The term Adhocracy refers to an extraordinarily innovative and exceedingly flexible company that has greater independence and is externally focussed. It is helmed by a visionary leader who has creative ideas and the innate drive to take the organization to the next level.
These are the companies that love to take calculated risks to move forward. It has the internal resources to manage in uncertain times. This type of organization can find its way through unstable conditions as it can adapt and reinvent in a rapidly changing business climate. The strength of the Adhocracy type of organization is its adaptability and speed that assist in forming teams at the drop of a hat to face new challenges. It believes in experimenting rather than drawn-out lengthy development projects.
The term Market-oriented refers to a company that tries to adapt to the new challenges that have gripped the market. This type of organization is externally focused and is looking to gain a competitive advantage at every level. It seeks full control by looking outward at transaction costs. It believes that building an active organization is possible only by adapting to market mechanisms.
This is why it is focused on external and internal transactions in market terms. Making money and achieving organizational objectives and goals is what drives the company. It operates by acquiring new clients, sales, and contracts and through feasible economic transactions. A market-oriented organization believes in delivering goods at all costs, even in the face of stiff competition.
Its primary objective is a secure customer base, bottom-line results, profitability , and stretch targets.
One of the significant examples of a market-oriented organization is General Electric. The term hierarchy refers to an organization that takes a traditional approach and is focused internally. It believes in an ordered existence for continuous improvement, and this is why it promotes the running of the company in a controlled atmosphere.
It has a strict chain of command and control. The Hierarchy type of organization has a formal structure that puts its onus on well-defined procedures, processes, and plans for every titbit.
Power and position are its strength, and it does not give any leeway to anyone. It is lead by a quality-focused organizer and coordinator who has a long-term vision for the company. Think of large, process-driven corporations. The strength of the culture lies in its standardization. This helps cut costs and makes work smooth. Market Organizations with a high external motivation with a stable structure fall into this category.
These are fiercely competitive organizations that strive to create a strong brand identity and employees work to maintain an external image. Customers are king in this culture. Each competing value approach can be equally effective depending on the sector the business is operating in and how efficiently the culture is translated into action.
The Competing Values Framework can be used to study leadership styles just as it is used to study organizational values. Here are the eight leadership characteristics that fit within each quadrant of the framework. Human Relations Model If the leader falls into the flexible, internal quadrant, they might be a mentor or facilitator.
Open Systems Model The flexible, external leader can be described as the innovator or the broker. Internal Process Model The stable, internal leader can be described as the monitor and coordinator. Rational Goal Model The stable, external leader is the dynamic producer and director of the team. Robert E. Quinn, the cofounder of the Center of Positive Organizations, developed this model.
He believes that leaders can play a combination of each of these roles at different times. In fact, a leader should be able to balance all these roles depending on the needs of the situation. It can be used as a strategic tool to develop supervision and management programs. It can also be used to help organizations diagnose their existing and desired cultures. Furthermore, it can be seen a tool to examine organizational gaps. Another function might be to use it as a teaching tool for practicing managers or to help interpret and understand various organizational functions and processes.
Another application is to help organizational members better understand the similarities and differences of managerial leadership roles. T I P : Here you can discuss and learn a lot more about competing values. More management models. Quinn, Rohrbaugh Model.
Quinn and Rohrbaugh Each quadrant of the framework represents one of four major models of organization and management theory Quinn : 1.
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