Global Management: Chapter 11: Leading and Leadership Development The...

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Global Management: Chapter 11: Leading and Leadership Development The Late Grace Hopper: Managers need to spend time dealing with the status quo and focus more on “fighting out what needs to be changed” “The present moment is the domain of managers. The future is the domain of leaders” Expert power: is the capacity to influence other people because of specialized knowledge Referent Power: is the capacity to influence other people because of their desire to identify personally with you Leadership and Vision: Great leaders get extraordinary things done in organizations by inspiring and motivating others toward a common purpose

Transcript of Global Management: Chapter 11: Leading and Leadership Development The...

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Global Management:

Chapter 11: Leading and Leadership Development

The Late Grace Hopper:

Managers need to spend time dealing with the status quo and focus more on “fighting out

what needs to be changed”

“The present moment is the domain of managers. The future is the domain of leaders”

Leaders become great by bringing out the best in people

Leaders are expected to focus on long term goals while dealing with short term ones

The Nature of Leadership

Leadership: the process of inspiring others to work hard to accomplish important tasks

Leadership is one of the most popular management topics

Leading (to inspire the effort) : communicate the vision, build enthusiasm, motivate

commitment hard work

Leadership and Power:

Leadership essentially begins with the ways a manager uses power to influence the

behavior of other people

Power: ability to get someone else to do something you want done or to make things

happen the way you want

Power of Position:

Reward Power: is the capacity to offer something of value as a means of influencing

other people

Coercive power: the capacity to punish or withhold positive outcomes as a means of

influencing other people

Legitimate Power: the capacity to influence other people by virtue of formal authority or

the rights of office

Personal Power:

Expert power: is the capacity to influence other people because of specialized knowledge

Referent Power: is the capacity to influence other people because of their desire to

identify personally with you

Leadership and Vision:

Great leaders get extraordinary things done in organizations by inspiring and motivating

others toward a common purpose

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Successful leadership is associated with a vision: a clear sense of the future

Are able to turn vision into accomplishment

Visionary Leadership: brings to the situation a clear sense of the future and an

understanding of how to get there

Lorraine Monroe Leadership Institute: “to develop and support public school leaders who

view solid education as a necessity of transforming children’s lives and who are

committed to leading consistently high achieving schools where all students, beginning

with kindergarten, are prepared to enter and graduate from college”

There leadership is backed up by the statement, “we can reform society only if every

place we live, every school, workplace, church and family becomes a site of reform”

Leadership as Service:

Servant leadership: is follower-centered and committed to helping others in their work

Empowerment: enables others to gain and use decision making power

Servant leaders empower others by providing them with the information, responsibility,

authority and trust to make decisions and act independently

“institutions function better when the idea, the dream, is the fore, and the person, the

leader is seen as servant to the dream

Leadership Traits and Behaviours:

Leadership Traits:

Physical characteristics such as a person’s height, weights and physique make no

difference in determining leadership success

A comprehensive review by Shelley Kirkpatrick and Edwin Locke indentifies these

personal traits of many successful leaders

Drive: successful leaders have high energy, display initiative and are tenacious

Self confidence: successful leaders trust themselves and have confidence in their abilities

Creativity: successful leaders are creative and original in their thinking

Cognitive ability: successful leaders have the intelligence to integrate and interpret

information

Job-relevant knowledge: successful leaders know their industry and its technical

foundations

Motivation: successful leaders enjoy influencing others to achieve share goals

Flexibility: successful leaders adapt to fit the needs of followers and the demands of

situations

Honesty and integrity: successful leaders are trustworthy’ they are honest, predictable

and dependable

Leadership Behaviors:

Leadership style: is the recurring pattern of behaviors exhibited by a leader

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A study by the University of Michigan focused attention on two dimensions of leadership

style: concern for the task to be accomplished and concern for the people doing the work

A leader high in concern for the ask plans and defines the work to be done, assigns task

responsibilities, sets clear work standards, urges task completion, and monitors

performance results

A leader high in concern for people acts warm and supportive toward followers,

maintains good social relations with them, respects their feelings, is sensitive to their

needs, and shows trust in them

Effective leaders were high in both concerns for people and concerns for task

Classic Leadership Styles:

Autocratic style: a leader with this style acts in a unilateral, command and control fashion

Human relations style: a leader who emphasizes people over task

Laissez-faire style: a leader who displays a do the best you can and don’t bother me

attitude

Democratic style: a leader who emphasizes both tasks and people

Contingency approaches to leadership

Fiedler’s Contingency Model:

An early contingency leadership model was developed by Fred Fiedler, he proposed that good

leadership depends on a match between leadership style and situational demands.

Understanding Leadership Style

Fiedler believes that the key to leadership success is putting our existing styles to work in

situations for which they are the best fit

Can be either a task motivated worker or a relationship motivated worker

The either/or concept is important

Understanding Leadership Situations:

In Fiedler’s model, the amount of control a situation allows the leader is a critical issue in

determining the correct style situation fit

Three contingency variables are used to diagnose situational control: quality of leader

member relations good or poor) measures the degree to which the group supports the

leader. The degree of task structure (high or low) measures the extent to which task

goals, procedures, and guidelines are clearly spelled out. The amount of position power

(strong or weak) measures the degree to which the position gives the leader power to

reward and punish subordinates

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Matching Leadership style and situation:

In Fiedler’s research, neither the task oriented nor the relationship oriented leadership

style proved effective all the time

Proposition 1: a task oriented leader will be most successful in either very favourable

(high control) or very unfavourable (low control) situation

Proposition 2: a relationship oriented leader will be most successful in situations of

moderate control

Hersey- Balanced Situational Leadership Model:

Hersey Blanchard situational leadership model suggests that successful leaders do adjust

their styles

The possible combinations of task oriented and relationship oriented behaviors result in

four leadership styles (listed below)

Delegating: allowing the group to take responsibility for task decisions; a low task, low

relationship style

Participating: emphasizing shared ideas and participative decisions on task directions; a

low-task, high relationship style

Selling: explain task directions in a supportive and persuasive way; a high task, high

relationship style

Telling: giving specific task directions and closely supervising work; a high task, low

relationship style

The delegating style works best in high readiness situations with able and willing, or

confident followers. The telling style works best at the other extreme of low readiness,

where followers are unable and unwilling, or insecure. The participating style is

recommended for low to moderate readiness followers- able but unwilling, or insecure,

the selling style is for moderate to high readiness followers- unable, but willing or

confident

Leadership styles should be adjusted as followers change over time

Path-Goal Leadership Theory:

Third contingency leadership approach advanced by Robert House

This theory suggests that an effective leader is one who clarifies paths by which followers

can achieve both task related and personal goals

Path-goal theorists believe leaders should shift back and forth among these four

leadership styles to create positive path-goal linkages

Directive leadership: letting subordinates know what is expected; giving directions on

what do and how; scheduling work to be done; maintaining definite standards or

performance; clarifying the leader’s role in the group

Supportive leadership: doing things to make work more pleasant; treating group

members as equals; being friendly and approachable; showing concern for the well being

of subordinates.

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Achievement oriented leadership: setting challenging goals; expecting the highest levels

of performance; emphasizing continuous improvement in performance; displaying

confidence in meeting high standards

Participative leadership: involving subordinates in decision making; consulting with

subordinates; asking for suggestions from subordinates; using these suggestions when

making a decision

Path Goal Contingencies:

Follower Contingencies: ability, experience, locus of control

Leader styles: directive, supportive, participative, achievement oriented

Environmental contingencies: task structure, authority system, work group

Leader effectiveness

Substitutes for Leadership:

Substitutes for leadership: are factors in the work setting that direct work efforts

without the involvement of a leader

Possible substitutes include: ability, experience and independence; task characteristics

such as routineness and the availability of feedback; and organizational characteristics

such as a clarity of plans and formalization of rules and procedures

Leader Member Exchange Theory:

Not everyone is treated the same by the leader

People “in the group” get more and better tasks, people outside the group don’t

The premise underlying leader-member exchange theory is that, as a leader and follower

interact over time, their exchanges end up defining the follower’s rule

Leader Participation Model:

The Vroom-Jago leader-participation model indicates that leadership success results

when the decision making method used by a leader best fits the problem being faced

Leaders choice fall into three category: (stated below)

Authority decision: is made by the leader and then communicated to the group

Consultative decision: is made by a leader after receiving information, advice or

opinions from group members

Group decision: is made by group members themselves

The Vroom Jago model specifies that the leader’s choice among the decision making

method is governed by three rules: 1) decision quality (based on information needed for

problem solving) 2) decision acceptance 3) decision time

Consultative and group decisions work best when:

- the leaders lacks sufficient expertise and information to solve the problem alone

- the problem is unclear and help is needed to clarify situation

- acceptance of the decision and commitment by others are necessary for implementation

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- adequate time is available to allow for true participation

Issues in Leadership Development:

Charismatic leaders: develops special leader- follower relationships and inspires

followers in extraordinary ways

Transformational Leadership:

Leadership scholars James MacGregor Burns and Bernard Bass suggest that the research

and models discussed so far tend toward transactional leadership: uses tasks, rewards,

and structures to influence and direct the efforts of others

Burns sees the analytical approach in which transactional leaders change styles, adjust

tasks and allocate rewards to achieve positive influence

Transformational leadership: is inspirational and arouses extraordinary effort and

performance

Transformational leadership qualities include the following:

Vision: having ideas and a clear sense of direction; communicating these to others;

developing excitement about accomplishing shared dreams

Charisma: using the power of personal reference and emotion to arouse others

enthusiasm faith, loyalty, pride and trust in themselves

Symbolism: identifying heroes and holding spontaneous and planned ceremonies to

celebrate excellence and high achievement

Empowerment: helping others develop by removing performance obstacles, sharing

responsibilities and delegating truly challenging work

Intellectual stimulation: gaining the involvement of others by creating awareness of

problems and stirring their imaginations

Integrity: being honest and credible, acting consistently out of personal conviction, and

following through on commitments

Emotional Intelligence and Leadership:

Emotional Intelligence: is the ability to manage our emotions in social relationships

“the ability to manage ourselves and our relationships effectively” Daniel Goleman

Goleman believes that emotional intelligence skills can be learned

A leader strong in emotional intelligence possesses self-awareness

The emotionally intelligent leader is good at self-management or self-regulation (think

before doing something)

Emotional intelligence in leadership involves motivation in being able to work hard with

persistence and for reasons other than money and status. Leaders with emotional

intelligence display social awareness or empathy.

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Gender and Leadership:

Gender similarities hypothesis: holds that males and females have similar

psychological properties

Women are expected to be nourishing while men are seen as the “take charge”

Interactive leadership: leaders are strong communications and act in a democratic and

participative manner with followers

Moral Leadership:

Moral leadership: is always good and right by ethical standards

Moral leadership begins with personal integrity, a concept to the notion of

transformational leadership

Integrity: in leadership is honesty, credibility and consistency in putting values into

action

Integrity earns the trust of followers

Authentic leadership: activates positive psychological states to achieve self-awareness

and positive self-regulation

Fred Luthans believes that authentic leadership is activated by the positive psychological

states of confidence, hope, optimism and resilience

Drucker’s “Old fashioned” Leadership

Peter Druccker looks at “good-old fashioned” look at the plain hard work it takes to be

successful leader

Believes that leadership is work

Effective leadership is defining and establishing a sense of mission, a good leader sets

goals, priorities and standards

Scholar and consultant Jay Conger says that many managers “confuse persuasion with

taking bold stands and aggressive arguing”

Credible communication: earns trust, respect and integrity in the eyes of others

Easier to get people to do things for you when they trust you

Communication Barriers:

Poor Choice Channels:

Communication channel: is the pathway through which a message moves from sender

to receiver

Poor Written or Oral Expression:

Be prepared, set the right tone, sequence points, support your points, accent the

presentation, add the right amount of polish, check your technology, don’t bet on the

internet, be professional

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Failure to recognize Nonverbal signs:

Nonverbal communication: takes place through gestures and body language

Mixed message: results when words communicate one message while action, body

language, or appearance communicate something else

Physical Distractions:

Status Effects:

Filtering: is the intentional distortion of information to make it appear most favourable

to the recipient

Information filtering is often found in communications between lower and higher levels

in organizations

Hierarchy of authority in organizations creates another potential barrier to effective

communications (not being able to criticize the boss)

Improving Communication

Active Listening:

Active listening: helps the source of a message say what he or she really means

Listen for message content, listen for feelings, respond to feelings, note all cues,

paraphrase and restate

Constructive feedback:

Feedback: is the process of telling someone else how you fell about something that

person did or said

Give feedback directly and with real feeling, make sure that feedback is specific rather

than general, give feedback at the acceptable time, make sure it is valid and is given in

small doses

Space Design:

Proxemics: involves the use of space in communication

Physical layout of an office or room is a form of nonverbal communication

Channel Selection:

People communicate with one another using a variety of channels that vary in channel

richness: is the capacity of a communication channel to effectively carry information

Communications such as written reports, memos, and text messages are very low in

richness because of impersonal, one-way interaction with limited opportunity for

feedback.

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(low richness) <- postings, e-bulletins, reports / memos, letters / email, text messages, voice

mail / telephone, instant messaging / face to face meetings, video conferences -> (high

richness)

Electronic Communication:

People tend to forget the formal way of typing up a business letter or things of that sort

when using electronic communication. They use slang, and shorten various points.

Tips on managing email:

Read items only once

Take action immediately to answer, move to folders or delete

Purge folders regularly of useless messages

Send group mail and use “reply to all” only when really necessary

Get off distribution lists that are without value to your work

Send short message in the subject line, avoiding a full text message

Put large files on websites instead of sending them as attachments

Use instant messaging as en email alternative

Don’t forget the basic rue of email privacy; there isn’t any

Electronic grapevines: use electronic media to pass messages and information among

members of social networks

Interactive Management:

Management by wandering around (MBWA): managers spend time outside their

offices to meet and talk with workers at all levels

Interactive management also takes many electronic forms- including online discussion

forums, chat rooms, electronic office hours, executive blogs, and video conferencing

When executives suspect that they are having communication problems, communication

consultants can be hired to conduct interviews and surveys of employees on their behalf

Cross cultural communication:

Hard to communicate without having a mutual language to speak from

Sample culture variations in nonverbal communications:

- Eye movements (oculesics): Chines and Japanese may only show anger in their eyes,

a point often missed by westerners

- Touching (haptics): Asian cultures typically dislike touching behaviours; Latin

cultures tend to use them in communicating

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- Body motions (kinesics): gestures, shrugs and blushes can mean different things;

“thumbs up” means “A-OK” in North America, but is vulgar in the Middle East

Ethnocentrism: is the tendency to consider one’s culture superior to any and all others

Chapter 5 (Entrepreneurship and Small Business Management):

People with innovative ideas for a business:

Don’t always get the chance to turn into reality

The nature of Entrepreneurship:

Entrepreneurship: is risk taking behaviour that results in new opportunities

Who are the entrepreneurs?

Entrepreneur: is willing to pursue opportunities in situations others view as problems or

threats

Characteristics of Entrepreneurs:

Internal locus of control: Entrepreneurs believe that they are in control of their own

destiny; they are self-directing and like autonomy

High energy level: Entrepreneurs are persistent, hardworking and willing to exert

extraordinary efforts to succeed

High need for achievement: Entrepreneurs are motivated to accomplish challenging

goals; they thrive on performance feedback

Tolerance of ambiguity: Entrepreneurs are risk takers; they tolerate situations with high

degrees of uncertainty

Self-confidence: Entrepreneurs feel competent, believe in themselves and are willing to

make decisions

Passion and action orientation: Entrepreneurs try to act ahead of problems; they want to

get things done and not waste valuable time

Self-reliance and desire for independence: Entrepreneurs want independence; they are

self-reliant; they want to be their own bosses, not work for others

Flexibility: Entrepreneurs are willing to admit problems and errors and are willing to

change a course of action when plans aren’t working

Diversity and Entrepreneurship:

Necessity-based entrepreneurship: takes place because other employment options don’t

exist.

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They offer women and members of visible minorities opportunities to strike out on their

own and gain economic independence, providing a pathway for career success that may

be blocked otherwise

Entrepreneurship and Small Business:

Small business: has fewer than 100 employees, is independently owned and operated

and does not dominate its industry

Smaller businesses are prevalent in the service and retailing secotrs of the economy.

Higher cost of entry make them less common in other industries, such as manufacturing

and transportation

How to get started:

Motivations to start a business: wanting to be your own boss and control your future,

going to work for a family-owned business and seeking to fulfill a dream

Common ways to get started is to buy an existing one or buy and run a franchise: is a

form of business where one business owner sells to another the right to operate the same

business in another location

Internet Entrepreneurship:

You can do less work to earn a higher profit

Family Businesses:

Family businesses: is owned and controlled by members of a family

Small businesses must also: meet challenges of strategy, competitive advantage and

operational excellence

Family business fraud: occurs when family members have major disagreements over

how the business should be run

Succession problem: is a the issue of who will run the business when the current head

leaves

Succession plan: describes how the leadership transition and related financial matters

will be handled

How Many Small Businesses Fail:

Lack of Experience: not having sufficient know-how to run a business in the chosen

market or area

Lack of expertise: not having expertise in the essentials of business operations, including

finance, purchasing, selling and production

Lack of strategy and strategic leadership: not taking the time to craft a vision and

mission, nor to formulate and properly implement a strategy

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Poor financial control: not keeping track of the numbers, and failure to control business

finances

Growing too fast: not taking the time to consolidate a position, fine-tune the organization

and systematically meet the challenges of growth

Insufficient commitment: not devoting enough time to the requirements of running a

competitive business

Ethical failure: falling prey to the temptations of fraud, deception and embezzlement

New Venture Creation:

When your interest is low-tech or high-tech, on-line or off-line, opportunities for new

ventures are always there for the true entrepreneur. To pursue entrepreneurship and start a

new business, you need good ideas and the courage to give them a chance.

First-mover advantage: comes from being first to exploit a niche or enter a market

Life Cycles of Entrepreneurial Firms:

The firm begins with the birth stage: where the entrepreneur struggles to get the new

venture established and survive long enough to test the viability of the underlying

business model in the marketplace. The firm then passes into the breakthrough stage:

where the business model begins to work well, growth is experienced, and the complexity

of managing the business operation expands significantly. Next comes the maturity stage:

where the entrepreneur experiences the advantages of market success and financial

stability, while also facing the continuing management challenge of remaining

competitive in the changing environment.

Writing the Business Plan:

Business Plan: describes the direction for a new business and the financing needed to

operate it

Banks and other financiers want to see a business plan before they loan money or invest

in a new venture; senior managers want to see a business plan before they allocate scarce

organizational resources to support a new entrepreneurial project

What to include a business plan:

-executive summary: overview of the business purpose and highlight of key elements of

the plan

-Industry analysis: nature of the industry, including economic trends, important legal or

regulatory issues, and potential risks

-Company description: mission, owners and legal form

-Products and services description: major goods or services, with competitive uniqueness

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-Market description: size of market, competitor strengths and weaknesses, five year sales

goals

-Marketing strategy: product characteristics, distribution, promotion, pricing and market

research

-Operations description: manufacturing or service methods, supplies and suppliers and

control procedures

-Staffing description: management and staffing skills needed and available, compensation

and human resource systems

-Financial projection: cash flow projections for one to five years, break even points, and

phased investment capital

-Capital needs: amount of funds needed to run the business, amount available and

amount requested from new sources

-Milestones: a timetable of dates showing when key stages of the new venture will be

completed

Choosing the Form of Ownership:

Sole proprietorship: is a form of business where an individual pursues a profit

Partnership: is a form of business where two or more people agree to contribute

resources to start and operate a business together

Corporation: is a legal entity that exists separately from its owners

Limited liability corporation: is a hybrid business form combining advantages of the

sole proprietorship, partnership and corporation

Financing the New Venture:

Debt financing: involves borrowing money that must be repaid over time, with interest

Equity financing: involves exchanging ownership shares for outside investment monies

Equity financing is usually obtained from venture capitalists: make large investments in

new ventures in return for an equity stake in the business

The hope is that a fast-growing firm will gain a solid market base and either be sold at a

profit to another firm or become a candidate for an initial public offering: or IPO, is an

initial selling of shares of stock to the public at large

When large amounts of venture capital aren’t available to the entrepreneur, another

important financing option is the angel investor: is a wealthy individual willing to invest

in a new venture in return for equity in a new venture

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Chapter 8 (Organization Structures and Design)

Management Scholar and Consultant:

Henry Mintzberg points out that, as organizations change rapidly in today’s world, people

within them are struggling to find their places

Mintzberg questions: “what parts connect to one another?” “How should processes and

people come together?” “Whose ideas have to flow where?”

Organizing as a Management Function:

Organizing: arranges people an resources to work toward a goal

- Organizing: divide up the work, arrange resources, coordinate activities

- Controlling: to ensure results

- Leading: to inspire effort

- Planning: to set the direction

What is Organization Structure?

Organization Structure: is a system of tasks, reporting relationships and

communication linkages

Any structure should both allocate tasks through a division a labour and provide for the

coordination of performance results. A structure that does both of these things well is an

important asset, helping to implement an organization’s strategy

Formal Structures:

The concept of structure best in the form of an organization chart: describes the

arrangement of work positions within an organization

Formal Structure: is the official structure of the organization

The basic of an organization’s formal structure, includes:

-Division of work: Positions and titles show work responsibilities

-Supervisory relationships: Lines show who reports to whom

-Communication channels: Lines show formal communication flows

-Major subunits: Positions reporting to a common manager are shown

-Levels of management: Vertical layers of management are shown

Informal Structures:

Informal Structure: set of unofficial relationships among an organization’s members

(coffee, dates)

Social network analysis: identifies the informal structures and their embedded social

relationships that are active in an organization

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Informal structures can be susceptible to rumour, carry inaccurate information, breed

resistance to change, and even divert work efforts from important objectives

Traditional Organization Structures

Given the division of labour, however, decisions must be made regarding

Departmentalization: process of grouping people and jobs into work units

These decisions have traditionally resulted in three major types of organizational

structures; functional, divisional and matrix structures

Functional Structures:

Functional structures: groups together people with similar skills who perform similar

tasks

Members of functional departments share technical expertise, interests and

responsibilities

Advantages of Functional Structures:

Economics of scale with efficient use of resources

Task assignments consistent with expertise and training

High-quality technical problem solving

In-depth training and skill development within functions

Clear career paths within functions

Disadvantages of Functional Structures:

Problems include difficulties in pinpointing responsibilities for things like cost

containment, product or service quality, and innovation

Functional chimneys problem: lack of communication and coordination across

functions

Divisional Structures:

Divisional structure: groups together people working on the same product, in the same

area, with similar customers or on the same processes

Divisional structures are common in complex organization with diverse operations that

extend across many products, territories, customers and work processes

Product Structures:

Product structure: groups together people and jobs focused on a single product or

service

They clearly identify costs, profits, problems and successes in a market area with a

central point of accountability

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Geographical Structures:

Geographical structure: groups together people and jobs performed in the same

location

They are typically used when there is a need to differentiate products or services in

various locations, such as in different parts of a country

They are also quite common to international operations, where they help focus attention

on the unique cultures and requirements of particular regions

Customer Structures:

Customer structures: groups together people and jobs that serve the same customers or

clients

The goal is to best serve the special needs of the different customer groups

Process Structures:

Work process: is a group of related tasks that collectively creates a valuable work

product (order fulfillment by catalogue)

Process structure: groups jobs and activities that are part of the same processes

Advantages/ Disadvantages of Divisional Structures:

Advantages:

More flexibility in responding to environmental changes

Improved coordination across functional departments

Clear points of responsibility for product or service delivery

Expertise focused on specific customers, products, and regions

Greater ease in changing size by adding or closing down divisions

Disadvantages:

Can reduce economies of scale and increase costs through the duplication of resources

and efforts across divisions

Can create unhealthy rivalries as divisions compete for resources and top management

attentions and emphasize division needs to the detriment of the goals of the organization

as a whole

Matrix Structures:

Matrix structure: combines functional and divisional approaches to emphasize project

or program teams

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In effect, it is an attempt to gain the advantages and minimize the disadvantages for each.

This is accomplished in the matrix by using permanent teams that cut across functions to

support specific products, projects or programs

Workers in a matrix structure belong to at least two formal groups at the same time – a

functional group and a product, program or project team. They also report to two bosses –

one within the function and the other within the team

The matrix organization has gained a strong foothold in the workplace, with applications

in diverse setting as manufacturing (e.g aerospace, electronics, pharmaceuticals), service

industries (e.g banking, brokerage, retailing), professional fields (e.g accounting,

advertising, law), and the non-profit sector (e.g municipal, provincial and federal

agencies, hospitals and universities

Advantages of Matrix Structures:

Better cooperation across function

Improved decision making; problem solving takes place at the team level where the best

information is available

Increased flexibility in adding, removing or changing operations to meet caning demands

Better customer service; there is always a program, product, or project manager informed

and available to answer questions

Better performance accountability through the program, product or project managers

Improved strategic management; top managers are freed from lower level problem

solving to focus more time on strategic issues

Disadvantages of Matrix Structures:

The two boss system is susceptible to power struggles, as functional supervisors and team

leaders vie with one another to exercise authority

The two boss can also be frustrating if it creates task confusion and conflicting work

priorities

Team meetings in the matrix can take lots of time, and the teams may develop “groupitis”

Horizontal Organization Structures:

Matrix structure is one part of a broader movement toward more horizontal structures that

try to improve communication and flexibility by decreasing hierarchy, increasing

empowerment, and better mobilizing human talents

Team Structures:

Team structure: uses permanent and temporary cross-functional teams to improve

lateral relations

Cross functional team: brings together members from different functional departments

Project teams: are convene for a particular task or project and disband once it is

completed

Page 18: Global Management: Chapter 11: Leading and Leadership Development The …s3.amazonaws.com/prealliance_oneclass_sample/lz68wD6vyz.pdf · 2013-12-23 · The premise underlying leader-member