Organization and Management - Essay Example

Organization and Management Introduction Organizations apply organizational theory in different manners. This is what separates their operations from that of their competitors or even complementing businesses within the same industry. Some of the different aspects of organizational theory that are found to be different among organizations include organizational culture, organizational structure and design, and approach to teamwork and teamworking (Gerth & Mills, 2004, p. 149). The differences exist because of the fact that different organizations have different objectives and that they operate in different environments. This paper compares two organizations in terms of their approaches to three aspects of organizational theories. The comparison will be based on their approach to teamwork and teamworking, organizational structure and design, and organizational culture. Comparison of approaches to teamwork and teamworking Public and private organizations have been similar in embracing the different organization theories. According to Robbins & Judge, (2010, p. 23) organizations have embraced the scientific management theory by trying to apply all the eleven principles of scientific management. Biogenia plc divides tasks and assigns workers that have skills in performing specific task only. The organization emphasizes on assigning different tasks to workers according to their best ability and academic credentials. This can be referred to as division and specialization of labor. It’s the most common principle of management. Applying division and specialization of labor has been facilitated by the availability of knowledge and skills among the workers. This has enabled organizations to assign tasks to workers according their skills and abilities. The bureaucracy theory developed by Max Weber is also applied in managing both public and private organizations. These organizations have created hierarchical levels that enable them assign authority to each level. However, the top level management has more authority compared to the lowest level. Information in such organizations flows upwards whereas directives flow downwards. However, the bureaucratic theory is hindered by its nature of delaying the process of making decisions. All the hierarchies are involved in decision making thus it takes a long time to approve an action. This is the case of Biogenia plc where teams are designed on the basis of their position in the hierarchy of management. The administrative theory as developed by Henry Fayol emphasizing the importance of the functions of management including planning, organizing, controlling, coordinating and commanding. Public and private organizations apply the functions of management in their daily operations. These organizations are structured around the five functions of management. The application of the principles of management has been promoted by the close relationship among the functions of management. However, Sleepeasy has little application of the five principles of management which has led to the company lacking a team. Employees are hired on the basis of part time and there are formal processes that make it difficult for managers to fulfill the principles of management. Comparison of organizational structure and design In an organization, workers are the most important between the system and workers. Classical organizational theories were centered on tasks rather than the human aspect of workers. Workers were viewed as parts of a machine that played a significant role in the running of the business. All the organizational theories aimed at finding the best way of managing resources especially human resources in order to improve their efficiency and effectiveness in the production process of the organization. The organization is in itself run by workers who operate machines or work manually. It is in this respect that Maslow Taylor developed the Maslow’s hierarchy of needs to emphasize on the need to satisfy the needs of personnel in order to improve productivity. In any organization processes, formal processes are more important than the informal processes. Biogenia plc has adopted the use of formal processes that are based on rules and procedures. Formal processes have structures that make them definite. Every action in the company’s formal processes follows predetermined procedures and a chain of command. According to March (1959), formal processes emphasize on communication and cooperation of efforts in order to achieve the goals of the organization. Communication is encouraged between the workers and management. The formal processes support the movement of information from workers to the management, and the flow of instructions from managers to subordinate workers. This ensures that there is no duplication of processes due to indefinite lines of instructions. In the case of Sleepeasy Hotels, there is the use of informal processes in managing the operations of the company. This is evident in its recruitment exercise which mainly done by word of mouth. The company’s processes are loosely defined and the organization does not follow clearly defined procedures. Work schedules are determined on an hourly basis and there is no clear direction on how employees are required to accomplish tasks. This has led to the employment of part time staff members who work using flexible schedules that allow them report to work at different times. According to Max Weber, there is a difference between power and authority. He defined power as “the ability of an actor to realize his or her will in a social action, even against the will of other actors,” (Gerth & Mills, 1964). Power thus refers to the ability to command resources even against the will of the subjects. Power varies in different contexts such as social, political and economic contexts. He argued that power can be exercised through force in order to get compliance from subjects. Max Weber also developed the definition of authority as the ability to influence the cooperation of individuals towards a desired action. He argued that authority can be noted in three forms including, traditional, charismatic and legal authority. Sleepeasy emphasizes more on power because the employees of the company are under the obligation to meet the demands from managers or get fired. The complexity of the matter is compounded by the fact that employees are employed on a part time. Sleepeasy applies the use of traditional authority where there is influence over subjects based on customs and myths. Such powers are passed from one generation to another and include religious, sacred and spiritual powers. It is rare to question traditional authority and it may end up being dictatorial. According to Max Weber “traditional authority leads to the creation and preservation of inequality,” (Gerth & Mills, 1964). On the other hand, Biogenia plc applies the use of charismatic authority which arises from an individual’s personal qualities attract and influence the subjects. The company has charismatic leaders who have so much influence that what their orders are followed to the latter. The leaders majorly posses unique intellectual ability as evidenced by their academic qualifications. Most of the employees have a minimum of an undergraduate degree. Biogenia plc also has legal authority which is based on laws established by a political institution. Such powers are designed and protected by the law. The leader has a right to power and authority. Since the company is registered as public limited company, there are some laws that protected the leadership of the organization unlike the case of Sleep easy where the company is private. There are two types of organizations from the case studies and they consist of mechanistic and organic organizations. Biogenia plc has a mechanistic organization that is characterized by bureaucracy and hierarchies. The structure of such an organization is characterized by a central authority that issues instructions, formal actions and practices. The company also has specialized functions within the organization. Such features of Biogenia plc make it straightforward and easy to manage. Sleepeasy is an organic organization that has the features of informal communications and decentralization (Shafritz, Ott & Jang, Y. 2005, p. 390). The company has low levels of specialization and this is supported by the fact that most of its employees are part-time. However, the company is highly flexible making it adaptive to the environment. The company can operate effectively in a dynamic and unpredictable environment. Comparison of cultures Organization culture is not a zero-sum game between managers and workers. According to March (1959), Organizational culture relates to the behavior of people in the organization. It aims at creating human relations that will drive the organization towards achieving its goals and objectives. An organization bases its foundation on its culture and values. Culture and values establish the kind of leadership and groups in the organization which in turn motivates the employee. When employees are motivated, they increase their work efforts due to job satisfaction. The final result is an increase in the performance of the organization. Both parties of managers and workers will have gained. Organization culture has gained prominence in the recent development in the field of organization theory. According to scholars in the field of organization theory, organizational culture plays a significant role in ensuring the success of any given organization. There are two perspectives relating to the concept of organizational culture including the individual and the organization perspectives (Modaff, DeWine, & Butler, 2011, p. 56). Culture from the perspective of an individual includes the behavior and routines of the person in work setting. However, it is a different scenario for culture from the perspective of the organization whereby cultures includes the collection of behavior and way of working among all the employees to create a unique working environment. This topic can be analyzed in the context of Biogenia plc and Sleepeasy Hotels. Biogenia plc has a collaborative organizational culture that encourages employees to be open, friendly and sharing. The company generally values teamwork and there is participation of employees and building of consensus. This is the overall view of the culture of the organization but it is important to provide details of its culture so as to show any differences when making comparisons. The company has also managed to employee people from different cultural backgrounds like in the case where one employee is from South Africa and the other is from Australia. Sleepeasy Hotels has a different culture characterized by focus on control and achievement of results (March, 2009, p. 122). The management of the company has little interaction with junior employees and this has created some form tension between the two teams. There is also the element of little or no diversification because most of the employees are from the same community. Recruitment is based on word of mouth and there is the tendency of employees bringing their relatives as referrals for employment. It is difficult for members from both groups of managers and workers to self-actualize at the same time. This is because managers and workers are at different levels of management (Robbins & Judge, 2010). According to Maslow’s hierarchy of needs, an individual self-actualizes when he or she gains independence or becomes innovative. In such a case, only managers are independent to make decisions. Workers are supposed to carry out instructions made by managers. This is case with Sleepeasy Hotels where employees only take instructions from the management of the company. The organization has established a culture where The relationship between organization culture and communication is significant in instances where employees or managers want to make changes within the organization. Many studies within organizations have led to the discovery that employees consider communication as an issue. However, many employees have ignored the importance of communication to an organization and have taken the function for granted. Many of the employees have cited communication as the main cause of organizational problems (Gillis, 2011, p. 100). Despite the many instances of ignoring the role of communication within the organization, understanding an organization culture will ensure that a member of the organization to achieve both personal and professional goals. The study of organizational culture also influences organizational goals. Conclusion There is some level of difference between Biogenia plc and Sleepeasy Hotels. Biogenia plc has put a lot of emphasis on teamwork and most of its employees work as a team. This is different in the case of Sleepeasy where emphasis is on individual performance. Biogenia plc has a mechanistic organization that is characterized by bureaucracy and hierarchies whereas Sleepeasy is an organic organization that has the features of informal communications and decentralization. Biogenia plc also has a diverse culture that includes people from different cultural backgrounds. Sleepeasy on the other hand has a monotonous culture whereby most of the employees are from the same community (Daft, 2009, p. 200). However, the differences do not mean that one organization is better than the other but it only shows how the organizations are responding to their working environments. Bibliography Daft, R., 2009, Organization Theory and Design, New York: Cengage Learning. Gerth, H & Mills, C., 2004, From Max Weber: Essays in Sociology, New York: Oxford University Press. March, J., 2009, Modern organization theory, New York: Wiley. Robbins, S. and Judge, T., 2010, Organizational Behavior, London: Prentice Hall. Shafritz, J, Ott, J. and Jang, Y. 2005, Classics of Organization Theory, 6th Ed. Belmont, CA: Thompson-Wadsworth. Read More