MGMT628 Organizational Development Assignment No.1 Solution Spring Semester 2013

In the table given under there are four types of organization which have different structures, working environment and decision making procedures. In the given table you are required to find out the type of management practiced in these organizations. For the detail understanding you are required to go through the video lectures from 1 to 14.
The answer should be from the given choices of management type; the benevolent authoritative system, Exploitative Authoritative system; Participative group system, Consultative system and the authoritative participative system. Each answer carries equal marks.

Organization Type Structure Working environment Decision-making style Management Type Consultancy and Marketing Every individual in the team is motivated to suggest solution to the higher management. Employees are satisfied and turnover is very low.
Majority of the decisions taken are outcomes of team’s brainstorming sessions Customer services The managers have type X supervision style. Self motivation and self discipline is expected from the employees. Narrow span of Control with expectations of meeting all deadlines. Product design and innovation. Self- directed cross- functional teams or work groups The employees feel ownership and show loyalty to the organization. Work bidirectional Mass production The SOPs are already defined and the employees need to completely follow them. Rewards and punishments are for good and poor performance. Work unidirectional


Exploitive authoritative system (1)

In this type of management system the job of employees/subordinates is to abide by the decisions made by managers and those with a higher status than them in the organisation. The subordinates do not participate in the decision making. The organisation is concerned simply about completing the work. The organisation will use fear and threats to make sure employees complete the work set. There is no teamwork involved.

Benevolent authoritative system (2)

Just as in an exploitive authoritative system, decisions are made by those at the top of the organisation and management. However employees are motivated through rewards (for their contribution) rather than fear and threats. Information may flow from subordinates to managers but it is restricted to “what management want to hear”.

Consultative system (3)

In this type of management system, subordinates are motivated by rewards and a degree of involvement in the decision making process. Management will constructively use their subordinates ideas and opinions. However involvement is incomplete and major decisions are still made by senior management. There is a greater flow of information (than in a benevolent authoritative system) from subordinates to management. Although the information from subordinate to manager is incomplete and euphemistic.

Participative (group) system (4)

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Management have complete confidence in their subordinates/employees. There is lots of communication and subordinates are fully involved in the decision making process. Subordinates comfortably express opinions and there is lots of teamwork. Teams are linked together by people, who are members of more than one team. Likert calls people in more than one group “linking pins”. Employees throughout the organisation feel responsible for achieving the organisation’s objectives. This responsibility is motivational especially as subordinates are offered economic rewards for achieving organisational goals which they have participated in setting.