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In the case of any deviations between the actual value and the target value at this level of learning, the appropriateness of the target values, too, is assessed. Through common reflection, the agents not only gain insight in the conditions of their own actions but also in the action of others. The key prerequisite for double-loop learning is open-mindedness. In a way, double-loop learning is about unlearning conventional orientation patterns in order to create the scope for new perspectives and conceptions Klein , p.

Deutero learning is the highest level of learning, dealing with the learning of learning. Here, the focus is on reflecting organizational learning processes that may concern single-loop and double-loop learning Reinhardt , p. With regard to double-loop learning, deutero learning might lead to improving reflective processes with respect to the cognitive framework in an effort to obtain adequate, commonly accepted theories in use Reinhardt , p.

For it is not sufficient for a company to merely plan to become a learning organization. Rather, it is imperative to align the entire corporate culture with the requirements of such an organization Gust von Loh , p. According to Hartmann , p. In this regard, the authors can be criticized for taking a mechanistic view of companies since they assume that companies a priori lack any self-induced double-learning ability.

Even so, the interventionist, they contend, is omnipotent, knowing both the right time and the right method to change into double-loop learning. What Argyris does not explain, however, is what training and what knowledge is required for someone to be an interventionist Wiegand , pp.

As a possible consequence, employees learn joint patterns of thinking and behavior that render productive learning impossible. This may be the case, for example, where critical matters are evaded through establishing taboos Richta , p. Chester Barnard — deals with business management from the perspective of organizational sociology. In his book The Functions of the Executive , Barnard develops the then new thought that organizations constitute cooperative systems. According to Barnard, companies are open systems. In order for them to fulfill its specific tasks in an efficient manner, they need to encourage all employees whose actions are essential for the achievement of the common purpose to cooperate Klein , p.

If the contributions made suffice to balance all induecements offered by the company, it maintains an economic equilibrium. In order for the company to achieve a stable balance for the long term, it needs to have a high degree of efficiency and effectiveness see Figure 5. This requires an ongoing process of adjustment that relates to internal and external processes. It is the main task of strategic management to create this complex economic balance Hartmann , p.

It should be stressed that there is no direct link between the purposes and targets of organizations and those of its members or employees. According to Barnard, one of the tasks of executives is to establish and manage a communication system. For corporate communication to be effective, each employee should be granted access to a formal communication channel. Moreover, communication channels should be as direct and short as possible Kennedy , p. Barnard advocates a high hierarchy and sharp lines of authority from top to bottom.

To ensure the continued existence of companies, it is required for the authority of orders to be observed Kirchler et al. If employees are not obeying orders, they do not ascribe any authority to them Klein , p. As a rule, authority is accepted if orders do not run counter to personal goals to the effect that implementation of the order is of low relevance to the person in question.

A high degree of authority can also be achieved if the connection to the company involves personal benefits to the individual employees. In this context, specialization refers to the organization as an entity and not to its individual employees Kirchler et al. The more specialized the division of labor, the fewer the number of tasks performed by an employee at a particular workplace. A high degree of specialization is typically accompanied by a high degree of quality.

It should be noted that the range of division of labor depends on the size of the company. Large companies have more opportunities to carry out specializations. Another core dimension of organizational structures is the span of control which indicates how many employees are assigned to a particular executive. The characteristic feature of the narrow span of control proclaimed by Barnard is that an executive examines the behavior of few employees.


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A narrow control span is associated with the fact that employees have comparatively little decision-making power. It should be stressed that there is a connection between control span and hierarchy. While flat organizations are structured by a wide span of control, highly hierarchical organizations typically exhibit a narrow span of control Kirchler et al. According of Barnard, a control span ideally comprises a maximum of 15 employees.

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The characteristic of the latter is that employees collect and bundle information without, however, making autonomous decisions. Staff positions are frequently taken by young and inexpereinced employees Kirchler et al. Barnard supports the idea of advisory staff members being assigned to executives with major line positions. Thus, for Barnard, companies should have centralized decision-making structures running from top to bottom. Accordingly, decisions are made by a few number of executives, with the result that the number of advisory positions is considerably higher than the number of decision-makers.

In companies with a decentralized structure, which Barnard tends to refuse, decisions are delegated to hierarchically lower levels, exhibiting a lower number of advisory positions Kirchler et al. Barnard has the merit of belonging to the founders of business-related social psychology. He was the first to define companies as social systems, analyzing its internal structure and the interaction with its environment.

Also, Barnard was among the first theorists analyzing the crucial role of executives with respect to corporate success, which also makes him a co-founder of the later leadership concept Simon , p. Once organizational processes are not characterized by criteria of rationality, they are neither predictable nor controllable.

Thus, what remains unconsidered, for example, is the great difference between business organizations and religious organizations. Warren Bennis — , in unision with Burt Nanus, developed an approach to so-called transformational leadership, in which they classify various types of organizations. The three types of organization are characterized by a formalistic, collegial, and personalistic organization style, respectively.

The characteristic feature of the formalistic organization style is a decentralized corporate management system, combined with a centralized corporate policy. In formalistic organization styles, a clear hierarchy prevails, with executives having a high degree of power and control. Superiors, who frequently lead by means of regulations, bonuses, and sanctions, lay store by keeping employees at a distance. The collegial organization style is marked by a democratic decision-making process, where the freedom of expression is to provide the basis to generate consensus.

Complex issues, in particular, are supposed to be settled quickly and properly using various approaches. The collegial style is frequently linked with a corporate philosophy that proclaims flexibility and peak performance. The personalistic organization style is characterized by a close relationship of trust between leaders and employees.

Here, superiors are committed to maintaining the closeness to employees. The three organization styles are presented in a summarized form in the table below. The concept of transformational leadership originates from an empirical study carried out by Bennis and Nanus in the course of which 90 leaders were surveyed and, in some cases, also observed.

The purpose of the interviews was to question the respondents about their strengths and weaknesses. Furthermore, they were also asked to provide information on experiences and events that had had a sustained impact on their own leadership style, and to indicate the major turning points in their career while assessing the individual decisions made at the time.

Based on these interviews and observations, the authors derived common characteristics of leadership. Their basic conception of leadership is characterized by four strategies which were applied by all study participants:. The vision functions as a guide both for leaders and for those being led.

The success of this strategy depends on whether the leader manages to convince the entire company of his or her vision and to ensure that it pervades it. The vision needs to be capapble of encouraging employees to commit themselves to the company. Such a vision has an inspiring effect on employees, motivating them to put their intentions into effect Hammann , p.

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The second strategy is based on the idea that leaders act as social architects, as it were. They support employees in developing a new, i. In the course of this strategy, leaders do not confine themselves to solving problems.

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Rather, they are looking for challenging topics and create inventive ideas Hammann , p. The third strategy involves the task to build up a relationship of trust by providing a clear direction, whereby it is important for the leader to comply with his or her own principles in a consistent manner Stippler et al. Through establishing a clear position, a leader becomes controllable and predictable.

The associated consistency, in turn, contributes to ensuring that innovative ideas are able to assert themselves against potential oppositions Hammann , p. In this context, it is imperative for the leader to reflect his or her own strengths and weaknesses and to link his self-image with the company Stippler et al.

This also requires the leader to assess to what extent his or her skills might be reconciled with professional requirements. For only in this way can leaders receive a feeling of self-worth that is transmittable to those being led Hammann , p. The characteristic of a leader according to a transformational leadership approach is that he or she works constantly and consistently on developing his or her own talents and personal advancement Schwartz , p. According to Bennis, personal development can be hampered in cases where leaders have considerable success at a very early stage. For then there would no longer be a possibility to learn dealing with failures, resistances, and problems Handelsblatt Management Bibliothek , p.

Based on the four strategies as well as the empirical results gained from the survey, Bennis and Nanus deduce several skills that a leader should have. For one thing, leaders should accept employees as they are. They should treat employees with care and place their trust in them in critical situations too. In addition, they should be capable of approaching challenges with a focus on the present rather than on the past.

In unision with Nanus, Bennis identified a global leadership crisis accompanied by an increasing loss of employee morale, for which he blamed leaders Simon , p. One of the most important aspects within the context of transformational leadership is for leaders to create a vision concerning the future of the company and to use it as a basis for their behavior and decisions.

Only if leaders manage to acquire trust can they gain the commitment of those being led Hammann , p. The primary focus is set on mapping the process between leader and employee, thus neglecting the question as to how the influence relationship between leader and employee is shaped, or exactly how organizations are changed Hammann , p. The tranformational leadership theory has a normative orientation as it is directed at the personal development of leaders and those being led.

This is countered by the fact that the main objective of a company is to generate profit. In that context, personality development can solely be seen as a means to an end, i. The distinction between management and leadership, which goes back to Bennis, has by now become some sort of fashion trend which occassionally yields absurd fruits. This is apparent, for example, where companies require leadership even from common employees.

If understood as a separated maximum requirement, it is absurd because in business practice many tasks simply need to be performed reliably and processed in continually recurring process stages Drath , p. The two authors define their approach as follows: They contend that in order for companies to be successful in the long term they require fundamental reorganization.

The concept is focused on reorganizing companies towards increased process orientation. Business process reengineering, then, pursues a much more radical improvement approach than does permanent business process optimization. What Champy and Hammer criticize about the business process optimization approach is the fact that a smooth realignment of processes, carried out with the least amount of discomfort for those involved, run inefficiently because it prevents from looking for unconventional, innovative solutions Dobler et al.

The characteristics of BPR become particularly apparent when being contrasted with the Kaizen approach of improvement. A fundamental redesign of procedures and processes is almost tantamount to creating a new company. In this context, the main aim is to reduce complexity within the company, and to remove interfaces that generate friction losses. Another target is to enhance flexibility, to accelerate process procedures, and to increase quality. Traditionally, BPR implies dismantling hierarchies and decentralizing decision-making responsibilities.

Even so, process responsibilities are clearly determined Hegewald , p. It can be stated that in BPR several positions and tasks which were previously seperated from each other are integrated and combined. Upon such integration, single employees are entrusted with tasks that were previously carried out by several specialists. Alternatively, those tasks may also be performed by teams which are referred to by Champy and Hammer as case workers or case teams Krallmann et al. Business economics - Personnel and Organisation. Politics - International Politics - Topic: Business economics - Supply, Production, Logistics.

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Bibliography List of Tables Table 1: Distinguishing between Management and Leadership Table 2: Dimensions and Indicators of Leadership Success Table 3: The Four Management Levels Table 4: Organization Styles according to Bennis Table 7: Corporate Activities Table 9: Strategic Orientation of Enterprises Table Megatrends according to Naisbitt and Aburdene Table Behavioral Factors for Corporate Success Table Learning Disabilities according to Senge Table Juxtaposing Feedback with Feedforward Table Characteristics of Successful Corporate Leaders Table Strategy Paradigm according to Hamel and Prahalad Table The 3 Ts and its Indicators Table The Model of Emotional Intelligence Table