Organisational Structure and leadership styles

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


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



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



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



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



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



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




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


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


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)


Types of Leadership Styles:

Authoritarian or Autocratic

Leadership

Democratic or Participative

Leadership

Delegative or Laissez-faire

Leadership

Leadership Styles


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


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


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


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


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


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


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


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


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


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.

http://www.nwlink.com/~donclark/leader/leadstl.html

http://www.fao.org/docrep/w7503e/w7503e04.htm

http://www.fao.org/docrep/w7503e/w7503e04.htm

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

Organisational Structure and leadership styles

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