MGMT628 Assignment # 01 Solution Spring 2013

SEMESTER SPRING 2013
ORGANIZATIONAL DEVELOPMENT (MGMT628)
ASSIGNMENT NO. 01
DUE DATE: 14 MAY, 2013
MARKS: 20

Topic: Participative Management
Learning Objectives
The prime objective of this assignment is to know the understanding of the student that
how different organizations adopt different management style.
Question:
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
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Exploitative authoritative (I)

Exploitative Authoritative is rooted in classical theory. In this system, managers tend to use threats, fear, and punishment to motivate their workers. Managers at the top of the hierarchy make all of the decisions and are usually unaware of the problems faced by those in the lower levels of the organization. Decisions are imposed on subordinates, and motivation is characterized by threats. The orders issued from the top make up the goals for the organization. As a result, workers tend to be hostile toward organizational goals and may engage in behavior that is counter to those goals.
Benevolent authoritative (II)

Less controlling than the exploitative authoritative system, under this system motivation is based on the potential for punishment and partially on rewards. The decision making arena is expanded by allowing lower-level employees to be involved in policy making but is limited by the framework given to them from upper-level management. Major policy decisions are still left to those at the top, who have some awareness of the problems that occur at lower levels. This creates mainly downward communication from supervisors to employees with little upward communication, causing subordinates to be somewhat suspicious of communication coming from the top. The managers at the top feel more responsibility towards organizational goals than those employees at the bottom, who feel very little responsibility. This contrast in feelings toward responsibility can result in a conflict and negative attitudes with the organization's goals. Subordinates in this system can become hostile towards each other because of the competition that is created between them. Satisfaction among workers is low to moderately-low and productivity is measured at fair to good.
Consultative System (III)

This theory is very closely related to theHuman Relations theory. Motivation of workers is gained through rewards, occasional punishments, and very little involvement in making decisions and goals. Lower-level employees, in this system, have the freedom to make specific decisions that will affect their work. Upper-management still has control over policies and general decisions that affect an organization. Managers will talk to their subordinates about problems and action plans before they set organizational goals. Communication in this system flows both downward and upward, though upward is more limited. This promotes a more positive effect on employee relationships and allows them to be more cooperative. Lower-level employees are seen as consultants to decisions that were made and are more willing to accept them because of their involvement. Satisfaction in this system improves from benevolent authoritative as does productivity.
Participative System (IV)

Likert argued that the participative system was the most effective form of management. This system coincides with Human Resources theory. This system promotes genuine participation in making decisions and setting goals through free-flowing horizontal communication and tapping into the creativity and skills of workers. Managers are fully aware of the problems that go on in the lower-levels of the organization. All organizational goals are accepted by everyone because they were set through group participation. There is a high level of responsibility and accountability of the organizational goals in all of the employees. Managers motivate employees through a system that produces monetary awards and participation in goal setting. Satisfaction among employees is the highest out of the four systems as is production.