Organizational Structure and Management Style

Organization & Administration

Organizational Management

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

Organizations

  Two or more people working together to achieve something (that often cannot be accomplished alone) 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 act— even when that action may be at odds with written policies and formal reporting relationships.”  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.

Bureaucracies

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 positions 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 supervisor

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 -> 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  Hierarchy’s 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.

Bureaucracy’s shortcomings

 What are they???

Bureaucracy’s 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 organization 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 evolve

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

Questions:

    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 decision-making?

Leadership & Management

 Think of some differences between…

Leadership Management

Leadership and power

More a leadership trait



More a management trait

Power is based on the subordinate’s 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 leader’s position in the organisation Referent power: subordinate’s 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

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 person’s 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

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

What makes a leader?

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

Hi

Country club management Team management

Concern for people

Impoverished management Authority compliance Lo Lo

Hi 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 responsibility Imagination and creativity is widely distributed People’s 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 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

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?