Vertical Organization: A Case Study

Vertical
Vertically structured or "tall" companies have a chain of management, usually with a CEO at the top making decisions and then delegating authority to lower-level managers, according to AllBusiness.com. Horizontal, also called flat, companies have almost no middle managers--meaning that high-level managers handle day-to-day tasks and usually interact with customers and front-line employees personally. The vertical organization has a structure with power emanating from the top down. There's a well-defined chain of command with a vertical organization, and the person at the top of the organizational chart has the most power. Employees report to the person directly above them in the organizational structure. Each person is responsible

for a specific area or set of duties.
Largely, businesses have modeled their systems of organization after vertical structures. Vertical structure can be efficient because there is ultimately one point of authority to make decisions and execute initiatives.

Horizontal
A horizontal organization has a less-defined chain of command. Employees across lines have similar input into how the organization is run. Instead of each person having clearly defined duties, employees may work in teams, with everyone on the team having input. Employees may perform many different functions and may report to several supervisors, rather than a single boss. Project managers or team leaders report to a team of supervisors, with members of each team being essentially equal in terms of power.
Successful horizontal organizational structure allows each individual within a system to have and assert a unique perspective and in so doing, add to and shape the company in which he works. Eliminating the hierarchical nature of vertical organization deemphasizes the value of power and underlines the value of collaboration, which balances or "flattens" power within these structures.

Current use of both horizontal and vertical coordination
In past days, only boss of any business (manager) can take decisions regarding works. But in these days employee can give their idea or view for making decision in an any organization. So we can say horizontal coordination is more effective than vertical in these days.

ELEMENT 2 –

2.1

Two content theories of motivation:

 Maslow’s hierarchy needs

Physiological Needs

These include the most basic needs that are vital to survival, such as the need for water, air, food, and sleep. Maslow believed that these needs are the most basic and instinctive needs in the hierarchy because all needs become secondary until these physiological needs are met.

Security Needs
These include needs for safety and security. Security needs are important for survival, but they are not as demanding as the physiological needs. Examples of security needs include a desire for steady employment, health insurance, and pension plan.

Social Needs
These include needs for belonging, love, and affection. Maslow considered these needs to be less basic than physiological and security needs. Relationships such as friendships, romantic attachments, and families help fulfill this need for companionship and acceptance, as doe’s involvement in social, community, or company.

Esteem Needs
After the first three needs have been satisfied, esteem needs becomes increasingly important. These include the need for things that reflect on self-esteem, personal worth, social recognition, and accomplishment.

Self-actualizing Needs
This is the highest level of Maslow’s hierarchy of needs. Self-actualizing people are self-aware, concerned with personal growth, less concerned with the opinions of others, and interested fulfilling their potential an they want participate to take decision.

 Mc Cleland’s achievement motivation theory:
Need for achievement: Need for achievement refers to an individual's desire for significant accomplishment, mastering of skills, control, or high standards. The term was first used by Henry Murray and associated with a range of actions. These include: "intense, prolonged and repeated efforts to accomplish something difficult. To work with singleness of purpose towards a high and distant goal. To have the determination to win". The concept of NACH was subsequently popularized by the psychologist David McClelland.
This personality trait is characterized by an enduring and consistent concern with setting and meeting high standards of achievement. This need is influenced by internal drive for action (intrinsic motivation), and the pressure exerted by the expectations of others (extrinsic motivation). Measured by thematic appreciation tests, need for achievement motivates an individual to succeed in competition, and to excel in activities important to him or her.
The Need for affiliation: This is a term that was popularized by David McClelland and describes a person's need to feel a sense of involvement and "belonging" within a social group; McClelland’s thinking was strongly influenced by the pioneering work of Henry Murray who first identified underlying psychological human needs and motivational processes. It was Murray who set out taxonomy of needs, including achievement, power and affiliation—and placed these in the context of an integrated motivational model. People with a high need for affiliation require warm interpersonal relationships and approval from those with whom they have regular contact. People who place high emphasis on affiliation tend to be supportive team members, but may be less effective in leadership positions.

Need for Power: In McClelland's book The Achieving Society N-Power helps explain an individual's imperative to be in charge. According to his work there are two kinds of power, social and personal.
People who exhibit N-Power tendencies are most satisfied by seeing their environment move in a certain direction, due to their involvements. As an example of the need for personal power, most corporate leaders seek high level positions so as to control the direction in which their company is moving. As an example of social power, most people might agree that Nelson Mandela not only has socio-political Power, but uses this influence to bring to light social issues in order to further his desire for peace and equality on earth.
There also exists gender differences among males and females; men are more apt to take challenges and respond quite aggressively irrespective of women who are socially restrained and traditional in their behavior.

B) Two process theories of motivations:
 Skinner’s reinforcement theory
Reinforcement theory of motivation was proposed by BF Skinner. This theory states that individual’s behavior is a function of its consequences. It is based on “law of effect”, i.e., individual’s behavior with positive consequences tends to be repeated, but individual’s behavior with negative consequences tends not to be repeated.
 Reinforcement theory of motivation overlooks the internal state of individual, i.e., the inner feelings and drives of individuals are ignored by Skinner. This theory focuses totally on what happens to an individual when he takes some action. Thus, according to Skinner, the external environment of the organization must be designed effectively and positively so as to motivate the employee. This theory is a strong tool for analyzing controlling mechanism for individual’s behavior. However, it does not focus on the causes of individual’s behavior.
Reinforcement theory explains in detail how an individual learns behavior. Managers who are making attempt to motivate the employees must ensure that they do not reward all employees simultaneously. They must tell the employees what they are not doing correct. They must tell the employees how they can achieve positive reinforcement.

 Vroom’s expectancy theory:

The expectancy theory was proposed by Victor Vroom in 1964.The theory states that the intensity of a tendency to perform in a particular manner is dependent on the intensity of an expectation that the performance will be followed by a definite outcome and on the appeal of the outcome to the individual.

This theory also states that employee’s motivation is an outcome of how much an individual wants a reward , the assessment that the likelihood that the effort will lead to expected performance and the belief that the performance will lead to reward. In short, Valence is the significance associated by an individual about the expected outcome. It is an expected and not the actual satisfaction that an employee expects to receive after achieving the goals. Expectancy is the faith that better efforts will result in better performance. Expectancy is influenced by factors such as possession of appropriate skills for performing the job, availability of right resources, availability of crucial information and getting the required support for completing the job.

Element 2 –

2.2
Human Behaviour Model
Theme
It bears the existing and newly developed theories and methods of the relevant social sciences upon the study of human behaviour ranging from personality dynamics of individuals to the relations of culture.
Features
• As management is the process of getting things done by people, managers should understand human behaviour.
• Emphasis is put on increasing productivity through motivation and good human relations.
• Motivation, leadership, communication, participative management and group dynamics are the central core of this approach.
Uses
• It suggests how the knowledge of human behaviour can be used in making people more effective in the organization. An individual’s behaviour is not determined by organization factors alone but also by his attitude, pressure, conflicts of cultural environment etc. Hence these factors must be taken into account.
Limitations
• Managers can be better placed by understanding human behaviour but equating management with human behaviour is untenable
Traditional Model
Theme
Organization is essentially a cultural system composed of people who work in cooperation. For achieving organization goals, a cooperative system of management can be developed only by understanding the behaviour of people in groups.
Features
• Organization is a social system, a system of cultural relationships.
• Relationships exist among the external as well as internal environment of the organization.
• Cooperation among group members is necessary for the achievement of organization objectives.
• For effective management, efforts should be made for establishing harmony between goals of the organization and the various groups therein.
• Uses
• It has real significance to the practicing manager in the sense that managers operate in social system and the organization is likely to succeed if the demands of the society in which it operates are fully recognized.
Limitations
• It spreads the boundary and application of management beyond the true concept of organization. For example, There may be many groups which may not be truly called organization and hence no question of management.
• This approach is broader than management and in practice it tends to overlook many management concepts, principles and techniques that are important to management.

• Traditional model:
Motivation was one of the earliest concepts with which managers and management researchers wrestled. A so called traditional model is often associated with Frederick Taylor and scientific management. Managers determined the most efficient way to perform repetitive tasks and then motivated workers with a system of wage incentives – the more workers produced, the more they earned. The underlying assumption was that managers understood the work better than workers, who were essentially lazy and could be motivated only by money. A legacy of this model is the practice of paying salesperson on a commission biases

• Human relation model:
A so called human relations models is often associated with Elton Mayo and his contemporaries. Mayo ad other human relations researchers found that the boredom and repetitiveness of many tasks actually reduced motivation, while social contacts helped create and sustain motivation. The conclusion is that managers could motivate employees by acknowledging their social needs by making them feel useful and important. Modern day legacies of this model include suggestions boxes, company uniforms, organization newsletters, and employee input in the performance evaluation process. We see this at Wal-Mart.
Under the traditional model, workers had been expected to accept management’s authority in return for high wages. Under the human relations model, workers were expected to accept management’s authority because supervisors treated them with consideration and allowed them to influence the work situation. Note that the intent of managers remained the same: to get workers to accept the work situation as established by managers.

ELEMENT 2 –
2.3
Management style:
In an organization, managers perform many functions and play many roles. They are responsible of handling many situations and these situations are usually different from one another. When it comes to handling such situations, managers use their own management styles. Some management styles maybe best for the situation and some may not be. Therefore, awareness on different types of management styles will help the managers to handle different situations the optimal way. In short, a management style is a leadership method used by a manager
Two types of management styles are given below:
Taylorism | Scientific Management

This is one of the earliest management styles. Propounded and developed by Frederick Winslow Taylor in 1900, the concept of Scientific Management is also known as "Taylorism." This method believed in the concept of "one best way” to perform a certain task. In general, Taylorism believed in the following principles.
Decision-making should be under the purview of the management. This ensures that emotions are not the governing factor for a business. More so, decision-making is more professional in the hands of managers because they can be unbiased and have a scientific approach towards management.
Developing a standard method to perform each job. This helps in having uniformity in the production. Standard methods speed up the production process and create an environment of expertise.
Selecting workers with appropriate abilities for each job to create an environment of excellence and complete understanding of the task. Workers to be trained on the standard methods that were previously developed and fine-tuned. Providing complete support to employees so that they can plan their work and eliminate interruptions.
In case of increased output by a certain employee, he/she be rewarded with a wage incentive, or bonus.

ADVANTAGES
 Better utilization of resources through scientific techniques
 Scientific selection and training of employees leads to better workforce which ensures increase in efficiency
 Harmonious relationship between the workers and the management
 Standardization of tools, materials, techniques , equipment’s for increasing efficiency
 Reduction of production cost

DISADVANTAGES
 It is based upon one best way and is applicable for simple organizations than that for today’s dynamic and complex organization
 It focuses on individual performance than group efforts and divides the workers into efficient and inefficient categories
 It is focused on specialization and repetition of jobs to increase the productivity which reduces innovation and creativity and promotes monotony.
 It neglects human factor because it motivates workers to work for monetary benefits rather than human resource development and resources.
 There is no scope for creativity of employees because they are developed by manager which promotes frustration.

Fayolism | Process Approach:-
This is the second of the early business management styles. The process approach was propounded by Henri Fayol in the 1920s. As such, it is popularly known as "Fayolism." Fayolism is a modification of Taylorism. However, the modifications made this management style very different from Taylorism as it was broader in perspective. Fayolism follows 14 principles of administration:
Division of work
Authority
Discipline
Unity of command
Unity of direction
Subordination of Individual Interests to the Common Interest
Remuneration of personnel
Centralization
Scalar chain
Order
Equity
Stability of personnel tenure
Initiative
Esprit de corps (Union is strength)

ADVANTAGES
By applying the "process approach" an organization should be able to obtain the following types of benefits:
* The integration and alignment of its processes to enable the achievement of its planned results.

* An ability to focus effort on process effectiveness and efficiency.
* An increase in the confidence of customers and other interested parties as to the consistent performance of the organization.
* Transparency of operations within the organization.
* Lower costs and shorter cycle times through effective and efficient use of resources.
* Improved, consistent and predictable results.
* The identification of opportunities for focused and prioritized improvement initiatives.
* The encouragement and involvement of people, and the clarification of their responsibilities.
* The elimination of barriers between different functional units and the unification of their focus to the objectives of the organization.
* Improved management of process interfaces.
ELEMENT 2 –

2.4
The two job designs are job enrichment and job enlargement. The difference between job enrichment and job enlargement is quality and quantity. Job enrichment means improvement, or an increase with the help of upgrading and development, whereas job enlargement means to add more duties, and an increased workload. By job enrichment, an employee finds satisfaction in respect to their position and personal growth potential, whereas job enlargement refers to having additional duties and responsibilities in a current

job description.

Job enlargement is a vehicle employers use to put additional workload on employees, perhaps in economical downtime. Due to downsizing, an employee might feel lucky to have a job at all, despite the fact that his duties and responsibilities have increased. Another approach is that by adding more variety and enlarging the responsibilities will provide the chance of enhancement and more productivity. Job enrichment involves organizing and planning in order to gain more control over their duties and work as a manager. The execution of plans and evaluation of results motivates workers and relieves boredom. Job enlargement and job enrichment are both useful for motivating workers to perform their tasks enthusiastically.

Although job enlargement and enrichment have a relationship with each other, they also possess some distinct features that differentiate them, such as area of expansion, mutual reliance, allocation of duties and responsibilities, motivation and profundity. Job enrichment is largely dependent on job enlargement, whereas job enlargement has no such dependency. Job enlargement expands horizontally when compared to job enrichment, which expands vertically. Vertical growth of job or augmentation is helpful to obtain managerial rights.

In spite of mutual dependency, managerial duties are sanctioned, as in the case of enhancement. The employee focuses more on job depth, which does not happen in job enlargement. Job enrichment has a greater motivational impact than job enlargement.

The job enlargement theory involving horizontal expansion to increase job satisfaction and productivity is relatively simple, and applied in numerous situations. Job enrichment, when compared to job enlargement, not only includes more duties and responsibilities, but also gives the right of decision making and control.

1. Job enrichment is dependent on job enlargement, whereas job enlargement is not dependent on enrichment.

2. Job enlargement means taking charge of more duties and responsibilities which are not mentioned in the job description.

3. Job enrichment gives more control and managerial access to perform tasks and responsibilities.

4. Job enlargement is horizontal, whereas job enrichment is vertical expansion.

5. Job enlargement and job enrichment are tools for motivation and growth.

ELEMENT 2 –

2.5

Social influence occurs when one's emotions, opinions, or behaviours are by affected others.
Herbert Kelman identified three broad varieties of social influence.
1. Compliance is when people appear to agree with others, but actually keep their dissenting opinions private this can be affect individual’s work effectiveness and motivation by an expected reward and punishment.
2. Identification is when people are influenced by someone who is liked and respected, such as a famous celebrity. Advertisements that rely upon celebrities to market their products are taking advantage of this phenomenon. The desired relationship that the identifier relates with the behaviour or attitude change is the “reward” in motivation.
3. Internalization is when people accept a belief or behaviour and agree both publicly and privately. Internalization is the process of acceptance of a set of norms established by people or groups which are influential to the individual. The individual accepts the influence because the content of the influence accepted is intrinsically rewarding. It is congruent with the individual’s value system, and according to Kelman the “reward” of internalization is “the content of the new behaviour on work place.
b. Implication of social influence for group functioning and team work
A group consists of two or more people interacting interdependently to achieve a common goal. Interaction is the most basic aspect of a group as it suggests who is in the group and who is not. Groups exert tremendous influence on us. They are social mechanisms by which we acquire many beliefs, values, attitudes, and behaviours.
Group develop have four stages:-
Forming Group members try to orient themselves by “testing the waters”.
Storming Confrontation and criticism occur as members determine whether they will go along with the way the group is developing.
Forming Members resolve the issues that provoked the storming, and they develop social consensus.
Performing the group devotes its energies toward task accomplishment.
Adjourning Rites and rituals that affirm the group’s previous successful development are common. Members often exhibit emotional support for each other.

ELEMENT 3 –

3.1

Management and leadership: Leadership and manager ship are two synonymous terms is an incorrect statement. Leadership doesn’t require any managerial position to act as a leader. On the other hand, a manager can be a true manager only if he has got the traits of leader in him. By virtue of his position, manager has to provide leadership to his group. A manager has to perform all five functions to achieve goals, i.e., Planning, Organizing, Staffing, Directing, and Controlling. Leadership is a part of these functions. Leadership as a general term is not related to manager ship. A person can be a leader by virtue of qualities in him. For example: leader of a club, class, welfare association, social organization, etc. Therefore, it is true to say that, “All managers are leaders, but all leaders are not managers.”
A leader is one who influences the behavior and work of others in group efforts towards achievement of specified goals in a given situation. On the other hand, manager can be a true manager only if he has got traits of leader in him. Manager at all levels are expected to be the leaders of work groups so that subordinates willingly carry instructions and accept their guidance. A person can be a leader by virtue of all qualities in him.

Management is referred as Leadership is referred as
Coping with complexity Coping with and promoting change
Planning and Budgeting Setting a Direction
Organizing and Staffing Aligning People
Controlling and Problem Solving Motivating and Inspiring People
Effective Action Meaningful Action

• The manager administers; the leader innovates.
• The manager is a copy; the leader is an original.
• The manager maintains; the leader develops.
• The manager focuses on systems and structure; the leader focuses on people.
• The manager relies on control; the leader inspires trust.
• The manager has a short-range view; the leader has a long-range perspective.
• The manager asks how and when; the leader asks what and why.
• The manager has his or her eye always on the bottom line; the leader’s eye is on the horizon.
• The manager imitates; the leader originates.
• The manager accepts the status quo; the leader challenges it.
• The manager is the classic good soldier; the leader is his or her own person.
• The manager does things right; the leader does the right thing
Evolution of leadership
Some important changes in the area of leadership for the next few decades occur. We will move from the concept of placing leadership group responsibility and accountability in the hands of the individual. When the group with a focus on people with high levels of cooperation objective enough determination and hard work mode in the future, it will be placed in the middle.
Leadership teaching of most of the twentieth century focused on directive, autocratic management. The boss was expected to know the answers or at least what to do. It was usually a man for most of the period would tell people what to do and they did what they were told. Strict rules were in force and there were serious consequences for violating the social system.

ELEMENT 3:-

3: Two different leadership styles and their skills and attributes:-

Transactional Leadership
This leadership style starts with the idea that team members agree to obey their leader when they accept a job.

The "transaction" usually involves the organization paying team members in return for their effort and compliance. The leader has a right to "punish" team members if their work doesn't meet an appropriate standard.
Skills and attributes:
 Self-awareness: Knowledge of your own values, passions, skills, strengths and weaknesses, an ability to admit and learn from mistakes and to seek information to fill knowledge gaps.
 Integrity: A strong sense of "what is right" and a demonstration of ethical practices that sets the tone for others. A commitment to teaching by example.
 Courage: The strength to act in accordance with your own values and the greater good despite pressures pushing you in other directions. The ability to put the cause before the desire to be popular. All skills should be include this type of leadership

Autocratic Leadership
Autocratic leadership is an extreme form of transactional leadership, where leaders have complete power over their people. Staff and team members have little opportunity to make suggestions, even if these would be in the team's or the organization's best

interest.
Skills and attributes:
 Confidence: A belief in your ability to meet most challenges that come your way.
 Vision: A strong sense of where you are going as a person and where you think society, your community and your organization should be going – and how it might get there.
 Enthusiasm: A lively interest in the people, issues and events around you, a feeling of excitement about the possibilities, and the energy to guide them towards fruition.
 Innovation: The ability to "think outside the box;” take risks and develop new and effective solutions to old and emerging problems.

Element 3 –
3.3:-
TRANSACTIONAL LEADERSHIP STYLE
Strengths: Although this might sound controlling and paternalistic, transactional leadership offers some benefits. For one, this leadership style clarifies everyone's roles and responsibilities. Another benefit is that, because transactional leadership judges team members on performance, people who are ambitious or who are motivated by external rewards – including compensation – often thrive.
Weaknesses: The downside of this leadership style is that team members can do little to improve their job satisfaction. It can feel stifling, and it can lead to high staff turnover.
Transactional leadership is really a type of management, not a true leadership style, because the focus is on short-term tasks. It has serious limitations for knowledge-based or creative work. However, it can be effective in other situations.
AUTOCRATIC LEADERSHIP STYLE
Strengths: The benefit of autocratic leadership is that it's incredibly efficient. Decisions are made quickly, and work gets done.
Weaknesses: The downside is that most people resent being treated this way. Therefore, autocratic leadership often leads to high levels of absenteeism and high staff turnover.