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Name : Ei Ei Zin
Module : Management & Organizational Behavior
Intake : 11
Course : Professional Diploma in Business Management
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Contents
1. Nature of Organizational Behavior ................................................................................................. 4
2. Effective Organizational Structure..................................................................................................... 4
2.(a). There are various types of organizational structure are following ................................................ 5
2.(a).1. Functional structure Advantages and Disadvantages ................................................................. 5
2.(a).2. Divisional Structure Advantages and Disadvantages ................................................................. 5
2.(a).3. Matrix Structure Advantages and Disadvantages ....................................................................... 6
2.(a).4. Horizontally-Linked Structure Advantages and Disadvantages ................................................. 6
2.(b). Consequences of poor organizational structure ............................................................................. 6
2. (b). 1. Slow Decision Making ............................................................................................................. 7
2. (b). 2. Lines of Communication Unclear ............................................................................................ 7
2. (b). 3. Unequal Workload ................................................................................................................... 7
2. (b). 4. Low Productivity ...................................................................................................................... 7
3. Decision Making Process and Decision Making Style ....................................................................... 7
4. Different Characteristics Between Manager and Leader .................................................................... 9
Discuss leadership style and suggest suitable leadership theory for the development of your
organization............................................................................................................................................. 9
Leadership Styles .................................................................................................................................... 9
Autocratic Leadership Style .................................................................................................................... 9
Bureaucratic Leadership Style .............................................................................................................. 10
Charismatic Leadership Style ............................................................................................................... 10
Democratic Leadership Style ................................................................................................................ 10
Transactional Leadership Style ............................................................................................................. 10
Leadership Theory ................................................................................................................................ 10
"Great Man" Theory.............................................................................................................................. 11
Trait Theory .......................................................................................................................................... 11
Behavioural Theory .............................................................................................................................. 11
Participative Theory .............................................................................................................................. 11
Transactional Theory ............................................................................................................................ 11
Skills Theory ......................................................................................................................................... 11
6. Discuss the importance of planning and types of plan. ..................................................................... 12
6.1. Efficient Use of Resources............................................................................................................. 12
6.2. Establishing Goals ......................................................................................................................... 12
6.3. Managing Risk and Uncertainty .................................................................................................... 12
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6.4. Team Building ............................................................................................................................... 13
Discuss the advantageous and disadvantageous of management by objective (MBO). ....................... 13
References ............................................................................................................................................ 15
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1. Nature of Organizational Behavior

Organizational Behavior is the study of individual performance and activity within an
organization. The human behavior in a work environment and determines its impact on job
structure, performance , communication, motivation and leadership, etc. Organizational
Behavior draws from other disciplines to create a unique field. When I study power and
influence in organizations, we borrow heavily from political sciences. How I understand the
organizational Behavior is to build better relationships by achieving human objectives,
organizational objectives and social objectives. Organizational Behavior is concerned with
the people do in organization and how behavior affects the performance of organization.
There is the focus effectiveness of organizational behavior are following.

1. Organizational Culture
2. Leadership and Conflict Resolution
3. Motivation
4. Power
5. Interpersonal Communication
6. Group structure and processes
7. Attitude development
8. Perception
9. Change process
10. Work design & work stress
11. Understanding the employees better
12. Understanding How to develop a good team

The organizational behavior take affect utilization of people working in the guarantees
success goal of the organization. Even the managers to understand the basics of motivation
and what should do to motivate subordinates. Finally my is organizational behavior has a
great impact individuals. To run the businesses affectively and efficiently , organizational
behavior is very essential.

2. Effective Organizational Structure
“Organizational structure is the manner in organizations are inter-related and grouped. A
main advantage of an effective organizational structure is that it reduces conflict between
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employees regarding who is to carry out certain jobs in the organization. Organizational
structure facilitates division of work since each boss had specialized knowledge on his field
of work. He has better and accurate knowledge to guide his subordinates. Resources are very
scarce, it should be utilized effectively by eliminating unnecessary. Organizational structure
clearly provides who reports to whom. Organizational structure clearly show several jobs to
be performed by employees and supervisor will manage them. Supervisors punish and reward
where necessary and helps the employees learn from their own experiences. In such way,
supervisors are role models to their subordinates (Gabrielle, 2005)”.

2.(a). There are various types of organizational structure are following
1. Functional structure
2. Divisional structure
3. Matrix structure
4. Horizontally Linked structure

“Especially large company use more than one type of structure. For example the sales
department may use a functional structure while the research and development department
uses a matrix structure. Companies have to change organizational structure over time
according the size and business goals.

2.(a).1. Functional structure Advantages and Disadvantages
Most of decision-making occurs at the top levels of management. That upper management
can complete control over the organization. It also provides a clear career way for employees
from junior-level positions up to the top decision-making positions. A functional structure
provides stability and efficiency in large and complex organizations because anyone use
similar processes. That is the one of advantage for large businesses. This functional structure
may also lead to poor communication between departments situations which departments do
not work together and inter-departmental conflict. Customers can also become frustrated by
lack of cooperation if they need to work with more than one department.

2.(a).2. Divisional Structure Advantages and Disadvantages
Divisions are organized by product live or marketing area and several division, includes
people from each area of the business. Even account department, sales department, research
and development department and human resources department all of whom report to the
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division head. That is allowed the company to respond quickly to customer needs and helps
more employees develop managerial skills.

2.(a).3. Matrix Structure Advantages and Disadvantages
Matrix structure has no chain of command. Employees work in organization, which they
develop and organize. Employees may change organization to work in areas where they are
needed or interested in working. This works very well in smaller organizations and in those
businesses where resources and specialist employees are scarce as anyone is kept busy and
can be around to where they are most needed. That structure increases employee skills and
involvement but can lead to employee confusion and frustration because lines of reporting are
unclear. It can also be difficult to set priorities when employees are moving between
completing projects.

2.(a).4. Horizontally-Linked Structure Advantages and Disadvantages
This structure is primarily found in the IT and high-tech sectors. In this structure, employees
are grouped by function into three areas-planning, building and running. The planning
department is responsible for developing new projects and may include employees from
research , development and finance. This allows the company to respond quickly to change
market conditions and technological advances but may not work as well for companies that
produce products with a longer lifespan, or for service industries” (Lisa, 2005).

2.(b). Consequences of poor organizational structure
“The organizational structure of business is the framework that facilitates communication and
efficient work processes. While business problems emerge, signs exist within the design or
components of the organizational structure. In such cases, that signs can be early indicates or
significant problems before causing financial disruption in the company. The consequences
of poor organizational structure are following

1. Slow Decision Making
2. Lines of communication Unclear
3. Unequal Workload
4. Low Productivity
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2. (b). 1. Slow Decision Making
Slow decision may hamper sales and innovation. If organizational structure can not optimize
to direct decision making authority to the appropriate person. A learner or departmental
decision-making process may be needed to foster an innovative spirit in the business.

2. (b). 2. Lines of Communication Unclear
Employees routinely by passing the standard chain of command in a company would be a
sign of poor organizational design. In our working field, our staffs with compaints or
suggestion are typically provide feedback to our department manager. Now, my working field
is like kind of poor organization, employees are feeling the need to go directly to a vice
precident.

2. (b). 3. Unequal Workload
Our organization are causing an unequal distribution of work between staffs and manager.
Our company is routinely understand and work overtime to meet workload requirements,
some other parts struggle to find sufficient work to keep every employee busy. So, the
organizational structure didn’t optimize for business goal.

2. (b). 4. Low Productivity
Productivity is a key matrix for almost every business low productivity levels can indicate a
problem in an organization’s structure. Through inefficient resource allocation poor
communication and employee empowerment constraints. Employees couldn’t have the proper
environment to complete in an efficient manner” (Laura, 2017).

3. Decision Making Process and Decision Making Style
We make decision everyday. Decision making is depend on working field and company. In
my working field, my company is service company. I am also one of leader of my company.
We are renting the cars and drivers who drives for customers. We have so many customers
about 70 customers. There is 15 persons including my junior under of my leading. I lead and
talk on phone on them. We can meet face to face each other one time per month. In our
working field, customers service is the main point. If customers not satisfied on our service,
even the small things, we have so many lost belief from our customers. Sometimes, we have
some trouble case. For example:(That is truly problem) Our driver have to pick up the
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customer at early morning 4 o’clock. On that day, the customer has appointment with his
important guest to play the golf. The driver is going to customer about 3 o’clock but the car is
suddenly stop on the way to customer. The driver call to me, how should I do? I decided to
go to customers with another car. And also I told the driver to come to the customer’s condo.
I and driver met at the condo and release the car to him and I wait the customer to report our
situation and apologized. In afternoon, the car had finished repairing and change back to
customer. In other day, I never hope thing come to me. Two companies come to our company
to rent a car by my name because that customer introduce to them about our company. He
likes and satisfy service. I think, that is due to my decision and quickly information of my
driver. My boss also eulogized to me. This is especially impact in my work life.

Decision making is the process of making choices by identifying decision, gathering
information and alternative resolutions. If used a step by step decision making process can
help to make more deliberate, thoughtful decisions by organizing relevant information and
defining alternatives. This approach increase the chances that will choose the most satisfying
alternative possible.

There are 7 steps of decision making

1. Identifying the Decision
2. Gather Relevant Information
3. Identify the Alternative
4. Weigh the Evidence
5. Choose Among Alternative
6. Take Action
7. Review Decision and Its Consequences

I know four types of decision making style are following

1. Team Decision
2. Consultative Decision
3. Delegating Decision
4. Autocratic Decision

Among these four decision making styles, I prefer Team and Consultative decision making
style because sometime leader made bad decision by making autocratic decision without
involving others. I don’t like to make decision on my own without input from my team.
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According above our case, I used team and consultative decision making. I already trained
and told them, I appreciate all of your suggestion and information of my team. I will never do
the decision by myself except the emergency case.

4. Different Characteristics Between Manager and Leader
“When we are promoted into a role where we are managing people, we don’t automatically
become a leader. These are important distinctions between manager and leader. Leaders are
willing to try new things even if often a step on the path to success. Managers work to minize
risk. They try to avoid or control problems rather than embracing them” (William, 2016). I
understand different characteristics between being a leader and a manager are following

1. Leader create a vision, managers create goals
2. Leaders are change agents, managers maintain the status
3. Leaders are unique , managers copy
4. Leaders take risks, managers control risks
5. Leaders are in it for the long-haul, managers think short-term
6. Leaders grow personally, managers rely on existing, proven skills
7. Leaders build relationships managers build system and processes
8. Leaders coach, manager direct
9. Leaders create fans, managers have employees

Discuss leadership style and suggest suitable leadership theory for the development of
your organization.

Leadership Styles
Leadership style focuses specifically on the traits and behaviours of leaders. Leadership
theory is a discipline that focuses on finding out what makes successful leaders excel in what
they do. In other words, leadership style is one of many examples covered with leadership
theory. There are some leadership styles that primarily we can learn it through as below.

Autocratic Leadership Style
Autocratic leadership is best used in crises situation, when decisions must be made quickly
and without dissent which also is an extreme form of transactional leadership, where leaders
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have complete power over staff. Decisions are made quickly, and the work to implement
those decisions can begin immediately. In terms of disadvantages, most staff resent being
dealt with in this way.

Bureaucratic Leadership Style
Bureaucratic leaders follow rules rigorously, and ensure that their staff also follow
procedures precisely. This is an appropriate leadership style for work involving serious safety
risks.

Charismatic Leadership Style
Charismatic leadership style often called a transformational leadership style, charismatic
leaders inspire eagerness in their teams and are energetic in motivating employees to move
forward. This can create the risk of a project or even in an entire organization collapsing if
the leader leaves.

Democratic Leadership Style
This style also helps develop employees’ skills. Team members feel a part of something
larger and meaningful and so are motivated to by more than just a financial reward. The
danger of democratic leadership is that it can falter in situations where speed or efficiency is
essential.

Transactional Leadership Style
This leadership style starts with the idea that team members agree to obey their leader when
they accept a job. The transaction usually involves the organization paying team members in
return for their effort and compliance. The leader has a right to punish team members if their
work doesn't meet an appropriate standard.

Leadership Theory

There are as many different views of leadership as there are characteristic that
distinguish leaders from non-leaders. While most research today has shifted from traditional
trait or personality-based theories to a situation theory, which dictates that the situation in
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which leadership is exercised is determined by the leadership skills and characteristics of the
leader.

"Great Man" Theory
Great man theories assume that the capacity for leadership is inherent, that great leaders are
born, not made.

Trait Theory
This trait theory assumes that people inherit certain qualities or traits make them better suited
to leadership. Trait theories often identify particular personality or behavioural characteristics
that are shared by leaders.

Behavioural Theory
Behavioral theories of leadership are based on the belief that great leaders are made, not born.

Participative Theory
Participative leaders encourage participation and contributions from group members and help
group members to feel relevant and committed to the decision-making process.

Transactional Theory
Transactional theory focuses on the role of supervision, organization and group performance
and the exchanges that take place between leaders and followers. This theory base leadership
on a system of rewards and punishments.

Skills Theory
This theory states that learned knowledge, acquired skills and abilities are significant
factors in the practice of effective leadership. Skills theory by no means refuses to
acknowledge the connection between inherited traits and the capacity to lead effectively, but
argues that learned skills, a developed style, and acquired knowledge, are the real keys to
leadership performance.
As above we have learnt styles and theories of leadership, all cannot be applied for
my organization because we production companies importantly focus on the quality of the
products, and hence, bureaucratic leadership style only can control our products quality issues
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strictly to follow the rules and standard as our customers requested. Therefore,
Transformational leadership theory only can help my organization productivity to be
increased by motivating all levels of employees with fair which can build trust between
leaders and followers as well.

6. Discuss the importance of planning and types of plan.
In every organization, planning is the most important one that we should not ignore it because
it provides a framework within which a company can successfully grow, compete and react to
challenges. Planning helps an organization highly to be achieved of its goals. The process
begins with reviewing the current operations of the organization and identifying what needs
to be improved operationally in the upcoming month or year. From there, planning involves
envisioning the results the organization wants to achieve, and determining the steps necessary
to reach at the intended destination successfully with our satisfaction.

6.1. Efficient Use of Resources

Every organizations, whether it is large and small, we have limited resources. The planning
process provides the information top management needs to make effective decisions about
how to allocate the resources in a way that will enable the organization to reach its objectives.
Productivity is maximized and maintain resources not to be wasted on projects with little
availability and success.

6.2. Establishing Goals

In the organization, setting the goal is one of the key for planning process to do with better
performance. Goals must be aggressive, but realistic. We people will never be satisfied with
how we are currently doing. The benefit of goal setting comes when forecast results are
compared to actual results. Organizations analyze significant variances from forecast and take
action to remedy situations where revenues were lower than plan or expenses higher.

6.3. Managing Risk and Uncertainty

Managing risk is essential to an organization’s success. Even the largest corporations cannot
control the economic and competitive environment around us. Planning encourages the
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development to envision possible risk factors. The changes in business is rapid, so we must
be able to rapidly adjust our strategies to these changing conditions.

6.4. Team Building

When the plan is completed, we have to form team because without team members the plan
cannot be performed or accomplished our goals as well. Hence, we need to communicate to
our team members and tell them what their responsibilities are, and how other areas of the
organization need their assistance and expertise in order to complete assigned tasks.

Discuss the advantageous and disadvantageous of management by objective (MBO).
Management by objectives is the method of describing precise objectives within a
business that management can deliver to organization participants, then determining on how
to succeed each objective in arrangement. One process utilized by a number of organizations
to smooth the linking of goals and plans is management by objective. This process allows
managers to take perform that needs to be accomplished one step at a time, nevertheless
productive work environment. This practice also supports organization participants to realize
their attainments as they achieve each objective, which increases a positive production
environment and an awareness of achievement (Mio, Chiara, 2017). A main part of MBO is
the measurement and assessment of an employee's real performance with the standards set. If
possible, when workforces themselves have been interested with the goal-setting and taking
the course of action to be followed by them, they are more liable to realize their
responsibilities.
The main view of MBO is planning, which point out that an organization and its members are
not simply reacting to occasions and struggles but are instead being proactive. MBO is an
overseen and controlled activity so that all of the individual goals can be harmonized to work
towards the overall organizational goal. Goals are set down in writing annually and are
repeatedly supervised by managers to check progress.
Advantages: MBO provides a means to recognize and strategy for the attainment of goals. It
creates individuals more alert of the organizational goals. Most often the subordinates are
affected with their own objectives and the environment nearby them. But with MBO, the
subordinates feel self-important of being comprised in the organizational goals. This develops
their self-confidence and commitment. MBO often focuses the area in which the workforces
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require further training, heading to career development. It improves communication between
management and subordinates.
Disadvantages: The weight is more on short-range goals. Meanwhile the goals are mostly
variable in nature, it is challenging to do long-term planning because all the variables
influencing the process of planning cannot be perfectly forecast because of the frequently
changing socioeconomic and technological environment which alter the constancy of goals.
The organization often neglects to take into account environmental factors that hold back
goal achievement, such as lack of resources or management support. Most managers may not
be adequately skilled in interpersonal interaction, such as training and advising, which is
extremely mandatory.
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References
Gabrielle, B. (2005). www.smallbusiness.chron.com/advantages-eff. Retrieved February 23, 2018,
from www.smallbusiness.chron.com/advantages-eff:
http://smallbusiness.chron.com/advantages-eff

Laura, A. (2017, September 16). www.bizfluent.com/list-5958602-signs-poor-organizational-
structure.html. Retrieved February 23, 2018, from www.bizfluent.com/list-5958602-signs-
poor-organizational-structure.html: https://bizfluent.com/list-5958602-signs-poor-
organizational-structure.html

Lisa, M. (2005). www.smallbusiness.chron.com/advantages-disadvantages-structure-organization-
2767.htm. Retrieved February 23, 2018, from www.smallbusiness.chron.com/advantages-
disadvantages-structure-organization-2767.htm:
http://smallbusiness.chron.com/advantages-disadvantages-structure-organization-2767.htm

Mio, Chiara. (2017, 11 30). Management by objectives. Retrieved from Wikipedia:
https://en.wikipedia.org/wiki/Management_by_objectives#cite_note-2

William, A. (2016, November 15). www.forbes.com/sites/williamarruda/2016/11/15/9-differences-
between-being-a-leader-and-a-manager. Retrieved February 24, 2018, from
www.forbes.com/sites/williamarruda/2016/11/15/9-differences-between-being-a-leader-
and-a-manager: https://www.forbes.com/sites/williamarruda/2016/11/15/9-differences-
between-being-a-leader-and-a-manager