Understanding Organizations in Sociology

Organisation

• Sociology provides a more comprehensive explanation and understanding of the nature of organisations
• Organisations are composed of a systematic group of individuals who are collaborating towards a shared objective or purpose
• Organisations manifest in diverse forms such as corporations, governmental bodies, non-profit organisations, educational institutions, and informal groups
• Organisations are characterised by a distinct purpose, delineated duties and responsibilities, an organised hierarchy or framework, and the coordination of efforts among members
• Organisations exist to pursue goals that would be difficult for people to accomplish individually
• According to Louis A. Allen, organisations serves as a mechanism for attaining organisational objectives, delineates individual responsibilities, and establishes authority and duty for achieving common objectives
• According to Wheeler, the term "organisation" refers to a structural framework that delineates the duties and responsibilities of individuals within an enterprise to ensure the attainment of business objectives
• According to Koontz & O'Donnell, organisation is a venue for interaction where authority relationships among individuals are coordinated and developed both vertically and horizontally in a disciplined and systematic manner
• According to Spriegel, organization pertains to the structural relationship among many components (land, capital, labour, entrepreneurship) to attain organisational objectives
• According to George R. Terry, organisation involves establishing relationships among individuals and tasks to facilitate more effective and efficient operations

Society

• A society consists of individuals who share a common territory, engage in interactions, and possess a shared culture
• It consists of two or more individuals who engage in interaction and mutual identification
• A society is composed of individuals involved in ongoing social interaction, or a large social group sharing a common spatial or social territory
• Societies are usually governed by the same political authority and prevailing cultural norms
• Society is any organisation that allows individuals to lead a common life

Characteristics of an Organisation

• Consists of a collection of people
• Pursues a common goal
• Functions as a social institution
• Depends on a division of work
• Coordination
• Hierarchy of authority
• Operates within an environment
• Aims for perpetual existence
• Continuity through time
• Exhibits flexibility in adapting to changes
• Utilizes technology
• Permanent
• Abstract due to its conceptual nature
• Differentiated by specific roles and functions
• Population-based, involving a collection of individuals
• Networked through interconnected relationships
• Interdependent, relying on mutual support and cooperation
• Likeness/Similarities exists within its structure
• Cultural influences shaping values and norms
• Dynamic, adapting to environmental changes
• Cooperation and potential conflict among members

Organisation Design

• Organisation design is a technique for structuring and managing organisations. An encompassing strategy encompasses all aspects of organisational work and more elements
• The objective of organisation design is to enable an organisation to excel in its operations and achieve its objectives
• It can encompass everything from extensive reorganisation to fine adjustments in structures and systems

Organisation Design Advantages

• Effective design can improve the organisation's performance, increase its competitiveness, and enhance its ability to adapt to changing circumstances
• Organisation design is a process of developing an organisation structure
• The organisational structure is known as organisation design which usually shows through organisation chart, and the division of work and authority
• Good organisation design has the advantages of higher profit, greater productivity, better product and service quality, stronger workforce motivation, faster decision making, safer working conditions and increase of operational efficiency

Organisation Design Disadvantages

• Poor organisation design includes ineffective problem solving, failure of legal compliance, time wasting, reputational damage, lack of coordination, high staff turnover, inconsistent quality of work and poor performance

Factors Affecting Organisation Design and Organisation Behaviour

• Organisational Size: micro, small, meduim and large
• Organisational Life Cycle: infancy, growing, maturity and declining
• Strategy: Offensive, defensive and consolidated
• Environment: Stable, dynamic and complex
• Mission: leader, challenger and follower
• Techonology: small batch production. mass production and automation

Organisation Behaviour

• Organisational behaviour is used to streamline efficiency, improve productivity, and spark innovation to give firms a competitive edge
• Organisations examine the interactions of individuals and groups within an organisation and these interactions' impact on the success of the organisation
• Managers must comprehensively grasp the organisation's organisational behaviour before effectively employing management functions to enhance job performance and job satisfaction

Organisational Behaviour Levels

• Individual level
• Group level
• Top level / organisational level

Organisational Behaviour Implementation

• Managers should implement personal self-development programs for individual staff to enhance their relationships with colleagues
• Managers have to promote dynamic group cooperation and a strong team spirit among departments, branches, and subsidiaries to enhance both intra-organizational and inter-organizational relationships
• The employer-employee relationship is essential for organisational excellence, and managers should act as mediators or representatives to facilitate harmonious performance

Organisation Structure and Systems

• Analyse the factors influencing organisational design
• Consider the various forms of organisational structures and systems
• Decision about organisational structure and system
• Develop policies and initiatives for the action plan
• Establish goals, objectives, and key performance indicators for organisational structure and systems
• Execute organisational structure and system Assess the organisational performance

Planning Organisation

• Analyse the factors influencing organisational
• Analyse the factors influencing organisational design
• Decision about organisational structure and system
• Consideration the various forms of organisational structures and systems: structural relationship, vertical/ functional structure, horizontal, line structure and more

Organising Organisation Resources to Ensure Sustainability

• Accurately designed organisational structure and system needs managers to allocate intangible resources correctly.
• Intangible resources consist of education, training, mentoring, recognition, and appreciation.
• Assigning the appropriate individual to the suitable tasks for the correct position
• Employees with rule-based attitudes are more suitable for office related tasks.
• Personnel possessing creative abilities should be allocated to the Design Department for unique tasks
• Managers must coordinate and align employees' personal traits with work appropriateness

Leading Organisation Productivity

• Leadership: Managers must have the interpersonal skills to motivate and inspire their employees
• Reward authority enables managers to offer advantageous incentives to commend their subordinates
• The five leadership powers are used by employeer to effect behavior and performance of employees
• Legitimate power allows managers to leverage officially sanctioned formal posistions to cultivate employee confidence and trust
• Expert power refers to a manager's educational qualifications, professional credentials, accumulated experiences, and sustainable competencies
• Reference Power refers to the charismatic attributes of managers who exhibit care, charm, kindness, and affection towards employees

Controlling Organisation Performance

• Problematic Symptoms arise with discrepancies between actual and expected organisational performance
• Measurements in relation to organisational design and behavioral responsibility & accountability
• Investigate to identify the observed problem symptom causes.

Financials in Controlling Organisation Performance

• Financials include return on equity, market share, cost structure and cashflow control
• Corrective measure need to be implemented
• Non financial aspects include customer satisfaction, brand image, and regulations.

Organisation Performance Business Analytical Tools

• PESTEL helps organisations comprehend their external environment
• The SWOT Finds both internal and external factors
• Value chain looks at the steps needed to make a product or service
• Gap compares actual to desired or performance

Managing in Construction Industry

• Nature of business, adaptability to changes, strategic approach, ownership, size are key components to managing organisational design in construction.

Organisational Structure

• Organisational structure refers to the framework that outlines how activities such as task allocation, coordination, and supervision are directed
• It establishes a framework that defines reporting relationships and communication channels
• Defines individual and team coordination to achieve organizational goals
• Organisational structures defines hierarchy, roles, responsibilities, and relationships
• It clarifies responsibilities & streamlines decision-making, and enhances efficiency, accountability

Key Components of Organisational Structure

• Hierarchy
• Division of work
• Span of Control
• Centralization vs. Decentralization
• Departmentalization
• Formalization
• The number of management layers within a structure affects communication and decision-making
• Structures Represents levels of authority and reporting relationships
• Example: CEO to Department Heads to Managers to Employees

Organisational Tasks

• Tasks are divided among individuals and departments based on specialization
• It can ensure efficiency and expertise in specific areas

Staff Management

• Determines the number of subordinates a manager can effectively supervise
• Narrow span means fewer subordinates per manager, where wide span means more subordinates
• Centralisation: Decision-making authority concentrated at the top which is efficient in stable environments, however autonomy and innovation is limited
• Decentralisation: Decision-making distributed across various levels

Departmentalisation

• A grouping of jobs based which can be functional, product related, geographical, or tailored for a customer

Formalisations

• The degree to which rules, procedures, and job descriptions are standardised, with high adherence to said rules, and low adherence being adaptable

Types of Organisational Structures

• Line Structure: Simple, clear chain of command.
• Functional Structure: Groups employees by specialization.
• Divisional Structure: Self-contained units based on product, region, or customer.
• Matrix Structure: Employees report to both functional and project managers.
• Team-Based Structure: Cross-functional teams.
• Network Structure: Relies on external partnerships.

Types Of Departmentalisation

• Functional (Vertical)

  • Organisation divides into multiple departments, each focusing on different areas of expertise
  • Functional Managers (HoD's) oversee respective departments
  • Hierarchical relationship exists between the superiors and subordinates
  • Advantage: More targeted goals an efficient implementation
  • Cons: Overstaffing, internal and poor cross-departmental coordination

• Product (Divisional)

  • Organisation structuring with product diversity
  • Product Managers are in charge of overseeing product development and implementing marketing strategies
  • Relation between the superiors and subordinates which encompass both topdown and bottom-up
  • Product divisionalisation helps with diversification while maintaining competitive advantage
  • Cons: Product life cycles can be reduced due to cannibalism

• Customer (Divisional)

  • Each department in an organisation is structured to cater distinct customer groups
  • Customer-based senior managers lead the department
  • Aims primarily on customer requirements and preferences
  • High customer service which in turn increases loyalty, retention, and revenue

• Geographic (Divisional)

  • Operations occur within distinct region or market
  • The geo manager functions a a generalist as opposed to a expert
  • Can give better insight to local areas
  • Cons: Bribery, high corruption , and managers disrupt this experience

• Project Departmentalisation (Divisional)

  • Organisation is broken down based on project basis using project manager or the likes of, this in turn results in a streamlined coordination
  • The project framework is always a ad-hoc that can lead to inconsistent performance and lack of long term stability

• Matrix (Cross)

  • Matrix divisionalisation framework takes parts from both the division model, the team reports leaders and the organisation is divided into multiple departments overseen by two managers
  • the superior offers vertical vision, and the other horizontal visions; more complex but can get better efficiency from 2 perspectives
  • Shared knowledge develops when departments are flexible, increasing synergy, while superiors check and balance the relationship in multiple ways
  • Complex , and can make employees unsure of who to listen to. Conflicting guideline and lack of efficient decision making due to too many parties involved

• Line & Staff (Cross)

  • Management and structured into departments led my assignees in different roles
  • The distribution of work is hierarchical and has senior to subordinate
  • The staff is also often used to consult the upper staff which they need to keep in touch with
  • Adv: Speciality can improve efficiency of a single process & improved decision making can bring success
  • Cons: Role overlap can cause poor allocation, with internal conflict in management. Can also be complacency with ignorance