Structural aspects of organizations. Kalina Grzesiuk

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1 Structural aspects of organizations Kalina Grzesiuk

2 Organizational structure Dividing an organization into functions and then departments Advantages of proper design: Facilitates effective workflow Enhances partnership and synergy Enables individual performance

3 The elements of structure Specialisation Individuals specialize in doing part of an activity rather than the entire activity Chain of command The management principle that no person should report to more than one boss Span of control The number of subordinates a manager can direct effectively and efficiently Centralization/decentralization A function of how much decision-making authority is pushed down to lower levels of organization Departmentalization Authority/responsibility

4 Departmentalization Grouping into departments can be based upon Functions e.g. HR, accounting, marketing Products Customers e.g. retail, government Geographic northern, southern Poland Process testing, payment

5 Authority and power Authority A right, the legitimacy that goes with the position in organization Power Individual s capacity to influence decisions

6 Sources of authority According to Max Weber there are 3 main sources of authority Charisma Tradition (bloodline) Rational (legal) Often on the list: Acceptance Competence Access to information Relational (social) capital

7 Can seeming authority really influence individual s behaviour? Stanley Milgram s experiment

8 Typical hierarchical structures Line Functional Line and staff Divisional Organizational chart visual representation of organizational structure

9 Management styles concepts of leadership

10 Leadership Social influence process of involving two or more people Leader Follower Potential follower Two dimensions Leader intends to affect behavior of another person Target of influence effort perceives intent as acceptable Target must attribute behavior to a specific person Consider the behavior acceptable

11 Main theories of leadership Trait Approaches to Leadership Behavioral Theories of Leadership Contingency Theories of Leadership

12 Trait approaches

13 Personal Characteristics of Leaders Physical Characteristics Energy Physical stamina Social Background Education Mobility Personality Self-confidence Honesty & integrity Enthusiasm Desire to lead Independence Social Characteristics Sociability, interpersonal skills Cooperativeness Ability to enlist cooperation Tact, diplomacy Intelligence and Ability Judgment, decisiveness Knowledge Intelligence, cognitive ability Work-related Characteristics Achievement drive Drive to excel Conscientiousness in pursuit of goals Persistence against obstacles, tenacity

14 Behavioural theories Kurt Lewin (1939) Identified three leadership styles: Autocratic style: centralized authority, low participation Democratic style: involvement, high participation, feedback Laissez faire style: hands-off management

15 Robert Blake and Jane Mouton Managerial grid Major dimensions of leader behavior Task-centered behavior People-centered behavior

16 Leadership styles Impoverished Management (1, 1): Exercise minimum effort to get work done from subordinates. low concern for employee satisfaction. organisation becomes disorganized. Leaders are ineffective, action - only when preserving job and seniority. Task management (9, 1): more concern for production than for people. efficiency - through organisation of work systems and the elimination of people wherever possible. Increases the output of organisation in short run but high labor turnover is a factor. Middle-of-the-Road (5, 5): balance between goals of company and the needs of people. leader does not push the boundaries of achievement - average performance. Neither employee nor production needs are fully met.

17 Country Club (1, 9): low task and high people orientation. attention to the needs of people. Supported employees - self-motivation. low focus on tasks - hampers production and leads to questionable results. Team Management (9, 9): high people and task focus - based on theory Y of McGregor. Most effective style according to Blake and Mouton. empowerment, commitment, trust, and respect are the key elements in creating a team atmosphere - results in high employee satisfaction and production.

18 Contingency Theories of Leadership 1. There is no a best way to lead Leadership Style Situation 2. The success of the leader is a function of various contingencies in the form of subordinate, task, and/or group variables 3. Using different styles of leadership appropriate to the needs created by different organisational situations Paul Hersey and Ken Blanchard situational leadership model

19 Four Development Levels Match to The Four Corresponding Styles of Leadership

20 The Key Characteristic of effective leadership: to assess the situation correctly select and apply the appropriate style continuously review your choice