Organizations as Structures: Understanding an Organization as a Structure
One way to understand the nature of an organization is as a structure (the other is as a process). In this video, we look at Organizations as Structures.
Watching this video is worth 1 Management Courses CPD Point*.
(See below for more details)
The Nature of Organizations
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This video is part of course module number 6.1.1
Program 6: Managing within Organizations
Course 1: The Nature of Organizations
Section 1: Introduction to Organizations
Other videos in this section include:
– What is an Organization? https://youtu.be/bfqubYe8YNA
– Morgan’s 8 Organizational Metaphors: An Organization is Like a… https://youtu.be/a60rsgbmw2c
– Organizations as Processes: Understanding an Organization as a Set of Processes https://youtu.be/i51iHWLB3hE
– The Features of Organizations: What an Organization Needs https://youtu.be/vVwryqV92KE
– Why do we need Organizations? Structure vs Agility https://youtu.be/o9u0i0wOog4
LESSON NOTES
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The nature of organisation can be viewed in two ways: organisation as a:
– process or set of processes
– structure or framework of relationships
Typical organizational structure charts, or organograms, are organizational breakdown structures that represent the organization by its functional roles.
They define the formal relationships and flows of authority. They mirror and are mirrored by physical assets and by the services or products the organization deals in.
In designing organizational structures, Peter Drucker suggested we can base them on analysis of:
 Activities
 Decision-making
 Relationships
I’d add to this the very obvious influence of geography.
In many organizations, the needs for accountability and oversight impose a fairly rigid hierarchy onto the structure. However, later in this course (Section 6.1.2), we’ll look at alternative organizational models.
Usually there sit inside the formal structure other, informal structures.
The formal structure is planned and defined by the executive action. The informal structures form spontaneously, and often arise from the culture, the immediate priorities, and the personalities of managers.
These informal structures often come and go, or morph into new structures rapidly. They are the way rigid organizations are able to adapt quickly to changing circumstances.
Therefore, organizations that seek to quash these informal structures with a strongly controlling culture, often find themselves failing to adapt to new circumstances.
RECOMMENDED EXERCISE
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Think about the organizations you know well.
1. What is their structure? (2 MC CPD Points)
2. What formal and informal structures can you recognize? (2 MC CPD Points)
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RECOMMENDED READING
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– Understanding Organizations https://geni.us/oB774Do
– Images of Organization https://geni.us/hrOemEs
– Inside Organizations: 21 Ideas for Managers https://geni.us/YwwL
– Gods of Management: The Four Cultures of Leadership https://geni.us/bpPeC5
Managers Need a Basic set of kit to do your job well. Here are my top recommendations: https://kit.co/MikeClayton/manager-s-work-kit (the links are affiliated)
Management Courses Continuing Professional Development (CPD) Points
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