47769429 Organisational Structure and Leadership Styles

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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



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3. When people with diverse occupational specialties are puttogether 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



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Divisional Structure: Examples

President

Motion

Pictures & TV

Division

Music

Division

Magazine &

Book

Division

Internet

Products

Division

ProductDivisionalStructure

President

Consumer

Loans

Mortgage

Loans

Business

Loans

Agriculture

Loans

CustomerDivisional Structure

President

Western

Region

Northern

Region

Southern

Region

Eastern

Region

Geographic

Divisional Structure


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Conglomerate Structure

President

ElectronicsFire &

SecurityHealthcare

Plastics &

Adhesives

Engineered

Products

& Services

4. The Conglomerate structure groups divisions or businessunits around similar businesses or industries

Conglomerate Structure: Typical example of the structure of

Tyco International



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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

President

Buick

President

Pontiac

President

Chevrolet

Product

Divisional

Structure

Manager

Region I

Manager

Region II

Manager

Region III

Manager

Region 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



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6. When an organization combines functional and divisionalchains 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

Vice

President.

MarketingProject

Manager,Taurus

Project

Manager,Mustang

Project

Manager,

Explorer

Project

Manager,

Expedition

Functional

StructureProject

structure

Subordinate

reports to

Vice

President of

marketing

&

Project

Manager for

Mustang



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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 President

Design

V President

Engineering

V President

Marketing

Functional

Structure

Product Team

Mfg Light Truck

Product Team

Mfg Sedans

Product Team

Mfg Sports Cars

Project Teams

Project Team

members



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8. TheN

etwork structure orVirtual organization has a centralcore 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

Distribution

CompanyCanada

Accounting

& FinanceUSA


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Leadership Styles

Leadership is the art of motivating a group of people to act towardsachieving 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 ofLeadership Styles:

Authoritarian or Autocratic

Leadership

Democratic orParticipative

Leadership

Delegative orLaissez-faire

Leadership

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 managers power challenged by staff

Work needs to be coordinated with another department or

organization

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 everyones input

Easier and more cost-effective for the manager to make thedecision

Cant 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 doesnt 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, 2ndEdition, 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.html

http://www.fao.org/docrep/w7503e/w7503e04.htm#type of organizational

structure

http://gametlibrary.worldbank.org/FILES/864_Types%20of%20Organograms.pdf

[4] unknown, Maruti logo, httpwww.topnews.incompaniesmaruti, retrieved on5th december 2010.


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47769429 Organisational Structure and Leadership Styles