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What Is Leadership?
Often researchers and practitioners do not distinguish between
leadership and management. However, there are some key differences and
understanding these differences can be helpful for organization
improvement.
Leadership is the ability to influence a group toward the achievement of
goals. A leader does not have to be someone who holds a formal position or
title. They can emerge from a group and provide vision and motivation to
those around them.
Management deals with the complexity of the organization and works with
planning, organizing, leading and controlling to bring about order and
consistency in the organizatio
Definition of Power
Power refers to the capacity one person has over the other person to get
them to do what they want. Inherent in this definition is the idea of
dependency. The stronger the relationship or the dependency that one
person has when the other possesses something they want or requires, the
greater the dependency on that person.
Contrasting Leadership and Power
Leadership and power are two different concepts and need to be defined
separately. Leadership is focusing on goal achievement along with their
followers. Power is used as a way to accomplish the goal and often
followers are also means to accomplish the goal. Leadership will focus on
using their leadership downward to influence others to help them achieve
their tasks. Whereas power uses influence to gain something upward or
laterally.
Bases of Power
There are two main bases of power, formal and personal:
Formal Power:Formal power is defined more by the position a person
will hold in the organization. A person with formal power can utilize
different power bases to accomplish their tasks. The first is coercive power
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where employees fear negative consequences if they don’t do what they
are told. Reward power is the ability to distribute rewards that others see as
valuable and they will thereby accomplish the goals or tasks to get the
reward. The last base is legitimate power where the formal authority to
control and use resources is then based on the person’s position in the
formal hierarchy.
Personal Power: The second major form of power is personal power
which comes through the individual’s personality and characteristics.
This is often more effective than formal power. Personal power can be
based on expert power, the individual’s special skills or knowledge or
referent power, as well as their influence based on the personal traits or
resources they can offer to others.
Dependency: The Key to Power
Central to the concept of power is dependency. The greater a person’s
dependency on another, the more power they hold over that person. When
resources are very important, scarce, or there is no easy substitute, then the
use and amount of power will rise in an organization.
Power Tactics
There are a number of power tactics an individual can use or ways in
which they can make the power base work for them by moving people into
specific actions. Nine influence tactics like: Legitimacy; Rational
persuasion; Inspirational appeals; Consultation; Exchange; Personal
appeals; Ingratiation; Pressure and Coalitions.
Factors Influencing Power Tactics
Many factors can influence the effectiveness of the power tactics
discussed. Their ability to encourage the desired behavior could depend on
the sequencing of the tactics. It is often better to start with softer tactics,
such as exchange, and work up to harder tactics such as pressure. The
success of the tactics will, however, greatly depend on the political skill of
the user and the context or culture of the organization.
What Is Organizational Structure?
Organizational structure depicts how job tasks are formally divided,
grouped, and coordinated. The key elements of organizational structure
include work specialization, departmentalization, chain of command, span
of control, centralization and decentralization, and formalization.

1. Work Specialization
   A key part of organizational structure understands the degree to which
   tasks are divided into separate jobs or work specialization. The division of
   labor is helpful in creating the most efficient way to utilize employee skills,
   increase their skills, and maximize their input. When division of labor is
   utilized an organization can more effectively use specialized training and
   specialized equipment to accomplish their desired productivity and quality
   goals.
   Further, work specialization can cause greater economies, but in some
   cases it can cause diminishing returns due to repetition which can lead to
   boredom. Job enlargement can be effective in creating greater efficiencies
   than specialization does.
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2. Departmentalization
   Departmentalization defines how jobs are grouped together. There are a
   number of options to choose from when grouping jobs – you could
   organize around function, product, location, process, or customer. When
   jobs are grouped, departments are formed.


3. Chain of Command
   The chain of command represents the line of authority present in
   decision making. Embedded in the chain of command is the inherent right
   of a manager to give orders and expect the orders to be followed. Unity of
   command is the idea that a subordinate should have only one superior to
   report to so that directions and the chain of command are clear.


4. Span of Control
   The fourth element of structure is span of control. This concept looks at
   how many workers a manager can effectively direct toward organizational
   goals. Wider span allows for more efficiency because you need fewer
   managers. However, it can also limit the amount of time and direction a
   manager can give to their employees. A narrow span can allow for more
   direction but can add layers of management, increase the complexity of the
   vertical communication, and encourage overly tight supervision, limiting
   employee autonomy.


5. Centralization and Decentralization
   Centralization is the degree to which decision making is concentrated at
   a single point in the organization, typically at the top. Decentralization
   represents an organization that spreads decision making throughout the
   organization.


6. Formalization
   Formalization is the degree to which jobs within the organization are
   standardized. When there is high formalization, workers have very little
   control over how they do their work and they will be required to follow a
   number of rules and procedures. Lower formalization will tend to allow for
   different job behaviors to get the job done, giving workers more control
   over their work.
   Common Organization Designs: Simple Structure
   There are a number of organizational structures available to companies.
   The first and most basic structure is the simple structure. This structure has
   a low degree of departmentalization, wide spans of control, and centralized
   decision making with little formalization in job design.
   Common Organizational Designs: Bureaucracy
   Another type of organizational design is bureaucracy. In a bureaucratic
   organization, there will be a great deal of structure. The tasks will be
   completed through specialization and they tend to be formalized through
   rules and regulations. Departments will be highly defined and authority is
   centralized. Decision making will follow a strict chain of command and
   there will be narrow spans of control. The bureaucratic organization will be
   one that is highly defined and very controlled.
   Bureaucracies have both strengths and weaknesses.They tend to offer
   economies of scale that are beneficial to the organization. This structure
   will minimize duplication of personnel and equipment through
   organization of jobs and departments. Communication will be strong and
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   decision making is centralized. However, this type of structure is not
   without its weaknesses. In a bureaucratic environment, conflict often arises
   around organizational goals and unit goals, people can become obsessive
   about rules and regulations, and employees don’t always know how to deal
   with problems because employees are not empowered to make decisions.
   Common Organizational Designs: Matrix
   The matrix structure is another common organizational design. This
   structure creates dual lines of authority and combines functional and
   product departments in a way to effectively meet organizational goals.
   The key elements of the matrix structure is that it gains the interactions
   between the functional and product departments by coordinating complex
   and interdependent activities to help reach the goals set forth in an efficient
   manner opening up avenues for new ideas to achieve the company’s
   mission. The matrix structure also breaks down the unity-of-command
   concept as the lines of authority are blurred.
   New Design Options: Virtual Organization
   Virtual organizations are developing as acceptable organizational
   structures. This structure offers a small core organization that outsources
   many of its major functions to competent suppliers. Virtual organizations
   are highly centralized with virtually no departmentalization to provide
   maximum flexibility, focusing on what the organization does best. This
   type of organization reduces control over some of the key parts of the
   business.
   New Design Options: Boundaryless Organization
   Boundaryless organizations are set up to reduce the structure and tight
   control over work. They organize in a way to try to empower teams. They
   organize more in what is called T-form concepts in order to eliminate
   vertical and horizontal boundaries. They try to break down external
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   barriers to customers and suppliers through their structure and style of
   communication.
   Why Structures Differ
   Structures differ for a number of reasons. The first is that structure is set
   up to facilitate the strategy of the organization. If your organization is
   focusing on innovation as a key value, then they may be best served by an
   organic structure. Whereas, if they are looking at minimizing costs as their
   strategy, they will find that a mechanistic structure will work better.
   Strategy should always dictate structure instead of structure dictating
   strategy.
   Structures will also differ by organization size – the larger they get, they
   tend to become more mechanistic. They will differ by how much
   technology is used – the more routine the activities, the more mechanistic
   the structure should be. Structures will also differ based on the
   environment in which they exist. The more dynamic the environment, the
   more organic the structure will need to be to facilitate quick decisions and
   fast turnaround.
   Organizational Designs and Employee Behavior
   Organizational designs are not a good predictor of employee behavior.
   Research has shown that work specialization can lead to increased
   productivity but lower job satisfaction. Specialization has not been popular
   as employees are seeking more intrinsically rewarding jobs. Span of
   control has mixed results depending on individual differences in
   employees and organizational factors. Participative decision making has
   been found to be positively related to job satisfaction. Various factors will
   influence workers in their job satisfaction and their willingness to stay with
   an organization
   Organizational Culture
   Organizational culture is an important concept in studying how
   organizations behave. Culture has significant impact on how individuals
   interpret the impact of their behavior and make decisions about their
   actions. Culture is defined as a common perception held by the members of
   the organization or a sense of shared meaning.
   Cultures have 7 primary characteristics that define the organization.
   They are: innovation and risk taking, attention to detail, outcome
   orientation, people orientation, team orientation, aggressiveness, and
   stability.
   Do Organizations Have Uniform Cultures?
   There are several different groupings that most cultures fit into. These
   groups describe the organization in an effort to help increase the
   understanding of how an organization works. There are different aspects of
   culture that need to be defined to help lay a foundation for understanding
   what culture is.
   Dominant culture is the core values that are shared by the majority of
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   employees in the organization.Subcultures are when there are a variety of
   different cultures within the organization. These subcultures typically are
   divided by department and/or geographical separation.
   Core values are the primary values that most people in the organization
   accept.A strong culture is one in which the core values are intensely held
   and shared by most.These definitions are key components of a culture and
   will help you further understand organizational culture.
   What Do Cultures Do?
   Cultures take on distinct functions. Some of the things that cultures do
   are defining the boundary between one organization and others. They also
   convey a sense of identity for the members of the organization. If the
   cultures are strong, they can facilitate a continuous commitment to
   something larger than self-interest over an extended period of time.
   Cultures also help people know what to expect in the organization and can
   thereby enhance the stability of the social system. Through doing this, it
   can also serve as a sense-making and control mechanism for fitting
   employees into the organization.
   Culture as a Liability
   Culture can also be a hindrance to an organization. A company can
   become institutionalized when people value the organization more than
   what they provide. When cultures are strong, they can become a barrier to
   change as their values may not align with the values needed to embrace or
   facilitate the change. Cultures that may pressure employees to conform can
   be a barrier to hiring, developing, and promoting a diverse workforce.
   Finally, if a merger or acquisition occurs, one of the most difficult things to
   do is to merge the two cultures, causing many mergers to fail.
   How Culture Begins
   Cultures start from the very beginning of the organization with the
   founders. Founders will tend to hire and keep employees who view things
   in a similar fashion. They will also try to get employees to think about
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   things the way they do and socialize them to their point of view and ways
   of doing things. This is done so that the founders’ behavior will become the
   behavior to model after in order to succeed in the organization and to fit in.
   How Organizational Cultures Form
   Organizational cultures begin with the founder of the organization,
   continue through the hiring of people who see things similarly, and are
   enforced through top management and socialization.
   How Employees Learn Culture
   Employees learn the organizational culture through a number of avenues.
   They can gain an understanding of culture by hearing stories that present
   the past and provide explanations for current practices. Rituals, or
   repetitive sequences of activities, can reinforce the key values of the
   organization and provide insight into the culture. Material symbols such as
   dress codes, formal or informal, office size or style, and perks for key
   employees can denote who is important in an organization.
   Language is another way to learn about organizational culture as
   employees will express themselves in certain ways to indicate membership
   in the organization.
   Creating an Ethical Organizational Culture
   As cultures are created, it is important to incorporate ethics into the
   cultural norms from the very beginning. Certain characteristics will help
   develop high ethical standards, such as a high tolerance for risk, so people
   are not afraid to make mistakes; low to moderate in aggressiveness so that
   unethical behaviors are avoided and a focusing on the means as well as the
   outcomes so that ethics is embedded in both.
   A positive organizational culture is one that builds on employee
   strengths so that employees can develop and grow. It also rewards more
   than it punishes so employees are not afraid to try new things and feel good
   about what they are contributing. Finally, it emphasizes individual vitality
   and growth so that employees are operating at full potential.
   Organizational Development
   Organizational development is an area of study that is set up to
   determine what an organization needs to improve their effectiveness and
   employee well being. Some organizational development values include
   respect for people, trust and support, power equalization, confrontation,
   and participation.
   Six OD Techniques
   There are six commonly used organizational development techniques.
   The first is sensitivity training that sets up groups that seek to change
   behavior through unstructured group interaction by providing an
   environment of increased awareness of others and of themselves. This
   increases their empathy, listening skills, openness, and tolerance for others.
   The second technique is the survey feedback approach where the
   organization will use a questionnaire to identify discrepancies among
   member perceptions and then follow up with discussions and plans for
   improvement.
   Process consultation is the third technique. In this technique there is a
   consultant involved who gives the clients some insights into what is
   happening in the organization and helps to identify a process for
   improvement.
   The fourth technique is engaging in team building tools to increase
   trust and openness through increased interactions.Intergroup development
   is an organizational development tool that attempts to change the attitudes,
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   stereotypes, and perceptions that groups may have of each other.
   Finally, the sixth commonly used technique is appreciative inquiry.
   This process seeks to identify the unique qualities and special strengths of
   an organization which they then use to build on to improve performance
   through a process. This process includes discovery (identifying the
   strengths of the organization), dreaming (speculating on the future of the
   organization), designing (finding a common vision), and destiny (deciding
   how to fulfill the dream).
   Creating a Culture for Change: Innovation
   Many organizations attempt to create a culture for change through
   encouraging innovation. There are many sources of innovation or the
   process of coming up with a new idea that helps to improve a current
   process, product or service. Innovation can occur through structural
   variables, long-tenured management, limitation in resources, or increased
   communication between units. For innovation to occur, there needs to be
   an idea champion who actively promotes the innovation.
   Creating a Culture for Change: Learning
   Learning is another key component of creating a culture for change. A
   learning organization is one that has developed the continuous capacity to
   adapt and change. Learning organizations share some common
   characteristics such as sharing the same vision, getting rid of old ways of
   thinking, viewing the organization as a system of relationships, open
   communication, and working together to achieve a shared vision.
   Furthermore, to create a learning organization, managers must
   overcome some traditional organizational problems such as fragmentation,
   competition, and reactiveness. Learning can be managed by establishing a
   strategy that everybody understands and can buy into. Redesigning the
   organization’s structure to increase communication and interactions and
   reshaping the organization’s culture to reward risk-taking and good
   mistakes will help to increase the effectiveness of the learning initiatives.