Professional Documents
Culture Documents
“Organization is a structural relationship by which an enterprise is bound together and the framework in
which individual effort is coordinated.”
Koontz and O’Donnell
2. What do you mean by Organising?
Organizing is the process of arranging people and other resources to work together to accomplish a goal.
3. What is Organization structure?
Organization structure is the system of tasks, workflows, reporting relationships, and communication
channels that link together diverse individuals and groups.
4. What do you mean by Chain of command?
Chain of command – the line of communication and authority from the top to the bottom of the
hierarchy
5. Hawthorne Experiments belongs to which management school?
The Hawthorne Experiments are associated with the Human Relations School of management. The
findings of the Hawthorne Experiments highlighted the significance of social and psychological factors in
the workplace and emphasized the importance of considering the human element in management
practices.
6. Who assume that managers create strategies congruent with the external environment?
The school of thought that assumes managers create strategies congruent with the external
environment is known as the Contingency School of management. The Contingency School suggests that
there is no universal or one-size-fits-all approach to management and that effective management
practices depend on the specific circumstances or contingencies of the external environment.
7. What do you mean by Organizational Effectiveness?
The concept of effectiveness is that the organization is able to achieve its objectives within the given
resources. Thus, for effectiveness, it is not only necessary that resources are put to the best of their
efficiency but also that they are put in a way which ensures their maximum contribution to
organizational objectives.
8. From Information-Sharing Perspective, what should be the Organisation’s Structure
Vertical and horizontal information flow
– Traditional organization designed for efficiency?
– Centralized authority focused on top level decision-making
– Learning organization which emphasizes communication and collaboration
– Decentralized authority focused on shared tasks and decisions
9. What are the causes of the decrease of an organization’s resources over time?
The decrease of an organization’s resources over time is caused by:
• Organizational atrophy
• Vulnerability
• Environmental decline or competition
10. What is Comparative Management?
• Comparative management analyzes the extent to which management principles are applicable from
one country to another.
• As the leader in the development of management principles is the United States, comparative
management seeks to determine the applicability of American know-how to foreign locales
11. Why Managers communicate?
Managers communicate to:
Coordinate
Disseminate information
Motivate people
Negotiate future plans
A clear structure makes it easier to see which part of the business does what.
An organisational structure is the way in which a business is arranged to carry out its activities.
• Combines functional and divisional structures to gain advantages and minimize disadvantages of each.
• Used in:
Manufacturing
Service industries
Professional fields
Non-profit sector
Multi-national corporations
1) Both Product division and functional structure (Horizontal and vertical) are implemented
simultaneously.
2) Multi-focused with strong horizontal linkage
3) Conditions for Matrix:
a) Share resources across the organization
b) Two or more critical outputs required: products innovation and technical knowledge
c) Environment is complex and uncertain
4) Allows organization to meet dual demands
5) Largest weakness is that employees have two bosses and conflicting demands
4. Compare Formal Structures with Functional Structures.
• Universal Principle:
– No universal principles of management can be applied in all situations
• Open Systems Planning:
– Each organization has its own unique set of technical, human, and market inputs
• Formal Design of Organizations
– Routine industries need hierarchy, Complex industries need matrices
• Leadership Style
– Has to be situational
6. Write down the basic premises of Systems Theory.
• Subsystems include:
– Task/Technological subsystem
• Basic work of organization
– Administrative/Structural Subsystem
• Formal organization
– Subsystem of Individuals
• Their knowledge, skills, attitudes, values, expectations, perceptions
– Emergent Subsystem
• Implicit arrangements, group forming
Cost leadership is a strategy focused on achieving a competitive advantage by being the lowest-cost
producer in the industry while maintaining acceptable quality.
It involves minimizing costs through operational efficiency, economies of scale, supply chain
management, and product simplification.
8. Write down the historical opinions of FREDERICK TAYLOR, ELTON MAYO and HENRI FAYOL about
organizational effectiveness
FREDERICK TAYLOR
EFFECTIVENESS IS DETERMINED BY FACTORS SUCH AS :
• PRODUCTION MAXIMIZATION
• COST MINIMISATION
• TECHNOLOGICAL EXCELLENCE
ELTON MAYO
EFFECTIVENESS IS A FUNCTION OF :
• PRODUCTIVITY
• EMPLOYEE SATISFICATION
HENRI FAYOL
EFFECTIVENESS IS A FUNCTION OF :
• CLEAR AUTHORITY
• DISCIPLINE WITHIN AN ORGANIZATION
9. Compare Vertical Information Sharing with Horizontal Information Sharing.
Effective communication depends on informal understandings among individuals that are based upon
trust
When there is trust between individuals an implicit understanding in communication is present
Trust plays a crucial role in communication as it establishes a foundation of credibility, openness, and
reliability. It creates a positive environment where individuals feel safe to express themselves, share
information, and collaborate effectively. Trust fosters transparency, reduces uncertainty, and enhances the
quality and effectiveness of communication.
12. How employees learn culture in an organization?
Stakeholders are any constituencies in an organization’s environment that are affected by the
organization’s decision & actions. These groups have a stake in or are significantly influenced by what
the organization does. In turn, these groups can influence the organizations.
14. Developing new products and services is an inherently risky process. How you can plan any
investment carefully and control your costs strictly?
Developing new products and services is an inherently risky process. You must plan any investment carefully
and strictly control your costs.
You need to:
factor any future investment in products and services into your strategic business plan
plan exactly where this investment will be directed
justify the expenditure on every project
manage your costs
15. During pricing plan for you new product / service, what factors you need to take into account?
Acculturation is the massive culture change that occurs in a society when it experiences contact with a more
powerful society.
Always involves an element of force either directly or indirectly.
This can lead to ethnocide.
Change is inevitable because the stronger culture will “force” change onto the weaker culture.
Merger or fusion occurs when the two cultures lose their separate identities and form a single culture.
Not all acculturation is violently forced as mentioned.
Ethnocide is a violent eradication of an ethnic groups cultural identity.
1) COMPLIANCE: Compliance refers to the lowest level of influence where individuals are motivated to
change their behavior or comply with a request due to the fear of punishment or desire for rewards. The
focus is on external pressure, such as authority, rules, or incentives, to achieve the desired outcome.
2) IDENTIFICATION: Identification involves influencing others by appealing to their desire for affiliation,
belonging, or social acceptance. In this level of influence, individuals change their behavior because they
identify with or admire the person or group making the request. The influencer becomes a role model,
and individuals adopt the desired behavior to gain acceptance or approval. Identification relies on
building trust, establishing relationships, and creating a sense of shared values or identity.
3) INTERNALIZATION: Internalization represents the highest level of influence, where individuals truly
adopt and integrate the desired behavior as part of their own values, beliefs, and identity.
18. Describe the sources of Organisational Conflict.
These are a few different ways observed which, are the commonly used types in business organization:
• Reward power
• Expert power
• Legitimate power
• Referent power
• Coercive power
1. Explain in your own language the comparative analysis of the work of Henry Fayol and Frederick
Taylor.
Henry Fayol, emphasized the concept of Administrative Theory. He focused on the overall coordination
and organization of resources within an organization to maximize efficiency. Fayol advocated for a
hierarchical structure with clearly defined roles, emphasizing the importance of unity of command and
unity of direction. He believed that through careful planning, organizing, coordinating, and controlling,
efficiency could be achieved. Fayol's approach emphasized the managerial functions and the importance
of effective communication, coordination, and cooperation among employees.
Frederick Taylor, on the other hand, is associated with Scientific Management. Taylor sought to
improve efficiency by scientifically analyzing work processes and eliminating wasteful practices. He
emphasized the systematic study of tasks, time and motion studies, and the standardization of work
methods. Taylor advocated for the division of labor and specialization, where workers were assigned
specific tasks based on their skills. He believed in the concept of "one best way" of performing a task and
emphasized the use of financial incentives to motivate workers to increase their productivity.
While both Fayol and Taylor focused on improving efficiency, their approaches differed in emphasis and
scope. Fayol's administrative management approach looked at the overall coordination and organization
of resources, encompassing all managerial functions. In contrast, Taylor's scientific management
approach focused on optimizing work processes through scientific analysis and specialization.
Overall, the comparative analysis of Fayol and Taylor's work highlights the diverse perspectives in
management theory. While Fayol emphasized the coordination and organization of resources, Taylor
focused on scientific analysis and standardization to enhance efficiency.
2) Clarity in Activities: Strategies make organizational objectives more specific, providing clear direction
to individuals responsible for implementing actions and improving overall performance.
3) Increase Organizational Effectiveness: Strategies ensure resources are utilized efficiently and
contribute effectively to achieving organizational objectives, enhancing overall effectiveness.
4) Personnel Satisfaction: Strategic management reduces role conflict and ambiguity, providing clarity
and satisfaction to personnel within the organization.
5) Future Preparedness: Strategy helps organizations focus on the future, moving beyond short-term
activities and planning for long-term success.
6) Differentiation from Competitors: Strategy helps organizations identify and exploit unique assets and
features, setting them apart from competitors.
7) Stability: Strategy provides guidance and stability to organizations, preventing drift and maximizing
their potential.
8) Common Frame of Reference: Strategy serves as a shared point of reference, facilitating collective
understanding and adaptation during times of change.
9) Internal and External Alignment: Strategy integrates internal and external factors, ensuring
organizational alignment and responsiveness to the environment.
10) Guiding Organizational Action: Strategy provides direction, guiding coordinated and purposeful
actions within the organization.
3. ‘The Purpose of an organization is the fundamental reason why the organization exists’. Explain in
your language.
In simple terms, the purpose of an organization refers to the fundamental reason or the underlying
mission for its existence. It represents the core objective or goal that the organization aims to achieve
through its activities and operations. The purpose serves as a guiding principle that shapes the
organization's actions, decisions, and strategies.
The purpose of an organization goes beyond its financial or profit-related goals. It embodies the broader
impact or value that the organization seeks to create in the world. It defines the organization's reason
for being and provides a sense of direction and meaning to its stakeholders, including employees,
customers, investors, and the society at large.
The purpose of an organization can vary depending on its nature, industry, and specific mission. It could
be to provide innovative products or services, solve specific societal problems, contribute to
environmental sustainability, improve people's lives, promote social justice, or advance scientific
knowledge, among many other possibilities.
Having a clear and compelling purpose is crucial for an organization as it aligns its efforts and resources
towards a common objective. It helps in motivating employees, attracting customers, building a strong
brand identity, and fostering a positive reputation. A well-defined purpose also enables the organization
to make decisions and set goals that are consistent with its core mission, ensuring coherence and focus
in its actions.
Moreover, the purpose-driven organizations often find greater fulfillment and engagement among their
employees and stakeholders. By pursuing a higher purpose beyond just financial gains, they can create a
positive impact on society and contribute to the well-being of individuals and communities.
5. Organize elements in the external environment into ten sectors for analysis
1. Resource Dependence: The resource dependence theory emphasizes that organizations rely on
external resources to survive and thrive. This perspective suggests that organizations form
relationships with other entities to gain access to vital resources, such as capital, technology,
information, or expertise. By forming alliances, partnerships, or strategic alliances, organizations can
reduce their dependence on a single source and increase their resource base.
2. Population Ecology: Population ecology theory focuses on the dynamics of organizations within a
larger population or environment. It suggests that organizations compete for limited resources and
that the environment plays a significant role in shaping their survival and growth. In this context,
organizations may form relationships, such as mergers, acquisitions, or collaborations, to enhance
their chances of survival and adapt to environmental changes.
3. Collaborative Networks: The perspective of collaborative networks highlights the importance of
collaboration and cooperation among organizations. Organizations recognize that they can achieve
better outcomes by working together rather than competing solely. Collaborative networks can take
the form of partnerships, alliances, consortia, or joint ventures. These relationships allow
organizations to share resources, expertise, risks, and rewards, fostering innovation, cost efficiency,
and increased market access.
4. Institutionalism: Institutional theory examines the influence of social norms, cultural values, and
institutional pressures on organizations. It suggests that organizations conform to prevailing
institutional norms and rules to gain legitimacy and support. Inter-organizational relationships can be
influenced by institutional factors, such as regulations, industry standards, or social expectations.
Organizations may form relationships to align with institutional norms or to collectively address
institutional challenges and changes.
Inevitably there is some type of response of indigenous peoples to the changes that have been
thrust upon them.
Resisting assimilation, a process of cultural absorption of an ethnic minority by a dominant society,
people often seen emotional comfort from tradition.
Customary ideas and practices passed through generations, which in a modernizing society may form
an obstacle to new ways of doing things.
12. Explain the best strategies for organizations to successfully implement change.