ahbm - internal organisations lts notes
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NATIONAL QUALIFICATIONS CURRICULUM SUPPORT
Business Management
Managing Organisations:The Internal Environment
[ADVANCED HIGHER]
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Contents
Introduction 5
Section 1: Role of management
Fayol 8Henry Mintzberg 9
Peter Drucker 11
Rosemary Stewart 11
Conclusion 13
Section 2: Management theory
Classical school 14
Human relations school 16
Neo-human relations school 18
Systems theory 19
Contingency theory 20Conclusion 21
Section 3: Motivation to work
Maslow 23
Herzberg 24
Non-financial incentives 25
Financial incentives 30
Conclusion 32
Section 4: Teams
Role of teams in organisations 37
Group development 38
Characteristics of effective teams 39
Potential issues with teams 46
Conclusion 48
Section 5: Leadership
Manager vs leader 50
Leadership theories 51
Factors affecting leadership style 59
Conclusion 59
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CONTENTS
Section 6: Personal effectiveness of managers
Time management 62
Prioritising 62Personal qualities 63
Section 7: Change
Factors causing change 65
Force field analysis 70
Stages of change 74
Factors to be addressed during a change programme 76
Resistance to change 76
Organisational culture and change 78
Approaches to managing change 81
Examples of change Operations management 84
Answers to SAQs 89
Exercises 100
Suggested answers to exercises 104
References 110
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INTRODUCTION
Introduction
This pack contains student notes and exercises to support the teaching of Business
Management (AH): Managing Organisations, The Internal Environment.
Further details of the items included are given below. Overall, however, the
material is designed to reflect the fact that Advanced Higher places considerable
demands on students. It is intended to be challenging and to encourage students toengage fully with the relevant concepts and ideas. Teachers and lecturers should,
therefore, be prepared to offer support to students to help them to deal with the
material, especially during the early stages of the course. This should result in
substantial positive benefits for students who should develop a firm foundation
both for the Advanced Higher course and for future study.
Student Notes These provide the underpinning knowledge for Advanced HigherBusiness Management. Students should be encouraged to make use of relevant
textbooks, other library resources such as business oriented magazines and
periodicals (e.g. The Economist) as well as the internet to source additionalinformation on topics.
Self Assessed Questions (SAQs) and Activities SAQs are provided, together withanswers, throughout the text to develop students understanding further, while the
activities offer them the opportunity to undertake further research when time
permits. Answers to all the SAQs are provided at the end of the notes before the
exercises.
Exercises These include a variety of questions:
Some to ensure that the theory of the topic is understood
Some being summary case studies where student are asked to put theory into
practice
Others are research questions where students must investigate a situation and
suggest how they would apply the theory of what they have learned into a real
business situation.
In a number of cases use of the internet as a research device is suggested; however,
alternative written material is normally available from a variety of sources.
Suggested answers to exercises These are provided for guidance only. In avariety of situations there are no clear right or wrong answers, but students should
show a firm grasp of what is being asked, and apply their acquired knowledge to
the situation described. In many cases students should be encouraged to research
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ROLE OF MANAGEMENT
the area of the question by looking at the business press (such as journals, daily
newspapers), the internet and other sources to gain a better understanding of the
subject area.
References These give the sources of the material used in the core text and, assuch, this represents good academic practice. They may help students who wish to
pursue a particular topic further or to a greater depth. It is not expected, however,
that students should access all the references directly nor that they should all be
immediately available to students.
The Internal Environment, External Environment and Business Report units can be
taught in any order; however, the Change section in Internal Environment is
particularly useful in linking the elements of the course together.
At Advanced Higher level every effort should be made to encourage independentlearning among students and to help them to prepare for future academic study. In
Business Management, this includes the development of an analytical, enquiring
approach and a recognition that there is rarely a single unambiguous way forward
in any particular situation. Any approach may well have advantages and
disadvantages, which need to be weighed against the pros and cons of other
possibilities. Students should be guided to consider why actions have been taken,
or could be taken, and what the justification for these might be.
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ROLE OF MANAGEMENT
Section 1: Role of management
In todays world we all manage we organise our lives, accomplish ordinary tasks
and maintain routines. We manage our time, our resources and sometimes others,
yet we are not called managers. Those who are called managers are normally
people who are trained to employ, shape and regulate. They work in all types of
organisations from the large multinational company down to the small business.
Many people, indeed, are managers without that title for example, headteachers,bishops, newspaper editors, etc. but they all manage people and resources.
Management involves having power and control over people, although people will
accept this if managers behave in an appropriate fashion.
Management are a very important group within the business context. Without
managers, quite simply, its unlikely that things would get done.
Companies of all sizes employ managers. Managers are responsible for not only
their own work, but for others work too. In a small company one manager may
be responsible for all managerial work, but as the company grows, more
managers will be needed to manage the resources, including people, of the
company.
SAQ 1
What kinds of things do you think managers in an organisation do?
The role of management covers the part that managers play in an organisation.
Your response to SAQ 1 will have given you some ideas about what this involves.
Several writers have suggested ways in which the role of managers can beexplained. This section looks at four contributions. They are:
Henri Fayol elements of management
Henry Mintzberg managerial roles
Peter Drucker management by objectives
Rosemary Stewart demands, choices and constraints of the managers job.
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Henri Fayol
The Frenchman, Henri Fayol (18411925), was one of the first people to writeabout management. His work is the basis of the Classical School of Management
described in Section 2: Management Theory. His frameworks for the study of
management are still used today. His main purpose was to identify the one best
way of organising or managing. He argued that management consists of five
elements:
1 planning
2 organising
3 commanding
4 co-ordinating
5 controlling.
Planning is the starting point. It creates a framework for future decisions. It
involves setting clear objectives and devising strategies, policies, programmes and
procedures to achieve those objectives. For a senior manager this might be writing
a company strategy document covering the next five years; for a supervisory
manager this might be planning detailed work for the next working week.
Organising involves getting the right resources together and creating an
appropriate organisational structure to divide up the tasks. It also involves
establishing communication networks to achieve organisational goals.
Commanding or directing involves giving instructions in order that the necessary
tasks are carried out tasks could be carried out either individually or by
delegation to others.
Co-ordinating or motivating involves finding and training staff for the task to be
carried out and ensuring the staff are motivated to perform the tasks and that all
are working to the same goals.
Controlling is essential to ensure that organisational goals have been achieved.
It involves maintaining performance levels by monitoring and evaluation, i.e.
collecting and analysing key management information, comparing actual vs
planned performance and critically reviewing plans. A senior manager mightlook at long-term planned vs actual performance, whereas a supervisory manager
might be more concerned that work is of the correct quality and that the work is
done on schedule.
Activity
Consider Fayols five elements of management and apply them to a manager you
have some knowledge of, for example the manager of your favourite football team;
your manager at a part-time job; your tutor. How does what they do fit in with
Fayols list?
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Robert Katz stated that managers need three groups of skills to carry out such
tasks:
1 Technical
2 Human
3 Conceptual
Technical skills refer to the ability to use tools for the job, e.g. theability to use a spreadsheet for budgeting.
Human skills refer to interpersonal skills, which are of paramount importance in
people management.
Conceptual skills refer to the ability to see the big picture and understand theimpact one factor might have on another.
Below, Richard Branson illustrates how human and conceptual skills are key to the
success of Virgin.
Make all staff part of the management team
Virgin pays some of the lowest salaries in the industry, yet its staff are very
talented and loyal paradox? The companys success in this field is down to Sir
Richard Bransons management philosophy, where all staff feel valued andBranson is just as interested in a flight stewardesss opinion as he is in his
Marketing Directors.
Successful people management is about inclusion, and Branson works on making
all his staff feel like a team where each is valued not only for fulfilling their job
remit but for contributing to the development of the business as a whole.
Adapted from The Virgin Factor (May 2000), The Management Insights
Henry Mintzberg
In the 1970s Henry Mintzberg observed five chief executives at work in five
different American companies: a major consulting firm; a well-known teaching
hospital; a school system; a high technology firm; and a manufacturer of consumer
goods. He used a stop-watch to observe, in the course of one intensive week, the
activities of all five chief executives. He claims that if you ask a manager what he
does he describes it in Fayols terms, i.e. planning, organising, commanding, co-
ordinating and controlling. However, if you watch him in practice it is quite
different; for example, how would you categorise presenting a retiring employee
with a gold watch?
From his observations, Mintzberg identified ten roles that managers fulfil. He
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argued that everything a manager does fits into one or more of these ten roles
(some activities cover several roles at the same time).
He divided the ten roles into three main categories: interpersonal roles;
informational roles and decisional roles:
Interpersonal roles (related to dealing with people):
Figurehead performs symbolic duties of a legal or social nature, e.g. being
present at a trade delegation.
Leader covers all activities connected with managing staff, e.g. conducting
appraisals; allocating work to staff.
Liaison maintains a self-developed network of contacts who provide
information, advice, help, etc., e.g. co-ordinating with people in other
departments.
Informational roles (connected with handling information):
Monitor receiving information from internal and external sources, e.g.
checking weekly production figures.
Disseminator interpreting and transmitting information to members of the
organisation, e.g. writing monthly production report for management meetings.
Spokesperson transmitting information on the organisation to outsiders, e.g.
speaking to customers.
Decisional roles (about making different kinds of decisions):
Entrepreneur finding opportunities, inside and outside the organisation, tobring about improved organisational performance, e.g. designing a productivity
improvement scheme.
Disturbance handler taking corrective action to handle an issue which has
arisen unexpectedly, e.g. resolving an argument with another department.
Resource allocator allocating organisational resources, e.g. deciding on
staffing levels.
Negotiator conducting negotiation with outsiders, e.g. making an agreement
with a supplier.
In summary, Mintzberg argues that managers do a mixture of all ten roles.
Different jobs will have different mixes of roles and jobs may vary betweenorganisations. An operations manager in a manufacturing plant whose job
involves meeting tight production targets may spend much time doing the leader,
monitor, disseminator and disturbance handler roles. A marketing manager in a
services company, on the other hand, may spend most time on liaison, the three
informational roles and resource allocator.
Mintzbergs work confirmed that managers in modern organisations work at an
unrelenting pace.
They spend much of the day on many small tasks (50% of the managers in
Mintzbergs study engaged in tasks lasting less than nine minutes and only 10%
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exceeded one hour). The work is also categorised by variety and discontinuity.
Chief executives tend to be very action orientated and to dislike reflective
activities. There are also a number of regular duties to perform, such as attending
ceremonies and dinners. Managers tend to favour telephone calls and meetings
(oral communication) to emails and reports (written information). In two British
studies for example, 66% and 80% of managerial time (respectively) was spent in
oral communication.
Activity
Try to apply Mintzbergs managerial roles to the work of the same manager that
you used in the previous activity on Fayol. How well does what they do fit in with
Mintzbergs ideas? Does one model give a clearer picture of what managers do
than the other? If so, why?
Peter Drucker
Management by Objectives (MBO) was proposed by Peter Drucker in 1954 and is
still used by businesses today. He suggested that businesses should decide upon
organisational objectives, which are then broken down into departmental, and then
down to individual employee objectives. With employees involved in this process,
motivation is said to improve. Managers should then decide what work needs to bedone, and by whom, communicate this to employees, analyse actual vs planned
performance and finally bring out the talent in people. Managers are responsible
for:
setting objectives
organising the work
motivating employees
job measurement
people development.
Drucker argues that every manager, whether good or bad at the job, must carryout all of the above functions.
Rosemary Stewart
Rosemary Stewart (1983) describes the managers job as being made up of
constraints,choices and demands, and she argues that jobs are about doing
what you have to do (meeting demands), and deciding what to do out of the
options available to a manager (making choices). There are also internal and
external factors that can limit what a manager can do (constraints).
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The shape of the job
This illustrates how demands, choices and constraints can vary between jobs.
Differences in the demands, choices and constraints in two managerial jobs
Demands include: minimum criteria of performance procedures that cannot
be ignored
Choices include: how the work is done and what work is done
Constraints include: resource limitations, physical location attitudes and
expectations of others
Stewart, R, (1983) Choices for the Manager, McGraw-Hill
Activity
Apply Stewarts model to the same managerial job you used in the earlier activities
on Fayol and Mintzberg. Which of the three gives you the most helpful picture of
what managers do or are all three just different?
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Conclusion
This section gives an overview of what managers do and the important role theyhave to play within organisations. Fayol suggests that there are five functions of
management planning, organising, controlling,co-ordinating and commanding,
while Mintzberg states that all managers are involved in the roles of leading,
administering and fixing. Drucker and Stewart are also useful in studying what
managers do and what roles they perform.
Finally, the role of a manager is very much dependent upon a wide range of factors
such as the organisation in which they work, that is its culture and objectives. The
models we have just looked at can help to analyse what managers actually do.
They suggest that management will always be about planning, handling
information, making choices, etc. However, the context within which managers
work does change. We can conclude this section by listing some of the factors
which have affected the way in which managers do their jobs in recent years:
Management jobs are becoming more important in service sectors such as
health and education
Constant change in the workplace has resulted in a greater emphasis on the
leadership aspect of management
New working patterns such as home working (often prompted by developments
in ICT) pose new challenges for managers
Many organisations have embraced team working which may influence the
style adopted by managers.
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MANAGEMENT THEORY
Section 2: Management theory
Management theory attempts to discover and develop models that may be used in
order to understand the process of management in organisations. Contributions to
its development have come from a range of disciplines such as sociology
(behaviour), social psychology (motivation, leadership), behavioural psychology
(motivation) and even statistics (management of production). These theories are
useful in explaining management style, and they include the Classical Theory ofpeople such as Henri Fayol (18411925). Other theories or models followed later,
such as Human Relations, Neo-Human Relations, Systems Theory and more
recently Contingency Theory.
The Classical School
This is called the classical approach because it was that taken by the first people to
write on management in the early years of the 20th century. They emphasised the
formal hierarchical organisation with clearly defined tasks and a common purpose.
Their view was that it was possible to find the one best way of doing things. For
example, bureaucracy was seen as the best form of organisation. We have already
seen how Fayol regarded his five elements of management as the best way to set
about the tasks of managing. Although this work has been in existence for some
time, it still influences the way that organisations think about management.
A key concern of writers from the classical school was increasing productivity.
The most important work in this area was by Frederick Taylor (18561915), the
founder of the movement known as Scientific Management. He suggested that
there was a best way to perform work tasks and that all workers wanted was a
fair days work for a fair days pay.
The principal objective of management should be to secure the maximum
prosperity for the employer, coupled with the maximum prosperity for the
employee.
F W Taylor
For the employer this means large profits in the short term but also development of
the enterprise in the long term. For the employees it means higher wages
immediately but also long-term development so they can perform efficiently.
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Taylor wanted to achieve:
1. efficiency (increased output per worker) to reduce under-working and offerthe best rate of pay through division of labour
2. standardisation of job performance, by dividing tasks up into small,
specified tasks
3. discipline, by establishing hierarchical authority and introducing a system
whereby all management policy decisions could be implemented.
He proposed:
1. job planning to be carried out by managers, while jobs should be carried out
by workers
2. the scientific analysis of tasks and functions to find the one best way ofperforming each task
3. the use ofpiecemeal incentive pay systems, so that the more a worker
produced the more s/he was paid.
His view monetary reward for achieving targets is now thought to be much
too nave, assuming money was the only reason why people worked. The system
may work forsomeindividuals but it cannot easily be applied to a group.Taylors view reduces workers to efficient functioning machines, and ignores
their social and psychological needs. Taylor removed the thinking, planning and
ordering from the shop-floor workers as he saw this as a function of management.
However, his findings regarding analysis of the best way to do each job are stillused today.
SAQ 2
How are the ideas of F W Taylor still used today?
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The Human Relations School
The classical school, particularly Scientific Management, was criticised fortreating people like machines and ignoring the influence that social factors can
have at work. This led to a new way of looking at management, known as the
Human Relations school. Elton Mayo (18801949), an Australian industrial
psychologist, is the founder of the Human Relations movement. Mayo and his
team, in conjunction with the management and employees, conducted research at
the Western Electric Company in Hawthorne, Chicago from 1927 to 1932. They
were asked to investigate the reason for low productivity at the factory.
One place in which Mayo and his colleagues conducted experiments was the relay
test assembly room. The work consisted of assembling telephone relay units,
which involved putting together a small number of components on a jig and
fastening them with four screws. It was essentially a routine, repetitive task thattook about a minute to complete. All the workers were women and were paid on a
piece basis (their pay was determined by the amount that each individual
produced).
Five assemblers and a layout operator, all women, were segregated away from the
main production area. All the materials needed for work were brought to them. An
observer supervised the workers and maintained a friendly atmosphere, consulted
with the workers and listened to their complaints. The observer was, in fact, a
social scientist and member of the research team.
During the experiments the following changes in working conditions wereintroduced.
1. All six workers were treated as a single group for the purposes of calculating
piecework.
2. Standardised rest periods of 15 minutes in the morning and 10 minutes in the
afternoon were introduced and a snack was provided by the company.
3. Working hours were reduced either by stopping earlier in the afternoon or
by not coming in on a Saturday morning.
The researchers compared the output of the workers before and after becoming
part of the group. Output was higher when they were part of the group and didnot seem to be influenced by the physical conditions at work.
Mayo and his team found the same thing when they altered other aspects of
working conditions such as the lighting. Productivity rose but this was not
apparently due to changes in physical working conditions. The factors that did
affect productivity were:
the social interaction and group norms established by the girls in the group
the friendly atmosphere where the views of the girls were listened to
the group felt important because the observer and others were paying attention.
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SAQ 3
Can you think of any problems with this research?
Mayo and his colleagues concluded that work satisfaction depended to a large
extent on the informal social pattern of the work group. Where norms of co-
operation and high output were established because of a feeling of importance,
physical conditions or financial incentives to motivate workers had little impact.
People will formworkgroups and this can be used by management to benefit the
organisation.
Workers, Mayo argued, were activated by a logic of sentiment, and managementby a logic of cost and efficiency. Conflict was inevitable unless the difference
was understood and allowed for.
This enabled the researchers to make certain deductions about how managers
should behave.
Management succeeds or fails in proportion as it is accepted by the group as
authority and leader.
Elton Mayo
In summary, the main conclusions from the Hawthorne experiments are:
1. Individual workers cannot be treated in isolation, but must be seen as
members of a group.
2. Monetary incentives and good working conditions are less important to the
individual than the need to belong to a group.
3. Informal or unofficial groups formed at work have a strong influence on the
behaviour of those workers in the group.
4. Managers must be aware of these social needs and cater for them to ensure
that employees collaborate with the official organisation rather than work
against it.
The basis of the Human Relations movement is the use of social sciences to
secure the commitment of individuals to the aims and activities of the
organisation. While this is seen as too simplistic today, it did establish the
importance of social factors in the organisational context.
SAQ 4
How does the Human Relations school differ from scientific management?
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The Neo-Human Relations School
While the Hawthorne experiments were significant in highlighting the importanceof the social aspects within an organisation, Mayos work still did not show how
work practices and organisational structure should be modified in order to improve
worker satisfaction and improve productivity. During the late 1940s it was realised
that the links between organisational design, motivation and productivity were a
lot more complex than first thought. These new ideas were known as the Neo-
Human Relations school. Writers in this school took a more psychological
orientation and looked at issues of motivation to work, group membership and
leadership style.
McGregor
Douglas McGregor was a leading member of this school. In 1960 he published his
work on Theory X and Theory Y.
Theory X that management must lead and motivate/manipulate inherently lazy
and passive workers (a view similar to F W Taylors). The assumption here is
that workers are indifferent to the organisation and will resist change, and that
managers need to lead and control them.
Theory Y that management must create the right conditions, and that people will
prove eager to respond to increased responsibilities, becoming more productive as
a consequence. The assumption here is that people are notnaturally passive andresistant to change, but that they are responsible. Management should provide the
right environment for employees to achieve their own objectives whilst striving fororganisational objectives. There should be more self-management and upward
communications along with participation in the decision-making process.
McGregor believed that Theory Y would lead to higher motivation. He considered
conventional assumptions (Theory X) to be both limited and unrealistic because
they relied on authority as the primary means of control, which he saw as likely to
generate resistance, restriction of output, indifference to organisational objectives
and a refusal to accept personal responsibility. McGregor recognised that much of
the behaviour in organisations did reflect the Theory X view.
However, he believed that this type of behaviour was not a consequence of the
inherent nature of staff but a product of the way in which staff were being treated
by organisations.
McGregor has highlighted that if managers believe that all their staff want is
more money and/or greater social satisfaction, they will therefore only provide
for these basic needs to be met. If managers do not accept that staff have more
complex needs, they will not be providing opportunities at work for the staff to
satisfy them. The result may well be frustration and a lack of commitment on the
part of the staff.
McGregors work is closely related to that of Maslow and Herzberg which will
be covered later.
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McGregors theory has been applied successfully through the modern Japanese
approach, Total Quality Management (TQM), which is based upon his Theory Yand is widely implemented throughout the world. The Neo-Human Relations
approach as a whole drew attention to issues such as job satisfaction,
participation, leadership style, all of which remain important in management
today.
Systems Theory
We have seen that the classical approach to management looked at the structure
and processes of an organisation and how it could operate more efficiently but
rather ignored the attitudes of those working in the organisation. On the otherhand, the Human Relations school focused on the people in organisations but
neglected the technical aspects of an organisation. The Neo-Human Relations
school addressed some of the problems of reconciling people and organisations
but tended to do so from an individual, psychological perspective rather than an
overall organisational view. All these approaches are rather narrow and do not
look at the organisation as a whole and all the various factors that may influence
how it operates. Systems Theory is an attempt to address this problem. It also
began in the 1940s but came to prominence in the 1960s and 1970s.
Systems Theory argues that in any organisation, the multitude of parts and
processes are so interrelated and so interdependent that a small change in one part
necessitates changes and adaptations in other parts. Often called the open-systemsapproach, it views any one organisation as an interdependent piece of a much
larger whole, looking outside to the environment in which the organisation
operates. This wider environment can include suppliers, customers and peer
organisations, all of which communicate on a regular basis with the organisation.
The environment as such then impacts upon organisational design and the
functioning of the organisation itself.
Organisational environment
INPUTS TRANSFORMATION PROCESS
OUTPUTS
Materials from supplier
Finished products
Equipment Satisfied
customers
Labour
Goods/services developed by organisation
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Activity
Using an organisation that you know, try to draw a transformation model like theone on the previous page. Try to be as precise as you can when you list the inputs
and outputs. If you cannot think of an organisation, use one like McDonalds. You
can find information about it from its website at http://www.mcdonalds.co.uk
The approach seeks to find the best fit from three elements:
1. technical factors (physical environment, equipment and technical processes)
2. social factors (social relations and attitudes within the group)
3. economic factors (measure of the efficiency of the technical and social mix).
As an open system it draws in resources from the environment, e.g. raw materials,
converting them into goods and services which are then fed back into the
environment, so it is a cyclical process. For example, Ford makes cars which it
sells to its customers for money. The money is recycled in the form of wages, tax
and the purchase of more raw materials.
This socio-technical approach to an organisation recognises that it is necessary to
incorporate both the social and technical aspects of work if an effective system is
to be created. This concept was developed by the Tavistock Institute of Human
Relations in the study of coal mining in the north-east of England. Prior to the
introduction of new technology to coal mining, teams of men worked closely
together, with each member of the team being highly dependent upon the others towork effectively and earn a decent wage. With new technology such as mechanical
equipment, the teams were broken up, resulting in deterioration in many areas, e.g.
industrial disputes, numbers of accidents, absence levels, etc. The problem was
solved by building teams back into the work to encourage interdependence among
workers.
Contingency Theory
This approach to management theory is a product of more recent times and can be
seen as a development of the systems approach. It is based on the assumption thatthere is no single approach to organisational structure that will suit all
organisations at any point in time. Both the classical management theories and
those based on human relations sought to offer this panacea. Contingency means
it depends. Organisations consist not only oftasks to be performed, but also
people to perform them, both in the same environment. The tasks need to be
carried out while people try to grow and develop. Contingency Theory tries to get
the best fit between task, people and environment. It draws on earlier approaches
(above) and stresses three factors:
the strengths and weaknesses of the organisation
the objectives of the organisation
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the external environment of the organisation.
The problem for managers is to develop an approach which best suits a particularsituation. For example, with respect to structure it would be to design an
organisational structure that best suits the environment in which the organisation
operates. In this case, contingency implies that within the same organisation there
may be units of bureaucracy, units operating in a matrix structure and units which
are divisionalised. The only criteria for good design are task performance and
individual/group satisfaction. The Contingency Theory of management can be
applied to all aspects of management, e.g. leadership.
Conclusion
In summary, there is no single unifying theory of management. The discussion ofthe five approaches above demonstrates that ideas on management change and
develop over time. These approaches (and others not considered here) both reflect
management practice and influence the way managers behave. This is why they are
important. However, management is also influenced by other factors such as the
social and economic environment and by technological change. We go on to look
at particular aspects of the work of managers starting with motivation. As you read
through these think about which of the approaches to management have influenced
the ideas that are considered.
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SAQ 5
Decide whether the following statements are True orFalse.
1. F W Taylor believed that workers were motivated by management meeting
their social and psychological needs.
2. Taylor was the founder of the movement known as Scientific Management
and his theory is still used today to determine the best way to do a job.
3. Elton Mayos initial investigation was to determine the effect of working
conditions on productivity.
4. Mayo concluded that the sole benefit of the forming of workgroups wouldbe to improve the social life of workers.
5. McGregors Theory Y assumes that workers have little inclination to work
and need to be controlled and led by management.
6. The Systems Theory of management suggests that an organisation cannot be
viewed in isolation, but that changes in the internal and external
environment will impact on the functioning of the organisation itself.
7. Technical, social and economic factors are all considered by Systems
Theorists.
8. The Tavistock Institute of Human Relations found that new technology
improved efficiency and output.
9. The Contingency Theory of management recognises the importance of tasks,
people and the environment in managing organisations effectively.
10. Management practice is about choosing a theory and adhering to it
throughout your managerial life.
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MOTIVATION TO WORK
Section 3: Motivation to work
Motivation is characterised by a certain level of willingness on the part of the individual
to increase effort. Since everyone is different we will all have different motivators.
Managers hope that by addressing motivation, performance will improve and
organisational goals will be achieved. Since a manager him/herself is judged by the
performance of their team, motivation is a crucial part of a managers job. There are
many theories of motivation but we shall look at two well known theories from Maslow
and Herzberg, both of whom were leading members of the Neo-Human Relations school.
Maslow
Abraham Maslow (1954) argued that people have five innate needs that can be placed in
a hierarchy/pyramid (starting at the bottom of the pyramid):
1. Physiological needs for sunlight, food, water, etc. things basic for human
survival
2. Safety needs for freedom from threat from the environment, animals and other
people, for shelter, security things essential to human existence
3. Social/love needs for relationships, affection, giving and receiving social
stimulus/love
4. Esteem needs for achievement, prestige, recognition
5. Self-actualisation needs for development of capability to the fullest potential.
People seek to satisfy these needs. As a result the needs become motivation for action.
When need at one level is partially met then the next level up will become a target. The
basic premise is that one moves to the next level of the hierarchy of needs upon
fulfilment of the current level, and that the current level ceases to become a motivator
once fulfilled. So, for example, you wouldnt worry unduly about self-esteem if you
hadnt eaten for a day and didnt know where the next meal was coming from.
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MOTIVATION TO WORK
This model can be applied to motivation at work, e.g. the wish to do a good job or be
promoted could be related to an esteem need. In a work environment, managers cannot
provide the same rewards and expect increasingmotivation from staff. The higher orderneeds are considered to be more important for the modern employee.
SAQ6
Use the diagram above to fit the aspects of work given below into the appropriate level
of need:
Employee of the Year Award, wage/salary increase, works sports team, pension,
achieving career goal.
Herzberg
Maslows theory was based on meeting psychological needs. Frederick Herzbergs
approach to motivation looked at job satisfaction. His two factor theory (1966)
suggests that there are two types of factors which affect job satisfaction:
Motivators which result in job satisfaction, and include achievement, recognition,
responsibility, advancement, etc.
Hygiene factors which prevent dissatisfaction, and include company policy and
administration, supervision, interpersonal relationships, status, security and money.
The key point of Herzbergs theory is that these two factors have different effects on
job satisfaction and, therefore, on motivation. Satisfying hygiene factors will not lead
to a permanent increase in job satisfaction. Improving working conditions, for
example, will remove a source of dissatisfaction but will not positively motivate
workers. On the other hand, satisfying motivating factors will lead to an increase in
job satisfaction and to an improvement in motivation. Recognising the achievement of
workers, for instance, will increase job satisfaction and thus motivate workers.
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Management must, therefore, make sure that hygiene needs are satisfied, e.g. through
good working conditions, but also provide motivators in the form of opportunities for
advancement, responsibility, etc.
Methods to increase motivation to work
The theories of Maslow and Herzberg (and others) have had a great influence on how
managers attempt to improve motivation at work. Herzbergs theory has led to
approaches such as job enlargement and job enrichment, while Maslows ideas have
influenced many things from health and safety at work to the need to provide fulfilling
career opportunities for employees. Other theories have also been important. Scientific
management, for example, stressed the importance of monetary factors in motivation.
Contingency Theory suggests that the factors that are important in motivating workers
will depend on each particular situation. In this case, management should find out what
these factors are and use motivational methods which suit them.
Non-financial incentives
The Hawthorne studies showed that workers were motivated by non-monetary factors
and that jobs needed to be designed to take these factors into account. If jobs do not meet
peoples needs, then not only will workers not reach their potential, but the organisation
is likely to be affected by absenteeism and a lack of quality in work done.
Various methods were devised to try and put these principles into practice, including:
Job design
Job enlargement
Job rotation
Empowerment
Job enrichment
Group working
Quality circles.
The influence of management theorists, especially Maslow and Herzberg, is strongly
evident in many of these non-financial incentives which can be used by managers as
motivators.
Job design
The purpose of job design is to motivate the worker by stimulating his/her interest
and involvement. Job design decides:
which tasks and responsibilities should be taken on by particular workers
the methods, systems and procedures for carrying out the work
where accountability and authority lie.
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The Quality of Working Life (QWL) movement put forward five principles that
should be considered in the design of a job:
1. The principle of closure (a job should allow a worker to achieve the satisfaction
that s/he has completed a whole product or process well).
2. Control and monitoring of tasks (quality should be the responsibility of the worker
or team).
3. Task variety (increase the number or range of tasks available in order that workers
remain interested in their work).
4. Self-regulation (workers should have control over work methods as well as
sequence and speed of work).
5. Interaction and co-operation (social interaction should be allowed along with the
opportunity of working in a group).
Whilst job design can have many benefits, it is often difficult to implement in practice:
Employees may resent changes to their job and might not want extra duties.
Job design can be costly for an organisation to implement.
Technology can make job redesign more difficult.
Assessing whether job redesign has positively impacted productivity, etc. can be
difficult.
SAQ 7
How can Herzbergs theory be used to justify job design?
Job enlargement
This involves the merging of a number of simplified tasks of a similar nature in order to
provide an extended range of work. In effect it aims to increase the scope of the job. It
adds a wider range of similar duties to the job, seeking to motivate the worker by
reversing the process of specialisation. In this way unit tasks are regrouped rather than
seeking to improve the work itself. As a result of the broader range of tasks involved,
the perceived meaningfulness of the work is increased for the worker and s/he is more
likely to see the significance of the job in the broader organisation. For the employer,
however, it could reduce efficiency if the workers productivity is decreased as a result
of carrying out more tasks.
Job rotation
This involves rotating the jobs that workers do on a daily, weekly or monthly cycle. It
permits greater variety for individuals by moving them between jobs. This could mean
that unpleasant or monotonous jobs are shared and that certain workers are not
permanently allocated to them. Job rotation distributes existing work so workers are
moved around from job to job. For some workers this variety improves motivation, while
others might feel their job security threatened if workers become interchangeable. For
the organisation, job rotation has a number of implications:
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It provides increased flexibility in allowing workers to be moved around at short
notice.
Because workers must be trained in a number of tasks, it can be costly and in some
situations workers might claim higher pay because their skills have been enhanced.
If workers are carrying out multiple tasks they will be less skilful and probably
slower than if they were carrying out a single task.
Empowerment
The basis of empowerment is involving workers in decision making whether about the
direction of the organisation or about operational issues. It can mean giving workers
substantial responsibility, e.g. total discretion to offer refunds to customers. It provides
employees with a clearer view of the whole picture and their part in it. People are
recognised as an asset to the company and encouraged to fulfil their potential whilst at
work. The most common way of empowering employees is to encourage them to work
in teams and to relate the teams vision to the organisations.
Job enrichment
This involves the allocation of more interesting, challenging and perhaps more difficult
duties to workers in order to stimulate their sense of participation in achieving
objectives. It came out of work by Herzberg, who showed that such motivators could
bring about job satisfaction. An example might be in a manufacturing plant where a
production worker who carries out routine jobs is also asked to do machine maintenance,
machine setting or inspection. It might also be possible for such workers to be involved
in communicating with other departments or obtaining their own raw materials. Changes
like these can enhance workers skills and enable them to deal with complete tasks rather
than highly fragmented ones. So, instead of similar degraded tasks being grouped
together, genuine job enrichment provides new tasks for the worker that wouldpreviously have been carried out by supervisors or specialist workers. Workers respond
differently to job enrichment, but it has been found to be very successful in
administration and technical jobs.
Group working
There are great social and psychological gains to be obtained from co-operatively
working in teams (see Human Relations and Neo-Human Relations Schools of
Management on pages 769). Group tasks tend to be based on complete operations and
involve greater complexity and variety than fragmented ones. Groups can be self-
regulating, which reduces the need for supervision and increases individual members
feelings of control. It can be beneficial for the group to arrange job rotation and the fair
allocation of tasks among themselves.
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Quality circles
Quality circles can play an important part in shaping peoples experience of work. Here,
workers from the same area meet voluntarily to discuss, analyse and solve their own
work-related problems. Their solutions are presented to management and the group are
normally responsible for implementing and monitoring any changes they have
suggested. For quality circles to be successful:
businesses must want to have worker participation and decision making
workers need to support the scheme
the members need to be trained in problem solving, communication and team working
workers must feel that their views are valued within the circle.
The use of many of these non-financial motivators is demonstrated by Toyota, the car
manufacturer, in the following article.
Toyota: still winning the productivity game
The genesis or source of the Toyota production philosophy is Japanese culture and the
historic management/labour/supplier relationships that have evolved from it. This
philosophy has developed over a long period of time and is based on a number of
important beliefs:
Management, labour and suppliers should all share responsibility for sustained
improvement in Toyotas production plants. With positive results, all stakeholders
benefit.
A workforce with good morale and job satisfaction is more likely to produce quality
products at competitive prices. Toyota has effectively institutionalised many
successful workforce practices including the following:
cross-skilled training for flexible production
on-the-job training and job rotation for all assembly line workers
participation of all employees in programmes specifically designed to focus on the
dynamics of work team development
the establishment of the basic principle that all workers should think of
themselves in certain respects as managers, especially with respect to their
immediate work environment, rather than viewing themselves primarily as
mechanical machine operators.
The maximum number of tasks and responsibilities should be transferred to thoseemployees who actually add value to the car on the line.
A system needs to be developed that traces defects to their ultimate cause and
resolves these problems at source. Toyota believes that employee morale starts with a
safe workplace. Their managers back up their slogans and meetings with a Safety
First War Room designed to respond proactively to all safety issues.
They show each employee how each job on the assembly line relates to the other jobs in
the team module, and how the module is related to the assembly line as a whole.
They believe that the only way to make improvement a continuous process is to establish
a creative thinking group of employees/suppliers who are constantly seeking new ideas
from which to make improvements, so every employee/supplier is expected to work with
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theirhead as well as theirhands.
They assign responsibility for operational results to a work team with a strong team
leader. The team engages in collective work that requires joint efforts and generatespositive energy.
The result is a highly motivated workforce achieving high levels of productivity.
Adapted from Vaghefi, R; Woods, L and Huellmantel, A (2000), Toyota Story 2: Still
Winning the Productivity Game,Business Strategy Review, Vol. 11, Issue 1, pp.5970
Financial incentives
Many management theorists play down the impact that financial incentives on their own
have on employees, although the school of scientific management, including thinkers
such as Taylor, are keen proponents of motivating factors that satisfy economic needs.
Since managers are responsible for the performance of their teams, a core part of their
function is to motivate employees to perform. There are many ways of financially
rewarding employees in order to motivate them to achieve objectives. Financial
incentives used by managers may include the following:
Profit sharing/share ownership
Employees can be paid a cash bonus as a proportion of the companys annual profits.
This is not widely used in practice as payments are seldom linked to individual
performance.
The use of employee share ownership schemes, however, is quite widespread. Here,
the company buys shares on behalf of its employees from its annual profit. While this
can be expensive to set up and operate, it has been shown to have a positive impact
upon employee motivation.
This kind of incentive is obviously more appropriate in the private rather than in the
public sector.
SAQ 8
How can share ownership schemes improve motivation?
Performance-related pay (PRP)
PRP schemes link employees annual salary to their performance in the job. This is
widely used in white-collar jobs in both the public and private sector. It is based on an
individuals performance, so employees are paid more if they achieve more. However,
each employees performance targets must be clear in order that they can measured,
otherwise the whole scheme falls into disrepute.
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The size of the financial benefit can play an important part in how much PRP acts as a
real employee motivator. (Herzbergs motivating vs hygiene factors highlight this.)
Unless the financial reward is of some significance, motivation and job satisfaction
will not improve.
The move towards PRP is part of a general shift in the last decade to pay flexibility in
the UK, which often includes other financial incentives, such as the profit-sharing
schemes described above.
Bonus schemes
Bonus schemes are applicable to individual workers, groups of workers or the
organisation as a whole. Bonuses are normally one-off payments to motivate workers. In
a sales environment, for example, a salesperson could be encouraged by a bonus to sell a
specified number of cars by the end of the financial year, or a sales department could be
rewarded for achieving the lowest cost of sales for a particular product. A group bonus
scheme can be used to encourage people to work as a team.
Bonus schemes can be a very good incentive unless they become so regular that they
are expected by the employees and come to be seen as part of their basic pay. However,
there is an underlying problem with group or organisational schemes as some
employees who work hard will have their reward reduced because of others who do not
and this can be a disincentive. Bonus schemes in the public sector are often for nominal
amounts of money which obviously are not key motivators, but sizeable bonuses in the
private sector are not uncommon.
Problems with financial incentive schemes
While financial incentive schemes can be very successfully implemented, there can
be a number of problems with them:
Operating problems can affect a workers productivity. It might be outside the
workers control that raw materials were not available for them to do their job, yet
they would be negatively affected by this.
Quality can be adversely affected by workers taking shortcuts in order to achieve
targets.
In order that workers remain motivated, new financial incentives have to be
introduced regularly. This can be confusing to the worker who doesnt understand at
any given time what he needs to do to earn his bonus.
Quality of working life can be adversely affected by tight control, routines and
repetition.
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SAQ 9
Fill in the missing words:
1. Herzberg, like Maslow, belonged to the ______________________ school of
management.
2. Herzberg divided work into two factors which he called
______________________ and ______________________ factors.
3. Those factors which are to do with job content and which bring job satisfaction
are the ______________________.
4. Those factors which are to do with job context and are responsible for job
dissatisfaction are the ______________________ factors.
5. Where a job cannot be enlarged, another method of providing change from routine
(and sometimes also the opportunity to learn new skills) is job
______________________.
Conclusion
The value of financial and non-financial incentive schemes is rightly an important
debate, where it is accepted that no single policy will be applicable to allemployees inevery situation. The following article discusses some current issues in this area, raising anumber of challenges for managers in todays organisations.
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Financial incentives
Research into individual performance-related pay (IPRP) in the UK over the past decade
has failed to show that such systems have an effect on performance.
The whole idea of linking pay to performance is based on two questionable assumptions.
First, it perpetuates the illusion that companies are rational, top-down, directed
organisations and that managers have the foresight to know what to do in the
forthcoming year. This is the myth of the all-seeing boss. In reality, change is quicker
and messier than that. Second, and even more worrying, is the belief that people need
incentives to get them to behave in an acceptable way. Employees cannot be trusted, it
seems. Economists have a lot to answer for with their assumptions that people will be
lazy and self-seeking with guile unless there is a reward carrot (or the stick ofunemployment) available. This is the foundation for most economic theories of reward.
They never change, despite all the evidence that employees place much more value on
non-financial satisfaction and the rewards of a job well done.
In recent years, emphasis has been placed on the bundle of HR policies that help to
drive organisational performance. These typically include job enlargement, greater
employee discretion, involvement, relative autonomy and training and development.
Combined, these things are linked to improved performance.
The real problem is that managers continue to introduce pay systems as a single-issue
initiative, expecting the new pay system to alter behaviour and bring about cultural
change. It doesnt, unless supportive behaviour is already in place. By themselves, pay
systems do not change organisational culture.
Towers Perrins latest study (1999) of reward management in 460 organisations across
Europe found that 94% had made significant changes in the past three years, and 96%
planned further interventions. They are using rewards to reinforce the achievement of
business goals and aligning pay systems with the needs of their changing organisations.
This means a less hierarchical and more customer-orientated approach, team-based and
focused on contributions. New ideas are being tried be it sharing all your takings in a
day with employees, as Ikea did recently, or introducing broad-based share options for
employees, as Asda has done. Companies are looking for competitive advantage through
their people. As well as considering business strategy, organisational capabilities and
long-term goals when we plan and execute our strategic reward interventions, we need to
place at least as much weight on employees needs and values and the realities of
organisational life in the short term. All levels of staff and management should beinvolved in this process. Thats the route to trust, motivation and commitment to reward.
Once changes are made, focus on their operating effectiveness and continue to monitor
and improve them against their original goals. Think about how the buy-in and genuine
sense of involvement of all employees can be enhanced.
Adapted from Purcell, J (3 Feb 2000), Pay per view,People Management
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J D Wetherspoon
The company believes in creating a highly committed and motivated workforce made upof people who achieve personal fulfilment through the freedom to act given to them in
their daily work. The company sees its workforce as a prime organisational asset that is
motivated through a positive organisation culture, pay and benefits, as well as training
and development.
J D Wetherspoon recognises that many of its employees will not stay with it for all their
working lives, but it wants its employees to develop a sense of loyalty. It pays a rate
above that of its competitors, in the belief that employees are more likely to be motivated
when they know they are being paid more than the minimum required. The company also
bases its pay on reviews of performance, so that the higher pay reflects its positive view
of the worth of its employees.
The company does well at keeping its employees. It feels that its good rates of pay and
proper treatment of its workforce are major contributors to this success, which reduces
ongoing training costs and also creates a body of committed people.
The company has a bonus scheme. All staff receive a bonus, dependent on the
performance of the pub where they work. The company also runs a number of incentive
schemes, e.g. a monthly draw for examples of excellent customer care, with a paid
holiday for two in New York for the winner.
The company also operates a share option scheme enabling employees to buy shares at a
guaranteed price. By holding shares in the company, employees are likely to feel a
greater sense of belonging and will want to see the company do well.Wetherspoons training and development programme is a combination of on the job and
off the job training courses. Wetherspoons training focuses on career progression and
links training to national qualifications.
Extract from the J D Wetherspoon case study on http://www.thetimes100.co.uk
Activity
Visit the Times 100 website and look at J D Wetherspoon in more detail.
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Motivation Wordsearch
T J O E Y G N I R A H S T I F O R P D M S T
W P X K I S O C I A L N E E D S S L M J E CO Y Z R C R E H P O T S I R H C D S O S I E
F E R O O H E R E M P O W E R M E N T T M F
A L S W C L Q K I B M A B Y W X E O I A A F
C S E F O U R R O L Y A T A Y L N I V R J E
T I L O S A L P O P L I E E P K F T A R T E
O A F T P E V T W M L L A P R C O I T A N N
R P A I K R L O U I Y C T H N A Y D O G O R
T N C N N M L F B R H O U J L B H N R I I O
H O T U A S A I C I E M O E P D C O T R T H
E I U S A M S Y E H A B X I L E R C E L A TO S A M Y N K V O N E N E G I E A K A S C W
R I L O O I E B R N E C U R O F R R M M I A
Y V I P S M Z E R V E H K E S B E O W R N H
Y R S S E R L I E R E V Y I D Z I W O O U N
Y E A N E A C R A R U E T E N A H R R N M O
R P T H T H M T Z Y V A O C N G W G K P M S
A U I I M I E B A I S T T H E O X N I U O L
L S O E N A E M L B V N A M C I M O N O C E
A N N D U R E C O G N I T I O N R Z G R E N
S T T Q G K R J U M P E R S D E N E I G Y H
Hidden in the above grid are 32 motivation terms. They run vertically, horizontally or
diagonally, backwards or forwards. How many can you find?
You should be able to find the following:
ACHIEVEMENT HERZBERG MONEY SELF-CHECKING
COMMUNICATION HIERARCHY OF NEEDS MOTIVATOR SOCIAL NEEDS
CULTURE HUMAN RELATIONS PIECE RATE SUPERVISION
ECONOMIC MAN HYGIENE PROFIT SHARING TAYLOR
EMPOWERMENT JOB ENRICHMENT RECOGNITION TEAMWORKING
FEEDBACK JOB SATISFACTION RESPONSIBILITY TWO-FACTOR THEORY
GROUP NORMS MASLOW SALARY UNIT OF WORK
HAWTHORNE EFFECT MAYO SELF-ACTUALISATION WORK CONDITIONS
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Semco
Semco is a Brazilian manufacturing company run by Ricardo Semler. It has gained a
reputation for unusual management methods. Below are two extracts from a bookletgiven to every Semco employee.
Working hours
Semco has flexible working hours and the responsibility for setting and keeping track of
them rests with each employee. People work at different speeds and differ in their
performance depending on the time of day. Semco does its best to adapt to each persons
desires and needs.
Working environment
We want all our people to feel free to change and adapt their working area as they please.
The company has no rules about this and doesnt want to have any. Change the area
around you, according to your tastes and desires and those of the people who work with
you.
Adapted from Semler, R, Maverick, Arrow Books
SAQ 10
1 How do you think the above policies are intended to increase motivation?
2 Do you think financial incentives will work in a situation like this?
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(d) audience in a theatre
(e) people sheltering from the rain in a shop doorway
Individuals may behave differently when working on their own than they would if
they were working as part of a team. Group pressure can influence the team
member to act differently in order that team goals are achieved. The person is
influenced to conform to thegroup norm, i.e. a shared perception of how thingsshould be done, or a common attitude, feeling or belief. The Hawthorne
experiments considered earlier, along with many others, show how group
behaviour can influence workers motivation, so it is useful to study how groups
form and how they can be effective parts of an organisation.
SAQ 12
1. What do you think could be the organisational benefits of team working?
2. Explain the differences between formal and informal groups.
3. What is a group norm? What significance do group norms have for group
bonding?
Group development
Groups do not become effective teams immediately. There are many factors that
encourage group formation, including:
physical proximity, e.g. students sitting near each other in a classroom
rewards attached to mixing with others, e.g. being able to work faster and more
efficiently
emotional support, e.g. in times of crisis other group members might provide
support
clear objectives set for the group.
Tuckman (1965) describes a four-stage model of group development:
Forming: The forming or orientation stage is when team members learn abouteach other, about the nature and purpose of the group and the constraints within
which it must work. Group structures, status hierarchies and interaction between
team members are decided upon.
Storming: The confrontation or storming stage is when disputes and power
struggles arise. In this phase there is group conflict, criticism and open
questioning of the groups goals.
Norming: The differentiation or norming stage is when work is divided and
individual members responsibilities are tentatively implemented. Conflicts are
resolved and the group moves into a who does whatmode.
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Performing: The collaboration or performing stage is when group productivity
increases, when there is commitment within the group to success, and when
individuals are valued by their colleagues. Decision making is established within
the group and people get on with their work.
Characteristics of effective teams
A number of factors determine how effective teams can be effective in making
decisions:
team size
nature of the task
clarity of the task
team goals
team roles
communication between team members
group processes and procedures.
Team size
The size of a task can determine team size, e.g. if you had to brainstorm a number
of options to solve a problem, a team of thirty people would be ineffective.
Within a team there is a trade-off with regard to the team size. The more members
in the team, the more complex the communication process needed; however, the
broader range of experience can be brought to the table. On the other hand, the
larger the team, the smaller the contribution any individual can make. Other
issues when deciding team size include the need for rules and procedures, the
potential for a sub-group to dominate a larger team, and often the larger the group
the longer the decision-making cycle. Teams of more than a dozen tend to require
extensive supervision, and they encourage the emergence of sub-groups.
Nature of the task
The type of task to be carried out by the group should determine the type of group
that is formed. Large groups are unsuitable for problem solving, e.g. one of the
critical success factors of quality circles is a small group that encourages
discussion, creativity and problem solving. On the other hand, large groups arevery useful for the dissemination of information. While the individuals concerned
could work in different groups to carry out different tasks, it can be difficult to
work in a single group that is handling quite different tasks, for example,
allocating workandcreatively solving a problem. To overcome this issue, groupmeetings could be split by type of task to be undertaken rather than organising one
meeting to handle multiple and quite different tasks.
If the task has to be done urgently, a team may need to adopt a more structured
approach then if the task is less pressing. In these situations, getting the work
done is a key priority and the role of the team is to make sure that everyone
knows what has to be done and completes it as quickly as possible. A team which
operates in an environment where work has to be done quickly is likely to have
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clearly stated procedures and well-defined targets.
Clarity of the task
If tasks are clear and unambiguous, a group can operate in a more structuredway than if things are less clear. A precise task will help the group through the
forming and norming stages of group development.
However, not all tasks in a work environment can be defined precisely. There are
many occasions when the solution to an aspect of work is not known and it is left
to the group to develop a suitable solution, which at the outset is undefined.
Team goals
Team output is affected by two distinct elements the teams objectives and the
satisfaction level of the team members. Each team member must clearly
understand the teams work, and the role of each individual. Where team members
are unclear about what is required, teams are less likely to be effective.
Team roles
In the 1970s R Meredith Belbin and colleagues developed a theory that an
effective team requires a mix of complementary team roles. He argued that people
with different psychological characteristics adopt particular roles at work and that
combinations of different types of people were required to make a well-balanced
team. For a successful team, he argued, there were nine roles that required to be
filled, although they may not be needed in equal measure. The nine roles were:
Co-ordinator
This person is self-confident, mature, a good speaker and listener, good atfacilitating group decisions and an ideal chairperson. Perhaps not the cleverest or
most creative member of the team, but good at clarifying goals and promoting
decision making.
Supporter
This person is perceptive, able to identify problems and promotes harmony
within the group. S/he will tend to avoid confrontation and avoid making
decisions that may cause conflict.
Specialist
This person has specialist knowledge or skills that are needed by the team. Theytend to be single-minded and narrow in outlook.
Innovator
Unlikely to be a good communicator, this is an ideas person creative and animaginative problem solver. While intelligent, s/he is likely to be an introvert
and poor at communicating.
Shaper
The shaper is task-oriented, thrives on pressure and is likely to overcome
obstacles, albeit at the expense of other team members feelings. They enjoy
challenges and are dynamic and outgoing people. Other team members could
criticise this person for being manipulative and someone who avoids completing
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tasks.
Completer-finisher
This person is unlikely to delegate but is very conscientious and an unassertiveintrovert. They search out errors and omissions, scouring the small print in
order to be thorough.
Implementer
This person is capable of turning ideas into action and is very stable and practical.
They are disciplined but prone to being inflexible and need persuading of an ideas
validity before proceeding.
Monitor-evaluator
This person is a critic with the ability to analyse issues and is normally correct in
his/her assessments. They tend not to suggest new ideas but can identify the
options available and the strengths and weaknesses of them. They tend to lack
warmth and the ability to inspire others, but are stable and intelligent.
Resource investigator
This person works outwith the bounds of the group to gather new ideas and
information. They inspire everyone, spread the word and develop contacts. They
are normally very enthusiastic at the beginning but tend to lose interest as time
progresses. They are relaxed and positive but tend to be over-optimistic.
Belbin argued that a well-balanced team should include someone who fitted each
of the roles. The only exceptions are co-ordinator and shaper where either one or
the other was required. This does not mean that a team should have a minimum ofeight people as it is possible that some team members can play more than one role.
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This article shows how Belbins model can still be applied.
Teaming with talent
Even if you are happy to accept that the group effort is always better than
individuals working in isolation, how do you set about constructing a team when
your business is that of designing and selling computer software? Or if you are
reviving a failing school? Twenty years ago, Belbin began a decade of research at
the Henley Management Centre into team dynamics and discovered there is a
formula that works across business disciplines.
We would get a group of people together and ask them to self-select what they
considered to be the best team. They would invariably choose the best set of
individuals. We would then select the remnants according to the Belbin formula.
We would set them some tasks, and the Belbin-formula team would always win.Wipe the floor with the others.
The idea behind the Belbin method is to build jobs around people. Define a job
only by its core requirements, e.g. artists need to be able to draw, then using this
minimum specification, look at the person. For every business team to function it
will need the natural leader, the born organiser, the scatty creative. Or to use the
jargon, the co-ordinator, the shaper and the innovator. Even the sad anorak in
the corner of the office, the one incapable of seeing the wood for the trees, can
play a vital role in the Belbin team. They are the finishers, the ones who make
sure the task is seen through and completed, mainly by dint of worrying
themselves sick about it.
The winning team is out there, sitting opposite you or just round the corner. The
nag, the prat, the office bully each could play a part in turning your company
into a winning outfit. All you have to do is identify them.
Adapted from White, J (September 1999), Teaming with Talent, ManagementToday
The value of Belbins work lies in designing teams to achieve high performance.
In selecting people for team membership, senior management should ensure that a
proper mix of roles exists in the team. If existing teams are underperforming it isperhaps because one or other of the roles is not being fulfilled. To ensure the right
balance for the team it is necessary to collect information on the personality types
of the existing pool of employees from whom the team is drawn. Only by selecting
a balanced team will the team be effective. Teams are the basic building block of
successful organisations and Belbins work enables us to understand what makes a
successful team. Belbins approach is used in some form today, but it is criticised
for its subjectivity and the fact that it can be difficult to determine which team role
an individual actually plays in a team.
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Communication between team members
Good communication is essential for teams to work together successfully. Methods
of communication can be controlled both by the group members and their leader.
The main channels for communication between group members are shown below:
Circle system
Wheel system
All-channel system
Chain system
The circle system
Here messages pass between certain people who pass it on to others.
Matters requiring several comments and opinions are best handled through a
circle.
The wheel system
Here the person at the centre of the group can communicate with all members of
the group, but each individual member has to go through the central person in
order to communicate with others, e.g. a meeting that is managed by a chairperson.
Person 1
Since messages can be tra