Organisational culture

Organisations are economic and social entites in which a number of persons perform various tasks in order to attain common goals. They are effective instrument in that they help individuals to accomplish personal objectives which they cannot achieve alone.
Organisation is a means to an end. It takes certain inputs from the environment and converts them into specified outputs desired by the society. Organisational design deals with the structural aspects of an institution. It aims at analyzing roles and relationship so that collective effort can be explicitly organized to achieve specific end. The design process leads to the development of an organisation structre consisting of units and positions.
There are three components of organisation structure viz., complexity, formalisation and centralization. Complexity refers to the horizontal, vertical and location differentiation. Formalisation is the degree to which jobs within the organisaiton are standardized. Centralisation is the degree to which decision-making is concentrated at a single point in an organization.
Basically, organisation structures can be classified into two types viz., machanic and organic. Mechanic structure is one which is characterized by high complexity (great deal of horizontal differentiation), high formalisation, a limited information network (mostly downward) a little participation by lower level members in decision-making, organic structure is low in complexity and formalisation. It possesses a comprehensive information network and involves high participation in decision-making.
Mintzberg’s Five Design Configurations
Henry mintzberg suggested that all organizations are essentially make up of five elements viz., operating core, the strategic apex, middleline men, technostrucute and support staff. Operating core is the heart of the workforce of an organization. The strategic apex is composed of the senior managers of the organization. The middleline consists of he middle level management of the organisaiton. The technostructure is make up of the control activities of the oganisation like strategic planning, organisation and methods etc. Support staff include lawyers, public relation officers, counselors etc.
The following are the main types of structures identified by Mintzberg.
Simple Structure: In this structure only the strategic apex and the operating core are fully developed. Control is at the strategic level only. This type of organisation structure is charactersied by low complexity, little formalisation and high degree of centralization. Employees in this type of organisation contribute to the organizational goals and they fell sense of achievement.
Machine Bureaucracy: In this structure, the middle level is flat. The strategic apex is remote and control being by means of formalized rules and regulations, standardization and highly routine nature of work, checks and controls. Generally, top management prefers this type of structure. But employees feel frustration due to alienation, boredom and absence of sense of belongingness.
Professional Bureaucracy : This structure is dominated by operating professionals and control is at operating level by the highly skilled operating core. Employees achieve effectiveness from standardization. This structure combines standardization with decentralization. Job in this organisation are highly enriched. This type of organisation is suitable for hi-tech large organisation. Employees in this organisation enjoy freedom of work.
The divisional Structure: This structure is effectively operated with a series of coordinated machine bureaucracies. Each division manages its business depending upon the local needs and requirements. Middle level management exercise control.
Adhocracy: This type of structure is characteised as low complexity, low formalisation and centralization. This is organized for a specific project. This structure is characterized by great horizontal, differentiation, a few rules and regulations, decentralized decision-making and flexible teams. This structure is highly humanized. Employees in this organisation feel social and psychological tensions as setting up and dismantling relationship would be difficult. Further, it is also difficult to cope up with rapid change and live in temporary teams.
Organisational concepts and principles are developed over the period. A number of decades have passed since most of these principles were originally proposed. The classic principles of organisation are modified in tune with the changing requirements and the nature and goals of today’s organisation functioning in highly competitive environment. The principle of centralization of authority is not relevant to the large, widely spread modern organisation as it limits the effectiveness and efficiency of decision-making of the executives at various levels.
Centralizations refers to the degree to which decision-making is concentrated at a single point in the organization. On the other hand, decentralization refers to the degree to which decision-making is spread at different levels and points in the ogranisation. Classical theorists believed centralization. But, typically it is said that, if top management makes the organisation’s key decisions with little or no input from lower level employees, the effectiveness of the decisions would be doubtful. On the other hand, in a decentralized organization, action can be taken more quickly to solve problems, employees at the help of affairs provide input into decisions and people are less likely to feel alienated from those who make the decisions that affect their work lives. Further, the large, widely spread and highly competitive organisation cannot afford to have less effective and delayed decisions making. Decentralised structure enables the employee involvement in decision-making at every level in the organization. As such, decentralized structure would serve the requirements of today’s organization.
Against this background, an attempt is made to know the features of organisation structure of various respondent banks through the analysis of the opinions of management representatives. Table 5.1 shows the opinions of management respondents about the features of organisation structures. Majority of the management representatives (58%) have opinioned that the authority is centralized to a great extent in UCO Bank(BOB). Scope for participative management in this bank is limited (44%)
Formality and Standardization
Formality of rules refers to the degree to which jobs, procedural formalities, rules and regulations in the process of performing jobs are standardized. If a job is highly formalized, then the incumbant has a minimum amount of discretion over what is to be done, when is it to be done and how he or she should do it. When formalisation is low job behaviours are relatively non-programmed and employees have a great deal of freedom to exercise discretion in their work. The employee is allowed to contribute less of his resource in a highly formalized structure and the employee is encourage to contribute his maximum resource in a less formalized structure as they have to utilize human potentialities fully in order to achieve their goals.

The classical theorists were strong proponents of division of labour or stratification and specialization. They believed it as a way to significantly increase the economic effectiveness of organizations. Specialization makes effectiveness of organization. Specialization makes efficient use of the diversity of skills that workers hold. In view of the more of the diversified tasks/job and less of highly sophisticated tasks inmost of the organizations, employees would be working below their ability in most cases under the division of labour. Further division of labour results in boredom, fatigue, stress, low productivity, poor quality, increased absenteeism and higher turnover. But, it is found that, productivity can be increased by enlarging better than narrowing the scope of job activites. As such today’s organisation depends on less degree of specialization and stratifications.

Job Enrichment
Under job enrichment there is a conscious effort to build the jobs with a higher sense of challenge and achievement. Job enrichment is vertical loading of a job. In a job enrichment is programme, the worker decides, how the job is performed, planned and controlled and makes more decisions concerning the entire process. This approach is to give the individual employee more autonomy and freedom in doing the job. Employees decide how the job will be performed and receive less supervision on the job. Consequently, the employee receives a greater sense of accomplishment as well as more authority and responsibility.
Almost all organizations today face a dynamic and changing environement, in turn, requires these organizations to adapt. Every organisation should be dynamic, accept change, change the polices and introduce change in a planned way. Normally, organizations with less formality, decentralized character and less degree of complexity and proponents of change, develop the human resources along with the internal opportunities on the organisation prefer less complexity and decentralization and introduce change effectively and successfully.

How to judge training programme quality

Ask simple questions like :

1. Do you know about the training programme in you organization?
(a) yes (b) No
2. From which source you come to know about the training programme?
(a) Learning Matrix (b) E-mails
(c) HR Department (d) Regular Classroom Training
3. Have you ever been sponsored for any training programme?
(a) yes (b) No
4. If yes, what type of training you have undergone?
q On the Job
(a) Coaching Mehtod (b) Job Rotation
q Off the Job
(a) Case study Method (b) Group Discussion
(c) Lecturers (d) Conferences
(e) Seminars
5. Where did you go for latest training?
6. Duration of Training
7. What was the subject matter of your training and how it helped in your training?
8. After the training programme participants feel changes in their behaviour and performance.
q Not at all true
q A little true
q Some what true
q True to great extent
q Very True
9. Employees are sponsored for training programme on the basis of identified carefully development needs.
q Not at all true
q A little true
q Some what true
q True to great extent
q Very True
10. Those who are sponsored for training programme take the training seriously
q Not at all true
q A little true
q Some what true
q True to great extent
q Very True
11. Employees sponsored for training go with a clear understanding of the knowledge and skills they are expected to acquire from training.
q Not at all true
q A little true
q Some what true
q True to great extent
q Very True
12. Trainees are free to ask questions during the training programme.
q Not at all true
q A little true
q Some what true
q True to great extent
q Very True

13. The training which is given to employees is well planned and given adequate importance in Bikaji
q Not at all true
q A little true
q Some what true
q True to great extent
q Very True
14. The norms and values of Bikaji are clearly explained to the new employees training
q Not at all true
q A little true
q Some what true
q True to great extent
q Very True
15. Human relations competencies are adequately developed in Bikaji through training.
q Not at all true
q A little true
q Some what true
q True to great extent
q Very True
16. Employees returning from training are given adequate liberty to reflect and plant improvements in the organization.
q Not at all true
q A little true
q Some what true
q True to great extent
q Very True
17. What type of training you think is conductive in your working environment.
q On the Job
q Job Rotation
q Case Study Method
q Group Discussion
q Lectures
q Seminars
18. Since you have not been sponsored for any training programme, how do you overcome the problems related to the jobs.
19. What limitations do you find in your training programme?
20. Do you have any suggestions?

Job Profile :Name : Designation : On Roll / Off Roll : Date of Joining :

TRAINING AS A TOOL OF DEVELOPMENT

Training is a process of learning a sequence of programmed behaviour. It gives people an awareness of the rules and procedures to guide their behaviour. It attempts to improve their performance on the current job or prepare them for an intended job.
IMPORTANCE OF TRAINING
Training is the corner stone of sound management, for it makes employees more effective and productive. It is actively and intimately connected with all the personnel or managerial activities. It is an integral part of the whole management programme, with all its many activities functionally interrelated.
Training is a practical and vital necessity because it enables employees to develop and rise with in the organization; it moulds the employee's attitudes and helps them to achieve a better cooperation with the organization and a greater loyalty to it. Training, more over, heightens the morale of the employees, for it helps in reducing dissatisfaction, complaints, grievances and absenteeism, reduces the rate of turn over.
STEPS IN TRAINING PROGRAMME
Training programmes are a costly affair, and a time consuming process. Therefore they need to be drafted very carefully. Usually in the organization of training programmes, the following steps are considered necessary:
1. Discovering or identifying the training needs
2. Getting ready for the job.
3. Preparation of the learner.
4. Presentation of operation and knowledge.
5. Performances try out.
6. Follow up and evaluation of the programme.
TRAINING METHODS AND TECHNIQUES
The forms and types of employee training methods are interrelated. An effective training technique generally fulfills these objectives:
Provide motivation to the trainee to improve job performance.
Develop a willingness to change.
Provide for the trainee's active participation in the learning process.
Provide knowledge of results about attempts to improve.
Permit practice where appropriate.

Techniques mostly used for training of employees
· ORIENTATION TRAINING:
Induction or orientation training seeks to adjust newly appointed employees to the work environment. Every new employee, is need to be made familiar with his job, his superiors and subordinate and with the rules and regulation of the organization induction training creates self confidence in the employee.
· ON THE JOB TRAINING:
It refers to the training provided with a view to increase the knowledge and skills of an employee for improving performance or the job employees may taught the correct method of handling equipment and machines used in a job. Most popular techniques under this type are:
1. THE COACHING METHOD:
Coaching is a method, which is used in developing managerial thinking processes as well as operative skills. It has certain advantages: it requires the least centralized staff coordination, periodic feedback and evaluation, it is learning by doing.
2. JOB ROTATION METHOD
Job rotation represents an excellent method for broadening the manager or potential manager, for turning specialist into generalist. It refers to the transfer or movement of executives from one job to another and from one plan to another. This method provides a great deal of job experience for those who are potential executives and who need broadening of outlook and an increased understanding of the various aspects of management. The emphasis is on diversified instead of specialized skills and knowledge
OFF THE JOB TRAINING
Off the job training simply means that training is not a part of every day job activity. The actual location may be in the company classrooms or in the places, which are owned by the company. These methods consist of
1. LECTURES: lectures are formal organized talks by the training specialist, the formal superior or other individual on specific topic for imparting knowledge to the trainees.
2. THE CONFERENCE METHOD: In this method, the participating individuals confer to discuss points of common interest to each other. It is a formal meeting, conducted in accordance with an organized plan, in which the leader seeks to develop knowledge and understanding by obtaining a considerable amount of oral participation of the trainees
3. SEMINARS: This is an established method for training. A seminar may be based on a paper prepared by one or more trainees on a subject selected in consultation with the person in charge of the seminar. The seminar compares the reactions of trainees, encourages discussion, and defines the general trends.
4. THE CASE STUDY METHOD: In this method, an actual business situation is described, in writing, in a comprehensive manner. The trainees are asked to appraise and analysis the problem-situation and suggest solution

worker incentive plans

Taylor’s Differential Piece Rate :This plan was devised by F.W. Taylor, who is known as the father of scientific management. Under this system, two piece rates are fixed :
i) Lower rate applicable to workers whose production is below standard.
ii) Higher rate is applicable to worker whose production is above the standard. So the workers is paid according to his degree of efficiency.
The efficiency of a worker may be determined as a percentage of either :
i) the time allowed for a job to the actual time taken, or
ii) acatual output to the standard output within a specified time.
Under this system, no guaranteed time rate is given. The slow worker is penalised while the efficient worker is duly rewarded.
Gantt's Bonus plan: This system was devised by Henry L. Gantt and it is a combination of time and piece rate. A standard time is fixed for performing a particular work. The worker’s efficiency is determined by comparing the actual time taken with the standard time.
If a worker takes more than the standard time to complete the work (i.e. his efficiency is below 100%), he is given wages on time basis. But if a worker takes the standrd time or less to perform the work (i.e. his efficiency is 100% or more), he is given wages on piece rate basis plus a bonus of 20% on the wages earned.
This plan provides incentives for efficient workers. It is not so harsh as the Taylor’s differential piece rate system. Day wages are guaranteed in this system. Bonus rate may vary depending on the nature of work.

Merrick's piece rate system:

This system is a modification of Taylor’s differential piece rate system. This system does not penalise the slow workers and the trainees but however there is provision of rewarding the efficient workers. The wage payment under this scheme is calculated in the following three rates :-

Level of output Rate of payment
a) Upto 83 % Ordinary piece rate
b) 83% to 100% 110% of ordinary piece rate.
c) Over 100% 120% of ordinary piece rate.

how to give incentives to workers working as teams

It is a bonus scheme under which bonus or premium is payable to a group of workers in place of individual workers.
Applicability :-
i) This plan is applicable where it is necessary to show collective interest in the work.

ii) Where output of an individual worker cannot be measured with ease.
iii) Where output is more dependent on the group efforts of workers.
iv) Where it is necessary that both direct and indirect workers would be rewarded.
Advantages :
i) It creates team spirit and leads to increase in output. This, in turn, lowers the cost of production.
ii) It eliminates excessive waste of time, materials etc.
Disadvantages :-
i) More efficient workers are not rewarded under this scheme.
ii) Difficulty arises as to the amount of incentive to be fixed and distributed.
Q.20. Give the meaning, advantages and disadvantages of profit sharing scheme.
Ans.: It is a scheme under which the employees are entitled to share the profits at an agreed percentage in addition to their wages. Workers can be given the share of profits in the form of cash or shares in the company.
Advantages :-
i) Efficiency of workers is recognised under this scheme which results in the increase in production.
ii) Labour turnover is minimised.

iii) More efficient workers are attracted to the organisation.
iv) Better co-operation of workers is obtained.
v) Permanent interest of workers in the future of the business is created if the share of profit is given in the form of shares in the company.
Disadvantages :-
i) It is difficult to fix the percentage of profit to be given to workers because workers may claim more share in the profit which the employer may not agree with.
ii) Profit is calculated at the end of the year and only at that time workers’ share of profit is given to them as incentive. Thus under this system, there is no provision of payment of incentive to the workers immediately after they complete a job. So it is very likely that workers may loose interest.
iii) Workers’ share profit in good years but do not bear the loss in bad years. It shows that their relationship with the company is like a fair weather friend.
iv) Workers have a suspicious look at the accounts shown by management as they do not understand the accounting and financial complicacies. So they think that they get less than reasonable share of profit.

EMPLOYEE PAYROLLS

: Payroll is prepared by the payroll department with the following objectives :
i) To determine gross and net earnings of each worker.
ii) To provide information about cost of wages for departments or jobs etc.
iii) To summarise wages according to cost centres
iv) To determine deductions like EPF, ESI, LIC premiums.
v) To help in ascertaining hourly rate of labour cost of each department.
vi) To calculate and summarise employer’s contribution to ESI and PF.
vii)To summarise the cost of overtime premium incurred and cost of bonus payment.
viii)To facilitate management in controlling labour cost by means of comparing actual wages with budgeted wages.

SENDING WORKERS TO PERFORM OUTSIDE THE ORGANISATION

Some times workers are required to work outside the factory. They are given wages at a higher rate than the regular workers. The outworkers are of the following two groups :-
i) Workers who work at their own premises with their own tools after receiving materials from the factory.
ii) Workers who are sent to the customers’ premises to perform their work.
Control of outworkers :-
For Control of outworkers, the following steps should be taken :
a) Attendance of outworkers working at the customer’s premises should be maintained.
b) Supervisor in charge of such workers would provide them all information regarding descrption of work, allotted time for the job etc.
c) Engaged time and booked time should be clearly recorded.
d) It should be ensured that wages paid should be charged to the job.
Control of outworkers has the following advantages :
i) The work is completed and delivered with in stipulated time and flow of work in the factory is not affected.
ii) Because of careful inspection, good quality of work is done by the workers.
iii) Proper accounts for the materials issued to these workers is maintained which help in ensuring the effective use of such materials