organizationsandroles - ProFile 1 UNIT 2 Organizations and...

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Unformatted text preview: ProFile 1 UNIT 2 Organizations and roles THREE ORGANIZATION TYPES Typically, there are three types of business structure. Organization into business units While some functions are dealt with at head office, mostly each product range acts as a different division where each has, say, its own production, marketing, and finance departments. Functional organization There are broad management functions such as marketing, production, human resources, etc. which hold overall responsibility for the entire activity of the firm across the product range. Parent company / subsidiary relationship This is particularly widespread when one company has acquired or taken over others which may have activities in non-related fields. FLATTER HIER ARCHIES Downsizing and making organizations leaner and meaner has been a phenomenon to hit many larger companies. Hierarchies within many organizations have become flatter. There had been a fashion for de-layering, which mostly involves removing levels of middle management and giving workers more responsibility. The main reason for this has been to cut costs: experienced middle managers with many years of experience and accumulated benefits are very expensive to retain. Another reason is to achieve greater efficiency – some layers are simply unnecessary and make the organization over-bureaucratic and unwieldy. CHARLES HANDY AND ORGANIZATIONAL METAPHORS (i) Gods of management. In one extended metaphor he uses in Gods of Management, The Changing Work of Organizations, organization types are matched to different classical gods. Zeus is the strong leader, representing the club culture. In this system, everything depends on the strength of the all powerful leader and the personal relationships he creates. It is paternalistic. Apollo represents rules and order, representing the role culture. In this system, there are clearly defined roles and procedures based on a well-oiled machine. It is bureaucratic. Athena, goddess of wisdom, is used for a matrix organization, representing the task culture. In this system, management is centred on problem-solving and moving between tasks and projects. Dionysius represents the existential culture. In this system, management serves individuals within the culture. e.g. partnerships of doctors or lawyers. (ii) The Shamrock Organization. A second organizational structure described by Handy in The Age of Unreason is the Shamrock Organization. A Shamrock Organization has three different leaves. The first leaf represents the core people in the organization. They are the skilled insiders who understand the aims and objectives of the business. The second leaf represents outside services and professionals. These are functions which can usefully be outsourced. One of the most influential management thinkers is Charles Handy, who uses different metaphors to describe organizational cultures. The third leaf represents the flexible labour force, which can be expanded or reduced according to the needs of the organization. The shamrock is the lucky plant of Ireland, but people who are part of the third leaf may not feel so fortunate! See the ProFile Student’s site: Photocopiable © Oxford University Press ...
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This note was uploaded on 12/12/2010 for the course RBS BCN taught by Professor Dekoe during the Spring '10 term at Rotterdam Business School.

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