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Organizational Behaviour

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Business Management


In any organization, there are certain factors that make the organization reach new heights in terms of reputation, business and becoming a trustworthy organization in the eyes of its employers and customers. The paper will discuss the nature and structure of an organization and how it helps in achieving organizational goals. Moreover, the paper will also discuss the key factors that managers need to influence to effectively manage behaviour of employees. These factors are organizational culture; organizational behaviour analysis, belief, perception; organization structure & contextual issues which influence structure including environment.


The nature and structure of an organization are inter-related. For an organization, the most important point is to achieve organizational goals. To achieve those organizational goals, the employees must make their work coordinated and managed. The word organizational structure means the way an individual or a joint effort inside an organization that is matched. Organizational structure is a vital instrument that helps in attaining synchronization. This is because it identifies describing relationships, defines official communication ways, and explains how discrete conducts of individuals are joined simultaneously. There are different type of structures in an organization which also has certain advantages and disadvantages due to which the organization function (North, 1997).

There are four aspects of organizational structure which decides how the organization is going to achieve its goals. The four aspects are centralization, formalization, hierarchical levels and departmentalization. These four aspects can also be taken as the building blocks of an organization.

Centralization is the extent to which managerial power is focused at advanced stage in an organization. The centralized organizations make their vital result at advanced levels of hierarchy while the decentralized organizations make their verdict as well as solve their issues at lesser levels by employees who are part of the issues. In decentralized organizations, the authority is given more to the lower-level employees, the outcome of which is the feeling of empowerment. The verdicts are made rapidly and the employees frequently consider that decentralized organizations offer better stages of practical justice to employees. The chances of job-seekers opting for jobs in decentralized organizations are on the higher side. In centralized organization, the decision-making power is with the higher authorities as it is believed that they can make better judgements (Baligh, 2005).

The advantage with the centralized organization is that there are certain employers who are more comfortable in an organization where the instructions are given by the managers more confidently and that the decisions seem more trustworthy. Moreover, the advantage centralization is that it leads to more competent actions, specifically if the organization is working in constant surroundings.

The formalization aspect is about the aim to which an organization's policies, procedures, job descriptions, and rules are written and openly expressed. Organizations which have their rules and regulations written are formalized structures. The employer behaviour is controlled using the written rules and there is little independence for employees to settle on a case-by-case foundation. Due to formalization, employee behaviour becomes expected. This means that when an employee is faced with an issue, they check their guidelines or rule book for solution. Furthermore, this rule is applied by employees in the whole organization, no matter which department; due to which consistency of behaviour exist. A disadvantage with formalization is that employees do not come up with new innovative ideas as they are used to performing in a convinced manner. There is reduced motivation and job satisfaction for employees in a formalized structure and the decision making works at a slower pace (Rashid, 1983).

Hierarchical levels are the number of levels that are there in an organization's structure. The levels in an organizational structure depends on the size of the organization, the tall structures are numerous layers of supervision amid the frontline employees and the highest level whereas the flat structures includes only a little layers. The tall structures are about the number of employees that report to each manager, are minor which result in more occasion for managers to manage and observe employee performances.



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