Description
Organisational Theory, Structure and Design
Dec 2026 Examination
Q1 A mid-sized family-run manufacturing firm has traditionally relied on informal relationships and charismatic leadership for decision-making. Recently, the founder’s daughter, who holds no official title but is highly respected, has begun to drive important strategic shifts through her personal influence, often overriding formal directives from the operations manager. This has led to confusion about authority, role ambiguity, and occasional conflicts between managers and employees about whose instructions to prioritize. The board wants to retain the unique strengths of both formal authority and informal influence without compromising operational efficiency. By applying organizational theories of power types and authority, recommend a structured approach that aligns both formal and informal sources of power. (10 Marks)
Ans 1.
Introduction
This family-run manufacturing firm has long relied on informal relationships and charismatic leadership rather than formal structure alone. The founder’s daughter now drives major strategic decisions through personal influence, even though she holds no official title. This often overrides the operations manager’s formal directives. This has created real confusion about authority, along with role ambiguity and conflict between managers and employees over whose instructions to follow. Organizational theories of power and authority offer a useful lens for understanding this situation. They distinguish clearly between formal positional power and informal personal
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Q2 (A) In a prominent IT company, two senior executives are locked in a political struggle over the direction of its wellness programs. The battle for influence causes project delays and confusion among their teams. Upper management’s centralized decision-making is criticized for preventing quick resolution of conflicts and failing to empower middle managers, but some board members caution that decentralization could dilute strategic focus. Evaluate the trade-offs between centralized and decentralized decision-making in the context of managing executive-level political conflicts and aligning organizational strategy. (5 Marks)
Ans 2(A).
Introduction
Two senior executives at this IT company are locked in a political struggle over the direction of its wellness programs. The resulting delays are causing real confusion among their teams. Centralized decision-making is being blamed for slowing conflict resolution. Some board members worry decentralization could weaken overall strategic focus.
Concept and Application
Case for Centralized Decision-Making
Centralized decision-making keeps strategic direction consistent across the organization. A small
Q2(B) An IT consulting firm suffers recurring intergroup conflict between its software development and sales teams. While the sales team pushes tailored solutions to win new clients, developers express frustration over unrealistic delivery promises. Leadership has traditionally resolved disputes through ad-hoc meetings but finds that tensions persist, undermining innovation and lowering morale. Discussions have repeatedly stalled at the behavior stage, with teams entrenched in their viewpoints. Assess the effectiveness of various conflict management techniques applicable to this persistent intergroup conflict. (5 Marks)
Ans 2(B).
Introduction
This IT consulting firm faces ongoing conflict between its sales and software development teams. Sales pushes tailored solutions to win clients, while developers struggle with unrealistic delivery promises. Ad-hoc meetings have failed to resolve this tension. Discussions keep stalling
