a) Mr. and Mrs. Johnson are adopting different styles and approaches in managing the

workers. Mr. Johnson is approachable and emphasizes teamwork, flexibility and

collaboration based on his assertion that the business environment is volatile and highly

competitive. On the contrary, Mrs. Johnson adopts a more structured and rules-driven

approach, placing strong emphasis on strict compliance with company hierarchies, policies

and procedures. According to Burns and Stalker’s contingency theory, two distinct

organizational structures correspond to these approaches.

Required:

Using Burns and Stalker’s model of contingency theory of management,

i) Identify and explain the type of organizational structure that best aligns with Mr. Johnson’s

management style and the type that aligns with Mrs. Johnson’s management style.

ii) Identify and explain THREE major differences between these two organizational

structures.

B)

In 2022, the company introduced an online system for booking and processing customers’

orders. However, the initiative has not been very successful, partly due to resistance from

employees who felt they were not adequately involved in the change process. Successful

organizational change can be achieved through the effective application of levers of

change.

Required:

Explain FIVE levers of change that Management of WCL may adopt to ensure the

successful implementation of the online ordering system and to secure the acceptance and

commitment of employees.

A)

Burns and Stalker’s model of contingency theory of management

organizational structures and how each aligns with the management approaches

of Mr. and Mrs. Johnson’s management style.

i. Burns and Stalker identified two categories of organization structure, a mechanistic structure and an organic structure. o Mechanistic Structure

A Mechanistic Structure is a highly formalized, rigid, and hierarchical form of organization design. A mechanistic structure is better suited to an entity in a stable environment, where change is gradual. A mechanistic structure is characterized by rigidity, formalization, and hierarchical control. It works best in stable, predictable environments. A mechanistic structure thrives on rules and procedures which are well defined and follow hierarchical structure in organization.

A mechanistic structure aligns with the management style of Mrs. Johnson. She is said to adopt a more structured and rules-driven approach, placing strong emphasis on strict compliance with company hierarchies, policies and procedures. She believes that maintaining discipline, particularly among factory workers, requires consistent enforcement of rules, including termination of employment in cases of repeated or serious breaches.

 An Organic Structure

An Organic structure is a flexible, adaptable, and less formal organizational design suited to dynamic and uncertain environments. An organic structure is better- suited to an entity that needs to be responsive to change in its products and markets, and in its environment. An organic structure is flexible, decentralized, and adaptive. It thrives in dynamic, uncertain environments.

Mr. Johnson’s management approach aligns with organic structure. Mr. Johnson’s leadership style emphasizes teamwork, flexibility and collaboration. He said to be approachable, accommodating, and open to dialogue. His management approach is shaped by the volatile nature of the business environment and the intense competition within the industry. This clearly aligns Mr. Johnson’s approach with an organic structure as espoused by Burns and Stalker.

ii. The major differences between a mechanistic structure and an organic structure are stated below:

Areas of Difference

Mechanistic Organization

Organic Organization

  1. Basis of authority for decision making

Authority is delegated through a hierarchical management structure. Power over decision- making is obtained from a person’s position in the management hierarchy.

There is a network structure of control. Individuals influence decisions on the basis of their knowledge and skills, regardless of their position in the organization.

  1. Nature of Control

A bureaucracy. There is a bureaucratic control. meaning that authority, coordination, and compliance are maintained through formal systems and documentation. Employees follow established protocols, and innovation or flexibility is limited.

Control is cultural (i.e. cultural control), not bureaucratic. This means that behavior is guided by shared values, norms, and mutual trust rather than strict procedures. Employees are empowered to make decisions, and innovation is encouraged.

  1. Communication flow

Communication is vertical, up and down the chain of command.

There are much more horizontal communication and free flow of information.

  1. Focus of individuals

Jobs are specialized, and individuals concentrate on their specialist area. Doing the job is the main priority.

Specialist knowledge and expertise are shared and contribute to the ‘common task’ of the entity. Contributing to the common task is the main priority.

  1. Job description Job descriptions are precise.

      Job descriptions are less precise.

  1. Nature of information from superior

Tasks and operations are governed by instructions from a superior manager.

Communications consist of information and advice, rather than decisions and instructions from a manager.