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PSY510 - Organizational Psychology

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  • PSY510 GDB 1 Solution and Discussion

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    a) Explain Vertical, Flat, Virtual and Learning organization. (4*3=12)

    i. Vertical Organization
    Vertical organization is based on strict hierarchical structure where all activities are monitored, controlled and command by higher management or owner. The power in such organizations is transmitted from top to the bottom. All well-defined decisions and commands are made by higher authority and moved step by step from top to bottom and people at the bottom have least or no power and autonomy. Each individual in such organization is supervised and monitor by the person above his/her position. Employees are well aware of their duties and roles while working in organization.
    ii. Flat Organization
    Flat organizational is also known as horizontal organization. This organizational structure has few or no layers of intervening authorities and is based on employee-centred approach. Employees have autonomy to take decision and to share their ideas openly with owners or managers in order to remove barriers between executive and staff. They are well-trained and empowered to bring novelty. Many organizations preferred to choose this structure due to simplified structure. Team work and collaboration between employees is encouraged.
    iii. Virtual Organization
    Virtual organization is based on flexible network where employees interact with each other via telecommunication and do not actually meet in person. Such organizations have no geographical location and independent entities are linked by technology. Members are often join together temporarily to achieve some common goals. The focus is on novelty and high quality. The relationship between members is interdependent and demand exceptional levels of trust.
    iv. Learning Organization
    Learning organization facilitates learning and change in its employees rather than providing them strict directions. Continuous feedback of employees’ performance and abilities is taken to enhance their capacities. This organization is based on ideal learning environment and employees work together to continuously enhance their capacities to meet organizational goals. Managers provide a creative vision to employees to work, learn and adapt to change and to meet organizational challenges.

    b) Also, explain two strengths and two weaknesses of all these four organizational structures. (2*4=8 marks)

    Strengths Weakness Vertical Organization 1. Responsibilities and roles of employees are clearly defined which help in reducing ambiguity. 2. Decision making process is quick and employees are motivated to work hard. 1. Lack of autonomy in the organization hinders the sharing of new ideas and novelty from employees from the bottom. 2. It requires a lot of effort by top authorities to maintain the power; therefore, such organizations cannot work without strong leaders. Flat Organization 1. Employees are free to make decisions and share their novel ideas. 2. It is cost efficient structure as there are few or no layer of managers between executive and employees. 1. Decision making process can be slow and inaccurate without strict managerial supervision. 2. Role confusion and lack of job satisfaction is high in employees. Virtual Organization 1. It is cost-efficient and requires no strict hierarchical structure compared to traditional organization. 2. Employees have high job satisfaction and more job retention when they are able to work from their home. 1. Employees rarely communicate with each other face-to-face and require some policies to increase communication. 2. Any miscommunication and lack of trust between employees can threat the reputation of organization. Virtual Organization 1. It helps in transforming people to survive and excel rapidly. 2. Employees are fully awakened and engaged to strive their potentials. 1. Transforming to learning organization is time consuming as it requires investment of valuable time to detect errors and to take feedback. 2. Other organizational issues often hinder in learning process and organization requires appropriate training to know the steps of change and to solve problems.