Developing Managers

Understand principles and practices of

management behaviour

f.marfo@mrcollege.ac.uk
Week 4
 Aims and Learning Outcomes
Aims: To explore communication,
organisational structure, culture and
change

Learning outcomes:
Evaluate communication processes in
selected businesses(1.3)
Analyse organisational culture and change
in selected businesses(1.4)
 Recap

Types of leadership styles

Characteristics of leader

1.2 discuss leadership characteristics

 Communications

Essentially the process by which

views and information are
exchanged between individuals
or groups; usually refers to the
system of communication in
use, but can also mean personal
skills of communication.
 Communication Processes
The issue of communication is a vital
one for any organisation. It is worth
considering for a moment what is the
meaning of so important a concept.
Communication is the process of
creating , transmitting and
interpreting ideas, facts, opinions and
feeling. It is a process that is
essentially a sharing one-a mutual
interchange between two or more
persons
Communication Processes
Contd
Sender Message

Feedback Reciver
Communication
 Verbal
The sharing of information between
individuals by using speech.
Individuals working within a business
need to effectively use verbal
communication that employs readily
understood spoken words, as well as
ensuring that the enunciation, stress
and tone of voice with which the words
are expressed is appropriate.
Non-verbal communication
It is communication of feelings,
emotions, attitudes, and
thoughts through body
movements, gestures , eye
contact, etc
 Written communication
Written communication involves any type
of interaction that makes use of the
written word. Communication is a key to
any endeavour involving more than one
person.

Communicating through writing is

essential in the modern world and is
becoming ever more so as we participate
in what is now commonly called the
information age.
In fact, written communication is the most
common form of business communication.
It is essential for small business owners
 Lines of communication
Lines of communication are
channels through which people
share information.
The term is often used in
discussions about military
operations although it is also used
in the corporate world to refer to
internal communications structures,
and the manner in which firms
share information with clients.
 Linear communication
The linear model of communication is an
early communication model created by
Shannon and Weaver which visualises
the transfer of information as an act
being done to the receiver by the sender.
Understanding several key terms is
important in order to follow the model.
This linear model is great for electronic
media, such as radio and television,
because of its one way nature, but it
encounters several problems when
looking at other channels.
Linear communication
 Lateral Communication

.Lateral communication is
communication between different
individuals and, departments, or
organisms on the same
organisational level.

. Interdepartmental Committees.
Special project Groups.
Coordinating Committees
Theories of Lateral Communication
According to John E. Spillan, Mary
Mino, and M. Susan Rowles, lateral
communication involves not only the
movement of information from the
upper levels to the lower levels of the
organisational hierarchy but also is
defined primarily as the quality of
information sharing among peers at
similar levels (McClelland and
Wilmont, 1990).
Theories of Lateral Communication
Specifically, lateral communication
occurs among co-workers, during staff
meetings and informational
presentations, throughout shift changes,
and among employees regardless of
peer types.

In short, lateral communications

purpose is to keep organizational
personnel informed of all current
practices, policies, and procedures
(Spillman and Mino)
 Formal communication
Formal communications within an
organisation are those that take place
through well-known channels.

Formal communications would also include

all of the paper-based and electronic
communications that are available to
members as well as the meetings that take
place.
 Informal communication
Informal communications are those
that are not based upon any set
measures. This does not mean that
such relations are outside the
networks of the organisation. They
allow people to take the initiative
into their own hands.
This enables them to come up with
ideas and plans. Through informal
communications with employers and
their representatives, members feel
Barriers to Effective Communication
There are numerous barriers to
communication, and some of the
most important are:
1. Physical Barriers:
2. Attitudes
3. Language
4. Physiological Barriers
5. Problems with Structure Design
6. Cultural background
 Activity

Divide yourselves into groups of 3 and

evaluate communication processes in
selected businesses
 Organisational Structure and Cultural
Change
Definition:
The typically hierarchical arrangement of
lines of authority, communications, rights
and duties of an organization. This further
determines how roles, power and
responsibilities are assigned, controlled
and coordination

The framework in which the organisation

defines how tasks are divided, resources
are deployed and departments are
 The Importance of Organisational
Structure
Why do organisations creates Structures ?
A clear structure makes it easier to see which
part of the business does what. Moreover
there are many ways to structure a business
Structure creates a framework of order and
command through which the activities of the
organisation can be planned, directed and
controlled.
The structure defines tasks and
responsibilities, work roles and relationships,
and channels of communication
 Tall or Vertical Structure
Tall structures are more of what we think of
when we look at the organizational chart with the
Board of directors, CEO or the Managing director
at the top and multiple levels of management.
Definition:
Vertical organization structure is a hierarchically
organization where all management activities are
controlled by a centralized management staff.
This traditional type of organization often
develops strong bureaucratic control over all
organizational activities. This also involves a
longer chain of command
 Flat or Horizontal Structure
Flat organizational structures rather
have fewer levels of management and
employees often have more autonomy.
A decentralized structure within an
organisation, where power is shared
more broadly and tends to allow staff
of more control over business matters
according to their expertise, and it is
often supportive of considerable
collaboration between employees.
Flat or Horizontal Structure
 Matrix Structure
The matrix offers organisational solution by
combining both functional and divisional
structure.

Functional organisation is inform of

departmentalisation in which employees
engages in a functional activities such as
marketing or finance are grouped into one unit.

Divisional structure divides the company into

divisions that brings employees involved with a
certain type of product or market
Matrix Structure
 Divisional Structure

Divisional structure typically is used in larger companies that

operate in a wide geographic area or that have separate
smaller organisations within the umbrella group to cover
different types of products or market areas. For example, the
now-defunct Tecumseh Products Company was organised
divisionally--with a small engine division, a compressor
division, a parts division and divisions for each geographic
area to handle specific needs.

The benefit of this structure is that needs can be met more

rapidly and more specifically; however, communication is
inhibited because employees in different divisions are not
working together. Divisional structure is costly because of its
size and scope. Small businesses can use a divisional
structure on a smaller scale, having different offices in
different parts of the city, for example, or assigning different
sales teams to handle different geographic areas.
Meaning of Organisational Culture

A popular simple way of defining

culture is how things are done
around here
Culture is about how the company
organises itself its needs,
procedures and beliefs.
Organisational culture comprises of
the assumption, values, norms and
tangible signs of the organisation
members and their behaviours.
 Type of organisation culture
There are a number of ways to classify
different types of organisational
culture. According to the Handy he
describes four main types of
organisational cultures.

Power culture
Role culture
Task culture
Personal culture
 Power culture
Depends on a central power source with
rays of influence from the central figure
throughout the organisation. A power culture
is frequently found in small entrepreneurial
organisation and relies on trust, empathy
and personal communications for its
effectiveness. Control is exercised from the
centre by the selection of key individuals.
There are few rules and procedures, and
little bureaucracy. It is a political
organisation with decision taken largely on
the balance of influence.
 Role Culture
Role culture is often stereotyped as a
bureaucracy and works by logic and
rationality. Role culture rests on the strength
of strong organisational pillars the
functions of specialists in for example
finance , purchasing and production. The
work of, and interaction between, the pillars
is controlled by procedures and rules, and
co-ordinated by the pediment of a small
band of senior managers. Role or job
description is often more important than the
individual, and position is the main source of
power.
 Task Culture
Task culture is job-oriented or project-
oriented. In terms of structure the task
culture can be linked to a net, some
strands of which are stronger than others,
and with much of the power and influence
at the interstices. An example is the matrix
or flat organisation . Task culture seeks to
bring together the right resources and
people, and utilises the unifying power of
the group. Influence is widely spread and
based more on expert power than on
position or personal power.
 Person Culture
Person culture is where the individual is the
central focus and any structure exists to
serve the individuals within it. When a group
of people decide that it is in their own
interests to band together to do their own
thing and share office space, equipment or
clerical assistance, then the resulting
organisation would have a person culture.
Example are groups of barristers, architects,
doctors or consultants. Although it is found
in only a few organisations, many individual
have a preference for personal culture
Factors influencing changes in culture
The culture and structure of an
organisation changes over time and in
response to a complex set of factors. A
number of key influences that are likely
to play an important role in changes of
any organisation culture. These include
history, primary function and
technology, strategy, size, location,
management and leadership, and the
environment.
 History
The reason, and manner in which, the
organisation was originally formed, its age,
and the philosophy and values of its owners
and first senior managers will affect culture.
A key event in the organisations history
such as a merger or major reorganisation,
or a new generation of top management,
may bring about a change in culture. Failure
in mergers and acquisitions can arise from
culture clashes and failure to integrate
different cultures
 Primary function and
technology
The nature if the organisations business
and its primary function have an
important influence on its culture. This
includes the range and quality of
products and services provided, the
importance of reputation and the type of
customers. The primary function of the
organisation will determine the nature of
the technological processes and methods
of undertaking work, which in turn also
affect structure and culture.
 Strategy
Although a business organisation may pursue
profitability, this is not by itself very clear or a
sufficient criterion for its effective
management. For example, what extent is
emphasis placed on long-term survival or
growth and development ? How much
attention is given to avoiding risks and
uncertainties ? Or how much concern is shown
for broader social responsibilities ? The
combination of objectives and resultant
strategies will influence culture, and may itself
be influenced by changes in culture.
 Size
Usually large organisations have more
formalised structures and cultures.
Increased size is likely to result in
separate departments and possibly split-
site operations. This may cause
difficulties in communication and inter-
departmental rivalries with the need for
effective co-ordination. A rapid
expansion, or decline, in size and rate of
growth, and resultant changes in staffing
will influence structure and culture.
 Location
Geographical location and the physical
characteristics can have a major influence
on culture for example, whether an
organisation is located in a quite rural
location or a busy city centre can
influence the types of customers and the
staff employed. An example could be a
hotel or restaurant. Location can also
effect the nature of service provided, the
sense of boundary and distinctive
identity, and opportunities for
development.
 Top executives can have considerable
influence on the nature of corporate
culture. Examples are the key roles
played by Sir Richard Branson, Bill
Gates, Anita Roddick, founder of the
body shop, and Marjorie Scardino and
her change of style when she took over
as the new chief executive of Pearson.
 The environment
In order to be effective, the organisation
must be responsive to external
environmental influences. For example,
if the organisation operates within a
dynamic environment it requires a
structure and culture that are sensitive
and readily adaptable to change. An
organic structure is more likely to
respond effectively to new opportunities
and challenges, and risks and limitations
presented by the external environment.
 Activity

Divide yourselves into groups of 3 and

analyse organisational culture and
change in selected businesses
 Bibliography
Philip Kotler and Kevin Keller (2008) Marketing
Management 13th Ed (Publishers Prentice Hall)
Gary S. Goodman (2000) Monitoring, Measuring,
and Managing Customer Service, Perspectives,
Principles and Practices (Publishers Prentice Hall)
Brooks I Organisational Behaviour: Individuals,
Groups and Organisation (FT Prentice Hall, 2002)

Mullins L J Management and Organisational

Behaviour (FT Prentice Hall, 2004)