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1、Leadership and OrganisationsLeadership and Organisations6BUS1001Len RyderORGANISATIONAL STRUCTURE & MANAGEMENTLEADERSHIP and CHANGE (1)PREAMBLE(click on the speaker icon below)ORGANISATIONAL STRUCTURE & MANAGEMENTLEADERSHIP and CHANGE (1)Leading change is one of the greatest challenges for l
2、eaders.Change can be inconvenient, painful and downright scary. Even when a change appears to be good for individual employees as well as the organisation, it can lead to decreased morale, lower commitment and diminished trust if not handled carefully.Some of the most difficult changes are those rel
3、ated to Organisational STRUCTURE and CULTURE.Changing the Organisational Structure involves redefining positions and responsibilities, re-engineering the company, redesigning jobs, departments and divisions or downsizing the organisation.Daft, 2008ORGANISATIONAL STRUCTURE & MANAGEMENTORGANISATIO
4、NAL STRUCTURE & MANAGEMENTTHE CLASSICAL APPROACHThe Classical Approach to organisation, structure and management places an emphasis on formal structures, rules, hierarchies and common principles or organisation.The Classical Approach is generally associated with the work of:1. F.W.Taylor (1911)
5、- Scientific Management2. Henri Fayol (1916) - Management Functions3. Max Weber (1947) - BureaucracyORGANISATIONAL STRUCTURE & MANAGEMENTTHE CLASSICAL APPROACH1. The Principles of Scientific Management (Taylorism)Frederick F. Taylor (1911)1.Develop a science for each element of a mans work, whic
6、h replaces the old “rule-of thumb” method. 2.Scientifically select and then train, teach, and develop the workman, whereas in the past he chose his own work and trained himself as best he could. 3.Managers heartily cooperate with the men so as to insure all of the work being done in accordance with
7、the principles of the science which has been developed. 4.There is an almost equal division of the work and the responsibility between the management and the workmen. The management take over all work for which they are better fitted than the workmen, while in the past almost all of the work and the
8、 greater part of the responsibility were thrown upon the men.Embodied in the above are:Replacement of the old rule-of-thumb method by a more scientific measurement of work derived from time-and-motion studies.Standardisation of small work.Sub-division of labour each act preceded by preparatory acts
9、by other workers (Specialisation)Work planned by managers in advanceWorkers given detailed and written instructions on what to do and how to do the work.Higher wages from increased output (money being a motivator).Alignment of workers ability to the task.Selection, training and development of worker
10、sDivision of work between management and workers elimination of the boss and the duty of management to help workers.Consequently, Management is a true science, resting upon clearly defined laws, rules and principles e.g. Factories, Call CentresORGANISATIONAL STRUCTURE & MANAGEMENTTHE CLASSICAL A
11、PPROACH2. The Functions of ManagementHenri Fayol (1916)Planning- gather all information, define the task and make a workable planOrganising- brief the team, explain the plan, allocate tasks, set standardsCommanding- monitor changes, assess the situation, make decisions, provide leadershipCo-ordinati
12、ng- recognise individuals contributions, ensure all component tasks are working in harmony, encourage, discipline, motivateControlling- maintain standards, ensure all actions are towards objectives.ORGANISATIONAL STRUCTURE & MANAGEMENTTHE CLASSICAL APPROACH3. BureaucracyMax Weber (1947)Weber sta
13、tes that a bureaucratic organisation is technically the most efficient form of organisation possible. the bureaucratic organisation becomes typical of all the institutions of modern societies.(Pugh & Hickson, 1996)Characteristics1.Job specialisation: jobs are broken down into simple, routine and
14、 well-defined tasks2.Authority hierarchy: Positions are in a hierarchy of authority, with each position under the authority of a higher one with a clear chain of command 3.Employment and career: all personnel selected and promoted on the basis of their technical qualifications and offered a full-tim
15、e career supported by thorough and expert training4.Recording: Activities and decisions are recorded in writing that form the organisational memory (the files)5.Impersonal Rules and Procedures: all employees are equally subject to rules and procedures that ensure reliable and predictable behaviourOR
16、GANISATIONAL STRUCTURE & MANAGEMENTTHE HUMAN RELATIONS APPROACHMoved the focus away from the idea that workers were simply a part of the production process and emphasised the fact that people work better if they are treated like human beings1.Mayo (1927) Hawthorne Experiments2.McGregor (1960) Th
17、eory X & Theory Y ORGANISATIONAL STRUCTURE & MANAGEMENTTHE HUMAN RELATIONS APPROACH1. Hawthorne ExperimentsElton Mayo (1927)Experiments carried out at the Hawthorne plant of Western Electric in ChicagoEmployees raised their performance after their working conditions were discussed with them
18、extra attention given to them and the apparent interest shown in them by managementWorkers appeared to welcome the opportunity to have someone to talk to about their feelings and problems in a friendly atmosphereThis placed the “Human elements” into the management of people. It demonstrated the need
19、 to see work processes as a collective co-operative activity rather than an individual, isolated one motivated by money. (“These studies gave substance to a growing suspicion that the Classical view of organisations as being peopled by machines motivated by money was badly flawed” Burns, 1996)ORGANI
20、SATIONAL STRUCTURE & MANAGEMENTTHE HUMAN RELATIONS APPROACH2. Theory X & Theory YDouglas McGregor (1960)The way managers manage people at work often depends upon their attitudes towards them. These attitudes are derived from assumptions they make about human beings generally.Douglas McGregor
21、 suggested that managers operate under one of two sets of contrasting assumptions and what they believed about people can influence them to behave in that way:Theory X people only work because they have to. They dislike responsibility and must be directed, rewarded or punished and strictly controlle
22、dTheory Y people have a psychological need to work, look for fulfilment in it and welcome responsibility.Theory X & Theory YTheory XThe average person dislikes work and will avoid it he/she can. Therefore most people must be forced with the threat of punishment to work towards organisational obj
23、ectives. The average person prefers to be directed, to avoid responsibility, is relatively unambitious, and wants security above all else. Theory YEffort in work is as natural as work and play. People will apply self-control and self-direction in the pursuit of organisational objectives, without ext
24、ernal control or the threat of punishment. Commitment to objectives is a function of rewards associated with their achievement. People usually accept and often seek responsibility. The capacity to use a high degree of imagination, ingenuity and creativity in solving organisational problems is widely
25、, not narrowly, distributed in the population. In industry the intellectual potential of the average person is only partly utilised. (requires an Authoritative Management style)(requires a Participative Management style)ORGANISATIONAL STRUCTURE & MANAGEMENTTHE SYSTEMS APPROACHViews organisations
26、 as a system of inter-related activitiesEnables key elements of organisations to be studied individually, in relation to other elements and how they interact with the external environment Systems can be open or closed ORGANISATIONAL STRUCTURE & MANAGEMENTTHE SYSTEMS APPROACHClosed SystemINPUTSLa
27、bourTechnologyFinanceMaterialsPremisesManagement skillsOUTPUTSGoodsServicesIdeasInformationorganisation?FEEDBACK LOOPORGANISATIONAL STRUCTURE & MANAGEMENTTHE SYSTEMS APPROACH Contextual Environment (General)PoliticalEconomicSocialTechnologicalLegalEnvironmentalOperational Environment (Immediate)
28、CompetitorsSuppliersLabour MarketFinancial CustomersorganisationExternal InfluencesInputsOutputsOpen SystemORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational Structures“The way an organisation is configured into work groups, and the reporting and authority relationships that connect individuals
29、 and groups together”Brooks (1999)“The sum total of the ways in which it divides its labour into distinct tasks and then achieves co-ordination between them”Mintzberg (1979)“Good organisation structure does not by itself produce good performance. But a poor organisational structure makes good perfor
30、mance impossible no matter how good the individual managers may be. To improve organisation structure will therefore always improve performance”Drucker (1989)ORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational StructuresTypes of Organisational Structures:1.Divisional Structures (Divisionalisatio
31、n)2.Functional Structure (Functionalisation)3.Matrix Structure4.Handys StructuresORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational Structures1. Divisional StructuresThere are 3 forms of Divisional structure:(1)Geographic- when managers organise divisions according to the area of the country or
32、 world in which they operate.- Jones, et al, 1998Divisional Structures (Geographic)GeographicVIRGINGROUPAfricaAsiaAustraliaUKCanadaEuropeUSAThe Divisions do not accurately reflect Virgins structure for illustration purposes only.ORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational Structures1. Di
33、visional StructuresThere are 3 forms of Divisional structure:(1) Geographic(2) Product-when managers organise divisions according to the type of goods or services they provideJones, et al, 1998Divisional Structures (Product)VIRGINGROUPAfricaAsiaAustraliaUKCanadaEuropeUSATravel&TourismLeisure&
34、;PleasureSocial&EnvironmentFinance&MoneyMedia&Telecomm-unicationsShoppingHealthProduct GroupingORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational Structures1. Divisional StructuresThere are 3 forms of Divisional structure:(1) Geographic(2) Product(3) Customer (or Market)-when manage
35、rs organise divisions according to the types of customers they focus on.Jones, et al, 1998Divisional Structures (Customer)B TBT RetailBT GlobalServicesBT WholesaleOpenreach Customer GroupingORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational Structures1. Divisional StructuresCharacteristics of D
36、ivisionsOrganisations may be structured with the focus on geography, products (or services) & customers (or market)Each Division within a company is self-contained Divisional Managers have responsibility for their business-level strategy and to compete in their own market-placeEach Division has
37、a complete set of FunctionsDivisionalisation is a form of Decentralisation.ORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational Structures1. Divisional StructuresDisadvantages is more wasteful of resources . it must duplicate personnel and equipment or lose the advantages of specialisation (Mintz
38、berg, 1983)Cannot take advantage of economies of scale (Mintzberg, 1983)Divisions within the same company could end up trying to market to the same customers (Mills & Friesen, 1986)Divisional organisations often drift into a hodgepodge of centralised and decentralised activity (Peters & Wate
39、rman, 1982)ORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational Structures2. Functional StructureCompanies, (and Divisions), organise their working activity around teams. The most common team-structure is based on Functionse.g. Production, Marketing, Sales, Human Resources, R&D, Finance, Cust
40、omer Services, etc.Functional StructureHeadOfficeProductionBusinessDevelop-mentMarketingSalesR&DPurchasingFinanceHumanResourcesCustomerServicesF u n c t i o n sFunctionalisationFunctional StructuresORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational Structures3. Matrix StructureORGANISATIONA
41、L STRUCTURE & MANAGEMENTOrganisational Structures4. Handys Structures (Handy, 1993)Web StructureOrganisation built around the founder/owner with power centralised in the hands of a few key individualsGreek TempleOrganisation based upon functional specialisms and defined roles, common in a bureau
42、cracyHandys Structures (contd)NetA matrix in which project teams are co-ordinated by line and function emphasis is upon the taskClusterRelatively independent and self-supporting individuals e.g. professional practitioners ORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational StructuresCentralisati
43、onCentralisation refers to the degree to which the right to make decisions and evaluate activities is concentrated. (Koufteros & Vonderembse, 1998)AdvantagesEasier implementation of a common policy for the organisation as a wholeProvides a consistent strategy across the organisationMakes for eas
44、ier co-ordination and management controlPrevents sub-units becoming too independentImproves economies of scaleReduces overhead costsAllows for more stringent controlORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational StructuresDecentralisationDecentralisation is when a relatively large number of
45、 decisions are taken in the divisions or operating units. People in the operating units work as they think best, provided they deliver the results expected by corporate level and keep within some broad guidelines.e.g. The Branch Managers of the local supermarket stores having freedom over pricing an
46、d promotional activities. AdvantagesAllows more flexibility in meeting local needs:Divisional or Branch managers have local expertiseCan respond more rapidly to customer needs, market forces, competition and environmental changeConsequently, improved level of customer serviceGives local managers mor
47、e scope and improves motivationGives them greater challenges, autonomy, job satisfaction and improves moraleStimulates innovation and promotes entrepreneurshipProvides for better staff recruitment and retentionTailors conditions of service to local needsFormulates pay/benefits strategy according to
48、local situationORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational StructuresFactors Influencing Structure1.Power2.Culture values, beliefs & attitudes3.Leadership style4.Size of the business5.Scale and complexity of the organisation6.Technology7.Nature of the market8.Staff Skills strengths &
49、amp; weaknesses of key personnelORGANISATIONAL CHANGEChange is necessary if organisations are to survive. Leaders in organisations, from small companies to major corporations and government agencies, have had to reconceptualise almost every aspect of how they do business to meet the changing needs o
50、f customers or clients, keep employees motivated and satisfied, and remain effective and competitive in a complex, global environment.Daft, 2008“When the rate of exchange outside exceeds the rate of change inside, the end is in sight”.Jack Welch (Former Chairman & CEO, General Electric)ORGANISAT
51、IONAL CHANGETypes of Organisational ChangeBusiness Process Re-engineering (BPR)DelayeringMergers & Acquisitions (M&As)DemergingDownsizingOutsourcingORGANISATIONAL CHANGEOrganisational ChangeKotters 8-Step Change Model (Kotter, 1996)Step 1: Establishing a Sense of UrgencyHelp others see the n
52、eed for change and they will be convinced of the importance of acting immediatelyStep 2: Creating the Guiding CoalitionAssemble a group with enough power to lead the change effort, and encourage the group to work as a teamStep 3: Developing a Change VisionCreate a vision to help direct the change ef
53、fort, and develop strategies for achieving that vision. Step 4: Communicating the Vision for Buy-inMake sure as many as possible understand and accept the vision and the strategyKotters 8-Step Change Model (contd)Step 5: Empowering Broad-based ActionRemove obstacles to change, change systems or structures that seriously undermine the vision, and encourage risk-taking and nontraditional ideas, activities, and actions. Step 6: Generating Short-term WinsPlan for achievements that can easily be made visible, follow-through with those achievements and recognize and rewa
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