Organizational Structure and Employee Motivation
Concept Organization
An organization formed by a series of resources (materials and people) oriented towards previously determined goals.
Formal Organization
An intentional, planned, and defined structure that is identified within the company. Each element has its most convenient place and links.
Informal Organization
A network of personal relationships established not by the formal organization, but spontaneously when people who are habitually associated with each other (friendship, etc.) produce it.
Characteristics of this type of organization:
- Natural appearance of informal relationships
- Informal leaders
- Existence of problems and the need to claim them
Organization Design
A graph or schema that represents the internal organization of the company. The organizational units are represented and the relationships that exist between them are shown.
Points presented:
- Schematizes the company structure, indicating hierarchical relationships
- Highlights the degree of dependence and precise functional character
- Includes units or departments that make it up and the names of those responsible
- Gives a general vision of the company and also detects abnormalities in the organization
Departmentalization
How to divide the company structure. Division of labor into target groups of people, and one person in each department is responsible for the actions and receives orders from superiors.
Advantages:
- Proper structure to decentralize and delegate responsibilities to diversified companies
- Responsibility is located in the business environment closest to its specific needs according to functional specialization
- Clarifies responsibilities, providing accountability
Drawbacks:
- Produces duplication and overhead costs
- May involve excessive rivalry between divisions when assigning resources
- Potential difficulties in coordination between businesses
It is normal for some activities to remain centralized.
Types of Departmentalization:
- Functional
- Geographical
- Products
- Customers
- Processes
- Matrix
- Hierarchical
Taylor’s Scientific Management Technique
Discovered limitations to increased worker productivity due to fear of being fired. Created the school of scientific management of work, whose main idea was the application of scientific methods to the organization of work. “There is always a better method for anything,” claimed Taylor.
- Division and specialization
- Remuneration increases and fatigue decreases
For Taylor, money was an important motivating factor = increased productivity.
Principles of Scientific Management:
- Determining procedures and production methods, leaving nothing to chance
- Work is studied, and each human element is used in this work
- Selecting the most suitable staff
- Getting cooperation and team spirit
- Division of labor between management and employees
- Centralization in formal authority to try to achieve maximum production
Taylor’s Errors:
- Mechanistic consideration of the worker
- Excessive specialization
- Radical separation between management and workers
Fayol: Formal Organization
Aimed to increase productivity through administration. His model is based on:
- Division of work
- Application of an administrative process
- Formulation of technical criteria for the administrative function
He was the first to focus on the organization of administrative labor.
Administrative Principles:
- Unit of control: linear structure, vertical organization, and hierarchy of authority
- Unit of command: identical solutions to similar problems: a single chief and program
Activities in a business are:
- Administrative functions
- Technical functions
- Business functions
- Financial functions
- Accounting functions
- Security functions
Mayo: (School of Human Relations)
Environmental changes, music at work, introduction of breaks – each change increased production. Focused his analysis on the human factor. He noticed that the work atmosphere and collaboration were motivating because people felt considered important. This was the inception of the informal organization.
Characteristics:
- The importance of the human factor
- Money is not the only motivation; in addition to economic objectives, there are other social ones
- Labor relations and informal authority are important
- This resolves conflicts between workers and businesses
- Specialization does not increase maximum productivity
Motivation and Participation of Employees in the Company: Maslow and Herzberg
Concept of Motivation:
The desire to do something that is dependent on the individual’s capabilities and the desire to satisfy a need.
Maslow’s Hierarchy of Needs:
Pyramid:
- Physiological needs
- Safety needs
- Social needs
- Needs for esteem and acceptance
- Self-realization
Motivation comes from self-realization.
Direction and Motivation:
Motivation contributes to enriching the workplace through:
- Delegating authority and responsibility to workers
- Informing workers about what is expected of them
- Recognizing workers’ merits and achievements
- Setting achievable goals
- Involving workers in company decisions
- Facilitating the development and training of workers
- Providing promotion and remuneration that corresponds to merits
- Stimulating creativity
- Variety of tasks
- Task identity
Herzberg’s Two-Factor Theory (Hygiene/Motivation):
Herzberg looked at the factors that cause satisfaction and said that there are two types:
Hygiene or Maintenance Factors:
These are not motivating if you have them, but they cause dissatisfaction if you don’t:
- Company policies
- Job stability
- Personal relationships with the boss and colleagues
- Environmental conditions
- Wages
Motivators:
- Evaluation of achievements
- Goals and participation in business decisions
- Responsibility and personal achievement
- Promotion and advancement within the company
- Recognition of achievements made
- Performing motivating work
Practices Implemented by the Company to Motivate Employees:
- Money
- Quality circles
- Quality of life programs at work
- Flextime and job sharing
- Participatory techniques
MBO:
Used to motivate workers and to involve employees in setting objectives that they themselves have to achieve. It is as decentralized as possible in making business decisions and is self-serving.