The art of motivating a group of people towards achieving a common objective.
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Management
A set of processes that keep an organization functioning.
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Managers Responsabilities
Setting objectives, organizing resources and motivating staff to meet the organizations goals.
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Leadership Characteristics
- Motivativating and inspiring. - Innovators that promote change. - Stems from personal traits. - Natural abilities and instincts. - Believes in doing the right thing. - Respected and trusted by its followers. - Creates and develops a culture of change.
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Management Characteristics
- Directs and monitors others. - Problem-sovers. - Official position of responsability in the organization. - Skilled and qualified for role. - Listened to by others. - Conforms to the norms of the organization.
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Trait Theory
Believes that you are born a leader and can't become one.
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Leaders Characteristics
- Desire to succeed and self-confidence. - Thinks outside the box and encourages other to do the same. - Multi-talented. - Easily identifies the heart of the problem at hand.
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Autocratic Leaders
- All decision-making at the center of the organization. - They make decions without discussing them with others. - They set the organizations objectives, issue instructions and ensure they are being carried out. - Workers can be dependant of their they won't show initiative. - Motivation is likely to be low making supervisng the staff essential. - Usually rely on one-way communication disencouraging feedback from employees. - Ex. Police, army, hospitals.
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Paternalistic Leaders
- Fatherly style typically used by dominant males. - Their power is used to control and protect employees. - Employees are expected to be loyal and obedient. - Managers pay more attention to the social aspects. - Decisions are made with the workers interests at heart. - Feedback is encouraged this improves moreale. - Decisions are still made by the senior manager. - No true participation of employees leading to a sense of frustration. - Usually in very patriarch societies.
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Democratic Leaders
- Promotes active participation of workers in decision making. - They engage in discussions with employees before taking a decision. - Communication is both ways enabling staff to initiate and respond to a discussion. - They have good communication skills. - Full participation in the decision making process. - Improves workers motivation. (Herzberg) - To implment it it's a slow process.
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Laissez-faire Leaders
- Leaves the decison making to the staff. - Hand off approach, opposite of autocratic. - Extreme version of democratic management. - Little input form management. - Effective on research and design teams. - This style could be a disaster in other areas.
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Situational Leaders
- Adapt depending on the situation as well as skills and experience from the group being led. - If the group is not receptive or lack specific skills then a high level of directive leadership is needed. - If they are experienced and willing the a more participative or democratic leadearship is appropriate.
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Taylorism's Approach
- Created by Fredrick Winslow Taylor. - Observed workers working slower than their capabilities. - Studied each element of the job. - Determined what each worker should be producing. - Designed a plan for the most efficent way to carry out everything. (Time and motion studies). - Implemented picework pay system. He increased their wages based on meeting targets.
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Scientific Management
- Develop a science for each elemnt of a job. - Scientifacally select employees and train them to do the job. - Supervise to make sure they are following the specific way to perform at their jobs. - Continue to plan the work but workers get the job done.
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4 Principles of Scientific Management
1. Select methods based on science. 2. Assign workers based on aptitudes. 3. Monitor work performance. 4. Properly divide the workload.
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Intuitive Thinking
- Their strategy is more trial and error. - They are more willing to try different methods and are observant to non-verbal cues. - Reinvents strategies everytime he deals with a particular proble. - They are better suited to approach problems that are more loosely structured or the nature of the problem doesn't allow for predetemined methods.
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4 Functions of Management (FoM)
Planning, organizing, leading and controlling.
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Planning (FoM)
- To establish organizational objectives and a course of action to achieve them. - Management makes strategic decisions to set the direction of the organization. - Brainstorming of alternatives to choose the best option.
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Organizing (FoM)
- To distribute resources resources. - Delegate tasks to achive goals.
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Leading (FoM)
- Motivating employees. - Influencing their behavior to achive organizational objectives.
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Controlling (FoM)
- Evaluating the plans execution. - Adjusting the course of action to achive their objectives. - Tasks manager can do in this phase could be training or managing deadlines.
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Motivation
The intrinsinc and extrinsinc factors that stimulate people to take action that lead to achieving goals.
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Intrinsinc Motivation
It comes from the satisfaction derived from working on and completing a task.
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Extrinsinc Motivation
It comes from external rewards related to performing a task like salary, benefits or other compensations given by the company.
Deliberate absence where ther is no reasonable explanation and usually follows a pattern.
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Lateness
Usually habitual.
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Poor Performance
Poor quality of work, low levels of work and/or wasting of materials.
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Labor Turnover
People leave for negative reasons and even if they don't go to another job they are trying to get one.
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Grievances
More complaints from the workforce and might increase the amount of union disputes.
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Poor Response Rate
Workers don't respond or very little to orders or leadership.
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Taylorism's Relevance to Modern Industry
- Some manager still belive money is the only motivation for staff. - Intorduced the idea of carefully selecting staff. - The time and motion studies technique but with the involvement of staff. - Still important as effiiency is reliant on having the best woy to work. - Limited relevance as it is difficult to identify the output of each worker.
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Taylorism's Limitations
- Workers have more needs than just money. - Requires an appropriate selcetion procedure. - Autocratic approach makes workers suspicious of Taylor just makingt hem work harder. - The no discussion or feedback to the approach makes it undesirable. - Payment method is not widely used. - Quantity over quality.
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Maslow's Motivation Theory
Hierarchy of human needs: 1. Individuals need to start from the bottom. 2. Once a level has been satisfied they'll want to achive the next one. 3. Everyone is capable of reaching their potential but not all reach self-actualization. 4. Going back is possible as the satisfaction from one level can be taken back.
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Maslow's Limitations
- Not everyone has the same needs. - In practice it is difficult to identify the level of satisfaction for each need and what level they're on. - Money is needed to satisfy physical but also other needs. - Self-actualization is never permanent.
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Self-Actualization
It's a sense of self-fulfillment reached by feeling enriched and developed by what thy have learned and achieved.
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Maslow's Levels of Need: Physical
Income enough to meet essential needs.
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Maslow's Levels of Need: Safety
A contract to ensure job security, structured organization with defined authorities, guaranteeing health and safety conditions.
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Maslow's Level of Need: Social
Team work, good communication and a sense of involvement for workers.
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Maslow's Level of Need: Esteem
Recongnition of their work, status, advancement and responsability to gain respect from others.
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Maslow's Level of Need: Self-Actualization and Fulfillment of Potential
Individuals are challenged by work sretches to give a sense of achievement. As well as opportunities to develop and apply skils to increase potential.
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Herzberg's Motivation Theory
- Also known as two factor theory. - A study that identofied what led workers to have very positive and very negative feelings about their jobs.
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Herzberg's Factors for Job Satisfaction
The motivators: 1. Achievement. 2. Recognition of achievement. 3. The work itself. (Intrinsinc factor) 4. Responsability. 5. Advancement.
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Herzberg's Factors for Job Dissatisfaction
The hygiene factors: 1. Comapny policy and administration. 2. Supervision. 3. Salary. 4. Relationship with others. 5. Working conditions.
They are extrinsinc factors.
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Consequences of Herzberg's Theory
- Pay and working conditions can be improved but not directly relate to motivation levels. - The motivators need to be in place for workers to be willing and eprform well. - Higher pay can improve working conditions and heavy supervision.
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McClelland's Motivation Theory
- States that all individuals are driven by achivement, affiliation and power. - Identifying peoples drivers to be motivated makes it more likely for them to complete and perform well on a task. - Inspired by Maslow but more in depth as to what motivations help reach self-actualization. - Everyone has primary need hat drives their motivation for sel-actualization.
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McClelland's Accquired Need: Achievement
- Motivated from completing tasks. - Look for projects and situations that highlight their skills and are not so challenging but also not so easy.
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McClelland's Accquired Need: Affiliation
- Motivated by connections with others. - Motivates interpersonal relationsships and emotional connections.
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McClelland's Accquired Need: Power
- Motivated by authority or control. - Look for positions and relationships where they can demonstrate their leadership skills and be the main decision maker.
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Implementing McClelland's Motivation Theory
1. Determine the driver. - Overview of the person and what they do. 2. Establish the motivator. - Achievement, affiliation or power. 3. Implement the process. 4. Refine as needed.
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Deci and Ryan's Motivation Theory
- Self-determination theory states that people becoem determined when their needs for competence, connection and autonomy are satisfied. - It assumes the need for growth drives behavior. - As well as that autonomous motivation is important. (Intrinsinc motivation)
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Components of Self-Determination
Autonomy, competence, connections.
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Deci and Ryan's Self-Determination: Autonomy
- Feeling of control of their behavior and goals. - Sense of ability to take direct action for change.
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Deci and Ryan's Self-Determination: Competence
- Perfecting and learning different skills. - When they feel they are capacitated for performing a task they are more likely take actions to help achive their goals.
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Deci and Ryan's Self-Determination: Connections
- Experiencing a sense of beolongin and attachement to people.
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Deci and Ryan's Motivation Theory in the Workplace
- Allowing staff to take active rolls. - Not overusing on extrinsinc rewards. - Offering greater responsabilities to employees. - Offering support and encouragement. - Providing meaningful feedback.
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Equity and Expectancy Motivation Theory
- Attempt to explain behavior influenced by the norm of equity. - People who feel they are in inequitable relationships try to reduce their distress by restoring actual or perceived equity to their relationship. - It consists of four interdependant positions.
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Equity and Expectancy Propositions
- Maximizing outcomes. - Maximixing rewards in groups. - Distress proportional to inequitable situation. - Elimination of distress.
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Equity and Expectancy Propositions: Maximizing outcomes
People will try to maximize outcomes where an outcome is a reward minus punishment.
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Equity and Expectancy Propositions: Maximizing Rewards in Groups.
People in groups maximize collective rewards by implementing systems to quitably dostribute resources. Rewarding people for their equitable treatment and punishment for inequitable treatment.
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Equity and Expectancy Propositions: Distress Proportional to Inequitable Situation
People when they fond themselves in inequitable relationships become distressed in a level poportional to the level of distress presented.
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Equity and Expectancy Propositions: Elimination of Distress
People will attemptto eliminate their distress and resolve inequity when in inequitable situations.
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Expectancy Motivation Theory
- It studies the relationship between worker motivation and valence, instrumentality and expectancy. - Great relationship between rewards and quantity of work to achive said reward. - Employees is more likely to increase effort if it results in positive reward. - If employees don't receive a reward they will be demotivated to perform better.
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Expectancy Theory: Valence
- The perceived value of an outcome like the value of the reward. - If they don't value a particular reward they won't be as likely to better performance and obtain it.
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Expectancy Theory: Intrumentality
- Perceived probability that an outcome will lead to another. - Ex. Greater rewards = greater job satisfaction.
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Expectancy Theory: Expectancy
- Perceived probability that a behaviour will lead to an intrumental outcome. - Ex. Working harder = greater reward.
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Organizational Structure
The internal, formal framework of a business that explains the way management is organized and connected as well as how authority functions within the company.
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Organizational Structure by Function
- Overall responsability for decision making. - Relationships between people and departments. - Chain of command. - Subordinates of each manager. - Formal channels of communication.
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Key Principles of Organizational Structure
Level of hierachy, chain of command, span of control, delegation, accountability, delayering, bureaucracy
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Principle of Organizational Structure: Level of Hierarchy
- Were personnel have equal satus and authority. - Each level is a rank of the staff. - Lower ranks are subordinates to the higher ranks. - More levels more ranks in the organization.
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Level of Hierarchy: Tall Organizational Structure
- Large number of levels. - Main problems are communication, distorted messages, narrow spans of control and greater sense of remoteness.
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Level of Hierarchy: Flat Organizational Structure
- Few levels of hierarchy. - More delgation as they can't control that much work efficiently. - Beter communication between ranks.
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Principle of Organizational Structure: Chain of Command
- Route in which authority is passed dow. - Instructions are passed down the hierarchy. - The longer the chain of command the slower the communication.
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Principle of Organizational Structure: Span of Control
- Number of subordinates of a manager. - Wide or narrow depending of the amount of epmloyees they are directly responsible of.
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Principle of Organizational Structure: Delegation
- Passing authority down the hierarchy.
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Principle of Organizational Structure: Accountability
- Obligation of an individual to be responsible of their activities and present results transparently.
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Principle of Organizational Structure: Delayering
- The removing of one or several levels of the hierarchy.
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Principle of Organizational Structure: Bureaucracy
- A system with standarized procedures and rules.
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Delayering Advantages
- Reduction of costs. - Shorter chain of command. - Improved communication. - Increased span of control and delgation. - Increase in motivation due to less remoteness.
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Delayering Disadvantages
- Could be unique costs of making managers redundant. - Increased workloads for managers. - Sense of job insecurity.
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Centralization
Keeping al decision making at the center of the organization.
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Decentralization
When decision making powers are passed down the organization to empower subordinates and regional managers.
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Centralization Advantages
- Bureaucracy should lead to quick decision making. - Consistent policies prevent conflicts between divisions and confusions in consumers. - Senior manager are experienced making decisions and make them in the interest of the whole business. - Central buying allow for greater economies of scale.
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Decentralization Advantages
- Local decisions reflect different conditions as manager have closer contact with consumers. - Junior managers can develop skills to prepare them for challenging roles. - Delegation and empowerement impoving motivation. - Decision making in response to changes are quicker and more flexible.
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Factors Influencing Organizational Structure
- Size of business. - Style of leadearship and culture of management. - Reduction of activities due to recession or competition leading to delayering to cut costs. - Corporate objectives. - New technologies.
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Hierarchal Structure
- Structure in which power and responsibility is clearly specified and assigned to individuals according to their position in the hierarchy. - Can be organized by product, function or region.
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Hierarchal Structure Advantages
- Very common. - They don't have to be based on departments. - The growth in the organization for an employee is defined in the levels of hierarchy. - Roles and chain of commad is clear and well defined. - Usually implemented in businesess were the importance of the role detrmines the position in the hierarchy.
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Hierarchal Structure Disadvantages
- Suggest communication (going down) is the norm. - Few horizontal links between departments leading to lack of coordination. - Managers are blind to other problems outside their own department. - Inflexible structure leading to change and resistance. - Due to managers defending their position and importance of their own department.
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Matrix Structure
- Cretaes project teams instead of traditional function departments. - Task or project focused. - Emphasis is places on an individual's ability to contribute to the team instead of their position in the hierarchy.
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Matrix Structure Advantages
- Total communication between team members. - Less focused on what is good for their department. - Crossover ideas tend to create more successful solutions. - New teams can be created quickly. - It responds quickly to changing markets or techonological conditions.
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Matrix Structure Disadvantages
- Less direct control. - Reduced bureaucratic control. - Teams could have several leaders if they keep a department structure but allow crossovers for teams leading to conflicts of interest.
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Horizontally Linked Structure
- Usually IT or high-tech sectors. - Grouped by function of planning, building and running. - Allows to respond to quickly changing market conditions and technologies. - May not be as effective in organizations that produce products with longer lifespasn or service industries.
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Horizontally Linked Structure: Planning
It is responsible for developing new projects and can include employees from research, development or finance.
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Horizontally Linked Structure: Building
In charge of constructing the projects.
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Horizontally Linked Structure: Running
Includes sales, marketing and maintenance.
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Handy's Shamrock Organization
- Focused on people as the most important resource of an orgaization. - Divided into core workers, temporary workers and contract workers. - Flexible structure - Emphasizes the ability of lower levels to make decisions as much as possible and adapt quickly to allow for growth. - Usually habide spanof control. - Communication more common among workers than from management.
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Handy's Shamrock Organization: Core Workers
- Consists of technicians, senior managers and professionals. - They ensure that the corporate aims and objectives are well established - Their pay depend on the succes of the company and have set salaries.
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Temporary workers
- The majority of the workforce, contingency employees that perform routine jobs. - Flexible and many times part-time workers. - They normally don't have a lot of development within the company. - Paid on the periods of time they work.
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Contract Workers
- Self-employed professionals and contractors on a project-reliant basis. - Are pay-based on performance to ensure high contract output. - These contract workers are not managed by the company directly, so they can be more flexible. - These contract workers can also be formal employees who provide their external services.
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Flexible Structures
Flat organizational structure, team based structure and region-branch structure.