BUS 272 Leadership and Org Structure PDF

BUS 272 – E100 Week 11: Organizational Structure & Leadership Melissa McCrae, EdD  Organization Structure The Key Question The Answer Is Provided By...

BUS 272 – E100 Week 11: Organizational Structure & Leadership Melissa McCrae, EdD  Organization Structure The Key Question The Answer Is Provided By How job tasks are 1. To what degree tasks subdivided into separate Work specialization formally divided, jobs? (division of labour) grouped, and 2. On what basis will jobs be grouped together? Departmentalization coordinated. 3. To whom do individuals and groups report? Chain of command 4. How many individuals can a manager efficiently Span of control What are the and effectively direct? benefits or 5. Where does decision-making authority lie? Centralization/ decentralization downsides of each? Formalization 6. To what degree will there be rules and regulations to direct employees and managers? 7. Do individuals from different areas need to Boundary spanning regularly interact?  1. Organization Structure F1 F2 F3 F4 P1 P2 P3 P4 F = Project management, sales, development P = T2240 build, client Bureaucratic Flat Matrix 11/15/2024 Simple/Flat Structure Organizational design characterized by a low departmentalization, wide spans of control, authority centralized in a single person, and little formalization Strengths: Simplicity: fast, flexible, inexpensive; accountability is clear Weakness: Works best in small organizations Can slow down decision making in larger organizations Can be risky as it relies on one person to make all decisions Can be problematic if leader is not strong  Bureaucracy Organizational structure with highly routine operating tasks via specialization, formalized rules & regulations, tasks grouped into units, centralized authority, narrow spans of control, & decision making that follows chain of command Strengths: Performs standardized activities in an efficient manner Economies of scale, minimum duplication of personnel and equipment Lower quality employees are acceptable, which reduces employment costs Weaknesses: Creates subunit conflicts There is an obsessive concern with following rules Can waste time, become frozen, can hamper innovation Bureaucracy The functional structure is an organizational structure that groups employees by their similar specialties, roles, or tasks The divisional structure is an organizational structure that groups employees into units by product, service, customer, or geographical market area Matrix The matrix structure is an organizational design that combines functional and product departmentalization; it has a dual chain of command (e.g. Boeing, BMW, P&G, Blast, Business Faculty) Breaks the unity of command principle: employees have two bosses Advantages: Facilitates coordination when there are many activities More communication Efficient allocation of specialists Disadvantages: Power struggles, confusion, stress Mechanistic vs Organic Why do Structures Differ? Organizational strategy: Innovation strategy: aims for introduction of major new products/services Cost-minimization strategy: tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cut Imitation strategy: moving into new products or new markets only after their viability has already been proven Size Technology Environment (suppliers, customers, competitors, public pressure): capacity (degree to which can support growth), volatility (instability), complexity (heterogeneity, concentration in env) Institutions Leadership The ability to influence a group toward the achievement of a vision or set of goals It is a source of influence that may be formal (via position in an organization) or not (a variety of people can be called on to perform leadership roles) Non-sanctioned leadership is the ability to influence that arises outside the formal structure of the organization - it may be as or more important than formal influence Leaders need to challenge the status quo, create visions of the future, and inspire organizational members to achieve their visions Need managers to formulate detailed plans, create efficient organizational structures, and oversee day-to-day operations Leadership 1. Trait Theories: Are leaders different from others? 2. Behavioural Theories: Do leaders behave in particular ways? 3. Contingency Theories: Does the situation matter? Leadership also needs to evolve with artificial intelligence (AI) - Hard decision-making capabilities, such as processing information, may involve AI more in the future; soft elements, such as personality traits, attitudes, and behaviours, may become more highly valued Trait Theories Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from non-leaders Leadership Traits Extroversion Conscientiousness Openness Emotional Intelligence (Qualified) Traits can predict leadership, but better at predicting leader emergence than effectiveness  Behavioural Theories Ohio State Studies two key University of Michigan Studies two dimensions of leader behaviour: key dimensions of leader behaviour: Initiating structure: extent An employee-oriented leader leaders likely to define and emphasizes interpersonal structure their role & roles of relations employees to attain goals A production-oriented leader Consideration: extent leader emphasizes the technical or task likely to have job relationships aspects of the job characterized by mutual trust, respect for employees’ ideas, The dimensions of the two studies and regard for their feelings are very similar Behavioural: Blake and Moulton Concern for People Country Club Team Leader Produce or Perish Impoverished (Authority/ Obedience) Concern for Production Great Leaders... Be who you are: The characteristics of great leaders never exist in one person A leader needs to know his strengths as a carpenter knows his tools, or as a physician knows the instruments at her disposal. What great leaders have in common is that each truly knows their strengths – and can call on the right strength at the right time. This explains why there is no definitive list of characteristics that describe all leaders. Great Managers & Leaders Always investing in strengths Surround themselves with the right people Maximize their team Understand followers’ needs Trust, Compassion, Stability, Hope Why do people follow? Trust Honesty, respect, integrity Compassion Caring, friendship, happiness Stability Count on, solid foundation, security, strength, support Hope Direction, faith, guidance  What Great Managers DO Define behaviours they expect Identify exactly how each from people, tell them to work on employee is different and then what doesn’t come naturally, to figure out how to best praise those who overcome incorporate those enduring natural styles & conform to preset idiosyncrasies into the overall ideas, mold each employee into plan. the perfect version of the role. 19 What Great Managers DO Know, and make the most out of strengths Know, and use their triggers (e.g. recognition?) Know, and tailor to learning style Why: Saves time More accountable Sense of team Disruption to your world 20 Contingency (Situational) Leadership Theories Stress the importance of considering the context when examining leadership Fiedler Contingency Model Hersey and Blanchard’s Situational Theory Path-Goal Theory Fiedler Contingency Model Effective group performance depends on match between leader style and whether situation gives control to the leader Fiedler’s contingency situations: Leader-member relations: Degree of confidence, trust and respect members have for leader. Task structure: Degree to which jobs are structured. Position power: Degree to which leader has control over “power”: hiring, firing, discipline, promotions, salary. Fiedler assumed that an individual’s leadership style is fixed. High/low versus Medium Hersey and Blanchard’s Situational Theory An intuitive model that does not get much support from the research findings Follower: unable and unwilling Leader: needs to give clear and specific directions. Follower: unable but willing Leader: needs to display high task orientation and high relationship orientation. Follower: able but unwilling Leader: needs to use a supportive and participative style. Follower: both able and willing Leader: a laissez-faire approach will work Path-Goal Guidelines to be an Effective Leader Determine the outcomes subordinates want e.g., good pay, job security, interesting work, and autonomy to do one’s job, etc. Reward individuals with their desired outcomes when they perform well Be clear with expectations Let individuals know what they need to do to receive rewards (the path to the goal) Remove barriers that prevent high performance Express confidence in individuals Inspirational Leadership Charismatic Transformational Charismatic Leadership House’s Charismatic Leadership Theory: Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors Four characteristics of charismatic leaders: Have a vision Are willing to take personal risks to achieve the vision Are sensitive to follower needs Exhibit behaviors that are out of the ordinary Traits and personality are related to charisma; people can be trained to exhibit charismatic behaviors How Charismatic Leaders Influence Followers 1. Leader articulates an attractive vision Vision Statement: A formal, long-term strategy to attain goals Links past, present, and future; inspirational, value-centred, realizable, and given with superior imagery and articulation 2. Leader communicates high performance expectations and confidence in follower ability 3. Leader conveys a new set of values by setting an example 4. Leader engages in emotion-inducing and often unconventional behavior to demonstrate convictions about the vision Charismatic Leadership Issues Unfortunately, charismatic leaders who are larger than life do not necessarily act in the best interests of their organizations Many charismatic—but corrupt—leaders have allowed their personal goals to override the goals of their organizations Success depends on the situation and on the leader’s vision, and on the organizational checks and balances in place to monitor the outcomes Transactional vs Transformational Transactional leaders guide or motivate their followers in the direction of established goals by clarifying role and task requirements Transformational leaders inspire followers to transcend their own self-interests and who can have a profound and extraordinary effect on followers Best leaders are a mix of both; only one type is not enough for success Transformational Leaders Model of integrity and fairness Sets clear goals High expectations Encourages Provides support and recognition Stirs people's emotions Gets people to look beyond self-interest Inspires people to reach for improbable Authentic Leadership Authentic Leaders: who know who they are, know what they believe in and value, and act on these values and beliefs openly and candidly Primary quality: trust Build trust by: Sharing information Encouraging open communication Sticking to their ideals Has positive effects on employees; it is energizing; results in increased performance Servant Leadership Servant leadership is a leadership style marked by going beyond the leader’s own self-interest and instead focusing on opportunities to help followers grow and develop Don’t use power to achieve ends; emphasize persuasion Accept stewardship and actively develop followers’ potential Results in higher level of commitment to leader, self-efficacy, and perception of justice  Mentoring A mentor is an employee who sponsors and supports a less-experienced employee (called a protégé) Mentors are good teachers who present ideas clearly, listen, empathize Two functions: Career: Coaching, assisting, sponsoring OR Psychosocial: Counselling, sharing, acting as a role model Mentoring relationships can be formal or informal Many organizations have formal programs Should benefit both the mentor and protégé Formal relationships are often not as effective as informal ones Mentor commitment and protégé input into the relationship are critical Becoming the Boss Myth Reality Defining Characteristic of Authority Interdependency the New Role Network-builder role Source of Power Formal Authority Character, competence (but not technical), influence Desired Outcome Control Commitment, EMPOWERMENT Managerial Focus Managing one-on-one Leading the team, team culture and performance Key Challenge Keeping the operation in Change AGENT - generate working order changes within and outside responsibility 36 Followership “to be a great leader, you first have to be at sometime in your career a great follower” Understand your boss’ goals, pressures, strengths, weaknesses, blind spots, preferred work styles Frequent communication, dependability, understanding of expectations Selective use of boss’ time and resources