Essay: Report On Effective Leadership And Organisational Structures.

Activity 1

As part of the selection process, you have been asked to prepare a report to submit at your interview. In this report you must demonstrate your understanding of effective leadership behaviour theory and leadership practice.

Your report must cover the following topics:

a) an evaluation of leadership theories

b) an evaluation of the impact of managerial styles on organisational effectiveness

c) an analysis of how motivational theory can inform employee motivation

d) an analysis of theories relating to work relationships and interaction

Activity 2

You have been asked to give a presentation for the interview panel to demonstrate your understanding of the impact of organisational structures and cultures on the effectiveness of the organisation.

Your presentation must cover the following topics:

• an analysis of the characteristics of different organisational structures

• evaluate the importance of organisational culture theory in developing organisational effectiveness

Activity 3

Following your interview, the panel have found it difficult to select one applicant and have asked you to complete a final selection task applied to a specific organisation of your choice. You must create an information pack which demonstrates your understanding of how the organisation can improve employee effectiveness to respond to business opportunities.

Your information pack must include:

• an analysis of the culture and structure of the chosen organisation, including an evaluation of how they impact on its effectiveness

Activity 4

Congratulations - you have been selected as the new Organisational Development Officer. One of your first tasks is to evaluate the effectiveness of organisational decision making. Your line manager has asked you for a report. Your report must include:

• an analysis of different approaches to organisational decision making

• an assessment of management approaches to risk and uncertainty in decision making 

Evaluating of leadership theories

Leadership can be considered as a process wherein leaders provide guidance to the followers. According to Latham (2014), the leaders need to follow certain theories that may help them to be effective leaders of an organisation. Some of the theories include trait theory, behavioural theory and transformational theory and so on. These theories are different from one another and provide different approaches that may be useful for organisations. The leadership theories justify the fact that leaders can be either natural or derived from other people. Thus, the difference between these two leadership styles suggests that leadership need to be applied based on the situation at hand. For example, the behavioural theory of leadership focuses on the behaviours of the leaders. Nahavandi (2016) observed that this type of leadership assessment theory does not focus on the mental, physical or social characteristic of people. Similarly, the transformational theory relies on the interaction between individuals. This theory states that the leaders need to create a proper relationship with the followers in order to gain their trust and increase the motivation level of the employees. Thus, it can be said that the different views of the leadership theories can help in identifying the different traits required for leaders.

Evaluating impact of management styles

In order to motivate and lead a proper group of people, it is necessary that every manager adopt certain style and techniques. These styles are based on the characteristics of the managers as well as of the enterprise (Avolio and Yammarino 2013). Depending upon the requirements of an organisation it is necessary to understand the type of management that is required. Some of the most common management techniques include autocratic, democratic and laissez-faire. These can be considered as leadership styles as well depending on the role adopted in the organisation. The impact of these managerial styles is different as the nature of the job and the employees are different. For example, the impact of autocratic management style prevents employees from being involved in organisational decisions. This proves to be a negative factor for the employees as they may feel to be an invaluable part of the organisation. However, the democratic style provides proper motivation to the employees and provides them with an opportunity to share their thoughts. The decision-making sessions are conducted with the employees. Thus, as observed by McCleskey (2014) the managerial styles provide a different impact on the employees. The level of the job performed by the employees dictates the adoption of managerial styles.   

Evaluation of Leadership Theories

Analysis of the effectiveness of motivational theory

According to Armstrong and Taylor (2014), motivating employees in order to draw out the potential skill level is important for every organisation. The managers need to understand the needs of the employees and based on it motivation can be provided. Certain motivational theories exist that help the managers to understand the ways to motivate employees. The motivational theories suggested by Abraham Maslow, Herzberg and McClelland can be used in order to motivate employees and enhance their performance. Laudon and Laudon (2016) stated that these motivational theories focus on the motivation of the employees and provide a similar pattern of progress towards attaining satisfaction. For example, Maslow’s hierarchy states that employees must fulfil their needs based on various levels. The levels need to be achieved systematically in order to remain focused on personal goals. On the other hand, Herzberg identifies factors that provide motivation as well as hygiene factors. These are required in order to identify the factors that can help in motivating employees. Thus, the motivational theories aim to identify the different factors that instigate the employees to perform well in the organisation. The application of these theories can make employees feel valued and provide them with an opportunity to perform their skills in the organisation. Thus, the motivational theories play an important role in managing an organisation.

Analysis of theories relating to work relationships and interaction

Work relationship and interaction are important in order to ensure that the employees and employers maintain a cordial relationship with one another. This helps in improving the productivity of the organisation and the nature of communication between the members of the organisation also improve (Beardwell and Thompson 2014). Hence, it can be said that work relations are an important part of an organisation that leads to its success. In order to understand the work relationships and interaction that exists in an organisation, it is necessary to analyse certain theories. These theories highlight the importance of interaction and the manner in which such interactions can take place within the organisation. The social exchange theory can be considered as one of the most important theories related to work relationships. This theory states that the exchange of feelings and emotions between people are to be reciprocated successfully that provide a long-lasting impression. According to Elliot, Dweck and Yeager (2017), one-sided relationships are never possible and as a result, success cannot be attained by maintaining such relationships. Apart from this uncertainty reduction, the theory can also be applied in order to improve the relationship between employees and employers. This three-stage systematic process brings about a proper understanding of the individuals with icebreakers.

Evaluation of Impact of Managerial Styles on Organisational Effectiveness

Analysing characteristics of different organisational structure

The organisational structure is one of the most important aspects that help in keeping the organisation together. It can be said that every business follows a different organisational culture based on the type of work that is carried on. Hence, various types of organisational structures exist that have advantages as well as disadvantages. According to Alvesson and Sveningsson (2015), line organisational structure is one of the most common forms. The fact that it has a direct relationship with every level in the organisation makes it the most adopted structure. This helps in fast decision-making. Another form of organisational structure can be divisional organisational structure. This form of structure divides an organisation into departments and each department is provided with a structure that suits the functioning of the departments (Hogan and Coote 2014). The matrix form of organisational structure is also common among executives. This form of organisational structure is designed for permanent organisations by using specialist teams from various functional areas of an organisation. It converts a horizontal division and reports relationships to a hierarchical functional area in an organisation. Thus, this organisational structure is applied in an organisation in order to ensure proper management within the organisation. The organisational structure can help in maintaining balance in the organisational policies as well. 

Evaluating importance of organisational theory

Organisational theories are important in order to understand the theoretical implication of the policies and strategies that are implemented. These theories help in the application of different strategies in a practical context. As stated by Alvesson (2016) every theory contributes in a unique manner to a particular business strategy. For example, theories and models related to motivation help managers to understand the importance of the concept in organisations. The fact that motivation is one of the most important aspects of an organisation can be understood by the application of the organisational theories. The theories also provide the ways by which motivation can be provided to the employees. For example, the application of Maslow's motivational hierarchy needs is one of the most common forms of motivational theories used in order to encourage employees and meet their needs. Apart from this, theories related to the longevity of products can also be analysed. March (2013) stated that the organisational theories can also help the employees gain theoretical knowledge. Practical knowledge is important in order to survive in an organisation; however, theoretical knowledge is also an important factor for progress in organisations. The contribution made by the employees based on understanding the theoretical implications can have a huge positive impact on the improvement of their performances.

Analysis of Theories Relating to Work Relationships and Interaction

Handouts

Analysing innovation and creativity of organisations

Innovation and creativity are two of the important strategies that every business organisation need to undertake. In the modern world, these two strategies are important in order to remain competitive in the business (Northouse 2015). However, innovation and creativity cannot be related to both are separate terms. Innovation means an action or process that brings about changes in the existing pattern of an organisation. Creativity refers to the use of imagination in order to invent something that is unique. Hence, in this regard, it can be said that an organisation needs employees that can be both innovative as well as creative. In this regard, it can be said that organisations need to hire experts that can fit in the role of both the factors. The facilitation of innovation and creativity in organisations can help in creating a competitive advantage for an organisation. However, it needs to be kept in mind that the ideas of innovation and creativity cannot be repeated by other organisations. This may result in creating less value for the organisations. According to Bozeman and Su (2015), the use of VRIO analysis can be used in order to determine the rarity of the products. Thus, innovation and creativity need to be managed in an efficient manner by the organisation.

Evaluating importance of learning in organisation

Learning in any front is essential in order to gain knowledge about different prospects. These prospects help in creating a proper understanding of a particular topic and the manner by which the knowledge can be applied on an everyday basis. In the case of organisations, learning is important as it helps in the development of skills (Godin 2014). Innovation and creativity is an effective strategy that most organisations tend to use in order to gain a competitive advantage. However, it is to be kept in mind that these skills can be acquired by gaining proper learning and understanding of the practices. In this regard, it can be said that organisations need to focus on providing proper time for training and helping employees to learn in the workplace. The importance of such an activity is that it helps the employees to enhance their skills on a theoretical as well as practical level. According to Grimm and Brandert (2016), learning helps in solving various questions and doubts that an employee may have at a workplace. It helps in grooming the employee to face any challenges and overcome it with success. Failure to grasp the teachings may lead employees to underperform and remain inefficient in the organisation.

Activity 2

Evaluating effectiveness of teamwork

In order to gain success, it is necessary to maintain proper coordination between the different departments of an organisation. D’Innocenzo, Mathieu and Kukenberger (2016) suggested that teamwork is one of the best methods to apply while searching for success in the competitive market. The reason behind indulging in teamwork is the fact that it can help in gaining ideas, opinions and thoughts of different people. The workload can also be divided between the individuals and responsibility can be given based on the talents possessed by the team members. In this regard, it can be said that the effectiveness of team in an organisation can be understood by the way it is maintained and the contributions it provides to the organisation. The evaluation of such teams can be done by identifying the contributions made by the employees as a team and as an individual. In order to do so, a performance appraisal can be organised in order to understand the effectiveness of the team performances. Hayes (2014) stated that team performances are important in order to identify the manner in which every employee respond to one another. Team performance helps in building a good relationship between the employees of different department, cultures and backgrounds. Thus, this can be considered as an important aspect that every organisation needs to encourage its success. 

Analysis of effective change management in organisations

Managing changes is also one of the most important factors of an organisation. Changes are a constant occurring in the business environment. Every change that is maintained in an organisation needs to be such that it inspires changes. According to Matos and Esposito (2014), the changes that occur in an organisation affect the working of that organisation in many ways. This includes changes in the attitudes of the employees and the manner in which the functions of an organisation are considered. These changes need effective management as the implementation of these changes require cost and time of an organisation. Sometimes the changes need to be enforced by convincing the employees about the need. This results in a huge employee turnover, as most employees believe that changes may cause a negative influence in the workplace. Thus, it can be said that in order to manage change effectively, monitoring of the changes needs to be done. As stated by O'Neill, Beauvais and Scholl (2016) the manner in which the monitoring takes place need to be such that it helps in maintaining total control on the changes. Any deficiencies that are observed by the managers need to be put under analysis in order to understand the reasons behind the occurrence of such deficiencies.

Analysis of Characteristics of Different Organisational Structures

Analysing the culture and structure of the organisation

In order to understand the effectiveness of culture and structure in an organisation, it is important to consider an example of a well-established company. In this regard, an example can be taken about BHP Billiton, one of the most famous organisations in Australia and the world. The company follows a hierarchical structure that consists of committees related to various departments and possible occurrence of events in the organisation. The Chief Executive Officer (CEO) delegates and is accountable to the Board Government for any activity that is carried on in the organisation. The culture of the company is such that it provides for maintaining the reputation it holds in the Australian business market. The organisational structure and the culture support one another in a way that it can propel BHP Billiton as a reputed organisation in the world. According to Goetsch and Davis (2014), the culture and structure of an organisation help in maintaining the quality and the efficiency of employees. In a company like BHP Billiton, this is important in order to maintain its reputation in the industry. Thus, the effectiveness of the structure, as well as the culture, can be determined based on the management policies followed by the CEO of the organisation.  

Analysis of different approaches to organisational decision-making

According to Blankenship (2017), organisational decision-making is an important process for the managers. The decisions taken by the managers of an organisation need to be such that it remains aligned with the strategies of the organisation. The strengths and weaknesses of the organisation need to be taken into consideration before making any decisions. In this regard, it can be said that different approaches to organisational decision-making are considered that highlights the manner in which decisions need to be taken and the factors that need to be considered. One such approach is the autocratic decision-making. This type of approach has a low impact on an organisation due to the small decisions that are taken in the organisation. The top-level managers are solely responsible for the managerial decisions that are taken in the organisations. Apart from this, other approaches include participatory decision-making approach. In this approach, the employer, as well as the employees, is responsible for taking decisions that aid an organisation. Thus, the approaches to decision-making can be implemented based on the manner in which an organisation is managed. The risk of failure can be reduced by applying the proper approach to decision-making within an organisation (Csaszar and Eggers 2013). 

Importance of Organisational Culture Theory in Developing Organisational Effectiveness

Assessing managerial approaches to risk and uncertainty

Risk and uncertainty can be considered as a regular occurrence for any organisation. The risk and uncertainty need to be managed by implementing proper and suitable strategies that can help in reducing the loss and damage that may be caused due to it. However, as stated by Pettigrew (2014) the approach to risk and uncertainty management needs to be done by keeping in mind a systematic process of managing risks. For example, the basic process for managing risk is to identify the cause of the risk. The origin of the risk factors is important as it helps in understanding the various reasons for the occurrence of the risk. Uncertainty management needs to be done by encouraging people to venture new adventures. One of the main reasons behind the uncertain nature of employees is the fact that they fear of failure (Alvesson 2016). Most managers reprimand the employees for the failures and as a result, the creativity within the employees is hindered. This needs to be reduced in order to reduce uncertainty. It has been seen that organisations located in Asian countries have a high rate of uncertainty risk due to fear of losing a job. Thus, this is an important aspect of uncertainty within organisations.

Evaluating the effectiveness of organisational decisions

In order to be successful in an organisation, every manager needs to make decisions that cover all aspects of an organisation. The aligning of the decisions need to be done in a manner that can help an organisation gain a competitive advantage (Blankenship 2017). However, it is seen that some of the decisions may not be as effective as others due to various natural and unnatural causes. The decisions taken need to be evaluated in such a manner so that the same decisions can be applied to a different setting with the same effectiveness. In this regard, it can be said that the evaluation of the organisational decisions can be done based on the results it gains for the organisation. This evaluation can be done as a form of performance appraisal after every six months or a year. The evaluation needs to consider all the bases such as identifying the situation based on which the decision was taken and the process required for executing the decisions (Grimm and Brandert 2016). Considering these two aspects in the evaluation can help in analysing the effectiveness of the decisions that are taken by the managers. 

References

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