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Organizational Structure and Management Style


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Title: Organizational Structure and Management Style

Organizational Structure and Management Style
  • Organization Administration

Organizational Management
  • Basics of
  • Organizations
  • Organizational structure
  • Organizational culture
  • Bureaucracies and the search for alternatives
  • Leadership Management

  • Two or more people working together to achieve
    something (that often cannot be accomplished
  • Shared
  • vision?
  • mission?
  • values?

Organizational structure
  • System of relations, governing activities of
    employees, reliant upon one another to meet
    common goals
  • Embedded in position descriptions
  • Pictured in position relationships shown on
    organizational charts
  • Revealed in distribution of authority and
    communication channels

Organizational structure
  • Since it is based upon relationships, it changes,
    even when it looks fixed
  • Varies from the simple to complex
  • Can be formal or informal
  • May be centralized or decentralized
  • Marked by specialization and coordination

Organizational Culture
  • the system of norms, beliefs and assumptions,
    and values that determine how people in the
    organization acteven when that action may be at
    odds with written policies and formal reporting
  • Edgar H. Schein

Organizational Culture
  • Not a model for management but a theory that
    explains workplace behavior
  • Often operates unconsciously but guides action
    and affects ability to change
  • Exists alongside formal organizational structure,
    can be at odds with it
  • Learned responses of an organization in adapting
    to an external environment and integrating
    internally its experiences

Elements of Organizational Culture
  • Symbols décor, signs, clothing
  • Language use of terminology
  • Standards of behavior meetings
  • Slogans sayings
  • Heroes those who embody the culture
  • Mythology stories that are repeated
  • Ceremonies special events, celebrations

Levels of Organizational Culture
  • Underlying assumptions
  • Unspoken and unconscious but guide action
  • Espoused values
  • Stated in mission, ethical codes, etc.
  • Artifacts
  • Visible evidence of assumptions in behavior,
    rituals, myths, etc.

  • Distinguished by
  • Governing rules often rigid
  • Division of labor
  • Chain of command
  • Specializations

Bureaucratic Structure
  • Pyramidal
  • Top Level Management
  • Middle Level Management
  • Floor Supervisors
  • Floor Workers
  • Research indicates that restructuring usually
    results in the elimination of middle management
  • Horizontal and vertical components

Vertical Structure
  • Hierarchy
  • Provides the conduit for authority to flow,
    traditionally from top down (scalar principle)
  • Delegation entails assignment of authority from
    super-ordinate to subordinate
  • Units may be centralized or decentralized
  • Unity of command means each employee has a

Vertical Structure
  • Span of control refers to number of staff under
    one manager
  • Positions
  • Line relationship Position of authority over
  • super-ordinate
  • l
  • subordinate)
  • Staff relationship Advisory or support
  • lateral -gt position

Power and/or Authority
  • Authority right of supervisor to direct
    subordinates flows from chain of command vested
    in position, not person
  • Power ability to influence the behavior of
    others may derive from management, ability to
    reward, expertise, and/or respect

Horizontal Structure
  • Departments with specialized
  • Functions
  • Territory
  • Product
  • Processes
  • Customers

Structure Coordination
  • Mechanisms
  • Hierarchys elements order, positions, etc.
  • Communication
  • Supervision
  • Standardization of work, products, skills
  • Policies procedures
  • Committees
  • Planning

Tools for Management
  • Structure
  • Organizational design
  • Viewed today as means for competitive edge if the
    design is well matched to needs
  • All the elements of structure
  • For example, position descriptions, distribution
    of authority
  • Use of specialization and coordination, etc.

Bureaucracys shortcomings
  • What are they???

Bureaucracys shortcomings
  • Fails to take environment into account
  • Is less effective during change or turbulence,
    requiring flexibility and action
  • Ignores interpersonal relationships and their
    effects upon the workplace
  • Has undesirable, unintended consequences in
    control mechanisms

Structure as an Organic System
  • Concept of Burns and Stalker
  • Based upon biological model
  • Traits
  • Emphasizes horizontal communication
  • Relies upon knowledge-based authority
  • Encourages broader system view
  • Has broader, flexible position definitions
  • Refers to external, professional standards

Structure as an Organic System
  • Other aspects
  • Promotes greater employee commitment
  • Blurs formal and informal elements of an
  • Mostly works for small groups

Looking for Perspectives on Organization, or
Sense Making
  • Bureaucracy The Model that Stands
  • Organizational Design Approaches
  • Classical or Scientific, parallel and support the
    bureaucratic model
  • Human Relations, modifies it to better respond to
    people in the workplace
  • Systems Theory, modifies it to respond to the
    role of the environment (organizations function
    interdependently like organisms)
  • Participatory Management or shared leadership

Looking for Perspectives on Organization, or
Sense Making
  • New models Ideas come and go but each may
    contribute to the development of theory
  • From the models, new ideas have been incorporated
    into the bureaucratic model and it continues to

Currently Accepted or Popular Methods to Modify
  • Committees
  • Taskforces
  • Retreats
  • Use of consultants
  • Outsourcing
  • Matrix Structure
  • Self-managing work teams
  • Quality circles
  • Re-structuring

  • Will bureaucracy endure as a form?
  • Should bureaucracies persist?
  • Will they evolve?
  • Will they be replaced by revolutionary new
    organizational forms or design?

Leadership and Management styles
  • Think of a manager you worked for and how s/he
    treated subordinates
  • Did s/he build team spirit?
  • Did s/he monitor work closely?
  • Did s/he punish mistakes?
  • Did s/he permit you to share in goal setting and

Leadership Management
  • Think of some differences betweenLeadership Ma

Leadership and power
  • Power is based on the subordinates perceptions
    of the leader/manager (Mullins, 1996)
  • Reward power ability and resources to obtain
    rewards for those who comply, e.g. pay,
    promotion, recognition, privileges
  • Coercive power ability to punish or to bring
    about undesirable outcomes, e.g. withholding pay
    rises promotion, withdrawing friendship, formal
  • Legitimate power the right to exercise power
    because of leaders position in the organisation
  • Referent power subordinates identification with
    the leader because of attractiveness, reputation,
    or charisma
  • Expert power competence, special knowledge or
    expertise in a given area. Expert power is
    normally limited to narrow, well-defined areas or

More a leadership trait
More a management trait
What makes a leader?
  • The qualities or traits approach (Great person)
  • assumes that leaders are born, not made
  • we select leaders, not nurture or train them
  • common in popular thinking, but no evidence has
    been found to support this
  • each persons list of leadership traits is
  • Functional approach
  • Kretch et al (1962) identified 14 leadership
  • Both the official leader and the group member who
    happens to come up with the right function at the
    right time are leaders for that moment
  • The official leader is just a safety net, someone
    who is expected to fill in the leadership
    functions when needed

What makes a leader?
  • Styles of leadership approach
  • Many possibilities
  • Tannenbaum Schmidt (1973) have a continuum
  • some similarity with Theories X and Z discussed
  • Tells leader identifies problem, chooses a
    decision, announces to subordinates, no
  • Sells leader chooses a decision but attempts to
    persuade subordinates to accept it
  • Consults leader identifies problem, listens to
    advice of subordinates, chooses a decision
  • Joins leader defines problem and limits of
    decisions, group take decision with leader as
    just a member
  • Which approach is best depends on forces in the
    leader, the subordinates and the situation

What makes a leader?
  • Employee-centred vs. production-centred approach
  • Blake and Mouton (1964), and Likert (1961), use a
    two dimensional grid

Country clubmanagement
Concern for people
Concern for production
Management Theory X and Theory Y
  • Management styles Douglas McGregor (1960)
    polarised (caricatured?) managers attitudes
  • Theory X
  • Average person has an inherent dislike of work
  • People must be coerced, controlled, directed,
    threatened with punishment
  • Average person prefers to be directed, and wishes
    to avoid responsibility

Theory X and Theory Y
  • McGregor suggested
  • Theory Y
  • Physical and mental effort is as natural as play
    or rest
  • Man will exercise self-direction for objectives
    to which he is committed
  • Commitment to objectives is a function of reward
  • Average person learns to accept and seek
  • Imagination and creativity is widely distributed
  • Peoples potentials are only partially utilised

"When one treats people with benevolence, justice
and righteousness, and reposes confidence in
them, the army will be united in mind and all
will be happy to serve their leaders. Sun Tzu
(circa 400 BC)
Theory Z
  • Theory Z WS Ouchi, 1980s
  • Well managed companies in US and Japan had
    lifetime employment, collective decision making,
    promotion from within, non-specialised career
  • Characterised as a democratic management style

Theory Y Objective setting (Laissez Faire)
Theory X Autocratic
Your style might be anywhere in this continuum
Theory Z Democratic
Final Thoughts...
  • Do you believe leadership can pass around a group
    depending on the function required? What if there
    is an official leader?
  • Think about a manager you have worked for. Was he
    Theory X, Y or Z? How did that make you feel?
  • What factors affect whether you adopt a Theory X,
    Y or Z style of management?
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