Organisational Analysis

Table of Contents

Organizational Structure

Types and types of organisations

An Organizational Component

This chapter will focus on organizational structure and Mintzberg’s work. It will also discuss how this applies to researcher’s organizations. This chapter will focus on Minztberg’s view of the organization’s structure, types, and power components. This chapter will also examine the role of culture in shaping organizations, and how it relates to the organization.

Organisational StructureOrganizational analysis is the process of reviewing the development, work environment, personnel and operations of the organization. When conducting this analysis, emphasis is given to the organizational structure and type of organization as well as how their systems, capabilities and functionality affect outputs. This means that organizational structure can have a significant impact on how a company performs. One company may be successful because it has strict systems and controls, while another company will not. In order to maximize efficiency, organizations should find what works best for them and combine them. The organization must constantly review their structures and make changes to improve efficiency. Henry Mintzberg was born September 2, 1939 in Canada. He is an author and academic on business and management. His vast writings on business strategy and management are extensive. He believes that top-ranked management schools are too focused on numbers and have overemphasized the art of management. He suggests that post-graduate programs should focus more on educating practicing managers than students without real-world experience. They should rely upon action learning and insights from the student’s own problems and experiences.

Mintzberg (1983), an organizational analysis sought out the best way to make organizations function. He did this by analyzing workplace organization, management roles and responsibilities. Check out his analysis below of organizations

Types of OrganisationEntrepreneurial Organization: Organizations of this nature are characterized by simple structures, with one large unit. These organizations are usually managed by an owner or manager. They can be flexible and have direct supervision. These organizations lack standard roles and systems. Machine organization: This organization is structured and standardized. It has clearly defined tasks for each department and every group. It is procedural. The top managers of each functional department centralize decision making. These organizations include large manufacturing firms and government agencies. This is the type organisation where professionals have a high degree of control over their work. The structure is highly structured, highly regulated and specialized. Senior executives are less in control of their work because it has a decentralized decision-making system. Hospitals and universities are examples. This category includes organizations with multiple product lines or businesses. Its strong interest in brands and products from different regions means that it has many independent divisions. Managers can take control of their decisions, while the headquarters concentrate on the strategic direction and planning of the company. Large multinational corporations are an example. Innovative organization: This characteristic is found in creative industries such consulting, film production and other project-based businesses. These organizations are flexible and draw a pool of talent, with workers moving between teams. The idea is that power and decision are decentralized. Component of an OrganisationAccording to Mintzberg every organization has six different components

The strategic apex is the highest management position in an organization. They define the organization’s mission and determine the course of action to achieve it. Here are chief executives and directors.

The Operating Core: This is the core group of people responsible for the production of products. They include those who work in the operations section of the company.

Middle line: By delegating authority, the middle manager is the link between operating core and strategic leadership. Example: Department heads receive orders from top management and relay them to operations. This is not always possible in small companies.

Technostructure: A system designer who analyzes and designs processes. This includes human resource, finance, administration, and training. They make decisions about how to do work and standardize skills. Planners determine outputs and set quality standards.

Support staff: These are people who work in research and development, public relation and legal service. They don’t directly contribute to this organization’s core purposes.

Mintzberg then identified ways to coordinate tasks within organizations.

Mutual adjustment: This is the act of coordinating between two employees by using informal communication. This usually occurs in small, flexible organizations.

Direct supervision: The head gives orders about the task and how it should proceed.

Standardization: Work process is standardized. The focus is on how the work will be done and the goals. The operating core is responsible for the execution of the tasks and designing the work process.

Standardization in output: This helps to coordinate the output by stating what it should look like. The annual sales targets for marketing departments can be set, for example.

Standardization: This involves the integration of complementary skills. A surgeon and anesthetist can respond almost instantly to each other’s standard procedures.

Stand of norms is when there is coordination because everyone has the same beliefs and the same norms that govern the organization’s operation. Mintzberg’s organizational analysis is a straightforward but complex classification of organizations based on their size, structures, standardization, specialization, and degree. His analysis also reveals the relationship between an organization’s structure and the coordination method that it uses. Machine organizations will need to focus on standardization and efficiency in order to be effective, while professional organizations will place emphasis on standardization and skills. Important to be aware that not all organizations are the same. For example, a machine organization may have both divisional and machine structures.

USAID, which is used to analyze this research’s results, can be considered both a machine and a professional organization. USAID is highly procedural, structured organization. The top hierarchy includes the Administrator at headquarters and all the way down to the mission chief and other divisional head. It is professional because it has a large number of professionals that they use to accomplish its mission. It is dependent on medical professionals for services such as nutrition, intervention immunization, and malaria prevention. An organization’s culture is a collection of beliefs, norms, principles and behaviors that give it its unique character. According to Needle (2004), organizational culture is the collective values and beliefs of an organization. It is a product or strategy of the members of that organization. The culture includes the vision, values of the organization, symbols, language, assumptions and beliefs as well as their environment. Ravasi & Schultz (2006) described organizational culture as a set or shared beliefs that help organizations to be successful in different situations. It is also the way that new members perceive, think, and feel. As you can see, organizational culture affects the interaction between individuals and groups with clients and with stakeholders. Additionally, organizational culture can have an effect on employees’ identification with the company. Strong cultures are those that align employees with the organization’s values. Because strong cultures have clear values, employees are more likely to embrace them. The opposite is a culture that doesn’t align with organizational values. These must be managed through bureaucratic procedures.

A better alignment of the company to achieve its vision, mission and goals.

Loyalty and motivation of employees are high

Cohesiveness within the company, between departments and among divisions

Encourage consistency and coordination within the company.

Organization efficiency can be improved by changing employee behavior.

USAID has a strong culture. It has helped its staff align themselves with the agency mission. USAID’s culture is built on the following values:

Passion for USAID’s mission: USAID employees share a passion and are fully committed to the agency’s goals. For the advancement and promotion of the agency’s mission and goals, employees are spread across different continents and sectors.

Excellence: USAID employees always strive for excellence in operations and mission impact. They are proud of their achievements.

Collaboration: USAID employees come from many backgrounds and have different perspectives. So, employees of USAID collaborate regardless their titles or positions to ensure that everyone feels empowered and able to contribute.

USAID encourages openness and facilitates honest conversations between employees, partners and other stakeholders. This is to ensure we receive honest feedback about our work.

Flexibility and Dynamic: Employees need to be able to adapt to new challenges.

Inclusion: This agency works to promote equality and foster equal opportunities.

Integrity: The agency is fair and ethical with its partners and colleagues. It also builds trust relationships.

Charles Handy was a leader in the field of organizational culture. He defined four types culture.

Power Culture: Only a few people can have major decision-making authority in an organization. The success of employees is more important than the way they do things or the actions they take. This allows for quick decisions and creates strong cultures.

Role: The role of the individual is to delegate authority within a clearly defined structure. It is hierarchical and tightly controlled. Everyone in the company knows what their roles are and what their responsibilities are.

Task: Teams form to solve specific problems. The team must have the required expertise to obtain power. Each power source team cannot work alone on a single objective

People culture: Individuals believe they are better than the organization. People with the same background and expertise are found. This is common for firms that specialize in certain professions. For example, accountants and lawyers with power residing inside each person.

Handy’s role-culture best describes the culture at USAID. It is highly structured and hierarchical. The roles of employees are clearly defined and they know what their tasks are. This is the best way to make a large company efficient.

They described the rituals and rites associated with corporate life in their 1982 book Corporate Culture. Six interconnected cultural elements, including history, values, beliefs and rituals, are the foundation of corporate culture, according to the authors. Stories, heroes and a network of cultural contacts are some other examples. Terrence and Allan Kennedy identified four kinds of cultural organizations. These are the following:

Tough guy/macho is a good trait for organizations that place more emphasis on the individual than the group. It’s an environment where everyone strives to be a star. They are able to take risks and receive quick feedback about their decisions. This culture can be found in entertainment and sports.

Workplace/play hard: Ideal for sales employees who are willing to take on high-risk jobs, but get immediate feedback on their performance. The team performance is the most important aspect of any company. It isn’t possible for one person to make it successful, but the group effort.

Bet on your company: In this culture, decisions are high-risk and employees might wait years to see if their actions have paid off. This includes oil and gas companies, pharmaceutical firms, and capital-intensive projects. Because decisions are important, values must be long-term focused. There is a collective belief that planning, preparation, and due diligence should be done at every stage of decision making.

Process: There is a slow feedback process and low risk. These are the most common types of organizations. Each transaction is insignificant. It can take years to determine if a decision was right or wrong. It is difficult for employees to get feedback immediately so they concentrate on the process. Technical excellence and attention to detail are valued, as well as technical excellence. However, it is not possible to measure the outcome.

Handy’s role-based culture is an example of a highly hierarchical, bureaucratic organization. The process model best describes USAID’s structure and system. It has long-term targets and objectives in areas such end extreme poverty and improve the wellbeing of vulnerable populations. The emphasis of the process agreed upon by stakeholders is important because it involves significant partnership and commitment to different governments and Non-Governmental Organizations or NGOs. The definition of metaphor is, broadly speaking, “the application a name, descriptive term or phrase on an object or act to which it’s imaginatively but non-literally applicable”. (Canadian Oxford Dictionary, 2004). Metaphor is a method of creating meaning that allows us to see the commonality between two phenomena. Thus the idea that “the organization is a machine” finds machine-like qualities in organization…Metaphor makes meaning in a primal way; its role is not just embellishment (Morgan, 1983, 602). Organizations are understood as brains, machines, brains and cultures. (Llewelyn, 2003). A metaphor allows an object’s perception and understanding from another.” (Alvesson, 1993). Metaphors may invoke either a positive or neutral view of culture. Clan metaphors are a type or family-like organization that encourages mutual respect and adherence to common values and goals. Ouchi (1980), describing clan culture, says it is the same core values Ouchi outlined earlier that permeate the company. It holds people together as a clan. This culture is used to indoctrinate and train people. On the downside, there are aspects of culture as a disease (ketsde Vries, Miller, 1984). People obey managers unquestioningly in a setting they might not be comfortable with (BSN Course NOTES, 2011:627)

Alvesson (1993), believes that organizational cultures research should examine how culture connects to “work activities and interpersonal relationships” or, in simpler terms, “to social-material reality”(BSN Course Notes 2011, 628). The social side is as important as the economic aspect in order to motivate employees. It is important to have a well-furnished office and flexible work hours. However, understanding the impact of these cultures on work and social relationships will improve efficiency and effectiveness. Many factors influence the culture of an organization and how it is shaped. Culture is the norm. It’s how we live our lives. They have no control over environmental factors. An example of this is the legal, socio-economic and political structure in a country. This has an effect on organizations operating there. The other factor is the internal environment. This includes factors such as leadership, management style or reward structure. Wolf (1982), argued that culture can best be understood as an open system, in which people interact with each other and which are “variously connected with larger social fields”. Alvesson (1993), believes that the environment is what determines the pace of change. USAID’s activities are shaped by the Nigerian political, economic, and social structures. USAID’s policies and projects are inclusive, as Nigeria is home to many ethnic groups. USAID’s desire to empower the most vulnerable and make society more socially and economically sustainable has been fuelled by the absence of basic amenities such a school or healthcare in many of its countries. USAID has made Nigeria transparent in its operations and is now accountable. Management effectiveness and organizational change are synonymous. Every organization’s environment is changing. The organization must be flexible and adaptable in order to survive. Peters and Waterman (1982) state that culture is the most important thing an organization must change. There are four options for change in the MAOC, as outlined by (Bate 1990) and (Kirkbridge 1993).

Conciliate is a gentle and bottom-up approach to change. This is helpful when changes are not necessary. It can be slow and costly.

The aggressive approach promotes a top-down, hard-to-implement change. Proponents of this approach argue that it is the only way to make a real difference in crisis situations. It is not flexible, which is a major drawback.

Indoctrination is a soft, top-down approach to change. It is designed to influence people’s opinions through indoctrination and training. Dissenters are called “disloyal”. or worse.

Style of change in the corrosive style is difficult and top-down. People should be given new tasks, responsibilities, or positions to improve their behavior. Culture will change if there are changes in behavior.

Bates (1990), believes change is more episodic or stage-based than gradual evolution. Each stage needs its own method. To switch between them, one must use the same method. USAID applies an indoctrination approach when driving change. There is very little consideration given to switching methods as the stages move. MAOC offers great potential for managing change. An understanding of the stages is key to determining the best way to implement it.