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 acteven 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: dcor, 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

Espoused values

Unspoken and unconscious but guide

action
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

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 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

Power is based on the subordinates perceptions of the

leader/manager (Mullins, 1996)

More a
management
trait

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

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

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

Concern
for
people

Country club
Team
management management

Impoverished Authority
management 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
"When one treats people with benevolence, justice and
Peoples potentials are only partially utilised
righteousness,

and reposes confidence in them, the army will be united in

mind

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?