestrated machinery where departments and managers are aware of their roles and management’s expectations. References Colquitt, J.A., Lepine, J.A., and Wesson, M.J., 2012. Organizational behavior: Improve Performance and Commitment in the Workplace. McGraw-Hill. Cole, G.A., and Kelly, P., 2011. Management Theory and Practice, 7th ed. Hampshire: Cengage Learning. Hall, R.H., and Tolbert, P.S., 2005. Organizations: Structures, Processes and Outcomes, 9th ed. Pearson Prentice Hall. Kinicki, A., and Kreitner, R., 2012. Organizational Behavior: Concepts, Skills & Practices, 10th ed. McGraw-Hill. Northouse, P.G., 2003. Leadership: Theory & Practice. CA: SAGE Publications. Read More