Organization of A Business
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One definition of organizational behavior could be the inter-related behavior of members of an organization to fulfill the purposes of the organization. The primary purpose of a business would be to be profitable. The root of the word organization is "organ," which is related to the word organism. These words are usually identified with the field of biology. Although a business is ordinarily seen as a commercial entity, it can be likened to an organism. As with any living organism, all the parts of a business must work together cooperatively in order for the business to be healthy and survive. These structures can fit both societal and a business organizations in their make-up.
- Each organization or group of people, including business organizations, possesses their own subculture to society.
- The subculture within business can be divided up into structure, systems, and processes which can be further classified as either organizational features or societal features.
- Structure - There are four basic determinants of structure within a culture, according to a quintessential study by Geert Hofstede in 1960's: Power distance, uncertainty avoidance, individualism/collectivism and masculinity/femininity dimensions.
- These structures, with the inherent globalization of the past 30 years, have begun to converge into several models:
- implicit model - Each culture perpetuates a view of itself with underlying cultural assumptions, i.e. German's as "well-oiled machines" and Asian persons fit the "family model" of the organizational structure.
- These structures can fit both societal and a business organizations in their make-up.
- Systems - Task vs. Social System
- Different cultures have different understandings of how organizational systems should be/are set up and therefore, varying views emerge.
- Four main systems emerge: Hierarchical, political, instrumental and social.
- Hierarchical - Top-down management with a structure emphasizing power and authority.
- Political - Management plays key role in decision making and role formation is important in establishing responsibility.
- Instrumental - Based upon achieving the completion of tasks.
- Social - Grounded in establishing relationships within the organization and goals are achieved through networking and social positioning.
- Culture and Processes
- Processes within an organization are formulated over time and the influence of culture within the process yields itself in the following: policies and procedures, planning and control, information processing and communication, and decision-making.
- Policies and Procedures - Strict policies and procedures within an organization reflects a low tolerance for change and uncertainly.
- Planning and Control - The level of planning and control reflects the organization's value of relationships and the power structure within the organization.
- Information processing and communication - Reflects cultural preferences for hierarchy, formalization and participation in an organization and determinants of these can be found in how well an organization sets up processing and communication systems.
- Decision Making - Who makes the decisions in an organization is highly culturally rooted. All elements of culture influence the decision making process, i.e. strategy, time, and traditions.
Business writers often liken a company to a biological organism or some other aspect of the world of nature. The author of an Organization of a Business research paper uses an analogy from the world of physics to describe the network of relationships which make up a business. An Organization of A Business Research Paper compares the interactions which occur in a business to phenomena of the superstring theory of physics. Although the superstrings are minute and cannot be seen, their movement is the basis for all visible activity, motion, and direction. "The strings move or vibrate, very much like the strings on a musical instrument." A company's management sets the strings in motion in an attempt to cause a desired result.
To be effective, management has to understand how all the parts of its organization are inter-connected and affect one another, like the invisible superstrings of nature. With this understanding, the best way for management to create consensus is by building a sense of trust between management and employees and among employees. "Trust is a relationship of mutual confidence in contractual performance, honest communication, expected competence, and a capacity for unguarded inter-action. Lack of trust "impedes organizational leaders from achieving objectives." Trust between management and employees is the major factor in creating a consensus by which all the members of an organization are contributing to its progress toward its goals.