Organizational Basics - Key Terms PDF

  **Organizational Basics** - **Organisation**: Any group of people cooperating to achieve a common purpose - **Management**: The leading and steering of an organisation - **Strategic Management**: Process of management determining organizational strategy - **SWOT Analysis**: Al...

  **Organizational Basics** - **Organisation**: Any group of people cooperating to achieve a common purpose - **Management**: The leading and steering of an organisation - **Strategic Management**: Process of management determining organizational strategy - **SWOT Analysis**: Also called situational analysis - examines Strengths, Weaknesses, Opportunities, and Threats **Management Levels & Roles** - **Top-level Manager**: Main motivator and initiator of the enterprise, responsible for overall leadership - **Middle Management**: Level below top management, responsible for implementing general policy and providing direct leadership - **First Line Management**: Heads of departments or group managers between operational levels and middle management - **Functional Manager**: Responsible for managing a single main activity (e.g., purchasing, marketing) - **General Manager**: Responsible for all activities within a certain part of organization **Team & Group Types** - **Formal Group**: Has an official place within organizational structure - **Informal Group**: Forms outside organizational structure, based on friendship/interests - **Horizontal Group**: Members from same hierarchical level - **Vertical Group**: Members from different hierarchical levels - **Mixed Group**: Combination of horizontal and vertical group members - **Virtual Team**: Group collaborating across geographical boundaries via technology - **Self-governing Team**: Group responsible for its own activities and decisions **Motivation & Job Design** - **Job Enrichment**: Adding elements of qualitatively higher level to duties - **Job Enlargement**: Adding elements of qualitatively equal level to duties - **Task Rotation**: Employees rotating between different tasks - **Job Crafting**: Proactive way for employees to adjust their job tasks and boundaries - **Financial Incentives**: Include bonuses, profit sharing, and shares-option arrangements **Task Division Concepts** - **Vertical Differentiation**: Process of passing tasks down to lower hierarchical levels - **Internal Differentiation**: Grouping tasks that have common elements - **Internal Specialisation**: Grouping activities based on end result - **Work Structuring**: Conscious consideration of technical, economic, and social aspects of work - **Delegation**: Transfer of tasks, authority, and responsibilities to lower levels **Organizational Structure Terms** - **Span of Control**: Number of subordinates a manager can effectively manage - **Span Breadth**: Number of direct subordinates under supervision - **Depth of Control**: Number of levels influenced by a manager - **Centralization**: Concentration of decision-making power at top levels - **Decentralization**: Distribution of decision-making powers across various levels **Authority & Responsibility** - **Authority**: Right to make decisions necessary to perform a task - **Responsibility**: Moral obligation to perform tasks and duty to report progress - **Task**: Technical content of a function indicating specific actions - **Function**: Combination of related tasks with accompanying responsibilities and authorities **Group Development Stages** - **Forming**: Initial stage where group members meet and understand roles - **Storming**: Conflict stage where members show true colors - **Norming**: Stage focused on finding agreement and compromise - **Performing**: Stage of effective teamwork and goal achievement - **Adjourning**: Final stage where group concludes its work **Management Roles** - **Interpersonal Roles**: Figurehead, leader, liaison officer - **Informational Roles**: Observer, disseminator, spokesperson - **Decision-making Roles**: Entrepreneur, trouble-shooter, resource allocator, negotiator **Business Operations** - **Productivity**: Number of accomplishments in a given time - **Intrapreneur**: Staff member who thinks and acts independently in professional sense - **Business Unit**: Semi-autonomous division focused on specific product/market - **Department Formation**: Regrouping individual positions into larger units             **Organisational Diagram (Organisation Chart)** - **Definition:** A simplified chart showing the division of tasks and hierarchical relationships within an organisation. - Represents the formal organisational structure. - Includes task divisions, job descriptions, manuals, and procedures. - Distinguishes between formal and informal organisation: - **Formal Organisation:** Officially documented structure and processes. - **Informal Organisation:** Unofficial relationships and behaviours that may influence the organisation.     1. **Mechanistic Organisational System:** - **Characteristics:** - **Hierarchical structure.** - **Clear division of tasks with individual focus.** - **Authority and responsibilities are rigidly defined.** - **Centralised decision-making.** - **Formal communication (top-down).** - **Standardised procedures.** - **Effective in stable environments.** 2. **Organic Organisational System:** - **Characteristics:** - **Flat structure with horizontal working units.** - **Team-based task execution.** - **Decentralised decision-making.** - **Open communication (bottom-up and top-down).** - **Flexible and adaptable to change.** - **Effective in dynamic environments.**   **Line Organisation** - **Definition:** Traditional structure with strict hierarchical relationships. - Unity of command: Each employee reports to one manager. - Simple, clear organisational structure. - Quick decision-making but limited cross-department communication. - **Advantages:** - Clear authority, responsibilities, and supervision. - Cost-effective. - **Disadvantages:** - Potential communication bottlenecks. - Limited managerial expertise.   **Line and Staff Organisation** - **Definition:** Combines line organisation with support staff providing expertise. - Support staff advise managers but lack direct authority. - Unity of command is maintained. - **Advantages:** - Increases decision-making expertise and efficiency. - Extends the span of control of line managers. - **Disadvantages:** - Potential disconnect between theory and practice. - Increased overhead costs due to expanding staff departments.   **Functional and Line Staff Organisation** - **Definition:** Specialist support staff have functional authority over certain tasks. - Functional responsibility allows giving instructions to line departments. - Uniformity in policies, guidelines, and procedures. - **Advantages:** - Expertise integrated into processes. - Consistent organisational practices. - **Disadvantages:** - Employees deal with multiple managers, risking confusion. - Potential loss of control over task execution.   **Trends in Organisational Structure** 1. **Agile Organisation:** Flexible and adaptive to changing environments. 2. **Horizontal Organisation:** Reduces hierarchy to improve collaboration and decision-making speed. 3. **Holacracy:** Decentralised structure with distributed authority across teams. 4. **Network Organisation:** Collaborative network of independent entities working together. 5. **Virtual Organisation:** Operates digitally without physical premises.     **Scaled Agile Framework (SAFe)** - **Definition:** A methodology for scaling agile practices across large organisations. - Release Trains: Teams of 50--125 individuals working on Program Increments. - Focus on value chains at the portfolio level. - Regular and predictable delivery schedules.   **VUCA World and Agile Response** - **VUCA World:** The concept of a Volatile, Uncertain, Complex, and Ambiguous environment necessitates organizational flexibility and adaptability. To respond effectively, organizations must develop VUCA competences: - **Vision**: Steering toward a clear future. - **Understanding**: Comprehending the environment and its challenges. - **Clarity**: Simplifying complexity and providing clear insights. - **Agility**: Adapting quickly to changes.   **Classical vs. Agile Organizations** - **Classical Organizations:** Focus on stability and operate with hierarchical, linear processes. Change is slow, following the unfreeze-move-freeze paradigm. - **Agile Organizations:** Emphasize flexibility, experimentation, horizontal collaboration, and continuous process improvement. Decision-making is delegated to teams, allowing quicker responses to changes.   **Agile Principles and Methods** - **Agile Manifesto Values:** 1. Individuals and interactions over processes and tools. 2. Working software over comprehensive documentation. 3. Customer collaboration over contract negotiation. 4. Responding to change over following a plan. - Agile principles prioritize team collaboration, customer involvement, and adaptability over rigid processes.   **Key Agile Project Characteristics** 1. Short, iterative cycles. 2. Collaborative, cross-functional teams. 3. Small, incremental work units. 4. Emphasis on adaptability and early testing. 5. Continuous feedback and adjustment.   **Frameworks and Tools** - **Scrum Framework:** Involves roles (Product Owner, Scrum Master, Development Team), defined events (Sprints, Sprint Planning, Daily Scrum, Sprint Review, Retrospective), and iterative progress toward a deliverable product. - **Kanban Framework:** Focuses on visualizing workflows and limiting tasks in progress, suitable for ongoing activities without fixed timelines. - **Scaled Agile Framework (SAFe):** Adapts Scrum/Kanban principles for large organizations, focusing on cross-team alignment through \"Release Trains\" and program increments.   **Challenges in Transitioning** Adopting agile principles requires a cultural shift within organizations, which can lead to friction and resistance. Management plays a critical role in leading this transformation through clear vision, facilitation, and consistent support. If you\'d like to refine this summary further, focus on specific frameworks, or explore any particular aspect in detail, let me know!   ***Horizontal Organization: Overview*** Horizontal organization emphasizes process-oriented collaboration, contrasting with traditional hierarchical methods. It arose in response to globalization, rapid technological advances, individualization, and the need for sustainability.   **Key Drivers of Change** - **Globalization and Technology:** Accelerated the need for agile, flexible organizational structures. - **Individualization:** Shifted focus to employee well-being and autonomy. - **Economic and Environmental Issues:** Exposed inefficiencies of vertical models, including power centralization, up-scaling, and rigid specialization.   **Paradigm Shift** Bakker and Hardjono describe this change as a fundamental shift in organizational thought: - **Leadership Evolution:** Power becomes influence, with leaders serving as facilitators. - **Cultural Shift:** Encourages trust, autonomy, and collaboration. - **Employee-Centric Focus:** Employees are recognized as empowered, self-asserting individuals.   **Principles of Horizontal Organization (Alkemade, 2012)** 1. **Common Goal:** Employees are motivated by shared objectives. 2. **Initiative-Based Work:** Reduced reliance on central management. 3. **Integrated Roles:** Task management lies with those performing them. 4. **Collaboration Over Hierarchy:** Horizontal communication replaces vertical command. 5. **Accountability:** All members actively contribute, discouraging passivity.   **Advantages of Process Management** a\. **Effectiveness and Efficiency:** Focus on customer-centric results. b. **Transferability:** Streamlined documentation facilitates knowledge sharing. c. **Controllability:** Standards improve self-management and performance consistency. d. **Learning Capacity:** Collaborative improvement processes foster innovation and problem-solving.   **Implementing Horizontal Structures** - **De-verticalization:** Removes hierarchical layers and reallocates responsibility, fostering autonomy but potentially inducing resistance from employees and managers. - **Cultural Change:** Requires clear vision and alignment with employee values to succeed. - **Dynamic Processes:** Focus shifts to client results, enabling multidisciplinary teamwork and adaptive practices.   **Horizontal and Vertical Integration** While horizontal structures enhance adaptability and collaboration, vertical structures still provide clarity for staff roles and functions. A balanced combination of both is often essential for effective organizational management.   This framework highlights how adopting horizontal organization principles transforms traditional workplaces, paving the way for more flexible, inclusive, and sustainable models.     This comprehensive overview of modern organizational structures highlights innovative methods like **Holacracy**, **Network Organizations**, **Cluster Organizations**, and **Virtual Organizations**. Here\'s a summary and analysis of the key concepts and their applications:   **Holacracy** **Definition:** A governance model that distributes decision-making and authority across all employees, promoting self-organization and adaptability. **Key Principles:** 1. **Energizing Roles:** Employees manage specific roles rather than fixed functions, fostering initiative. 2. **Circle Structure:** Roles are organized into interconnected circles that self-regulate while contributing to a larger purpose. 3. **Governance Process:** Decision-making is collaborative and based on the principle of consent (not consensus). 4. **Operational Process:** Tasks and objectives align across roles and circles to achieve efficiency and responsiveness. **Strengths:** - Encourages rapid adaptability to change. - Fosters employee creativity and leadership. - Reduces bureaucratic layers, speeding up decision-making. **Limitations:** - Internally focused, lacking direct client or end-user integration. - Requires disciplined adherence to structured processes, which may feel restrictive.   **Network Organizations** **Definition:** Collaborative networks of independent entities working together to achieve shared goals, often with interdependence. **Advantages:** - Access to broader markets and resources. - Innovation through shared expertise and modular production. - Retains partner autonomy while fostering collaboration. **Key Challenges:** - Requires trust and balance among participants. - Dependency on effective communication and conflict resolution mechanisms.   **Cluster Organizations with Teams** **Definition:** Organizations leveraging team-based structures, often with multidisciplinary teams focusing on specific projects or objectives. **Characteristics:** - Teams dissolve after achieving their goals. - Encourages flexibility and innovation. **Trend:** Management experts predict a shift toward more team-centric organizational designs, emphasizing diverse skill sets and collaboration.   **Virtual Organizations** **Definition:** Organizations leveraging technology to enable remote work and global collaboration, reducing reliance on physical office spaces. **Evolutionary Waves:** 1. **Virtual Freelancers:** Early email-based work offered flexibility but limited organizational ties. 2. **Virtual Entrepreneurial Colleagues:** Flexible, location-independent work within structured organizations. 3. **Virtual Network Colleagues:** Balances individual work and teamwork, supported by shared virtual and physical spaces. **Benefits:** - Cost efficiency and scalability. - Global talent pool access. - Enhanced flexibility for employees and employers. **Challenges:** - Maintaining team cohesion and a sense of belonging. - Balancing individual work with collaborative efforts.   **Comparative Insights:** - **Holacracy** thrives in environments demanding flexibility and creativity but may struggle without client-facing integration. - **Network Organizations** emphasize partnerships and shared goals, suitable for modular industries. - **Cluster Organizations** excel in project-based, team-driven innovation. - **Virtual Organizations** leverage technology to reduce operational overhead while increasing global reach. **Conclusion:** The shift towards these organizational models reflects a response to globalization, technological advances, and the need for flexibility and innovation. Each model suits different operational needs, emphasizing collaboration, adaptability, and efficiency in unique ways.   **Key Terms and Definitions** - **Organisational Processes**:\ Activities directed toward achieving organisational goals, carried out effectively to meet these objectives. - **Business Processes**:\ A set of organised human activities related to producing goods or services. Examples include acquisition, production, administration, marketing, and sales. - **Process Control**:\ The effective management of business processes through planning, coordinating, and adjusting. - **Input and Output**: - **Input**: The production factors required for transformation, including: 1. Labour (people) 2. Natural resources (raw materials, energy) 3. Capital (money, machinery) 4. Information (market research, competition data) - **Output**: The products, services, and other results generated by the transformation process, including quality factors like waste, profit, or public relations. - **Primary Processes**:\ Activities directly contributing to creating a product or service, such as purchasing, producing, and selling. - **Secondary Processes**:\ Activities supporting primary processes, including personnel, finances, and data system management. - **Administrative Processes**:\ Activities directing primary and secondary processes to achieve organisational goals, including: - Strategy selection - Planning - Structuring - Process control - **Business Process Management**:\ Managing business processes to meet targets using structural and cyclical approaches like the **PDCA-cycle** (Plan, Do, Check, Act). - **PDCA-Cycle**:\ A tool for process management involving four stages: - **Plan**: Develop production norms and work standards. - **Do**: Implement the process and measure its execution. - **Check**: Compare performance against benchmarks. - **Act**: Adjust and steer processes to improve outcomes. - **Business Re-engineering**:\ A methodology focusing on rethinking and redesigning business processes to improve flexibility, quality, and service, providing added value to customers. - **Core Business Processes**:\ A set of linked activities adding value to buyers, measured by quality, service, expenses, and cycle time. - **Just-in-Time (JIT)**:\ A production strategy minimizing inventory and delivering raw materials \"just in time\" for manufacturing. - **Total Quality Management (TQM)**:\ A continuous improvement approach ensuring quality in all organisational processes and outputs. - **Process Orientation**:\ A strategy prioritizing the end results of processes and focusing on customer needs. - **Principles of Business Re-engineering**: - The customer is the focal point. - Applicable to all business processes. - Internal process improvement takes precedence but includes suppliers. - Must yield measurable market results. - Implemented in phased steps: define, plan, adapt, and execute.   **Key Terms and Definitions from Section 10.2.5** - **Quality Management**:\ Aspect of management that implements a quality strategy across the organisation to ensure desired quality standards. - **Technological Quality**:\ Quality measured through technical specifications of a product, often using scores to represent measurements. - **Relative Quality**:\ Quality judged from the buyer\'s perspective, considering delivery time, after-sales service, design, and other customer-driven criteria. - **Total Quality Management (TQM)**:\ A system for achieving the desired quality level at minimal expenses, integrating all quality-related activities. Key characteristics: 1. Part of the enterprise's general policy. 2. Covers all phases of the production process (market analysis to after-sales). 3. Adopted by all organisational levels. - **Quality Control Reasons**: 1. Increasing competition. 2. Increasing buyer awareness of quality. 3. Costs of quality (e.g., prevention, error correction, non-quality expenses). 4. Changes in legislation (e.g., liability for inferior products). - **Quality Programmes**:\ Initiatives to improve business processes, focusing on customer satisfaction to align production with customer needs and increase market share. - **ISO Certification**:\ International quality standards established by the International Organisation for Standardisation (ISO). Certification signifies adherence to specific quality requirements. - **ISO Certification Requirements**: 1. Management sets up the quality system and defines objectives. 2. Responsibilities and competencies align with quality principles. 3. Staff training focuses on quality systems and processes. 4. Quality is measured at all production stages. 5. Processes must prevent mistakes and correct recurring issues. - **Quality Manual**:\ A document describing the quality system, used to compare organisational processes against ISO standards. - **Audit**:\ An examination to assess whether all ISO standard requirements have been met, including the documentation and operational execution of quality systems. - **Muri**: - Overloading of machines or individuals beyond their capacity. - **Muda**: - Wastage in processes that don\'t add value to the customer. - Types of wastage: - **Over-processing**: Adding more to a product/service than needed. - **Transporting**: Unnecessary movement of products or employees. - **Waiting**: Delays in production or service due to waiting for inputs from others. - **Correcting**: Reworking a product/service due to initial mistakes. - **Mura**: - Inconsistencies or variations in a process, causing \"stop-and-go\" dynamics or uneven work pace. - **Lean Management Phases (Womack & Jones, 1996)**: - **Specify Customer Value**: Determine what customers truly value and need. - **Analyse Value Streams**: Identify which processes add value and which are waste. - **Streamline Processes**: Eliminate or minimize non-value-adding processes (waste) to ensure smooth product flow. - **Work to Order**: Produce based on customer demand to avoid unnecessary inventory. - **Strive for Perfection**: Continuously improve processes through everyone's involvement, aiming for a learning organization. **7.1 Introduction to Human Resource Management (HRM)** - **External Developments Impacting Organizations**: - Technological advancements, globalization, market changes, and competition are reshaping organizations. - Demographics and social-cultural factors also influence organizational structures and HR needs. - **People-Centric Approach**: - The success of organizations depends on the quality, motivation, and implementation of human resources. - CEOs must prioritize human resources to ensure success, as talent impacts organizational performance. - **Shifting Work Design**: - The workforce is moving from product-focused to client-centered with more agile and flexible working practices. - Technology enables global recruitment and necessitates ongoing skill development. - **HRM and Strategic Management**: - **HRM**: Integrates people's capabilities with strategic management, ensuring alignment between organizational goals and employee development. - **Sustainable HRM**: Draws from corporate social responsibility, focusing on respect, environmental awareness, and continuity in people management. **7.2 Recruitment** - **Recruitment and Selection**: - Organizations select staff based on broad competences rather than specialized functions due to changing roles. - Effective recruitment ensures the right fit for both the organization and applicants, enhancing onboarding. - **Internal vs. External Recruitment**: - Internal recruitment offers career development opportunities for existing employees. - External recruitment involves agencies and specialists to identify suitable candidates. - **Recruiter Competencies**: - Understanding business disciplines, organizational culture, and strategic communication. - Ability to assess candidate skills and fit for the role. - **Selection Process**: - Aligning candidates' profiles with organizational requirements is key. - Contract details such as salary, job description, and work terms are finalized. - **Onboarding**: - The onboarding process is essential to integrate new employees, including compliance, role clarification, cultural fit, and ongoing feedback. - **5 Cs of Onboarding**: Compliance, Clarification, Culture, Connection, and Check back. **7.3 Career Development** - **Organizational Flexibility and Employee Mobility**: - Organizations require employees to be flexible and move between functions due to constant changes. - Career development now focuses on a range of roles rather than vertical progression alone. - **Individual vs. Organizational Career Development**: - **Individual Career Development**: Self-driven activities to further one's career. - **Organizational Career Development**: Activities to support employee growth within the company. - **Modern Career Paths**: - Modern career development emphasizes horizontal roles, personal growth, and opportunities for development. - Traditional career paths (e.g., climbing a pyramid) are evolving. - **HR's Role in Career Development**: - Organizations must establish clear career development policies, reliable assessment systems, and provide support through coaching or training. - Tools for development: Mentoring, career counseling, assessment centers, and self-study programs.   **7.5 Assessment** - **Definition**: Evaluating employee performance over time. - **Purpose**: Determines eligibility for promotions, salary increases, or dismissal. - **Methods**: Includes 360-degree feedback, interviews, and feedback forms. - **Criteria for a good assessment system**: - **Fair**: Substantiated with an option for appeal. - **Uniform**: Consistent criteria, forms, and procedures. - **Diligent**: Ensures accuracy and completeness. - **Assessment Interview**: Clarifies the assessment, provides feedback, and discusses improvement opportunities. - **Performance Review vs. Assessment**: Performance reviews are based on equality, while assessments focus on evaluation and decision-making. **7.7 Offboarding** - **Definition**: The process of an employee leaving an organization. - **Reasons for Leaving**: Retirement, end of contract, illness, conflict, or finding other employment. - **Outplacement**: Support provided to help employees transition to new roles or opportunities. - **Services**: Career counseling, job search support, interview techniques, and negotiation assistance. - **Goal**: Help employees find new employment or career direction. - **Alumni Relations**: Maintaining positive relationships with former employees, which can benefit the organization by re-engaging them in future opportunities (e.g., "boomerangs"). **7.8 Talent Management** - **Definition**: A strategic approach to attracting, developing, and retaining talented employees. - **Key Focus Areas**: Identifying high-potential employees, recruitment, career development, and retention. - **Talent Pools**: Groups of employees with specific skill sets for targeted development. - **High-Performing Employees**: People who demonstrate exceptional ability in complex roles and have a large impact on business results. - **Talent Management Approach**: Can be inclusive (all employees) or selective (specific talent groups). - **Performance vs. Potential**: Employees with high potential may not always perform at their best due to external factors. **7.9 Agile Human Resource Management** - **Definition**: Applying agile principles to HRM to increase flexibility and responsiveness. - **Key Features**: - **Frequent Feedback**: Moving away from traditional yearly assessments to continuous feedback. - **Coaching**: Investing in developing managers to provide ongoing support to teams and individuals. - **Team-Oriented**: Shifting focus from individual performance to team dynamics and collaboration. - **Rewards**: Providing immediate recognition and rewards for desired behaviors rather than annual salary increases. - **Recruitment & Selection**: Streamlined and flexible hiring processes to quickly meet organizational needs. - **Training & Development**: Focus on skill development and career progression based on data analysis and job requirements. These key terms highlight the modern evolution of HR practices towards more flexible, dynamic, and employee-focused approaches that cater to the changing business environment.   **9.5.1 Managers and Power** - **Leadership and Power**: Leadership aims to direct an organization towards its goals using power to influence employee behavior. - **Sources of Power** (French and Raven): 1. **Reward Power**: Influencing behavior through rewards. 2. **Coerced Power**: Influencing behavior through punishment. 3. **Legitimate Power**: Power accepted due to position or role. 4. **Expert Power**: Power based on specific knowledge or expertise. 5. **Referent Power**: Power derived from admiration or charisma. - **Position-Related Power**: 1. **Physical Means**: Resources like office design. 2. **Economic Means**: Financial resources. 3. **Informational Means**: Access or denial of information. - **Person-Related Power**: 1. **Knowledge or Expertise**: Based on the manager\'s skill. 2. **Relational Means**: Based on how the manager handles employees. - **Models of Power**: 1. **Harmony Model**: Assumes mutual alignment of interests, requiring less power. 2. **Faction Model**: Assumes conflicting interests, requiring more power to manage. - **Power Relationships**: 1. **Equal vs. Equal**: Balanced power with potential for competition. 2. **High vs. Low**: Hierarchical, with a risk of resistance and autonomy struggles. 3. **High vs. Middle vs. Low**: Middle management struggles with conflicting loyalties. **9.5.2 Leadership** - **Qualities of Leadership**: Leadership requires specialized qualities, both innate and learned. - **Leadership is Influenced by Experience**: A manager's ability to lead depends on life experiences and their relationship with employees. - **Dimensions of Leadership (Meyer & Meijers)**: 1. **Leadership and Self**: Relating to the environment and challenges. 2. **Interpersonal Leadership**: One-on-one influence. 3. **Organizational Leadership**: Influencing groups for collaboration. 4. **Strategic Leadership**: Guiding groups to success. 5. **Leadership and Mission**: Guiding a group to embrace a shared purpose. **9.5.3 Leadership Styles** - **Leadership Style**: Influenced by methods and attitudes towards leadership. - **Classifying Leadership Styles**: 1. **Authoritarian Leadership**: Leader makes decisions alone with strict hierarchy. 2. **Democratic Leadership**: Group involvement in decision-making, promoting participation. 3. **Participatory Leadership**: A balance between authoritarian and democratic styles, with consultation before final decisions. - **X and Y Theory (Douglas McGregor)**: 1. **X Theory**: Assumes employees are lazy, dislike work, and need to be controlled. 2. **Y Theory**: Assumes employees are motivated, creative, and want responsibility. 3. **X Theory** results in authoritarian leadership; **Y Theory** encourages participatory leadership. - **Effective Leadership Styles**: 1. **Authoritarian**: Effective in the short term, especially in crises. 2. **Democratic & Participatory**: Promote motivation, independence, and better teamwork. These key points capture the essence of leadership, power, and styles within organizational settings, providing an overview of how managers can influence and guide employees.     **8.1 Introduction** - **Organisation**: Group of people cooperating to achieve a common purpose. - **Cooperation**: Essential for an organisation\'s survival at all levels (strategic, tactical, operational). - **Human effort**: Crucial for achieving organisational goals. - **Motivation**: What drives individuals to perform certain actions. - **Individual and group behaviour**: Focus on understanding and influencing both. **8.2 People in Organisations** - **Individual perspective**: Motivation, personality, and attitude. - **Group perspective**: Group behaviour, structure, types of groups, and cooperation. - **Topics covered**: - Motivation - Emotional intelligence - Overloading, stress, stress prevention, and burnout - Intuition and creativity - Core qualities - **Group behaviour**: How people work together in teams and manage conflict. - **Team management**: Characteristics of successful teams. - **Organisational conflict**: Addressing conflicts within groups. **8.3 Motivation** - **Motivation**: The inner readiness to perform certain actions. - **Job intrinsic motivation**: Motivation deriving from the work itself (e.g., responsibility, skill expansion, performance). - **Job extrinsic motivation**: Motivation from external factors (e.g., rewards, bonuses, status). - **Theories of motivation**: - Maslow's Hierarchy of Needs - Elton Mayo's Human Relations Movement - Frederick Herzberg's Revisionism - Douglas McGregor's Theory X and Y **8.3.1 Alderfer's Theory** - **ERG Theory**: Alderfer\'s simplified version of Maslow's needs hierarchy, consisting of: - **Existential needs**: Material security (similar to Maslow's physiological and security needs). - **Relational needs**: Relationships and social acceptance (Maslow's social needs). - **Growth needs**: Personal growth and self-fulfillment (Maslow's self-actualisation). - **Frustration-regression hypothesis**: If higher-level needs are frustrated, lower-level needs become more significant. - **Non-hierarchical needs**: Needs are not in a fixed order, and multiple needs can be active at once.     **12.2 Typologies of Organisational Culture** - Various approaches or typologies to describe aspects of organisational culture. - **Approaches discussed**: 1. Group process and organisation culture approach 2. Harrison and Handy's typology 3. Sanders and Neijen's typology 4. Typology according to professional culture 5. Schein's three-layer model 6. Kets de Vries and Miller's typology 7. Quinn and Rohrbaugh's typology **12.2.1 Group Process and Organisational Culture Approach** - Focuses on the behaviour of individual group members within organisational groups. - Six aspects to describe group processes: 1. **Affectivity**: Professional or emotional connections between members. 2. **Causality**: How people or systems cause problems. 3. **Hierarchy**: Behaviour regarding position, power, and responsibility. 4. **Change**: Group response to environmental threats or opportunities. 5. **Collaboration**: Attitude towards cooperation---'all for one' or individualistic. 6. **Orientation with respect to groups with other interests**: Attitudes towards other groups in the organisation. - Group culture influences individual behaviour, and changing group processes can lead to changes in individual behaviours (e.g., promoting openness to change). **12.2.2 Harrison and Handy's Typology** - **Dimensions**: 1. **Degree of cooperation**: How much collaboration occurs among employees. 2. **Distribution of power**: How decision-making is distributed (centralised or decentralised). - **Four cultural types**: 1. **Role culture**: Focus on rules and procedures for stability. Represented by **Apollo** (god of ordainment and law). Most similar to a **machine organisation** (Mintzberg). 2. **Power culture**: Centralised around a top figure. Represented by **Zeus** (god of power). Similar to an **entrepreneurial organisation** (Mintzberg). 3. **Person culture**: Focus on individuals, with minimal management. Represented by **Dionysus** (god of individualism). Similar to a **professional organisation** (Mintzberg). 4. **Task culture**: Focus on task-orientation, professionalism, and results. Represented by **Athena** (goddess of wisdom). Similar to an **innovative organisation** (Mintzberg). - **Technological properties and cultural types**: 1. **Routine technology** → Role culture 2. **Valuable technology** → Role culture 3. **Mass production** → Role culture 4. **Coordination-heavy technology** → Role culture 5. **Unit production** → Power or task culture 6. **Flexibility-heavy technology** → Power or task culture     **12.3 Cultural Change** - **Culture alignment**: The culture of an organisation should align with its target effectiveness. No single ideal cultural type exists; different departments may have different cultures. - **Internal differences**: Departments like marketing and production often have distinct cultures, leading to possible dominant cultures. - **Environmental changes**: Changes in the environment can misalign the organisation\'s culture with its new context, requiring cultural adjustments. - **Management\'s role in cultural influence**: Management has several options to influence or guide the culture: - **The organisation's figurehead**: A new top-level manager can inspire new norms and values. - **Ceremonies and rituals**: These formalise and visualise the organisation\'s values. - **Stories and language**: Stories and language used in the organisation communicate desirable behaviours. - **Socialisation**: New employees learn the culture through training and working with incumbent employees. - **Cultural change process**: Cultural change is similar to behavioural change, involving changes to basic assumptions, which is difficult but most effective. - **Key activities for cultural change**: 1. Create awareness of the need for change. 2. Develop a clear vision from top management for the direction and extent of the change. 3. Top-level management must show commitment and inspiration. 4. Ensure organisational support for the change through events and activities. 5. Provide training and courses. 6. Visualise the results of the change. **12.2.5 Schein's Three-Layer Model** - **Model overview**: Schein's model (1980) describes culture as the fundamental, unspoken assumptions shared by a group, influencing perceptions, thoughts, feelings, and behaviours. - **Two aspects of culture**: Construction of organisational culture and achieving cultural change. - **Direct vs indirect mechanisms**: - **Direct-acting mechanisms**: Influence culture directly (e.g., organisational notions, role behaviour). - **Indirect-acting mechanisms**: Influence culture indirectly (e.g., house style, organisational mission/vision). - **Three levels of organisational culture** (onion model): - **Artefacts and symbols**: - **The outer layer, visible and easy to change.** - **Includes structure, processes, logos, language, and building design.** - **Influence culture indirectly.** - **Espoused values**: - **Include strategies, norms, values, and codes of conduct.** - **Well-known throughout the organisation and influence culture indirectly.** - **Assumptions**: - **The innermost layer, consisting of shared (conscious or unconscious) beliefs and norms.** - **These influence culture directly but are difficult to change.** - **Cultural change requires transforming these basic assumptions.** - **Cultural change process**: To effectively change culture, assumptions need to be changed or adjusted, not just artefacts or values. This requires deep exploration and can involve transformational processes and intervention.