ROLE OF MANAGEMENT AND LEADERSHIP

Management

Writers who consider the functions performed by management Frederick Taylor Henri Fayol Peter Drucker Henry Mintzberg

Federick Taylor

Early 20th century Management of work task Rationality scientific principles to work management Most efficient way of working Scientific management
Efficiency Standardization

Discipline

Principle of division between managerial and work roles Principle of standardization and specialization Principle of division of labor and efficiency These principles still remain significant

Taylors work preceded the adoption of mass production techniques Little systematic research Workers believed that increasing in productivity job losses took advantage of poor management controls to slow down productivity

Many modern orgs (with similar outputs with continuous process) still adopt Taylor-like principles to increase productivity

Taylors work is now taken for granted and rejected by a more human or social considerations

Henri Fayol

Did not invent the concept of management BUT

He distinguish management from other organizational activity He outlined the prime functions of a manager

Normative and prescriptive model

Indicates

how managers should conduct their activity (in order to achieve efficiency Functions of management

Functions of management

Plan and forecast prepare a series of actions to enable the organization to meet its objectives in the future Organize to fulfill the administrative principles embraced by Fayol Coordinate to ensure that resources, actions and outputs are coordinated to achieve desire outcomes Command to give direction to employees Control to ensure that activities are in accordance with the plan/ that orders are followed/ that principles of management applied

Fayols 14 principles of management

Challenged by modern development of organizations Unity of command vs matrix organization Fayols principles vs Teamworking, flatter hierarchies, professional control, flexible working

Peter Drucker

Describe and comment upon what manager do Prescriptive analysis of the management role Three broad tasks of managers
Satisfying

the goals or mission f the organization Enabling the worker to achieve and focus on productivity Managing social responsibilities

Managers are required to 1) set objectives 2) organize 3) motivate and communicate 4)

Drucker vs previous works

More concern about human and interpersonal issues Recognize importance of communications and social concerns

Henry Mintzberg

Detailed observations of what managers actually did (not prescriptive; myths of modern management) In reality managers did not spend most of their time planning, organizing, coordinating, commanding and controlling

10 roles that managers do

Mintzbergs sequence of activity in the pursuit of objectives

Interpersonal managers internally build relationships with employees and network with other depts. Information collect info and act as spokesperson for the group develop stable relationships quality information Decisional decision making, setting objectives, resource allocation

Typical managers day

Frequent

interruptions for brief conversation by phone, in person, email to keep managers informed

Rosabeth Moss, Tom Peter, Henry Mintzberg

Focus

on strategic perspective on management Importance of mission and vision Customer oriented values Paint a picture of the conditions necessary for organizational success

Leadership and management

Manager performs functions in orgs and hold a particular, formal, title and/or fulfill a role
manager marketing of a product Personnel manager recruitment and selection of staff Have a title, a role, a series of functions to perform, management of subordinates, management of financial resource Planning, organizing, coordinating, commanding, controlling the activities of staff
Marketing

Leaders aim to influence and guide others into pursuing particular objectives or visions of the future and to stimulate them into wanting to follow Demonstrates the power of one individual over others Leadership is not necessarily related to hierarchical position (authority) as managers tend to be informal leaders Leadership = dynamic activity concerning more with changing attitudes, inspiration, emotional input than management

Managers may show leadership qualities on particular occasions Mintzberg includes the leader role as one of his ten roles of management Handy (1993), Watson (1983), Kotter (1990) leadership is merely part of the broader role of management

Leadership

General definition (Lundstedt 1965) leadership involves influencing the behavior of others in any group or organization, setting goals, formulating paths to those goals, and creating social norms in the group

Definition of leadership two common elements

Group

phenomenon 2 or more people must be involved process

Influence

Influence flow from leaders to followers Followers grant the leadership role to leader leaders rallying people together and motivating them to achieve some common goals

Leader as Symbol move the group toward set goals in a definite manner The Uniqueness of leadership roles The achievement of Leadership Positions Influence, Power, & Authority in leadership

Influence Tactics (Yukl 1994)

Rational Persuasion Inspirational Appeals Consultation Ingratiation Personal Appeals Exchange Coalition Tactics Legitimating Tactics Pressure

Authority rational basis of power Rational side of org what an org should do according to the official, formal dictates of org Political side of organization what organizations actually do

Authority

**the rationally based formal right to make decisions and influence behavior to implement decisions based on formal organizational relationships**

2 subrights The right to decide

The right to issue appropriate implementing instructions or directions

Rights are determined by obligation Obligation (responsibility) determine the nature of the right (authority) balanced

Authority = a right determined by an obligation Authority is solely associated with formal org, with formal sanction or approval from society

Forms of authority

Managerial authority Staff authority Situational authority Operative authority

Managerial Authority

Managers are responsible for acquiring, deploying, & controlling resources needed to accomplish objectives

Rights to choose among alternatives The right to enforce those choices based on official position

Principle of parity of authority and responsibility Balance between responsibility & authority

Staff Authority

Suggestions & recommendations about the solutions to problems, procedure, or improvements

Right to recommend Right to suggest Right to advise Right to attempt to exert influence to gain acceptance for ideas

Ex. TQM, suggestion boxes, employee empowerment, decentralizing org.

Situational Authority

Hybrid authority Contains both managerial and staff authority Delegated by managers to a staff expert

Operative Authority

All members have this authority make certain decisions about how, in what order, which tools they carry out their tasks right to work without undue supervision

Power

the ability to impose ones will on others the ability of one person to affect the behavior of someone else in a desired way Based on factors such as knowledge, authority, information, personality, resource control

Authority simple power associated with formal organization Power influence that does not necessarily depend on formal organizational recognition Example

Two Perspectives on Power

The French and Raven Power Typology individual bases of power Dependency, Critical Contingencies, and Power how individuals, groups, or departments gain power through dependency relationships

French & Raven Power Typology

Sources & potency of power in org

Rational/legal

power Reward Power Coercive power Referent power Charismatic power Expert power

Dependency, Critical Contingencies, and Power

Power through control of resources Power through solving critical or strategic contingencies Level of substitutability Power and location in the org Power and position in the org

How to assess power ?

Determine by sources or origin of power judgment about how much of particular power a person/department possesses Determine by consequences of decisions made by various actors Determine by power symbols larger office, luxurious furniture, more expensive company cars

Representational indicators of power memberships on influential boards or committees

Three levels of leadership

Executive

Managerial
Supervisory Informal

leadership

Three major theories Leadership & organization theory

Executives

establish bureaus structure (including positions filled by managers and supervisors maintain general view of the bureau and its place within political envi Interpret political statements of intentions (unclear & contradictory) into rational goals & policies Create environment that encourage goal achievement close attention to org environment (take advantage of opportunity & protect org from threats

manager

depend on rules & regulations that define their power over others interpret org goals (set by executives) in concrete manner (into structure, procedure, tasks

often pulled by superiors & subordinates focus on how org can be best organized to achieve the overall goals established by executives

Supervisor

focus on motivation, productivity, interpersonal relations work directly with production process protect subordinates from political pressure

Informal leadership

have no official leadership positions need to understand informal leadership phenomenon along with formal one

Executive leadership

Most important influence skillful playing of political game power Administrative conservators
Preserve

institution Improve institution

what is political climate? what is the resource base? what is the potential for mobilizing support for the program?

The Managers

in the middle Traits (Stogdill 1981)

Capacity intelligence, alertness, verbal facility, originality, judgment Achievement scholarship, knowledge Responsibility dependability, initiative, persistence, aggressiveness, self-confidence Participation activity, sociability, cooperation, adaptability, humor Status Socioeconomic position, popularity Situation mental level, status, skills, needs and interests of followers, objectives to be achieved

The Supervisors

getting the work done Three major focuses

Production

Maintenance

of individual morale Maintenance of group cohesiveness

Supervisory behavior (Bass 1990)

Consideration

extent to which a leader shows concern for the welfare of the other members of the group, appreciation of good work, stress importance of job satisfaction
of structure extent to which a leader initiates activities in the group, organizes it, & defines the way work is to be done

Initiation

Leadership: School of thought

Three broad schools

Trait

Theories:
20th century focus on personal characteristics of leaders Partial explanation/superficial perspective on leadership issues

Behavioral

theories

Focus on behaviors of leaders including styles of leadership Non-context specific

Situational

theories

Focus on the leader in the context or situation in which he/she leads Add richness to the study of leadership

Trait Theories

Individuals ability to lead social background, intelligence, other personality features Bennis and Nanus (1985) relationship bt leadership effectiveness and the traits (logical thinking, persistence, empowerment, selfcontrol)

Logical thinking
Ability

to translate ideas into simple forms Persuasive abilities Explaining phenomena in unique ways

Persistence traits
Considering

setbacks as minor mistakes Working long hours Attempting to succeed against the odds

Empowerment traits
Enthusing

people about their goals Being enthusiastic and energetic oneself Increasing confidence in employees own abilities

Self-control traits
Working

under pressure Remaining calm and even-tempered Resisting intimidation

Other research meta-analytical work bring findings from separate research projects together (ex Kirkpatrick & Locke 1991) list of leadership qualities disagreement, less insights, try to relate two or more unrelated variables

Behavioral Theories

Examines leadership behavior (that have influences the performance and motivation of subordinates) Focus on leadership style **

Ohio State University research (1940s and 1950s) Two fundamental types of leader behaviors
Initiating structure Consideration

Initiating structure behavior which focuses on the achievement of objectives and includes clear supervision and role clarification, planning work, and a results orientation Consideration behaviors which encourage collaboration and focus on supportive networks, group welfare and the maintenance of job satisfaction

University of Michigan Leaders exhibited

Employee

centered (people orientation) Production centered (task orientation)

One best style of leadership

Leader

who exhibits high initiating structure and high consideration behaviors (strong orientation of both task and people)

Leadership style
the behavior of leaders towards subordinates, the manner in which tasks and functions of leadership are conducted

Tannenbaum & Schmidt (1973)

Continuum

in leadership styles boss-centered approach --- subordinate-centered approach

Simple style continuum

Leaders style can be mapped along a continuum between the authoritarian and democratic ends

Criticism: Only one dimension

Join leader define problem, but leave it open for alternative problem definitions to arise and for the scope of the endeavor to expand become member of the problem-solving group and hands over decision making power to the group Consults leader identifies the problem and makes decision (only after listening and possibly adopting solutions suggested Sells manager decides on the solution to the problem persuades staff that his/her decision is more valid Tells leader identifies problem, decides on solution, expect staffs to implement such decisions without questioning

Leaders decisions will always be influenced by the situation they find themselves Contextual factors
Group

Combine to determine the most appropriate leadership style

effectiveness Nature of task environment Pressures of time Forces in subordinate Subordinates level of experience and the style to which they are accustomed Forces in the leader knowledge and preferred style

Choosing an appropriate style

Leader consider
their

own value system and leadership inclination Level of confidence they have in their subordinates Subordinates ability to cope with uncertainties of the situation Evaluate the nature and experience of their subordinates Subordinates readiness to assume responsibility Subordinates knowledge and interest

John Adair
Action-centered

leadership 3 areas of need which leader must satisfy

Task needs Individual needs Team maintenance needs

HIGHLY EFFECTIVE LEADER

Conclude: 4 broad leadership style

Task/structure

orientation 1 People/interpersonal orientation Directive/autocratic leadership Participative/democratic leadership

**McGregors Theory X and Theory Y**

**McGregors Theory X and Theory Y** Leader and managers could be differentiated from one another according to their attitudes and assumptions about human nature

Theory X leader believe people are lazy, dont want responsibility, no ambition they need to be controlled, directed, coerced and punished (Maslows hierarchy of need # 1 and #2) Theory Y leader believe people align themselves with org goals need little control or direction, seek reward consistent with their performance, have initiative and creative skills motivated by affiliation, esteem, and self actualization (Maslows # 3,4,5)

Blake & Mouton (1964) managers style can be mapped along

Degree

of People orientation Degree of Production orientation

High people + High Production desirable

Trait what a leader is Behavioral what a leader does

Criticism
high task (structure) + high people (consideration) = high performance **reality is more complicated** leadership might be both cause and effect ** **ignore the context or situation in which leaders and followers find themselves**

Situational Theories

Trait (T)

+
Behavioral (B) + Context (C) Contingent factor

more complex and more promising explanation of leadership

Fiedlers Contingency Theory

leadership behavior interacts with the favorableness of a situation to determine effectiveness Some situations are more favorable than others require different behaviors Require the assessment of
Leaders style Three broad characteristics of the context (situation)

Leader-group member relations nature of work atmosphere loyalty, trust, etc Task structure clarity of groups work, understanding of groups goals Position power a leaders legitimate power to tell others what to do

Leadership style
Relationship-centered:

leader is motivated to maintain good interpersonal relations Task-centered: leader is motivated to get on with the job

Leaders indicate their orientation toward their least-preferred co-worker (LPC)

Accepting LPC = relationship-orientated Look at LPC as few qualities = task-orientated

Leaders personality trait or Leaders motivational

Task orientation suits highly favorable or highly unfavorable situations

unfavorable situation ex. Military: dangerous task to perform (face with enemy in unfamiliar territory = unstructured task with strong position power adopt task orientated approach (giving clear orders and demand compliance) Highly favorable situation ex. Managers enjoy good relations with workers clearly structured task (not much debate or no decision-making ability is required) adopt task oriented approach to ensure high productivity
Highly

Relationship orientation
Best

suit to average situational favorability Org should not focus on attempt to change leaders personality BUT should select leaders to match the situations favorability

Houses path-goal theory

It is a leaders function to clarify pathways for subordinates to achieve their desired rewards their motivation increase Leader provides rewards and clarifies pathway between
Employee

effort and performance Performance and reward

Path-Goal Theory of Leadership

Effective leaders increase motivation and satisfaction among subordinates when they help them pursue important goals
Leaders

help subordinates to see the goals The paths to achieve those goals How to follow those paths effectively Show the values of outcomes Using appropriate coaching and directing Removing barriers and frustrations to those paths

Directive behaviors: planning, setting expectations and clarifying instructions Supportive behaviors: offering friendly consideration Participative behaviors: involving subordinates in decision making Achievement-orientated behaviors: setting objectives and expecting them to be achieved

Directive leadership

good for ambiguous task bad when task is well structured and clear

Supportive leadership

good when tasks are frustrating and stressful bad when groups or other parts of org already provide plenty of encouragement

Achievement-oriented leadership

good for tasks toward ambitious goals

Participative leadership

good for ambiguous task & that subordinates feel their selfesteem is at stake participation allows them to influence decisions and work out solutions

Vroom and Yetton Contingency Model

Develop a decision-making leadership contingency model Three leadership styles

Autocratic

decision or problem solving, using information available to leader at the time leader collects information and then makes decision/solves the problem leader shares the problem with subordinates individually or as a group and then leader makes decision
leader shares the problem with the group and together they find solution or consensus

Consultative

Group

Leader-Member Exchange Theory (LMX)

Dyadic relationships

between a leader and individual subordinates On development of low-exchange and hi-exchange relationships

Low-exchange relationships

little mutual influence between the leader and subordinate subordinate follows formal role requirements receive standard benefit (salary)

High exchange relationships

leader establishes with a set of trusted subordinates mutual influence relations subordinates receive benefits in the form of more interesting assignments and participation in important decisions leaders expectation of hard work, loyalty, more responsibility

Transformational Leadership

Transactional Leadership
Motivate

followers by recognizing their needs and providing rewards to fulfill those needs in exchange for their performance

Transformational Leadership
Raise

followers goals to higher level goals self actualization (Maslow) Motivate followers to transcend their own narrow selfinterest for the benefit of the community or the nation (MLK Jr.)

Transformational behaviors

Idealized influence

Arouses followers emotional attachment to the leader and identification with him/her

Intellectual stimulation

Engages followers in recognizing and confronting challenges

Individualized consideration

Provides support, encouragement and coaching

Inspirational motivation

Communicates an appealing vision by using symbols or modeling appropriate behaviors

Transactional Behaviors

Contingent reward

Clarifying the work required for rewards Ensuring that rewards are contingent on appropriate behaviors

Passive management by exception

Punishments in response to obvious deviations from acceptable standards

Active management by exception

Looking for mistakes and enforcing rules to avoid mistakes

Leading & Managing (Bennis and Nanus)

Managing
Taking

charge, accomplishing goals with efficiency doing things right

Leading
Guiding

directions, actions, & opinions doing the right thing

Excellent leader

Attention through vision

Create

visions of successful futures Bring out the best of both leaders and followers

Meaning through communication

Transmit

the vision to others through giving meaning to their works and their quest

Trust through positioning

Choosing

the best course At knowing what is right and neccessary