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OB THEORIES & TOOLS OB Theories & Tools Functional Structure Culture analysis Leadership a Path Goal Symptom vs. Root Cause 2 Transformational 2 leader Character Model Decision Criteria Motivation 2 Infrinsic vs. Extrinsic a McClelland's Need Theory a Expectancy Theory a Equity Theory Organizational Structure a Functional, Divisional, Matrix, Holacracy Cognitive Differences 2 Perception Power & Influence o Diversity a Types of Power 2 Group Development a Types of Influence Functional Structure o Organizations are divided into units that perform similar functions (e.g.. marketing department, finance department) o Organized by the inputs to the organization o Some things to think about: o Goals of the organization can often become secondary to the goals of the group o Organization is more formal and less flexible o However, there is little/no duplication of resources 2 7 8 08 Theories + Tools . Divisional Structure Understanding Culture Divisional Structure - What is the desired culture? o Organized by the outputs the organization o Mechanisms used to achieve desired produc.evsv . . o Each division contains all the functional areas culture? Eachd t Il the fi f | necessary to serve its specified market i o Can be organized by set of products, o What is the current (or sub) culture? v W ) geographg giencl by oot of pree o Can we make the necessary changes to m o Some things to think about... o A close gaps? How? Implications? Audi o Duplication of resources. .. loss of 'economies of scale' o o However, each division can be held accountable for performance; thereby enabling better control B 4 9 10 Understanding Structure Matrix Structure Matrix Structure STRUCTURE i ) — = ] — : o I'sh thetcur'rent2 structure helping or impeding m o Combines functional and divisional form :J::c:gngndvisiond RT—— o Employees maintain a "home-base" in a = ¥ d S0 siatotog bl Muinae Lk Oparations |t Homen functional group while working on projects for . ¢ = a Are the fight people making the right ; fosourens specific products, regions or clients decisions? [P | crkating |t Finance -+ Oporcsions e} Himan i ' ' i "" o Does the structure allow for smooth - | o o Some things to think about... ! s communication? Mexico B L[ pemce |——t{Oporctors | Hrman o High dependency on teamwork . ' i i ' "i"' Rosources o Uncertainty of direct supervision o Can the OB chall ) in the case be o However, it promotes innovation as people of diverse iii lruct ? W the corporate m Marketing [~y Finance et Operations i (W0 backgrounds are drawn together s ure 5 6 11 12 Holocracy Holocracy Structure Group Development LEADERSHIP e e COGNITIVE DIFFERENCES o Seeks to distribute authority and decision making to those doing purpose-driven work o Uses a system of interlocking team:s (circles) that form and disband based on the work needing to be done o Some things to think about... o The circles are linked o Authority is distributed throughout the organization o Everyone must agree before action is taken o Few/no managers 1. Forming 2. Storming 3. Norming +. Performing s. Adjourning .'g\s&.' ¢ RV N iy 2 Understanding Diversity Understanding Leadership o What sources of diversity are present? o Are their opportunities to further diversify2 o Recognizing individual differences & the sources of these differences o Adjusting one's own leadership style to maximize contribution o What leadership style is curently being employed? o What type of leader is best svited for the employees/situation in the organization? o Can necessary changes in leadership style be successfully implemented? Path-Goal Theory of Leadership — The role of the leader is fo: o Assist followers in attaining the followers' goals o Prov-ae the necessary direction and support 10 ensure that s' goals are compatible with the organization's goals Identifies 4 styles of leader behavior o Directive - Gives specific guidance, tasks, schedules, etc o Supportive - Treats members as equals, friends o Participative - Consults and uses suggestions of followers o Achievement-oriented - Sets goals and expects improvement Must consider two situational variables (personal characteristics of the followers and environmental factors) to determine which leadership style is appropriate Understanding Cognitive Differences Transformational Leadership Leader Character — ; Perceptions differ amongst different people People respond differently to the same snmuh Leaders achieve superior results from emp or all of the four components by using some 1 Charismatic o Have extraordinary capabilities, persistence, determination o Are highly ethical and moral, are admired, respected and frusted Inspirational o Provide meaning and challenge, arouse team spirit and enthusiasm Intellectval o Stimulate followers to be innovative and creative Individualized Consideration [ Competencies * Traits + Intellect * Aspiration * Valves * Engagement * Virtues * Sacrifice These three components are central to the decisions effective leaders make