LO2

UNDERSTAND DIFFERENT APPROACHES TO MANAGEMENT AND

LEADERSHIP

Presented and Developed by:

Sandeep Singh Sikerwar

Associate Professor

Maldives Business School,

Mal, Maldives

POINTS TO BE COVERED

Compare the effectiveness of different leadership styles in different organizations.

Explain how organizational theory underpins the practice of management.

Evaluate the different approaches to management used by different organizations.

LEADERSHIP

A SHORT STORY

A group of workers and their leaders are set a task of clearing a road through a dense jungle on a

remote island to get to the coast where an estuary provides a perfect site for a port.

The leaders organise the labour into efficient units and monitor the distribution and use of

capital assets progress is excellent. The leaders continue to monitor and evaluate progress, making

adjustments along the way to ensure the progress is maintained and efficiency increased wherever

possible.

Then, one day amidst all the hustle and bustle and activity, one person climbs up a nearby tree. The

person surveys the scene from the top of the tree.

And shouts down to the assembled group below

Wrong Way!

(Story adapted from Stephen Covey (2004) The Seven Habits of Highly Effective People

Simon & Schuster).

Management is doing things right, leadership is doing the right

things. (Warren Bennis and Peter Drucker)

LEADERSHIP

Leadership is the process of influencing others to work willingly towards

goals, to the best of their capabilities, perhaps in a manner different to

that which they would otherwise have chosen.

(BPP, 2000)

SOME MORE DEFINITIONS

The essence of leadership is followership. In other words it is the willingness of people to

follow that makes a person a leader.Koontz, ODonnell & Weihrich

Someone who exercises influence over other people'. Leadership is seen as 'a social process in

which one individual influences the behavior of others without the use or threat of violence'.

Buchanan & Huczynski

The ability to influence others, with or without authority.

Peter DeLisle

FUNCTIONS OF A LEADER

Create a vision

Communicate the vision

Energies, inspire and motivate.

Create the culture

TRAITS OF A GOOD LEADER

Intelligence Initiative Self assurance

Individuality CharismaInter-personal skills

Analytical thinking

Imaginative Decisiveness

Trust-worthiness Trust-worthiness Persuasiveness

Self-motivation Flexibility Vision

TELLS-SELLS-CONSULTS-JOINS

Autocratic

Tells

Persuasive

Sells

Participative

Consults

Democratic

Joins

TELLS (AUTOCRATIC)

Characteristics

Manager makes all the decisions

Issues instructions which must be obeyed without question.

Strengths

Quick decisions making.

Most efficient, highly programmed & routine work

Weakness

One-way communication, lack feedback.

Does not encourage contribution or initiative from subordinates.

SELLS (PERSUASIVE)

Characteristics

Manager still makes all the decisions

Explains them to subordinates.

Motivate subordinates to carry them out willingly

Strengths

Selling decisions to staff might make them more willing.

Staff have better idea what to do in in when unforeseen event arises.

Weakness

Subordinates make not be committed to decisions.

Tells style dressed up with pretended concern for employees' views.

CONSULTS (PARTICIPATIVE)

Characteristics

Manager confers with subordinates and takes their views and feelings into account.

Retains the right to make the final decision.

Strengths

Employees are involved in decisions.

Encourages motivation through greater interest and involvement.

Employees can contribute knowledge and experience.

Weakness

It might take longer to reach decisions.

Subordinates limited view on organizational issues.

If employees advice is not taken, they might consider process as meaningless.

JOINS (DEMOCRATIC)

Characteristics

Leader and followers make the decision together.

Decisions are based on basis of consensus or compromise and agreement.

Strengths

Provide high commitment.

Advantage of the knowledge and expertise of individuals.

Weakness

Authority of the manager might be undermined.

Decision-making might become a very long process.

Clear-cut decisions might be difficult to reach.

CONTINUUM OF MANAGEMENT STYLES

GOLEMANS STYLES OF LEADERSHIP

Coercive

Do what I tell you.

Pacesetting

Do as I do, know.

Coaching

Try this.

Democratic

What do you think?

Affiliative

People come first.

Authoritative

Come with me.

STAGES OF LEADERSHIP MATURITY

Opportunist

Strong reliance on power that is authoritarian, hierarchical, and inflexible.

Uses unilateral power.

Sees the world as battlefield.

Manipulative and deceptive, reject feedback, externalize blame, are mistrustful.

Self-interest and self needs rule the opportunist's world view.

Diplomat

Pluralistic power ie, power through consent.

Socially expected behavior and trying to be 'nice' and cooperative.

Fears breaking rules and any sort of conflict.

Belonging, loyalty and pleasant low stress relationships.

Expert

Right way' to do things.

Develop own skills and expertise to become a 'craft master'.

efficiency

Values efficiency over effectiveness, consistency, incremental improvement and perfection.

Interested in problem solving.

STAGES OF LEADERSHIP MATURITY

Achiever

Effectiveness through, application of strategies, plans and actions.

Feel like initiators, but are more likely to take on given goals than self-create.

Set high standards for themselves and others.

Feel guilt if they fail to meet these standards

Strategist

Delighting in paradoxes, anomalies and unique events.

Sees the big picture and holds long-term perspective.

Guided by deeply held principles within a personal moral code.

Engaged in striving to comprehend the worldviews of others and to engage in participative

Magician

Transformation of society, organization and self.

Seeks common good, enjoys interplay of purposes, actions and results.

Appreciate polarities and acknowledge the ongoing relation between them.

Illusive, chameleon-like and may be powerful

MANAGEMENT

The art of getting things done through

people.

(Mary Parker Follet,1868-1933).

Management is a process which exists to

get results by making the best use of the

human, financial and material resources

available to the organization and to the

manager.

(MichaelArmstrong, 1995)

FUNCTIONS OF MANAGEMENT

Planning

Organizing

Commanding Coordinating

controlling

Henry Fayol, 1965

APPROACHES

Scientific management Classical administration Bureaucracy Human relation approach

System approach Contingency approach Management today

SCIENTIFIC MANAGEMENT

Scientific Management: emphasized the scientific study of work

methods to improve the productivity of individual workers.

Two of its chief proponents were

Frederick W. Taylor, & Frank and Lillian Gilbreth

SCIENTIFIC MANAGEMENT

F.W. Taylor(Father of Scientific Management), while working at Midvale Steel Co. in

the US in 1878.

Production and pay were poor ,inefficiency and waste were prevalent and most

companies have un-used potential.

Wanted to replace rule of thumb.

Concluded- Management decisions were unsystematic and no efforts were made

to determine the best means of production.

Recommended the application of scientific methods to analyze work and to

determine the methods to complete the tasks efficiently.

PRINCIPLES OF SCIENTIFIC MANAGEMENT

Replace working by "rule of thumb," or simple habit and common sense with scientific method to study work and determine most effective way to perform.

Match workers to their jobs based on capability and motivation, and train them to work at maximum efficiency.

Monitor worker performance, and provide instructions and supervision to ensure that they're using the most efficient ways of working.

Allocate the work between managers and workers so that the managers spend their time planning and training, allowing the workers to perform their tasks efficiently.

Competitive pay system

Compatibility between organizational and individuals goals.

FUNCTIONS OF SCIENTIFIC MANAGEMENT

Study jobs systematically with a view to improving the way tasks are performed

Select the best employees for the various jobs.

Train the employees in the most efficient methods

Offer incentives (higher wages) to the most able employees and use piece-rate system of payment to encourage greater effort.

Use rest pauses to combat fatigue

Entrust to supervisor the task of ensuring that employees are using the prescribed methods

APPLICATIONS

Assembly Line Plants as Prototypical Examples

Prisoners of Taylorism

System of Remuneration (quotas - commission)

Re-Design - Reengineering

Benchmarking

Data are used to refine, improve, change, modify, and eliminate organizational processes

Lean Manufacturing

ADMINISTRATIVE APPROACH Administrative Management: Concerned with managing the total organization.

Pioneering theorist:

Henry Fayol

Max Weber

Principles and Elements of Management - How managers should accomplish their

managerial duties.

More Respect for Worker than Taylor

Workers are motivated by more than money

Equity in worker treatment

FAYOLS 14 PRINCIPLES

Division of work - limited set of tasks

Principle 1

Authority and Responsibility - Delegation

Principle 2

Discipline - Agreements and sanctions

Principle 3

Unity of Command One & only one boss

Principle 4

Unity of Direction Common objective & direction

Principle 5

Subordination of Individual Interest to General Interest

Principle 6

Remuneration of Personnel -Fair price for services

Principle 7

Centralization - Reduce importance of subordinates

role

Principle 8

Scalar Chain - Fayols bridge

Principle 9

Order - Effective and efficient operations

Principle 10

FAYOLS 14 PRINCIPLES

Equity - kindliness and justice

Principle 11

Stability of Tenure of Personnel - sufficient time

for familiarity

Principle 12

Initiative - managers should rely on workers initiative

Principle 13

Esprit de corps - union is strength loyal members

Principle 14

FAYOLS 14 PRINCIPLES

APPLICATIONS

Positioned communication as a necessary ingredient to successful management

Fayols elements of management are recognized as the main objectives of modern managers

Planning - more participatory

Organizing - human relationships and communication

Especially applicable for large organizations (military)

BUREAUCRACY APPROACHGerman Sociologist

Theory of Social and Economic Organization (1947)

Principles and Elements of Management - describe an ideal or pure form

of organizational structure (general policy and specific commands)

PRIMARY FOCUS: Organizational Structure

Worker should respect the right of managers to direct activities dictated

by organizational rules and procedures

More DESCRIPTIVE

Bureaucracy allows for the optimal form of authority - rational authority

TYPES OF AUTHORITY

Traditional authority

Past customs, person loyalty

Charismatic authority

Personal trust in character & skills

Rational authority

Rational applications of rules or laws

BUREAUCRACY THEORY

Hierarchy

Specialization and training

Impersonal nature

Professional nature

Rationality

Uniformity

Technical competence

stability

APPLICATIONS

Large organizations guided by countless rules are bureaucracies

Linked with inefficient, slow-moving organizations

Organizations have several characteristics of bureaucracies

HUMAN RELATION APPROACH

Emphasize: Importance of human attitudes, values and relationships for the efficient and effective functioning.

We have thought that first-class technical training was sufficient in a

modern and mechanical age. As a consequence we are technically

competent as no other age in history has been, and we combine this with

utter social incompetence.

(Elton Mayo, 1975)

FOCUS OF THE APPROACH

People need companionship and belonging, and seek satisfaction in the social

relationships they form at work.

Western Electric Hawthorne plant- see if different lighting affected workers

productivity

Productivity shot up, whatever they did with the lighting.

Conclusion: Management, by consultation with the girl workers, by clear

explanation of the proposed experiments and the reasons for them, by accepting the

workers' verdict in several instances, unwittingly scored a success in two most

important human matters the girls became a self-governing team, and a team that

co-operated wholeheartedly with management

RESULT OF THE STUDY

Individual behavior and sentiments are closely related.

Group influences significantly affected individual behavior.

Group standards established individual output.

Money was less a factor in determining output.

Group standards, group sentiments and security provided by the group were responsible for higher productivity

SYSTEMS APPROACH

Developed at Tavistock Institute of Human relations in 1950.

System: 'an entity which consists of interdependent parts.

System as an organized, unitary whole composed of

two or more interdependent parts, components, or sub

systems and delineated by identifiable boundaries from

its environmental suprasystem.

(Kast and Rosenzwing, 1979).

Closed system

Shut off from the environment and independent of it.

Open systems

Which is connected to and interacts with its environment.

Organizations are open social system.

SOCIO-TECHNICAL SYSTEM

Emphasize: Existence of sub-systems, or parts of the bigger system.

Developed: 1951 by Trist and Bamforth.

A structure

Division of labor, authority relationships and communication channels.

A technological system

The work to be done, and the techniques and tools used to do it.

A social system

The people within the organization, the ways they think and interact with each other

APPLICATIONS

Organization is continuously reacting to internal and external changes

Sub-systems have conflicting goals which must be integrated, often with some compromise

An awareness of the environment of the organizations vital if the organization is to survive.

CONTINGENCY APPROACH

Based- Idea that there are universal principles for designing organization, motivating staff and so on.

In developing management concepts the environment within which the concepts

are to be applied has to be considered.

Internal environment Structure, Processess, Technology.

External Environment Social, Economic, Political etc.

Features Appropriateness of a management technique depends on situation.

If - Then approach.

IMPORTANCE OF CONTINGENCY APPROACH

Encouraging managers to identify and define the particular circumstances of the

situation.

Encouraging responsiveness and flexibility to change.

MANAGEMENT TODAYO

ld o

rga

niza

tiona

l st

ruct

ure Hierarchal

Tall structure Single function

specialism

Focus on tasks and responsibilities

Systems

Pre

sent

org

ani

zation Everything is

international

Everything is new Everything is faster Everything is

turbulent

CHARACTERISTICS OF NEW ORGANIZATION

Culture- Changed from protective to

productive.

From competitive individualism to teamwork and co-operation.

From security to flexibility

Re-integration of jobs

Multi-skilling

Flexible working

Empowerment