organisational structure and leadership styles
TRANSCRIPT
M. S. Ramaiah School of Advanced Studies 1
1. The Simple structure has authority centralized in a single
person, a flat hierarchy, few rules, and low work
specialization and is often used in the very early stages of a
firm
Example for Simple Structure
Organizational Structures
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2. In a Functional structure, common in both profit and non-
profit organizations, people with similar occupational
specialties are put together in formal groups.
Functional Structure: An Example
Vice-President, Production
Vice-President, Marketing
Vice-President,
Finance
Vice-President,
Human Resources
President
Organizational Structures
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3. When people with diverse occupational specialties are put
together in formal groups, a Divisional structure is in place
•Product divisions group activities around similar products or
services
•Customer divisions group activities around common
customers or clients
•Geographic divisions group activities around regional
locations
Organizational Structures
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Conglomerate Structure
President
ElectronicsFire & Security
HealthcarePlastics &Adhesives
EngineeredProducts
& Services
4. The Conglomerate structure groups divisions or business
units around similar businesses or industries
Conglomerate Structure: Typical example of the structure of Tyco International
Organizational Structures
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Hybrid Structure
Vice-President, Production
Vice-President, Marketing
Vice-President,
Finance
Vice-President,
Human Resources
Functional divisional structure
President
President Cadillac
PresidentBuick
PresidentPontiac
PresidentChevrolet
Product Divisional Structure
ManagerRegion I
ManagerRegion II
ManagerRegion III
ManagerRegion IV
Geographical divisional structure
5. A Hybrid structure uses functional and divisional structures in
different parts of the same organization
Hybrid Structure: An Ex. of Org St of General Motors
Organizational Structures
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6. When an organization combines functional and divisional
chains of command in a grid so that there a two command
structures, vertical and horizontal, a Matrix structure is used President
Vice President,
Engineering
Vice President,Finance
Vice President, Production
VicePresident.MarketingProject
Manager,Taurus
Project Manager,Mustang
Project Manager,Explorer
Project Manager,
Expedition
Functional Structure
Project structure
Subordinate reports to
Vice President of marketing &
Project Manager for Mustang
Organizational Structures
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7. In a Team-based structure, teams, both temporary and
permanent, are used to improve horizontal relations and solve
problems throughout the organization
President
V President R&D
V PresidentDesign
V PresidentEngineering
V PresidentMarketing
Functional Structure
Product Team Mfg Light Truck
Product Team Mfg Sedans
Product Team Mfg Sports Cars
Project Teams
Project Team members
Organizational Structures
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Organizational Structures
8. The Network structure or Virtual organization has a central
core that is linked to outside independent firms by computer
connections which are used to operate as if all were a single
organization
Core Company
USA
Design
Studio
Sweden
Engineering
Company
Japan
Components
Assembly
Mexico, Asia
DistributionCompany
CanadaAccounting& Finance
USA
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Leadership Styles
Leadership is the art of motivating a group of people to act towards
achieving a common goal
Managers do the things right, Leaders do the right things
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Leadership Styles
Leadership style is the manner and approach of providing
direction, implementing plans, and motivating people
Different leadership style will result in different impact to
organization
The leader has to choose the most effective approach of
leadership style depending on situation (because leadership
style is crucial for a team success)
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Types of Leadership Styles:
Authoritarian or Autocratic
Leadership
Democratic or Participative
Leadership
Delegative or Laissez-faire
Leadership
Leadership Styles
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Autocratic or Authoritarian Leadership Style:
Manager retains as much power and decision
making authority as possible
Does not consult staff, nor allowed to give any
input
Staff expected to obey orders without
receiving any explanations
Greatly criticized during the past 30 years
Rely on threats and punishment to influence
staff
Leadership Styles
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The Most Effective Style to use, When:
New, untrained staff do not know which tasks to
perform or which procedures to follow
Effective supervision provided only through detailed orders
and instructions
Staff do not respond to any other leadership style
Limited time in which to make a decision
A manager’s power challenged by staff
Work needs to be coordinated with another department or
organization
Leadership Styles
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Ineffective, When :
Staff become tense, fearful, or resentful
Staff expect their opinions heard
Staff depend on their manager to make all their decisions
Low staff morale, high turnover and absenteeism and work
stoppage
Leadership Styles
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Encourages staff to be a part of the
decision making
Keeps staff informed about everything that affects their work and
shares decision making and problem solving responsibilities
Group members feel engaged in the process and are more
motivated and creative
Participative leaders encourage group members to participate, but
retain the final say over the decision-making process
Democratic or Participative Leadership Style:
Leadership Styles
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Effective ,When :
Wants staff to share in decision-making and
problem-solving duties.
Wants to provide opportunities for staff to develop a high
sense of personal growth and job satisfaction.
A large or complex problem that requires lots of input and
feedbacks to solve
Want to encourage team building and participation
Leadership Styles
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Ineffective , When:
Not enough time to get everyone’s input
Easier and more cost-effective for the manager to make the
decision
Can’t afford mistakes
Manager feels threatened by this type of leadership
Staff safety is a critical concern
Leadership Styles
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Delegative or Laissez-faire Leadership
This Leadership style is a ‘hands off’ approach in
which a leader transfers decision making power to one or
more employees, but remains responsible for their decisions.
Leadership Styles
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Effective , When:
Staff highly skilled, experienced, and educated
Staff have pride in their work and the drive to do it
successfully on their own
Outside experts, such as staff specialists or consultants used
Staff trustworthy and experienced
Leadership Styles
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Ineffective , When:
Staff feel insecure at the unavailability of a manager
The manager cannot provide regular feedback to staff on how
well they are doing
Managers unable to thank staff for their good work
The manager doesn’t understand his or her responsibilities and
hoping the staff cover for him or her
Leadership Styles
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References.
[1] Prof V.G.S. Mani, Manufacturing Strategy, Module notes, M S Ramaiah school of advanced studies, Bangalore , January 2010.
[2] John Miltenburg, Manufacturing Strategy: How to formulate and implement a winning plan, 2nd Edition, Productivity Press, New York, 2005
[3] unknown, ACE designers logo, httpwww.leanmachinetool.comIndustry.aspx, retrieved on 5th december 2010.http://www.nwlink.com/~donclark/leader/leadstl.htmlhttp://www.fao.org/docrep/w7503e/w7503e04.htm#type of organizational structurehttp://gametlibrary.worldbank.org/FILES/864_Types%20of%20Organograms.pdf[4] unknown, Maruti logo, httpwww.topnews.incompaniesmaruti, retrieved on 5th december 2010.
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