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Assignment 10 The Good, the Bad, and the UglyInstructionsM.docx
- 1. Assignment 10: The Good, the Bad, and the Ugly Instructions: Most of you have some form of business experience, whether in management or as line staff. Each of you have witnessed small or significant decisions that turned out to be "good", "bad" and some right down complex and "ugly" outcomes with unintended or ignored consequences. I would request each of identify two "good, bad and ugly" decision outcomes from a business environment. Your goal this week is to explore the decisions by examining the following items: · describe the situation/circumstance in as much detail as possible keeping potential issues of confidentiality in mind. · what was the outcome (s) · what occurred in the decision-making process that influenced the "good, bad and ugly" outcome (s) · what was the consequence of the outcomes Please share your answer in 5 pages a written submission. I would suggest each item will probably take one page to explore in an appropriate manner! 1. Define leadership and shared leadership, and describe authentic leadership. Share a personal or professional experience representative of one of these. Your response should be at least 200 words in length. 2. Consider your favorite teacher. What people-oriented and task-oriented leadership behaviors did he or she use effectively? In general, do you think students prefer an instructor who is more people-oriented or task-oriented? Explain your preference. Your response should be at least 200 words in length. 3. Discuss cultural and gender similarities and differences in
- 2. leadership. Share a personal or professional experience representative of one of these. Your response should be at least 200 words in length. 4. Explain how the external environment, organizational size, technology, and strategy are relevant in the design of an organizational structure where you have worked. Your response should be at least 200 words in length. Designing Organizational Structures McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. 13-2 Merritt’s Bakery’s Evolving Organizational Structure Merritt’s Bakery has grown over the years, and throughout this growth the Tulsa, Oklahoma, company has adapted its
- 3. organizational structure. 13-3 Organizational Structure Defined • Division of labor and patterns of coordination, communication, workflow, and formal power that direct organizational activities • Relates to many OB topics (e.g. job design, teams, power, work standards, information flow) 13-4 Division of Labor to different people
- 4. coordinate work becomes more complex 13-5 Coordinating Work Activities 1. Informal communication • Sharing information, forming common mental models • Good for flexibility, nonroutine and ambiguous situations • Easiest in small firms • Larger firms apply informal communication through - Liaison roles - Integrator roles - Concurrent engineering
- 5. 13-6 Coordinating Work Activities 2. Formal hierarchy • Direct supervision • Assigns legitimate power to manage others • Necessary in most firms, but has problems 3. Standardization • Standardized processes (e.g., job descriptions) • Standardized outputs (e.g., sales targets) • Standardized skills (e.g., training) 13-7 Elements of Organizational Structure Span of Control
- 6. Centralization Department- alization Formalization Elements of Organizational Structure 13-8 KenGen’s Flatter Structure KenGen, Kenya’s leading electricity generation company, reduced its hierarchy from 15 layers to just 6 layers. “This flatter structure has reduced bureaucracy and it has also improved teamwork,” explains KenGen executive Simon Ngure. 13-8 13-9
- 7. Span of Control to the next level • Related to coordination through direct supervision when: 1. Other coordinating mechanisms are present 2. Routine tasks 3. Low employee interdependence 13-9 13-10 Tall vs Flat Structures • Build a taller hierarchy • Widen span, or both
- 8. s • Overhead costs • Worse upward information • Focus power around managers, so staff less empowered 13-10 13-11 Centralization and Decentralization -- Formal decision making authority is held by a few people, usually at the top companies grow centralization in different areas of the company
- 9. • Example: sales decentralized; info systems centralized Upper Mgt Middle Mgt Front line Supervisory Upper Mgt Middle Mgt Front line Supervisory Upper Mgt Middle Mgt Front line Supervisory Production Sales Information Systems = locus of decision making authority
- 10. 13-12 Formalization behavior through rules, procedures, formal training, and related mechanisms. larger, and more regulated • Reduces organizational flexibility • Discourages organizational learning/creativity • Reduces work efficiency • Increases job dissatisfaction and work stress 13-13 TAXI’s Organic Structure TAXI, Canada’s creative agency of the decade, has an organic structure that relies on small teams, low formalization, and
- 11. decentralized decision making. “We needed a flexible infrastructure, able to move with the pace of change,” says co-founder Paul Lavoie (right in photo with CEO Rob Guenette). 13-14 Mechanistic vs. Organic Structures • Narrow span of control • High formalization • High centralization • Wide span of control • Low formalization • Decentralized decisions 13-15
- 12. Effects of Departmentalization Specifies how employees and their activities are grouped together Three functions: 1. Establishes chain of command 2. Creates common mental models, measures of performance, etc 3. Encourages staff to coordinate through informal communication 13-16 Organizes employees around specific knowledge or other resources (e.g., marketing, production) CEO Finance Production Marketing Functional Organizational Structure 13-17
- 13. Evaluating Functional Structures • Economies of scale • Supports professional identity and career paths • Easier supervision imitations • More emphasis on subunit than organizational goals • Higher dysfunctional conflict • Poorer coordination -- requires more controls 13-18 Organizes employees around outputs, clients, or geographic areas Divisional Structure CEO Healthcare Lighting Products
- 14. Consumer Lifestyle 13-19 Divisional Structure • Geographic structure • Product structure • Client structure diversity or uncertainty 13-20 Globally Integrated Enterprise • Less need for local representation • Reduced geographic variation • More global clients
- 15. • Connects work processes around the world rather than replicating them within each country or region • Functional heads are geographically distributed • Firm’s “home” country is no longer focus of business 13-21 Evaluating Divisional Structures • Building block structure -- accommodates growth • Focuses on markets/products/clients • Duplication, inefficient use of resources • Specializations are dispersed--silos of knowledge • Revising divisional structure emphasis produces politics and conflict among executives 13-22
- 16. Team-Based Structure -directed work teams 13-22 13-23 Evaluating Team-Based Structures • Responsive, flexible • Lower admin costs • Quicker, more informed decisions • Interpersonal training costs • Slower during team development • Role ambiguity increases stress • Problems with supervisor role changes • Duplication of resources
- 17. 13-24 Audio Dept Leader Software Dept Leader Art Dept Leader Game1 Project Leader Game2 Project Leader Game3 Project Leader Matrix Structure (Project-based) CEO Employees ( ) are temporarily assigned to a specific project team and have a permanent functional unit 13-25 Evaluating Matrix Structures
- 18. • Uses resources and expertise effectively • Improves communication, flexibility, innovation • Focuses specialists on clients and products • Supports knowledge sharing within specialty • Solution when two divisions have equal importance • Increases goal conflict and ambiguity • Two bosses dilutes accountability • More conflict, organizational politics, and stress 13-26 Core
- 20. design partner (UK) Assembly partner (China) Network Organizational Structure Alliance of firms creating a product or service Supporting firms beehived around a
- 21. “hub” or “core” firm 13-27 Evaluating Network Structures • Highly flexible • Potentially better use of skills and technology • Not saddled with same resources for all products • Exposed to market forces • Less control over subcontractors than in-house 13-28
- 22. External Environment & Structure Dynamic • High rate of change • Use team-based, network, or other organic structure Stable • Steady conditions, predictable change • Use mechanistic structure Complex • Many elements (such as stakeholders) • Decentralize Simple
- 23. • Few environmental elements • Less need to decentralize 13-29 Diverse • Several products, clients, regions • Use divisional form aligned with the diversity Hostile • Competition and resource scarcity • Use organic structure for responsiveness
- 24. Integrated • Single product, client, place • Use functional structure, or geographic division if global Munificent • Plenty of resources and product demand • Less need for organic structure External Environment & Structure (con’t) 13-30 Effects of Organizational Size As organizations grow, they have:
- 25. 13-31 Technology and Structure processes by which an organization turns out its product or service • Variability -- the number of exceptions to standard
- 26. procedure that tend to occur. • Analyzability -- the predictability or difficulty of the required work 13-32 Organizational Strategy • Strategy points to the environments in which the organization will operate • Leaders decide which structure to apply • Providing unique products or attracting clients who want customization
- 27. • Maximize productivity in order to offer competitive pricing Designing Organizational Structures Leadership in Organizational Settings McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
- 28. 12-2 The Leadership of Steve Jobs During his life, Steve Jobs won numerous awards for his transformational and charismatic leadership. The co-founder of Apple, Inc. and Pixar animation Studios was equally renowned as a demanding perfectionist with less-than-ideal people skills. 12-3
- 29. Leadership Defined Leadership is the ability to influence, motivate, and enable others to contribute toward the effectiveness of the organizations of which they are members 12-4 Shared Leadership rather than assigned to one person, such that
- 30. people within the team and organization lead each other. • Employees champion change, ideas, etc. • Formal leaders willing to delegate power • Collaborative culture – employees support each other • Employees able to influence others 12-5 Leadership Perspectives Competency
- 32. performance in a leadership role influences on leadership potential and of effective leaders 12-7 Self-concept Drive • Positive self-evaluation • High self-esteem and self-efficacy • Internal locus of control
- 33. • Inner motivation to pursue goals • Inquisitiveness, action-oriented Integrity • Truthfulness • Consistency in words and actions Personality • Extroversion, conscientiousness (and other personality dimensions) Eight Leadership Competencies more 12-8 Cognitive/ Practical
- 34. intelligence • Above average cognitive ability • Able to solve real-world problems Knowledge of the Business • Understands external environment • Aids intuitive decision making Eight Leadership Competencies (con’t) Leadership Motivation • Motivation to lead others • High need for socialized power
- 35. Emotional Intelligence • Perceiving, assimilating, understanding, and regulating emotions 12-9 Authentic Leadership at TNT TNT, the Netherlands-based express and mail delivery services company, relies on “honesty, authentic leadership, and truly connecting with staff” to
- 36. keep the firm humanized. “What you can do as a company is emphasize that authentic leadership is key and explain what it entails” says TNT’s head of human resources. 12-10 Authentic Leadership Know Yourself • Engage in self- reflection • Feedback from
- 37. trusted sources • Know your life story Be Yourself • Develop your own style • Apply your values • Maintain a positive core self-evaluation 12-11 Competency Perspective Limitations 1. Implies a universal approach
- 38. 2. Alternative combinations of competencies might work just as well 3. Leadership is relational, not just something within the person 4. Competencies refer to leadership potential, not performance 12-12 Leader Behavior Perspective -oriented behaviors • Assign work, clarify responsibilities • Set goals and deadlines, provide feedback • Establish work procedures, plan future work
- 39. -oriented behaviors • Concern for employee needs • Make workplace pleasant • Recognize employee contributions • Listen to employees 12-13 Leader Behavior Perspective Limitations leader behavior that may be distinct both people-oriented and task-oriented styles
- 40. • But best style seems to depend on the situation 12-14 Servant Leadership fulfillment, personal development, and growth nurturing, empathetic, and ethical coaches 1. Natural calling to serve others 2. Maintain a humble, egalitarian, accepting
- 41. relationship 3. Anchor decisions/actions on ethical principles 12-15 Anne Sweeney’s Path-Goal Leadership Disney/ ABC executive Anne Sweeney has an uncanny ability to provide both task-oriented and people-oriented leadership. there.”
- 42. her grace in keeping her focus firmly on the future.” It trains you to anticipate it.” “She's very concerned about the people who work for her.” 12-16 Path-Goal Leadership information, support, and other resources, and ensure that rewards are linked to
- 43. good performance situational contingencies to determine the best leader style 12-17 Path-Goal Leadership Styles • Provide psychological structure to jobs • Task-oriented behaviors • Provide psychological support
- 44. • People-oriented behaviors • Encourage/facilitate employee involvement -oriented • Encourage peak performance through goal setting and positive self-fulfilling prophecy 12-18 Path-Goal Leadership Model Employee Contingencies Environmental Contingencies
- 45. Leader Behaviors • Directive • Supportive • Participative • Achievement- oriented Leader Effectiveness • Employee motivation • Employee satisfaction • Acceptance of
- 46. leader 12-19 Path-Goal Contingencies ience • Low: directive and supportive leadership • Internal: participative and achievement leadership • External: directive and supportive leadership • Nonroutine: directive and/or participative leadership m dynamics • Low cohesion: supportive leadership
- 47. • Dysfunctional norms: directive leadership 12-20 Other Contingency Leader Theories • Four styles: telling, selling, participating, delegating • Best style depends on follower ability/motivation • Popular model, but lacks research support • Leadership style is stable -- based on personality • Best style depends on situational control • Theory has problems, but uniquely points out that
- 48. leaders have a preferred style, not very flexible 12-21 Leadership Substitutes or make a particular leadership style unnecessary • e.g.: Training and experience replace task-oriented leadership don’t completely substitute for real leadership 12-22
- 49. Transformational, Managerial, and Transactional Leadership • Change agents – transforming the organization to fit environment • Improving employee performance and well-being in the current situation • Applies contingency leadership theories (e.g. path-goal) • Influencing followers through rewards, penalties, and
- 50. negotiation Courtesy of Microsoft 12-23 Transformational v. Charismatic Leaders leadership is essential for transformational leadership -- charisma differs from transformational leadership referent power • Doesn’t necessarily attempt to change the organization to bring about change
- 51. 12-24 Transformational Leadership Model Develop a strategic vision Communicate the vision Model the vision Build commitment to the vision
- 52. Elements of Transformational Leadership 12-25 Transformational Leadership Elements • Image of company’s attractive future • Motivates and bonds employees • Vision may originate from the leader, employees, or other stakeholders
- 53. • Frame message around a grand purpose • Shared mental model of the future • Use symbols, metaphors, symbols Develop a strategic vision Communicate the vision Elements of Transformational
- 54. Leadership 12-26 Transformational Leadership Elements (con’t) • Walk the talk • Symbolize/demonstrate the vision through behavior • Employees trust leader more • By communicating and modeling the vision • Through employee involvement in shaping
- 55. the shared vision Develop a strategic vision Communicate the vision Model the vision Build commitment to the vision Elements of Transformational
- 56. Leadership 12-27 Evaluating Transformational Leadership • Higher employee satisfaction, performance, org citizenship, creativity rship limitations • Risk of circular logic - Some research defines transformational leaders by their success rather than their behavior • Universal theory
- 57. - Need a contingency-oriented theory - Need to recognize cultural differences 12-28 Implicit Leadership Perspective Follower perceptions of characteristics of effective leaders 1. Leadership prototypes • Preconceived beliefs about the features and behaviors of effective leaders. 2. Romance of leadership effect • Amplify effect of leaders on organizational results • Fundamental attribution error
- 58. • Need for situational control 12-29 Leading with Ubuntu Values Barloworld Logistics CEO Isaac Shongwe is keen to imprint Africa’s unique ubuntu value throughout the company’s operations in 26 countries. Ubuntu is the notion of that each of us is a person through others. Thus, ubuntu calls for
- 59. leadership that emphasizes mutual respect, tolerance, and forgiveness. 12-30 Cultural Issues in Leadership al values and practices affect leaders: • Shape leader’s values/norms • Influence decisions and actions • Shape follower prototype of effective leaders
- 60. universal, others differ across cultures • “Charismatic visionary” seems to be universal • Participative leadership works better in some cultures than others 12-31 Gender Issues in Leadership - and people-oriented leadership ed more
- 61. often by female leaders • Still receive negative evaluations as leader due to prototypes and gender stereotypes • But evidence that they are good at emerging leadership styles (coaching, teamwork) Leadership in Organizational Settings