Chapter 2: Internal environments of LSO's Flashcards Preview

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Flashcards in Chapter 2: Internal environments of LSO's Deck (18)
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Style-Autocratic -Ads and disads

Advantage is since communication is one way (top down) and control is centralised at the management level, decisions can be made very quickly because CEO doesn't need to consult anyone else before providing instructions to subordinates.

Disadvantage is that workers often feel unmotivated and disconnected from the organisation because they are not asked to contribute their thoughts to decision- making process. Employees also might feel undervalued.


Style- Persuasive

Is one where the manager attempts to sell decisions made.


- Centralised system of control and authority
- Communication is centralised
- More task-orientated
- places some value on employee contributions


Style- Persuasive- ads and disads

- Decision making is quick and still made by one person
- Suits high risk decisions, eg redundancy
- Employees have clear idea about what they have to achieve

- No input from workers into decision making processes, undervalues benefit of teamwork
- workers can still feel alienated, as their opinions are not sought
- Opportunities for employee initiative and commitment overlooked, leading to low levels of motivation and job satisfaction.


Style- Consultative

Is one where the manager consults employees before making decisions.

- The manager makes decisions alone, after consulting with employees
- Authority and decisions making is centralised and the manager retains decision making power, but employees opinions and ideas are considered/used.
- staff orientated approach
- Two way communication


Style- Consultative- ads and disads

- Gain a variety of ideas from the suggestions of employees, which will lead to a better decision making outcome
- Reasonable level of employee involvement
- Acts to motivate and increase an employees level of job satisfaction

- Employee may not understand the complexity of the problem
- Time-consuming if many stakeholders are consulted
- employees may still not feel valued if they have provided their ideas, which are overlooked.


Style- Participative

Is one where the manager unites with staff to make decisions together.


- control and authority is decentralised.
- orientation or focus is towards people. If the employees are satisfied and productive, this result in increase of productivity.
- communication is two way, being top down from management to subordinates, and upwards from the subordinates to management when their opinions and feedback is sought.


Style- Participative- ads and disads

- manager demonstrates trust and faith in ability of employees
- employee morale is increased, as employees feel part of the organisation's processes, leads to increase in productivity and motivation.
- employees feel sense of ownership and empowerment as they are now decision makers.

- can give rise to conflict between employees who question ability of their co-workers.
- lack of contribution by all employees, as some would not prefer to be involved in decision making, preferring to be told what to do.


Style- Laissez-faire

Is one where the employees assume total responsibility for, and control of, workplace operations. For eg. Google.

Characteristics of Laissez-faire
- management provides little direction to employees
- employees are empowered to determine their own objectives, solve their own problems and make own decisions, commonly found in workplaces.
- where the employees are highly educated, skilled and experienced.


Style- Laissez-faire ads disads

- high employee control, as employees can set their own tasks with little involvement from management
- good environment for encouraging creativity and innovation
- decentralised and flatter structure encourages good communication, as ideas are openly discussed

- lack of guidance can cause some employees to have a sense of loss of direction.
- some employee may feel unsettled by the freedom of this style
- does not suit employees who are unskilled or need structure and routine tasks


Style- Autocratic

Is one where the manager tells staff what decisions have been made.

Features of Autocratic:
- communication is one way (top down)
- control is centralised at the Management level
- CEO holds all authority and delegates all task
- does not provide opportunities for staff to contribute thoughts or ideas.


HR Roles- Planning

One management role is planning. This refers to establishing goals and objectives and devising steps or a process to achieve them.
3 levels of planning:
- strategic (long term 3-5 years)
- Tactical (medium term 1-2 years)
- Operational (short term)

A human resource (HR) manager would be involved in planning in a decentralised system in a number of ways, including setting goals and objectives relating to workforce relations.

In a decentralised system there is room for negotiation and the HR manager would need to ensure that collective agreements or individual contracts allow the organisation enough flexibility and sufficient resources to achieve its goals. Planning aspects that would be included and negotiated are part of the HR manager’s role.


HR Roles- Organising

Organising is the process of arranging resources and tasks to achieve objectives.


HR Roles- Leading

Leading is the process of influencing or motivating people to work towards the achievement of the organisation’s objectives.


HR Roles- Controlling

This is a process of monitoring, and keeping records of, actual performance compared to planned performance and targets.

Under a decentralised approach an HR manager would need to ensure that agreements are negotiated and that the terms and conditions of an agreement are monitored and met. This could include checking that the negotiation process is meeting a predetermined timeline and taking action to ensure the desired results of an agreement are achieved.

The control role could also include checking that the negotiation process is complying with legislative requirements and determining whether associated budgets have been met.


4 types of Management Structure (HFDM)

Hierarchical, Functional, Divisional, Matrix


Functional Structure

Is a traditional structure that is based on the management functions within the organisation. Refer to functions of case study.

- defined career pathway for employees
- possibility of high degree of task specialisation
- efficient use of resources

- Lack of flexibility
- lack of cooperation
- narrow departmental focus


Features of functional structure

- is that it sets out clear lines of authority and responsibility as the chain of command extends directly from manager to employees.

- it allows for specialisation of tasks so that employees can develop their skills and experience in a particular type of work.


Divisional Structure

Groups employees together according to divisions that may be geographical, customer, product or process focused. Another feature is employees report to only one manager.

- workers have manager in their own divisional area, so issues should be resolved within the division.
- greater flexibility as staff can gain experience in different divisions
- encouragement of cooperation

- different languages due to different geographical locations can create communication problems.
- Reduced benefits of economics of scale
- Potential to promote rivalry between divisions