Lecture Notes on Organizational Structures and Communication

Introduction

• Objective: Discuss important questions about Block Number Four for the upcoming exam.
• Additional Information:
  • Online sessions for June 2022 exam preparation.
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Types of Organizations

Formal Organizations

• Aim: Achieving well-defined goals.
• Characteristics:
  • Well-defined tasks and goals.
  • Hierarchical management structure.
  • Emphasizes efficiency, discipline, and consistency.
  • Communication is formal.
  • Less responsive to external changes.

Informal Organizations

• Aim: Focus on ill-defined, intangible goals.
• Characteristics:
  • Focus on interpersonal relationship building.
  • Spontaneity, sense of belonging, creativity, and warmth.
  • Communication is informal and grapevine.
  • More dynamic and responsive to changes.

Organization Structures

Functional

• Advantages: Clearly defined career path, flexible workforce.
• Disadvantages: Departmental priorities over organization, no career path in project management.

Projectized

• Advantages: Better communication, loyalty towards project goals.
• Disadvantages: Inefficient resource usage, temporary project teams.

Matrix

• Advantages: Better coordination, maximum resource utilization.
• Disadvantages: Potential for conflict, complex communication.

Centralized vs. Decentralized Organizations

Centralized

• Characteristics:
  • Hierarchical decision-making.
  • Autocratic and bureaucratic.
  • Top-down decision process.
  • Communication is not transparent, resistance to change.

Decentralized

• Characteristics:
  • Democratic and participative decision-making.
  • Transparent communication.
  • Easier management of change.
  • Employees are well-informed and engaged.

Communication in Organizations

Types of Communication

• Vertical Communication:
  • Includes downward (top to lower levels) and upward (bottom to top).
• Horizontal Communication: Between peers or same hierarchy level.
• Diagonal Communication: Across different departments and hierarchy levels.

Informal Communication (Grapevine)

• Types:
  • Chain: A to B, B to C, etc.
  • Gossip: Information shared widely, often inaccurately.
  • Probability: Shared selectively among a few people.
  • Cluster: Shared within close peer groups.

Communication Process

• Elements:
  • Sender: Encodes the message.
  • Message: Information to be communicated.
  • Channel: Medium through which the message is sent.
  • Receiver: Decodes the message.
  • Feedback: Response from the receiver back to the sender.
• Barriers:
  • Linguistic, emotional, psychological, cultural, physical, organizational, attitudinal, physiological, perception, technological, social/religious.

Organizational Culture

Types

• Clan Culture: Flexible structure, inward focus. Values participation, cohesion, and family-like atmosphere.
• Adhocracy Culture: Flexible structure, outward focus. Dynamic, entrepreneurial, focuses on innovation.
• Market Culture: Stable structure, outward focus. Competitor and result-oriented, customer-driven.
• Hierarchy Culture: Stable structure, inward focus. Emphasizes control, coordination, efficiency, and stability.

Change Management

Drivers of Change

• External: Competitors, customer demand, investors, technology, government policies.
• Internal: Better resource utilization, dissatisfaction with current performance, reorganization needs.

Kurt Lewin's Three-Stage Change Model

1. Unfreeze: Prepare for change, create the need for change, ensure top management support.
2. Change: Implement change, communicate frequently to reduce rumors, empower actions.
3. Refreeze: Anchor changes in culture, sustain change through support and training, celebrate success.

Organizational Development (OD) Interventions

• Sensitivity Training: Focus on emotional awareness, improving interpersonal skills.
• Team Building: Emphasize team development to achieve goals.
• Survey Feedback: Identify issues and provide solutions.
• Job Redesign: Increase job satisfaction and morale by redesigning tasks.
• Socio-Technical Intervention: Enhance work systems and environment.
• Structural Interventions: Clarify roles and responsibilities, reduce ambiguity.

Conclusion

• Recap of key concepts: Types of organizations, communication, organizational culture, change management, OD interventions.
• Encouragement to study and prepare well for exams.
• Contact for queries and best wishes for success.