Assignment on Organization Behaviour

Student Name

Student ID

1
Executive Summary
The study is about concept of organization and the innovation in the organization. Proper
research has been done to develop the concept of the types, roles and the framework of the
organizational structure. Besides, the concept of organizational culture is also given for a better
understanding of the organization’s employees. The idea of innovation and the importance of
innovation is a concept of the study. How the innovation framework is applied and the strategy
for implementing innovation is given.

2
Table of Contents
Executive Summary.........................................................................................................................2

Introduction......................................................................................................................................4

Types of organizational structure....................................................................................................5

Role of organizational structure.......................................................................................................6

Framework to develop an organization...........................................................................................7

Organizational culture.....................................................................................................................9

Common problems in organization and solutions:........................................................................10

Importance of innovation in the organization:...............................................................................12

Innovation framework:..................................................................................................................13

Strategy for implementing innovation...........................................................................................14

Conclusion:....................................................................................................................................15

Recommendation:..........................................................................................................................15

References:....................................................................................................................................16

3
Introduction
Organization refers to the group of people, who are working to achieve the organizational
objectives. And the group consists of individual, who is working to achieve the organizational
objectives and goals. We can divide the organization into two senses: 1) it is the process of
organizing people in the organization. In an organization, the work and responsibility of each
member are divided, so that the organizing of the people becomes easier. 2) it creates a
relationship between the positions of the job ( Peppard, 2018). At present, as the business world
is changing, the organizational process is also changing. If a business fails to cope with this
changing nature of the organization, the business will collapse. The whole management is
standing on the organization. Management needs to understand changing factors of the
organization like change in technology, change in leadership, change in the recruiting process,
innovation etc.

Figure: Concept of organization.

Source: (Premaratne, 2019)

4
Types of organizational structure
There are mainly 5 types of organizational structures that exist.

1)Line
2)Line and
structure staff
structure

Organization 3)Functional
structure

5)Project 4)Matrix
structure structure

Figure: Types of organizational structure.

Source: (Author)

1) Line structure organization: Underline structure organization, authority flows directly

from top management to different levels of management (Ahmady et al.,2016). This is
the simplest form of organization. Communication and feedback are easier under this
system. Each member’s responsibility is fixed at each level.
2) Line and staff organization: Under this system, line officers focus on several activities
like planning, monitoring, organizing, controlling etc. And the staff officers provide
relevant data to the line officers. This creates perfect coordination of work.
3) Functional structure organization: This type of organization is based on a group with
skilled and experienced staff. Under this structure, the organization is divided according
to the task of the employees. It is an effective form of organization. As there are skilled
people employed at different levels of the organization, the efficiency of the work
increase,

5
 4) Matrix structure organization: Under the matrix structure organization, individual
employees report to more than one superior, This type of organization leads to every
effective coordination which increases the quality of the management.
5) Project structure organization: A project structure organization is a temporarily created
organization which is created for a specific project. When an organization needs to
achieve a certain goal, then this specialized project structure management is created
(Janićijević,2018).

Role of organizational structure

The organizational structure serves multiple functions in a business. It is designed to serve the
short or long term objectives or goals of the organization. Organizational structure should evolve
with the changing demand in the business world (Benzer et al.,2017). A good organizational
structure brings success to a business by increasing its efficiency in all sectors.

The structure provides the following roles:

1) Increases efficiency: The main objective of an organization is to increase the efficiency

is its working performance. Organizational structure provides proper guidelines to the
employees which results in higher and more effective performance. There are different
types of organizational structures to bring efficiency to the business.
2) Communications: An effective organizational structure provides effective
communication media to the employees. In the organizational structure, it is always
clearly mentioned who will report to whom.
3) Maximum use of resources: A good organizational structure ensures maximum use of
resources. The organizational structure gives importance to the resources according to
their use. The most important resource will be used first. Maximum distribution of
resources is very much important for the good growth of the business.
4) Duties and responsibilities: In a good organizational structure, the duties and the
responsibilities of the employees are mentioned which helps the employees to understand
their job.

6
 5) Creative thinking: In a good organizational structure, employees are free to share their
thinking and ideas with the top management. A good organizational structure allows the
employees to think about the development of the organization.

Framework to develop an organization

Developing an organization with a structured framework is more likely to be effective than an
organization without a structured framework. A framework helps the management to understand
the way of activities and how the organization will run.

Figure: Framework to develop an organization

Source: (Ramdhani et al.,2017)

To develop an organizational structure, management needs to create an organizational structure

under which the management will perform its activities. The structure will include how the
management and employees will communicate, how the activities of the employees will be
distributed, how the resources will be allocated in the organization and many other relevant
things. And then after preparing the structure, the management will plan to successfully
implement the structure. The management will also think about innovation in all departments. In
the innovation process, all the management levels will participate to share their ideas. This will
create a possibility for the future success of the organization. To successfully run the
7
organization, it is very much important to manage the people. There are different types of people
who work in an organization. People from different religions, different cultures, different areas,
different areas. In the framework, it should be kept in the mind of the management that
employees are the main function that runs an organization. So an effective way should be in
consideration to manage the employees of different nature. After all of this, a perfect and suitable
strategy and leadership process should be in consideration. The strategy should include how the
organization will continue its activities in the short or long run. A necessary analytical procedure
shall be done to make a decision. Besides, strong leadership should be maintained. If the
leadership process is strong, the employees will work better. The leader should be honest,
creative, straightforward, and should have the ability to critical thinking. A perfect and
informative framework helps the organization to prepare a plan, strategy and implementation of
them. The framework will help the organization to think better about any kind of decisions taken
by the organization. So, the top level management should take all the necessary steps to
successfully design a framework that will help the management and the employees understand
the objectives and goals of the organization.

8
Organizational culture
Organizational culture refers to the assumptions, values, and beliefs that affect the behaviour of
the employees in the organization. Organizational culture includes the expectations, experiences,
values and beliefs. Good organizational culture helps the management to take the correct steps to
achieve the objectives. Employees feel easy to work where the organizational culture is strong.
Organizational culture increases employee engagement and the productivity of the employees.
Organizational culture also decreases the turnover rate which saves time and resources for the
organization (Shahzad et al.,2018). Organizational culture creates a simple and effective way of
communication. Management’s decision-making process becomes improved. It also helps the
employees to have a good perception of the organization.

Figure: Organizational culture

Source: (Schein,2015)

The success of an organization mostly depends on the culture it the organization. Organizational
culture determines how the employees will behave in the organization, how the management will
concentrate on the employees, how the control environment will be maintained etc.

9
Common problems in organization and solutions:
There are some common problems which most organizations face. Overcoming these problems
can be challenging as most of these problems are continuous. But there are still some ways to
solve these problems. Solving these types of problems requires dedication and commitment.
There are mainly 5 types of problems that may arise in an organizational context.

1)Turnover: In the organizational context turnover refers to the tendency of the employees to
leave their companies frequently. For this reason, companies need to hire new employees
continuously to fill the vacancies (Firth,2019). This requires a lot of time and effort. The working
performance becomes slower. This problem arises because employees may feel discontent with
the management or not satisfied with their work or not receiving a proper salary or strict
regulations etc.

To overcome this problem, management should take feedback from the employees. Managers
should listen to what the employees want and should be concerned about their working
environment whether the environment is friendly for the employees or not.

2) Productivity losses: Productivity is the number of work employees does in an organization. If

an employee fails to do the proper amount of work he/she is supposed to do, then it is called
productivity loss. Productivity loss may arise for some reasons like employees losing interest,
teams are not sufficient, or sudden changes in the management of stress( Garicano, 2017)

To face this problem, managers may hire extra employees to continue the work. The manager
should give extra time to the employees to refresh their minds to reduce stress and always notify
the employees about future changes so that they can adjust to the change.

3) Process management: Process management includes that employees are doing their work
timely and in an effective manner. Poor process management can create a serious problem in the
future. Poor process management may occur due to complex strategies established by the
managers or complex leadership which do not receive feedback from the employees.

10
To overcome this problem, managers should focus on teamwork and understand the team
member, what the members want and how to implement the process that helps the employees to
work easily.

Figure: Problem-solving concept.

Source: (Chon, and Park, 2021)

4) Role specification problem: Role specification is an important term which means that
management should recruit a qualified person for a specific job. If the role specification is not
properly followed by the management, it will reduce the work performance and will create the
possibility of mistakes in the work. This problem may arise because of the biasness of the
recruiter in the recruitment process, nepotism, and not giving proper time in the interview.

To overcome this problem, managers should understand the importance of role specification. The
recruiter should be unbiased and give proper time to the interview board in examining a
candidate.

11
5) Low innovation: Innovation in a company is about generating new ideas about the
organization, or the product or service. The organization may experience low innovation because
employees are not free to share ideas, or the organizing process is old fashioned.

To solve this problem, the management should allow the employees to share their ideas about the
organization and always try to adjust to the changes.

Importance of innovation in the organization:

Innovation plays an important role in the organization by making its operation easier. Innovation
in the organization is about generating values for the organization by generating new ideas. The
ideas can be about a new product, new marketplace, new strategy, new management style, new
planning etc ( Dereli , 2015).

Three reasons innovation is important in an organization:

1) Innovation grows the organization: Organizational growth means growth in size, profit,
fame and many other growths. Logical and successful innovation allows the employees or the
management to grow the scope of the organization. If the innovation is not happening, the
growth of the organization will stop.

2) Innovation helps to stay ahead of the competition: With the technological advancement, the
competition in the market is increasing. So if an organization wants to successfully compete in
the market, the organization needs to come up with new ideas ( Tohidi, and Jabbari,2016). With
the increase of new products, new marketplace, and new technologies, competition is becoming
complex day by day. Only innovative ideas can help an organization to survive this competition.

3) Innovation helps to take advantage of new technologies: Technology plays an important

role in the organization by making its operation easier day by day. Many new technologies are
being introduced in the market. Adopting these technologies will help any organization flourish.
Innovation helps to think the organization that how the new technologies can be used in the
organization

12
Innovation framework:
The innovation framework helps an organization to think about the innovation process and how
to relate innovation with the organizational context. There are five components to the innovation
framework.

1) Organization change management: Necessary training and coaching will help the
employees in the organization to think outside the box. Proper training and coaching will help an
employee to understand the objectives of the organization. And thus a creative employee will use
the training and will always try to generate new ideas for the betterment of the organization.

2) Business- IT alignment: With technological advancement, companies recognize the need to

align IT and business. Business-IT alignment has several benefits like, improved collaboration,
greater operational efficiency and better customer feedback. Innovation process in business -It
alignment will expand the growth of the organization.

Figure:

Source:

3) Industry insights: The business strategic team must always must aware of whom they re
competing in the market, what is the market volume, what kind of product is in the market, how

13
distribution is occurring etc. The team then must think about new ideas about grabbing the
market for the organization.

4) Business process competencies: There should be a business process operational team. the
team should always think about the organizational working process. What kind of organization
structure is better, what kind of leadership is perfect , how to delegate work in the organization
and many more organizational context. This components of the framework will help the
employees to understand their work and what kind of new ideas can be taken in the future.

5) Technology competencies: Organization should always try to recruit technologically savvy

and curious person and should ask them to study current technology and the changing in
technology. The employee will come up with new ideas on how to use the technology in the
organization for the betterment of the organization (Hall et al.,2017).

Strategy for implementing innovation

Top four steps to implement innovation:

1) Spot opportunities for innovation: Innovation is about solving problems or creating new
opportunities. Before implementing innovative ideas, organizations need to think about the
problems for the new ideas or spot the opportunities for the idea.

2) Test the potential innovation: The ideas that are generated in the organization need to be
tested. Then express the ideas into a hypothesis for the target experiment. With each round of the
test, the idea becomes developed

3) Build support for innovation: The ideas should be shared to all the stakeholders, including
those who will be benefited. This will make the ideas more clear and short.

4) Learn from innovation efforts: There is a saying “ fail fast, learn fast”. After testing the
ideas, there should be a list of what should be done again and what should not be done again.
Learning from innovative efforts will reduce the chance of failure(Lendel, and Varmus, 2018).

14
Conclusion:
Innovation in the organization will create more scope for growth and more positive chance to
survive the competition. In each sector of organization, innovative ideas will lead to ultimate
success. Innovative ideas has risk , but it also has more potential is the ideas become success.
From forming to controlling, monitoring, organizing everywhere innovation works like a boon .
In this modern world of technological advancement, innovation is the only thing that can save an
organization from any kind of problems.

Recommendation:
An organization should hire persons with curious minds so that those persons can think about
generating new ideas for the organization. The organization should focus on the problems and
the opportunities that will occur in the future and think about how to deal with them.

15
References:
Ahmady, G.A., Mehrpour, M. and Nikooravesh, A., 2016. Organizational structure. Procedia-
Social and Behavioral Sciences, 230, pp.455-462.

Benzer, J.K., Charns, M.P., Hamdan, S. and Afable, M., 2017. The role of organizational
structure in readiness for change: A conceptual integration. Health services management
research, 30(1),

Dereli, D.D., 2015. Innovation management in global competition and competitive advantage. Procedia-
Social and behavioral sciences, 195, pp.1365-1370.

Garicano, L., 2017. Hierarchies and the Organization of Knowledge in Production. Journal of
political economy, 108(5), pp.874-904.

Hall, G.E., Loucks, S.F., Rutherford, W.L. and Newlove, B.W., 2017. Levels of use of the innovation: A
framework for analyzing innovation adoption. Journal of teacher education, 26(1), pp.52-56.

Janićijević, N., 2018. The mutual impact of organizational culture and structure. Economic
annals , 58(198), pp.35-60.

Lendel, V. and Varmus, M., 2018. Identification of the main problems of implementing the innovation
strategy in Slovak businesses. Acta universitatis agriculturae et silviculturae mendelianae
brunensis, 60(4), pp.221-234.

Peppard, J., 2018. Rethinking the concept of the IS organization. Information Systems
Journal, 28(1), pp.76-103.

Premaratne, Y. (2019). Organizational Behavior; What, Why & How ~. Retrieved 2May 2022.

Ramdhani, A., Ramdhani, M.A. and Ainisyifa, H., 2017. Conceptual framework of corporate
culture influenced on employees commitment to organization. International business
management, 11(3), pp.826-830.

16
Schein, E.H., 2015. Organizational culture (Vol. 45, No. 2, p. 109). American Psychological
Association.

Shahzad, F., Luqman, R.A., Khan, A.R. and Shabbir, L., 2018. Impact of organizational culture
on organizational performance: An overview. Interdisciplinary journal of contemporary
research in business.

Tohidi, H. and Jabbari, M.M., 2016. Innovation as a success key for organizations. Procedia
Technology, 1, pp.560-564.

17