managerial and organizational stylesf (5)

8/2/2019 Managerial and Organizational StylesF (5)

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Managerial and Organizational

Styles


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Introduction

Managerial and Organizational Styles

External Environment Internal Environment


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Introduction

Environment faced by an Organization

= f( type of org + industry + stage of

development of company + current position in

industry life cycle).

Variation in Environment leads to variation in

managerial styles, especially top

management.


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Differences among people in their approaches

to jobs leads to differentMANAGERIAL

STYLES

Differences in Organizational cultures leads to

differentORGANIZATIONAL STYLES


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Managerial Process Approach

Functions of managers The functions of managers describe their managerialwork and hence style of working

1. Planning

2. Organizing

3. Supervising

4. Coordinating

5. Controlling

6. Communicating

7. Investigating

8. Evaluating

9. Decision making

10. Staffing

11. Representing

12. Negotiating

Top management

Middle management


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Managerial Working Roles Approach


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Demand, Constraint and Choice

Demands Examples

What Has to be done

Job Description

A must for the Job

Meeting minimum

performance criteriaBureaucratic Procedures

to be followed

Meetings that must beattended

Manager must work withcertain group of people


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Constraints Examples

The Factors (internal or

external) which limit whatmanager can do.

Resource Limitations

Legal constraintsPhysical Location

Work constraints

Attitudes of people


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Choices Examples

.The activities that themanager can, but notnecessarily has to do.Opportunities for one

manager to do things indifferent ways

Choices as to how thework is done

Choice as to what work is

done

Boundary managementDelegation of work

Develop a personal

domain


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Individual Managerial Styles

Degree of Subordinate concern

Shotgun, Tactician and Bystander Managers

Managerial Style under competition Strategic stances and Their Managerial Styles


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Degree of Subordinate Concern


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Degree of Subordinate

Concern depends on

Forces in Manager

Value system

Confidence in SubordinatesLeadership Qualities

Forces in Sub-ordinates

Need for Independence

Tolerance for ambiguityInterest in Problem

Forces in the Situation

Type of organization

Nature of problemPressure of time


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Shotgun, Tactician and By Stander

Managers (brichas)

Managerial Influenceapproach

Example

1 Reason Explaining the reason for a request

2 Coalition Obtaining the support of co-workers toback up request

3 Ingratiation Acting very humble while making arequest

4 Bargaining Offering an exchange

5 Assertiveness Demanding that someone do what isdesired

6 Higher authority Obtaining the Informal Support of higherups

7 Sanctions Threatening to give an unsatisfactoryerformance evaluation


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Those who use all seven approaches with highfrequency - Shotgun Managers

Those who use wide range of influence

approaches but only one with High frequency Tactician Managers

Those who use all of the influence approaches

with relatively low frequency By StanderManager


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Managerial Style under Competition

Extent of Decision Sharing depends on degree

of competition prevalent

Under Normal Competitive situation Top

management shares decision in areas of

finance , R&D , marketing etc.

Under Highly Competitive Situations

Decision sharing is more selective.


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Strategic Stances and their Managerial Styles

Managers should be chosen according to the

Strategy Followedby the company i.e. the

BEST fit according to needs.


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General Management Requirements for various

strategic situations

Situation Major Job Thrusts Ideal Characteristics

Start up -Creating Vision ofBusiness

-Establish corecompetency

A-doer

Visionary

Team builderEnergetic

Turnaround -Rapid, accurateproblem diagnosis

-Fixing long termproblems

Strong Leader TakingCharge

Strong analytical skillsRisk taker

ExtractProfit/Rationalizeexisting Business

-Sensing signs ofchange

-Succession

-Stability

Technicallyknowledgeable

Strong Relationship

Orientation


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Continued..

Situation Major Job Thrusts Ideal Characteristics

Dynamic Growth InExisting Business

-Increasing Marketshare

-Managing Rapidchange

-Vision of future

-Excellent StrategicPlanning Skills

-Good CrisisManagement Skills

Redeployment ofEfforts in existing

business

-Managing change

-Be effective in

concerned businesssphere

-Highly persuasive

-Moderate Risk taker

Good Executing skills

Liquidation/Divestitureof poorly performing

business

-Cutting Losses

-Making toughDecision

Making Best deal

-Tough Minded

-Cost/benefit analyzer

-Risk taker


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Situation Major Job thrust IdealCharacteristics

New acquisitions -Integration

-Establishingsources of

Information andcontrol

-Analytical Ability

-Relationshipbuilding Skills

-InterpersonalInfluence

-GoodCommunicationskills


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Organizational Styles

Managerial Styles coalesce at top

management level to form an organizational

style.

It can also stem from rigid values and beliefs

held by company as a whole.


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Four broad types of styles

Power oriented : Organization attempts to

dominate and control its environment both

internal and external.

Role oriented : Organization is rational and

orderly. Concerned with legality, legitimacy

and responsibility.


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Continued..

Task oriented : Everything including structure,

functions and activities are all directed

towards one goal e.g. profit.

Person oriented : Organization exists to serve

the needs of members and be useful to its

members.


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Types of Organizational styles

The Office of the President.

Strategy related styles

Organizational Culture dependant


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The Office of the President

Responsibility and authority are shared by a

number of coequal members.

Absence of one member gives legal authority

to others.

Prime functions are equally allocated among

those members


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Usual Structure

Chief ExecutiveOffice

Chief FinancialOfficer

Chief MarketingOfficer

Chief OperatingOfficer


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Objectives of this style

Provide greater amount of total work time for

top level executives for external affairs, future

planning and resource allocation.

Speed up decision process and provide

organizational flexibility.


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Strategy Related Styles

Styles based on firms growth and competitive strategy.

Miles & Snows typology

Prospectors

Defenders

Analyzers

Reactors


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Prospectors

Aggressive in new product development

First mover

High expenditures in new product R&D

Often found in technology-oriented industries

Customer segments often not well defined

Relatively inefficient in terms of cost-per-unit

Often cash hungry


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Defenders

Focus on maintaining position

may entail aggressive marketing efforts

Typically found in mature markets (grocery,

soft drinks, etc.)

Single core technology

Extensive division of labor

Narrow and Stable product market domain.


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Analyzers

Elements of both prospectors and defenders

Focus on maintaining position in core markets

Selective pursuit of new product opportunities Planning is intensive and comprehensive


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Reactors

Management fails to establish any viable

organizational strategy.

Irrelevant organizational structures.

Reactive decision making


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Organizational Culture Dependent

TheoryA(merican)

Theory

J(apanese)

Theory Z-TheAmerican Ideal

Employment Term Short Primarily Lifetime for males Long

Decision Making Individual byManagers

Consensusamong many

Consensusamong many

Responsibility Resides in theindividual

Held Collectivelyby many

Resides in theindividual


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Theory A(merican) Theory

J(apanese)

Theory Z-TheAmerican Ideal

Evaluation andpromotion

Rapid and basedon performance

Slow and basedon loyalty

Slow and basedon loyalty

Control system Formally stated

and Written down

Informal and not

explicitly stated

Informal but with

explicit measures

Career Path Within aspecialized area

Movementthrough manyareas

Less specializedthan in theory A

Breadth ofSupervisoryConcern

Segmented andfocused onperformance only

The whole personand all aspects oflife.

The whole personand all aspects oflife, includingfamily.


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Four Corporate Culture types

Title Description

The tough guy, macho culture World of individuals who take high risk and getquick feedback on their actions.

The work hard/play hard culture Fun and action both. Employees take few risks,all with quick feedback ;to succeed.

The bet your company culture Cultures with big-stakes decisions. A high risk,slow feedback environment

The process Culture Process oriented. Rigid. No feedback for what is doneby employees and they find it hard to measure what

they do. Bureaucracy


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Organizational Life Cycles

Companies at different stages face different

competitive conditions in their markets and

require different approaches to deal with

them

Hence we see the life cycle of organization

1. The Three Stage Model (by B.R.Scott)

2. The Five Stage Model (by Greiner)


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The Three Stage Model

Stage I requires

Single Guiding Executive

Short term thinking for execution

Stage II requires

Team workers

Functional Specialization

Stage III requires

Overall Corporate Planning

Broad management abilities in diversification.

Characteristics Stage I Company (Small Stage II Company Stage III Company


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Company) (Integrated Company) (Diversified Company)

Product line Single Single Multiple

Distribution One channel/set of channel One set of channel Multiple

OrganizationStructure

Formal, one man show Specialization based onfunctional areas

Specializations based onmarket and product

R&D Not institutionalized. Guided

by owner

Institutionalized search for

products and processes.

Institutionalized search for

products and processes.

Performancemeasure

Personal and Subjective Impersonal andtechnical/cost criteria

Impersonal, uses marketshare, ROI etc

Rewards Unsystematic Systematic, with emphasis

on stability

Systematic, performance

based

Control

System

Personal control of strategic

decisions

Personal control of

strategic decisions

Indirect control based on

analysis of return

Operating

decisions

Personal control Delegation Delegation across markets

Strategic

Choices

Needs of owner vs. needs of

company

Degree of integration,

market share objectives,

breadth of product line

Entry and exit from industries,

allocation of resources by

industries, rate of growth.


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The Five Stage Model

Greiner developed a life-cycle model of growth, proposing thatorganizations pass through five stages, and that each stage

ends in a crisis.

To advance from one stage to the next, an organization mustsuccessfully manage and solve the problem associated with

each crisis.


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Age of organization

Young Mature

Large

Small

Stage 1 Stage 2 Stage 3 Stage 4 Stage 5

1. Crisis of

leadership

2. Crisis of

autonomy

3. Crisis of

control

4. Crisis of

red tape

5. Crisis of ?

1. Growth through

creativity

2. Growth through

direction

3. Growth throughdelegation

4. Growth through

coordination

5. Growth through

collaboration

Size

oforganization

Existence Survival Success

Di

Success

th

Take off Resource maturity


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Disengagem

ent

growth

Management

StylesDirect Supervised Functional Functional Divisional Line and Staff

Organization

Extent of

formalityMinimal Minimal Basic Developing Maturing Extensive

Major

Strategy

Existence Survival Profit

maintenan

ce

Get

resources

for growth

Growth ROI

Business and

Owner

managerial and organizational stylesf (5)

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