International Leadership Institute

Individual Assignment for OB and Cross culture Course

Prepared By:
Dawit Asmelash (Sec.B)
ID-ILI/MBA/15/034/19

Submitted to: Kassu Jilcha Sileyew, PhD

August, 2020
Addis Ababa, Ethiopia
1. Define the flowing terms.

a. Organizational structure

Organizational structure is a system used to define a hierarchy within an organization. It

identifies each job, its function and where it reports to within the organization. This
structure is developed to establish how an organization operates and assists an
organization in obtaining its goals to allow for future growth. The structure is illustrated
using an organizational chart.

b. Structure

Structure is a valuable tool in achieving coordination, as it specifies reporting relationships

(who reports to whom), delineates formal communication channels, and describes how
separate actions of individuals are linked together.

c. Organizational design

step-by-step methodology which identifies dysfunctional aspects of work flow,

procedures, structures and systems, realigns them to fit current business realities/goals and
then develops plans to implement the new changes

d. Organizational change

Organizational change refers to the actions in which a company or business alters a major
component of its organization, such as its culture, the underlying technologies or
infrastructure it uses to operate, or its internal processes.

e. Resistance to change

Changing an organization is often essential for a company to remain competitive. Failure

to change may influence the ability of a company to survive. Yet employees do not always
welcome changes in methods. In fact, reactions to organizational change may range from
resistance to compliance to enthusiastic support of the change, with the latter being the
exception rather than the norm.

2. What are the different structural dimensions of organization? In

which dimension your organization fall? Show by example.

 Namely there are five dimensions which includes,

 Formalization (aims to the amount of written documentation within

organization. These visible documentation aimed to illustrate the behavior
and activities of the organization.)

 Specialization (includes how organization separates the jobs between one

and another. By this, the extensiveness of the separation will show the
narrowness of duties performed by employees.)

 Hierarchy of authority (aimed to reflect the reporting process. By this, the

vertical lines of organization can be perceived.)

 Complexity(numbers of department) and

 Centralization (span of authority spread to the employees.

 My Company represented by Hierarchy of authority

3. You know that there are six key elements of organizational designs.
Explain each of the design by example considering your organization
design. Show all of them by diagram.

 Departmentalization

Example: In our company there is Tax department, reporting department, controlling

department…

 Chain of Command
Example: Managers assign tasks, communicate me the expectations and deadlines , and
provide motivation on a one-to-many basis.

When employees encounter obstacles or problems, they report back to the appropriate
manager. When necessary, the manager is then responsible for taking the concern or issue
up the chain of command to the next level, and so forth.

 Span of Control

Example:- Our Finance director lead 4 departments within Finance

 Centralization and Decentralization

Example: - All employees encouraged to give an input on big vision and objectives of the
company. Larger, company-wide decisions are still generally reserved to C-level officers,
but departmental managers enjoy a greater degree of latitude in how their teams operate.

 Work Specialization

Example:- employees at all levels typically are given a description of their duties and the
expectations that come with their positions. Job descriptions are generally formally
adopted in writing.

 Formalization

Example: My Company has element that determines the company’s procedures, rules and
guidelines as adopted by management that is to win in the market & be number one. This
determines company culture aspects, such as how workers at all levels are expected to
dress for work ,whether employees have to sign in and out upon arriving and exiting the
office, and how and when employees can use company computers.
4. What is the difference between traditional and contemporary
organizational designs? In which of the two your organizational design
falls in?

 In a traditional company, the power flows from top to bottom; rank-and-file

workers are viewed like cogs in the organization and must implement decisions for
which they had no input. But a cultural change in the workplace has upended the
tenets of a traditional company and introduced a contemporary organizational
structure that is markedly different. And while many businesses still operate a
traditional company that provides control and stability, the contemporary
organizational design – in which employees are given power and autonomy to
make decisions and implement changes – is becoming more popular.
  Traditional Organizational Structure Elements

If a traditional organizational structure were depicted with a chart, it would look like a
pyramid. At the top of that pyramid are the CEO, president and senior management. In the
middle of the pyramid are middle managers and lower-level managers, and at the broad
base are employees. In this structure, the top level of the chart makes all the major
decisions, which are communicated to mid-level and low-level management. These
managers must then implement the decisions among the rank-and-file workers. Little to no
input is required or solicited from employees, and ultimate authority rests in the hands of
those at the top of the chart.

 Contemporary Organizational Structure Elements

In a contemporary organizational structure, the rigid top-down model of the traditional

structure is removed in favor of teams that work on projects together. Instead of relying on
senior management to drive the work process, the contemporary organizational design is
all about empowering employees to make decisions and implement changes without
needing the approval of supervisors. In this type of structure, employees are given the
requirements, milestones and productivity goals of major projects, and must determine the
most efficient way to meet those goals. This structure eliminates the vertical design of a
traditional company and gives employees ownership of the work they perform.

 My Company fall in Traditional Organizational Structure

5. Why people resist organizational changes? How does your

organization see changes? Provide an example that you faced during
change in where in your life or organization?

 Why People Resist Change

In practice, there are 8 common reasons why people resist change:

(1) Loss of status or job security in the organization

(2) Poorly aligned (non-reinforcing) reward systems

 (3) Surprise and fear of the unknown

(4) Peer pressure.

(5) Climate of mistrust

(6) Organizational politics

(7) Fear of failure

(8) Faulty Implementation Approach (Lack of tact or poor timing)

 My Company sees the change positively because most of the changes comes from
change of technology, Changes in the market condition

 For example, Before my current company I was working in government office & it was
so relaxing work culture but when I joined the private company the working culture
different & strict & this change was very difficult to familiar myself with the work
environment.

6. What are the five steps of changes and responses of an individual

during changes?

The stages of change are:

 Pre contemplation (Not yet acknowledging that there is a problem behavior that
needs to be changed)

 Contemplation (Acknowledging that there is a problem but not yet ready or sure of
wanting to make a change)

 Preparation/Determination (Getting ready to change)

 Action/Willpower (Changing behavior)

 Maintenance (Maintaining the behavior change)

What do you think and cope the change if it suddenly arises in your
organization to you?

I react & cope the change by these below five ways

 Revisit company strategy

 Evaluate initiatives against “risks” and “manageability”

 Challenge your assumptions about your organization

 Ignite a cultural shift from tactical tools to people alignment

 Unleash the power of the “cloud”

7. What are the different forces to changes?

External forces:

 Demographic.

 Social.

 Political.

 Technology.

 Economic.

Internal forces:

 Low performance,

 Low satisfaction,

 Conflict, or

 The introduction of a new mission,

 New leadership.
8. How do you define innovation? What are the factors affect innovation
both positively and negatively?

Innovation is creating new value and/or capturing value in a new way. Value is the key
word, stressing the difference between innovation and invention. The definition is simple,
easy to memorize and also good enough to encompass innovation in all the value chain.

An innovation is an idea that has been transformed into practical reality. For a business,
this is a product, process, or business concept, or combinations that have been activated in
the marketplace and produce new profits and growth for the organization. I differentiate
radical and disruptive innovation from the incremental kind, since the latter can happen if
the company is simply great at what it already does. True innovation is far more than an
extension of what is done normally, and while being different, uses capabilities that exist
in a company or are augmented by strategic alliances. Therefore, something is an
innovation not simply because it is new to that company, but because it is simply new.

 Factors affecting innovation are

 Management Commitment to Innovation. Management commitment is one of the

most important success factors in innovation management

 Strategic orientation.

 Clear responsibilities.

 Innovation culture.

 Change Management.

 Integration of all employees

 Collaboration.

9. What are sources of changes to your organization? Can you give an

example that you faced as a source to change
 Sources of Change in my organization are:

External sources

 political,

 social,

 economic environment,

 government action,

 competition,

 social values and economic variables.

Internal sources of change include

 managerial policies or styles,

 systems and procedures,

 processes,

 methods and

 Employee altitudes.

 For example:-the company implement a new business operating system called

‘Heilite’ and when implementing it, there were a task reclassification from one
person to another. This is because of the process change.