Before the pandemic, you ran your restaurant business the traditional way of dine-in and occasional take-aways but all these has
Note to students: You are encouraged to read the wflex course material (Units 3,4 and 5) as well as the power point slides before answering the questions.
Question 1 Before the pandemic, you ran your restaurant business the traditional way of dine-in and occasional take-aways but all these has now changed. You now have dine-in customers and at the same time the demand for take-aways and online orders for your popular dishes are increasing daily.
As organisations need to have the right fit between internal structure and the external environment in order to succeed, determine how you can adapt your business to deal with the changes. (30 marks)
Additional readings: https://www.emerald.com/insight/content/doi/10.1108/IHR-09-2020-0052/full/html https://cnaluxury.channelnewsasia.com/experiences/kuala-lumpur-food-beverageindustry-covid-19-174066
https://www.qsrmagazine.com/outside-insights/operating-restaurants-covid-19- environment
Question 2
(a) Describe with the help of a diagram the stages of the Organisational Life Cycle. (40 marks)
(b) Your start-up company, after years of struggle is now doing very well and you have opened several branches and have launched new products and services. However, you are now struggling to manage your business. Based on the Organisational Life Cycle, identify the stage your company is now at and what you could do manage your business well. (30 marks)
1
Academic Session 2022 First Semester
January 2022
ASSIGNMENT 2
BMG320/03 Organisational Theory and Design
Instructions: 1. Assignment 2 contains Two (2) questions and you are required to answer ALL
questions. 2. Assignment 2 carries 50% of your final total marks. 3. The assignment should be typed using Arial, font size 12 and double spaced,
approximately 2000-3000 words and in essay format.
4. The deadline for the submission of Assignment 2 is 27 March 2022, 11:59pm. A softcopy should be submitted via Online Assignment Submission System.
2
Note to students: You are encouraged to read the wflex course material (Units 3,4
and 5) as well as the power point slides before answering the questions.
Question 1
Before the pandemic, you ran your restaurant business the traditional way of dine-in
and occasional take-aways but all these has now changed. You now have dine-in
customers and at the same time the demand for take-aways and online orders for your
popular dishes are increasing daily.
As organisations need to have the right fit between internal structure and the external
environment in order to succeed, determine how you can adapt your business to deal
with the changes.
(30 marks)
Additional readings:
https://www.emerald.com/insight/content/doi/10.1108/IHR-09-2020-0052/full/html
https://cnaluxury.channelnewsasia.com/experiences/kuala-lumpur-food-beverage-
industry-covid-19-174066
https://www.qsrmagazine.com/outside-insights/operating-restaurants-covid-19-
environment
Question 2
(a) Describe with the help of a diagram the stages of the Organisational Life Cycle.
(40 marks)
(b) Your start-up company, after years of struggle is now doing very well and you
have opened several branches and have launched new products and services.
However, you are now struggling to manage your business. Based on the
Organisational Life Cycle, identify the stage your company is now at and what
you could do manage your business well.
(30 marks)
3
Course Learning Outcome 3: Evaluate open organisational systems that influence organisational structure and design including the external environment, inter-organisational relationship and the global environment
End of Assignment 2 Questions
,
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Organisational Theory and Design
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Unit 5
Managing Dynamic Processes
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5.1 Organizational Culture and Ethical Values
Culture is the set of values, norms, guiding beliefs and understandings that is shared by members of an organisation
Organisational culture exists at two levels – the visible artifacts and the observable behaviours
Visible artifacts – symbols, ceremonies, stories, dress code, physical settings
Observable behaviours – values, assumptions, beliefs, norms
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Managerial Ethics
Ethics are moral principles which help us to distinguish between right and wrong.
Managerial ethics are largely governed by moral values which act as powerful force, to regulate behaviour of individuals both inside and outside an organisation.
Ethical behaviour to are a large extent are guided by our values, education system, and rules prescribed by the society.
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Approaches to Social Responsibility (CSR)
According to Carrol (1991), the Corporate Social Responsibility include four approaches:
Economic – Be profitable
Legal – Obey the law
Ethical – Be ethical
Discretionary/philanthropic -Good corporate citizen.
5.2 Decision-Making Processes
Organisational decision making is defined as the process of identifying and solving problems.
Problem identification – monitoring organisational performance for shortcomings
Solution – alternate courses of action are considered and one alternative is selected and implemented.
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Decision-Making Process
The decision making process consists of seven stages:
Establishing Objectives
Identifying the Problem
Identifying Alternatives
Evaluating Alternatives
Choosing among Alternatives
Implementation of Alternatives
Learning from feedback
5.2 Decision-Making Processes
Decision-making can be done in two ways:
Rational approach
Bounded rationality approach
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Decision-making models
The Rational Model
It is more referred as the ‘classical model’ or economic man model’.
Decision makers have complete information of the situation.
Have a choice to select the best course of action among the alternatives.
Have a clear understanding of all the possible alternatives.
Applied to routine and repetitive problems .
Limited by the cognitive abilities of the person making the decision.
Decision-making models
Bounded Rationality Model
It is called as the ‘administrative model’ or ‘behavioural model’
The boundaries of decision making are limited by the cognitive capabilities at personal and organisational levels such as lack of information or resources.
Satisfice – Managers attempt to stop the decision making process when satisfactory alternatives are found.
5.3 Conflict, Power and Politics
What is conflict?
Conflict is a process whereby one party perceives that its interest are being opposed or negatively affected by another party
What causes conflict?
Incompatible goals
Differentiation
Task interdependence
Scarce resources
Ambitious rules
Communication problems
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5.3. Power and Politics
Power is the capacity to influence another person
The meaning of power
Power is important for managers because it grants them the ability to get things done through the mobilization of employees
Power sources
Legitimate power
Legitimate power is derived from the position a person holds in the organizational hierarchy.
Reward power
Reward power is derived when a person has control over benefits or rewards valued by another person.
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Coercive power
Coercive power is derived when a person has control over punishment or negative consequences over another person.
Expert power
Expert power is derived from the personal characterises (e.g. knowledge and skills) possessed by an individual that are valued by others.
Referent power
Referent power is derived when an individual is identified with and highly respected by others.
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Political strategies and tactics
Organizational politics is defined as any self-serving behaviour used for personal gain at the expense of another person or the organization.
Said another way, political behaviours are done with a self-centred motive, for personal gain despite other’s losses
Factors that trigger organizational politics
Scarce resources
Employees are more likely to play politics when resources are scarce. Employees compete with one another to safeguard these resources and maintain the status quo.
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2. Complex and ambiguous decisions
Employees are more likely to play politics when their manager is making a complex or ambiguous decision that affects them. Since employees are unable to predict the outcome of the manager’s decision, employees then attempt to influence the factors that shape the manager’s decision.
3. Organizational change
Employees usually experience discomfort and high levels of stress when their organization is going through a major change. Change creates uncertainly, and this increases political behaviour.
4. Tolerance of political activities
Employees are also more likely to play politics when they perceive top management to be tolerating and practicing it themselves.
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Ways to manage organizational politics
Introduce clear rules for scarce resources
Where possible, management should first and foremost provide adequate resources for its employees so they can perform the task well.
2. Effective organizational change practices
Organizations that go thought a major change, should not keep employees in the dark as to what should be expected from the change.
3. Suppress norms that support or tolerate self-serving behaviour
Employees are also more likely to play politics when they see top management tolerating and practicing it themselves.
4. Give employees more control over their own work
Managers should also give employees more control and autonomy over their work.
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Ways to manage organizational politics
5. Keep employees informed
Keeping employees out of the loop on important developments only escalate unnecessary fears
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5.4 Managing Organisational Change and Innovation
Lewin’s Force Field Model illustrates the change process that occur within organisations.
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Driving forces represent the forces that encourage the organisation to change. Forces such as the presence of a new competitor, changing workforce expectations or changes in rules and regulations or even technology can propel the organisation towards a new state
Restraining forces on the other hand are forces that resist the change. In other words, these are the forces that attempt to maintain the status quo.
Stability (i.e. no changes occur within the organisation) when both driving forces and restraining forces are in equilibrium. In other words, these forces are of equal strength, but in the opposite direction.
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Organisational innovation
Innovation is ‘the process of translating an idea or invention into goods or services that create value for customers’
The 7 phases of innovation
Phase 1:
Setting goals
Phase 2:
Cooperation
Phase 3:
Ideas combination
Phase 4:
Evaluation
Phase 5:
Testing
Phase 6:
Execution
Phase 7:
Assessment of lifecycle
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End of Slide
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Unit 3
The External Environment
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3.1 The External Environment
An organisation’s environment is defined as all elements that exists outside the organisation and have the potential to affect the organisation
Domain defines the external sectors with which the organisation interacts with to accomplish its goals.
Task environment includes sectors with which the organisation interacts directly with such as the industry, raw materials, market sectors, human resources and the international sectors
General Environment includes sectors that may not have direct impact on the organisation such as Political-Legal, Economy, Sociocultural and Technology (PEST)
The international environment affects most organisation which have international operations.
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3.1 The External Environment
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3.2 Framework for Assessing Environmental Uncertainty & Adapting to a Changing Environment
Uncertainty means that decision makers do not have sufficient information about environment factors and have difficulty predicting external changes
Complex environment – organisation interacts and influenced by many external elements (eg.competitors, suppliers, industry changes )
Simple environment – the organisation interacts and is influenced by only a few external elements.
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3.2 Framework for Assessing Environmental Uncertainty & Adapting to a Changing Environment
Stable environment – the environment remains the same over a long period of time
Unstable environment – frequent changes in the environmental elements
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3.2 Framework for Assessing Environmental Uncertainty & Adapting to a Changing Environment
Simple + Stable = Low Uncertainty
Small number of external elements and elements are similar
Elements remain the same or
change slowly
Eg: Soft drink bottlers, beer
distributors, container manufacturers, food processors
Complex + Stable = Low – Moderate Uncertainty
Large number of external elements and elements are dissimilar
Elements remain the same or change slowly
Eg: Universities, appliance
manufacturers, chemical companies, insurance companies
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3.2 Framework for Assessing Environmental Uncertainty & Adapting to a Changing Environment
Simple + Unstable =
Moderate – High Uncertainty
Small number of external
elements, and elements are similar
Elements change frequently and unpredictably
Eg: E-commerce, fashion clothing,music industry, toy manufacturers
Complex + Unstable =
High Uncertainty
Large number of external elements,and elements are dissimilar
Elements change frequently and unpredictably
Eg: Computer firms, aerospace firms,telecommunication firms, airlines
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Adapting to a changing environment
Organisations can adapt to a changing environment in several ways by:
Adding positions and departments- for example, a company can create a new department to handle online sales; or
• Building Relationships – exposing the technical core who directly deal with customers and suppliers to the uncertain environment to find out customer or supplier concerns; or
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Adapting to a changing environment
Differentiation and integration- differentiation refers to the different orientation among managers in different functional departments and integration involves collaboration among departments with integrating personnel such as co-ordinators or project managers helping to integrate the activities of the different departments; or
Organic versus Mechanistic management processes – in a stable environment the internal organisation is characterised by rules, procedures and formal authority and is referred to as a mechanistic system while in a dynamic environment, the internal organisation is less formal,greater flexibility and is known as an organic system.
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3.3 Designing Organisation for the International Environment – International Divisional Structure
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3.3 Designing Organisation for the International Environment – Geographic Structure
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3.3 Designing Organisation for the International Environment – Global Product Structure
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3.3 Designing Organisation for the International Environment – Matrix Structure
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End of Slide
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Unit 4
Internal Design Elements
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4.1 Manufacturing and Service Technologies
Manufacturing technologies include traditional manufacturing processes and contemporary applications, such as flexible manufacturing and lean manufacturing
Service organisations accomplish their primary purpose through the production and provision of services, such as education, health care, transportation, banking, and hospitality
A service is an intangible product that does not exist until it is requested by the customer. It cannot be stored, inventoried, or viewed as a finished good. If a service is not consumed immediately upon production, it will disappear.
Strategy, structure and technology need to be aligned when competitive conditions change.
Today’s increased global competition means more volatile markets, shorter product life cycles, and more sophisticated and knowledgeable consumers
Manufacturing companies can adopt new technologies to support the strategy of flexibility
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4.2 Impact of Technology on Job Design
Job design includes the assignment of goals and tasks to be accomplished by employees.
Research has indicated that mass production technologies tend to produce job simplification, which means that the variety and difficulty of tasks performed by a single person are reduced. The consequence is boring, repetitive jobs that generally provide little satisfaction.
Job rotation -Means moving employees from job to job to give them a greater variety of tasks
Job enrichment -The job provides greater responsibility, recognition, and opportunities for growth and development
Job enlargement – An expansion of the number of different tasks performed by an employee. Fewer workers are needed with the new technology, and each employee has to be able to perform a greater number and varietyof tasks.
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4.3 Organisation Size, Lifecycle and Decline
LARGE ORGANISATION
Economies of scale
Global reach
Vertical hierarchy
Mechanistic structure
Complex
Stable market
Organisation can provide longevity, benefits and promotions
SMALL ORGANISATION
Responsive
Flexible
Flat structure
Organic structure
Simple
Niche Market
Encourages entrepreneurship & innovation
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Organisational Life Cycle
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Organisational Life Cycle
Entrepreneurial stage :
– Emphasis is on creating a product or service and surviving
– Organisation is informal and non-bureaucratic
– Growth comes from new product or service
– Control is based on the owner’s personal supervision.
Leadership Crisis – As the organization starts to grow, the large number of emplNext oyees start to cause problems and management issues. Solution:
Adjust the structure of the organization to accommodate continued growth or
Hire strong managers to manage the organization.
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Collectivity stage:
– Clear goals and direction developed
– Departments are established with hierarchy of authority, job assignments
– Communication and control are mostly informal
– employees start to identify with the mission of the organization and spend
hours helping the company grow.
Crisis: Need for Delegation
A crisis can take place when top management who were successful because of their strong leadership and vision, do not want to give up responsibility.
Solution: The organization needs to find mechanisms to control and co-ordinate departments without direct supervision from the top,
Organisational Life Cycle
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Formalisation stage:
– implementation of rules, procedures and control systems
– communication is more formal
– top management is concerned with strategy issues and middle mgt handles operations
Crisis: Too much red –tape (bureaucracy) and innovation may be restricted.
Organisational Life Cycle
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Elaboration stage:
– managers develop skills solving problems and working together to solve the red-tape issues
– Social control & self-discipline reduces the need for formal control
– cross-functional teams are formed.
Crisis: Need for re-vitalization or re-energising
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Organisational Life Cycle
Decline stage:
Organisations that do not successfully resolve problems associated with these transitions are restricted in their growth and may even fail.
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End of Slide
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