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Unformatted text preview: ProFile 1 UNIT 2 Organizations and roles
THREE ORGANIZATION TYPES
Typically, there are three types of business
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
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
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
Dionysius represents the existential culture. In
this system, management serves individuals
within the culture. e.g. partnerships of doctors
(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
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: www.oup.com/elt/profile 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.
- Spring '10