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Since the past two years the GBE International is witnessing a sudden slow down in business and is losing money. Management has decided a complete review and repositioning of the company in its respective operative markets. The company badly needs to implement a strategic change in management styles followed to cope with the increasing discrepancies and to make up for the money loss that it is facing. Also it needs to pay due attention to the structure and operating styles dealing in.
Structure and operating styles are important determinates of success for any organization. An organization comprises of many individuals and when we have more than one person we need to implement direction to the acts of individuals towards the achievement of common aim. The larger division of GBE international with a workforce of 600 needs serious alteration in its structure and operating styles. The Group managing director, Bob Miller follows an autocratic style of leadership which means less interaction with the lower end staff, decision making is a solitary process and centralization of authority and control. The leader and employees share no relationship other than work and there always prevails a gap amongst the two. More over the employees feel threatened because of the criticisms and challenges faced because of under performance, which is reviewed at the weekly meeting. We list here some certain alterations in the structure and management styles:
Alterations in structure and management style (Division 1)
Our division of work strongly needs a Participative leadership rather than an autocratic leader. The nature of work here strongly requires a leader who takes enough care to involve subordinate employees, superiors and other interested parties of business concern into the decision making act. A decision involving ideas and views of other employees is well accepted and worked upon by the subordinates.
Since long, this particular division has been consistent on the management style; a makeover in the same is required to improve upon the business and its growth.
However, the ultimate power and responsibility lies with the leader, he can distribute the responsibility in order to increase accountability. A permissive style of management permits subordinates to participate in the decision making activities of the organization, though it totally unto the leader as to how much autonomy he provides to his subordinates.
The weekly meetings of Bob Miller with the co directors should not end with challenges and Criticisms but with solutions and remedies. This gives a sense of motivation to the employees and thrives them for better results.
A dutiful leader is bound to direct individual goals towards organizational goals, so that individuals feels self satisfied while working towards organizational goals. Motivated and satisfied workers tend to work satisfactorily and effort towards the achievement of the common goal and objectives.
Alterations in structure and management style (Division 2)
We now analyze the second division of the company, which manufactures machines, which turn processed tobacco leaf into cigarettes, and then package the cigarettes for retail sale. The market faced by this division is comparatively smaller than the first division. The management style seen here is much of informal because of less layers of management and the leadership style is democratic. Martin Smith who's the managing director of this division follows an informal style and there exists a strong social networking amongst the employees irrespective of the position held in the organization.
Though a democratic type of atmosphere is always considered to be good at the workplace, but excess freedom to employees can sometimes lead to poor decision-making and hence forth poor implementation.
This division is much of informal because of less layers of management, but there should be a certain level for the informal environment, things beyond borderline can worsen organizational structure and hamper the growth of the same.
At present the organization is facing extremes in case of leadership and management styles. Division 1 faces an extremely autocratic style while division 2 faces a completely democratic style. Both leaders/ managers need to diverge towards a style, which encompasses both styles of management.
Leadership Styles: Autocratic to democratic
With time organizations are altering there structures from Autocratic to democratic below we see a diagrammatic representation of a gradual move from autocratic to democratic style. We see here that as we move towards the democratic style, there is an increased participation of the subordinates and other interested parties in the decision making process.
Management Styles envelops a massive amount of potential, and as a conclusion management style has been disputed for years. The nature of Management style followed is very imperative for an organization. It not only influences each and every bit of organization but the employees also in a gigantic way. The style adapted by the leader or the manager heading the organization essentially depends on the personal characteristics and traits of the leader. Though we have a wide variety of management styles but efficiently we can consolidate them into the following heads:
Democratic management style is one of the most accepted and talked forms of management in nearly every large corporation of today's business world. Democratic management style occupies a structure within a business that permits for the gush of liberated thinking and the distribution of ideas sandwiched between employees and managers. A feedback from the employees helps managers take better decision both on part of organization and employees. Input and responses from managers and subordinates helps take decisions on various business policies and decisions.
An autocrat is relatively or factually a leader of indefinite power and unconditional authority, we can bring in some names from history like, Adolph Hitler or Saddam Hussein. Anyone who utilizes an autocratic management style is very much definite to be a authoritarian and dictator, so expecting an experience of group motivational lessons or intense brainstorming sessions are likely to be zero under this type of management style. Now days rarely we see this type of style in practice, it is an era of democracy where each and every individual wants his say in the over all goal or objective.
A complete autocratic or democratic style can have certain loops and hamper the growth of the organization. Keeping in mind the positives of both we came up with a consultative management style. The manager or the leader in position asks for ideas and opinions from their subordinates and other interested parties working together for a sole aim. It is completely the responsibility to take opinions and allowing them to involve themselves in suggestions but the ultimate authority lies with the leader.
A laissez faire leader places the work and gives subordinate staff absolute and complete liberation to complete the work as they desire and see fit The manager or the leader is there to guide and coach the staff, he is there to answer questions and supply any information, which can be useful in decision-making. This type of management style develops a feel of responsibility amongst the staff, which leads to higher motivation levels and better decision-making capabilities.
How the relationship between an organization's structure and culture can impact on the performance of the business
Employees are the biggest assets of any organization, any employee friendly organization tends to grow better and faster in contrast to Organizations was people are treated and held like machines with less or no social interaction. The relationship between an organizations structure and culture highly impacts the performance of the business routing its way from the employees. Motivated and Satisfied employees work cooperatively to achieve common objectives. A good and efficient Organization structure and culture are the building blocks of a strong and fruitful organization. When the Hawthorne research was carried out it was revealed that workers appear to work harder towards the achievement of common goal or objective when an informal social system is formed. Worker had a sturdy requirement to co-operate and exchange a few words with fellow workers. Leaders or Managers strictly need to develop interpersonal skills to effectively and efficiently do their job and bear the benefits on successful completion of the same factors, which influence individual behavior at work
Individual Behavior at Work
In words of John Ivancevich and Michael Mattson, the important factors that influence individual behavior at work are:
Corporations favor persons that come from good socio-economic backdrop, well taught, young, cultures etc, as they are trusted to perform better than the others. For any organization young and vibrant professionals who have crisp and good academic knowledge and effective interaction proficiency are always in great requirement.
Abilities and Skills
The substantial capability of a personage to carry out a certain task is ability. Skill is termed as the capability to perform in a technique that permits a person to carry out well. A person can carry out things well in the organization if his abilities and skills are coordinated with the job obligations. Here, the managers or the leaders play important role in harmonizing the abilities and skills of the worker in accordance to the work.
Perception, Attitude and Personality
The next important factors which strongly effect individual behavior at work are Perception: how the individual interprets the environment in a meaningful way, Attitude: It is the basic tendency to respond favorably or unfavorably, individuals with a positive attitude tend to perform better, Personality: Personality can be termed as the study of the uniqueness and distinguishing traits of an individual, the inter-relations linking them and the means in which a person reacts and alters with other individuals and situations.
Organizations and Management Styles
We see here what approaches do some well know companies apply in there Organizational structures:
Wall street - Has sturdy prospects about the behavior and performance of its employees.
Google - Participative management style
Microsoft - Treats Subordinates as equals
Arcelor Mittal - Company appears to be micromanaged. Employees are quite dispensable.