informal organization
DESCRIPTION
Describes informal organization, the environment of an organization and an organization's growth and decline.TRANSCRIPT
INFORMAL ORGANIZATION
ENVIRONMENT OF AN ORGANIZATION
ORGANIZATIONAL GROWTH/CHANGE & DECLINE
INFORMAL ORGANIZATION
The behind-the-scenes network is called the informal organization because it is based on voluntary personal relationships rather than on formal authority.
INFORMAL ORGANIZATION
Advantages:Belonging to this sort of informal
network within the organization greatly enhances the individual employee’s reward, expert and referent power.
Accordingly, managers need to build support in the informal organization when trying to introduce changes such as computer system.
INFORMAL ORGANIZATION
Advantages:Managers are advised to monitor grapevine communication quietly through trusted grapevine participants and take steps to correct any seriously misleading information that occasionally comes along.
INFORMAL ORGANIZATION
Disadvantage:This second organization can
seriously hamper a manager who tries to pretend it does not exist and is responsible for much of the resistance to change that managers encounter when implementing new programs and techniques.
ENVIRONMENT OF AN ORGANIZATION
Organizations are open systems that continuously interact with outside environment. The macro-environment of business today has considerable impact on the internal operations of the organization, especially if the organization is a big one.
ENVIRONMENT OF AN ORGANIZATION
System A set of objects, each of which possesses certain attributes and certain interconnections with other parts of the system.
ENVIRONMENT OF AN ORGANIZATION
Supra System Is the environment in which the organization operates: other companies in its industry, the marketplace, its stockholders, the government, the communities surrounding its facilities, the social culture in which it functions and so on.
ENVIRONMENT OF AN ORGANIZATION
Specific Environment General Environment Customers: It is the customer who absorbs
organizational outputs. They represent potential uncertainty to an organization, their taste can change, they can become dissatisfied with organization’s product or service
Competitors: Organizations cannot afford to ignore its competitors. Managers must be prepared to respond to competitors policies regarding pricing new products, services offered and other incentives it is giving to customers
Suppliers: Any party that provides input for the business. E.g financial institutions are provider of money, colleges are suppliers of human resources Managers need to have steady and and reliable flow of inputs to meet the goals
Pressure groups: Managers must recognize the special interest groups that attempt to influence organization
Stakeholder:Any party that is affected by organization’s decisions and policies and that can influence organization
• Economic conditions: It includes the impact of economic factors like Interest rates, inflation, changes in disposable income and the stage of general business cycle e.g when consumer’s incomes fall their confidence about job security declines, they will postpone purchasing anything that is not necessary
Political/legal conditions: Federal, state and local government influence what org can and cannot do
Socio-cultural conditions: Managers must adapt their practices to the changing expectations of the society and their life style
Demographic Conditions: Trends in the physical characteristics of population such as gender, age, level of education, income, geographical location
Technological: It is changing the ways the org are operating, so businesses must address this issue and its impact on performance of organization.
ENVIRONMENT OF AN ORGANIZATION
Subsystem, or individual system, consists of the people in the organization and their behaviour.
ENVIRONMENT OF AN ORGANIZATION
Consider the example below:
Figure I. System Chart of Roosevelt High School
ENVIRONMENT OF AN ORGANIZATION
System
The system into which this evaluation tool was incorporated
was Roosevelt High School. Roosevelt High School is the
Engineering and Technology Learning Center of the HIDOE.
The advancement of technology in education is one of the
goals of the school. One particular goal is to increase critical
thinking skills and cognitive evaluation of the World Wide
Web. The principal and administration, other teachers and
faculty, librarians, and parents directly affect the progress
and development of ideas by providing support to the
students in their endeavors.
ENVIRONMENT OF AN ORGANIZATION
Supra-systemThe suprasystem is the HIDOE. The HIDOE is divided into two main divisions, one of which deals with the incorporation of technology into curriculum. Effective and efficient use of technology to enhance learning was the overall goal of this division. It was believed that this project could add to that particular goal. Also included in the supra-system were the technology coordinators who work with the teachers, and students to provide access to the Web and other computer applications for completion of student research projects.
ENVIRONMENT OF AN ORGANIZATION
Sub-systemThe sub-system consisted of students and teachers in three distinct classrooms in three different subject areas.
Source: http://www2.hawaii.edu/~nguyen/web/method.htm
ETHICAL AND SOCIAL RESPONSIBILITIES
Social responsibility is an ethical theory, in which individuals are accountable for fulfilling their civic duty; the actions of an individual must benefit the whole of society. In this way, there must be a balance between economic growth and the welfare of society and the environment. If this equilibrium is maintained, then social responsibility is accomplished.
ETHICAL AND SOCIAL RESPONSIBILITIES
What it Means to be Socially Responsible and Ethical?
The theory of social responsibility is built on a system of ethics, in which decisions and actions must be ethically validated before proceeding. If the action or decision causes harm to society or the environment then it would be considered to be socially irresponsible.
ETHICAL AND SOCIAL RESPONSIBILITIES
What it Means to be Socially Responsible and Ethical?
Moral values that are inherent in society create a distinction between right and wrong. In this way, social fairness is believed (by most) to be in the “right”, but more frequently than not this “fairness” is absent. Every individual has a responsibility to act in manner that is beneficial to society and not solely to the individual.
ETHICAL AND SOCIAL RESPONSIBILITIES
When Do Social Responsibility and Ethics Apply?
The theory of social responsibility and ethics applies in both individual and group capacities. It should be incorporated into daily actions/decisions, particularly ones that will have an effect on other persons and/or the environment. In the larger, group capacity, a code of social responsibility and ethics is applied within said group as well as during interactions with another group or an individual.
ETHICAL AND SOCIAL RESPONSIBILITIES
Businesses have developed a system of social responsibility that is tailored to their company environment. If social responsibility is maintained within a company than the employees and the environment are held equal to the company’s economics. Maintaining social responsibility within a company ensures the integrity of society and the environment are protected.
Often, the ethical implications of a decision/action are overlooked for personal gain and the benefits are usually material. This frequently manifests itself in companies that attempt to cheat environmental regulations. When this happens, government interference is necessary.
ETHICAL AND SOCIAL RESPONSIBILITIES
MEASURE OF SOCIAL PERFORMANCE
A model for evaluating total corporate social responsibility is presented in Exhibit 4.7. The model indicates that total corporate social responsibility can be subdivided into four primary criteria: economic, legal, ethical, and discretionary responsibilities. These four criteria fit together to form the whole of a company’s social responsiveness. Managers and organizations are typically involved in several issues simultaneously, and a company’s ethical and discretionary responsibilities are increasingly considered as important as economic and legal issues. Social responsibility has become an important topic on the corporate agenda in the light of corporate scandals, concerns about globalization, and a growing mistrust of business.
MEASURE OF SOCIAL PERFORMANCE
MEASURE OF SOCIAL PERFORMANCE
Example of Filipino companies who advocate Corporate Social Responsibility
- ABS-CBN – Lingkod Kapamilya/Bantay Kalikasan
- GMA – Kapuso- San Miguel Corporation – San Miguel
Foundation- 7-11 – Supplemental Feeding Program/Balik
Eskwela- Smart Communications – Kabalikat
MEASURE OF SOCIAL PERFORMANCE
Economic ResponsibilityThe first criterion of social responsibility is economic
responsibility. The business institution is, above all, the basic economic unit of society. Its responsibility is to produce the goods and services that society wants and to maximize profits for its owners and shareholders.
Economic responsibility, carried to the extreme, is called the profit-maximizing view, advocated by Nobel economist Milton Friedman. This view argues that the corporation should be operated on a profit-oriented basis, with its sole mission to increase its profits so long as it stays within the rules of the game
MEASURE OF SOCIAL PERFORMANCE
Legal ResponsibilityAll modern societies lay down ground
rules, laws, and regulations that businesses are
expected to follow. Legal responsibility defines what society deems as important with respect to appropriate corporate behavior. Businesses are expected to fulfill their economic goals within the legal framework.
MEASURE OF SOCIAL PERFORMANCE
Ethical ResponsibilityEthical responsibility includes
behaviors that are not necessarily codified into law and may not serve the corporation’s direct economic interests.
MEASURE OF SOCIAL PERFORMANCE
Discretionary ResponsibilityDiscretionary responsibility is purely
voluntary and is guided by a company’s desire to make social contributions not mandated by economics, law, or ethics. Discretionary
activities include generous philanthropic contributions that offer no payback to the company and are not expected.
MEASURE OF SOCIAL PERFORMANCE
ORGANIZATIONAL GROWTH/CHANGE AND DECLINE
Organizational change often follows an evolutionary pattern of gradual growth and decline
Change is inevitableMost common forces for change include: New competitors, innovations in technology, new company leadership, evolving attitudes toward work
ORGANIZATIONAL GROWTH/CHANGE AND DECLINE
Larry Greiner (Professor of Management and Organization in the Marshall School of Business at the University of Southern California. ) contends that every organization has an ideal structure that corresponds to its stage in the growth process
ORGANIZATIONAL GROWTH/CHANGE AND DECLINE
Each new stage is preceded by a period of transition called a growth crisis
The six phases of organisational growth (adapted from Greiner, 1998).
ORGANIZATIONAL GROWTH/CHANGE AND DECLINE
Growth through Creativity
First stageAt birth, organizations are loose in structure and informal
Creative energies will help to carry organization through its birth process
With growth, nature of problems changes
Growth through Direction
Second stageFormalization is introduced by professional managers
Bureaucratization occurs in departments to manage organization
Specialized divisions are created
Growth through Delegation
Third stageThe crisis of autonomy is overcome by delegating greater decision-making power to middle- and lower-level managers, with top level managers focusing on long-range, strategic planning
A crisis of control are created
Growth through Coordination
Fourth stageThe crisis is resolved via greater coordination between departments
Consultants may be hired to assess the extent of coordination needed and to suggest ways of improving efficiency and reducing redundancy
The crisis of red tape
Continued Growth through Collaboration
Fifth stageSimplification of programs, and
reliance on self-control and social norms eventually solve crisis of red tape
Goal is to teach managers how to cope with the organization’s structure without giving in to impulse to create additional structure, to collaborate
Growth Through Alliances
Sixth StageGreiner's recently added sixth phase
suggests that growth may continue through merger, outsourcing, networks and other solutions involving other companies.
Managing Organizational Decline
Factors that can lead to decline: Atrophy, loss of efficient processes, loss of
competitive drive Self complacency Changes in societal values and consumer tastes Insufficient external resources Vulnerable state caused by inexperienced
managers, cash flow problems, economic downturns, etc
Skills to Manage Decline
Similar to those necessary to manage growth
Skills include: Ability to seek creative solutions Willingness to innovate Tactful management of conflict
Factors that Lead to Organizational Success
Focus on customers and their needsAdapt the structure to the needs of their
missionsManagers are oriented to problem solving, with
avoidance of “paralysis through analysis” mentally
Commitment to organization’s original area of expertise, “sticking to one’s knitting”
Stress a single value, e.g, delivering good service, etc.
Improve performance by achieving agreement or consensus of employees
Factors that Lead to Failure
Environmental factors may catch organizations off guard
Too dependent on suppliers and/or single customer
Inadequate control mechanisms Management factors, e.g., tendency to
overanalyze, or wait too long in making decisions, outdated expertise
Intergroup conflicts