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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 .

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organizational management
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 alone)
  • Shared
    • vision?
    • mission?
    • values?
organizational structure
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 structure5
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
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 culture7
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
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
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
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
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 structure13
Vertical Structure
  • Span of control refers to number of staff under one manager
    • Positions:
      • Line relationship: Position of authority over others




      • Staff relationship: Advisory or support

lateral -> position

power and or authority
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
Horizontal Structure
  • Departments with specialized
    • Functions
    • Territory
    • Product
    • Processes
    • Customers
structure coordination
Structure: Coordination
  • Mechanisms
    • Hierarchy’s elements: order, positions, etc.
    • Communication
    • Supervision
    • Standardization of work, products, skills
    • Policies & procedures
    • Committees
    • Planning
tools for management
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 shortcomings19
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
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 system21
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
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 making23
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



Use of consultants


Matrix Structure

Self-managing work teams

Quality circles


Currently Accepted or Popular Methods to Modify Bureaucracy
  • 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
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
Leadership & Management
  • Think of some differences between…Leadership Management
leadership and power
Leadership and power
  • 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

More a leadership trait

More a management trait

what makes a leader
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 leader30
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 leader31
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 production

management theory x and theory y
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
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
  • 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


Your style might

be anywhere in

this continuum

Theory Z


final thoughts
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?