1.0 INTRODUCTION
In this note an attempt would be made to explain organizational
design as a major aspect of Human Resources, you would be intimated with the steps
in designing organizational structure, relationship, authority and responsibility,
line and staff relationships, organizational design and line and staff
relationships. Personnel Management as a staff function and lastly personnel
department in a matrix organization.
2.0 OBJECTIVES
At the end of this note, you should be able to:
· advance reasons for designing an organizational structure
· enumerate steps in designing organizational structure
· state Line and Staff relationships and Personnel Management
· outline the role of personnel department in an organization
· enumerate qualifications and qualities of a personnel manager.
3.0 MAIN CONTENT
3.1 Designing Organizational Structure Organizations are
economic and social entities in which a number of persons perform multi-farious
tasks in order to attain common goals. Organizations are effective instruments
in that they help individuals accomplish personnel objectives which they cannot
achieve alone. According to Argyus, organizations are usually formed to satisfy
objectives “that can best be met collectively”.
Organization is only a means to an end. It takes certain inputs
from the environment and converts them into specified outputs desired by the society.
Organizations design deals with structure aspects of organizations. It aims at analyzing
role and relationships so that collective efforts can be explicitly organized
to achieve specific ends. The design
process leads to development of an organizational structure consisting of notes
and positions.
There are relationships involving exercise of authority and
exchange of information between these notes and positions. This organization
design may lead to the definition and description of a more or less formal
structure. Organization design is “the process of systematic and logical
grouping of activities, delegation of authority and responsibility and
establishing working relationships that will enable both the company and
employees to realize their mutual objectives.
3.1.1 Steps in Designing Organizational Structure The first step in
organization design is analysis of present and future circumstances and
environmental factors. The next stage deals with detailed planning and
implementation. Organization analysis is the basis for organizational design
and it is the process of defining aims, objectives, activities and structure of
an enterprise. Organization analysis includes an analysis of the following
aspects:
1) External Environment - Economic, political, legal, social, etc.
2) Overall aims and purpose of the enterprise.
3) Objectives, specific aims or targets to be achieved.
4) Activities that includes the assessment of work being done and what
needs to be done if the company is to achieve its objectives.
5) Decisions to be taken across horizontal and vertical
dimensions.
6) Relationships from the new point of communication.
7) Organization structure which includes grouping of activities,
span of management levels.
8) Job structure which includes job design, job analysis, job description
and job specification.
9) Organization climate – Working atmosphere, co-operation, team work,
commitment, communications, creating, conflict resolution, confidence and
trust.
10) Human Resources which includes availability of human resources
marked by skill, knowledge, commitment and aptitude.
11) Management Style – Includes Laissez-Faire, democratic, benevolent
or autocratic.
Every manager is
responsible for a well – knit team so as to facilitate accomplishment, of
department or note goals. Organization structure can be designed on the basis
of departmentalization and relationships. Departmentalization is the process of
dividing work for an organization into various notes or departments.
The important bases of departmentalization are:
(i) Functions
(ii) Product/Service
(iii) Territory
(iv) Relationships
(v) Matrix organizations.
The other important basis of organizational design is
relationship. The responsibility of a Chief Executive in the overall design of
total organizational relationship with a view to developing organizational structure
on the basis of relationships.
3.1.2 Relationships, Authority, Responsibility The process of
organization brings relationships among employees at different levels, methods,
money and machines. An organization as the process of identifying and grouping
the work to be performed, defining and delegating responsibility and authority
and establishing relationship, for the purpose of enabling the people to work
most effectively together in accomplishing objectives. The relationships that
exist in an organization maybe formal or informal.
Formal Organization: - This is a system of well defined jobs each bearing a definite
measure of authority, responsibility and accountability. Here the manger
describes organizational relationships in a written and graphic manner.
Informal Organization :- Informal organizations are known as social groups within an
organization while the informal group is spontaneous the formal organization is
the result of a deliberate and planned effort to pattern activities and
relationships in specified way to facilitate the achievement of goals in a
smooth manner.
Responsibility
- Edwin B. Flippo defines responsibility as one’s obligation to perform
the functions assigned to the best of one’s ability in accordance with
directions received. Responsibility is derived from function which is the
origin for relationship. Hence it is called a functional derivative.
The important principles which could be observed in delegating
responsibility are:
- Absence of overlapping responsibilities
- Functional similarity which facilitates specialization should be
taken into consideration while delegating responsibility.
- Clear identification of responsibility limits. - Avoidance of
gaps in delegation of responsibility. - Unnecessary function or responsibility
which does not contribute to organizational goals should be avoided.
Authority This is the right to give orders and the power to exact obedience.
It is the right to decide what should be done or the right thing to do. Authority
is the power to command or to exact action from others in the process of
discharging the delegated responsibility.
Thus authority is derived from functions. The important principle
of authority is that Authority should equate responsibility. In order words
required amount of authority should be delegated to discharge responsibility.
This principle avoids misuse of authority and at the same time helps in proper discharge
of responsibility.
Accountability This is the requirement of answerability for one’s performance. It
is the opposite phase of responsibility in the sense that responsibility flows downward
while accountability flows from bottom to the top for proper performance. If
one has been delegated with co-equal authority and responsibility he can
logically be held accountable for results.
While authority is delegated from a superior to a subordinate,
accountability is created. Accountability is derived from authority. The
important principle of accountability is single accountability. This
responsibility is functional derivative authority which is derived from
responsibility, and accountability is derived from authority.
3.2 Organization Design and Line and Staff Relationships
Organizations can also be structured on the basis of line and
staff. Line and staff are viewed as relationships but not as departments. Some
functional mangers have line relations with other managers whilst other
managers have staff relations with other managers in the same organization. But
those functional managers having staff relations may have line relations, in
relation to their subordinates.
Thus organization structure is designed on the basis of line and
staff relationship within departmental structure. It is often regarded that the
personnel manager has staff relation with other managers in an organization.
Line and Staff Relationship The relationship which the managers in
an organization deal with one another maybe broadly classified into two
categories: Line and Staff Line and
Staff are often used in a way that is loose and unclear. These operating managers
are frequently substituted for line and auxiliary and service departments are
used for staff. Line and Staff are characteristics by relationships but not by
departments. The important category of relationships is the line relationship.
Line relationship is a type of relationship existing between two managers
due to delegation of authority and responsibility on giving or receiving
instructions or orders. This refers to those positions of an organization which
have responsibility authority and are accountable for accomplishment of primary
objectives. Managers identified as line are not subject to command by staff
position.
In case of any disagreement between Line and Staff. The Line
manager has right to make final operating decisions. Line authority represents
uninterrupted series of authority and responsibility delegating down the
management hierarchy. The staff concept is probably as old as the organization
itself. It is virtually impossible for Line Executives to perform all their
functions and concentrate on all organizational activities. This naturally
compels them to secure advance and help from specialists.
The staff relationships are created thus the relationship between
manager A and manager B is said to be a staff relationship. Staff authority is
advisory, which means that the staff, a supporting note, recommends action or
alternative actions to the Line manager.
Personnel Management as a Line Responsibility
It is unduly felt the “Personnel Management” is a Line manager’s responsibility
but a staff function. The responsibility of Line managers is to attain the
goals of their respective departments by striking a harmonious balance between
material, machines, money and men. Thus the management of the four Ms which
includes the management of personnel in their respective department is the
responsibility of the Line management.
Since management is getting things done through people,
responsibility of managing people rests with the Line managers. Attaining
overall organizational goals is the responsibility of the general manager
through proper management of personnel and with the help of the different departments.
The management of personnel in different departments is the responsibility of
the various functional heads concerned.
First level managers are also responsible for managing men in
their respective sections while achieving their respective sectional goals.
This personnel management is the responsibility of all Line managers. It is in
this perspective that every manager is a personnel manager.
3.2.1 Personnel Management as Staff Function
Since the top management believes that organizational ability
depends on sound management of human resources, it provides specialized assistance
to Line managers through the personnel managers. Thus the personnel managers
are created for the purpose of providing assistance, advice, information to
Line managers in order to relieve them from the burden of management of
personnel and to allow them to concentrate on their technical operations.
Personnel managers perform various functions including;
employment, training, development, wage and salary administration, motivation, grievance
redressal, workers participation in management, collective bargaining,
industrial relation etc. However, responsibility for the management of
personnel still exists with Line managers. The personnel management is a line
management responsibility but a staff functions.
3.2.2 Staff Role in the Personnel Department The personnel
department in relation to other departments and other managers perform the
following roles:
1. Policy Initiation and Formulation - One of the
important functions of the personnel department is the formulations of new personnel
policy, alteration or modification of the existing personnel policies. He
assists, advises and counsels the Managing Director regarding implications in
formulation and modifications of all major or crucial policies.
2. Advice - The major activity of the personnel department is advising
counselling managers operating at various levels regarding problems, issues,
clarification concerning policies or people of their departments. Advice should
be based on thorough thinking analysis, research regarding pros and cons,
implications during and after execution, possible measures to be taken.
3. Service - Personnel department renders all secretarial and executive
services and performs background work in all personnel activities regarding
recruitment, receiving and scrutinizing applications, conducting tests,
interviews, placement, induction, training, compensation management and
management of industrial relations.
4. Monitory and Control - Personnel department monitors performance and controls the line
activities to the extent they are related to personnel issues. It compares the
actual performance of the Line managers with the established personnel
policies, procedures, programmes. It also envisages appropriate corrective action.
It advises the Managing Director to modify the policies basing it on the
experiences in this regard.
3.2.3 Personnel Department in a Matrix Organization In a matrix
organization structure, employees have two superiors, that is they are under
dual authority. One chain of command is functional and the other chain of
command is project team. Hence matrix structure is referred to as a
multi-command system (both vertical and horizontal dimension).
Thus the team of employees of personnel department have two
superiors which is the personnel manager (vertical dimension) and project
manager (horizontal dimension). Both dimensions of structure are permanent and
balanced with power held equally by both functional and a project manager.
3.3 Qualifications and Qualities of Personnel Manager The functions of
personnel management vary from organization to organization both in nature and
degree. So the qualification requirement of a personnel manager differ from
organization to organization, depending on its nature, size, location. However
the qualification and qualities which will be applicable in general can be summarized
as follows:
(1) Personnel Attributes - The personnel manager as in the case of any other manager must
have initiative, resourcefulness, depth of perception maternal in judgement and
analytical ability, freedom from bias would enable the personnel manager to
take an objective view of both the management and workers. He must have the
intellectual integrity. Moreover, the personnel manager should be thorough with
Labor Law. An understanding of human behavior is essential to the personnel
manager. He should be familiar with human needs, wants hopes, desires, values
and aspiration without which adequate motivation is impossible.
(2) Experience and Training - Pervious experience is undoubtedly an
advantage provided the experience was in an appropriate environment and in the
same area. Training in psychological aspects, Labor Legislations and more
specifically in personnel management and general management is an additional
benefit. Experience is an enterprise in some other executive capacity can also
help towards an appreciation of the general management problems and a practical
approach in meeting personnel problems.
(3) Professional Attitudes: - Professional attitude is more necessary
especially in the Nigerian context. The personnel managers’ job, as in the case
of other managers is getting professionalized. He should have patience and
understanding, ability to listen before offering advice. He should have the knowledge
of various disciplines like technology, engineering, management, sociology,
psychology, philosophy, economics, commerce and law. He must be able to couple
social justice with a warm personal interest in people which must be secured by
an uncommon degree of common sense.
Qualification: - Academic qualifications prescribed for the post of personnel
manager vary from industry to industry. However, the qualification prescribed
in general are:
(a) A degree from a recognized University.
(b) Post-Graduate degree in Social Sciences or Sociology,
Industrial Relations and Personnel Management.
4.0 CONCLUSION This note has attempted to define some basic terms or concepts
essential to the understanding the designing of an organizational structure.
There is also an insight to necessary steps in designing organizational structure,
formal and informal organizations. There is also the definition of
responsibility, Authority and Accountability.
The Line and Staff relationship in organizations was also
highlighted. Personnel Management was also seen as a Line responsibility, staff
role in personnel department and the qualities of a personnel manager was highlighted.
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