Management Principles Explain the Term Essay

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It is not one that should be undertaken under unethical or false pretenses. If the culture is bad enough to start with that the company feels that a change is necessary then the last thing that they want to do is be unethical about it. This would do nothing but make a bad situation worse.

6. Determine the organizational structure that would best facilitate the implementation of these new practices.

The best organizational structure that ANZ could use to implement their new practices would be that of a line and staff structure. The line-and-staff structure helps to identify a set of guidelines for the people directly involved in completing the organization's work. This type of structure combines the flow of information from the line structure with the staff departments that service, advise, and support them. Line departments are involved in making decisions regarding the operation of the organization, while staff areas provide specialized support. The line-and-staff organizational structure is necessary to provide specialized, functional assistance to all managers, to ensure adequate checks and balances, and to maintain accountability for end results (Organizational Structure, 2010).

A staff department, on the other hand, has employees who advise and assist, making sure the product gets advertised or that the customer service representative's computer is working. Based on the company's general organization, line-and-staff structures generally have a centralized chain of command. The line and staff managers have direct authority over their subordinates, but staff managers have no authority over line managers and their subordinates. Because there are more layers and presumably more guidelines to follow in this type of organization, the decision-making process is slower than in a line organization. The line and staff organizational structure is generally more formal in nature and has many departments (Organizational Structure, 2010). This type of structure would allow them to keep the employees as involved in the day-to-day operations as possible and keep them engaged. When changing the culture it is very important to make sure that employees feel connected and valued. This allows for positive attitudes and high moral.

7. Explain the importance of informal groups in achieving the managerial objective of cultural change.

In addition to formal organizational structures, an organization may also have a hidden side that doesn't show up on its organizational chart. This hidden informal organization is defined by the patterns, behaviors, and interactions that stem from personal rather than official relationships. In the informal organization, the emphasis is on people and their relationships; in the formal organization, the emphasis is on official organizational positions. The leverage, or clout, in the informal organization is informal power that's attached to a specific individual. On the other hand, in the formal organization, formal authority comes directly from the position. An individual retains formal authority only so long as he or she occupies the position. Informal power is personal; authority is organizational (the Informal Organization, 2010).

The informal organization of a firm may be more important than a manager realizes. Although managers may think that the informal organization is nothing more than rumors that are spread among the employees, it is actually a very important tool in maintaining company-wide information flow. Results of studies show that the office grapevine is 75% to 90% accurate and provides managers and staff with better information than formal communications (the Informal Organization, 2010).

Rather than ignore or try to suppress the grapevine, managers should make an attempt to tune in to it. In fact, they should identify the people in the organization who are key to the information flow and feed them information that they can spread to others. Managers should make as big an effort to know who their internal disseminators of information are as they do to find the proper person to send a press release. Managers can make good use of the power of the informal organization and the grapevine (the Informal Organization, 2010).


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"Organizational Culture." 2009, Viewed 27 May 2010,

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Stanleigh, Michael. n.d., "The Challenges and Opportunities for Accelerating Organizational Change - Part 1." Viewed 27 May 2010, <>

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