Management and Leadership of Organizations - Assignment Example

Management and Leadership in Organizations Affiliation: Management and Leadership in Organizations Organization The term organization is defined as a social group of people, managed and structured to achieve particular goals or to chase organization’s collective goal. Organizations are commonly formed on some structures which define the allocation of activities and authority of control for specific functions. There are various types of organizational structure which organizations apply in their firm depending on its size, the technology it uses, business environment and life cycle of the business.

The change in organizational structure is identified when organizational revolution is identified. The intense competition, globally technology based environment of the business and other such factors surrounds today’s business. It is also to mention here that due to globalization and other factors, businesses have grown to increased number of firms and also modified their management by involving new organizational structures, these structures are more like sphere or diamond like structure rather than traditional pyramid structure.

During globalization various multinational organizations from west widened their business across the globe. And by the change in business organizations that previously were just focusing on internal functions and boundaries now have to focus on external stakeholders that include suppliers, vendors, customers, communities around them and regulatory agencies of the government. There are some theorists that believe that organizations getting away from their traditional approach of focusing their inner which are bureaucratic are focused toward flatter structure, and these structures are more organic that focuses towards markets.

However, the modification in the environment started to evolve, the organizational structure at that time seemed incapable of meeting the requirement expected from them. As a result, emergence of new organizational structures is developed to meet the requirement imposed by the opportunities and constraints of environment. It is observed that from the past two decades there are a number of new organizational structures have been formed such as horizontal organization, flat organizations, spider web organization, starburst, virtual, hypertext, matrix, cluster and inverted pyramid organizations etc.

Despite all these modification the basic concept of the organizational structure remained same which is division of tasks among various functions and coordinate with them, with the theme of equilibrium in job related specialization among groups, intergroup and organization is necessary. The methods in which these specialization (decentralization, differentiation) and coordination (centralization, integration) can effectively be attained has changed and has been modified over time (Bowditch et al., 2007). Network structure One of the modern organizational structures is network structure.

This organizational structure is based on outsourcing of various functions of the business; gather volunteer workers, more use of information technology and minimum use of model. Most of the network based organizations favors democratic decision making in which member of the organizational structure are involved. A network structure outsources various business functions and this outsourcing is done for reducing the cost of the operation of business by outsourcing to experts in that area. It is also done for structure flexibility and future expansion of the organization.

Also volunteer labor results in lower cost for the business. These volunteer labors can be professional or amateur. It is found that the organization with such structure are more focused on effective use of information, technology service and utilize the services which result in low cost of business operation and more effective communication. Also, by outsourcing, most of the business functions minimized model is required for day to day operations which results in low operating cost of the business (Lewis et al., 2007). There are various examples of business organizations based on network structure.

Organization such as Asea Brown Boveri is a good example of network structure. This is a giant company and it split its business into 1300 companies as distinct separated business units. It is found that the company provides all of the energy and resources through its corporate center with computer network and the vital part of the structure of the company is knowledge sharing. Thermo-Electron is another example of such a structure in which 80 percent of its staff works for group of companies known as ‘spin-outs’ (Kotter, 1996).

Leaders and managers Management and leadership are two different aspects; they are not similar to each other but linked and are necessary for each other. There are various differences between manager and leaders. Leaders are innovator and on the other side managers are more related to administration. Manager need to follow the guidelines related to his job but leaders are unique and different from others. Manager need to maintain himself, on the other hand leaders develops. Manager follows the structure and system in which he is present but leader is more oriented towards people.

Finally the manager has to do things right and on the other hand leader does the things which they assume are right (O’Neill, 2007). References Bowditch, J. L., Buono, A. F., & Stewart, M. M. (2007). A primer on organizational behavior. John Wiley & Sons Inc. Kotter, J. P. (1996). Leading change. Boston, MA: Harvard Business School Press. Lewis, P. S., Goodman, S. H., Fandt, P. M., &Michlitsch, J. F. (2006). Management: Changes for Tomorrow's Leaders. South-Western Pub. O'Neill, A. (2011). Manager to Leader: Skills and Insights for a Successful Transition.

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