Arba Minch University

School of Pedagogical
and Behavioral Science
Students Name ID
Lul Mayian SSHR/891/14
Yabsira SSHR/1098/14
James SSHR/820/14
Gach Gil SSHR/1409/14
 Oorganizational structure &
Design
• Organizational structure and design refer to the
framework or configuration of relationships, roles,
responsibilities, and processes within an
organization. It defines how tasks are divided,
grouped, and coordinated to achieve the
organization's goals effectively and efficiently. Let's
break down what is meant by organizational
structure and design:
Organizational Structure
• Organizational structure defines the hierarchical
arrangement of roles, responsibilities, and
reporting relationships within an organization.
• It outlines how the various units, departments, and
individuals are organized and how authority and
communication flow through the organization.
Common elements of organizational structure
include:
• Hierarchy: The levels of authority and reporting
relationships within the organization.
• Departmentalization: How tasks and functions are
grouped into departments or divisions.
• Span of Control: The number of subordinates a manager
supervises directly.
• Centralization vs. Decentralization: The degree to which
decision-making authority is concentrated at the top or
distributed throughout the organization.
• Formalization: The extent to which rules, procedures,
and policies govern organizational activities.
Organizational Design
• Organizational design focuses on aligning the
structures, processes, and systems of an
organization to achieve its strategic objectives. It
involves making intentional choices about how the
organization's resources, capabilities, and people
are structured to drive performance and
innovation. Key aspects of organizational design
include:
• Strategy Alignment: Ensuring that the
organizational structure supports the strategic goals
and vision of the organization.
• Flexibility and Agility: Designing the organization to be responsive to
change, market dynamics, and emerging opportunities.
• Resource Allocation: Optimizing the allocation of resources, such as
talent, budget, and technology, to enhance organizational effectiveness.
• Workflow and Processes: Designing efficient workflows, processes, and
systems to streamline operations and promote collaboration.
• Culture and Leadership: Creating a conducive culture and developing
leadership practices that support the organization's design and foster
employee engagement.
• Effective organizational structure and design are critical for driving
organizational performance, innovation, and growth. By aligning the
structure with the organization's strategy, goals, and values,
organizations can create a framework that promotes collaboration,
efficiency, and agility in a dynamic business environment.
Four elements of organizational
structure.
• Centralization
• Formalization
• Hierarchical levels and
• Departmentalization
Organizational structure encompasses several key
elements that shape how tasks are divided,
coordinated, and controlled within an organization.
Let's delve into the four fundamental elements of
organizational structure:
 Centralization
Centralization refers to the degree to which decision-making
authority is concentrated at the
top levels of the organization. In a centralized structure, key
decisions are made by top
management, often resulting in a clear chain of command
and control. Key points about
-Advantages: Centralization can lead to faster decision-
making, consistency in strategic
direction, and efficient use of resources.
-Disadvantages: It can result in slower responses to local
needs, reduced employee empowerment, and a lack of
adaptability to changing conditions.
Formalization
• Formalization refers to the extent to which rules, procedures,
policies, and job descriptions are explicitly defined within the
organization. High levels of formalization mean that there are
clear guidelines for how tasks are to be performed, leading to
standardized processes and behaviors.
• Advantages: Formalization can enhance consistency, quality
control, and efficiency in operations. It can also aid in training
new employees and ensuring compliance.
• Disadvantages: Excessive formalization may stifle creativity,
limit employee autonomy, and reduce adaptability to unique
situations. - Example: A highly formalized organization may
have detailed job descriptions, documented procedures for
various tasks, and strict adherence to policies.
Hierarchical Levels
• Hierarchy refers to the levels of authority and decision-
making within an organization. It defines the structure
and reporting relationships, indicating the chain of
command from top management to front-line
employees.
• Advantages: Clear hierarchical levels can provide clarity
on reporting relationships, facilitate coordination, and
help employees understand their roles and
responsibilities.
• Disadvantages: Excessive hierarchy can slow decision-
making, increase bureaucracy, and hinder
communication across levels.
Departmentalization
• Departmentalization involves how tasks, functions,
and activities are grouped together into units or
departments within the organization. It determines
how work is organized and coordinated to achieve
organizational goals.
• Types: Common forms of departmentalization
include functional (based on functions such as
marketing, finance, HR), divisional (based on
products, geography, customer segments), matrix
(combination of functional and divisional
structures), and others.
• - Advantages: Departmentalization can promote specialization,
efficiency, coordination, and accountability within each unit or
department.
• Disadvantages: Silos, communication barriers, and potential
duplication of efforts can arise if departmentalization is not
well-integrated.
• Example: A company may organize its departments by product
lines, with each department responsible for a specific product
or service offering.
• Understanding and effectively managing these elements of
organizational structure is essential for optimizing
organizational performance, promoting collaboration, and
adapting to changing business environments.
Organizational Culture
• Organizational culture refers to the shared values,
beliefs, norms, attitudes, and behaviors that
characterize an organization. It represents the
collective personality of the organization and
influences how members interact, make decisions,
and perceive the world around them.
• Organizational culture shapes the way employees
think, act, and work together, ultimately impacting
organizational outcomes and performance.
Here's how organizational culture
affects behavior in organizations:
• 1. Employe Behavior: Organizational culture plays a significant role in
shaping employee behavior. It influences how employees approach their
work, interact with colleagues, and make decisions. A strong culture that
emphasizes collaboration and innovation can lead to proactive and
engaged employees who strive for excellence.
• 2. Workplace Morale: The culture of an organization can impact
workplace morale and employee satisfaction. A positive and supportive
culture can foster a sense of belonging, motivation, and job satisfaction
among employees. Conversely, a toxic or negative culture may lead to
low morale, high turnover, and disengagement.
• 3. Decision-Making: Organizational culture influences decision-making
processes within the organization. A culture that values risk-taking and
experimentation may encourage employees to make bold decisions and
embrace innovation. In contrast, a culture that prioritizes caution and
tradition may lead to more conservative decision-making.
• 4. Communication: Culture shapes how communication flows within an
organization. Open and transparent cultures tend to foster effective
communication, collaboration, and information sharing. In contrast,
cultures that lack transparency or promote hierarchy may hinder
communication and create silos within the organization.
• 5. Performance and Productivity:The culture of an organization can
impact performance and productivity levels. Cultures that emphasize
accountability, continuous improvement, and employee development
are likely to drive higher levels of performance and productivity.
• 6. Adaptability and Change: Organizational culture can influence how
well an organization adapts to change and external disruptions. A
culture that values flexibility, agility, and continuous learning is more
likely to navigate change successfully. In contrast, a culture resistant to
change may struggle to innovate and respond to evolving market
conditions.
• 7. Customer Relationships: Organizational culture
also affects how employees interact with customers
and stakeholders. A customer-centric culture that
prioritizes service excellence and relationship-building
can lead to positive customer experiences and loyalty.
• In summary, organizational culture is a powerful force
that shapes behavior, attitudes, and outcomes within
organizations. By fostering a positive and supportive
culture that aligns with organizational goals and
values, leaders can cultivate a work environment that
promotes engagement, innovation, and success.
Levels of Organizational
Culture
• Organizational culture is a multi-dimensional
concept that exists at various levels within an
organization.
• Edgar Schein, a pioneer in the field of
organizational culture, identified three primary
levels of culture within an organization:
 Artifacts and Symbols
• Visible Signs: This level includes the observable artifacts
and symbols present in the organization, such as physical
structures, dress codes, language, rituals, and
ceremonies.
• Espoused Values: These are the explicit beliefs, norms,
and values that are communicated and promoted within
the organization, often through official documents,
mission statements, and corporate communications.
• Basic Assumptions: These are the core, underlying
beliefs, values, and unwritten rules that guide behavior
and decision-making within the organization. They are
often deeply ingrained and may be unconscious.
 Espoused Values
• Espoused Values: These are the expressed beliefs,
aspirations, and principles that the organization
promotes as important.
• Shared Norms: Shared norms are the collective
standards and expectations within the organization
that guide behavior and interactions.
• Formal Philosophy: The official philosophy or
guiding principles of the organization that are
communicated to employees and external
stakeholders.
Basic Underlying Assumptions
• Implicit Assumptions: These are the deeply
ingrained, unconscious beliefs, perceptions, and
values that shape attitudes, behaviors, and
decision-making within the organization.
• Taken for Granted Beliefs: These are the
fundamental beliefs and assumptions that are so
deeply embedded in the organization's culture that
they are often taken for granted and not
consciously recognized.
Characteristics/dimensions of
organizational culture
• Organizational culture encompasses a set of characteristics or
dimensions that define the values, beliefs, norms, and behaviors
within an organization. Here are some key characteristics or
dimensions of organizational culture:
• 1. Mission and Values: The core beliefs, principles, and values that
guide behavior and decision-making within the organization.
• 2. Behavioral Norms: The expected behaviors, attitudes, and
interactions that are commonly accepted within the organization.
• 3. Communication Style: The ways in which information is shared,
feedback is given, and communication flows within the organization.
• 4. Leadership Style: The approach and behaviors of leaders that
influence the organizational culture, including their communication
style, decision-making processes, and ability to inspire and motivate
others.
• 5. Employee Engagement: The degree to which employees
are invested in their work, feel motivated, and aligned with
the organization's goals.
• 6. Innovation and Risk-Taking: The organization's openness
to new ideas, experimentation, and willingness to take risks
in pursuit of growth and improvement.
• 7. Customer Focus: The extent to which the organization
prioritizes customer needs, satisfaction, and experiences in
its operations and decision-making.
• 8. Team Dynamics: How teams collaborate, communicate,
and work together to achieve common goals within the
organization.
• 9. Adaptability and Change: The organization's ability to
adapt to change, respond to challenges, and embrace
innovation in a rapidly evolving environment.
• 10. Diversity and Inclusion: The organization's approach to
fostering diversity, equity, and inclusion, and valuing the
contributions of individuals from diverse backgrounds. These
characteristics or dimensions collectively shape the
organizational culture and influence the behaviors, attitudes,
and outcomes within the organization. Understanding and
aligning these dimensions with the organization's strategic
objectives can help create a positive and effective work
environment that supports employee engagement,
performance, and overall success.
Management and
Organizational Issues
• Management and organizational issues encompass a wide range of
challenges and opportunities that organizations face in effectively
achieving their goals, optimizing performance, and adapting to
change.
• Here are some key areas of management and organizational issues:
• 1. Leadership and Management Styles: Issues related to leadership
effectiveness, decision- making processes, and management styles
can impact organizational culture, employee engagement, and
overall performance.
• Adapting leadership approaches to different situations and
employee needs is crucial for success.
• 2. Employee Engagement and Motivation: Ensuring that employees
are motivated, engaged, and aligned with the organization's goals is
essential for productivity and retention.
• 3. Organizational Culture: Culture influences how employees interact,
make decisions, and work together. Issues related to culture, such as
alignment with organizational values,inclusivity, and fostering innovation,
can impact morale, teamwork, and organizational resilience.
• 4. Change Management: Managing organizational change, whether
related to technology, processes, or market dynamics, presents challenges
in terms of employee resistance, communication, and adaptation.
Addressing change management issues effectively requires clear
communication, stakeholder engagement, and strategic planning.
• 5. Performance Management: Issues related to performance evaluation,
feedback mechanisms, goal setting, and recognition can impact employee
morale and organizational productivity.
• Developing clear performance metrics, providing regular feedback, and
aligning individual goals with organizational objectives are critical
components.
• 6. Diversity and Inclusion: Embracing diversity and fostering an inclusive
work environment are essential for organizational success. Issues related
to diversity and inclusion include bias awareness, equal opportunity
practices, and creating a culture of respect and belonging for all
employees.
• 7. Strategic Planning and Execution: Aligning organizational goals with
strategic planning, resource allocation, and effective implementation is
crucial for achieving long-term success. Issues related to strategic
planning may involve setting clear objectives, monitoring progress, and
adjusting strategies based on feedback and market dynamics.
• 8. Ethical Issues and Corporate Social Responsibility: Addressing ethical
dilemmas, promoting integrity, and engaging in responsible business
practices are essential for organizational reputation and sustainability.
Companies must navigate ethical challenges, uphold transparency, and
demonstrate social responsibility to maintain trust with stakeholders.
Organizations without
structures
• Organizations without formal structures are rare,
primarily because structure provides the framework
for how work is organized,responsibilities are
assigned, and communication flows within an
organization.
• However, in some cases, informal or flat structures
may give the appearance of a lack of hierarchy or
formal organization. Here's why it's challenging to
have organizations without structures:
• 1. Coordination and Efficiency: Structure provides clarity on roles,
responsibilities, and reporting lines, essential for coordinating tasks, avoiding
duplication of efforts, and ensuring efficiency. Without a structure, ambiguity
can lead to confusion, inefficiencies, and difficulties in decision-making.
• 2. Accountability and Control: Structure establishes accountability
mechanisms, outlining who is responsible for what tasks and outcomes. It
also provides a framework for control and oversight, critical for ensuring
compliance, managing risks, and achieving organizational goals. Without
structure, accountability and control mechanisms may be unclear or lacking.
• 3. Communication and Decision-Making: Structure facilitates
communication flows and decision-making processes within an organization.
Defined reporting lines, hierarchies, and channels of communication help
streamline information sharing, problem-solving, and coordination. Without
structure, communication may be ad-hoc, leading to misunderstandings and
inefficiencies.
• 4. Scalability and Growth: As organizations grow in size and complexity,
formal structures become essential for managing the increased scope of
activities, functions, and interactions.
• Structure provides the scalability needed to support growth, expansion
into new markets, and diversification of products or services.
• 5. Specialization and Expertise: Structure allows for the specialization of
roles and functions, enabling employees to develop expertise in specific
areas and contribute to the organization's success.
• Defined structures help match individuals with roles that align with
their skills, knowledge, and capabilities.
• 6. Consistency and Stability: Structure promotes consistency in
operations, processes, and decision-making, contributing to
organizational stability and predictability. It provides a framework for
setting standards, enforcing policies, and maintaining continuity in
operations.