Leadership & Organizational Structure

Organizational development is implemented by leadership.

The way an organization is structured and the leadership in place over the organization will determine the organization's culture, success and satisfaction. Leadership is responsible for continually analyzing and developing the organization's effectiveness and ability to meet the needs of its members. When leadership plays an active role in organizational development, it produces a positive corporate culture, motivated employees and the ability to change and grow as an organization.

Definition

Leadership is the person or people given authority over a group of people. This can be a team leader, manager or CEO or a company.

Organizational Structure is the system, policies and cultural norms that apply to a specific company or business.

Types -- Leadership

Leadership can structure itself in three ways: autocratic, democratic and free-reign. Autocratic leadership is the style of leadership where a leader holds all the authority to make decisions such as a foreman on a construction site. Democratic leadership pulls subordinates into the decision-making process. This style encourages all participants to take part in the solution and brainstorming to improve organizational effectiveness. Free-reign leadership gives a task to a particular group of people and allows them to govern and complete the task on their own.

Types -- Organizational Structure

Organizations are categorized into two types of structures: vertical and horizontal. Vertical structures operate on a strict hierarchy where leadership communicates a directive and it is expected to be followed without question or inquiry. This is seen in military organizations where a commander may give an order and the subordinates respond immediately to the command. Horizontal organizations are also termed, "flat organizations," because they provide an equal opportunity for all members to voice their options and provide feedback. Most businesses operate in this model, providing an opportunity for each employee to give feedback.

Relationship

The leadership type has a direct effect on the organizational structure. For example, if the leadership style is autocratic, the organizational structure will be designed to minimize feedback and input. If the leadership style is democratic, an "open door policy" will be implemented and most decisions will be made by consulting the employees beforehand.

Considerations

Some leadership styles and organizational structures are more appropriate for different organizations. For example, having a democratic leadership style and organizational structure would not be effective in running a police department. The same is true that autocratic leadership would not be the most effective way to run a retail store.

References

• The Center for Human Systems: Defining Organization Development for Practical Purposes
• California Institute of Technology: Organizational Development
• Northwest Link: Leadership Styles
• LM Dulye: Ways to Encourage Upward Communication