Notesale: Turn your study into money

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

---

Daft & William Organization Theory and Design
...
KITIABI©2016

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Organization Structure
 Three key components
 Vertical aspect of organizing
- Formal Reporting Relationships including the number of
levels and the span of control
...
Learning organization
- Traditional organization design emphasizes vertical
communication and control
...
Decentralized decision making
- Centralized authority focused on top level decision-making
- Decentralized authority focused on shared tasks and
decisions

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Efficiency versus
Learning Outcomes

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Vertical Information Sharing
 Vertical linkages coordinate activities between the top and
the bottom of the organization
 Hierarchical referral are the vertical lines which identify
the chain of command
 Rules and Plans
- Rules enabling employees to be coordinated
- Plans provides standing information for employees
...
It includes reports,
computer-based communication and written
information
For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Horizontal Information Linkages
 Horizontal linkage refers to the amount of communication
and coordinate activities across organizational departments
...
e
...

 Full-Time Integrator responsible for coordination
...

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Ladder of Mechanisms for
Horizontal Linkages

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Organization Design Alternatives





Three keys indicators of organization design
Required work activities
Reporting relationships
Departmental grouping options
- Functional grouping
- Divisional grouping
- Multi-focused grouping
- Horizontal grouping
- Virtual network grouping

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Departmental Grouping Options

Functional
Grouping

Divisional
Grouping

Horizontal
Grouping

Multifocused
Grouping

Virtual Network
Grouping

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Functional Structure
Strengths

Weaknesses

 Allows economies of scales
within functional
departments
 Enables in-depth knowledge
and skill development
 Enables organizations to
accomplish functional goals
 Is best with only one or a
few products

 Slow response time to
environmental changes
 May cause decisions to pile
on top, hierarchy overload
 Leads to poor horizontal
coordination
 Results in less
innovation
 Involves restricted
view of goals

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Divisional Structure
Strengths

Weaknesses

 Suited to fast change in
unstable environment
 Leads to customer
satisfaction
 Involves high coordination
 Allows units to adapt to
differences
 Best in large organizations
with several products
 Decentralizes decision
making

 Eliminates economies of
scale in functional
departments
 Leads to poor coordination
 Eliminates in-depth
competence and technical
specialization
 Makes integration and
standardization across
product lines difficult

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Functional vs
...


For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Matrix Structure
Strengths

Weaknesses

 Achieves coordination to
meet dual demands
 Flexible sharing of human
resources across products
 Suited to complex decisions
and unstable environment
 Promote functional and
product skill development
 Best in medium-sized
organizations with multiple
products

 Dual authority cause
confusion
 Need good interpersonal
skills and extensive training
 Time consuming
 Need common
understanding among
participants
 Requires great effort to
maintain power balance

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Sample Matrix Organization

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Horizontal Structure
 Organization around core processes
...

- The culture promotes openness, trust and
collaboration
...

 Often used in rapidly changing environments
 Greater flexibility

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Application of Structural Design
 Each type of structure is applied in different situations and is
intended to meet different needs
...

 Managers must find right balance
 The purpose of the organization chart is to encourage and
direct activities

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

©Richard L
...
Kitiabi ©2016
For use with Organization Theory and Design

by Richard Daft, Jonathan Murphy and Hugh Willmott 1844809900 © 2010 Cengage Learning

The Nature of Leadership
• Leaders make a difference, they are key to
organizational success

• People, influence, and goals
– Relationship with people is not passive
– Leadership is reciprocal among people
– Leadership is the ability to influence people
toward the attainment of goals
For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Contemporary Leadership
• Leadership evolves with the needs of the
organization

• Leadership has evolved with technology,
economic, labor, social and cultural changes
• Must respond to the turbulence and
uncertainty of the environment
–Ethical and economic difficulties as well as
globalization
For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Level 5 Leadership
Level 5 leadership refers to the highest level in
a hierarchy of manager capabilities
– Lack of ego (humility)
– Fierce resolve to do what is best (will)
– Give credit to other people
– Ambitious for the company

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Level 5 Hierarchy

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Servant Leadership
• Transcend self-interest for the good of the
organization

• Leadership is not about YOU
• Workers should be developed
• Servant leaders give away power, ideas,
information, recognition, credit for
accomplishments, even money
For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Authentic Leadership







Leaders who know themselves
Consistent with higher order ethical values
Empower and inspire others
Open and authentic
Inspire trust and authenticity
Encourage collaboration and help others grow
For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Components of Authentic Leadership

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Gender Differences
Derived from studies of women leaders
Minimizing personal ambition
Developing others
Consensual and collaborative; interactive
leadership

Influence derived from relationships
For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Gender Differences in Leadership
Behaviors

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

From Management to Leadership
 Good management is essential to organizations

 But, good managers must be leaders
 Management promotes stability, order, and
problem solving
 Leadership motivates toward changing challenges
 Leadership cannot replace management, there
should be a balance of both
For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Leader and Manager Qualities

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Leadership Traits
• Early research on leadership focused on
traits

• Interest in examining leadership traits has
reemerged
• Some traits that are considered positive can
have negative consequences
• The best leaders understand their traits and
hone their strengths
For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Personal Characteristics of Leaders

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Behavioral Approaches
• Research beyond leadership traits, defined two
leadership behaviors:
– Task-oriented behavior
– People-oriented behavior

• Ohio State studies identified two major behaviors:
– Consideration; people oriented
– Initiating structure; task behavior

• Michigan Studies compared behavior
– Employee-centered leaders (most effective)
– Job-centered leaders (not effective)
For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

The Leadership Grid

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Contingency Approaches
• How do situations influence a leader’s
effectiveness?
– Hersey and Blanchard (situational)
– Leadership Model (Fiedler)
– Substitutes for leadership concept

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

The Situational Model of Leadership
• Extension of behavioral theories
• Focus on characteristics of followers
• Seek appropriate leadership behavior

• Leadership is based on relationship with
followers and readiness level of followers

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

The Situational Model of Leadership

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Fiedler’s Contingency Theory
• Leader’s style is task oriented or
relationship oriented
– Relatively fixed

• Goal is to match the leader’s style with
organizational situation
• Analyze the leaders’ style to the
favorability of the situation
For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

How Leader Style Fits the Situation

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Substitutes for Leadership
 There are situations where
leader style is unimportant
 There are situations and
variables that can substitute or
neutralize leadership
characteristics

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Substitutes and Neutralizers for
Leadership

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Charismatic and Visionary Leadership
• Charismatic leaders are skilled in the art of
visionary leadership
– Vision is an attractive, ideal future

• Inspire and motivate people to do more
– A lofty vision, “ a fire that ignites followers”
– Ability to understand and empathize
– Empowering and trusting subordinates

• Visionary leaders speak to the hearts of
employees to be a part of something big
For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Transformational versus Transactional
Leadership
Transactional
– Clarify tasks
– Initiate structure
– Provide awards
– Improve productivity
– Hardworking
– Tolerant & fair-minded
– Focus on management

Transformational
– Innovative
– Recognize followers’
needs
– Inspire followers
– Create a better
future
– Promote significant
change

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Followership
• Organizations do not exist without followers
• Leaders must understand their followers
– Alienated follower
– Conformist
– Pragmatic survivor
– Passive follower
– Effective follower

• Is the follower active or passive?
For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Styles of Followership

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Power and Influence
• Position Power
– Legitimate Power
– Reward Power
– Coercive Power

• Personal Power
– Expert Power
– Referent Power

• Other Sources of Power
– Personal Effort
– Network of Relationships
– Information
For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning

Both leaders
and followers
use power to
get things
done

Seven Interpersonal
Influence Tactics for Leaders

For use with Organization Theory and Design
by Richard Daft, Jonathan Murphy and Hugh Willmott
1844809900 © 2010 Cengage Learning



---