lecture 2

MBA Organisational Behaviour MBA Organisational Behaviour Lecture 2Lecture 2

Management and Management and Leadership in the Leadership in the

organisationorganisation

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005

OHT 6.2

Last week we covered…

• Definition of organisational behaviourDefinition of organisational behaviour• Influences on behaviour in organisationsInfluences on behaviour in organisations• Management as an integrating activityManagement as an integrating activity• The new psychological contractThe new psychological contract• The importance of culture to the study of OBThe importance of culture to the study of OB• Changing work practices & the complexity of Changing work practices & the complexity of

globalisationglobalisation

Objectives this week

• The emergence, nature and role of The emergence, nature and role of management.management.

• Elements of management.Elements of management.• Factors affecting the work of managers.Factors affecting the work of managers.• The nature of leadership.The nature of leadership.• Leadership styles within the organisation.Leadership styles within the organisation.• Difference between management and Difference between management and

leadership.leadership.


OHT 6.4

Approaches to studying Approaches to studying organisations & managementorganisations & management

• Classical Classical

• Human RelationsHuman Relations

• SystemsSystems

• ContingencyContingency


OHT 6.5

Classical ApproachClassical Approach

• Classical Classical (Taylor)(Taylor)

– Emphasis on purpose, structure & taskEmphasis on purpose, structure & task

– TraditionalTraditional

– Rational & logicalRational & logical

– Formal / hierarchical / functionalFormal / hierarchical / functional

– Productivity focussed e.g. time & motionProductivity focussed e.g. time & motion


OHT 6.6

Relevance of Taylors work?Relevance of Taylors work?

• Developing countries?Developing countries?• Review of developed working practices?Review of developed working practices?

– Task simplificationTask simplification– Improved efficiencyImproved efficiency– Removal of supervisory levelsRemoval of supervisory levels– Success stories = Ford; steel productionSuccess stories = Ford; steel production


OHT 6.7

Criticisms of Classical approachCriticisms of Classical approach

• DehumanisingDehumanising

• Productivity drivenProductivity driven

• Human interaction has no partHuman interaction has no part

• Assumes money is the prime motivatorAssumes money is the prime motivator

• Confrontational & impersonalConfrontational & impersonal

• Rigid ‘bureaucratic’ & inflexibleRigid ‘bureaucratic’ & inflexible


OHT 6.8

Human Relations ApproachHuman Relations Approach

• Human Relations ApproachHuman Relations Approach

– The Hawthorne experiments Western The Hawthorne experiments Western electric co. (1924-32)electric co. (1924-32)

• Increased mgt attention = increased Increased mgt attention = increased productivityproductivity

• Norms fixed performance below Norms fixed performance below achievable levels within groupsachievable levels within groups


OHT 6.9

Human Relations Approach…Human Relations Approach…

• Considers importance ofConsiders importance of– Work groupsWork groups– Leadership (formal & informal)Leadership (formal & informal)– Communication / interactionsCommunication / interactions– MotivationMotivation– Job designJob design– Mgt behaviour on outputsMgt behaviour on outputs– Psychological & social needsPsychological & social needs


OHT 6.10

Human Relations Approach cont.Human Relations Approach cont.

• Proves the existence of informal Proves the existence of informal organisations within formal structuresorganisations within formal structures

• Not just about moneyNot just about money

• Group values & norms influence individual Group values & norms influence individual behaviourbehaviour

• Began psychological orientation studies & Began psychological orientation studies & theory e.g. Maslowtheory e.g. Maslow


OHT 6.11

Systems ApproachSystems Approach• Reconciles classical and human relations Reconciles classical and human relations

theorytheory• ‘‘total organisation’ theorytotal organisation’ theory• Combines structure and behaviourCombines structure and behaviour• Organisation is an ‘open system’Organisation is an ‘open system’• Considers interdependent technical and Considers interdependent technical and

social variablessocial variables• Explains why tech efficiencies don’t Explains why tech efficiencies don’t

always increase output e.g. longwall always increase output e.g. longwall miningmining


OHT 6.12

Contingency ApproachContingency Approach

• Emphasises importance of structure on Emphasises importance of structure on performanceperformance

• But considers task and environmental But considers task and environmental influencersinfluencers

• Considers situation and context variablesConsiders situation and context variables


OHT 6.13

Org and Mgt analysis should be...Org and Mgt analysis should be...

• A combination of:A combination of:

– RoleRole

– RelationshipsRelationships

– StructureStructure

– ProcessProcess (Bowey) (Bowey)


OHT 6.14

PostmodernismPostmodernism

• Post modern organisations are:Post modern organisations are:– Technologically determinedTechnologically determined– Structurally flexibleStructurally flexible– Niche basedNiche based– MultiskilledMultiskilled– Driven by complex relationsDriven by complex relations– Flexible employment (e.g.. Contractors)Flexible employment (e.g.. Contractors)

(Clegg)(Clegg)


OHT 6.15

Relevance to OB?Relevance to OB?

• Demonstrates the complexity of OBDemonstrates the complexity of OB• Provides a framework for examining orgs and Provides a framework for examining orgs and

mgt stylesmgt styles• Helps identify problem areas (structure, human Helps identify problem areas (structure, human

relations, socio-technical process)relations, socio-technical process)• Can mix and match solutions depending on the Can mix and match solutions depending on the

problemproblem


OHT 6.16

The meaning of management The meaning of management

““It is active - it is about changing behaviour and It is active - it is about changing behaviour and making things happen”making things happen”

““It is an everyday activity involving interactions It is an everyday activity involving interactions between people that are not unrelated or between people that are not unrelated or entirely dissimilar to other spheres of life” entirely dissimilar to other spheres of life” WillmottWillmott


OHT 6.17

ManagementManagement

Can be regarded as exercising formal authority over the Can be regarded as exercising formal authority over the action and performance of others. We can describe action and performance of others. We can describe management as:management as:

• taking place within a structured organisational setting taking place within a structured organisational setting and with prescribed rolesand with prescribed roles

• directed towards the attainment of aims and objectivesdirected towards the attainment of aims and objectives• achieved through the efforts of other peopleachieved through the efforts of other people• using systems and proceduresusing systems and procedures


OHT 6.18

What is management?What is management?

• A functionA function

• The people who The people who discharge itdischarge it

• A social positionA social position

DruckerDrucker

• An authority

• A discipline

• A field of study


OHT 6.19

The emergence of managementThe emergence of management

Every achievement of management is the achievement of Every achievement of management is the achievement of a manager.a manager.

Every failure is a failure of a manager.Every failure is a failure of a manager.

DruckerDrucker


OHT 6.20

Are managers born or made?Are managers born or made?

AnswerAnswer

A combination of bothA combination of both


OHT 6.21

Is management an art or a science?Is management an art or a science?

Management as an artManagement as an art – successful managers are – successful managers are born with appropriate intuition, intelligence and born with appropriate intuition, intelligence and personality, which they develop through the practice personality, which they develop through the practice of leadershipof leadership

Management as a scienceManagement as a science – successful managers – successful managers have learned the appropriate body of knowledge & have learned the appropriate body of knowledge & have developed an ability to apply acquired skills & have developed an ability to apply acquired skills & techniquestechniques


OHT 6.22

Defining management Defining management

Management is the process of achieving Management is the process of achieving organisational effectiveness within a changing organisational effectiveness within a changing environment by balancing efficiency, environment by balancing efficiency, effectiveness and equity, obtaining the most from effectiveness and equity, obtaining the most from limited resources, & working with & through other limited resources, & working with & through other people.people.

NaylorNaylor


OHT 6.23

Elements of managementElements of management

• PlanningPlanning• OrganisingOrganising• CommandCommand• Co-ordinationCo-ordination• Control Control BrechBrech

PlusPlus • Discretion & intuition during executionDiscretion & intuition during execution• Mgt permeates every area of a business Mgt permeates every area of a business


OHT 6.24

Tasks & contribution of a managerTasks & contribution of a manager

• Setting objectives (?)Setting objectives (?)

• Organising (?)Organising (?)

• Motivating & communicating (?)Motivating & communicating (?)

• Measuring (?)Measuring (?)

• Developing (?)Developing (?)

DruckerDrucker


OHT 6.25A summary of the essential nature of management workA summary of the essential nature of management workFigure 6.4


OHT 6.26

The efforts of other peopleThe efforts of other people

• Management can be defined as ‘getting work Management can be defined as ‘getting work done through the efforts of other people’done through the efforts of other people’

• Managers are judged not just on their Managers are judged not just on their performance but on the results achieved by performance but on the results achieved by subordinatessubordinates


OHT 6.27

What real managers do…What real managers do…

• Luthans 44 real manager studiesLuthans 44 real manager studies– Communication 29%Communication 29%– Trad’ mgt 32%(planning, decision making)Trad’ mgt 32%(planning, decision making)– Networking 19%(inc politicking)Networking 19%(inc politicking)– HRM 20% (motivating, discipline, conflict, HRM 20% (motivating, discipline, conflict,

staffing)staffing)


OHT 6.28

Challenge to managersChallenge to managers

• The efficiency and effectiveness of their The efficiency and effectiveness of their operations (?)operations (?)

• The clarification of aims & objectives (?)The clarification of aims & objectives (?)

• The design of a suitable structure (?)The design of a suitable structure (?)

• Execution of essential admin functions (?)Execution of essential admin functions (?)


OHT 6.29

Factors influencing the work of managersFactors influencing the work of managers

• The nature of the organisation, its philosophy, The nature of the organisation, its philosophy, objectives and sizeobjectives and size

• The type of structureThe type of structure• Activities and tasks involvedActivities and tasks involved• Technology and methods of performing workTechnology and methods of performing work• The nature of people employedThe nature of people employed• The level in the organisation at which the manager is The level in the organisation at which the manager is

workingworking


OHT 6.30

The work of a manager – the environmental settingThe work of a manager – the environmental setting

Figure 6.5


OHT 6.31 The manager’s role - MintzbergThe manager’s role - Mintzberg


OHT 6.32

What great managers do…What great managers do…

Buckingham “an average manager see employees as Buckingham “an average manager see employees as workers who fill roles; an exceptional manager sees workers who fill roles; an exceptional manager sees them as individuals to build roles around...they discover them as individuals to build roles around...they discover what is unique about each person and then capitalise on what is unique about each person and then capitalise on it.”it.”


OHT 6.33

Six senior management elementsSix senior management elements

1.1. Shared competitive agendaShared competitive agenda2.2. Values & behavioursValues & behaviours3.3. Influence without ownershipInfluence without ownership4.4. Competing for talentCompeting for talent5.5. Speed of reactionSpeed of reaction6.6. Leveraging corporate resourcesLeveraging corporate resources

PrahaladPrahalad


OHT 6.34

Changing role of managersChanging role of managers

• Values & behavioursValues & behaviours

• Managing change & uncertaintyManaging change & uncertainty

• Leadership & motivationLeadership & motivation

• Managing diversityManaging diversity

• HRD & organisational practicesHRD & organisational practices


OHT 6.35


Leadership


OHT 6.37

A Leadership Story:

• A group of workers and their leaders are set a task of clearing a road through a dense jungle on a remote island to get to the coast where an estuary provides a perfect site for a port.

• The leaders organise the labour into efficient units and monitor the distribution and use of capital assets – progress is excellent. The leaders continue to monitor and evaluate progress, making adjustments along the way to ensure the progress is maintained and efficiency increased wherever possible.

• Then, one day amidst all the hustle and bustle and activity, one person climbs up a nearby tree. The person surveys the scene from the top of the tree.


OHT 6.38

A Leadership Story:

• And shouts down to the assembled group below…

• “Wrong Way!”• (Story adapted from Stephen Covey (2004) “The Seven Habits of Highly Effective

People” Simon & Schuster).

• “Management is doing things right, leadership is doing the right things”

(Warren Bennis and Peter Drucker)


OHT 6.39

Why leadership is important

• Flatter structures

• Social democracy

• Matrix teams & shared resources

• Empowering environments

• Shared design & management

• Emphasis on coaching & support


OHT 6.40

Difference between leaders & managers?


OHT 6.41

Difference between leaders & managers?

• Leadership is personal

• Leaders create excitement

• Leaders have empathy and emotional involvement

• Managers conserve and regulate

• Leaders inspire


OHT 6.42

Approaches to leadership

• Qualities of traits approach

• Functional or group approach

• Leadership as a behavioural category

• Styles of leadership

• Contingency theories – ‘situational’

• Transformational leadership


OHT 6.43


• Trait theories:• Is there a set of characteristics

that determine a good leader?– Personality?– Dominance and personal presence?– Charisma?– Self confidence?– Achievement?– Ability to formulate a clear vision?


OHT 6.44


• Trait theories:– Are such characteristics

inherently gender biased?– Do such characteristics

produce good leaders?– Is leadership more than

just bringing about change?– Does this imply that leaders are born not

bred?


OHT 6.45


• Functional or group theories:– Focus on the management

of the organisation– Focus on procedures and efficiency– Focus on working to rules

and contracts– Managing current issues

and problems


OHT 6.46


• Behavioural:• Imply that leaders can be trained – focus on the

way of doing things– Structure based behavioural theories – focus on the

leader instituting structures – task orientated– Relationship based behavioural theories – focus on

the development and maintenance of relationships – process orientated


OHT 6.47


Types of leadership style: • Autocratic

– Leader makes decisions without reference to anyone else

– High degree of dependency on the leader– Can create de-motivation and alienation

of staff– May be valuable in some types of business where

decisions need to be made quickly and decisively


OHT 6.48


Types of leadership style: • Democratic

– Encourages decision making from different perspectives – leadership may be emphasised throughout the organisation

– Consultative: process of consultation before decisions are taken

– Persuasive: Leader takes decision and seeks to persuade others that the decision is correct


OHT 6.49


Types of leadership style:

• Laissez-Faire:– ‘Let it be’ – the leadership responsibilities

are shared by all– Can be very useful in businesses

where creative ideas are important– Can be highly motivational,

as people have control over their working life– Can make coordination and decision making

time-consuming and lacking in overall direction– Relies on good team work– Relies on good interpersonal relations


OHT 6.50


Types of leadership style:

• Paternalistic:– Leader acts as a ‘father figure’– Paternalistic leader makes decision but may

consult– Believes in the need to support staff


OHT 6.51


• Contingency Theories:– Leadership as being more flexible – different

leadership styles used at different times depending on the circumstance.

– Suggests leadership is not a fixed series of characteristics that can be transposed into different contexts


OHT 6.52


• Transformational Leadership– The most challenging aspect of business is leading

and managing change– The business environment is subject to fast-paced

economic and social change– Modern business must adapt

and be flexible to survive– Leaders need to be aware of how change impacts on

workers


OHT 6.53


• Transformational cont:– Widespread changes

to a business or organisation

• Requires:– Long term strategic planning– Clear objectives– Clear vision– Leading by example – walk the walk– Efficiency of systems and processes


OHT 6.54

Factors Affecting Style

lecture 2

Business

behaviour organisation

role of management

elements of management

management andmanagement

management anddifference

outputsmgt behaviour

human relations approach

nature of leadership