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Organizational Behavior

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William Panos

on 19 November 2013

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Transcript of Organizational Behavior

Aims & Objectives
Address the concept of Formal Authority in organizational structure and positioning
Compare traditional with modern forms of legitimate formal authority
Assess how and in what ways this can be effective in securing organizational success and development

What is Formal Authority?
Top Level Management
History of Formal Authority
Legitimacy based on tradition
Neo- weberian (structural) and Depersonalized
Formal Rules and Procedures
Business Management Hierarchy Structure :
The Delegation of Authority

Advantages of Hierarchical structure
Hard Power
Robert Dahl (1957)
-Person A getting person B to do what person A wants them to do.

-Important role in setting up/applying system to hold people accountable for their performance

Need for accountability: Case study Alan Robbins
Power Devolution Criticism:
-Power devolution criticism (Corger & Kanungo)
-'Employees view empowerment as empty rhetoric, management's attempt to exploit them' (Johnson 1994)

Expert and Knowledge Power:
- Employee trust and belief
- Respect expertise and experience
- Special training & familiarity with day to day operations
- Enhances acceptance of formal authority

Hybrid of Traditional & Cultural control
'No need to abandon formal conception in blurring organizational boundaries ' ( Hodgson 2001)

Hybrid ( Berry 1994)
Traditional/Cultural : Market distinction on legal grounds supplement more refined understanding of control, internal coordination
External: Budgets, performance management
Formal Authority in modern Organizations:

-Management of meaning
-Charismatic Authority
- Case Study: Steve Jobs

-New management work( Kanter 1989)


-Formal Authority through cooperate culture and values

Formal Authority in modern organizations:
Disney Case Study
-Disney leadership excellence
-engaged and collaborative culture
'Business model is goal orientated and well defined from top to bottom' (Schien 2010)
Agile Project Management
Modern, complex interconnected network
Global Competition
Inclusion of Interactive Control Systems
Process Change
Innnovative Organizational Culture
'Power that exists at the top of the organization such as formal authority, is the most legitimate and effective form of power'
- Legitimate power to use organizational resources, achieve goals

- Give orders & makes decisions provided by position in the company or the law.

- ‘All measures of delegation, decentralization, management responsibility’ ( Aghion + Tiride 1997)

3rd level of management

Long term goals

Achieves clear communication

Directly influence the creation and work of teams

Direct action from managers
-Streamlined work structure
-Task Completion speed & effectiveness
-Division of labor
-Easier decision making
-Success + professional growth

Effectiveness of Organizational Position:

- Unity of command
- Workers learn, share resources
- Stable Structure
- System of reward & Punishment
- Field of Influence
- Employees apt to accept criticism from someone at their level.

Blending of Traditional and Agile Project Management:

Traditional: Distinct project life cycle phases easily recognizable
- Planning upfront
-Lays out steps for development
-Events are predictable

Universal Parent-Child management relationship
E.G Facebook places pages

Effective: Address's threats
Facilitates local markets, direction

Expertise and training
Leadership qualities
Position held and influence
Legitimized by subordinates below

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