People Management

“ The most important part of managing an organization, (where an organization may be defined as consisting of more than one person),

is managing the people within that organization.”

“Organizations are not machines, even though some of us running them would dearly love them to be so. They are communities of people, and therefore behave just like other communities. They compete among themselves for power and resources; there are differences of opinion and of values, conflicts of priorities and of goals. There are those who want to change things and those who would willingly settle for a quiet life. There are pressure groups and lobbies, cliques and cabals, rivalries and contests, clashes of personality and bonds of alliance”. (Charles Handy, C., 1999).

Learning Objectives:

• Explain the functions of management • Explain the qualities of leadership• State the three major styles of leadership • State the factors that may affect leadership styles

What Is Leadership?

What Is Leadership?Leadership

The ability to influence a group toward the achievement of goals

Management

Use of authority inherent in designated formal rank to obtain compliance from organizational members

Management: managers responsible for getting things done, usually through other people or the process of realizing organizational objectives through people and other resources.

Management in all business areas and organizational activities refers to the acts of getting people together to accomplish desired goals and objectives. Management comprises, planning, organizing, stuffing, leading or directing, and controlling an organizing (a group of one or more people or entities) or effort for the purpose of accomplishing a goal.

What Is Management?

Leadership: Leadership is stated as the process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task.

What Is Leadership?

Question for critical thinking

• Do you think managers are the same as leaders? If not, explain the possible differences between them.

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Leaders:• Deals with changes• Works on the system• Creates opportunities• Seeks opportunities.• Changes organizational rules• Provides a vision to believe• Motivates people• Inspires achievement and

energizes people• Coaches followers, creates self

leaders and empowers them

Managers:• Deals with status-quo• Works in the system• Reacts to situation• Controls risks• Enforce organizational rules• Seeks and then follows directions.• Controls team by direction.• Coordinates efforts.• Provides instruction.

Types of Leadership Style

• Autocratic leadership style• Democratic leadership style: persuasive or consultative • Laissez-faire leadership style

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• A leadership style where the leader makes all decisions independently or without consulting with others

• Advantages: good in certain circumstances, such as urgent tasks or military actions

• Disadvantages: poor decisions, poor level of employee motivation

Autocratic

Types of Leadership Style

• A leadership style where a leader encourages employee participation in decision-making

• persuasive or consultative • Advantages: better decisions, employee

motivation .

• Disadvantages: delayed decision, long consultation

Autocratic

Democratic

Types of Leadership Style

• A leadership style where employees are encouraged to make their own decisions within limits.

• Advantages: more freedom for employees

• Disadvantages: few guidelines, little incentive, poor motivation, maybe a mess

Autocratic

Democratic

Laissez-faire

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Types of Leadership Style

Comparison of Leadership Style

Factors affecting of Leadership Styles

• The task • The tradition of an organization • The type of labor force• The leader’s personality • The time • Gender

Questions????

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Transactional and Transformational Leader

• Contingent Reward• Management by

Exception (active)• Management by

Exception (passive)• Laissez-Faire

• Idealized Influence• Inspirational Motivation• Intellectual Stimulation• Individual Consideration

Transactional LeadersLeaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements

Transformational LeadersLeaders who provide the four “I’s” (individualized consideration, inspirational motivation, idealized influence, and intellectual stimulation)

Characteristics of Transactional Leaders

Contingent Reward: Contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments

Management by Exception (active): Watches and searches for deviations from rules and standards, takes corrective action

Management by Exception (passive): Intervenes only if standards are not met

Laissez-Faire: Abdicates responsibilities, avoids making decisions

Characteristics of Transformational Leaders

Idealized Influence: Provides vision and sense of mission, instills pride, gains respect and trust

Inspiration: Communicates high expectations, uses symbols to focus efforts, expresses important purposes in simple ways

Intellectual Stimulation: Promotes intelligence, rationality, and careful problem solving

Individualized Consideration: Gives personal attention, treats each employee individually, coaches, advises

• Which Leadership Style Is Best?

• Depends on function of the leader, subordinates, and situation• Some leaders can’t work well with high participation of subordinates• Some employees lack the ability or desire to assume responsibility• Participative decision making may be better when time pressure is

not acute

Managers as Leaders