Management Styles, Leadership, and Organizational Culture
Management Styles
- Country Club Management: Thoughtful attention to the needs of people, a comfortable, friendly organizational atmosphere, and work tempo.
- Team Management: Work accomplished by committed people; interdependence through a common stake in the organization’s purpose leads to relationships of trust.
- Middle-of-the-Road Management: Adequate performance is possible through balancing the necessity to get out work and maintaining the morale of people at a satisfactory level.
- Authority-Compliance Management: Efficiency results from arranging conditions of work in a way that human elements interfere to a minimum degree.
- Impoverished Management: Minimum effort to get work done.
Hierarchy of Needs
- Self-Actualization: Learning new things (serotonin).
- Esteem: Self-confidence.
- Affiliation: To belong to a team (oxytocin).
- Security: Endorphin.
- Physiological: Body and mind (dopamine).
Transformational Leadership
Transformational leaders inspire with their vision and promote it over opposition, demonstrating confidence in themselves and their views.
Common interrelated characteristics and behaviors:
- Visionary
- Trustworthy
- Considerate
- Confident
- Thoughtful
- Charismatic
- Ethical
Leadership Development
Increasing leadership capacity through:
- On-the-job training (experience).
- Formal assessment and training.
- Special assignments (like on-the-job training but short-term).
- Coaching and mentoring.
Diversification Business Strategies
Diversification: The variety of goods/services produced by an organization and the number of different markets it serves.
Types:
- Single-Business Strategy: One product/service for one market.
- Dominant Strategy: Different types of products for a similar market.
- Related Strategy: Everything is related to different types of products, but related to a single market.
- Unrelated Strategy: Different products, procedures, and channels.
- Single Strategy: A limited number of goods for one particular market.
- Related Business Strategy: A variety of complementary goods/services.
- Unrelated Business Strategy: Providing diverse products to different types of markets.
Basic Types of Organizational Cultures
- Bureaucratic Culture: The behavior of employees is governed by formal rules and standard operating procedures, and coordination is achieved through hierarchical reporting relationships (UCO).
- Clan Culture: Behaviors of employees are shaped by tradition, loyalty, personal commitment, extensive socialization, and self-management; formal rules and procedures are minimized (ONU).
- Entrepreneurial Culture: External focus and flexibility create an environment that encourages risk-taking, dynamism, and creativity (e.g., Google, Disney).
- Market Culture: Values and norms reflect the importance of achieving measurable and demanding goals, especially those that are financial and market-based.
Organizational Subcultures
An organizational subculture exists when assumptions, values, and norms are shared by some organizational members. Departments and divisions have their own subcultures:
- Occupational subcultures
- Geographical subcultures
- Subcultures created by managers who:
- Recognize personal milestones, such as birthdays and employment anniversaries.
- Hold public celebrations for professional achievements.
- Sponsor picnics and parties.
- Listen to their employees.
Cultural Diversity
Cultural diversity encompasses the full mix of the cultures and subcultures to which members of the workforce belong.
Organizational goals for managing cultural diversity:
- Legal compliance.
- Creating a positive culture for employees.
- Creating greater economic value for the organization.
- Creating family-friendly workplaces.
Managing cultural diversity challenges:
- Managing the reaction of the members of the dominant culture, who may feel that they have lost some of the power they previously had.
- Avoiding real and perceived tokenism and quota systems.