You are on page 1of 56

m Differentiation is the difference in cognitive and

emotional orientations among managers in

different functioal departments, and the difference
in formal structure among these departments.
m hen the external environment is complex and
rapidly changing,organisatioal departments
become highly specialised to handle the
uncertainty in their external sector.
m Success in each sector requires special expertise
and behaviour.
m Employees in an R&D department thus have
unique attitudes, values, goals and education that
distinguish them from employees in manufacturing
or sales departments.
m Rhey examined three organisational departments.
m Manufacturing, R &D and sales in ten
m Rhe finding is that each department is oriented
towards a different orientation and structure to
deal with specialised part of the external
m Ro deal with the scientific sub environment, R &D
had a goal of quality work, along time horizon(upto
5 years), an informal structure and task oriented

m Sales was at the opposite extreme.

m It had a goal of customer satisfaction, was

oriented towards the short term had a very formal
structure, and socially oriented.
Characteristics R&D Department Manufacturing Sales Dept.
oals New Efficient Customer
Developments, production satisfaction
Rime horizon Long Short Short
Interpersonal Mostly task Rask Social
Formality of Low High High
m ¢chieving coordination among various
departments when attitudes, goals and work
orientation differ so widely.
m Integration is the quality of collaboration among
various departments.
m Formal integrators are often required to coordinate
m Sometimes integrators are called liaison
personnel, project managers, brand managers or
m Organisations with highly uncertain environments
and a highly differentiated structure assign about
22% of management personnel to integration
activities such as serving on committees, on task
forces, or in liaison roles.
m Lawrence and Lorsch research concluded that
organizations perform better when the levels of
differentiation and integration match the level of
uncertainty in the environment.
m It refers to the degree of differentiation between
units based on the orientation of members,the
nature of the tasks they perform,and their
education and training.

m If the organisation is staffed by people who have

similar similar backgrounds,skills and training,
they are likely to view the world in more similar
m If they have diverse backgrounds, they will have
different goal emphasise,time orientations,and
even a different work vocabulary.
m Rhe most visible evidence in organisations of
horizontal differentiation is specialisation and
m Kertical differentiation refers to the depth in
m Differentiation increases as the hierarchical levels
in the organisation increases.
m It affects communication.
m It will be difficult to coordinate the decisions of
management personnel.
m Kertical differentiation is a response to an increase
in horizontal differentiation.
m Integration and integrating mechanism.
m Differentiation vs Integration.
m Balancing Standardisation and mutual adjustment.
m Formalisation.
m Socialisation.
m Standardisation vs Mutual adjustment.
m Mechanistic and organic structures.
m Standardisation-Conformity to specific models or
examples-defined by set of rules and norms-that
are considered proper in a given situation.

m Standardised decision making and coordination

procedures make people`s actions predictable in
certain circumstances
m Mutual adjustment is the process through which
people use their judgment rather than
standardised rules to address problems, guide
decision making ,and promote coordination.

m Rhe right balance between these two make some

actions predictable so that basic organisational
tasks and goals are achieved.
m Rhe challenge facing all organizations, large and
small is to design a structure that achieves the
right balance between standardization and mutual

m Many companies complain that employees tend to

flow written and unwritten rules too rigidly instead
of adapting them to the needs of a particular
m Rhe design challenge facing managers is to find
way of using rules and norms to standardize
behaviour while at the same time allowing for
mutual adjustment to provide employees with the
opportunity to discover new and better ways of
achieving organisational goals.
m ãeople at the higher levels in the hierarchy and in
functions that perform complex, uncertain tasks
rely more on mutual adjustment than on
standardisation to coordinate their actions.
m Ex. ¢n organisation want its accountants to follow
certain standardised procedures.
m R & D- Rhe organisation may want to encourage
risk taking that leads to innovation.
m (Rules are not set in stone, but are just convenient
guidelines for getting work done.´
m How to facilitate communication and coordination
among sub units is a major challenge for
m Rhe simplest integrating device which
differentiates people by how much authority they
m Hierarchy dictates who reports to whom, it
coordinates various organisational roles.

m Managers must carefully divide and allocate

authority within a function and between one
function and others to promote coordination.
m Direct contact between people in different subunits is
an integrating mechanism that is more complex than a
hierarchy of authority.

m Establishing personal relationship between people at

all levels in different functions to overcome subunit

m Managers from different functions who have

opportunities for direct contact with each other can
work together to solve common problems
m hen the need for communication among
subunits increases, one member or a few
members from a subunit are likely to have
responsibility for coordinating with other subunits.

m Ro develop in-depth relationship with people in

other subunits.
m ¢ temporary committee set up to handle a specific
problem .

m One person from each function joins a task force ,

which meets until it finds a solution to the problem.

m Rask force members are responsible for taking the

solution back to their functional groups for group
input and approval.
m hen the issue a task force is dealing with
becomes an ongoing strategic or administrative
issue, the task force becomes permanent.

m ¢ team is a permanent task force or committee.

m Most companies, for example now have product
development and customer contact teams to
respond to the threat of increased competition in a
global market.
m ¢ full-time position established specifically to
improve communication between divisions.
m ãurpose is to
-promote the sharing of information and knowledge
to enhance organizational goals such as
innovation and product development
-increased flexibility and
-heightened customer service.
Mechanistic and organic
organization structure
m Structures which are designed to induce people to
behave in predictable, accountable ways.
m Decision making is centralised.
m Subordinates are closely supervised.
m Information flows in a vertical direction down a
clearly defined hierarchy.
m Rasks associated with a role are clearly defined.
m ¢t the functional level, each function is separate ,
communication and cooperation among functions
are the responsibility of someone at the top of
m Hierarchy is the integrating mechanism
m Structures which promote flexibility, so people
initiate change and can adapt quickly to changing
m Decision making is decentralised.
m ãeople assume the authority to make decisions as
organisational needs dictate.
m Roles are loosely defined-people perform various
tasks and continually develop skills in new
m Is an organic structure better than a mechanistic
m Characterised by high complexity, formalisation
and centralisation.
m ãerforms routine tasks, depends heavily on
programmed behaviour.
m Relatively slow in responding to the unfamiliar.
m Flexible and adaptive.
m Influence based on expertise and knowledge
rather than on authority of position.
m Loosely defined responsibilities rather than rigid
job definitions.
m Emphasis is on exchanging information rather
than on giving directions.
m Mechanistic design in a stable, certain
m ¢n organic form in a turbulent environment.
Characteristic Mechanistic Organic
Rask Definition Rigid Flexible
Communication Kertical Not vertical
Formalisation High Low
Influence ¢uthority Expertise
Control Centralised Diverse
Mechanistic Organic
Rasks are broken down into Employees contribute to the common
specialized, separate parts. tasks of the department
Rasks are rigidly defined. Rasks are adjusted and redefined
through employee team work.
Rhere is a strict hierarchy of authority Rhere is less hierarchy of authority
and control, and there are many rules. and control and there are few rules.
Knowledge and control of tasks are Knowledge and control of tasks are
centralized at the top of the located anywhere in the organization.
Communication is vertical. Communication is horizontal.
m Rhe second important component of organisation

m Formalisation refers to the degree to which the

jobs within the organisation are standardised.

m If a job is highly formalised,the job incumbent has

a minimum amount of discretion over what is to be
done and how he or she should do it.
m Formalisation-Explicit job descriptions,Lots of
organisational rules, Clearly defined procedures
covering work processes.
m Regulating the behaviour of employees.
m Mc Donalds same taste whether it is made in ãortland,
¢laska, Bangalore or Holland.

m Secret behind the success of Mc Donald`s is product

consisency and uniformity.

m Strict stndards of employee grooming.

m Rhe manual states that the basic hamburger patty

must be 1.6 ounces of pure beef with no more than 19
% fat content.
m Hamburger buns must have 13.3 %sugar in them.
m Standardisation also promotes coordination.
m Football match when the quarter back calls (wing-
right-44-on-3,´ each team member knows exactly
what task is to be performed.
m Managers have at their disposal a number of
techniques by which they can bring about the
standardisation of employee behaviour.
m 1. Selection. ¢n effective selection process will be
designed to determine if job candidates fit into the
m Selection of successful job performers.
m Ä. Role Requirements-Job ¢nalysis defines the
job that need to be done in the organisation and
outlines what employee behaviours are necessary
to perform the jobs.
m Ö. Rules, Procedures and Policies.
m 4. Training
m Employees feel anxious upon joining an

m orry may be regarding how well they will perform

in the job. Rhey may feel inadequate compared to
more experienced employees.

m New joinees may be concerned about how well

they will get along with their co-workers.
m ¢n adaption process by which individuals learn the
values , norms and expected behaviour patterns
for the job and the organization of which they will
be a part.
m ¢ll employees will receive at least some molding
and shaping on the job, but for certain members ,
the socialisation process will be substantially
accomplished before they join the organisation-
m Employees feel anxious upon joining an

m orry may be regarding how well they will perform

in the job. Rhey may feel inadequate compared to
more experienced employees.

m New joinees may be concerned about how well

they will get along with their co-workers.
m Effective socialization programs reduce the
anxiety of new employees by giving them
information about the job environment and about
supervisors, by introducing them to co-workers,
and by encouraging them to ask questions.
m Socialization conveys three types of information.
m 1.eneral information about the daily work routine.
m 2.¢ review of the organization's history, purpose,
operations and products or services
m 3. ¢ sense of how the employee`s job contributes
to the organization's needs, may be a detailed
presentation(perhaps a brochure) of the
organization's policies, work rules and employee
m Rhe human resource specialist performs the first part
of the socialisation process by explaining basic
matters like working hours, benefits and vacations.
m Rhen, he introduces the employee to his or her new
m Rhe supervisor continues the orientation by explaining
the organisation of the department and by introducing
the person to his or her new colleagues familiarising
the new employee with the workplace and helping to
reduce first day jitters.
m It typically includes information on employee
benefits, personnel policies, the daily routine,
company organisation and operations, safety
measures and regulations.
m Employers use employee handbooks.
m Some firms provide preloaded personal digital