CHAP: Leading & Leadership Development môn Principles of Management | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

CHAP: LEADING & LEADERSHIP DEVELOPMENT
Power in leadership allows managers to help their teams reach common goals.
There are many types of power they may have, depending on their role,
personality and experience. Exploring each type can help you learn about
your current or potential management approach so you feel equipped to
educate, encourage and persuade your team.
In this article, we define leadership power, share details about nine common
types and explain the importance of understanding the types of power in leadership
What is leadership power?
Leadership power is the influence that leaders have over their followers. It
persuades others to support the leader's efforts and do as they ask. Influence
is essential to leadership because it helps them establish relationships with
their teams and maintain authority, which is the right to exercise power.
Managers have authority because of their position in the workplace. A team
member can also have power if they're well-liked by their colleagues or have
specific knowledge or skills that can contribute to the success of their team or
the organization. While a team member may not have the authority of a
manager, colleagues follow those with leadership power because of their respect for them.
9 types of power in leadership
A leader inspires others to act, and leadership power allows them to influence
their teams. Good leaders possess a type of power that encourages self-
improvement and team building and promotes a positive work culture. Here
are nine common types of power in leadership: 1. Legitimate power
Legitimate power is the result of hierarchy in an organization. Leaders with
legitimate power can influence employees because their position dictates it.
An example of legitimate power is military rank. All lower-ranking members
abide by the direction of their commanding ofÏcer and other high-ranking
ofÏcials. This structure helps maintain organization and ensures everyone works toward the same goals.
You may gain legitimate power in an organization by showing you have the
experience and skills to lead a team effectively. You can do this by working in
an assistant management role or taking on duties outside your usual
responsibilities. Managers can use legitimate power together with other types
of power to be successful leaders. 2. Coercive power
Coercive power is the power someone gains through threat or force. For
example, a higher-ranking manager forcing a lower-ranking employee to
perform tasks or face disciplinary action is a coercive leader. Managers can
use this type of power positively, such as when they use discipline when a
team member breaks rules to help them correct their behavior and improve their productivity.
There are two types of coercive power. Direct coercive power involves
expressing to team members your expectations and what the consequences
may be if they don't meet them. Managers practice indirect coercive power
when their management style leads teams to assume they may receive
punishment if they do or don't do certain tasks. Ethical leaders typically use
coercive power only when necessary. 3. Referent power
Referent power is the power that role models hold. It occurs when a leader
has strong interpersonal skills, so others follow them because they find the
leader inspiring. For example, an employee who wants to resolve a conflict
refers to what his mentor might do and follows that model to resolve the issue.
This power is not one that a leader can bestow on themselves, as those who
admire the leader designate them as a role model. Develop your interpersonal
skills by taking an interest in others. Listen when they speak and respond
appropriately. Well-liked people inspire loyalty and a willingness to work
together by building trust with their teams. 4. Charismatic power
Charisma is the nature of attractiveness or charm that compels others to
follow someone. Charismatic power inspires positivity and joyful feelings in
others. The persuasive nature of this power is reliant on the engaging quality
of the leader's personality. This power does not have a structured approach
with explicit skills or refined leadership qualities but relies on an established,
well-rounded leadership style that can inspire great change.
Charisma is a natural byproduct of an outgoing personality. People often find
others charismatic when they consider their interest in others to be genuine.
You can learn to be charismatic by developing confidence in your unique
abilities and using them to help others. You can exercise charismatic power
when connecting with people one-on-one or in large groups. 5. Expert power
Expert power exists in an organization when one member possesses skills
others don't have. This leads others to defer to the expert. Employees
typically assume managers or executives possess some skill or knowledge
that others don't, but anyone in the organization can hold expert power.
To use expert power in your career, pursue expertise in your field. When you
demonstrate a high level of competence, people may ask you for advice or
trust you to solve certain problems because of your experience. Practicing
expert power can also help you seek a management role or advance in your current management position. 6. Informational power
Someone holds informational power when they know something others don't.
This type of power lasts as long as the information is not known to others. This
puts the person in possession of the information in a unique position to
leverage this power however they choose.
The difference between informational power and expert power is that you
don't need expertise in a certain topic to have informational power. The
information you have can involve what you learn from others, through
experience or through education. You can have informational power once or
many times throughout your career. By developing a curiosity for important
news and innovations in your field, you may become a valued resource to your colleagues. 7. Reward power
Gifts can give someone the ability to influence the behavior of others. Reward
power exists when a manager has the power to offer incentives to employees
who perform well. For example, offering a raise to employees with the highest
sales numbers signifies reward power.
As a workplace leader, reward power may be most effective when the reward
is something relevant to the employees. Having something they desire can
encourage boosts in productivity. Keeping incentives attainable can allow you
to improve or maintain morale among your team. 8. Moral power
A leader with moral power inspires action based on their beliefs and behavior.
Moral leaders live by a principle that others can observe and decide to follow.
Employees are inspired by these leaders because the leader builds trust
through their ethics. They become a role model for setting personal standards.
To use moral power in your career, establish a personal mission statement and
philosophy for the workplace. When you make this statement known to others
and consistently live by your principles, they come to trust your example.
They may reflect your personal morals, the organization's ethics or a combination of both. 9. Connection power
Leaders have connection power when their alliance with influential people is
admired and desired by others. The connection gives people the sense that
the leader possesses or has access to the same power that the influential
person has. This can be beneficial in cases where the leader has connections
to possible business investors or network contacts that can help them in their careers.
Building relationships at work can help you establish a framework for
connection power. Take advantage of networking opportunities to make lasting
business relationships throughout your career. When you have connection
power, you can use it wisely by helping your connections create bonds with
each other that can be mutually beneficial for everyone involved.
Effective leadership is essential in any field, but it holds particular significance
in the realm of technology (Architecture and Engineering). A strong leader not
only sets the tone for their team but also possesses the necessary practical
experience and understanding to navigate the complexities of the technology
landscape. In this article, I want to express the importance of leadership by
example, hiring of experienced individuals, decentralized leadership, and the
critical role of practical skills and knowledge in leadership. Leadership by Example:
Leadership by example is a fundamental principle that inspires and motivates
teams to perform at their best. In the realm of technology, it is vital for
leaders to exhibit a strong work ethic, demonstrate technical competence,
stay abreast of the landscape, and show guidance in navigating and
motivating the team to expand their skillset. When leaders lead by example,
they instill a culture of excellence and commitment to best practices
throughout the organization. This promotes a shared sense of responsibility
and encourages team members to follow suit.
Practical Experience in Pre-Sales and Engineering:
Leaders with practical experience in Pre-Sales and Engineering bring a unique
perspective to the table. Their first hand knowledge enables them to make
informed decisions, understand technical complexities, and guide their teams
effectively. They can provide mentorship, share valuable insights, and help
navigate challenges based on their own experiences. This practical expertise
builds credibility and fosters trust among team members, creating a
collaborative environment that encourages growth and innovation.
Importance of Hiring Experienced Individuals:
Leadership that understands and values the importance of hiring experienced
individuals recognizes the immense value they bring to the organization.
Experienced professionals possess a wealth of knowledge and insights gained
from years of hands-on experience. They can hit the ground running,
contribute to problem-solving, and offer guidance and or mentorship to their
peers. By prioritizing the recruitment of experienced individuals, leaders
ensure that their teams have the necessary expertise to face complex challenges head-on.
Decentralized Leadership and Empowering Resources:
Effective leaders understand the power of decentralized decision-making and
empowering their resources. By granting autonomy and trusting their team
members to make decisions, leaders foster a sense of ownership and
accountability. This approach encourages innovation, problem-solving, and
agility, as team members feel empowered to take calculated risks and drive
their own business. Good leaders provide guidance and corrections when
needed, but ultimately allow their team to take the reins and flourish.
Practical Skills and Knowledge in Leadership:
Leadership roles in technology require a solid foundation of practical skills and
knowledge. Promoting individuals with no experience into leadership positions
can result in inefÏciencies, misaligned strategies, and missed opportunities.
Experienced technical resources possess a deep understanding of
technological intricacies, enabling them to provide valuable insights,
mentorship, and strategic direction to their teams. Leadership that lacks
practical skills or knowledge may struggle to guide and inspire their team effectively. In Closing:
In the rapidly evolving landscape of technology, leadership by example plays
a crucial role in guiding organizations and teams to success. Leaders who
possess practical experience in technology Engineering and Pre-Sales,
understand the importance of hiring experienced individuals, embrace
decentralized decision-making, value practical skills, and knowledge are well-
positioned to lead their teams to achieve positive results. By fostering a
culture of excellence, trust, and empowerment, these leaders create an
environment where technology professionals can thrive, make informed decisions.
Note from the Author: I wanted to convey my thoughts on the importance of
leadership in a rather agnostic way. I believe if you replace "technology" with
Cybersecurity, DevOps, or any other profession the message will remain
consistent. Leadership matters!
8 Qualities of Strong Leadership and How
To Become a Stronger Leader
Every workplace, no matter the size, can benefit from having a solid
foundation of leadership. A strong leader can make a large difference in how a
company operates and how the members of a team work together toward the
same goal. With strong leadership, a workforce can expect employees to be
happy and fulfilled by their work, and for there to be a level of trust among
coworkers. In this article, we discuss what strong leadership is, its benefits,
the qualities of strong leadership and how you can become a stronger leader.
What is strong leadership?
Strong leadership is when you can encourage, motivate, inspire and challenge
your team to produce their best work. Strong leadership connects a team
together through a common purpose and builds relationships in the workplace
that allow for effective communication, more creativity and better problem- solving skills.
Benefits of strong leadership
How leadership operates is one of the most important parts of any business.
Here are just some benefits of having strong leadership in the workplace: Increased productivity
Under strong leadership, employees are more likely to take pride in their work
because they realize how important their role is and want to be a valuable
member of the team. They may even produce work with fewer errors.
Employees take on the opportunity to help their teammates to meet a due
date or fine-tune a project for a client.
More trust and confidence among employees
Strong leaders help to develop a workplace culture where employees can rely
on each other and trust that everyone is performing their job as they should.
Employees trust each other, can approach each other for support and have
confidence that everyone in the group is working toward the same goal.
Employees also have the confidence that their leader will be there for them
should they have any issues or need help to complete a task.
Ability to thrive through adversity
In any workplace, it's normal to experience unexpected, stressful or confusing
situations that can include anything from an upset customer to the company
going through a merger. However, with strong leadership in place, the team
has the resources to pivot, accounting for any changes and coming up with
viable solutions. Because strong leaders communicate company news, it may
be easier for employees to understand the direction a company is going and
how they play a part in its success. Company growth
Because a strong leader forms a team where everyone is celebrated for their
skills and occupies appropriate roles for their experience levels and what they
enjoy doing, a company can thrive. A strong leader has a vision and works
with their team to see it come to fruition. They'll be better able to attract top
talent and build processes that support the company mission and goals, both
of which help grow the organization. Increased morale
A strong leader inspires their employees individually and as a group. This
leads to increased morale, lower employee turnover and a positive workplace
culture. Employees will be happy going to work and take pride in what they do.
Qualities and characteristics of strong leadership
There are certain characteristics of strong leadership. Here is what you can expect from strong leaders:
Self-awareness: Strong leaders are aware of their own strengths and
weaknesses. They don't hesitate to admit if they don't have the answers or
don't have the experience with something. They also rely on members of their
team and their complementary skills. Strong leaders are humble and happy to learn from those around them.
Vision: They can see ahead to what they can do to grow the company and
their team, and work on doing just that by supporting and encouraging those
they work with. Strong leaders look toward the long-term future rather than
only come up with short-term solutions.
Perspective: A strong leader appreciates the differences among employees.
They understand that everyone has certain skills, and they develop ways for
teammates to work together for maximum productivity. They appreciate
different viewpoints, encourage their team to share their opinions and actively seek creative solutions.
Support: You'll find that strong leadership also means that every member of
a team feels supported. This is because strong leaders authentically engage
their team, learn what motivates them and develops a culture where open communication is encouraged.
Coaching: Strong leaders want to develop strong teams and they realize that
the way to do this is by continuing to invest in their team and each member
that's a part of it. You can find strong leaders coaching their employees by
providing constructive feedback and providing training opportunities that
allow their staff to grow their knowledge and skills.
Results: Even though strong leaders are people-oriented, they are also
results-oriented. They work hard to blend the two so that their team is
cohesive and wants to see results, too. Strong leaders develop clear
guidelines and goals and work alongside their team toward a common purpose.
Passion: Strong leaders really want to see their teams and organizations
succeed. They are more likely to connect a company's goals with everyday
tasks and show their team the bigger picture. They believe in the company and inspire those around them.
Accountability: A strong leader holds themselves, each team member and
the team as a collective accountable for their actions. This inspires employees
to do the same, resulting in higher-quality work. To hold the team
accountable, strong leaders understand that they must equip their team with
the tools to do their job effectively and efÏciently.
How to become a stronger leader
If you want to realize all the benefits of strong leadership, it's important to
learn how to become a strong leader. Here are just some items to consider if
you want to grow in your leadership role: Get to know your team
If you want to become a stronger leader, it's important to get to know the
people who you'll be leading. The process of getting to know them may
involve planning outings with team-building activities that emphasize working
together, or you may want to schedule one-on-one time to chat with each
member of the team. Some leaders select many ways to connect with
members of their team. No matter which path you choose, explore how you
can learn more about everyone who works alongside you.
Consider asking them about their goals, aspirations at work, their needs and
their wants. Show that you're committed to helping them achieve everything
they're hoping for. Through having these meetings, you'll come to understand
what motivates each person and you'll be better able to lead them as a result. Admit to mistakes
Everybody makes mistakes, including leaders. Employees want to see that
their leader isn't afraid to admit that they have made an error. If you've
messed up a report or made a poor decision about the direction to take a
project, think about addressing it with the team so they can see that, despite
holding yourself to a high standard, you are also subject to human error. This
shows your employees that you know mistakes happen and if they have one,
you'll be by their side to correct it with them. Be honest
Honesty is one of the qualities that employees value the most in their leader.
Once someone on your team feels that you're honest, deeming you
trustworthy is soon to follow. It's important for your employees to know that
you operate with integrity and that you want to inspire them to do the same.
You can display your honesty in a number of ways, including being open to
giving an employee constructive feedback on their performance, keeping the
team abreast of company news and admitting when you just don't have all the answers.
Communicate with your team
Strong leaders rarely sit in their ofÏces with the door closed all day. Instead,
you're likely to see them among their team, working alongside them to finish
a project on time or brainstorm solutions to problems. Establish an open line
of communication where you can ask how a task is going and an employee
feels comfortable using your open-door policy if they need to. The
communication you offer to your team should inspire them, motivate them
and let them know that you know and appreciate their value.
Effective communication isn't just one-sided — listening is part of it, too. To
communicate with your team, listen to what they have to say, ask questions,
look them in the eyes and empathize with a stressful situation they may have
come to you with. Also, take the time to observe how members of your team speak to each other. Have fun
You can also become a strong leader by having some fun at work. There may
be tight deadlines, upset customers or a failed marketing campaign, but with
the right culture, the team has the resources to take most setbacks in stride.
When the team can laugh together and enjoy each other's company, it's
easier and more fulfilling to work together, and you would have earned some
respect as being a leader that employees actually want to follow.
Provide coaching and training
Employees appreciate having a leader who values the work they do and wants
to invest in them. One way to do that is by actively providing coaching where
you discuss their job performance and provide helpful feedback on how they
can get to the next level. Consider establishing a peer-to-peer coaching
program so employees can learn from their coworkers.
Also, if there are conferences, webinars, panel discussions or networking
events specific to your industry, think about offering your employees the
opportunity to attend. Consider not only letting them go to relevant events
but encouraging them to attend training that focuses on a topic that is
complementary to their current work tasks. This will show that you have faith
in their abilities to grow their responsibilities and learn a new tool or process. Encourage your team
By encouraging your team, you are creating a supportive work environment
that employees will appreciate. Most everyone wants to receive recognition
for a job well done alongside encouragement to keep going. Employees want
to know that their manager believes in them and trusts them to make
important workplace decisions. If a member of the team lacks the confidence
to apply for a promotion or to share their idea during team meetings, your
encouragement can go a long way toward your employee being able to take
action on something they may not have felt comfortable with in the past.
You can also encourage your team to think outside of the box, drawing on
their creative side to come up with unique solutions. The more
encouragement you provide, the more employees trust that you want what's
best for them and will look up to you as a strong leader and ally in the workplace. Show your passion
If you show your passion for the company, your team and the work you do,
your staff should follow. A strong leader inspires others by their actions and
general attitude. Especially at work, it's important to show that you believe in
the company's values and want to operate by them while you lead your team. CHAP: TEAM AND TEAMWORK ChatGPT
Cohesiveness in a group refers to the degree to which members are attracted to and motivated to
remain part of that group. It signifies the unity, solidarity, and bonds among group members that
promote cooperation and mutual support.
**Meaning: Cohesiveness indicates the strength of the relationships and connections within a
group. When a group is cohesive, members are more likely to collaborate effectively,
communicate openly, and work towards shared goals. This cohesion is often characterized by a
sense of belonging, trust, and commitment among members.
**Example: Imagine a sports team where players consistently support each other both on and off
the field. They celebrate victories together, support each other during losses, and maintain a
positive team spirit throughout the season. This strong bond fosters a cohesive team environment,
leading to improved performance and morale.
Inter-personal and Intra-personal Connections
1. Inter-personal: Cohesiveness at an interpersonal level within a group enhances interactions
between members. It facilitates effective communication, empathy, and understanding among
individuals. For example, in a cohesive work team, colleagues are more likely to listen to each
other's ideas, provide constructive feedback, and resolve conflicts amicably, thereby strengthening their working relationships.
2. Intra-personal: At an intra-personal level, individuals who feel a sense of belonging and
acceptance within a cohesive group tend to experience greater satisfaction and motivation. This
can positively impact their self-esteem, confidence, and overall well-being. For instance, students
in a tightly knit study group may feel more confident in their academic abilities and more
motivated to achieve their learning goals due to the supportive atmosphere created by group cohesiveness.
In summary, cohesiveness in a group is crucial for fostering effective teamwork, enhancing
interpersonal relationships, and bolstering individual well-being and motivation within the group
context. It underscores the importance of social bonds and collective identity in achieving shared
objectives and maintaining group stability over time. Copilot (Chat)
“Cohesiveness” in a group, also known as group cohesion or social cohesion, refers to the bonds
that link members of a social group to one another and to the group as a whole. It’s a multi-faceted
concept that can be broken down into four main components:
Social relations: The level of respect and trust among group members.
Task relations: The commitment to working together to complete tasks.
Perceived unity: The sense of belonging and shared identity within the group.
Emotions: The strength of feelings, either positive or negative, that members have while working together.
An example of group cohesiveness could be a sports team where players have strong interpersonal
trust, work collaboratively towards common goals, communicate effectively, and resolve conflicts
constructively, maintaining a unified sense of belonging.
Linking group cohesiveness with inter-personal relationships, cohesive groups often exhibit high
degrees of interpersonal trust and effective communication. Members of such groups are more
inclined to coordinate their efforts to achieve common goals and provide emotional support to
each other, which enhances cooperation and overall team performance.
As for the link with intra-personal relationships, group cohesiveness can increase the personal
bonds that members feel. They tend to draw emotional strength from each other based on
friendliness, respect, support, achievement, protection, and a feeling of security. This internal bond
can lead to members being more likely to help each other in times of need, thereby strengthening their intra-group bonds4.
In summary, group cohesiveness is essential for the effective functioning of any group as it fosters
strong inter-personal relationships among members and enhances the intra-personal connection
each member feels with the group.
CHAP: OGN STRUCTURES AND DESIGN
THE DESIGN OF ORGANIZATIONS INTRODUCTION.
Organization design is the overall configuration of structural components that define jobs,
groupings of jobs, the hierarchy, patterns of authority, approaches to coordination, and line-staff
differentiation into a single, unified organizational system.
THE NATURE OF ORGANIZATION DESIGN.
The structural components discussed previously can be arranged to create a variety of organization
designs. Organizations manipulate these components to create a design that supports their mission
and the achievement of their goals and objectives.
universal VIEWS OF ORGANIZATION DESIGN.
Early, so-called universal, approaches focused on identifying ideal designs that could be used in a
variety of settings with equal effectiveness. Two universal approaches are the bureaucratic model and the System 4 approach. The Bureaucratic Model.
The stereotypical belief about bureaucracies is that they are inflexible, monolithic organizations
with uncaring employees who create 'red tape'.
The bureaucratic model of organizations was described by Max Weber, a German sociologist.
Weber believed that the bureaucratic model was an ideal approach to structuring organizations
based on a rational set of guidelines and procedures. Characteristics:
Clear division of labor, consistent rules, hierarchy of positions, impersonality, and employment and
advancement based on technical expertise.
Advantages: Bureaucracy can enhance efficiency, logic, and rationality in large organizations.
Disadvantages: Bureaucracy tends to lead to inflexibility and rigidity, which slow decision making
and create a general inability to respond to rapid changes or crises. Because of the drawbacks,
businesses and other types of organizations looked for alternative approaches. System 1 And System 4.
Rensis Likert distinguished between what he called System 1 and System 4 organizations.
System 1 is the traditional bureaucratic organization. The antithesis of System 1 is System 4.
System 1 organizations are relatively formal, rigid, and mechanistic. System 4 organizations are
likely to be informal and flexible.
Likert's model suggests that System 1 organizations should try to change and become more like
System 4 organizations. Because such a radical change would be difficult for most organizations to
manage, Likert also describes intermediate stages: System 2 and System 3.
Blindly adopting a System 4 design was no more a guarantee of success than was relying on the
bureaucratic model. Most managers recognized that the most appropriate design for an organization
depends on a number of variables.
SITUATIONAL DETERMINANTS OF ORGANIZATION DESIGN.
Key situational determinants of organization design: technology, the organizational environment,
and organization size and life cycle. Technology.
Technology, the set of processes an organization uses to transform various resources into products
or services, can have a major impact on any of the structural components previously discussed.
Joan Woodward, one of the first researchers to identify the link between technology and
organization design, defined three basic types of technology:
oUnit or small-batch technology (the least complex):
Products are custom-made or produced in small quantities.
oLarge-batch or mass production technology:
Products are manufactured in assembly-line manner.
oContinuous-process technology (the most complex):
Products are transformed from raw materials into finished goods through a series of machine
transformations that change the composition of the materials.
When Woodward classified organizations by technology, the organizations within each set had
similar designs. Woodward thus concluded that different forms of technology are likely to
necessitate different types of organization design. Environment.
The environment of an organization comprises all the factors and conditions external to the
organization that might affect the organization.
oTom Burns and G.M. Stalker were among the first to identify a relationship between an
organization's environment and its design. They classified environments as stable or unstable.
oStable environments are relatively placid and do not change very much. Organizations in stable
environments resemble System 1 organizations. Burns and Stalker called them mechanistic organizations.
oUnstable environments are more volatile and prone to rapid and major changes. Organizations in
unstable environments have the basic characteristics of System 4 organizations. Burns and Stalker
called them organic organizations.
oPaul R. Lawrence and Jay W. Lorsch extended Burns and Stalker's studies and found that subunits
or department adapt to their environment just as the overall organization does.
oLawrence and Lorsch identified two important concepts: differentiation, the extent to which the
organization is broken down into subunits or departments; and integration, the extent to which
subunits created through differentiation must coordinate their activities and functions.
oOrganizations need more differentiation when they are faced with unstable and dynamic
environments; and the more an organization is differentiated, the more it needs integration.
Organization Size And Life Cycle.
Organization size refers to how large the organization is, usually in terms of the number of full-time
employees. Organization size can affect organization design.
Researchers at the University of Aston found that large organizations tend to have more job
specialization, more standard operating procedures, more rules and regulations, and more
decentralization than small organizations. An organization's size is related to its life cycle.
Life cycle is the organization's maturity relative to that of other organizations. Organizations tend to
follow a fairly predictable pattern of growth. This pattern is one of creation, growth, and stability.
CONTEMPORARY FORMS OF ORGANIZATION DESIGN.
The design of an organization depends on the technology the organization uses, the limits and
potentials of its environments, and the life cycle stage it is in. These factors influence specialization,
departmentalization, and coordination. Although every organization has its own unique design, five
basic structural arrangements can be identified.
The U-Form Organization.
The U-form organization (U stands for unity), also called functional design, relies almost
exclusively on the functional approach to departmentalization . The U-form design is used to
implement a single-product strategy. Because of the emphasis on functional activities, coordination is extremely important.
Advantages: The costs of staffing each department with experts is lower than in organizations with
other configurations. U-form design facilitates wide spans of management and allows the CEO to centralize authority.
Drawbacks: U-form design slows decision making. Unit employees may lose sight of overall
organizational goals, and it is difficult for the organization to monitor the performance of individual
managers in the functional areas.
The H-Form Organization.
The H-form organization (H stands for hybrid), sometimes called a conglomerate, relies loosely on
product departmentalization with the various products constituting different businesses.
The H-form design is used to implement a strategy of unrelated diversification.
Advantages: H-form design allows the organization to protect itself from cyclical fluctuations in a
single industry, and the organization can buy and sell its individual businesses with little or no
disruption to those that remain.
Drawback: The typical H-form organization is likely to achieve only average-to-weak financial performance.
The M-Form Organization.
The M-form organization, also called the divisional design, is similar to the H-form design, but
most or all of its businesses are in the same or related industries.
The M-form design is used to implement a corporate strategy of related diversification . In this case
a firm specializing in mechanical contracting.
Advantage: The organization can achieve a great deal of synergy in its operations.
Drawback: If the businesses are too closely related, the organization is no longer protected from cyclical trends.
The Matrix Organization.
A matrix organization is created by overlaying product-based departmentalization onto a functional
structure . A matrix design is typically used for portions of an organization. Each member of a
matrix organization has a functional 'home' but may be assigned at any given time to one or more
groups working on special projects.
Advantage: The organization is able to capitalise on the advantages of both functional and product departmentalization.
Drawbacks: The organization lacks a clear chain of command. Project groups may take longer to
finish work and be prone to conflict. The organization has to devote more resources to coordination.
The Global Organization.
A global organization design is needed by organizations that are moving toward or have achieved
multinational status. Most global organizations adopt modified versions of the U-, H-, or M-form design Hybrid Designs.
Most organizations use designs that are hybrids of the organization designs discussed above. The
key point to remember is that there is no one best design for all organizations.
Each organization has to review its own strategy, strengths and weaknesses, history, technology,
environment, life cycle, and size: choose a design to accommodate those elements; and tailor the
design to fit its own particular needs. ORGANIZATIONAL CULTURE.
Although culture is not strictly a part of organization design, culture and design must complement
each other in order for the organization to function smoothly.
The Meaning And Importance Of Culture.
Organizational culture is the set of values that defines for members what the organization stands for,
how it operates, and what it considers important. The organizational culture communicates
important information about acceptable and unacceptable behavior.
Most managers acknowledge that a strong and clear organizational culture helps provide a common
frame of reference for managerial decision making and other organizational activities.
Creating, Maintaining, And Changing Culture.
An organization's culture normally forms over time and is often deeply influenced by the values of
the firm's founders. As organizational culture evolves, various symbols, stories, heroes, slogans, and
ceremonies emerge. These facilitate the perpetuation of the culture, the change is often made in
response to the firm's inability to carry out its strategic goals.
Copilot (Chat): Each organizational structure and design, along with their advantages and disadvantages
1. Functional (U-Form) Design: This structure organizes a company into different
departments based on areas of expertise, grouping employees by specialty, skill, or related roles. oAdvantages:
Specialization allows for efficiency and expertise within departments.
Clear hierarchy and reporting structure.
Cost-effective staffing with experts in each department. oDisadvantages:
Can lead to silos with limited communication across departments.
Slower decision-making due to centralized authority.
May focus too narrowly on departmental goals rather than overall company objectives.
2. Conglomerate (H-Form) Design: Used for managing a portfolio of unrelated businesses,
where each business operates independently but is overseen by the conglomerate’s corporate center. oAdvantages:
Diversification reduces the risk of relying on a single industry.
Flexibility to buy and sell individual businesses with little disruption. oDisadvantages:
Complexity in managing diverse businesses.
Potential for only average financial performance.
3. Divisional (M-Form) Design: A company is divided into semi-autonomous divisions, each
responsible for its own performance and often focused on a product line or geographic area. oAdvantages:
Allows for focus and specialization within divisions.
Can be more responsive to changes in the market or region. oDisadvantages:
Can create duplication of resources across divisions.
Potential for conflict between divisional and corporate priorities.
4. Matrix Design: Employees report to both a functional manager and a project or product
manager, creating a grid-like structure. oAdvantages:
Facilitates resource sharing and collaboration across projects and functions.
Can lead to higher job security and satisfaction. oDisadvantages:
Complexity and overhead in management.
Potential for conflict between managers and confusion for employees.
5. Hybrid Designs: Combines elements of other organizational structures to meet specific
needs, often used to balance the benefits and drawbacks of different designs. oAdvantages:
Flexibility to tailor the structure to the company’s needs.
Can incorporate the strengths of various designs. oDisadvantages:
Can be complex to manage and implement.
Risk of confusion if not well-integrated.
Each design has its context where it excels, and the choice depends on the company’s strategy, size,
and industry. It’s important to weigh these factors carefully when considering organizational design.
CHAP: INDIVIDUAL BEHAVIOURS
The “Big Five” personality traits, also known as the model, represent five broad OCEAN
dimensions of personality that are used to describe human character. They are:
1. Openness to Experience:
oTraits: Inventive/curious vs. consistent/cautious.
oCharacteristics: Appreciation for art, emotion, adventure, unusual ideas; imaginative and curious. 2. Conscientiousness:
oTraits: Efficient/organized vs. extravagant/careless.
oCharacteristics: High levels of thoughtfulness, good impulse control, and goal- directed behaviors. 3. Extraversion:
oTraits: Outgoing/energetic vs. solitary/reserved.
oCharacteristics: Energy, positive emotions, surgency, assertiveness, sociability and
the tendency to seek stimulation in the company of others. 4. Agreeableness:
oTraits: Friendly/compassionate vs. critical/rational.
oCharacteristics: Tendency to be compassionate and cooperative rather than
suspicious and antagonistic towards others. 5. Neuroticism:
oTraits: Sensitive/nervous vs. resilient/confident.
oCharacteristics: Tendency to experience unpleasant emotions easily, such as anger,
anxiety, depression, or vulnerability.
These traits are believed to be relatively stable throughout an individual’s lifetime and may
influence certain life outcomes like education and health. Each trait represents a continuum, and
individuals can fall anywhere on the spectrum for each trait. The Big Five are significantly
influenced by both genes and the environment, with an estimated heritability of 50%. They are a
critical model for understanding how people differ in their baseline personality profiles.