Managerial and Organizational Styles

Introduction
Managerial and Organizational Styles

External Environment

Internal Environment

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.

 Differences among people in their approaches to jobs leads to different MANAGERIAL STYLES Differences in Organizational cultures leads to different ORGANIZATIONAL STYLES

Managerial Process Approach

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Functions of managers The functions of managers describe their managerial work and hence style of working Planning Top management Organizing Supervising Coordinating Controlling Communicating Investigating Middle management Evaluating Decision making Staffing Representing Negotiating

Managerial Working Roles Approach

Demand, Constraint and Choice

Demands
What Has to be done Job Description A must for the Job

Examples
Meeting minimum performance criteria Bureaucratic Procedures to be followed Meetings that must be attended Manager must work with certain group of people

Constraints
The Factors (internal or external) which limit what manager can do.

Examples
Resource Limitations Legal constraints Physical Location Work constraints Attitudes of people

Choices
.The activities that the manager can, but not necessarily has to do. Opportunities for one manager to do things in different ways

Examples
Choices as to how the work is done Choice as to what work is done Boundary management Delegation of work Develop a personal domain

Individual Managerial Styles

Degree of Subordinate concern Shotgun, Tactician and Bystander Managers Managerial Style under competition Strategic stances and Their Managerial Styles

Degree of Subordinate Concern

Degree of Subordinate Concern depends on

Forces in Manager Value system Confidence in Subordinates Leadership Qualities

Forces in Sub-ordinates Need for Independence Tolerance for ambiguity Interest in Problem

Forces in the Situation Type of organization Nature of problem Pressure of time

Shotgun, Tactician and By Stander Managers (brichas)

Managerial Influence approach 1 Reason Example Explaining the reason for a request

2
3 4 5 6 7

Coalition
Ingratiation Bargaining Assertiveness Higher authority Sanctions

Obtaining the support of co-workers to back up request

Acting very humble while making a request Offering an exchange Demanding that someone do what is desired Obtaining the Informal Support of higher ups Threatening to give an unsatisfactory performance evaluation

 Those who use all seven approaches with high frequency - 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 Stander Manager

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.

Strategic Stances and their Managerial Styles

Managers should be chosen according to the Strategy Followed by the company i.e. the BEST fit according to needs.

General Management Requirements for various strategic situations

Situation
Start up

Major Job Thrusts

-Creating Vision of Business -Establish core competency -Rapid, accurate problem diagnosis -Fixing long term problems -Sensing signs of change -Succession -Stability

Ideal Characteristics
A-doer Visionary Team builder Energetic Strong Leader Taking Charge Strong analytical skills Risk taker Technically knowledgeable Strong Relationship Orientation

Turnaround

Extract Profit/Rationalize existing Business

Continued..
Situation Dynamic Growth In Existing Business Major Job Thrusts -Increasing Market share -Managing Rapid change -Vision of future -Managing change -Be effective in concerned business sphere -Cutting Losses -Making tough Decision Making Best deal Ideal Characteristics -Excellent Strategic Planning Skills -Good Crisis Management Skills -Highly persuasive -Moderate Risk taker Good Executing skills -Tough Minded -Cost/benefit analyzer -Risk taker

Redeployment of Efforts in existing business Liquidation/Divestiture of poorly performing business

Situation New acquisitions

Major Job thrust -Integration -Establishing sources of Information and control

Ideal Characteristics -Analytical Ability -Relationship building Skills -Interpersonal Influence -Good Communication skills

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.

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.

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.

Types of Organizational styles

The Office of the President. Strategy related styles Organizational Culture dependant

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

Usual Structure

Chief Executive Office

Chief Financial Officer

Chief Marketing Officer

Chief Operating Officer

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.

Strategy Related Styles

Styles based on firms growth and competitive strategy. Miles & Snows typology Prospectors Defenders Analyzers Reactors

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

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.

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

Reactors
Management fails to establish any viable organizational strategy. Irrelevant organizational structures. Reactive decision making

Organizational Culture Dependent

Theory A(merican) Employment Term Short Primarily Theory J(apanese) Lifetime for males Theory Z-The American Ideal Long

Decision Making

Individual by Managers Resides in the individual

Consensus among many Held Collectively by many

Consensus among many Resides in the individual

Responsibility

Theory A(merican) Theory J(apanese) Evaluation and promotion Rapid and based on performance Slow and based on loyalty

Theory Z-The American Ideal Slow and based on loyalty

Control system

Formally stated and Written down

Within a specialized area Segmented and focused on performance only

Informal and not explicitly stated

Movement through many areas

Informal but with explicit measures

Less specialized than in theory A

Career Path

Breadth of Supervisory Concern

The whole person The whole person and all aspects of and all aspects of life. life, including family.

Four Corporate Culture types

Title The tough guy, macho culture Description World of individuals who take high risk and get quick 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 done by employees and they find it hard to measure what they do. Bureaucracy

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)

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 Company)

Stage II Company (Integrated Company)

Stage III Company (Diversified Company)

Product line Distribution Organization Structure R&D

Single One channel/set of channel Formal, one man show Not institutionalized. Guided by owner Personal and Subjective Unsystematic Personal control of strategic decisions Personal control Needs of owner vs. needs of company

Single One set of channel Specialization based on functional areas

Multiple Multiple Specializations based on market and product

Institutionalized search for Institutionalized search for products and processes. products and processes. Impersonal and technical/cost criteria Systematic, with emphasis on stability Personal control of strategic decisions Delegation Degree of integration, market share objectives, breadth of product line Impersonal, uses market share, ROI etc Systematic, performance based Indirect control based on analysis of return Delegation across markets Entry and exit from industries, allocation of resources by industries, rate of growth.

Performance measure Rewards Control System Operating decisions Strategic Choices

The Five Stage Model

Greiner developed a life-cycle model of growth, proposing that organizations pass through five stages, and that each stage ends in a crisis.

To advance from one stage to the next, an organization must successfully manage and solve the problem associated with each crisis.

Large

Stage 1

Stage 2

Stage 3

Stage 4

Stage 5 5. Crisis of ?

4. Crisis of red tape Size of organization 3. Crisis of control 2. Crisis of autonomy 1. Crisis of leadership 5. Growth through collaboration 4. Growth through coordination

3. Growth through delegation

2. Growth through direction

1. Growth through creativity Small Y oung Age of organization Mature

Existence

Survival

Success Disengagem ent

Success growth

Take off

Resource maturity

Management Styles

Direct

Supervised

Functional

Functional

Divisional

Line and Staff

Organization

Extent of formality

Minimal

Minimal

Basic

Developing

Maturing

Extensive

Major Strategy

Existence

Survival

Profit maintenan ce

Get resources for growth

Growth

ROI

Business and Owner