Student’s Registration No.

Leadership and Organisations

(6WBS0017)

Coursework (CW1) – TIMED TEST TIME: 60

minutes (1 hour)

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Q1. [Question 1 Scenario will be below]
Small businesses are privately owned corporations, partnerships, or sole proprietorships that have fewer
employees and/or less annual revenue than a regular-sized business or corporation. Businesses are defined
as "small" in terms of being able to apply for government support and qualify for preferential tax policy varies
depending on the country and industry. Small businesses range from fifteen employees under the Australian
Fair Work Act 2009, fifty employees according to the definition used by the European Union, and fewer than
five hundred employees to qualify for many U.S. Small Business Administration programs. While small
businesses can also be classified according to other methods, such as annual revenues, shipments, sales,
assets, or by annual gross or net revenue or net profits, the number of employees is one of the most widely
used measures.

QUESTIONS: [Questions relating to question 1 scenario below]

Define (a) (2
Partnership. marks)
A legal form of business operation between two or more individuals who share
management and profits

Use organizational design elements to (b)

define organizational structure of a small (4 marks)
business.
Functional
If you’ve had a job, you likely worked in a functional organizational structure.

The functional structure is based on an organization being divided up into smaller groups
with specific tasks or roles. For example, a company could have a group working in
information technology, another in marketing and another in finance.

Each department has a manager or director who answers to an executive a level up in the
hierarchy who may oversee multiple departments. One such example is a director of
marketing who supervises the marketing department and answers to a vice president who
is in charge of the marketing, finance and IT divisions.

An advantage of this structure is employees are grouped by skill set and function, allowing
them to focus their collective energies on executing their roles as a department.

One of the challenges this structure presents is a lack of inter-departmental

communication, with most issues and discussions taking place at the managerial level
among individual departments. For example, one department working with another on a
project may have different expectations or details for its specific job, which could lead to
issues down the road.

In addition, with groups paired by job function, there’s the possibility employees can
develop “tunnel vision” — seeing the company solely through the lens of the employee’s
job function.

Organizational chart for a functional structure.

Divisional
Larger companies that operate across several horizontal objectives sometimes use a
divisional organizational structure.

This structure allows for much more autonomy among groups within the organization.
One example of this is a company like General Electric. GE has many different divisions
including aviation, transportation, currents, digital and renewable energy, among others.

Under this structure, each division essentially operates as its own company, controlling its
own resources and how much money it spends on certain projects or aspects of the
division.

Organizational chart for a divisional market-based structure.

Additionally, within this structure, divisions could also be created geographically, with a
company having divisions in North America, Europe, East Asia, etc.

This type of structure offers greater flexibility to a large company with many divisions,
allowing each one to operate as its own company with one or two people reporting to the
parent company’s chief executive officer or upper management staff. Instead of having all
programs approved at the very top levels, those questions can be answered at the
divisional level.

A downside to this type of organizational structure is that by focusing on divisions,

employees working in the same function in different divisions may be unable to
communicate well between divisions. This structure also raises issues with accounting
practices and may have tax implications.

Organizational chart for a divisional geographical structure.

Matrix
A hybrid organizational structure, the matrix structure is a blend of the functional
organizational structure and the projectized organizational structure.

In the matrix structure, employees may report to two or more bosses depending on the
situation or project. For example, under normal functional circumstances, an engineer at a
large engineering firm could work for one boss, but a new project may arise where that
engineer’s expertise is needed. For the duration of that project, the employee would also
report to that project’s manager, as well as his or her boss for all other daily tasks.

The matrix structure is challenging because it can be tough reporting to multiple bosses
and knowing what to communicate to them. That’s why it’s very important for the
employees to know their roles, responsibilities and work priorities.

Advantages of this structure is that employees can share their knowledge across the
different functional divisions, allowing for better communication and understanding of
each function’s role. And by working across functions, employees can broaden their skills
and knowledge, leading to professional growth within the company.

On the other hand, reporting to multiple managers may add confusion and conflict
between managers over what should be reported. And if priorities are not clearly defined,
employees, too, may get confused about their roles.
Flatarchy
While the previous three types of organizational structures may work for some
organizations, another hybrid organizational structure may be better for startups or small
 companies.
Blending a functional structure and a flat structure results in a flatarchy organizational
structure, which allows for more decision making among the levels of an organization and,
overall, flattens out the vertical appearance of a hierarchy.

(c) Formal organizational structure

(Advantage):
No Overlapping of Work:

In formal organization structure work is systematically divided among various

departments and employees. So there is no chance of duplication or overlapping of work.

(Disadvantage):
Ignores Social Needs of Employees:

Formal organisational structure does not give importance to psychological and social
need of employees which may lead to demotivation of employees.

Q2. [Question 2 Scenario will be below]

QUESTION: [Question relating to relating to question 2 scenario below]

–
Explain 5 different leadership styles. Also mention the merits and de-
merits of each.

(5 marks)

COERCIVE This type of power allows the individual to punish someone who is causing
serious trouble in the organization like sexual harassment however abuse of this power can
result in dysfunction in the organization
CONNECTION This type of power allows the leadership to listen and give importance to the
individual’s opinions the individual with this power can cause his subordinates to work harder
for him or her in order to please him/her
REWARD The ability to reward other employees however this power should be used
wisely as misuse of such a power can backfire as employees might lose focus altogether rather
being motivated to work more
LEGITMIATE This power deals with superiority based on designation as the person with this
power has the ability to order his subordinates and they comply such a power does not
encourage collaboration
REFRENT The person who other employees look up to and led by example that person
has referent power such a power develops over time and has practically no use in organizations
where employees have a high turnover rate
INFORMATIONAL This power is information based as persons who are dealing with the
concerned stakeholders on daily bases have such power but once the information is shared that
person’s power is gone
EXPERT This is knowledge based as people with this power have a special skill set of expertise
with them so they are most likely to influence both the top leadership and the management
but this power diminishes over time.

–
Your company’s CEO expects the sales to increase by 25% by the end of
this year. Since you are the head of marketing department, you are now
required to motivate your team to contribute towards the sales increase.
Plan a course of action explaining which motivational theory you will use
to motivate your team.

(5 marks)

HERZBERG THEORY
This theory seems very much implementable for our company but it assumes that
employee satisfaction is directly proportional to productivity as it does not address that
relationship between job satisfaction and productivity because it focuses on those
things which the employees like and things which employees do not like are
completely different in this two factor theory as factors of satisfaction and
dissatisfaction are completely separate they do not seem interrelated at all.
However we can implement this theory by following a two-step process.
(mindtools.com, 2019)
 STEP 1
ELIMINATION OF FACTORS OF DISATISFACTION
• Fix company policies mutually
• Be supportive to the co-workers
• Create a culture which promotes dignity for all team members
• Keep the wages competitive
• Provide job security
STEP 2
BUILDING JOB SATISFACTION FACTORS
• Provide achievement opportunities
• Recognizing contributions of your employees
• Allocate tasks according to employee’s capabilities
• Go for providing internal promotions
• Offer training opportunities so the employees pursue working and feel more
competent
• Allocate tasks fairly do not overload a single person with tasks because he or
she seems more competent
Now this theory is implementable as it addresses the lack of training issue motivation
issue and hostile culture issue directly indirectly it addresses the managerial issues if
the management implement this theory the way proposed above.

Q [Question 3 Scenario will be

3. below]
A manager is the member of an organization with the responsibility of carrying out the four important
functions of management: planning, organizing, leading, and controlling. But are all managers leaders?

Most managers also tend to be leaders, but only IF they also adequately carry out the leadership
responsibilities of management. Unfortunately, not all managers are leaders.

QUESTIONS [Questions relating to relating to question 3 scenario below]

Explain briefly two differences between (a)

leaders and managers. (2 marks)
LEADER
Transformational STYLE
Facilitates decision
MANAGER
TRANSACTIONAL STYLE
MAKES DECSION

Trace out the evolution of approaches to management, discussing the

specifications of each stage.
(4 marks)
(b)

Stages of the evolution of management thought

This topic is broad, and it also requires careful explanation and thought process. One
cannot understand what it entails or appreciates how it happened without looking at
the various areas where the said evolution occurred. For better understanding, the
evolution of management thought will be shared into four different stages. These
include:

Pre-scientific management period

Classical theory
Neo-classical theory or behavior approach
Bureaucratic Model of Max Weber
The Pre-Scientific Management Period

The industrial revolution that took place in the 18th century had a significant impact on
management as a whole. It changed how businesses, as well as individuals, raised
capitals; organize labor and the production of goods. Entrepreneurs had access to all
the factors of production such as land, labor, and capital. Theirs was to make an effort
to combine these factors to achieve a targeted goal successfully.

However, the new dimension that management took following the industrial revolution
cannot be discussed without mentioning notable personalities who contributed their
quarter. They were able to introduce useful ideas and approaches to give
management a precise and universally acceptable direction. Here are some of them.
Professor Charles Babbage – United Kingdom (1729 – 1871)
Prof Babbage, a renowned professor in mathematics at Cambridge University
discovered that manufacturers were relying on guesswork and suggestions and urged
them to utilize mathematics and science to be more accurate and productive.

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Robert Owens – United Kingdom (1771 – 1858)
Robert was regarded as the father of personnel management because of his
approach and focus on employee welfare. He introduced co-operation and trade
unions. Robert believed that employee welfare could determine their performance to a
large extent. He encouraged the training of workers, education for their children,
canteens in the workplace, shorter working hours, among others.

Other Contributors to the Pre-Scientific Management Period Include:

Henry Robson Towne – USA

James Watt Junior – United Kingdom
Seebohm Rowntree – United Kingdom
The Classical Theory
Prof Babbage, Robert Owens, and other names earlier mentioned can be regarded as
the pioneers of management. But their contribution to the evolution of management is
little. The beginning of what is known as the science of management started in the last
decade of the 19th century. Names like Emerson, F.W. Taylor, H.L. Grant, and others,
paved the way for the establishment of what is called scientific management.

During the classical period, management thought was focused on job content,
standardization, the division of labor, and a scientific approach towards the
organization. It also was closely related to the industrial revolution as well as the rise
of large-scale enterprises.

The Neo-Classical Theory

This period of evolution of management thought is an improvement of the classical
theory. In other words, it modified and improved upon the classical theory. For
instance, Classical theory focused more on the area of job content, including the
management of physical resources, while the neo-classical theory gave more
profound emphasis on employee relationships in the work environment.

The Bureaucratic Model

A German Sociologist called Max Weber proposed this model. And it includes a
system of rules, division of labor hinged on functional specialization, legal authority,
and power, the hierarchy of authority and placement of employees based on their
technical competence.

The Evolution of Management Theories

Organizations have been shaped and through the writings of several writers. Their
write-up consisted of governance of kingdoms and management of humans. And
these formed the literature that helped in the development of management theories.
And these management models were also offered by the military, political and
religious organizations.
 How can you motivate your team member to perform at his optimum level? Use Daft’s
(2008) key factors of motivation to answer this question.
(4 marks)
(b)

I will increase Salary of my employees as most of them are x type workers

Working Conditions will be improved and enhanced as well
Recognition And Appreciation will be focused on as everyone wants appreciation

FOCUS WILL INCERASE ON

 Training and development
 Job Security
 Performance Appraisal
 Promotion/Growth