Structural aspects of organizations

Kalina Grzesiuk

• Dividing an organization into functions and then departments

• Advantages of proper design:• Facilitates effective workflow

• Enhances partnership and synergy

• Enables individual performance

Organizational structure

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

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

Authority and power

• Authority• A right, the legitimacy that goes with the position in

organization

• Power• Individual’s capacity to influence decisions

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

Can seeming authority really influence individual’s behaviour?

• Stanley Milgram’s experiment

• https://www.youtube.com/watch?v=BcvSNg0HZwk

• https://www.youtube.com/watch?v=IzTuz0mNlwU

• https://www.youtube.com/watch?v=CmFCoo-cU3Y

Typical hierarchical structures

• Line• Functional• Line and staff• Divisional

• Organizational chart – visual representation of organizational structure

Management styles – concepts of leadership

• 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

Main theories of leadership

• Trait Approaches to Leadership

• Behavioral Theories of Leadership

• Contingency Theories of Leadership

Trait approaches

Personal Characteristics of Leaders

Physical CharacteristicsEnergyPhysical stamina

Social BackgroundEducationMobility

Intelligence and AbilityJudgment, decisivenessKnowledgeIntelligence, cognitive ability

PersonalitySelf-confidenceHonesty & integrityEnthusiasmDesire to leadIndependence

Work-related CharacteristicsAchievement driveDrive to excelConscientiousness in pursuit of goalsPersistence against obstacles, tenacity

Social CharacteristicsSociability, interpersonal skillsCooperativenessAbility to enlist cooperationTact, diplomacy

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

Robert Blake and Jane Mouton Managerial grid

• Major dimensions of leader behavior

• Task-centered behavior• People-centered behavior

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.

• 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.

Contingency Theoriesof Leadership

Situation

Leadership Style

1. There is no a best way to lead

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

Four Development Levels Match to The Four Corresponding Styles of Leadership

• The Key Characteristic ofeffective leadership:• to assess the situation

correctly

• select and

• apply the appropriate style

• continuously review your choice