Organizational Structure and Management Style

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Organizational Structure and Management Style

• Organization Administration

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Organizational Management

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

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Organizations

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

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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

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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

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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
  relationships.
• Edgar H. Schein

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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

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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

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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.

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Bureaucracies

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

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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
  positions
• Horizontal and vertical components

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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
  supervisor

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Vertical Structure

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

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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

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Horizontal Structure

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

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Structure Coordination

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

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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.

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Bureaucracys shortcomings

• What are they???

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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

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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

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Structure as an Organic System

• Other aspects
• Promotes greater employee commitment
• Blurs formal and informal elements of an
  organization
• Mostly works for small groups

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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

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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
  evolve

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Currently Accepted or Popular Methods to Modify
Bureaucracy

• Committees
• Taskforces
• Retreats
• Use of consultants
• Outsourcing

• Matrix Structure
• Self-managing work teams
• Quality circles
• Re-structuring

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Questions

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

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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
  decision-making?

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Leadership Management

• Think of some differences betweenLeadership Ma
  nagement

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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
  reprimands
• 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
  specialties

More a leadership trait
More a management trait
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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
  different
• Functional approach
• Kretch et al (1962) identified 14 leadership
  functions
• 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

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What makes a leader?

• Styles of leadership approach
• Many possibilities
• Tannenbaum Schmidt (1973) have a continuum
• some similarity with Theories X and Z discussed
  later
• Tells leader identifies problem, chooses a
  decision, announces to subordinates, no
  participation
• 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

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What makes a leader?

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

Country clubmanagement
Teammanagement
Hi
Concern for people
Impoverishedmanagement
Authoritycompliance
Lo
Lo
Hi
Concern for production
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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

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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
  responsibility
• 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)
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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
  paths
• 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
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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?