ORGANIZATIONAL DESIGN AND LEADERSHIP STYLES

Phuoc D. Nguyen

The efficiency and effectiveness of the organizational design depend on the appropriate leadership style application, every leadership style fits the structure configuration. According to Burton, Obel, and Håkonsson (2015), having four leadership styles Maestro, Manager, Producer, and Leader. The maestro leadership style fits well with the small start-up company, while for the big mature corporation, a reactive strategy of taking unnecessary risk may be the situation… The manager focuses more on the control of operations than on strategic decisions… The leader is confident that others can make good decisions for the firm and thus finds delegation an efficient way to save time… The producer ensures that new products and services are developed and introduced.

Chen (2006) analyzes Mintzberg’s (1989) seven basic organization structural configurations. The seven organization structural configurations are entrepreneurial, machine, professional, diversified, innovative, missionary, and political organization. Maestro’s leadership style best fits the entrepreneurial structure because the organization with an entrepreneurial structure is always a new, small company in the first stage of the organizational life cycle (Chen, 2006 cited in Daft, 1998, p. 173). The producer leadership style fits the innovation organization because the top managers of the organization seldom manage to give orders in the usual meaning; they spend much acting in a liaison capacity to coordinate the work among the teams or units. (Chen, 2006, p. 44). The Leader leadership style fits political organizations because their power systems may best be described as a dynamic balance. In the dynamic balance of power, somewhat, leadership shows its potential effect (Chen, 2006, p. 44). The Manager’s leadership style fits fit machine organization because the machine organization has a big administrative and technical support staff, and the technical support staff is the dominant part of the organization (Chen, 2006, p. 43).

Nwadukwe and Timinepere (2012) propose “The relationship between management styles and organizational effectiveness cannot be overemphasized. Management styles are one of the important factors that affect organizational effectiveness. A good match between the style of management and the operating realities of an organization will substantially influence its level of effectiveness. In each organization, management style influences the performance of individual employees and work groups, and thereby the whole organization’s performance.” (p. 200). The efficiency and effectiveness of the organizational design that based on the application of leadership styles of maestro, manager, leader, producer, transactional, charismatic, transformational servant, conservative, participative, bureaucratic, paternalistic, authoritarian, organic, entrepreneurial, visionary, professional, altruistic, autocratic, paternalistic, participative, and Laissez-faire which best fit appropriate organizational structure configurations. Additionally, general management, strategic management, process management, HR management, and performance management techniques are also very important in the organizational design process. The direction in the organizational design is strategic management because the strategic intent will lead to core values, corporate culture, management systems establishment, process, and organizational structure design or redesign, and the interaction between business processes in the management systems. There is no general formula for organizational design, this requires leaders who use their leadership styles, management competence, and management systems skills to implement organizational design that best fits their corporate strategic intent, corporate industry, and type and size of business to create organizational efficiency and effectiveness in the uncertainty, dynamic, and changing global business environment. The company always assesses, measures, and enhances organizational efficiency and effectiveness and it has already implemented organizational redesign to follow the new strategic intent.