Free Bolman AND Deals 4 Frame Model Essay Example

Bolman & Deal's frames is a popular model in modern management – that frames can be used at the planning stage of a change initiative to help diagnose organizational needs, to identify institutional challenges and contexts, and to devise appropriate actions (e.g., ‘For this initiative, we need to be sure to address the political aspects because'). The frames also can be used to rethink and reframe unsuccessful change initiatives (e.g., ‘This initiative failed because we didn't appropriately address the human resource frame.') (McLeod). Bolman and Deal’s 4 frame model and their leadership theory consist of four essential frameworks: structural, human resource, political, and symbolic. By theory that frameworks may change the ways in which leaders view organizational situations and therefore how do they rule organization, influence ways by which cases and problem situations in the organization are defined. The theory also describes how problem situations can be managed effectively inside each frame. Bolman and Deal make the difference between a leader and a manager as "managers focus on execution, leaders on purpose” (Bolman and Deal, 2008, p. 343). Around frames effectiveness of managers is related with the human resources and structural frames, and effectiveness of leaders is related with the political and symbolic frames.
Bolman and Deal also give "right" for each frame leadership tendencies keeping wich by leader suppose to result in the most effective leadership style (Aitken).
We can say, that different frames are not equal by the frequency of using in everyday thinking about organizations – the structural frame is the most usual way to think about companies. The structural frame embodies efficiency, structure, and policies. Leaders who are effective here value data and analysis, they are able clearly set direction and hold stakeholders accountable, and problem-solve through restructuring (Aitken). For each frame, we can divide some elements, such as metaphors, organizational ethic, central lenses, some features of leadership, reasons of problems and tools to decide them (Davidson, C., B. McDonald, and C. Steeves.). Particularly, the main objective of the structural frame is the architecture of the organization. It pays main attention to such things as goals, structure, technology, roles and relationships and coordination of them. The best symbol of that frame may be organization chart, which shows the design of the company. It puts accents to responsibilities, division of labor, rules, policies, procedures, systems, and hierarchies – all elements which coordinate diverse activities in the organization. Leaders in such organizations focus on structural elements within the organization as well as strategy, implementation, and adaptation. They are busy with designing, maintaining, and aligning structural forms with the current reality of organization – the most actual circumstances, tasks, technology, the environment, and goals. They should pay attention to changes in actual organization's state because when the structure of organization does not line up, problems start. In that case, the remedy is reorganization or redesign of organization's structure. The most important ability of leader in this case – to be rational. Rational analysis helps to divide the work among the workers and brings appropriate implementation of group and personal efforts. Changing institutional structures works well when goals are clear when cause-and-effect relationships are well understood, and when there is little conflict, uncertainty, or ambiguity. Bolman & Deal list six assumptions behind the Structural Frame.
1) Organizations exist to achieve established goals and objectives.
2) Organizations work best when rationality prevails over personal preferences and external pressures.
3) Structures must be designed to fit organizational circumstances.
4) Organizations increase efficiency and enhance performance through specialization and division of labor.
5) Appropriate forms of coordination and control are essential to ensuring that individuals and units work together in the service of organizational goals.
6) Problems and performance gaps arise from structural deficiencies and can be remedied through restructuring (Bolman and Deal, 2008, p 48).
The structural approach going along with Taylor's scientific management school, where effective management is perceived to be a rational, methodological process, so that school and structural frame are built on common assumptions and putting accents the same way - Taylor's school also emphasis on clear objectives by goal-setting and cascading long-term goals to its employees.
We will use as the illustration for the structural frame in action Moscow Exchange, as a company born in the result of the reorganization of two others. Given organization is one of the largest exchange groups in Russia. The Moscow Exchange Group also operates Russia’s central securities depository and the country’s largest clearing service provider.

There are 5 members of the Executive Board:

CEO Alexander Afanasiev (*1962), Chairman of the MICEX FX Market Council in 2005-2012, co-chairs the National Foreign Exchange Association and National Securities Market Association

Deputy CEO as of October 2012 Andrey Shemetov (*18 July 1974), former CEO of the brokerage firm Aton,

Chief Information Officer (CIO) Sergei Poliakoff, a 20-year veteran of the securities industry who joined Moscow Exchange October 2012,
Chief Financial Officer (CFO) Evgeny Fetisov (*1975), since February 2013, a seasoned financial professional formerly of Citibank, McKinsey & Co., and Da Vinci Capital Partners.

Chief Operating Officer Dmitry Shcheglov (*1975), a veteran of Moscow Exchange and its predecessor MICEX.

Moscow Exchange’s shares are publicly traded under the ticker MOEX.
The structure of MOEX's shareholders holding more than 5% of votesin the highest governance body (as of 30.09.2015) is shown in Table.
has formulated long terms strategies and goals, which are shared in annual reports (actual one developed till 2020).
is driven structurally through systematic operational procedures and key performance indicators where roles, functions, and responsibilities of employees are clearly defined and performance benchmarked against KPIs, there is the division of labor inside the organization. Regular personal assessments include setting goals for all employees, semi-annual interim analysis of their achievements and annual final assessments of key performance indicators (KPIs). This influences employee salaries and year-end bonuses.
operates a highly diversified structure (see Chart).
the core operating structure comprises quasi-autonomous units for each of its service/market, with a corporate center serving as Holding Company. The business model is built on the principle of diversification and vertical integration, what is logical in the case of the company, which serve many different markets and market-related processes.
As I’ve already mentioned, according to the analysis the leadership of ME is based on the structural frame. The reason of ME emergence on the place of two different exchanges is the point, that diversified and vertically integrated structure servicing all markets is more effective then several institutions servicing same types of markets and competing, diluting the concentration of capital on markets. The company confirms that structural initiatives brought about positive results, after 5 years of working with new structure company feels great and demonstrate results, which were impossible for its predecessors:
MOEX's free float increased to more than 50%, one of the highest on the Russian market following The Central Bank of Russia's sale of half of its stake in MOEX in July with an RUB 16 bln (USD 469 mln) SPO transaction.
MOEX substantially expanded its product offering: corporate Eurobond listings, repo instruments for corporate Eurobonds, two new currency pairs (GBP/RUB and HKD/RUB), futures on Yandex and MOEX, volatility index and Eurobonds futures, derivatives and FX positions, currency risk netting, and intraday clearing on the Equities and Bonds Market.
Russian equities and corporate bonds became fully available for settlement via Euroclear and Clearstream direct links to Russia's CSD, the National Settlement Depository (NSD).
Financial results of company (see Table) in last years shows growth, what should be in due of structural improvement as results in economy in general are bad:
Operating income increased 23.5% YoY to RUB 30.39 bln.
EBITDA increased 31.9% YoY to RUB 21.62 bln; the EBITDA margin was 71.1% vs. 66.6% in 2013.
Operating expenses grew by 5.2% YoY to RUB 10.37 bln.
Net income increased 38.1% YoY to RUB 15.99 bln; basic earnings per share increased to RUB 7.21 from RUB 5.23.
Proposed dividend of RUB 3.87 per share, representing 55% of 2014 net income.

References

Aitken, Tracy. "Bolman and Deal’s Leadership Frames and the Role of Gender." Http://wp.vcu.edu/. Web. 7 Jan. 2016. <http://wp.vcu.edu/aitkentm/wp- content/uploads/sites/3369/2014/04/EDLP715BDGender.pdf>.
Bolman, L.G., & Deal, T.E. (2008). Reframing Organizations: Artistry, Choice, and Leadership (4th Ed). San Francisco, CA: Jossey-Bass. 527 pages.
Davidson, C., B. McDonald, and C. Steeves. "Sense Making & Solving Problems: Leveraging the View From the Balcony." Http://www.accessola2.com/. Web. 7 Jan. 2016. <http://www.accessola2.com/superconference2014/sessions/312- C.pdf>.
Defoe, Dan. "Understanding Organizations Using the Four Frame Model: Factories or Machines [Structure], Family [Human Resources], Jungle [Politics], and Theatres, Temples or Carnivals [Symbols]." Http://www.psycholawlogy.com/. 31 May 2013. Web. 7 Jan. 2016. <http://www.psycholawlogy.com/2013/05/31/understanding-organizations- using-the-four-frame-model-factories-or-machines-structure-family-human- resources-jungle-politics-and-theatres-temples-or-carnivals-symbols/>.
McLeod, Scott. "Bolman & Deal Frameworks." Http://dangerouslyirrelevant.org/. 5 June 2007. Web. 7 Jan. 2016. <http://dangerouslyirrelevant.org/2007/06/bolman_deal_fra.html>.