Organisational Behaviour and Theory Describe and discuss how an organisation’s structure influences its behaviour, with particular emphasis on decision making and workforce management and control. The structure of an organization is so visible and can be so powerful. It influences how well the organisation is able to meet its strategic goals; it can also influence how quickly an organisation can respond to changes.
Usually, structure is the product of decision-makers, management decision-makers determine the level of the workforce, deciding what process they need to adopt and changes they need to make within the organisation. (Unit Guide, Organisational Behaviour and Theory, page 28 – 29) Changes can influence on organisation behaviour dramatically, structure is the first thing to be modified when an organisation seeks changes. Decision making and workforce management is crucial to control it. Unit Guide, Organisational Behaviour and Theory, page 28) There are factors that influence all organisational behaviour; such as, globalisation, workforce, employment relationships, advancement in technology and organisational ethics and values (Unit guide, Organisational Behaviour and Theory, page 20). Structure perhaps is the most tangible aspect of management. Structure incentive to improve action, so the designer can direct and control the behaviour of those people who are willing to subordinate themselves to the structure.
Structure also allocates responsibility and authority to exercise decision making. The organisation can be structured in many ways, and those structures can influence its behaviour (Unit guide, Organisational Behaviour and theory, page 28). The way organisation is structured sends powerful messages to both internal and external stakeholders (Unit guide section 2, organisational structure and design, pg 29). * The functional structure is the most primitive structure, the whole organisation is focus on a single market, and it best suits an undiversified firm.
Because they have a single product category, the most important coordination task is that of the production creation. Individual units can suffer overload, and it’s an issue, so it forces to develop units of competency that fits the needs of different markets for each product eventually leading to a restructure with a product focus (Contemporary issues in management and organisational behaviour, page 8). * The product focuses structure; centre of attention in each divisional manager is responsible to develop strategies to allow the division and its product to compete with their market.
The great advantage of this model is the ability of divisional director to accumulate expertise on the product also to respond the needs of respective markets (Contemporary issues in management and organisational behaviour, page 8). * Another way to set up a organisation is to develop the geographic structure, it’s used by organisation that have customers in different regions, some companies might choose to move into a new country by establishing a partnership with a local distributor; once business is well established the company might try to buy the distributor.
It all depends on the terms of the contract; maybe it allows taking the action (Unit guide, organisational Behaviour and Theory, page 36). * The Matrix structure is often used by large global organisations; the matrix allows people from different functional divisions with associated areas of expertise to come together on the same project. I can overcome the difficulties of poor communication and coordination often found in other structures (Unit Guide, Organisational structure Behaviour, page 37).
Consequently, organisation can set goals based on types of structures, sometimes these structures need to change to achieve goals and it acquires some decision makers to come up with ideas. There are three types of theories that concern decision making to continue to have large influence, they are: (Contemporary issues in Management and Organisational Behaviour, page 138). * The rational model The rational model generally assumes that group make judgements that are logical and internally consistent with their goals and preferences (Murray et al, 2005).
This means that their choices will have the maximum subjective expected utility among the available alternatives (March $ Simon 1958; Savage 1954). There are 5 steps for a rational decision making. Identify the problem, is the first step, the decision maker receives the difficulty and forms a clear definition of it, diagnosis the facts. Analyse what is causing the event, when did it happened? Is the issue urgent? (Contemporary issues in management, page 140). Alternatives solutions, the most important thing ere is to the decision maker understand all alternatives, including alternatives that must be custom made than picked on the shelf (Contemporary issues in management, page 142). All alternatives to be evaluated that’s the third step on rational decision making, it’s to make sure that the decision maker collect information about all meaningful attributes (Contemporary issues in management, page 142). Select the optimal choice, fourth step, collect the alternative that establishes a huge assistance to the decision maker. The decision maker selects the alternative with the maximum importance or valence.
This valence is a product of the expected valence of outcomes of the alternatives and probability of each outcome occurring (Contemporary issues in management, page 143). The final step is to implement alternative. Decision makers can implement the choices for themselves or strongly communicate the choice ad goals to people who are well motivated to make sure the choice is successful (Contemporary issues in management, page 142, Exhibit 6. 2). In addition, we can evaluate or feedback, decision makers can find out if their decision has solved the problem. It can discover if it has being a failure or a success.
Feedback provides decision makers a clear understanding about their actions; it can facilitate a new decision in the future (Contemporary issues in management, page 142, Exhibit 6. 2). * Bounded rationality Bounded rationality is an administrative model for decision making developed by, Herbert A. Simon. His theory, referred to as bounded rationality, won him the Nobel Prize in 1978 (Unit Guide, section 8 organisational decision making, page 139). Simon used to say that managers don’t have the enough time or capacity to develop complex decisions, they must ‘satisfice’.
Satisfying means that decision makers choose the first solution alternative that satisfies minimal decision criteria. * The dual process paradigm The dual process paradigm acknowledges that emotions shape the way we make decisions. It’s being developed by Robert Zajonc in 1980; Zajonc suggested that people develop preferences for things that influence our decisions. He explained that we sometimes experience emotional preferences towards an object on our needs. (Contemporary issues in Management and Organisational Behaviour, page 164, chapter 6). Employees are one of the most important things in an organization.
They are the ones that take responsibilities, make decisions, and receive information, find solutions to resolve problems also develop new ideas to achieve success of the company. Employees have certain moral rights, including the right of every person to be given equal opportunity in the workplace. ( Contemporary issues in Management and Organisational Behaviour, page 64,chapter 3) It is also important to remember that employees always have to be motivated to work, some companies give rewards to workers when they perform well at work, they may receive praise from their managers.
Therefore, the manager has to collect information to be able to gain an understanding of what people typically need what they want, value and prefer to do within work settings. It can make a huge positive impact on the organization. (Unit Guide, Organisational Behaviour and Theory page 98) Nowadays, diversity in workplace is common; types of diversity, primary dimension on the workplace such as, gender, race, age and sexual orientation represent personal characteristics that influence someone’s self identity.
Second dimensions such as carrier responsibilities, weight, socioeconomic background, levels of education and so on, are those features that we learn or have some control over throughout our lives. Australia has had many immigrants coming into the country between the years 2000 and 2010; Australia has the most diverse workplaces in the world and it is positive; diversity in a work force brings advantage to an organisation by allowing it to access new markets. (Contemporary issues in Management and Organisational Behaviour, page 208).
Compared with the situation 25 years ago, there is now much greater diversity in the employment patterns of Australian families. Two trends are of particular note: the increase in the labour force participation rate of women in couple families and the increase in unemployment of family members. Between 1971 and 1991, the labour force participation rate for married women aged 35-44 years increased from 41 per cent to 71 per cent. The increases at other ages were from 33 per cent to 61 per cent for wives aged 25-34 years and from 36 per cent to 63 per cent among those aged 45-54 years.
Much of the increase, however, was in part-time work. (Reference FAMILY MATTERS no. 37 April 1994, pp. 6-12) The workforce’s organisations today are very different from that of 30 or 40 years ago. At the moment, workforce in Australia has a great participation by women, and great acceptance of the retention of older workers. A steep increase in female employees may require a new personnel policy distinguished from a traditional male-oriented personnel policy.
Female employees needs a new personal policy, they need flexible working hours to meet the various requirements of looking after a family and maintaining a healthy work – balance (Unit guide, Organisational Behaviour and Theory, page 22) Each of those demographic factors can influence how organisation behaves. However, diversity can cause trouble, often employees are discriminated against in that their ideas are either quickly suppressed or only applied in relation to a particular group for a specific niche market. It can create education and training issues as well as posing potential cultural and political conflicts. Unit Guide, Organisational Behaviour and Theory, page 22) To protect the employees against discrimination, there are some legal dimensions, an organization social responsibility and workplace diversity includes federal and states regarding discrimination in the workplace. (The federal legislation, for instance, includes sex discrimination Act 1984, Racial Discrimination Act 1975, Disability Discrimination Act 1992, Age Discrimination Act 2004, Human Rights and Equal opportunity Act 1986, Equal Opportunity for women in the workplace ct 1999) (www. austliii. edu. au).
Therefore, there are many effects that can influence the organizational behaviour; there are many actions that the organisation can choose to find some solutions, which one is the best? Which one is going to make the company achieve the best goal saving time and some research? It will depend in what type of organisation structure you are in, setting goals to develop the solution. In relation to the facts discussed above, organisation structure influences its behaviour based on decisions that managers and/or CEOs implement, such as, workforce, globalisation, technology and more.
In addition, workforce or employees must be motivated to work at all time. Managers expect a great deal from their organisation. At the present time, diversity is common and the organisation has to manage decisions to increase the effect on the workforce. Organisations operating in highly competitive environments with unstable equilibriums need to develop structures that create both order and enhanced flexibility. REFERENCE LIST Unit Guide… Book… Website… Etc….