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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Two or more people working together
to achieve something (that often cannot
be accomplished alone)
Shared
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vision?
mission?
values?
Organizational structure
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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
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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
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“…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.”
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Edgar H. Schein
Organizational Culture
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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
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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
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Underlying assumptions
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Espoused values
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Unspoken and unconscious but guide
action
Stated in mission, ethical codes, etc.
Artifacts
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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
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Pyramidal
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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
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Hierarchy
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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
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Span of control refers to number of staff
under one manager
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Positions:
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Line relationship: Position of authority over others
super-ordinate
l
subordinate)
Staff relationship: Advisory or support
lateral -> position
Power and/or Authority
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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
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Departments with specialized
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Functions
Territory
Product
Processes
Customers
Structure: Coordination
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Mechanisms
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Hierarchy’s elements: order, positions, etc.
Communication
Supervision
Standardization of work, products, skills
Policies & procedures
Committees
Planning
Tools for Management
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Structure
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Organizational design
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Viewed today as means for competitive edge if
the design is well matched to needs
All the elements of structure
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For example, position descriptions, distribution
of authority
Use of specialization and coordination, etc.
Bureaucracy’s shortcomings
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What are they???
Bureaucracy’s shortcomings
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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
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Concept of Burns and Stalker
Based upon biological model
Traits
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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
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Other aspects:
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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
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Bureaucracy: The Model that Stands
Organizational Design Approaches:
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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
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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
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Committees
Taskforces
Retreats
Use of consultants
Outsourcing
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Matrix Structure
Self-managing work
teams
Quality circles
Re-structuring
Questions:
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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
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Think of some differences between…
Leadership
Management
Leadership and power
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More a
leadership
trait
More a
management
trait
Power is based on the subordinate’s perceptions of the
leader/manager (Mullins, 1996)
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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?
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The qualities or traits approach (“Great person”)
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assumes that leaders are born, not made
we select leaders, not nurture or train them
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common in popular thinking, but no evidence has been found
to support this
each person’s list of leadership traits is different
Functional approach
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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?
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Styles of leadership approach
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Many possibilities
Tannenbaum & Schmidt (1973) have a continuum
some similarity with Theories X and Z discussed later
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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?
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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
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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
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McGregor suggested:
Theory Y
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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
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Theory Z: WS Ouchi, 1980s
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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...
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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?