• TABLE OF CONTENTS
HIDE
 Front Cover
 Title Page
 Copyright
 Foreword
 Acknowledgement
 Table of Contents
 Module 3: Organization principles...
 Session 1: Organizational...
 Session 2: Structure of an...
 Session 3: Organizational design...
 Session 4: Case study
 Session 5: Case study
 Back Cover














Group Title: Management of agricultural research : a training manual
Title: Management of agricultural research
ALL VOLUMES CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00084651/00004
 Material Information
Title: Management of agricultural research a training manual
Physical Description: 11 v. : ; 30 cm.
Language: English
Creator: Asopa, V. N
Beye, Gora
Food and Agriculture Organization of the United Nations
Publisher: Food and Agriculture Organization of the United Nations
Place of Publication: Rome
Publication Date: 1997
 Subjects
Subject: Agriculture -- Research -- Management -- Developing countries   ( lcsh )
Agricultural research managers -- Developing countries   ( lcsh )
Genre: international intergovernmental publication   ( marcgt )
bibliography   ( marcgt )
non-fiction   ( marcgt )
 Notes
Bibliography: Includes bibliographical references.
Statement of Responsibility: prepared by V.N. Asopa and G. Beye.
 Record Information
Bibliographic ID: UF00084651
Volume ID: VID00004
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 39160428
lccn - 98210567
isbn - 9251040915 (module 1)

Table of Contents
    Front Cover
        Front Cover
    Title Page
        Page i
    Copyright
        Page ii
    Foreword
        Page iii
    Acknowledgement
        Page iv
    Table of Contents
        Page v
        Page vi
        Page vii
        Page viii
    Module 3: Organization principles and design
        Page 1
        Page 2
    Session 1: Organizational theories
        Page 3
        Page 4
        Session guide
            Page 5
            Page 6
            Page 7
            Page 8
        Exhibits
            Page 9
            Page 10
            Page 11
            Page 12
            Page 13
            Page 14
            Page 15
            Page 16
            Page 17
            Page 18
            Page 19
            Page 20
            Page 21
            Page 22
            Page 23
            Page 24
        Reading note
            Page 25
            Page 26
            Page 27
            Page 28
            Page 29
            Page 30
            Page 31
            Page 32
            Page 33
            Page 34
            Page 35
            Page 36
            Page 37
            Page 38
            Page 39
            Page 40
    Session 2: Structure of an organization
        Page 41
        Page 42
        Session guide
            Page 43
            Page 44
            Page 45
            Page 46
            Page 47
            Page 48
        Exhibits
            Page 49
            Page 50
            Page 51
            Page 52
            Page 53
            Page 54
            Page 55
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            Page 58
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            Page 61
            Page 62
            Page 63
            Page 64
            Page 65
            Page 66
            Page 67
            Page 68
        Reading note
            Page 69
            Page 70
            Page 71
            Page 72
            Page 73
            Page 74
            Page 75
            Page 76
            Page 77
            Page 78
            Page 79
            Page 80
    Session 3: Organizational design and change
        Page 81
        Page 82
        Session guide
            Page 83
            Page 84
        Exhibits
            Page 85
            Page 86
            Page 87
            Page 88
            Page 89
            Page 90
            Page 91
            Page 92
        Reading note
            Page 93
            Page 94
            Page 95
            Page 96
            Page 97
            Page 98
            Page 99
            Page 100
    Session 4: Case study
        Page 101
        Page 102
        Session guide
            Page 103
            Page 104
        Case study
            Page 105
            Page 106
            Page 107
            Page 108
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            Page 113
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            Page 116
            Page 117
            Page 118
    Session 5: Case study
        Page 119
        Page 120
        Session guide
            Page 121
            Page 122
            Page 123
            Page 124
        Case study
            Page 125
            Page 126
            Page 127
            Page 128
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            Page 140
            Page 141
    Back Cover
        Page 142
Full Text





VI


N Module



Organizational principles
and design


Food
and
Agriculture
Organization
of
the
United
Nations


'A


-*m


.1 U j













































Prepared by
V.N. Asopa
Indian Institute of Management
and
G. Beye
Research and Technology Development Service
Research, Extension and Training Division, FAO























FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS
Rome, 1997





















































M-67
ISBN 92-5-104093-1








All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted in any form or by any means, electronic,
mechanical, photocopying or otherwise, without the prior permission of the
copyright owner. Applications for such permission, with a statement of the
purpose and extent of the reproduction, should be addressed to the Director,
Information Division, Food and Agriculture Organization of the United Nations, Viale
delle Terme di Caracalla, 00100 Rome, Italy.


SFAO 1997


The designations employed and the presentation of material in this
publication do not imply the expression of any opinion whatsoever
on the part of the Food and Agriculture Organization of the United
Nations concerning the legal status of any country, territory, city or
area or of its authorities, or concerning the delimitation of its
frontiers or boundaries.









FOREWORD


There has been a tremendous development of agricultural research in developing countries
over the past few decades, during which time investment in agricultural research from both
national resources and international assistance has increased markedly. However, agricultural
research institutions are generally managed by veteran agricultural research workers promoted
for seniority rather than for management training and skills. Further, there are few courses
available on the management of agricultural research, and solutions and models used in the
developed world may not be appropriate for developing countries.
FAO has actively participated in strengthening the national agricultural research
systems of developing countries, and has stressed the importance of effective organization and
management for efficient research systems. The need for training in this area is great, and
resources particularly trained human resources are limited. FAO has therefore developed
a training programme on agricultural research management to support the training of trainers,
with the expectation of a multiplier effect, and to facilitate a common perception of the
structure and terminology of management, thus enhancing communication and understanding
among agricultural research managers in discussing management problems, solutions and
opportunities.
This training manual has been prepared as a basic reference resource for national
trainers, to help them structure and conduct their own courses on management at the institute
level. A separate manual will cover project and programme management. This manual is
based on the four structural functions of management: planning, organizing, monitoring and
controlling, and evaluating, each of which is covered in individual modules. Within each
module, the manual addresses pervasive management functions, including motivating,
leading, directing, priority setting, communicating and delegating, which are at all times a
concern to all managers. Topics such as leadership, motivation, human resources
management, policies and procedures are treated separately in individual sessions.
This manual as been designed for participatory learning through case studies, group
exercises, presentations by the participants and participatory lectures. Throughout the
manual, particular effort has been made to use the cases studied to capture the unique and
rich experience of developing country research managers in tackling policy, programme and
the day-to-day problems of managing research institutions and systems.
This publication is intended primarily for managers of agricultural research institutes
in developing countries and for higher education institutions interested in launching in-service
training courses on research management. However, it is hoped that agricultural research
managers everywhere will also find it useful. The manual provides a course structure with
contents that can be built upon and enriched. Users are therefore encouraged to send
suggestions for its improvement.


Louise O. Fresco
Director


Research, Extension and Training Division







Module 3 Organizational principles and design


ACKNOWLEDGEMENTS



The task of preparing a training manual on Agricultural Research Institute Management began
with the FAO Expert Consultation on Strategies for Research Management Training in
Africa, held at the International Livestock Centre for Africa (ILCA), Addis Ababa, Ethiopia,
12-16 December 1983. Following the recommendations of the consultation, and on the basis
of the curriculum design adopted, FAO embarked upon the preparation of this manual. In
the process of its preparation, many agricultural research managers and management
specialists have contributed. Besides the two main consultants, namely Dr Ronald P. Black,
Denver Research Institute, University of Denver, USA, who prepared the first draft, and Dr
V.N. Asopa, Professor at the Indian Institute of Management, Ahmedabad, India, who
prepared the current version of the manual, the contribution of the following specialists in
various fields must be singled out: Ramesh Bhat, J. Casas, A.K. Jain, F.S. Kanwar,
V. Martinson, Gopal Naik, P. Nath, R.K. Patel, T.P. Rama Rao, S.K. Sharma,
E.S. Tayengco, and J.S. Woolston. FAO expresses its gratitude to them all.


Special thanks are due to the International Service for National Agricultural Research
(ISNAR), which has willingly made available its valuable experience and relevant materials
throughout the preparation of the manual.


FAO also thanks all those authors and publishers who have allowed the use of
copyright material from their publications, and the courtesy is recognized in each case.


This manual has been prepared under the responsibility of the Research Development
Centre, Research and Technology Development Division, FAO, with the guidance of:
Mohamed S. Zehni, former Director; and J.H. Monyo, E. Venezian and B. Miiller-Haye,
past Chiefs of the Research Development Centre. Scientific supervision was provided by G.
Beye, Senior Officer, now Chief, Research Technology and Development Service.







Training manual for institute management v






TABLE OF CONTENTS



Previous Modules were:

INTRODUCTORY MODULE
INTRODUCTION TO THE MANUAL AND ITS PURPOSE
Appendix 1 Management orientation and decision making
Appendix 2 Case method
Appendix 3 Summary of course contents
Appendix 4 Illustrative schedule for a workshop on agricultural research institute
management
Appendix 5 Management training
Appendix 6 Planning and management of short-duration, executive development
programmes

Module 1 INSTITUTIONAL AGRICULTURAL RESEARCH:
ORGANIZATION AND MANAGEMENT
Session 1. MANAGEMENT: THOUGHT AND PROCESS
Session 2. OBJECTIVES AND ORGANIZATION OF AGRICULTURAL RESEARCH
Session 3. ORGANIZATION OF INTERNATIONAL RESEARCH
Session 4. ORGANIZATION OF NATIONAL AGRICULTURAL RESEARCH SYSTEMS

Module 2 RESEARCH PLANNING
Session 1. PRINCIPLES OF RESEARCH PLANNING
Session 2. THE INSTITUTE-LEVEL PLANNING PROCESS
Session 3. SETTING GOALS AND OBJECTIVES
Session 4. FROM OBJECTIVES TO AN OPERATIONAL PLAN
Session 5. PARTICIPATORY PLANNING EXERCISE
Session 6. CASE STUDY: PLANNING AGRICULTURAL RESEARCH IN MUGHAL
SULTANATE

This Module is:

Module 3 ORGANIZATIONAL PRINCIPLES AND DESIGN
Page
Session 1. ORGANIZATIONAL THEORIES 3
Session guide: Organizational theories 5
Reading note: Organizational theories 25
Classical organization theory 25
Taylor's Scientific Management approach 25
Weber's Bureaucratic approach 26
Administrative theory 26
Neoclassical theory 27
Principles of the neoclassical approach 28






vi Module 3 Organizational principles and design


Modern theories 28
The systems approach 29
Socio-technical approach 29
The contingency or situational approach 30
The research organization as a social system 30
Goal setting 31
Integration and coordination 32
Process in the organization 35
Power in the organization 35
Communication in the organization 35
References 38

Session 2. STRUCTURE OF AN ORGANIZATION 41
Session guide: Structure of an organization 43
Reading note: Structure of an organization 69
Structure 69
Designing organizational structures 70
Principles of organization structure 70
Type of organizational structure 75
Classic organizational structure 75
Modern organization designs 76
Choosing the organization structure 78
References 79

Session 3. ORGANIZATIONAL DESIGN AND CHANGE 81
Session guide: Organizational design and change 83
Reading note: Organizational design and change 93
Organizational effectiveness and efficiency 93
Organizational development 94
The OD process 96
Socio-technical systems approach for organization re-design 96
OD techniques 97
References 99

Session 4. CASE STUDY: ESTABLISHMENT OF A DIRECTORATE OF RESEARCH AT
SORONNO UNIVERSITY OF AGRICULTURE 101
Session guide: Case study: Establishment of a Directorate of Research at
Soronno University of Agriculture 103
Case study: Establishment of a Directorate of Research at Soronno University
of Agriculture (SUA) 105
The agricultural and livestock research system of the Republic of Afritonia 107







Training manual for institute management


Soronno University of Agriculture 108
Agricultural research at SUA 109
Funding of research 109
Mechanism for administering SUA research funds 109
Formulation of research strategies and policies 110
Annual record of research 110
University budget 111
Appendix 1: Proposal for the establishment of a directorate of research at
Soronno University of Agriculture 112
Appendix 2: Abstract minutes of the 5" Meeting of the Research and
Publications Committee of the Senate 116

Session 5. CASE STUDY: ORGANIZATIONAL CHANGE AT SAMARU, NIGERIA 119
Session guide: Organizational change at Samaru, Nigeria 121
Case study: Organizational change at Samaru, Nigeria 125
Background 125
The structure of the research organization 127
Proposals for a change in the organizational structure 131
Appendix 1: Summary programme budgets and special expenditures, 1983 134
Appendix 2: Proposal for a new research project 135
Appendix 3: Annual review of research projects 1982 season 137
Appendix 4: Current organizational structure of IAR and the Faculty of
Agriculture, Samaru 139
Appendix 5: Proposed organizational structure of IAR and the Faculty of
Agriculture, Samaru 140

The other Modules are:

Module 4 LEADERSHIP, MOTIVATION, TEAM BUILDING AND
CONFLICT MANAGEMENT
Session 1. LEADERSHIP
Session 2. MOTIVATION
Session 3. TEAM BUILDING
Session 4. THE IRRI AGRICULTURAL EQUIPMENT PROGRAMME CASE STUDY: IRRI
MANAGEMENT COMPARES IRRI WITH DEVELOPING COUNTRY RESEARCH INSTITUTES
Session 5. CONFLICT MANAGEMENT
Session 6. CONFLICT MANAGEMENT CASE STUDY: DR AGADIR

Module 5 MANAGING HUMAN RESOURCES
Session 1. RECRUITING AND MAINTAINING STAFF IN THE RESEARCH ENVIRONMENT
Session 2. THE PROFESSIONAL STAFF
Session 3. HUMAN RESOURCES MANAGEMENT EXERCISE
Session 4. PERFORMANCE APPRAISAL
Session 5. PERFORMANCE APPRAISAL CASE STUDY: SUZENE KOPEC
Session 6. EXERCISE IN DESIGNING PERFORMANCE EVALUATION FORMATS







viii Module 3 Organizational principles and design


Module 6 MANAGEMENT INFORMATION SYSTEMS, COMPUTERS AND
NETWORK TECHNIQUES
Session 1. MANAGEMENT INFORMATION SYSTEMS (MIS)
Session 2. MIS EXERCISE
Session 3. COMPUTERS AS MANAGEMENT TOOLS
Session 4. NETWORK TECHNIQUES
Session 5. PERT AND CPM EXERCISE

Module 7 FINANCIAL MANAGEMENT
Session 1. FINANCIAL MANAGEMENT 1: COMPONENTS AND INFORMATION NEEDS
Session 2. FINANCIAL MANAGEMENT 2: PLANNING AND BUDGETING
Session 3. FINANCIAL MANAGEMENT 3: PROJECT DESIGN AND IMPLEMENTATION
Session 4. CASE STUDY: FARO ARROYA
Session 5. GENERATING FUNDS THROUGH CONSULTING AS AN INSTITUTIONAL
ACTIVITY. CASE STUDY: FOOD TECHNOLOGY RESEARCH INSTITUTE OF DONGAL

Module 8 RESEARCH-EXTENSION LINKAGE
Single Session: RESEARCH-EXTENSION LINKAGE

Module 9 INFORMATION SERVICES AND DOCUMENTATION
Session 1. SCIENTIFIC AND TECHNICAL INFORMATION IN A DEVELOPING-COUNTRY
RESEARCH INSTITUTION
Session 2: INFORMATION AS AN INPUT TO RESEARCH
Session 3: INFORMATION AS AN OUTPUT OF RESEARCH
Session 4: COOPERATION IN NATIONAL PROGRAMMES
Session 5: EXERCISE ON BARRIERS TO THE FLOW OF INFORMATION

Module 10 INSTITUTE EVALUATION
Single Session: INSTITUTE EVALUATION







Training manual for institute management 1


This module comprises five sessions:


1. ORGANIZATIONAL THEORIES
2. STRUCTURE OF AN ORGANIZATION
3. ORGANIZATIONAL DESIGN AND CHANGE
4. CASE STUDY: ESTABLISHMENT OF A DIRECTORATE OF RESEARCH AT SORONNO
UNIVERSITY OF AGRICULTURE
5. CASE STUDY: ORGANIZATIONAL CHANGE AT SAMARU, NIGERIA.



Beginning with a discussion on various organizational theories in Session 1, during the next
two sessions the module covers issues of design and change in the organizational structure.
These concepts are applicable to problem solving in the two case studies presented in the
fourth and fifth sessions. The resource person might wish to discuss various organizational
theories in this module if not discussed fully in Module 1, where some of these theories are
also mentioned.
If time is a constraint, the resource person might wish to simply circulate to participants
the note on 'Structure of an Organization,' and conduct a plenary lecture-cum-discussion
session around that. The other two notes would then serve as background readings for the
resource person. During the session, as well as in the sessions on case discussion, issues in
organizational design and change should be discussed at appropriate places, applying the
theoretical concepts given in the reading notes. Of the two case studies, the resource person
could choose to use either or both.


MODULE 3


ORGANIZATIONAL PRINCIPLES
AND DESIGN










Training manual for institute management 3


DATE


TIME


FORMAT Plenary participatory lecture


TRAINER




OBJECTIVES
At the end of this session, participants will be able to understand and appreciate:
1. Classical, neoclassical and modern theories of organization.
2. The research organization as a social system.
3. The importance of and process for goal setting in an organization.
4. The need for and methods of integration in an organization.
5. The concept of power in an organization.
6. Communication in the organization.
7. The process and models of decision making.


Module 3 Session 1


Organizational theories






4 Module 3 Session 1 Organizational theories


INSTRUCTIONAL MATERIALS

Exhibit 1 Organization theories
Exhibit 2 Taylor's Principles of Scientific Management
Exhibit 3 Weber's Bureaucratic Approach
Exhibit 4 Fayol's Principles of Management: Administrative Theory
Exhibit 5 Principles of the neoclassical approach
Exhibit 6 A modern approach to organization characteristics
Exhibit 7 A modern approach to organizations: the Systems Approach
Exhibit 8 A research organization as a social system
Exhibit 9 The importance of goal setting
Exhibit 10 The process of goal setting
Exhibit 11 The need for integration
Exhibit 12 Methods of integration
Exhibit 13 Organization-based power
Exhibit 14 Communication in the organization
Exhibit 15 The process of decision making
Exhibit 16 Models of decision making




REQUIRED READING

Reading note: Organizational theories




BACKGROUND READING

None.




SPECIAL EQUIPMENT AND AIDS

Overhead projector and chalkboard







Training manual for institute management


ORGANIZATIONAL THEORIES


There are several theories which explain the organization and its structure (EXHIBIT 1).
Classical organization theory includes the scientific management approach, Weber's
bureaucratic approach, and administrative theory.
The scientific management approach is based on the concept of planning of work to
achieve efficiency, standardization, specialization and simplification. The approach to
increased productivity is through mutual trust between management and workers. Taylor
(1947) proposed four principles of scientific management:
science, not rule-of-thumb;
scientific selection of the worker;
management and labour cooperation rather than conflict; and
scientific training of workers.
Show EXHIBIT 2 and discuss these principles.
Weber's bureaucratic approach considers the organization as a part of broader society.
The organization is based on the principles of:
structure;
specialization;
predictability and stability;
rationality; and
democracy.
Show EXHIBIT 3, and discuss Weber's bureaucratic approach. Observe that this approach is
considered rigid, impersonal, self-perpetuating and empire building.
Administrative theory was propounded by Henry Fayol and is based on several
principles of management (EXHIBIT 4). In addition, management was considered as a set of
planning, organizing, training, commanding and coordinating functions.


Module 3 Session 1

Session Guide


5







6 Module 3 Session 1 Organizational theories


Neoclassical theory emphasizes individual or group behaviour and human relations in
determining productivity. The main features of the neoclassical approach are individual,
work group and participatory management. Show EXHIBIT 5 and discuss the principles.
Show EXHIBIT 6 on a modern approach to organization characteristics. Modern
theories are based on the concept that the organization is an adaptive system which has to
adjust to changes in its environment. Discuss the important characteristics of the modern
approach to organizations. Modern theories include the systems approach, the socio-technical
approach, and the contingency or situational approach.
The systems approach considers the organization as a system composed of a set of
inter-related and thus mutually dependent sub-systems. Thus the organization consists
of components, linking processes and goals (EXHIBIT 7).
The socio-technical approach considers the organization as composed of a social
system, technical system and its environment. These interact among themselves and it is
necessary to balance them appropriately for effective functioning of the organization.
The contingency or situational approach recognizes that organizational systems are
inter-related with their environment and that different environments require different
organizational relationships for effective working of the organization.
Ask participants whether they consider the research organization as a social system.
Since scientists constitute the core resource in a research organization, their growth is as
important as the growth of the organization. A social organization is characterized by
complexity, degrees of inter-dependence between sub-systems, openness, balance and
multiplicity of purposes, functions and objectives. Show EXHIBIT 8 and discuss each of these
characteristics.
Now move to goal setting in an organization. Ask participants "Why should goals be
set?" Goals are set to increase performance and provide control. Show EXHIBIT 9 and
discuss how goal setting improves performance. How are goals set? Following management
by objectives, the process of goal setting involves five steps (EXHIBIT 10). First, the overall
objectives of the organization are set and then an action plan is evolved. The second step is
to prepare members in the organization for successful implementation of the action plan.
Individual goals are set in the third step. Periodic appraisal and feedback is the fourth step,
to ensure smooth implementation of the action plan. Finally, an appraisal of performance by
results takes place.
Now discuss the concept of integration and coordination in the organization. These are
controlling mechanisms for smooth functioning of the organization. Organizational
differentiation is the unbundling and re-arranging of the activities. Integration is re-grouping
and re-linking them. The need for integration arises in the face of environmental complexity,
diversity and change. Show EXHIBIT 11 and discuss some of the important reasons which
necessitate integration.
How is integration achieved? Obviously, the structure of the organization should
facilitate proper coordination and integration of different specialized units. What could
happen were the organizational structure not proper? Integration is achieved through vertical
coordination along the hierarchy, decision making levels, and span of control (EXHIBIT 12).
There are several methods to improve integration. These include rules and procedures and
professional training.







Training manual for institute management 7


Next discuss the process in the organization, which involves the concept of power,
decision making and communication. Power refers to the ability to get an individual or group
to do something or to change in some way. Power could emanate from position, economic
status, knowledge, performance, personality, physical or ideological traits. Observe that
power is one of the strongest motives, and affects setting of objectives and availability of
resources in an organization. Next discuss the concept, and the various types of organization-
based power (EXHIBIT 13).
Communication is another important process in the organization and is a key
mechanism for achieving integration and coordination of the activities of specialized units at
different levels in the organization. Communication can be horizontal, downward or upward
(EXHIBIT 14).
Finally, discuss decision making in an organization. It begins with goal setting,
identification and evaluation of alternatives and the choice of criteria. Show EXHIBIT 15 and
discuss the important steps involved in decision making. There are several models of
decision making (EXHIBIT 16).



























































i







TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 1


EXHIBIT 1


ORGANIZATION THEORIES




CLASSICAL ORGANIZATION THEORY

* Scientific Management approach
* Weber's Bureaucratic approach
* Administrative theory.




NEOCLASSICAL THEORY




MODERN ORGANIZATION THEORY

* Systems approach
* Socio-technical approach
* Contingency or Situational approach








TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 1


EXHIBIT 2


TAYLOR'S PRINCIPLES OF SCIENTIFIC
MANAGEMENT


* Science, not rule-of-thumb;

* Scientific selection of the worker

* Management and labour cooperation rather than
conflict

* Scientific training of workers


I






TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 1


Structure

Specialization

Predictability and stability

Rationality

Democracy


EXHIBIT 3







TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 1


EXHIBIT 4


FAYOL'S PRINCIPLES OF MANAGEMENT:
ADMINISTRATIVE THEORY


Division of work (specialization)
Authority and responsibility
Discipline
Unity of command
Unity of direction
Subordination of individual interest
Remuneration of personnel
Centralization
Scalar chain
Order
Equity
Stability of tenure of personnel


Initiative
Esprit de corps
The concept of
Committees
Functions of ma
- planning
- organizing
- training
- commanding
- coordinating


line and staff

nagement







TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 1


EXHIBIT 5


PRINCIPLES OF THE NEOCLASSICAL
APPROACH


INDIVIDUAL

WORK GROUP


PARTICIPATIVE MANAGEMENT








TRAINING MANUAL FOR INSTITUTE MANAGEMENT HIIT 6
Module 3 Session 1
















CHARACTERISTICS OF MODERN
APPROACHES TO THE ORGANIZATION





Systems viewpoint
Dynamic process of interaction
Multilevelled and multidimensional
Multimotivated
Probabilistic
Multidisciplinary
Descriptive
Multivariable
Adaptive







TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 1


EXHIBIT 7


MODERN APPROACHES TO ORGANIZATION:
THE SYSTEMS APPROACH




COMPONENTS

The individual
The formal and informal organization
Patterns of behaviour
Role perception
The physical environment

LINKING PROCESSES


Communication
Balance
Decision analysis

GOALS OF ORGANIZATION

Growth
Stability
Interaction







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EXHIBIT 8


THE RESEARCH ORGANIZATION AS A
SOCIAL SYSTEM




CHARACTERISTICS OF THE
RESEARCH ORGANIZATION







Complexity

Degree of inter-dependence between sub-systems

Openness of the social organization

Balance in the social organization

Multiplicity of purposes, functions and objectives








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EXHIBIT 9


* Clarifies what people have to do
* Identifies problems and facilitates solution
* Reduces ambiguity in work
* Establishes a relationship between work and
organizational achievements
* Assists individuals to allocate time, efforts and
personal resources
* Provides a sense of accomplishment and
contentment
* Provides control over the people in the organization
* Measures performance










TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 1


EXHIBIT 10


THE PROCESS OF GOAL SETTING
(Management by objectives)


1. Setting overall organizational objectives and action
plan
identifying key result areas
identifying measures of performance
stating objectives
agreement on objectives and goals


2. Develop the organization

3. Set individual objectives


4. Periodic appraisal and feedback


5. Appraisal by results










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EXHIBIT 11


THE NEED FOR INTEGRATION


* Environmental complexity, diversity and change

* Increase in structural dimensions

* Specialization

* Across various specialized units each pursuing
individual objectives to ensure that organizational
goals are being pursued

* Conflict resolution


* Better performance and productivity






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EXHIBIT 12


METHODS OF INTEGRATION




COORDINATING VERTICALLY
THROUGH THE HIERARCHY

DETERMINING THE
DECISION MAKING LEVEL

DECIDING THE
SPAN OF CONTROL







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EXHIBIT 13


REWARD POWER


COERCIVE POWER


EXPERT POWER


CHARISMATIC POWER









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EXHIBIT 14


UPWARD




HORIZONTAL




DOWNWARD







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EXHIBIT 15


THE PROCESS OF DECISION MAKING



SETTING ORGANIZATIONAL GOALS



ESTABLISHING PERFORMANCE CRITERIA



CLASSIFYING AND DEFINING THE PROBLEM



DEVELOPING CRITERIA FOR A SUCCESSFUL
SOLUTION



GENERATING ALTERNATIVES



COMPARING ALTERNATIVES TO CRITERIA



CHOOSING AN ALTERNATIVE



IMPLEMENTING THE DECISION



MONITORING THE DECISION AND GETTING
FEEDBACK







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Module 3 Session 1















MODELS OF DECISION MAKING





Economic or Rational Choice model


Incremental Bargaining method


Simon's Bounded Rationality model


Peters and Waterman's Well Managed model


Quantitative techniques







Training manual for institute management 25


ORGANIZATIONAL THEORIES


Organizational theories which explain the organization and its structure can be broadly
classified as classical or modern.


CLASSICAL ORGANIZATION THEORY


Classical organization theories (Taylor, 1947;
formal organization and concepts to increase
scientific management concepts, Weber gave the
the administrative theory of the organization.
development of classical organization theory.


Weber, 1947; Fayol, 1949) deal with the
management efficiency. Taylor presented
bureaucratic approach, and Fayol developed
They all contributed significantly to the


TAYLOR'S SCIENTIFIC MANAGEMENT APPROACH
The scientific management approach developed by Taylor is based on the concept of planning
of work to achieve efficiency, standardization, specialization and simplification.
Acknowledging that the approach to increased productivity was through mutual trust between
management and workers, Taylor suggested that, to increase this level of trust,
the advantages of productivity improvement should go to workers,
physical stress and anxiety should be eliminated as much as possible,
capabilities of workers should be developed through training, and
the traditional 'boss' concept should be eliminated.
Taylor developed the following four principles of scientific management for improving
productivity:
Science, not rule-of-thumb Old rules-of-thumb should be supplanted by a scientific
approach to each element of a person's work.
Scientific selection of the worker Organizational members should be selected based on
some analysis, and then trained, taught and developed.


Module 3 Session 1

Reading Note







26 Module 3 Session 1 Organizational theories


Management and labour cooperation rather than conflict Management should collaborate
with all organizational members so that all work can be done in conformity with the
scientific principles developed.
Scientific training of the worker Workers should be trained by experts, using scientific
methods.


WEBER'S BUREAUCRATIC APPROACH
Considering the organization as a segment of broader society, Weber (1947) based the
concept of the formal organization on the following principles:
Structure In the organization, positions should be arranged in a hierarchy, each with a
particular, established amount of responsibility and authority.
Specialization Tasks should be distinguished on a functional basis, and then separated
according to specialization, each having a separate chain of command.
Predictability and stability The organization should operate according to a system of
procedures consisting of formal rules and regulations.
Rationality Recruitment and selection of personnel should be impartial.
Democracy Responsibility and authority should be recognized by designations and not
by persons.
Weber's theory is infirm on account of dysfunctions (Hicks and Gullett, 1975) such as
rigidity, impersonality, displacement of objectives, limitation of categorization, self-
perpetuation and empire building, cost of controls, and anxiety to improve status.


ADMINISTRATIVE THEORY
The elements of administrative theory (Fayol, 1949) relate to accomplishment of tasks, and
include principles of management, the concept of line and staff, committees and functions of
management.
Division of work or specialization This increases productivity in both technical and
managerial work.
Authority and responsibility These are imperative for an organizational member to
accomplish the organizational objectives.
Discipline Members of the organization should honour the objectives of the organization.
They should also comply with the rules and regulations of the organization.
Unity of command This means taking orders from and being responsible to only one
superior.
Unity of direction Members of the organization should jointly work toward the same
goals.
Subordination of individual interest to general interest The interest of the organization
should not become subservient to individual interests or the interest of a group of
employees.






Training manual for institute management 27




Remuneration of personnel This can be based on diverse factors such as time, job, piece
rates, bonuses, profit-sharing or non-financial rewards.
Centralization Management should use an appropriate blend of both centralization and
de-centralization of authority and decision making.
Scalar chain If two members who are on the same level of hierarchy have to work
together to accomplish a project, they need not follow the hierarchy level, but can
interact with each other on a 'gang plank' if acceptable to the higher officials.
Order The organization has a place for everything and everyone who ought to be so
engaged.
Equity Fairness, justice and equity should prevail in the organization.
Stability of tenure of personnel Job security improves performance. An employee
requires some time to get used to new work and do it well.
Initiative This should be encouraged and stimulated.
Esprit de corps Pride, allegiance and a sense of belonging are essential for good
performance. Union is strength.
The concept of line and staff The concept of line and staff is relevant in organizations
which are large and require specialization of skill to achieve organizational goals. Line
personnel are those who work directly to achieve organizational goals. Staff personnel
include those whose basic function is to support and help line personnel.
Committees Committees are part of the organization. Members from the same or
different hierarchical levels from different departments can form committees around a
common goal. They can be given different functions, such as managerial, decision
making, recommending or policy formulation. Committees can take diverse forms,
such as boards, commissions, task groups or ad hoc committees. Committees can be
further divided according to their functions. In agricultural research organizations,
committees are formed for research, staff evaluation or even allocation of land for
experiments.
Functions of management Fayol (1949) considered management as a set of planning,
organizing, training, commanding and coordinating functions. Gulick and Urwick
(1937) also considered organization in terms of management functions such as
planning, organizing, staffing, directing, coordinating, reporting and budgeting.


NEOCLASSICAL THEORY


Neoclassical theorists recognized the importance of individual or group behaviour and
emphasized human relations. Based on the Hawthorne experiments, the neoclassical approach
emphasized social or human relationships among the operators, researchers and supervisors
(Roethlisberger and Dickson, 1943). It was argued that these considerations were more
consequential in determining productivity than mere changes in working conditions.
Productivity increases were achieved as a result of high morale, which was influenced by the
amount of individual, personal and intimate attention workers received.







Module 3 Session 1 Organizational theories


PRINCIPLES OF THE NEOCLASSICAL APPROACH
The classical approach stressed the formal organization. It was mechanistic and ignored
major aspects of human nature. In contrast, the neoclassical approach introduced an informal
organization structure and emphasized the following principles:
The individual An individual is not a mechanical tool but a distinct social being, with
aspirations beyond mere fulfilment of a few economic and security works. Individuals
differ from each other in pursuing these desires. Thus, an individual should be
recognized as interacting with social and economic factors.
The work group The neoclassical approach highlighted the social facets of work groups
or informal organizations that operate within a formal organization. The concept of
'group' and its synergistic benefits were considered important.
Participative management Participative management or decision making permits workers
to participate in the decision making process. This was a new form of management to
ensure increases in productivity.
Note the difference between Taylor's 'scientific management' which focuses on work and
the neoclassical approach which focuses on workers.


MODERN THEORIES


Modern theories tend to be based on the concept that the organization is a system which has
to adapt to changes in its environment. In modern theory, an organization is defined as a
designed and structured process in which individuals interact for objectives (Hicks and Gullet,
1975). The contemporary approach to the organization is multidisciplinary, as many
scientists from different fields have contributed to its development, emphasizing the dynamic
nature of communication and importance of integration of individual and organizational
interests. These were subsequently re-emphasized by Bernard (1938) who gave the first
modern and comprehensive view of management. Subsequently, conclusions on systems
control gave insight into application of cybernetics. The operation research approach was
suggested in 1940. It utilized the contributions of several disciplines in problem solving.
Von Bertalanffy (1951) made a significant contribution by suggesting a component of general
systems theory which is accepted as a basic premise of modern theory.
Some of the notable characteristics of the modern approaches to the organization are:
a systems viewpoint,
a dynamic process of interaction,
multilevelled and multidimensional,
multimotivated,
probabilistic,
multidisciplinary,
descriptive,
multivariable, and
adaptive.







Training manual for institute management 29


Modern understandings of the organization can be broadly classified into:
the systems approach,
socio-technical theory, and
a contingency or situational approach.


THE SYSTEMS APPROACH
The systems approach views organization as a system composed of interconnected and thus
mutually dependent sub-systems. These sub-systems can have their own sub-sub-systems.
A system can be perceived as composed of some components, functions and processes
(Albrecht, 1983). Thus, the organization consists of the following three basic elements
(Bakke, 1959):
(i) Components There are five basic, interdependent parts of the organizing system,
namely:
the individual,
the formal and informal organization,
patterns of behaviour emerging from role demands of the organization,
role comprehension of the individual, and
the physical environment in which individuals work.
(ii) Linking processes The different components of an organization are required to
operate in an organized and correlated manner. The interaction between them is
contingent upon the linking processes, which consist of communication, balance and
decision making.
Communication is a means for eliciting action, exerting control and effecting
coordination to link decision centres in the system in a composite form.
Balance is the equilibrium between different parts of the system so that they keep
a harmoniously structured relationship with one another.
Decision analysis is also considered to be a linking process in the systems
approach. Decisions may be to produce or participate in the system.
Decision to produce depends upon the attitude of the individual and the
demands of the organization. Decision to participate refers to the individual's
decisions to engross themselves in the organization process. That depends on
what they get and what they are expected to do in participative decision
making.
(iii) Goals of organization The goals of an organization may be growth, stability and
interaction. Interaction implies how best the members of an organization can interact
with one another to their mutual advantage.


SOCIO-TECHNICAL APPROACH
It is not just job enlargement and enrichment which is important, but also transforming
technology into a meaningful tool in the hands of the users. The socio-technical systems








30 Module 3 Session 1 Organizational theories


approach is based on the premise that every organization consists of the people, the technical
system and the environment (Pasmore, 1988). People (the social system) use tools,
techniques and knowledge (the technical system) to produce goods or services valued by
consumers or users (who are part of the organization's external environment). Therefore,
an equilibrium among the social system, the technical system and the environment is
necessary to make the organization more effective.


THE CONTINGENCY OR SITUATIONAL APPROACH
The situational approach (Selznick, 1949; Burns and Stalker, 1961; Woodward, 1965;
Lawrence and Lorsch, 1967) is based on the belief that there cannot be universal guidelines
which are suitable for all situations. Organizational systems are inter-related with the
environment. The contingency approach (Hellriegel and Slocum, 1973) suggests that
different environments require different organizational relationships for optimum effective-
ness, taking into consideration various social, legal, political, technical and economic factors.



THE RESEARCH ORGANIZATION AS A SOCIAL SYSTEM


An organization is a continuing system, able to distinguish and integrate human activities.
The organization utilizes, transforms and joins together a set of human, material and other
resources for problem-solving (Bakke, 1959). The main function of an organization is to
satisfy specific human needs in interaction with other sub-systems of human activities and
resources in the given environment. In a research organization, individual needs of
researchers are more often in conflict with organizational needs than in any other
organization. Therefore, growth of the organization should concurrently also promote growth
of the individual.


Characteristics of the research organization
Social organizations are characterized by their complexity, degree of inter-dependence
between sub-systems, openness, balance, and multiplicity of purposes, functions and
objectives (Huse and Bowditch, 1973).
'Complexity A research organization consists of a number of individuals, groups, or
departments, each of which is a sub-system within the total system. The prevalence
of these sub-systems makes the organization complex.
Degree of inter-dependence of sub-systems The various sub-systems of the research
organization are inter-dependent which makes it further complex, as each sub-system
has its way of working, requirements, behaviour, etc.
Openness of the social organization Research organizations operate in the wider
environment of a larger organization or system, and are therefore open. They have to
function in harmony with environmental requirements, goals and functions. This may
cause conflicts in the organization unless the sub-systems are appropriately balanced.







Training manual for institute management 31


* Balance and the social organization Social organizations are highly dynamic. Forces
such as researchers, managerial hierarchy and various inputs from within and outside
the organization have to be balanced for the smooth functioning of the organization.
Multiplicity of purpose, functions and objectives Most research organizations have a
multiplicity of sub-systems, each of which has dynamic interactions with others. In the
research organization, a researcher can be viewed as a sub-system with specific needs,
goals and functioning, although those needs, goals and functioning may sometimes not
match those of the organization.


GOAL SETTING
In an organization, goal setting is one of the control systems, a component of the appraisal
process and an effective tool for human resource management (Locke, 1968; Sherwin, 1976).
The concept of goal setting is now used to increase the performance of the organization as
well as the individual through management by objectives. Drucker (1954) suggested that
management by objectives can be useful for managers for effectively managing the future
direction of the organization.


Importance of goal setting
Well specified and clear goals improve performance in an organization by:
making clear what people have to do;
solving specific problems related to the work as they emerge during the process of goal
setting;
reducing ambivalence in the assigned work and thus encouraging increasing efforts;
supporting people to find a connection between their work and the achievements of the
organization;
assisting individuals in allocating their time, efforts and personal resources to important
areas;
giving a feeling of accomplishment and contentment when specified goals are achieved;
and
providing some control over the people and their work in an organization. Goals are an
objective way of assessing performance in the organization.
There is a definite linkage between goal setting and performance. Latham (1981) reported
that
specified goals are better than vague or general goals,
difficult and challenging but attainable goals are better than relatively easy goals,
goals evolved through participation and accepted by workers are preferred to assigned
goals, and
objective and timely feedback about progress toward goals is better than no feedback.







32 Module 3 Session 1 Organizational theories


The process of goal setting
Peter Drucker suggested thirty years ago that a systematic approach to goal setting and
appraising by results leads to improved organizational performance and employee satisfaction.
This concept of goal setting is now widely used in most organizations. The process of goal
setting (or management by objectives as it is often called) involves several steps (Luthans,
1985):
(i) The first step in the process is setting general organizational objectives and preparing
an action plan. Goal setting is based on a top-down approach, and involves:
identifying key result areas in the organization,
identifying measures of performance,
stating objectives, and
evolving agreement between members of top management on the objectives and
goals set.
(ii) Once goals are formulated, the second step is to activate the system for
implementation. For successful implementation of such a system, it is essential to
prepare the members in the organization.
(iii) The third step is to set individual goals. Individual goals are decided jointly by
superiors and subordinates. Once goals are finalized, an action plan is developed for
implementation.
(iv) The fourth step involves:
ensuring that work is carried out in the right direction,
identifying obstacles, and
making adjustments to eliminate obstacles.
(v) Finally comes appraisal of performance of the individual against the set targets. An
appraisal and feedback system is an important part of goal setting. The individual
is given feedback on his or her performance, and provided with suitable rewards and
motivation.


INTEGRATION AND COORDINATION
Integration and coordination refer to integration of the objectives and activities of specialized
units or sub-systems in order to achieve the organization's overall strategic objectives.
Coordination and integration are necessary controlling mechanisms to ensure placid
functioning, particularly when organizations become large and complex. Integration aims at
ensuring that different sub-systems work towards common goals.
Integration of the organizational sub-systems relates to differentiation and division of
labour in the organization. Organizational differentiation means un-bundling and re-arranging
of activities. Re-grouping and re-linking them is organizational integration (Lawrence and
Lorsch, 1967). When different units are assigned different tasks and functions, they set
independent goals for performing the assigned tasks and function accordingly. In such
situations, integration of the activities of different sub-systems is necessary to facilitate
smooth working and to bridge communication gaps.







Training manual for institute management 33




In research organizations, integration of research units and administrative units is very
important for the smooth functioning of research activities.


Need for integration
Integration and coordination is necessary for several reasons (Anderson, 1988):
As the organization encounters environmental complexity, diversity and change, it
requires more and more differentiation of its units. Need for integration also increases
with increase in structural dimensions.
Different specialized units are required to achieve broad strategic objectives rather than
only individual objectives. For the purpose of achieving these strategic objectives, a
research manager has to coordinate different units.
A research manager has to settle conflicts and disputes between different specialized
units. When different units are assigned different goals and tasks, conflicts are
inevitable. A manager needs to integrate and coordinate the work of different sub-units
to effectively resolve conflicts.
Managers also need to coordinate and integrate independent units or research stations to
ensure that their objectives and functioning are in consonance with overall
organizational goals and strategies.
The necessity for coordination increases with increased specialization, because increases
in specialized functions leads to decision making in specialized units or sub-units. This
may cause conflict.


Methods of integration
Within any large organization it is important to have proper communication systems to enable
different sub-systems to coordinate various activities and avoid obstacles in the work
environment. Lack of proper coordination often causes conflicts in an organization. To
ensure proper coordination in research organizations, the research manager has to take care
of behavioral dimensions (such as motivation and conflicts) while ensuring an efficient
overall structure.


Achieving integration
The structure of a research institution needs to be suitably designed to facilitate proper
coordination and integration of different specialized units. A poorly designed structure may:
hinder coordination and integration,
cause conflicts, and
lead to poor performance.
Coordinating vertically through hierarchy
Work is assigned to specialized units and coordinated by a manager. A hierarchy (vertical)
of authority evolves from lower to higher levels. A manager can use the following principles
of hierarchy of authority for integrating specialized units:







34 Module 3 Session 1 Organizational theories


The unity of command principle. Every worker should report to only one manager.
The scalar principle. Decision making authority (and a chain of command) should be
from the top to lower levels.
Responsibility principle. A manager is accountable for the performance of his or her
subordinates. In turn, subordinates are responsible to their manager for their
performance.
Determining the decision making level
A manager has to decide about the levels at which decisions are to be taken, and this would
depend upon the type, impact and values of decisions.
Deciding the span of control
Span of control refers to the number of specialized activities or personnel supervised by one
manager. There is no optimal number for a span of control and number of levels in the
hierarchy. In fact, span of control and hierarchy levels are inter-related and depend on
situational factors (Barkdull, 1963). Some of the important situational factors are:
Similarity of functions.
Complexity of supervised functions.
Direction and control needed by subordinates.
Coordination required by the manager.
Planning required by the manager.
Organizational help received by the manager.


Methods to improve integration
There are several ways to improve integration, the most common being through a hierarchy
of authority. For this, specialized units whose activities are inter-related could be put under
one manager.
Coordination can also be improved through
developing rules and procedures wherever possible,
providing professional training,
liaison roles, and
use of professional committees involving managers from different specialized units.
Using committees to improve coordination is more difficult than other methods, as it requires
considerable skills in group dynamics and technical knowledge on the part of the chairperson
of the committee, The person who takes this role must not be involved directly in the work,
but tries to assist managers in improving integration.







Training manual for institute management 35


PROCESS IN THE ORGANIZATION


Norms for proper functioning of the organization are evolved through organizational
processes. These relate to power, decision making, communication, motivation and
leadership. Socialization also plays a significant role.


POWER IN THE ORGANIZATION
Power refers to the ability to get an individual or group to do something or to change in some
way. Politics is a process to achieve power. Power is inter-related with authority and
influence. Bernard (1938) defined authority in terms of 'legitimate power.' Power is
considered as an essential element in any human organization so as to engender order and
coordinate various activities. Power provides one of the strongest motivations (Galbraith,
1952). It also affects the setting of objectives and the distribution of resources in an
organization. The source of power can be positional, economic, knowledge, performance,
personality, physical or ideological (Hicks, 1975). Organization-based power refers to the
power beyond the range of legitimate authority because of the position which a person has
in the organization (Milgram, 1974). This power can be controlled and transferred by the
organization.
Four categories of organizational power can identified, according to source (French and
Raven, 1959):
Reward power This refers to the control over rewards desired by others. This is given
by persons at a higher level or by decision-makers.
Coercive power This is the power to give punishment. This too is given by persons at
a higher level or by decision-makers.
Expert power This is based on personal skills, knowledge, training, experience, etc. It
cannot be transferred by the organization since it is person-specific.
Charismatic power This derives from the sensitivity of the owner. This facilitates
association with others.
In research organizations, as in other organizations, power plays a significant role. It
influences the organization's strategies, recruitment of competent scientists, behavioral
control system and changes in the organizational structure.


COMMUNICATION IN THE ORGANIZATION
Communication is a basic element in organizational structure and functioning. It is the key
mechanism for achieving integration and coordination of the activities of specialized units at
different levels in the organization.
The communication process consists of seven steps (Shannon and Weaver, 1949):
message, encoding, transmitting, receiving, decoding, understanding and feedback.
Organizational communication can be horizontal, upward, and downward:
Horizontal (lateral) communication aims at linking related tasks, work units and divisions
in the organization. The importance of horizontal communication increases with task







36 Module 3 Session 1 Organizational theories


specialization and diversity in organizational structure. The need for lateral or
horizontal communication was first stressed by Fayol (1949), when he suggested a
'gang plank' between similar hierarchical positions.
Downward communication provides information from higher levels to lower levels.
Being superior-subordinate communication, it follows the chain of command through
the line of authority. Downward communication can be of four types (Katz and Kahn,
1966):
communication designed to provide job rationale to produce understanding of the
task and its relation to other organizational tasks;
communication about organizational procedures and practices;
feedback to the subordinate about his or her performance; and
communication to foster inculcation of organizational goals.
Upward communication serves as a control system for the organization.
In an agricultural research organization, a suitable blending of lateral, downward and upward
communication is required to effectively coordinate and integrate activities of individual sub-
systems. The effectiveness of research results greatly depends upon proper communication
links among scientists, between scientists and agricultural extension workers, and between
extension workers and farmers.
In an agricultural research organization, there are several specialized sub-systems which
need to be integrated through horizontal communication. Downward communication
facilitates transmission of research results to actual users. Upward communication enables
flow of information from lowers level to the top level:
farmers = extension workers =* scientists => research manager = DG and policy-makers


Organizational decision making
Decision making is choosing among alternatives. It starts with goal setting in the
organization, and entails searching for alternatives, analysing alternatives and choosing
criteria. Decisions may pertain to
broad policies or plans for the organization,
programmes and projects to achieve goals, or
operations of programmes and management systems.
The process of decision making involves nine steps (Hicks and Gullet, 1975; Anderson 1988):
(i) Setting organizational goals.
(ii) Establishing performance criteria.
(iii) Classifying and defining the problem.
(iv) Developing criteria for a successful solution.
(v) Generating alternatives.
(vi) Comparing alternatives to criteria.
(vii) Choosing an alternative.








Training manual for institute management 37


(viii) Implementing the decision.
(ix) Monitoring the decision and getting feedback.


Models of decision making
There are five major models for decision making in an organization (Gortner, Mahler and
Nicholson, 1987). They are:
The economic or rational choice model, as used in bureaucratic organizations. It is based
on rational choice among well reasoned and logical alternatives.
Incremental bargaining, commonly used in resolving conflicts through negotiation.
Simon's bounded rationality model, which is used as an aggregative model in
administrative practices. This model is suitable as a consultant-assisted method for
policy making.
Peters and Waterman's well managed model (also called the garbage can or non-decision
making model) aims at formulating a descriptive model of choice which focuses on the
expressive character of decision making in the organization. It does not consider
rationality and incrementation. This method is based on an empirical perception of
how successful organizations are being run.
Quantitative techniques of decision making. Decisions have to be made under varying
conditions of certainty or uncertainty, with different degrees of risk (Luthans, 1985).
Certainty decisions are largely made by managers at lower levels under known conditions
with known outcomes. For such decisions, nearly complete information is available.
Quantitative techniques are not usually required to make certainty decisions. However,
calculus and a few mathematical programming techniques can be useful.
Risk decisions are more difficult to make than certainty decisions because of limited
information and the possibility of several outcomes for each alternative. Most risk decisions
are taken at higher levels. For risk decisions, probability techniques (objective and subjective
probability) are widely used.
Decisions under uncertainty are the most intricate. For such decisions, probability
techniques are of limited help. However, minimax analysis and Bayes's procedure can be
used in refining the decision making process under conditions of uncertainty. Minimax
analysis attempts to calculate the worst outcome that can occur for each alternative, whereas
Bayes's procedure is based on the concept of expected value and assumes that each possible
outcome has an equal chance of occurring.








Module 3 Session 1 Organizational theories


REFERENCES


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Anderson, C.R. 1988. Management: Skills, Functions and Organization Performance.
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Bakke, W.E. 1959. Concept of social organization, pp. 16-75, in: Haire, M. (ed),
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Barkdull, C.W. 1963. Span of Control: A method of evaluation. Michigan Business
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Bernard, C. 1938 The Functions of the Executive. Cambridge, MA: Harvard University
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Burns, T.G., & Stalker, G.M. 1961. The Management of Innovation. London:
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Drucker, P.F. 1954. The Practice of Management. New York, NY: Harper.
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Gortner, H.F., Mahler, J., & Nicholson, J.B. 1987. Organization Theory. Reading,
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Hicks, G.H., & Gullet, C.R. 1975. Organizations: Theory and Behaviour. New York,
NY: McGraw-Hill. See pages 245-259.
Huse, E.F., & Bowditch, J.L. 1973. Behaviour in Organizations. The Philippines:
Addison-Wesley. See pages 27-44.
Katz, D., & Kahn, R. 1978. The Social Psychology of Organizations. New York, NY:
John Wiley.
Latham, G.P. et. al., 1981. Goal setting and task performance: 1969-80. Psychological
Bulletin, July: 125-152.








Training manual for institute management 39




Lawrence, P.R., & Lorsch, J.W. 1967. Differentiation and integration in complex
organizations. Administrative Science Quarterly, June: 1-47.
Locke, E.A. 1968. Toward a theory of task motivation and incentives. Organizational
Behaviour and Human Performance, May: 157-89.
Luthans, F. 1985. Organizational Behaviour. Singapore: McGraw-Hill. See pages
257-262 and 599-610.
Milgram, S. 1974. Obedience to Authority. New York, NY: Harper & Row.
Pasmore, W.A. 1988. Designing Effective Organizations, New York, NY: John Wiley.
See pages 87-109.
Roethlisberger, F.J., & Dickson, J.W. 1943. Management and the Worker. Cambridge,
MA: Harvard University Press.
Selznick, P. 1949. TVA and the Grass Roots. Berkeley, CA: University of California
Press.
Shannon, C.E., & Weaver, W. 1949. The Mathematical Theory of Communication.
Urbana, IL: University of Illinois Press.
Sherwin, D.S. 1976. Management of objectives. Harvard Business Review,
May-June: 149-160.
Taylor, F.W. 1947. Principles of Scientific Management. New York, NY: Harper.
Tosi, H.L., Rizzo, J.R., & Carroll, S. 1986. Managing Organizational Behaviour.
New York, NY: Pitman.
Von Bertalanffy, L. 1951. General systems theory: a new approach to the unit of
science. Human Biology, December.
Weber, M. 1947. The Theory of Social and Economic Organization. Translated by
Talcott Parsons. New York, NY: Free Press.
Woodward, J. 1965. Industrial Organization. Oxford: Oxford University Press.










Training manual for institute management 41


DATE


TIME


Plenary participatory lecture


end of this session, participants should be able to understand and appreciate:
The concept of an organization.
Principles of organizational structuring.
Traditional and modern types of organizational structure.
Considerations in choosing an organizational structure.


Module 3 Session 2


Structure of an organization


FORMAT


TRAINER


OBJECTIVES


At the
1.
2.
3.
4.







Module 3 Session 2 Structure of an organization


INSTRUCTIONAL MATERIALS

Exhibit 1 The concept of an organization
Exhibit 2 Features of an organization
Exhibit 3 Structure of an organization
Exhibit 4 Considerations in designing organizational structure
Exhibit 5 Principles of organizational structure
Exhibit 6 Rationale for assembling institution units
Exhibit 7 Types of organizational structure
Exhibit 8 Line-discipline organization
Exhibit 9 Line-commodities and production areas
Exhibit 10 Rubber Research Institute of Malaysia
Exhibit 11 Matrix organization
Exhibit 12 Where matrix is best
Exhibit 13 Requirements for a matrix organization
Exhibit 14 Responsibilities and interest of matrix research organization
Exhibit 15 Questions concerning the management of a matrix research organization
Exhibit 16 Modified matrix organization
Exhibit 17 An integrated national research system (Chart 1)
Exhibit 18 An integrated national research system (Chart 2) (administration and
support services)
Exhibit 19 Executive and other committees




REQUIRED READING

Reading note: Structure of an organization.




BACKGROUND READING

None.




SPECIAL EQUIPMENT AND AIDS
None.







Training manual for institute management 43


STRUCTURE OF AN ORGANIZATION


Initiate discussion by asking participants what is meant by an organization. Leavitt defined
an organization as a particular pattern of structure, people, task and techniques. Show
EXHIBIT 1 and discuss various definitions of an organization. Observe that there are common
features in all these definitions (EXHIBIT 2).
The structure of an organization is the manner in which various sub-units are arranged
and inter-related. Show EXHIBIT 3 and discuss the importance of structure in providing
guidelines on hierarchy, authority of structure and relationships, linkage between different
functions and coordination with environment. Structure is composed of three components:
complexity, formalization and centralization. Discuss each of these components. Complexity
is the degree to which activities within the organization are differentiated. Such
differentiations may be horizontal, vertical or spatial
What are the important considerations in designing an organization? Add your own
observations to the responses of participants. As EXHIBIT 4 shows, in designing an
organization due consideration has to be given to ensure clarity, understanding,
de-centralization, stability and adaptability.
Now discuss the theoretical basis for organizational structuring. The basic principles are
specialization, coordination, de-centralization and centralization, and line and staff
relationships. Show EXHIBIT 5 and discuss each of these.
Specialization is division of work into components or units in which people specialize.
It can be vertical (kinds of work at different levels in the organization) or horizontal (division
into departments). Specialization facilitates application of special knowledge for achievement
of goals. This increases the efficiency of the organization. Disadvantages of specialization
would include adverse effects on fundamental work attitudes, relationships and
communication
Coordination is integration of activities of specialized units towards the common
objective. This involves placement of different units in the organization together or
separately and deciding on patterns of relationship and communication. Coordination is
achieved through hierarchy of authority. This involves important principles of organization.
Unity of command is being responsible to and receiving orders from only one superior. The







44 Module 3 Session 2 Structure of an organization


scalar principle ensures a chain of command in a straight line from top to bottom. Since this
is not always desirable or possible, employees could also relate with each other on a 'gang
plank.' The responsibility and authority principle establishes the need for authority along
with responsibility for accomplishing tasks. Span of control refers to the number of
specialized units of persons under one management. Discuss the situational factors which
affect the span of control. Departmentalization is the process of grouping different types of
functions and activities of the organization. Departmentalization may be functional, by
product, or by users, territory, process, equipment, etc.
Another important principle of organizational structuring is whether decision making is
delegated to lower levels (de-centralized) or concentrated at the top (centralized). Observe
that organizations have different blends of centralization and de-centralization.
Line authority refers to the superior-subordinate relationship through the hierarchy of
authority. Line employees are directly responsible for achieving organizational goals. Staff
employees aid and support line employees in their work. Thus, they have different functions
and goals, which could lead to conflicts, but they should be avoidable. Ask participants
about conflict between line and staff in their organizations. Issues in conflict resolution will
be discussed in another module.
Ask participants whether the structure of an organization should remain stable throughout
or change in response to environmental changes. Obviously, the organization has to respond
to changes in the environment as they affect its working.
One of the principles of management discussed during the previous session was
'departmentalization.' This principle is concerned with sectioning an institute into
administrative units to enhance the probability of the institute achieving its goals by
implementing its plans within the limits of its capabilities. There are two rationales used for
assembling, or sectioning, institutional units. These are concerned with (1) the grouping of
the institute's staff into administrative units, and (2) the flow of authority and responsibility
within an institute. Show EXHIBIT 6. Each of these rationales is to be discussed in
conjunction with subsequent exhibits.
Now discuss different types of organizational structure. They could be classical or
modern (EXHIBIT 7). The classical organizational structure includes simple centralized
design, bureaucratic organization and divisionalized organization. The simple centralized
design is suited for smaller organizations, where power, decision making authority and
responsibility for goal setting are vested in one or two persons. The bureaucratic structure
is suited where standard methods and procedures are employed for ensuring work
performance. The divisionalized organization refers to a multiproduct or service design.
Show EXHIBIT 8. One of the first things that one notes about this exhibit is that it has
been departmentalized by discipline. This is a comfortable grouping for scientists. It is the
way universities are departmentalized and most of the early research institutes used a similar
approach.
EXHIBIT 8 also demonstrates a line organization in which the line of authority flows in
an unbroken chain from the chief executive to the lowest organizational level, with each
subordinate having one person to report to. In the previous session, when we were
discussing management principles, this was called the scalar principle.







Training manual for institute management 45


Another way of departmentalizing an institute is by commodity and production areas.
Show EXHIBIT 9 and discuss. Ask participants if they have examples from their institutes of
departmentalization by discipline, as in EXHIBIT 8, or by commodity, as shown in EXHIBIT 9.
EXHIBIT 10 provides an example of an institute that has been departmentalized by several
of the rationales that were shown in EXHIBIT 6. Briefly show EXHIBIT 6 again. Then go
back to EXHIBIT 10 and ask the participants to group the Rubber Research Institute
departments, divisions and groups under the rationales of EXHIBIT 1.
The departments can be grouped thus:


The divisions and groups can be grouped thus:


COMMODITIES AND
DISCIPLINARY FUNCTIONAL
PRODUCTION AREAS

Plant Protection and Microbiology Plant Science Product Development
Tapping and Exploitation Physiology Soil Management Engineering and Testing
Analytical Chemistry Crop Management Specification and Quality Control
Polymer Physics and Processing Computer Unit Extension and Development
Applied Economics and Statistics Research Stations




In the Rubber Research Institute example, it is not clear exactly where some of the
sections should be placed. Take for example, the Plant Protection and Microbiology groups.
Microbiology clearly is a discipline, but what about plant protection? Does this include
mechanical weed control during early stages of growth? Does it include irrigation practices?
If plant protection includes many disciplinary approaches then it would be better placed under
the commodities and production areas category.
Show EXHIBIT 11. This is a relatively new form of organization that involves two
intersecting chains of command and two approaches to departmentalization. One way of
departmentalization is almost always according to projects or programmes, the other usually
being either disciplinary or functional. This form of management has evolved as clients or
funding organizations have begun to place more emphasis on results i.e., completed
projects which have attained their technical, fiscal and schedule goals.
Exhibit 11 also shows a disciplinary organization which has been overlaid with a project
organization to make a matrix organization. Both project directors and disciplinary
department directors report to the institute director. As shown in the exhibit, Project A
draws 4 staff members from the Plant Physiology Department. The check (/) indicates that
the project manager for Project A was drawn from the Virology Department.


DISCIPLINARY FUNCTIONAL

Biology Extension and Development
Chemistry and Technology Research Support and Services







Module 3 Session 2 Structure of an organization


When Project A is completed or terminated, the staff members will return to their
disciplinary departments. For the duration of the project, however, they will report to and
receive direction from the project manager on project matters. The disciplinary department
directors, however, normally maintain responsibility for personnel and administrative matters,
such as salary reviews and personnel development activities.
Show EXHIBIT 12. Ask the participants for examples of situations where a matrix
structure may be best. Now discuss the benefits of a matrix organization. A number of
comments might be made regarding each of these benefits. For example, 'effective use of
specialists' refers to an ability within an organization to use specialists across divisional lines.
This means that a good chemist, for example, may have opportunities to work on other
projects outside his or her department, and does not have to rely only on projects within his
or her department. The environment is also important, especially when one considers
disciplines to stimulate new research projects and ideas. Equipment and facilities
considerations may be equally important. Not only is there a tendency for there to be more
and better equipment and facilities within a matrix management system, the equipment and
facilities tend to be utilized more, and are therefore more cost effective.
Next discuss the disadvantages of a matrix organization. Matrix management definitely
requires teamwork, communication and certain types of personalities. Functional officers or
divisions are often reluctant to release personnel and other resources to projects in other
divisions. 'Empire building' is a problem in this context. Likewise, specialists feel
comfortable working with their technical peers and colleagues within their own department,
and might feel ill at ease being transferred even temporarily to another division.
Show EXHIBIT 13 and discuss each of the four points. It is useful to discuss at which
level or office in the organization these requirements should be met. Show EXHIBIT 14 and
discuss. The exhibit is self-explanatory, with the possible exception of the term 'efficiency'
under disciplinary or functional management, and 'effectiveness' under project management.
Efficiency in disciplinary or functional management refers to managerial efficiency in
managing financial, equipment and other resources. Effectiveness in project management
refers to the effectiveness of the project in achieving its goals and objectives. Managerial
efficiency, of course, can greatly influence the effectiveness or lack of effectiveness of a
project. It is possible, nonetheless, to have an effective project which was not efficiently
managed. While discussing EXHIBIT 14, it might be useful to refer to EXHIBIT 15
EXHIBIT 16 shows a modified matrix organizational structure. Here, as with the matrix
structure, staff members are assembled from several divisions to carry out a project under
the leadership of a project manager. In the modified matrix case, however, the project
manager reports to his or her department head instead of to the institute director. A modified
matrix structure is also used for complex activities in uncertain environments, as in the case
with the matrix structure. However, when the project tends to be small, it is often more
efficient to use the modified matrix approach. In EXHIBIT 16, the circle around the staff
number for a project from a department indicates that the project manager is located in this
department. For example, the project manager for Project B is in the Genetics Department.
EXHIBITS 17, 18 and 19 show how a national research system could be integrated by
using a matrix organizational approach. EXHIBIT 17 shows how programmes and projects
under the Senior Deputy Director for Commodities, Production Areas and Extension, draw
on the staff and facilities of the disciplinary central and regional research institutes. In such
an arrangement, the Senior Deputy Director focuses on programme productivity. The Deputy






Training manual for institute management


Directors for the Central and Regional Agricultural Research Institutes focus on the technical
quality of the output of their institutes, in support of the national programmes.
In EXHIBIT 17, the circles at an intersection of the matrix indicates staff drawn from an
institute's department to work on a project, the number denoting the number of people drawn
from the department and the check (/) indicating from where the project manager was
drawn. For example, in Project 'B' of the Fields Crops Programme, three people from
Regional Research Institute 2 are conducting this project. Two staff members are from the
Irrigation and Salinity Department and one person, who is also the project manager, is from
the Soil Physics Department. For project matters, the project manager will report to the head
of the Field Crops Programme for the duration of the project. As can be seen from this
figure, some project managers may be drawn from institutes, as in the preceding example,
or they may come from the programme staff, as is the case for Project 'A' under the Animal
Husbandry Programme.
EXHIBIT 18 shows how support services and administration relate to the research
institutes. The Deputy Directors for these two areas are responsible for organizing them for
the national research system and ensuring that quality is maintained. The institute directors
are concerned with the productivity of these services in assisting the institute to carry out its
work. There are different ways by which administrative control and reporting requirements
can be exercised in the organization, as shown in EXHIBIT 14. Ask the participants to make
suggestions.
Communication is very important in an agricultural research organization. A common
way of aiding the communications process is to establish committees to address important
areas for the organization. EXHIBIT 19 shows an Executive Committee, together with
committees for Quality Control, for Productivity, for Support Services and for
Administration. Discuss with the participants the need for these committees, as well as their
suggested composition and meeting schedule. Are other committees needed?










TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 2


EXHIBIT 1


... organization is a particular pattern of structure,
people, tasks and techniques ... "



Source: Leavitt, H.J. 1962. Applied organization and readings. Changes
in industry: structural, technical and human approach. in: Cooper, W.W.,
et al. New Perspectives in Organization Research. New York, NY:
Wiley.







... a system which is composed of a set of sub-
systems ... "


Source: Katz, D., and Kahn, R.L. 1978. The Social Psychology of
Organizations. New York, NY: Wiley


I






TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 2


EXHIBIT 2


FEATURES OF AN ORGANIZATION


Composed of individuals and groups of individuals

Oriented towards achievement of common goals

Differential functions

Intended rational coordination

Continuity through time







TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 2


EXHIBIT 3


STRUCTURE OF AN ORGANIZATION





Definition


... institutional arrangements and mechanisms for
mobilizing human, physical, financial and information
resources at all levels of the system ... "


Utility


Division of work into activities
Linkage between different functions
Hierarchy
Authority structure
Authority relationships
Coordination with the environment


Components


Complexity
Formalization
Centralization


Source: Sachdeva, P.S. 1990. Analytical framework for the organization and structure of NARS.
in: Organization and Structure of NARS: Selected Papers. The Hague: ISNAR.







TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 2


EXHIBIT 4


CONSIDERATIONS IN DESIGNING
ORGANIZATIONAL STRUCTURE


CLARITY


UNDERSTANDING


DE-CENTRALIZATION


STABILITY AND ADAPTABILITY


.i


j







TRAINING MANUAL FOR INSTITUTE MANAGEMENT EX T 5
Module 3 Session 2








PRINCIPLES OF ORGANIZATIONAL
STRUCTURE





Specialization


Horizontal
Vertical


Coordination


Unity of command
Scalar principle
Responsibility and authority principle
Span of control
Departmentalization
functional
product
users
territory
process or equipment


De-centralization and centralization


Line and staff relationships







TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 2


EXHIBIT 6


.1


RATIONALE FOR ASSEMBLING
INSTITUTIONAL UNITS


Grouping of staff


* Disciplinary
* Functional
* Commodity or production area
* Geographical
* Project





Flow of authority


* Line
* Matrix
* Modified matrix





=======!J







TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 2


EXHIBIT 7


Classic organizational structure

Simple centralized design
Bureaucratic organization
Divisionalized organization




Modern organizational design

Project organization
Matrix organization


Adhocracy or Organic organizational structure







TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 2


EXHIBIT 8


LINE-DISCIPLINE ORGANIZATION








TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 2


EXHIBIT 9


LINE-COMMODITIES AND PRODUCTION AREAS
ORGANIZATION












TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 2


HIERARCHICAL STRUCTURE OF THE
RUBBER RESEARCH INSTITUTE OF MALAYSIA


MALAYSIAN RUBBER RESEARCH AND DEVELOPMENT BOARD


RUBBER RESEARCH INSTITUTE BOARD


DIRECTOR


Deputy Director
(Research)


Deputy Director
(Administration)



* Personnel
* Library &
information
* Accounts
* Works


Assistant Director
(Biology)


* Plant science
* Soils & crop
management
* Plant protection
& microbiology
* Tapping &
exploitation
technology


Assistant Director
(Chemistry and
Technology)
* Analytical
chemistry
* Product
development
* Polymer physics
and processing
* Engineering &
testing
* Specification &
quality control


Assistant Director
(Extension and
Development)
* Extension and
Development
Division


Assistant Director
(Research Support
Services)
* Applied
economics &
statistics
* Research
stations
* Computer unit


EXHIBIT 10










TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 2


MATRIX ORGANIZATION


Project


EXHIBIT 11










TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 2


EXHIBIT 1 2


Matrix organizations have been found to be best for
complex activities in uncertain environments




Benefits


Effective use of specialists
Job security for specialists
Friendly environment for specialists
Equipment and facilities: more and better


Disadvantages

Stress
Specialists with several bosses
Project managers requiring several specialists or
shared specialists
Functional managers providing shared specialists
Sacrifice of territorial incentive






TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 2


EXHIBIT 13


REQUIREMENTS FOR A MATRIX
ORGANIZATION


9W' Well-defined charters


W' Communication


VW Planning


B Teamwork


6W Willingness to compromise


V' Good management skills








TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 2


RESPONSIBILITIES AND INTERESTS OF MATRIX RESEARCH
ORGANIZATIONS





TOP MANAGEMENT


Institute purpose and
philosophy
Organizational structure
Strategic planning
Institute policies and
practices

"""I ................


ADMINISTRATIVE
MANAGEMENT



* Personnel
* Contracts and
finance
* Compensation
* Training and
development
* Security and
safety


FUNCTIONAL
MANAGEMENT
(LONG-TERM
GOALS)


* Institute
resources
* Research
* Technical
quality
* Differentiation


PROJECT
MANAGEMENT
(SHORT-TERM
GOALS)


* User needs
* Project planning
and implemen-
tation
* Schedules and
budgets
* Integration
* Effectiveness


EXHIBIT 14






TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 2


EXHIBIT 15


* Which functions should be in the project
which in should remain in the functional
organization?


office and


* What is the project manager's role in performance
evaluation of functional specialists?

* Should the functional specialists be located with
the functional manager or with the project
manager?

* How are the functional managers accountable for
the outputs of their subordinates?

* What is the functional manager's role in goal
setting, progress monitoring and performance
evaluation?

* How can functional managers' and project
managers' pay be linked to performance, meeting
objectives, or both?

* How can functional managers get more exposure to
customers, and how can project managers become
more inclined to fund the development of corporate
resources?

* How can competition among functional organiz-
ations (or between functional and project
organizations) be minimized when these organiz-
ations have similar capabilities and interests?


QUESTIONS CONCERNING THE
MANAGEMENT OF A MATRIX RESEARCH
ORGANIZATION






TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 2


EXHIBIT 16


MODIFIED MATRIX ORGANIZATION







TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 2


EXHIBIT 17


AN INTEGRATED NATIONAL RESEARCH SYSTEM
CHART 1







TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 2


EXHIBIT 18


DIRECTOR
Central Agricultural
Research Organization


AN INTEGRATED NATIONAL RESEARCH SYSTEM
CHART 2








TRAINING MANUAL FOR INSTITUTE MANAGEMENT EXHIBIT 19
Module 3 Session 2



EXECUTIVE AND OTHER COMMITTEES


Director (Chair)
Senior DD (Deputy Chair)


Executive Committee Meets monthly
Director*
Senior DD (Commodities, Production Areas, and Extension)
DD, Central Agricultural Research Institute
DD, Regional Agricultural Research Institutes
DD, Support Services
DD, Administration
Quality Control Committee Meets twice a year
DD, Central Agricultural Research Institute*
DD, Regional Agricultural Research Institutes*
DD, Support Services*
DD, Administration
Head, Regional Research Institute 1 t
Head, Regional Research Institute 2 t, etc..
Productivity Committee Meets quarterly
Senior DD (Commodities, Production Areas, and Extension)*
DD, Central Agricultural Research Institute
DD, Regional Agricultural Research Institutes
DD, Support Services
DD, Administration
Head, Regional Research Institute 1 t
Head, Regional Research Institute 2 t, etc.
Support Services Committee Meets as required
DD, Support Services*
DD, Central Agricultural Research Institute
DD, Regional Agricultural Research Institutes
DD, Administration
Head, Regional Research Institute 1 t
Head, Regional Research Institute 2 t, etc.
Administration Committee Meets as required
DD, Administration*
DD, Central Agricultural Research Institute
DD, Regional Agricultural Research Institutes
DD, Support Services
Head, Regional Research Institute 1 t
Head, Regional Research Institute 2 t, etc.

Key to abbreviations, etc.: DD = Deputy Director. = Committee coordinator. t = Associated member










Training manual for institute management 69


STRUCTURE OF AN ORGANIZATION


The term organization has been defined in several ways. Leavitt (1962) defines it as a
specific configuration of structure, people, task and techniques. Structure describes the form
of departments, hierarchy and committees. It influences the organization's efficiency and
effectiveness. People refers to the skills, attitudes and social interaction of the members of
the organization. Task refers to the goals of the individual and the organization. Techniques
refers to the methodical approach used to perform tasks. Organizational structure thus refers
to the institutional arrangements and mechanisms for mobilizing human, physical, financial
and information resources at all levels of the system (Sachdeva, 1990).
Organization is also defined as a system incorporating a set of sub-systems (Katz and
Kahn, 1978). These sub-systems are related group of activities which are performed to meet
the objectives of the organization
Organization has been viewed differently by numerous theorists. However, all
definitions usually contain five common features:
composed of individuals and groups of individuals;
oriented towards achieving common goals;
differential functions;
intended rational coordination; and
continuity through time.


STRUCTURE
Structure is thus an integral component of the organization. Nystrom and Starbuck (1981)
have defined structure as the arrangement and interrelationship of component parts and
positions in an organization. It provides guidelines on:
division of work into activities;
linkage between different functions;








70 Module 3 Session 2 Structure of an organization


hierarchy;
authority structure;
authority relationships; and
coordination with the environment.
Organizational structure may differ within the same organization according to the particular
requirements.
Structure in an organization has three components (Robbins, 1989):
Complexity, referring to the degree to which activities within the organization are
differentiated. This differentiation has three dimensions:
horizontal differentiation refers to the degree of differentiation between units based
on the orientation of members, the nature of tasks they perform and their education
and training,
vertical differentiation is characterized by the number of hierarchical levels in the
organization, and
spatial differentiation is the degree to which the location of the organization's offices,
facilities and personnel are geographically distributed;
Formalization refers to the extent to which jobs within the organization are specialized.
The degree of formalization can vary widely between and within organizations;
Centralization refers to the degree to which decision making is concentrated at one point
in the organization.


DESIGNING ORGANIZATIONAL STRUCTURES
Some important considerations in designing an effective organizational structure are:
Clarity The structure of the organization should be such that there is no confusion about
people's goals, tasks, style of functioning, reporting relationship and sources of
information.
Understanding The structure of an organization should provide people with a clear
picture of how their work fits into the organization.
De-centralization The design of an organization should compel discussions and decisions
at the lowest possible level.
Stability and adaptability While the organizational structure should be adaptable to
environmental changes, it should remain steady during unfavourable conditions.


PRINCIPLES OF ORGANIZATION STRUCTURE
Modern organizational structures have evolved from several organizational theories, which
have identified certain principles as basic to any organization.








Training manual for institute management 71


Specialization
Specialization facilitates division of work into units for efficient performance. According to
the classical approach, work can be performed much better if it is divided into components
and people are encouraged to specialize by components. Work can be specialized both
horizontally and vertically (Anderson, 1988). Vertical specialization in a research
organization refers to different kinds of work at different levels, such as project leader,
scientist, researcher, field staff, etc. Horizontally, work is divided into departments like
genetics, plant pathology, administration, accounts, etc.
Specialization enables application of specialized knowledge which betters the quality of
work and improves organizational efficiency. At the same time, it can also influence funda-
mental work attitudes, relationships and communication. This may make coordination
difficult and obstruct the functioning of the organization. There are four main causal factors
which could unfavourably affect attitudes and work styles. These are differences in:
goal orientation;
time orientation;
inter-personal orientation; and
the formality of structure (Lawrence and Lorsch, 1967).


Coordination
Coordination refers to integrating the objectives and activities of specialized departments to
realize broad strategic objectives of the organization. It includes two basic decisions
pertaining to:
(i) which units or groups should be placed together; and
(ii) the patterns of relationships, information networks and communication (Anderson,
1988).
In agricultural research institutions, where most of the research is multidisciplinary but
involves specialization, coordination of different activities is important to achieve strategic
objectives. Efficient coordination can also help in resolving conflicts and disputes between
scientists in a research organization.
Hierarchy facilitates vertical coordination of various departments and their activities.
Organizational theorists have over the years developed several principles relating to the
hierarchy of authority for coordinating various activities. Some of the important principles
are discussed below.
Unity of Command Every person in an organization should be responsible to one superior
and receive orders from that person only. Fayol (1949) considered this to be the most
important principle for efficient working and increased productivity in an organization.
The Scalar Principle Decision making authority and the chain of command in an organization
should flow in a straight line from the highest level to the lowest. The principle evolves from
the principle of unity of command. However, this may not always be possible, particularly
in large organizations or in research institutions. Therefore Fayol (1949) felt that members
in such organizations could also communicate directly at the same level of hierarchy, with
prior intimation to their superiors.







72 Module 3 Session 2 Structure of an organization


The Responsibility and Authority Principle For successfully performing certain tasks,
responsibility must be accompanied by proper authority. Those responsible for performance
of tasks should also have the appropriate level of influence on decision making.
Span of Control This refers to the number of specialized activities or individuals supervised
by one person. Deciding the span of control is important for coordinating different types of
activities effectively. According to Barkdull (1963), some of the important situational factors
which affect the span of control of a manager are:
similarity of functions;
proximity of the functions to each other and to the supervisor;
complexity of functions;
direction and control needed by subordinates;
coordination required within a unit and between units;
extent of planning required; and
organizational help available for making decisions.


Departmentalization
Departmentalization is a process of horizontal clustering of different types of functions and
activities on any one level of the hierarchy. It is closely related to the classical bureaucratic
principle of specialization (Luthans, 1986). Departmentalization is conventionally based on
purpose, product, process, function, personal things and place (Gullick and Urwick, 1937).
Functional Departmentalization is the basic form of departmentalization. It refers to the
grouping of activities or jobs involving common functions. In a research organization the
groupings could be research, production, agricultural engineering, extension, rural marketing
and administration.
Product Departmentalization refers to the grouping of jobs and activities that are associated
with a specific product. As organizations increase in size and diversify, functional
departmentalization may not be very effective. The organization has to be further divided
into separate units to limit the span of control of a manager to a manageable level (Luthans,
1986). In an agricultural research institution, functional departments can be further
differentiated by products and purpose or type of research
In contrast to functional departmentalization, product-based departmentalization has the
advantage of:
less conflict between major sub-units;
easier communication between sub-units;
less complex coordination mechanisms;
providing a training ground for top management;
more customer orientation; and
greater concern for long-term issues.
In contrast, functional departmentalization has the strength of:







Training manual for institute management 73


easier communication with sub-units;
application of higher technical knowledge for solving problems;
greater group and professional identification;
less duplication of staff activities;
higher product quality; and
increased organizational efficiency (Filley, 1978).
Departmentalization by Users is grouping of both activities and positions to make them
compatible with the special needs of some specific groups of users.
Departmentalization by Territory or Geography involves grouping of activities and positions
at a given location to take advantage of local participation in decision making. The territorial
units are under the control of a manager who is responsible for operations of the organization
at that location. In agricultural research institutions, regional research stations are set up to
take advantage of specific agro-ecological environments. Such departmentalization usually
offers economic advantage.
Departmentalization by Process or Equipment refers to jobs and activities which require a
specific type of technology, machine or production process.
Other common bases for departmentalization can be time of duty, number of employees,
market, distribution channel or services.


De-centralization and Centralization
De-centralization refers to decision making at lower levels in the hierarchy of authority. In
contrast, decision making in a centralized type of organizational structure is at higher levels.
The degree of centralization and de-centralization depends on the number of levels of
hierarchy, degree of coordination, specialization and span of control. According to Luthens
(1986), centralization and de-centralization could be according to:
geographical or territorial concentration or dispersion of operations;
functions; or
extent of concentration or delegation of decision making powers.
Every organizational structure contains both centralization and de-centralization, but to
varying degrees. The extent of this can be determined by identifying how much of the
decision making is concentrated at the top and how much is delegated to lower levels.
Modern organizational structures show a strong tendency towards de-centralization.


Line and Staff Relationships
Line authority refers to the scalar chain, or to the superior-subordinate linkages, that extend
throughout the hierarchy (Koontz, O'Donnell and Weihrich, 1980). Line employees are
responsible for achieving the basic or strategic objectives of the organization, while staff
plays a supporting role to line employees and provides services. The relationship between
line and staff is crucial in organizational structure, design and efficiency. It is also an
important aid to information processing and coordination.







Module 3 Session 2 Structure of an organization


In an agricultural research organization, scientists and researchers form the line.
Administrative employees are considered staff, and their main function is to support and
provide help to scientists to achieve organizational goals
It is the responsibility of the manager to make proper and effective use of staff through
their supportive functions. The staff may be specialized, general or organizational
(Anderson, 1988). Specialized staff conduct technical work that is beyond the time or
knowledge capacity of top management, such as conducting market research and forecasting.
General staff consists of staff assistants to whom managers assign work. Organization staff
(such as centralized personnel, accounting and public relations staff) provide services to the
organization as a whole. Their role is to integrate different operations across departments.
Line and staff personnel have different functions, goals, cultures and backgrounds.
Consequently, they could frequently face conflict situations. A manager has to use his skills
in resolving such conflicts.


TYPE OF ORGANIZATIONAL STRUCTURE


An important issue in organizational structuring is whether the structure of an organization
should be dynamic and change according to changes in the environment or remain stable in
the face of such changes. Since an organization exists in an external environment, it cannot
remain indifferent to changes in its external milieu. However, the extent of changes would
depend upon the degree of influence the changing environment exerts on the efficient
functioning of the organization and sub-units.
Organizations can have simple to complex structures, depending upon organizational
strategies, strategic decisions within the organization and environmental complexities. The
structure of the organization can be traditional (bureaucratic) or modern (organic), according
to needs.
The traditional organizational structure is mechanistic and characterized by high
complexity, high formalization and centralization. The classical organization structure
designs are simple, centralized, bureaucratic and divisionalized. Modern organizational
designs include project organization, matrix design and adhocracy design.


CLASSICAL ORGANIZATIONAL STRUCTURE
In a simple centralized organizational structure, power, decision making authority and
responsibility for goal setting are vested in one person at the top. This structure is usually
found in small and single-person-owned organizations. The basic requirement of a simple
centralized structure is that it has only one or two functions, and a few people who are
specialists in critical functions. The manager is generally an expert in all related areas of
functions and is responsible for coordination. Thus, the organization has only two
hierarchical levels. However, this structure has to become more complex for growth,
diversification or other reasons.








Training manual for institute management 75


The Bureaucratic Organization
In large organizations and under well defined conditions, organization structure may be
bureaucratic. The essential elements of a bureaucratic organization are:
the use of standard methods and procedures for performing work; and
a high degree of control to ensure standard performance.
Figure 1 illustrates a bureaucratic organizational structure.
Figure 1 Bureaucratic organizational structure

DIRECTOR


EXTENSION
-


RESEARCH
I


ADMIN.


Consumers


Livestock


Accounts


Personnel


Purchase


Agri-processing


Producers


Mintzberg (1981) has
professional bureaucracy.
standardized routine work.


identified two types of bureaucracies. They are standard and
Standard bureaucracy is based on efficient performance of
Professional bureaucracy depends upon efficient performance of


standardized but complex work. Thus, it requires a higher level of specialized skills. The
structure of standard bureaucracy is based on functions, large technical staff and many
mid-level managers. In contrast, professional bureaucracy has few mid-level managers.


The Divisionalized Organization
Divisionalized organizational design refers to a multiproduct or service design that separates
different products or services to facilitate management planning and control. Different
divisions in the organization can further have simple centralized or functional designs,
depending upon their size and activities. This type of organizational design is favoured when
different kinds of products or services require different kinds of management.


Seeds


Pesticides







Module 3 Session 2 Structure of an organization


MODERN ORGANIZATION DESIGNS
Modern approaches to organizational design include project, matrix and adhocracy types.


Project design
Project design is also called the team or task force type. It is used to coordinate across
departments for temporary, specific and complex problems which cannot be handled by a
single department. This design facilitates inputs from different areas. Members from
different departments and functional areas constitute a team, in which every member provides
expertise in their area of specialization. Such a structure generally coexists with the more
traditional functional designs. An illustration of project type of the organizational structure
is given in Figure 2.
Figure 2 A Project-type organization

DIRECTOR


PROJECT A



Specialists 1
Specialists 2
Specialists 3
etc.


Administration


Research Station 1
Research Station 2
Research Station 3
etc.


PROJECT B



Specialists 1
Specialists 2
Specialists 3
etc.


Administration



Research Station 1
Research Station 2
Research Station 3
etc.


Matrix Organization
The matrix design blends two different types of designs, namely project and functional
organizational designs (Kolodny, 1979). Since the project type of organizational design is
not considered stable, the matrix design attempts to provide permanent management structures
by combining project and functional structures. The main advantage of this combination is
that the matrix design balances both technical and project goals and allocates specific
responsibilities to both. Technical goals refer to how well work is done, while project goals
relate to issues such as type of work to be done and its costs. Figure 3 shows a very







Training manual for institute management 77


simplified matrix organization design in which department heads have line authority over
specialists in their departments (vertical structure). Functional specialists are assigned to
given projects (horizontal structure). These assignments are made at the beginning of each
project through collaboration between appropriate functional and project managers.

Figure 3 Matrix organizational structure
... I


Matrix organizations are not without their problems (Davis and Lawrence, 1978):
Responsibility and jurisdiction are not clearly defined in matrix organizations. Bosses are
also not clearly identified. Consequently, matrix organizations could lean towards chaos
and disorder, and even lead to power struggles unless power between line and project
manager is skilfully balanced.
Within the organization, matrix organizations may encourage the formation of cliques
since all decisions are made in a group. This could reinforce group loyalties and create
inter-group conflicts.
Matrix organizations need more human resources, particularly during initial periods.
This means higher overheads and increased expenditure.
Matrix organization forms are usually found at the lower level of the organization.







78 Module 3 Session 2 Structure of an organization


Adhocracy
Adhocratic structures are also called 'free form' or organic organization structures. They
stress managerial styles which do not depend upon formal structures. They are well suited
for complex and non-standard work and rely on informal structures. An adhocratic structure
is flexible, adaptive and organized around special problems to be solved by a group consisting
of experts with diverse professional skills (Robbins, 1989). These experts have decision
making authority and other powers. The adhocratic structure is usually small, with an ill-
defined hierarchy. Such a design is suitable for high technology and high growth
organizations where an arranged and inflexible structure may be a handicap. Figure 4
illustrates an adhocratic type of organizational structure.
Figure 4 Adhocratic organizational structure


CHOOSING THE ORGANIZATIONAL STRUCTURE


Organization design is a continuous process. While a simple design is needed for simple
strategies, complex designs are necessary when organizational strategies involve complex
interactions.
The choice of any type of organizational design should be in consonance with the
organizational requirements, strategy and environment. The simple centralized and
bureaucratic organizational design based on functional departmentation focuses on work and
is thus better suited for getting work done efficiently. The team or project type of
organizational design is appropriate where inputs from several functional areas are required.
The divisional structure is appropriate if performance and results are to be assessed. Matrix
and adhocratic designs focus on coordination and relationship.






Training manual for institute management


REFERENCES


Anderson, C.R. 1988. Management: Skills, Functions and Organization Performance.
USA: Allyn and Bacon.
Barkdull, C.W. 1963. Span of Control: A method of evaluation. Michigan Business
Review, 15(3): .
Cleland, D.L., & King, W.R. 1968. Systems Analysis and Project Management. New
York, NY: McGraw-Hill.
Davis, S.M., & Lawrence, P.R. 1978. Problems of Matrix Organizations. Harvard
Business Review, 56(3):
Fayol, H. 1949. General and Industrial Management. Translated by Constance Storrs.
London: Pitman.
Filley, A.C. 1978. The Complete Manager: What Works When. Champaign, IL:
Research Press.
Gullick, L., & Urwick, L. (eds) 1937. Papers on the Science of Administration. New
York, NY: Institute of Public Administration.
Katz, D., & Kahn, R.L. 1978. The Social Psychology of Organizations. New York,
NY: John Wiley.
Kolodny, H.F. 1979. Evolution to a Matrix Organization. Academy of Management
Review, 4(4): 543-544.
Koontz, M., O'Donnell, C., & Weihrich, H. 1980. Management. (New York, NY:
McGraw-Hill.
Lawrence, P.R., & Lorsch, J.W. 1967. Differentiation and Integration in Complex
Organizations. Administrative Science Quarterly, 12(1): 1-47.
Leavitt, H.J. 1962. Applied organization and readings. Changes in industry: structural
technical and human approach. pp. 55-70, in: Cooper, W.W., Leavitt, H.J., &
Shelly, M.W. (eds) New Perspectives in Organization Research. New York, NY:
John Wiley.
Luthans, F. 1986. Organizational Behaviour. Singapore: McGraw-Hill.
Mintzberg, H. 1981. Organization design: fashion or fit. Harvard Business Review,
Jan-Feb: 103-116.
Nystrom, P.C., & Starbuck, W.H. (eds) 1981. Handbook of Organizational Design
(Oxford: Oxford University Press.
Robbins, S.P. 1989. Organization Behaviour. Concepts, Controversies and Applications.
New Delhi: Prentice-Hall of India.
Sachdeva, P.S. 1990. Analytical framework for the organization and structure of NARS.
in: Organization and Structure of NARS: Selected Papers. The Hague: ISNAR.
Tosi, H.L., Rizzo, J.R., & Carroll, S. 1986. Managing Organizational Behaviour.
New York, NY: Pitman.










Training manual for institute management 81


DATE


TIME


Plenary participatory lecture


end of this session, participants will be better able to understand and appreciate:
The effect on organization structure of changes in the external environment.
Interlocking systems of an organization.
The concept, attributes and process of organizational effectiveness.
Approaches, processes and techniques for OD.


Module 3 Session 3


Organizational design and change


FORMAT


TRAINER


OBJECTIVES


At the
1.
2.
3.
4.







82 Module 3 Session 3 Organizational design and change


INSTRUCT

Exhibit 1
Exhibit 2
Exhibit 3
Exhibit 4
Exhibit 5
Exhibit 6
Exhibit 7


IONAL MATERIALS


Interlocking systems of an organization
Processes towards organizational effectiveness
Attributes of an effective organization
Approaches to OD
Processes of OD
Socio-technical systems approach for organization re-design
Techniques of OD


REQUIRED READING

Reading note: Organizational design and change




BACKGROUND READING

None.


SPECIAL EQUIPMENT AND AIDS

Overhead projector and chalkboard







Training manual for institute management 83


ORGANIZATIONAL DESIGN AND CHANGE


Initiate the discussion by asking participants how the external environment affects the working
of their organizations. Obviously, no organization can exist in isolation from the external
environment, which includes ecology, government policies, trade systems, technological
environment and cultural beliefs. Changes in these could affect specific sub-units in the
organization or may affect the organization as a whole.
Show EXHIBIT 1. Observe that the organization is composed of four interlocking
systems. The first is the technical system which makes up the primary productive axis of the
organization. The second is the social system, which refers to people in the organization and
their activities. The third is the administrative system, referring to administrative policies,
systems and procedures used in operating the organization. The fourth is the strategic
system, which performs the steering function of the organization.
Ask participants to define organizational effectiveness and distinguish it from
organizational efficiency. Effectiveness is the degree to which an organization achieves its
goals. Efficiency relates to use of resources in achieving organizational goals.
Organizational effectiveness is influenced by evaluation, adaptation, graduation and
innovation (EXHIBIT 2).
What are the important attributes of an effective organization? Show EXHIBIT 3 and
discuss each of these. The overall effect is to increase the effectiveness of the organization
by incorporating changes in its structure.
The need for organizational development (OD) arises in the context of changes in
technology, knowledge, product and services, and the social system. This involves changes
in beliefs, attitudes, values and structure.
Now discuss different approaches to OD. Show EXHIBIT 4. Group dynamics is based
on process consultation at small-group level, using group methods, sensitivity training and
related approaches. The behaviour modification school rearranges rewards to reinforce
selected target behaviour in employees. The systems approach considers the four interlocking
components of the organization: the technical system, the social system, the administrative
system and the strategic system. The socio-technical approach considers the environment,


Module 3 Session 3

Session guide







84 Module 3 Session 3 Organizational design and change


technical system and social system as determinants of organizational design, re-design or
development. Finally the environment, which induces changes resulting in socio-technical
arrangements in the organization.
OD involves various interventions to change the structure, processes, behaviour or values
of individuals. This consists of eight elements. Show EXHIBIT 5 and briefly discuss these
elements.
Briefly discuss the socio-technical system approach for organization re-design
(EXHIBIT 6). Observe that while this creates a balance between the organization and its
changing external environment, it is not the most appropriate approach when compared to
traditional designs.
The techniques of OD can be traditional or modern. Show EXHIBIT 7. Traditional
techniques consist of sensitivity training or a group approach, grid training and survey
feedback. Sensitivity training induces sensitivity to group processes. Grid training is an
instrumental approach to laboratory training and helps in group development as well as
learning among group members. Grid training is completed in six stages (EXHIBIT 7). The
survey feedback technique involves a study of the units of analysis or the organization as a
whole. Using a questionnaire, it covers issues in leadership, organizational climate and
satisfaction (EXHIBIT 7). There are four important modern organization development
techniques. The process consultation approach attempts to help diagnose and solve important
problems of organizations by taking into account the processes which take place within a
group or between groups and consultants. The third-party approach is largely used to resolve
inter-personal and inter-group conflicts. Team building aims at improving overall
performance through task orientation. Observe that this will be discussed in detail in a
subsequent session. Transactional analysis is used to analyse group dynamics and inter-
personal communication.







TRAINING MANUAL FOR INSTITUTE MANAGEMENT EIIT 1
Module 3 Session 3















INTERLOCKING SYSTEMS
OF AN ORGANIZATION




TECHNICAL SYSTEM

SOCIAL SYSTEM


ADMINISTRATIVE SYSTEM

STRATEGIC SYSTEM







TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 3


EXHIBIT 2


PROCESSES TOWARDS
ORGANIZATIONAL EFFECTIVENESS


EVALUATION

ADAPTATION

GRADUATION

INNOVATION







TRAINING MANUAL FOR INSTITUTE MANAGEMENT IIT
EXHIBIT 3
Module 3 Session 3








ATTRIBUTES OF AN EFFECTIVE
ORGANIZATION





Change is an ongoing organizational process


Structural designs are temporary

Learning is built into the organization


Lateral relationships become increasingly more
important

Linkages and close relationships are developed with
elements in the external environment


Decision making depends on lateral relationships
and mutually satisfactory arrangements

Management's role changes from control to
leadership

People-management practices are involvement
oriented rather than control oriented







TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 3


EXHIBIT 4


APPROACHES TO
ORGANIZATIONAL DEVELOPMENT




GROUP DYNAMICS

BEHAVIOUR MODIFICATION SCHOOL

SYSTEMS APPROACH

SOCIO-TECHNICAL APPROACH

ENVIRONMENT








TRAINING MANUAL FOR INSTITUTE MANAGEMENT E IIT 5
EXHIBIT 5
Module 3 Session 3












PROCESSES OF
ORGANIZATIONAL DEVELOPMENT





PROCESS ANALYSIS


SKILL BUILDING


DIAGNOSTIC


COACHING OR COUNSELLING


TEAM BUILDING


INTRA-GROUP


TECHNO-STRUCTURAL


SYSTEM BUILDING OR SYSTEM RENEWAL







TRAINING MANUAL FOR INSTITUTE MANAGEMENT
Module 3 Session 3 EXHIBIT 6


SOCIO-TECHNICAL SYSTEMS APPROACH
TO ORGANIZATION RE-DESIGN


* Defining the scope of the system to be re-designed


* Determining the environmental demands


* Creating a vision statement

* Educating organizational members

* Creating the change structure


* Conducting socio-technical analysis


* Formulating re-design proposals


* Implementing recommended changes


* Evaluating changes








TRAINING MANUAL FOR INSTITUTE MANAGEMENT EXHIBIT 7
Module 3 Session 3






TECHNIQUES OF ORGANIZATIONAL
DEVELOPMENT



TRADITIONAL

GRID TRAINING
Laboratory-seminar training
Team development
Inter-group development
Organization goal setting
Goal attainment
Stabilization

SURVEY METHOD
Leadership
Organizational climate
Satisfaction

MODERN

PROCESS CONSULTATION METHOD
Initiate contact
Define the relationship
Select a setting and a method
Gather data and make a diagnosis
Intervene
Reduce involvement and terminate

THIRD PARTY

TEAM BUILDING


TRANSACTIONAL ANALYSIS




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