Unit V

The organization system

Definition

An organization system refers to the structure and arrangement of

elements within an entity, whether it's a company, government agency,
non-profit organization, or any other group with a defined purpose. The
way an organization is structured and organized significantly influences
its efficiency, communication, and overall effectiveness.

Here are key aspects of an organization system:

1. Organizational Structure:

 Hierarchical Structure: This is a traditional pyramid-shaped structure

where authority and responsibility flow from the top down through
various levels.

 Flat Structure: In contrast to a hierarchical structure, a flat structure

has fewer levels of management, promoting a more decentralized
decision-making process.

 Matrix Structure: In a matrix organization, employees have dual

reporting relationships - typically functional and project-based.

2. Departmentalization:

 Organizations often divide their operations into departments based on

functions such as marketing, finance, human resources, and
production. This is known as functional departmentalization.

 Other methods of departmentalization include product or service,

geographic location, or customer type.

3. Chain of Command:

 This refers to the formal line of authority and communication within

an organization. It establishes who reports to whom and the flow of
decision-making.
4. Span of Control:

 This refers to the number of subordinates a manager can effectively

supervise. A wide span of control indicates fewer levels of
management and more employees reporting to each manager.

5. Centralization vs. Decentralization:

 Centralization concentrates decision-making authority at the top

levels of management, while decentralization disperses authority
across various levels. The choice between the two depends on factors
like the organization's size, industry, and culture.

6. Formalization:

 This pertains to the extent to which an organization's policies,

procedures, and processes are documented and followed. High
formalization means there are clear rules, and low formalization
implies more flexibility.

7. Communication Flow:

 Communication can be upward, downward, or lateral. Effective

organizations establish clear channels for communication to ensure
that information flows efficiently.

8. Organizational Culture:

 The shared values, beliefs, and practices within an organization

contribute to its culture. A healthy organizational culture can enhance
teamwork, employee morale, and overall productivity.

9. Job Design:

 How jobs are structured, including the division of tasks,

responsibilities, and the overall design of the work, impacts employee
satisfaction and performance.

10. Change Management:

 Organizations need systems to adapt to change, whether it's in

response to external factors or internal needs. Change management
involves planning, implementing, and sustaining changes effectively.
11. Technology and Information Systems:

 Modern organizations heavily rely on technology and information

systems to streamline processes, enhance communication, and support
decision-making.

12. Performance Management:

 Establishing systems to set goals, assess performance, and provide

feedback is crucial for employee development and organizational
success.

In summary, an effective organization system aligns its structure,

processes, and people to achieve its goals and adapt to a dynamic
environment. The choice of a specific organizational system depends on
factors such as the organization's size, industry, goals, and external
environment. Successful organizations often evolve their systems to stay
competitive and responsive to change.

Organizational Culture

Definition

Organizational culture refers to the shared values, beliefs, customs,

attitudes, and behaviors that characterize an organization. It is essentially
the personality of the organization and plays a crucial role in shaping how
members within the organization interact with each other and with
external stakeholders. Organizational culture influences various aspects
of the workplace, including decision-making, communication, teamwork,
and overall organizational performance.

Key components of organizational culture include:

1. Values and Beliefs:

 Core Values: These are the fundamental principles that guide the
organization's behavior. They often reflect what the organization
stands for and its priorities.

 Beliefs: These are the shared convictions or acceptances about what is

true or right within the organization.
2. Norms and Practices:

 Norms: These are the unwritten rules or expectations for behavior

within the organization. Norms can influence how employees dress,
communicate, and collaborate.

 Practices: These are the established ways of doing things within the
organization. They can include formal policies as well as informal
routines.

3. Symbols and Rituals:

 Symbols: These are tangible representations of the organization's

culture, such as logos, mission statements, or even physical office
spaces.

 Rituals: These are repeated behaviors or activities that hold special

meaning within the organization, fostering a sense of unity and
identity.

4. Language:

 Jargon: Organizations often develop their own unique language or

terminology that reflects their values and priorities. This can create a
sense of belonging among members.

5. Leadership Style:

 Leadership Values: The values and behaviors exhibited by leaders

have a significant impact on organizational culture. Leaders set the
tone and serve as role models for the rest of the organization.

6. Socialization and Onboarding:

 Onboarding Processes: The way new employees are introduced and

integrated into the organization can shape their understanding and
adoption of the organizational culture.

 Socialization: The process through which individuals learn and

internalize the values and norms of the organization.
7. Employee Engagement:

 Teamwork and Collaboration: The degree to which employees

collaborate and work together reflects the culture of the organization.

 Employee Engagement: The level of commitment, enthusiasm, and

connection employees have with their work and the organization.

A healthy and strong organizational culture can contribute to increased

employee morale, improved performance, and a positive workplace
environment. However, if there is a misalignment between the stated
values and actual behaviors, it can lead to cultural challenges and may
affect the overall success of the organization. Organizations may actively
work on shaping and evolving their culture over time to adapt to changes
in the internal and external environment.

Functions of organizational culture

Organizational culture refers to the shared values, beliefs, customs,

behaviors, and practices that characterize an organization. It is the social
fabric that shapes how people within an organization interact with each
other and how they approach their work. The functions of organizational
culture are numerous and play a crucial role in influencing the overall
success and effectiveness of an organization.

Here are some key functions:

1. Provides Identity and Unity:

 Shared Beliefs and Values: Culture establishes a common set of

beliefs and values that employees can identify with, creating a sense
of unity and belonging.

 Organizational Identity: It gives the organization a distinct identity,

helping employees understand what makes their organization unique.

2. Shapes Behavior:

 Norms and Expectations: Culture sets the norms and expectations for
behavior within the organization, guiding employees on how to act in
various situations.
 Social Control: It acts as a form of social control by influencing and
regulating the behavior of individuals and groups within the
organization.

3. Defines and Reinforces Core Values:

 Mission and Vision Alignment: Culture reinforces the alignment of

individual and team goals with the organization's mission and vision.

 Ethical Standards: It establishes ethical standards, promoting a sense

of integrity and responsibility among employees.

4. Enhances Communication:

 Common Language: Culture provides a common language and

understanding, facilitating effective communication among
employees.

 Communication Style: It influences the way information is shared, the

level of formality, and the channels of communication within the
organization.

5. Shapes Decision-Making:

 Decision-Making Processes: Culture affects decision-making

processes by influencing the degree of centralization, collaboration,
risk-taking, and adaptability within the organization.

 Risk Tolerance: The culture's attitude toward risk can influence the
willingness of individuals and teams to take calculated risks.

6. Drives Employee Engagement:

 Motivation and Commitment: A positive and strong culture can

contribute to higher levels of employee motivation, satisfaction, and
commitment to the organization.

 Employee Well-Being: It can impact the overall well-being of

employees by fostering a supportive and inclusive work environment.

7. Affects Organizational Adaptability:

 Innovation and Change: Culture influences the organization's ability
to innovate and adapt to change. A culture that embraces learning and
change is more likely to thrive in dynamic environments.
 Flexibility: It determines the organization's flexibility in responding
to external challenges and opportunities.

8. Attracts and Retains Talent:

 Employer Branding: A strong and positive culture can serve as a

powerful tool for attracting and retaining talented individuals.

 Employee Satisfaction: Satisfied employees are more likely to stay

with the organization, contributing to lower turnover rates.

9. Influences Customer Relationships:

 Customer-Centric Culture: The way employees treat customers is

often influenced by the organization's culture, impacting customer
satisfaction and loyalty.

10. Shapes Organizational Rituals and Traditions:

 Ceremonies and Celebrations: Culture gives rise to rituals,

ceremonies, and traditions that help reinforce the organization's
values and foster a sense of community.

In summary, organizational culture is a dynamic and influential force

within an organization that shapes behavior, communication, decision-
making, and overall effectiveness. A well-crafted and positive culture can
contribute significantly to the success and sustainability of an
organization.

Creating and sustaining organizational culture

Creating organizational culture

Creating and shaping organizational culture is a multifaceted and ongoing

process that involves a combination of leadership, communication,
values, and behaviors. Organizational culture refers to the shared values,
beliefs, attitudes, and behaviors that characterize a company and
influence how its members interact and work together.

Here's a more detailed exploration of creating organizational culture:

1. Define Core Values:

 Leadership Involvement: Leaders play a crucial role in shaping

culture. They need to define and embody the core values that align
with the organization's mission and vision.

 Employee Involvement: Solicit input from employees to identify

values that resonate with them. This inclusion helps build a culture
that is authentic and embraced by the entire organization.

2. Communicate Vision and Values:

 Consistent Messaging: Leaders should consistently communicate the

organization's vision and values through various channels. This
includes internal communication, meetings, and other platforms
where employees can absorb the cultural message.

 Storytelling: Use stories and examples to illustrate the desired culture.

This helps employees understand how the values translate into daily
behaviors and decision-making.

3. Hire and Develop Based on Culture Fit:

 Recruitment: Select candidates whose values align with the

organizational culture. Skills and experience are crucial, but cultural
fit is equally important for long-term success.

 Training and Development: Invest in programs that reinforce the

desired cultural behaviors. This includes leadership development,
team-building activities, and continuous learning opportunities.

4. Encourage Open Communication:

 Feedback Mechanisms: Establish mechanisms for employees to

provide feedback on the organizational culture. This can include
surveys, focus groups, or regular one-on-one discussions.

 Transparent Communication: Foster a culture of openness and

transparency. When employees understand the reasoning behind
decisions, they are more likely to align with the organization's values.
5. Recognition and Rewards:

 Recognition Programs: Acknowledge and celebrate behaviors that

align with the desired culture. This could be through formal
recognition programs, praise in team meetings, or other forms of
acknowledgment.

 Align Incentives: Ensure that performance metrics and incentives are

aligned with the organization's values. This encourages employees to
embody the cultural principles in their day-to-day work.

6. Address Misalignment:

 Course Correction: If there are aspects of the culture that are not
aligning with the desired values, leaders should be proactive in
addressing these issues. This might involve adjusting policies,
providing additional training, or taking corrective actions when
necessary.

7. Promote Flexibility and Adaptability:

 Evolution of Culture: Recognize that organizational culture is not

static. It should evolve to meet the changing needs of the organization
and its environment. Encourage adaptability while maintaining core
values.

8. Lead by Example:

 Behavior of Leaders: Leaders set the tone for the entire organization.
Their actions and decisions should consistently reflect the desired
culture. When leaders embody the culture, it becomes more ingrained
throughout the organization.

9. Invest in Employee Well-being:

 Work-Life Balance: Promote a healthy work-life balance to prevent

burnout and stress. This contributes to a positive culture where
employees feel supported and valued.

10. Measure and Assess:

 Key Performance Indicators (KPIs): Develop KPIs that reflect the

organization's cultural health. This could include employee
 satisfaction surveys, turnover rates, and other metrics that indicate the
effectiveness of cultural initiatives.

Creating and maintaining a strong organizational culture is an ongoing

process that requires commitment from leadership, continuous
reinforcement, and a genuine belief in the values that define the
organization. It's not just about what is said but, more importantly, about
what is consistently done and valued throughout the organization.

Sustaining organizational culture

Sustaining organizational culture involves preserving and nurturing the

values, beliefs, behaviors, and overall identity that define a company.
Organizational culture is a critical aspect of any business as it influences
how employees interact, make decisions, and work towards common
goals.

Here are some key considerations for sustaining organizational culture:

1. Leadership Alignment:

 Leadership plays a crucial role in shaping and sustaining

organizational culture. Leaders should embody and promote the
desired values and behaviors.

 Ensure that leadership decisions and actions align with the cultural
values, setting an example for the rest of the organization.

2. Communication:

 Effective communication is essential for maintaining a strong

organizational culture. Leaders should consistently communicate the
company's values, mission, and goals to employees.

 Regularly share success stories, reinforce positive behaviors, and

address any issues that may arise to maintain transparency and trust.

3. Employee Engagement:

 Involve employees in the process of defining and refining the

organizational culture. Solicit their input, and encourage open
dialogue to understand their perspectives.
 Foster a sense of ownership and pride among employees by
recognizing and rewarding those who exemplify the desired cultural
traits.

4. Onboarding and Training:

 During the onboarding process, new employees should be introduced

to the organization's culture. This includes an understanding of
values, norms, and expected behaviors.
 Continuous training programs can reinforce cultural expectations and
help employees align their actions with the organization's values.

5. Adaptability and Evolution:

 Recognize that organizational culture may need to evolve over time to

meet the changing needs of the business and its environment.
 Embrace a culture of adaptability, where the organization can respond
to external changes while maintaining its core values.

6. Performance Management:

 Integrate cultural alignment into performance management processes.

Acknowledge and reward employees who contribute positively to the
culture.
 Address any deviations from the desired culture through constructive
feedback and development plans.

7. Crisis Management:

 During times of crisis or change, leaders should be mindful of the

impact on organizational culture. Communicate clearly, provide
support, and make decisions that are consistent with the cultural
values.

8. Measuring and Assessing Culture:

 Regularly assess the organization's cultural health through surveys,

feedback mechanisms, and performance metrics.
 Use the data collected to identify areas for improvement and track
progress in sustaining the desired culture.
9. Inclusivity and Diversity:

 Foster an inclusive culture that values diversity. Embrace different

perspectives and ensure that the organization's culture is reflective of
a variety of backgrounds and experiences.

10. Recognition and Celebration:

 Celebrate milestones, achievements, and cultural successes. This

reinforces the positive aspects of the culture and creates a sense of
shared identity among employees.

Sustaining organizational culture requires ongoing effort and

commitment from all levels of the organization. It's a dynamic process
that should be integrated into the day-to-day operations and long-term
strategic planning.

Employees and work culture

Employees and work culture play crucial roles in shaping the overall
environment and success of an organization. The relationship between
employees and the work culture within a company can significantly
impact productivity, job satisfaction, and the organization's ability to
achieve its goals.

Let's elaborate on both aspects:

EMPLOYEES:

Diversity:

 Employees bring diverse backgrounds, skills, and experiences to the

workplace.
 A diverse workforce can contribute to creativity, innovation, and a
broader range of perspectives.

Skills and Expertise:

 Employees contribute their unique skills and expertise, which

collectively form the skill set of the organization.
 Ongoing training and development are crucial to keep employees'
skills relevant and up-to-date.
Engagement and Motivation:

 Engaged employees are more likely to be motivated, committed, and

productive.
 Recognition, rewards, and a positive work environment contribute to
higher employee engagement.

Communication:

 Effective communication is essential for a healthy work environment.

 Regular feedback, transparent communication, and open channels
enhance collaboration and understanding.

Teamwork:

 Teamwork is often essential for achieving organizational goals.

 Employees need to collaborate effectively, share information, and
work towards common objectives.

Work-Life Balance:

 A healthy work-life balance is crucial for employee well-being.

 Organizations that prioritize work-life balance often have more
satisfied and loyal employees.

Leadership:

 Leadership plays a key role in guiding and inspiring employees.

 Effective leaders foster a positive work culture and provide direction
for the team.

WORK CULTURE:

Values and Mission:

 Work culture is often shaped by the values and mission of the

organization.

 Shared values create a sense of purpose and direction among

employees.
Communication and Transparency:

 A transparent and open communication style fosters trust within the

organization.

 Employees are more likely to be engaged when they understand the

organization's goals and strategies.

Innovation and Adaptability:

 A culture that encourages innovation and embraces change is more

likely to thrive in a dynamic business environment.

 Employees should feel empowered to suggest and implement new

ideas.

Inclusivity and Diversity:

 Inclusive work cultures value diversity and create an environment

where all employees feel respected and included.

 This can lead to increased creativity and better problem-solving.

Employee Development:

 Organizations that invest in employee development demonstrate a

commitment to their workforce's growth.

 Opportunities for learning and advancement contribute to a positive

work culture.

Work Environment:

 The physical and virtual work environment impacts employee well-

being and productivity.

 Comfortable, well-equipped spaces contribute to a positive work

experience.

Recognition and Rewards:

 Recognizing and rewarding employees for their contributions
reinforces positive behavior and motivates continued excellence.

 A culture of appreciation can boost morale and job satisfaction.

Flexibility:

 A flexible work culture that accommodates different working styles

and preferences can enhance employee satisfaction and work-life
balance.

In conclusion, the interplay between employees and work culture is

dynamic and symbiotic. Organizations that prioritize both aspects create a
foundation for long-term success, employee retention, and a positive
impact on society.

Influencing an organizational culture

Influencing organizational culture is a crucial aspect of organizational

behavior, as it plays a significant role in shaping the way employees
think, behave, and interact within a company. Organizational culture
encompasses the shared values, beliefs, norms, and practices that define
the identity of an organization. It influences employee attitudes,
performance, and overall organizational success.

Here are some key points to consider when understanding and influencing
organizational culture in the context of organizational behavior:

1. Leadership Influence:

 Leaders play a central role in shaping and reinforcing organizational

culture. Their behavior, communication style, and decision-making
process set the tone for the entire organization.

 Leaders can influence culture by aligning their actions with the

desired cultural values, providing a clear vision, and consistently
demonstrating the expected behaviors.
2. Communication:

 Effective communication is essential for influencing organizational

culture. Leaders need to communicate the organization's values,
mission, and goals clearly and consistently.

 Open and transparent communication fosters trust among employees,

contributing to a positive organizational culture.

3. Reward and Recognition:

 Linking rewards and recognition to desired behaviors reinforces the

cultural values of the organization. Acknowledging and rewarding
employees who embody the desired culture encourages others to
follow suit.

 Recognition programs can highlight and celebrate individuals or

teams that exemplify the organization's cultural ideals.

4. Training and Development:

 Providing training programs that focus on the desired cultural

attributes helps employees understand and internalize the
organization's values.

 Continuous learning opportunities can promote a culture of

innovation, adaptability, and improvement.

5. Recruitment and On boarding:

 Hiring individuals who align with the organization's culture during

the recruitment process is crucial. Employees who share the same
values are more likely to contribute positively to the culture.

 Effective on boarding processes help new employees understand and

integrate into the existing cultural framework.
6. Socialization and Informal Networks:

 Informal interactions, social events, and team-building activities

contribute to the development and reinforcement of organizational
culture.

 Encouraging positive relationships and collaboration within teams

helps strengthen the cultural fabric of the organization.

7. Feedback Mechanisms:

 Establishing feedback mechanisms allows employees to share their

thoughts and concerns regarding the organizational culture. This can
provide valuable insights for leaders to make necessary adjustments.

 Soliciting and acting upon feedback demonstrates a commitment to

continuous improvement and cultural responsiveness.

8. Adaptability and Flexibility:

 Organizations must be adaptable to change and willing to evolve their

culture as needed. A culture that promotes adaptability fosters
innovation and resilience.

In summary, influencing organizational culture requires a strategic and

sustained effort from leadership, involving consistent communication,
alignment of actions with values, and the creation of an environment that
supports the desired cultural attributes. By actively managing and
influencing organizational culture, leaders can positively impact
employee engagement, satisfaction, and overall organizational
performance.

Organizational change

Organizational change in the context of organizational behavior refers to

the process of making significant alterations to an organization's
structure, processes, culture, or strategies. This change can be driven by
various factors such as technological advancements, market shifts,
internal inefficiencies, or the need to adapt to a rapidly changing business
environment.

Understanding organizational change in the realm of organizational

behavior involves examining how individuals, groups, and the
organization as a whole respond to and are affected by the change. Here
are key aspects to consider:

1. Individual Behavior:

 Resistance to Change: Individuals within the organization may

exhibit resistance to change due to fear of the unknown, concerns
about job security, or a reluctance to let go of established routines.

 Coping Mechanisms: Individuals may employ various coping

mechanisms to deal with change, such as denial, anger, or acceptance.
Understanding these reactions helps management anticipate and
address concerns.

2. Group Dynamics:

 Team Dynamics: Changes can impact group dynamics, leading to

conflicts or improved collaboration. Team leaders must understand
how the change affects team relationships and take steps to foster
positive group behavior.

 Communication: Effective communication is crucial during times of

change. Clear and transparent communication helps address
uncertainties, reduce rumors, and gain employee buy-in.

3. Organizational Culture:

 Cultural Shifts: Organizational change often involves a shift in the

existing culture. Leaders need to assess the current culture, identify
desired changes, and implement strategies to instill the new cultural
norms.

 Values Alignment: Ensuring that the new changes align with the
organization's core values helps maintain consistency and credibility.

4. Leadership and Change Management:

 Leadership Styles: The leadership style adopted during change can

significantly impact its success. Transformational leadership that
inspires and motivates employees tends to be effective in managing
organizational change.
 Change Management Strategies: Employing structured change
management methodologies helps organizations navigate the
complexities of change. This includes planning, communication, and
addressing resistance.

5. Employee Engagement:

 Involvement: Involving employees in the change process can foster a

sense of ownership and reduce resistance. Seeking input, feedback,
and providing opportunities for skill development contribute to higher
levels of engagement.

 Recognition and Rewards: Acknowledging and rewarding employees

for adapting to change positively reinforces the desired behaviors.

6. Learning and Development:

 Training Programs: Providing relevant training programs ensures that

employees acquire the skills and knowledge required for the new
processes or technologies.

 Continuous Improvement: Encouraging a culture of continuous

learning and improvement helps organizations adapt to ongoing
changes in the external environment.

In summary, successful organizational change in the context of

organizational behavior involves understanding and addressing the
human side of change. By considering individual, group, and
organizational dynamics, leaders can navigate the challenges associated
with change and create a more adaptive and resilient organization.

Stress management

Stress management in organizational behavior is a crucial aspect that

involves understanding, preventing, and mitigating the negative impact of
stress within a workplace. Stress can arise from various sources, such as
work demands, interpersonal relationships, organizational culture, and
external factors. Effectively managing stress is essential for maintaining
employee well-being, enhancing productivity, and creating a positive
work environment.
Here are some key points to elaborate on stress management in
organizational behavior:
1. Identification of Stressors:

 Organizations need to identify and understand the stressors that

employees may face. These can include heavy workloads, unrealistic
deadlines, lack of control, poor communication, and inadequate
resources.

2. Assessment and Measurement:

 Conducting stress assessments or surveys can help organizations

measure the level of stress among employees. This information is
valuable for identifying patterns and determining the most significant
sources of stress.

3. Workplace Culture:

 The organizational culture plays a significant role in stress

management. A supportive and positive work culture can help buffer
the impact of stress. Encouraging open communication, teamwork,
and a healthy work-life balance contributes to a positive atmosphere.

4. Job Design and Role Clarity:

 Proper job design, clear roles, and responsibilities are essential in

preventing stress. Employees should have a clear understanding of
their tasks and expectations. Ambiguity and role conflict can
contribute to stress, so clarity in job roles is crucial.

5. Training and Development:

 Providing employees with the necessary skills and training can help
them cope with job demands more effectively. This may include time
management, communication, and resilience training to enhance
employees' ability to handle stressors.

6. Employee Involvement:

 Involving employees in decision-making processes and seeking their

input on matters that affect them can empower them and reduce
stress. Feeling valued and included in the decision-making process
enhances job satisfaction and lowers stress levels.
7. Flexible Work Arrangements:

 Offering flexible work arrangements, such as telecommuting or

flexible hours, can contribute to better work-life balance. This
flexibility can help employees manage personal and professional
responsibilities more effectively, reducing stress.

8. Support Systems:

 Establishing support systems within the organization, such as

employee assistance programs (EAPs), counseling services, or
mentorship programs, provides employees with resources to cope
with stress.

9. Communication Channels:

Open and effective communication is crucial for managing stress.

Creating channels for employees to express concerns, provide feedback,
and seek help fosters a healthy work environment.

10. Recognition and Rewards:

Recognizing and rewarding employees for their efforts and achievements

can boost morale and reduce stress. Feeling appreciated contributes to job
satisfaction and overall well-being.

In summary, stress management in organizational behavior involves a

holistic approach that considers various factors contributing to stress and
implements strategies to prevent, mitigate, and cope with stressors. A
well-managed and supportive workplace promotes employee well-being,
engagement, and organizational success.