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Leading & Managing Holistically >Part 4 >Chapter 11 >Step 2: Universal Perspectives on Organization Design

[Solution] Step 2: Universal Perspectives on Organization Design

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Author: Emily Carter

Behavioral Model

The behavioral model arose in parallel with the human relations approach to management. Rensis Likert developed a framework of eight processes on which organizations could be measured. Each of the eight dimensions is anchored on one end by System 1 design, or the bureaucratic form of organization, and on the other end by System 4 design, based on the behavioral model. Likert believed the System 4 design was optimal.

These are the eight processes and their characteristics in a System 4 design:

  • Leadership: There is a high degree of trust and support between managers and their reports.
  • Motivation: Motivation is achieved through employee participation, not through fear.
  • Communication: Information flows upward, downward, and laterally throughout the organization.
  • Interactions: Members of the organization interact freely; employees at all levels can influence goals.
  • Decision making: This is decentralized and occurs through group processes.
  • Goal setting: Group participation results in ambitious yet realistic goals.
  • Control: Responsibility for this function is dispersed throughout the organization, and the focus is on problem solving and individual accountability rather than blame.
  • Performance goals: High goals are achieved through the ongoing development of employees.

Likert's System 1 to System 4 Continuum

Process System 1 (Bureaucratic) System 4 (Behavioral)
Leadership Low trust, autocratic High trust and support
Motivation Fear, punishment, rewards Participation, involvement
Communication Downward only, restricted Multi-directional, open
Interactions Limited, formal Free-flowing, collaborative
Decision Making Centralized, top-down Decentralized, group-based
Goal Setting Imposed from above Participative, group-based
Control Centralized, punishment-oriented Dispersed, problem-solving focus
Performance Goals Moderate, without development High, with employee development

Behavioral Model: Strengths and Weaknesses

The behavioral model offers several advantages:

  • Employee engagement - High participation leads to greater commitment
  • Innovation - Open communication and collaboration foster creativity
  • Adaptability - Flexible structure can respond quickly to changes
  • Job satisfaction - Employees feel valued and find work meaningful
  • Talent development - Focus on growth builds organizational capabilities

However, the behavioral model also has limitations:

  • Time-consuming - Participative processes can slow decision-making
  • Role ambiguity - Flexible structure may create unclear expectations
  • Implementation challenges - Requires significant cultural change in traditional organizations
  • Management skills - Demands sophisticated leadership abilities
  • Context dependency - May not be effective in all industries or situations

Select the term that best completes the following sentence.

According to the behavioral model, an organization that departs as much as possible from Max Weber's ideal of the bureaucratic model has a .

View Explanation

In Rensis Likert's behavioral model, the System 1 design closely maps to Weber's bureaucratic model, and the System 4 design is essentially the opposite. In the System 4 design, for example, decision making is decentralized, responsibility for control rests with individual employees, and communication flows freely not only downward but also upward and laterally throughout the organization.

Select the correct responses to each of the following questions.

Which of the following are characteristics of the behavioral model of organization design? Check all that apply.

  • In an ideal organization, employees are managed primarily through strict rules and fear of punishment. 
  • In an ideal organization, employees at all levels influence goal setting.
  • In an ideal organization, employees are developed so they can achieve high performance and solve problems as they arise. 
  • Organizations can be evaluated on various dimensions on a range from System 1 design to System 4 design. 
View Explanation

The behavioral model of organization design includes a framework of eight processes. Organizations can be measured on each of these eight dimensions, from System 1 to System 4 design. In a System 4 design, which is considered ideal, employees at all levels influence goal setting and do so collaboratively. Employees also receive ample training so they can achieve high performance and recognize and solve problems themselves.

In a System 4 design, employees are managed through flexible, ongoing communication rather than a lot of rules, and they are motivated by their participation in group processes rather than by fear of consequences for breaking a rule.

Which of the following are strengths of the behavioral model? Check all that apply.

  • Employees know at all times exactly what is expected from them. 
  • The organization may be more efficient when following this model.
  • Employees feel highly valued as workers and people, and they find the work environment satisfying. 
View Explanation

One strength of the behavioral model may be greater efficiency for an organization. (It is worth noting that some organizations realize greater efficiency by following other models, depending on their environment and strategy.) In addition, employees tend to feel deeply valued and find the work environment satisfying in a behavioral model.

A drawback of this flexible, participatory organization design is that job expectations are not as clearly defined as in an organization following the bureaucratic model.

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