1. Study Text Organizational behavior Learning outcome 1
SAVINDRI SENEVIRATNE 1 Organizational Behavior - Lecture 01
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2. What is an Organization? A social unit of people that is
structured and managed to meet a need or to pursue collective
goals. All organizations have a management structure that
determines relationships between the different activities and the
members, and subdivides and assigns roles, responsibilities, and
authority to carry out different tasks. Organizations are open
systems, which means they affect and are affected by their
environment. 2 Organizational Behavior - Lecture 01 8/12/2013
3. Therefore What is an Organization? Definition: 1. Social
entity 2. Goal directed 3. Designed as deliberately structured and
coordinated activity systems 4. Linked to the external environment
3 Organizational Behavior - Lecture 01 8/12/2013
4. Importance of Organizations Bring together resources to
achieve desired goals and outcomes Produce goods and services
efficiently Facilitate innovation Use modern manufacturing and
computer based technology 4 Organizational Behavior - Lecture 01
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5. Importance of Organizations (Contd) Adapt to and influence a
changing environment Create value for owners, customers and
employees Accommodate ongoing challenges of diversity, ethics, and
the motivation and coordination of employees 5 Organizational
Behavior - Lecture 01 8/12/2013
6. An organization has its own 1. 2. 3. 4. 5. 6. 6 Environment
Goals and Strategies Size Technology Culture Structure
Organizational Behavior - Lecture 01 8/12/2013
8. Different Types of Organizational Structure An
organizational structure is used by businesses to provide an
overall hierarchy and reporting structure for each job within the
organization, and defines how an organization will operate to meet
its goals. one of several basic types of organizational structure
can provide a platform to allow for future growth without making
extensive changes to job responsibilities, the management structure
or financial budgets for each area. 8 Organizational Behavior -
Lecture 01 8/12/2013
9. Departmental For business with several distinct departments,
an organizational structure that defines each department may work
well to allow for future growth. This is considered the one of the
most basic organizational structures, and in most cases, each
department has one executive overseeing the operations of that
department. As one or several departments expand, it allows the
organization to include additional jobs or promote employees to new
supervisory roles within the department, without reorganizing or
expanding the entire structure of the organization. 9
Organizational Behavior - Lecture 01 8/12/2013
10. 10 Functional If an organization is less departmentalized,
such as a small business with fewer than 100 employees, a
functional organizational structure may be suitable for the
business. This type of structure arranges the organization based on
each employee's roles and responsibilities, providing a hierarchy
based on each job description. As employees take on additional
responsibilities and become more knowledgeable of the
organization's goals, this allows the organization to promote those
employees by increasing their salary or changing the job
description with Organizational Behavior - Lecture 01 additional
responsibilities, as well as titling the job 8/12/2013 as a senior
role.
13. 13 Geography Even small businesses may have satellite
offices nationally or internationally with specific goals in each
of those geographical areas. A geographical organizational
structure may be suitable for this type of business. This allows
the organization to designate job titles, responsibilities and a
hierarchy based on the needs of each location. This allows for
oversight by an executive at each regional location based on local
market trends and profitability. This type of structure allows the
organization to quickly increase or discontinue services within a
Organizational Behavior - Lecture 01 8/12/2013 specific area
without affecting the entire
14. 14 Business Unit For small businesses who work in different
industries or markets, the organizational structure can be broken
down by each business unit. This type of structure is often based
on profitability for each unit. Like a departmental structure, each
business unit is overseen by an executive who directs all
operations. Although all business units may be successful, some may
grow faster than others due to industry or market trends. This
allows for restructuring in one business unit that may be growing
rapidly or decline without Organizational Behavior - Lecture 01
8/12/2013 affecting other business units in the organization.
15. Matrix Matrix structure, is a hybrid of divisional and
functional structure. Typically used in large multinational
companies, the matrix structure allows for the benefits of
functional and divisional structures to exist in one organization.
This can create power struggles because most areas of the company
will have a dual management--a functional manager and a product or
divisional manager working at the same level and covering some of
the same managerial territory. 15 Organizational Behavior - Lecture
01 8/12/2013
18. Divisional Structure Divisional structure typically is used
in larger companies that operate in a wide geographic area or that
have separate smaller organizations within the umbrella group to
cover different types of products or market areas. For example, A
Company was organized divisionally--with a small engine division, a
compressor division, a parts division and divisions for each
geographic area to handle specific needs. 18 Organizational
Behavior - Lecture 01 8/12/2013