Professional Documents
Culture Documents
ORGANISATIONAL THEORY
An organisational structure defines how job tasks are formally divided, grouped and coordinates
Mintzberg defined organisational structure as "the sum total of the ways in which it divides its labour into distinct tasks and then achieves coordination among them".
Some definitions
the degree to which tasks in the organisation are subdivided into separate jobs. the basis by which jobs are grouped together.
Chain of command
the unbroken line of authority that extends from the top of the organisation to the lowest echelon and clarifies who reports to whom.
the number of subordinates a manager can efficiently and effectively direct
Span of control
the degree to which decision making is concentrated at a single point in the organisation
the degree to which jobs within the organisation are standardized
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4. Span of control
5. Centralisation and decentralisation 6. Formalization
CEO
Prod 1 Prod 2 Prod 3 Prod 4
CEO
Mkt
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Mfg
Finance
R&D Logistics
EVP
Sr. VP
VP
Asst. VP
VP
Asst. VP
Branch Mgr.
Branch Mgr.
Functional
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Functional
Division of work based on functional specialisations (production, sales, administration, personnel, purchasing, research and development, etc...)
Aim to reach efficiency goals and permits exploiting scale economies
Divisional
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Divisional
Division of work based on product type; market type; geographical area; type of technology; etc...
Aim to be adapted to strategic segmentation, and decrease the complexity of decision making
Suitable for high heterogeneity (products, market, technology) and high environmental instability (need for reactivity and decentralisation)
Main characteristics:
o Headquarter manage the whole, with global objectives (profit, margin,..), and usually measure results and distribute financial means o Divisions have large autonomy / elbow room o Better ability to respond to customers issues; more accountability o Disadvantage : redundant effort and resources 4
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Matrix
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Employee
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Matrix
Division of work based on the combination of two criteria (functional and divisional) Combination of needs for internal reactivity and the need to assure sophisticated specialized performance Suitable high environmental instability, high heterogeneity but with high interdependence Main characteristics:
o Everyone is belonging to a department, and depending on the time, is assigned to one of the other project or activity
o Dual reporting lines and functional o Extremely efficient, particularly when resources are scarce.
o Main disadvantage : whos the boss? confusion with chain of command; conflicts between project and department managers concerning deadlines 4 16
Characteristics:
Breaks down departmental barriers. Decentralizes decision making to the team level. Requires employees to be generalists as well as specialists. Creates a flexible bureaucracy.
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T-form Concepts:
Eliminate vertical (hierarchical) and horizontal (departmental) internal boundaries. Breakdown external barriers to customers and suppliers.
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Concepts:
Advantage: Provides maximum flexibility while concentrating on what the organization does best. Disadvantage: Reduced control over key parts of the business.
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A VIRTUAL ORGANIZATION
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VIRTUAL ORGANIZATION
A Virtual company resembles a normal traditional company in its inputs and its outputs. It differs in the way in which it adds value during the journey in between. Virtual Organization : read The Economist article
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Source: S. Adams, Dogberts Big Book of Business, DILBERT
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MANAGEMENT
Ten
Management Roles (Mintzberg) Informational (3 roles) : (1) MONITOR: gathers internal and external information relevant to the organisation; (2) DISSEMINATOR: transmits factual and value based information to subordinates; (3) SPOKESPERSON: communicates to the outside world on performance and policies.
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MANAGEMENT
Ten
Interpersonal (3 roles) : (4) FIGUREHEAD: the manager performs ceremonial and symbolic duties as head of the organisation; (5) LEADER: fosters a proper work atmosphere and motivates and develops subordinates; (6) LIAISON: develops and maintains a network of external contacts to gather information;
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MANAGEMENT
Ten
Decisional (4 roles) : (7) ENTREPRENEUR: designs and initiates change in the organisation; (8) DISTURBANCE HANDLER: deals with unexpected events and operational breakdowns; (9) RESOURCE ALLOCATOR: controls and authorises the use of organisational resources; (10) NEGOTIATOR: participates in negotiation activities with other organisations and individuals.
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LEADERSHIP
The ability to influence a group toward the achievement of goals If you want to build a boat, do not drum up people to collect wood or assign them tasks or work, but rather teach them to long for the endless immensity of the sea
Antoine de Saint-Exupery
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Traits of Leadership?
Commonalities : ambition, energy, desire to lead, honesty and integrity, selfconfidence, intelligence, job-relevant knowledge However too many limitations: no universal trait for all situations, trait predict behaviour in weak situations rather than strong, evidence not clear between cause from effect, trait better predict the appearance of leadership rather than the effectiveness
Behavioural theories
Theories proposing that specific behaviours differentiate leaders from nonleaders Based on behavioural theory => people can be trained to be leaders However is missing the consideration of situational factors
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Contingency theories
Relationship between leadership styles and effectiveness depends on different factors key variables isolated by some models
Neocharismatic theories
Stress symbolic and emotionally appealing leader behaviours Attempt to explain how certain leaders are able to achieve extraordinary levels of follower commitment Deemphasise theoretical complexity
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LEADERSHIP
What does a leader look like? I've met leaders all over the world, on several continents, and in every profession. I've met young leaders and old ones, leaders with big tribes and tiny ones. I can tell you this : Leaders have nothing in common. They don't share gender or income level or geography. There is no gene, no schooling, no parentage, no profession. In other words, leaders aren't born. I'm sure of it. Actually, they do have one thing in common. Every leader I've ever met share's one thing: the decision to lead. Seth Godin - Tribes: We Need You To Lead Us
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Team leadership
if we are together, nothing is impossible. If we are divided, all will fail Winston Churchill
Moral leadership
One of the things I noticed, as so many of us in business do, is that some of the hardest leadership decisions are the ones that have moral or ethical stakes Sandra J. Sucher, teaching the Moral Leadership at Harvard Business School
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Source: House, R. H. (2004). Culture, Leadership, and Organizations: the GLOBE study of 62 societies. London: Sage.
LEADERSHIP EXPECTATIONS
France Charismatic
US/UK
ALL.
Sude
France
Team
Inde
Chine
Brsil
France
Participative
ALL.
US/UK
Sude
France
Humane
Inde
US/UK
Afrique
France
ALL.
Russie
Chine
France
Turquie
Chine
Inde
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TO BE CONTINUED...
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