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Management Functions & Behaviour
Tejashree Talpade
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What Managers Do
Managerial Activities
Make decisions
Allocate resources
Direct activities of others
to attain goals
ManagersIndividuals who achieve goals through other people.
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Where Managers Work
Organization
A consciously coordinated social unit,composed of two or more people, thatfunctions on a relatively continuous basis
to achieve a common goal or set ofgoals.
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Management Functions
ManagementFunctions
Planning Organizing
LeadingControlling
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Management Functions (contd)
PlanningA process that includes defining goals,establishing strategy, and developingplans to coordinate activities.
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Management Functions (contd)
Organizing
Determining what tasks are to be done,who is to do them, how the tasks are tobe grouped, who reports to whom, and
where decisions are to be made.
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Management Functions (contd)
Leading
A function that includes motivatingemployees, directing others, selectingthe most effective communication
channels, and resolving conflicts.
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Management Functions (contd)
ControllingMonitoring activities to ensure they are beingaccomplished as planned and correcting anysignificant deviations.
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Mintzbergs Managerial Roles
E X H I B I T 11Source:Adapted from The Nature of Managerial Workby H. Mintzberg. Copyright 1973by H. Mintzberg. Reprinted by permission of Pearson Education.
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Mintzbergs Managerial Roles (contd)
E X H I B I T 11 (contd)Source:Adapted from The Nature of Managerial Workby H. Mintzberg. Copyright 1973by H. Mintzberg. Reprinted by permission of Pearson Education.
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Mintzbergs Managerial Roles (contd)
E X H I B I T 11 (contd)Source:Adapted from The Nature of Managerial Workby H. Mintzberg. Copyright 1973by H. Mintzberg. Reprinted by permission of Pearson Education.
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Management Skills
Technical skillsThe ability to apply specialized
knowledge or expertise.
Human skillsThe ability to work with,understand, and motivate other
people, both individually and in
groups.
Conceptual SkillsThe mental ability to analyze and
diagnose complex situations.
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Skills required vs Levels of Management
Middle Management
Lower Management
Top Management
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Traditional management
Decision making, planning, and controlling
Communication
Exchanging routine information and processingpaperwork
Human resource management
Motivating, disciplining, managing conflict, staffing,
and training
Networking
Socializing, politicking, and interacting with others
Effective Versus Successful Managerial Activities
(Luthans)
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E X H I B I T 12
Allocation of Activities by Time
Source: Based on F. Luthans, R.M. Hodgetts, and S.A. Rosenkrantz,
Real Managers (Cambridge, MA: Ballinger, 1988).
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Managerial Decision Making
A decision is a choice from among the available alternatives
Decision making - the process by which managers respond to
opportunities and threats by analyzing options, and making
decisions about goals and courses of action
Decision making is a key to effective management
Each of the four primary management functions requires
effective decision making
Nearly everything a manager does requires decision making
Judgment - the thinking aspects of the decision-making
process
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Managerial Decision Making
Decisions in response to opportunities:
Managers respond to ways to improve
organizational performance
Decisions in response to threats:
Occurs when managers are impacted
by adverse events to the organization
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Types of Problems and Decisions
Problem Types Well-structured: routine, repetitive, normal problems with much
certainty regarding cause-and-effect relationships
Ill-structured: novel, unknown criteria, have not been
encountered before
Decision Types
Programmed: a decision that is repetitive and routine, with a
definite procedure developed for handling it - use management
science, computations, and rules
Non-programmed: no pre-programmed answer exists because the
problem is complex, extremely important, and/or never before
experienced - reliance is placed on principles and processes with
emphasis on judgment, intuition and creativity
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Decision Making is not Easy
It must be done amid ever-changing factors:
Unclear information.
Often conflicting points of view.
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Programmed decisions:
situations that occur often enough to enable decision rules to bedeveloped.
Nonprogrammed decisions:
are made in response to situations that are unique, are poorlydefined and largely unstructured.
many involve strategic planning.
Decision making the process of identifying problemsand opportunities, then resolving them.
Types of Decisions
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Certainty
all the information the decision maker needs isfully available.
Risk
decision has clear-cut goals.
good information is available.future outcomes associated with each alternative
are subject to chance.
Programmed and Nonprogrammed Decision Differences
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Uncertainty managers know which goals they with to achieve.
information about alternatives and future events isincomplete.
managers may have to come up with creative approaches to
alternatives.
Ambiguity by far the most difficult decision situation.
goals to be achieved or the problem to be solved is unclear.
alternatives are difficult to define. information about outcomes is unavailable.
Programmed and Nonprogrammed Decision Differences
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Organizational
Problem
Problem
Solution
Low HighPossibility of Failure
Certainty Risk Uncertainty Ambiguity
Programmed
Decisions
Nonprogrammed
Decisions
Conditions that Affect the Possibility of Decision
Failure
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Depends on the managers personal preference.
Whether the decision is programmed or non-programmed.
Extent to which the decision is characterized byrisk, uncertainty, or ambiguity.
Selecting a Decision Making Model
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Classical
Model
Administrative
Model
Political
Model
Three Decision Making Models
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Classical Model
Accomplishes goals that are known and agreed
upon.
Strives for certainty by gathering complete
information.
Criteria for evaluating alternatives are known.
Decision maker is rational and uses logic.
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Administrative Model
How managers actually make decisions in situationscharacterized by non-programmed decisions, uncertainty, and
ambiguity.
Focuses on organizational, rather than economic.
Two concepts are instrumental in shaping the administrative
model.
bounded rationality: means that people have limits or
boundaries on how rational they can be.
satisficing: means that decision makers choose the first
solution alternative that satisfies minimal decision criteria.
Is considered to be descriptive.
It is considered intuitive.
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Political Model
Closely resembles the real environment in whichmost managers and decision makers operate.
Decisions are complex.
Disagreement and conflict over problems andsolutions are normal.
Coalition building is important.
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Comparisons of:Classical, Political, & Administrative Models
Classical Model
Clear-cut problemand goals.
Condition ofcertainty.
Full informationabout alternativesand their outcomes.
Rational choice byindividual formaximizingoutcomes.
Political Model
Pluralistic; conflicting
goals.
Condition ofuncertainty/ambiguity.
Inconsistentviewpoints; ambiguousinformation.
Bargaining and
discussion among
coalition members.
Administrative Model
Vague problem andgoals.
Condition ofuncertainty.
Limited informationabout alternativesand their outcomes.
Satisfying choice forresolving problemusing intuition.
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Six Steps in the Managerial Decision Making Process
Decision Making Steps
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Decision Making Steps
Step 1 - Recognize The Need For A Decision
Managers must first realize that a decision must be made.
Sparked by an event such as environmental changes
Step 2 - Generate Alternatives
Managers must develop feasible alternative courses of action. If good alternatives are missed, the resulting decision is poor.
It is hard to develop creative alternatives, so managers need to
look for new ideas.
Some choice must exist in order to make effective decisions.
When there is no choice, there really is no decision to be made
D i i M ki S
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Decision Making Steps
Step 3 - Evaluate the Alternatives: what are the advantages and disadvantages
of each alternative?
In most decisions, a manager will want to achieve several objectives or
satisfy several criteria
Examples of criteria for buying a car: price, manufacturer, model,
warranty, service, reliability, repair record, trade-in allowance
Measure alternatives against previously determined and weighted
criteria
Involves being able to forecast future events
Under perfectly rational conditions, a rational decision maker could
carefully assess potential consequences of each alternative
D i i M ki S
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Decision Making Steps
Step 6 - Choose Among Alternatives: managers rank
alternatives and decide. When ranking, all information needs to be considered
Under perfect conditions - would be straightforward
Step 7 - Implement the Chosen Alternative: managers mustnow carry out the alternative
Step 8 - Evaluate the Decision (Learn from Feedback):
managers should consider what went right and wrongwith the decision and learn for the future
Without feedback, managers never learn from experience
and make the same mistake over
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Is it legal? Managers must first be sure that analternative is legal both in this country and abroad forexports.
Is it ethical? The alternative must be ethical and nothurt stakeholders unnecessarily.
Is it economically feasible?Can our organizationsperformance goals sustain this alternative?
Is it practical? Does the management have thecapabilities and resources to do it?
Evaluating Alternatives
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Suggests decision makers use heuristics to deal withbounded rationality.
A heuristic is a rule of thumb to deal with complexsituations.
If the heuristic is wrong, however, then poor decisionsresult from its use.
Systematic errors can result from use of an incorrect
heuristic. These errors will appear over and over since the rule
used to make decision is flawed.
Cognitive Biases
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Prior hypothesis bias: manager allows strong prior beliefsabout a relationship between variables and makes decisionsbased on these beliefs even when evidence shows they arewrong.
Representativeness: decision maker incorrectly generalizesa decision from a small sample or one incident.
Illusion of control: manager over-estimates their ability tocontrol events.
Escalating commitment: manager has already committedconsiderable resource to project and then commits moreeven after feedback indicates problems.
Types of Cognitive Biases
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Improved Group Decision Making
Improved Group Decision Making
Devils Advocacy: one member of the group acts as the devilsadvocate and critiques the way the group identifiedalternatives.
Points out problems with the alternative selection.
Dialectical inquiry: two different groups are assigned to theproblem and each group evaluates the other groupsalternatives.
Top managers then hear each group present theiralternatives and each group can critique the other.
Promote diversity: by increasing the diversity in a group, awider set of alternatives may be considered
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Organizational Learning:Managers seek to improve members abilityto understand the organization and environment so as to raiseeffectiveness.
The learning organization: managers try to improve the
peoples ability to behave creatively to maximizeorganizational learning
Creativity: is the ability of the decision maker to discover novelideas leading to a feasible course of action.
A creative management staff and employees are the key tothe learning organization
Organizational Learning & Creativity
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Senge suggests top managers follow several steps to build in
learning:
Personal Mastery: managers empower employees and allowthem to create and explore.
Mental Models: challenge employees to find new, better
methods to perform a task.
Team Learning: is more important than individual learningsince most decisions are made in groups.
Build a Shared Vision: a people share a common mentalmodel of the firm to evaluate opportunities.
Systems Thinking: know that actions in one area of the firmimpacts all others.
Creating a Learning Organization
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Individual Creativity
Organizations can build an environment supportive
of creativity.
Many of these issues are the same as for the learning
organization.
Managers must provide employees with the ability to
take risks. If people take risks, they will occasionally fail.
Thus, to build creativity, periodic failures must be
rewarded. This idea is hard to accept for some managers.
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Building Group Creativity
Brainstorming: group members introduce all possible solutionsbefore evaluating any of them
Four main rules of brainstorming:
avoid criticizing others ideas
share even wild suggestions offer as many suggestions and supportive comments as possible
build on others suggestions
Production blocking:
a potential problem with brainstorming
Members cannot absorb all the information being presentedduring the session and can forget their own alternatives
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Building Group Creativity
Nominal Group Technique: a group process wheremembers are a group in name only - do not attempt
to agree as a group on any solution
Nominal Group Process: each member writes down his or her ideas
ideas are presented orally and recorded for all to
see
ideas are discussed simultaneously for clarity members individually rank and secretly vote on each
proposed solution (idea)
the idea with the most individual votes is accepted
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Building Group Creativity
Delphi Technique: a group process where members donot actually meet - usually very time-consuming
Delphi Technique Process:
A problem is identified
Facilitator asks experts for solutions
Experts opinions are compiled and analyzed forcommon factors
Experts opinions are resubmitted for review ofresults and request for opinions
Process is continued until a consensus is reached
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Group Decision Making
Advantages
Groups can accumulate moreknowledge and facts
Groups have a broaderperspective and consider morealternative solutions
Individuals who participate inthe decision making process aremore satisfied with thedecisions and are more likely tosupport it
Group decision process servesan important communicationfunction as well as a politicalfunction
Disadvantages
Groups often work more slowlythan individuals
Group decisions involveconsiderable compromise whichmay lead to less than optimaldecision
Groups are often dominated byone individual or a smallclique, thereby negating manyof the virtues of groupprocedures
Over-reliance on groupdecisions can inhibitmanagements ability to actquickly and decisively whennecessary
Groupthink biased decision asstriving for agreement
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Management by Objectives Peter Drucker
Management by Objectives (MBO)
Relies on the defining of objectives for eachemployee and then comparing and directing theirperformance against the objectives which have
been set. It aims to increase organizational performance
aligning goals and subordinate objectivesthroughout the organization
Ideally, employees get strong input to identifyingtheir objectives, time lines for completion, etc
MBO includes ongoing tracking and feedback in theprocess to reach objectives
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MBO principles
Cascading of organizational goals andobjectives
Specific objectives for each member
Participative decision making Explicit time period
Performance evaluation and feedback.
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Objectives, should be 'SMART':
Management by Objectives also introduced the
SMART method for checking the validity of theObjectives.
Specific
Measurable
Achievable
Realistic / Relevant
Time-related.
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Organizational Behavior
Organizational behavior(OB)
A field of study thatinvestigates the impact that
individuals, groups, andstructure have on behaviorwithin organizations, for thepurpose of applying such
knowledge toward improvingan organizations effectiveness.
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Define Culture
Paradigm: What the organization is about; what it does; itsmission; its values.
Rituals and Routines: Management meetings, board reportsbecome more habitual than necessary.
Organizational Structures: Reporting lines, hierarchies, and theway that work flows thru the business.
Control Systems: The processes in place to monitor what is goingon..
Equations of Power: Who makes the decisions, how widely spreadis power, & what is power base?
Symbols: Logos and designs, may extend to symbols of power, ie
car parking spaces & executive washrooms! Stories and Myths: build up about people & events, and convey a
message on what is valued in Org
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Influences on organizational culture
National culture Nation specific influences
Work-groups
Departments
Task Importable (.crats)
Corporate Culture
Senior Management
ValuesCommitment
Sharing
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Individual cum Group Exercise
Define Culture of an Organization
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Hofstede Model
Power distance
Uncertainty avoidance
individualism vs. collectivism
Masculinity vs. femininity
Long vs. short term orientation
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Deal and Kennedy
The Tough-Guy Macho Culture
Rapid feedback, High Risk, Athletes
The Work Hard/Play Hard Culture
Rapid feedback, Low risk .Service industry
The Bet your Company Culture
Low Feedback, High Risk Research
The Process Culture
Low feedback , Low Risk.Beauraucracy
Feedback & Risk
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Charles Handy
Power Culture (Club) Few rules, little bureaucracy, quick decision
Role Culture (Apollo)
delegated authorities within a highly defined structure Task Culture (Athena)
Teams are formed to solve particular problems
Person Culture (Dionysus) where all individuals believe themselves superior to the
organization
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Leadership
Leadership is the process of persuasion and
example by which an individual (or leadership team)
induces a group to take action that is in accord with
the leaders purposes or the shared purposes of all.
- John Gardner
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Leader
Do the right things
Formal or Informal power
Vision, Change, Future
Manager
Do things right
Formal power
Daily operation, Monitor
Leader / Manager
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Approaches to Leadership
Trait
Behavioural
Contingency
Contemporary
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Trait Approach
Trait Approach: Centers on the physical, social,
intellectual or personality attributes that distinguishLeaders from non-leaders
Could there be consistent traits that apply to leaders inall situations?
Leaders and non-leaders: factors that increase thelikelihood of success
Ambition & Energy
Desire to Lead
Honesty & Integrity
Self-confidence Intelligence
Job Knowledge
High self-monitoring
So leaders are born and not made ?
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Trait Theories
Limitations
- Overlook Followers part
- Ignore Situational factors
- Endless but non-convergent list of traits
- It gives little advice for current or soon-to-beleaders.
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Behavioural Approaches
Because trait leadership researchers could not find aconclusive list of traits of leaders, researchers shifted
their attention towards leaders behavioral styles.
Main arguments of Behavioral theories: 1940s - 1960s
- Behavioral styles differentiate effective leaders from
ineffective leaders.
- If you show certain behavioral styles, you will be
always an effective leader in any situation.
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Behavioral Theories (II)
University of Iowa Studies:
- Authoritarian; Democratic; Laissez-faire styles
- Democratic Style is best.
Ohio State University Studies:- 2 dimensions: Initiating structure (high & low) and Consideration
(high & low)
- (High IS, High Consideration) leaders tend to be the most
effective.University of Michigan Studies:
- 1 dimension: Production oriented vs. Employee oriented
- Employee oriented leader is generally more effective.
Behavioral Theories
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9
8
7
6
5
4
3
2
1
1 2 3 4 5 6 7 8 9
concernfo
rpeople
Concern for production
1,9: Country Club
Mngt
9,9: Team Mngt
1,1: Impoverished
Mngt 9,1:Auth.-obedience
Managerial Grid by Blake and Mouton
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Limitations
- Overlook Followers part- Ignore Situational factors
- Divergent findings about the effective
leaders behavioral styles
Behavioral TheoriesBehavioral Theory limitations
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Similarity between two theories- Focus on leader part: Traits or Behavioral styles
- If you have certain characteristics (either personality traits or
behavioral styles), you will be an effective leader in any
situation.
Trait
Leaders are Born
Selection is important
Behavioral
Leaders can be Made
Training is important
Differences between two theories
Comparison of Trait and Behavioral Theories
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Contingency Theories
Because trait and behavioral leadership researchers
failed to find an effective leaders traits and/orbehavioral styles, researchers sought to look atsituational factors that possibly affect leadershipeffectiveness.
Main arguments of Contingency theories: 1960s -
Leadership effectiveness is determined by the degreeof match between leadership styles and situationalfactors.
Many contingency theories are different from eachother in terms of leadership styles and situationalfactors suggested by those theories.
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Contingency Theories
Leadership as a function of Interaction of leader,situation and followers
1. Fiedler Model
2. Hershey and Blanchards situational theory3. Leader-member exchange theory
4. Path-goal
5. Leader participation model
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Fiedler Model
First theory to put together a contingency approachSituation is a function of three dimensions
Leader-Member relationship
Degree of task structure
Leaders position powerSituation could be favourable or unfavourable for
leader
Situation in combination with Leadership style Task
or Relationship oriented- determines effectiveness.
Fi dl C i Th
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Category Leader-Member
Relations
Task Structure
Position Power
I
Good
High
Strong
II
Good
High
Weak
III
Good
Low
Strong
IV
Good
High
Weak
V
Poor
High
Strong
VI
Poor
High
Weak
VII
Poor
Low
Strong
VII
Poor
Low
Weak
Fiedlers Contingency Theory
H Bl h d Si i l L d hi
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Hersey Blanchard Situational Leadership
Right Leadership Style is contingent on the level of followersreadiness ( willingness to accomplish a task)
Four stages of Follower readiness are
D1 unwilling and unable
D2 - willing but unable
D3 able but unwilling
D4 able and willing
Leadership styles: 4 Styles (based on relationship behavior and task
behavior)- Telling: Give clear and specific directions about tasks (HT & LR)
- Selling: High task orientation & High relationship orientation
- Participating: Supportive and participative style (LT & HR)
- Delegating: Let subordinates do and decide (LT & LR)
H Bl h d Sit ti l L d hi
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Hersey Blanchard Situational Leadership
Relationship
behaviour
Task behaviour
TELLING
PARTICIPATING SELLING
DELEGATING*De
aler
P th G l Th
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Path- Goal Theory
Effective leaders clarify the path through support or directionand lead followers to the desired goals
A leader could be Acceptable
Motivational
Identifies four leadership Behaviours Directive
Supportive
Participative
Achievement Oriented
The Contingency variables considered are Subordinate characteristics
Task structure
P th G l Th
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Path- Goal Theory
Directive Leadership: Works in ambiguous tasks or conflictsituations and with subordinates with external locus of control.
Supportive Leadership: Leads to satisfaction in structured,
bureaucratic task situations.
Participative Leadership: Works with subordinates with internal
locus of control
Achievement-Oriented leadership: In ambiguous tasks situations
leads to expectancy of high performance through effort.
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Ch M t
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Change Management
Wh g i ti d t h g
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Why organisations need to change
Many things cause organisational change. Theseinclude:
challenges of growth, especially global markets
changes in strategy
technological changes
competitive pressures
customer pressure, particularly shifting markets
to learn new organisation behaviour and skills
government legislation/initiatives.
The different models of change
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The different models of change
The three main, contrasting models are from
Lewin
Beer
Shaw
Lewin's model
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Lewin s model
This model considers that change involves a move
from one static state via a state of activity toanother static status quo. Lewin specifically
considers a three-stage process of managing change:
Unfreezing,
Changing and Re-freezing.
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The first stage involves creating a level of
dissatisfaction with the status quo, which creates
conditions for change to be implemented.
The second stage requires organising and mobilising
the resources required to bring about the change.
The third stage involves embedding the new ways of
working into the organisation.
Beer's model
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Beer s model
Beer and colleagues advocate a model that
recognises that change is more complex andtherefore requires a more complex, albeit still
uniform set of responses to ensure its effectiveness.
They prescribe a six-step process to achieve
effective change. They concentrate on 'taskalignment', whereby employees' roles,
responsibilities and relationships are seen as key to
bring about situations that enforce changed ways of
thinking, attitudes and behaving. Their stages are:
The stages are:
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The stages are:
Mobilise commitment to change through joint
diagnosis.
Develop a shared vision of how to organise.
Foster consensus, competence and commitment to
shared vision.
Spread the word about the change.
Institutionalise the change through formal policies.
Monitor and adjust as needed.
Shaws model
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Shaw s model
This model looks at change in a different form. Change is seen
as both complex and also evolutionary. The starting point fortheir (and a number of other more recent models) model is
that the environment of an organisation is not in equilibrium.
As such the change mechanisms within organisations tend to be
'messy' and to a certain extent operate in reverse to the way
outlined by Lewin. It is not appropriate to consider the statusquo as an appropriate starting point, given that organisations
are not static entities. Rather the forces for change are
already inherent in the system and emerge as the system
adapts to its environment.
Such different models will have implications on the way
organisations and their leaders view change, the way they
manage change and the effectiveness of any change initiative.
Issues in the change management process?
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Issues in the change management process?
Organisational issues:
Individual change initiatives are not alwaysundertaken as part of a wider coherent change plan,for example a change that considers a new structurebut fails to establish the need to introduce newsystems to support such a structure is less likely to
succeed.
Poor communication has been linked to issuessurrounding the effectiveness of in achieving effectivechange in various ways. For example, imposed change
can lead to greater employee resistance
Finally, lack of effective leadership has beenidentified as an inhibitor of effective change.
Individual/group resistance to change
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Individual/group resistance to change
Resistance to change can be defined as an individualor group engaging in acts to block or disrupt an
attempt to introduce change.
Resistance itself can take many different forms fromsubtle undermining of change initiatives,
withholding of information to active resistance eg
via strikes.
Individual/group resistance to change
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Individual/group resistance to change
Resistance to change can be considered alongvarious dimensions:
individual versus collective
passive versus active
direct versus indirect behavioural versus verbal or attitudinal
minor versus major.
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Similarly two broad types of resistance can be
considered:
Resistance to the content of change - for example to
a specific change in technology, to the introduction of
a particular reward system.
Resistance to the process of change. This concerns
the way a change is introduced rather than the object
of change per se, for example, management re-
structure jobs, without prior consultation of affected
employees.
Reasons for resistance include
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Reasons for resistance include
loss of control
shock of new
Uncertainty
Inconvenience
threat to status
competence fears
It is important to try to diagnose the cause of
employee resistance as this will help determine thefocus of effort in trying to reduce/remove the issue.
What can be done to make change management more
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effective?
Leadership:Effective leadership is a key enabler as
it provides the vision and the rationale for change. Different styles of leadership have been identified,
for example coercive, directive, consultative and
collaborative.
These different styles may each be appropriatedepending on the type and scale of change being
undertaken. For example, when there is a large-scale
organisation-wide change a directive style has been
identified as most effective.
What can be done to make change management more
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effective?
Training: Appropriate and timely training is
frequently identified as key to effective change.Examples of training requirements might include:
Project and programme management skills to ensure
change initiatives are completed both on time and tobudget.
Change management skills, including communication
and facilitation.
leadership coaching.
What can be done to make change management more
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effective?
Communication: Two-way communication with
employees and their active involvement inimplementation has also been identified as a key
enabler of change.
Active participation is one suggested means ofovercoming resistance to change. (CFT)
The seven C's of change
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The seven C s of change
Choosing a team. Crafting the vision and the path.
Connecting organisation-wide change.
Consulting stakeholders.
Communicating.
Coping with change.
Capturing learning.
HRs role in change management
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HR s role in change management
Involvement at the initial stage in the project
team. Advising project leaders in skills available within the
organisation identifying any skills gaps, training
needs, new posts, new working practices etc
Balancing out the narrow/short-term goals withbroader strategic needs.
Assessing the impact of change in one
area/department/site on another part of the
organisation.
HRs role in change management
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HR s role in change management
Being used to negotiating and engaging across
various stakeholders. Understanding stakeholder concerns to anticipate
problems.
Understanding the appropriate medium of
communication to reach various groups. Helping people cope with change, performance
management and motivation.
Thank you
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Thank you