Management and Supervision

Food Production Management 1Module 3

Section D – Leadership

All of the information has been adapted from Cronje, GJ. Et al. 2007. Introduction to Business Management. 6th Edition. Cape Town: Oxford University Press.

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Purpose of this section• People are the most complex part of an organisation. • They must be lead to achieve organisational goals. • This section deals with the difference between

leadership and management, and :– Authority– Power– Influence– Delegation of responsibility– Motivation.

Introduction• Organisations are made of of many different things,

namely, money, machines, raw materials, information, and most important of all, people.

• People are undoubtedly the most complex part of an organisation because we are all unpredictable and unique. Full of personality and emotion.

• Each individual in an organisation has a different combination of interests, capabilities, habits, beliefs and personal objectives, and each is differently motivated.

• Leadership is that element of the management process that sets activities in motion and keeps activities moving until the goals have been reached.

The Nature of Leadership• The management activities that are put in place must

also be kept in place if the goals are to be achieved. • This is where leadership comes in. • Allows the organisation to set things in motion. • Leadership is “the process of directing the behaviour

of others towards the accomplishment of predetermined goals.” (Cronje, et all, 2007)

• It was makes the plans become a reality.• Another definition “leadership may be defined as the

influencing and directing of the behaviour of subordinates in such a way that they willingly strive to accomplish the goals or objectives of the business.” (Cronje, et al, 2007)

The Nature of Leadership• In involves elements of:– Influencing people– Giving orders– Motivating people– Managing conflict

– Communicating with subordinates• It pumps energy into the business to activate people• It gets people moving and keeps them moving.

The Nature of Leadership• Leadership also means:– Passing on information to those below you– Explaining the mission (why are we doing this)– Detailing the objectives and goals (what are we doing)– Allocating tasks and giving instructions– Consulting with staff and supervising their work.– Doing what is necessary to raise productivity– Disciplining staff and handling conflict.

The Nature of Leadership

COMPONENTS OF THELEADERSHIP TASK

- Leadership and management- Motivation- Knowledge and group behaviour- Communication

LEAD- Influence behaviour of Subordinates to work Willingly towards goals- Direct activities of subordinatesTo reach business goals.

EnableManagement to

Figure: The components of leadership task of management

Source: Cronje, et al, 2007

• To be able to lead people, managers must understand the most important components of leadership.

Leadership and management• The performance of any business is directly

proportionate to the quality of leadership. • Raymond Ackerman, Steve Jobs, Bill Gates...

Management Area Greatest Needs

Leadership 53%

Operations management 28%

Marketing 27%

Finance 13%

Organisational behaviour 11%

Accounting 3%

Numbers do not add up to 100% because of multiple responses

Table: The need for expertise in different fields of management

Source: Fortune, 24 August 1992, p.85. (Cronje, et al, 2007, p.176)

Leadership and Management • Good managers are not necessarily good leaders.

• Hence, there are numerous training programmes designed to equip managers with leadership skills.

• The aim is to make good managers good leaders, and good leaders, good managers.

• “Management works in the system, leadership works on the system” Stephen Covey

• However, some say that “Leaders are born not made.”

Leadership and Management • Authority: The right of a leader to give commands to,

and demand actions from, subordinates.

• Power: The ability of a leader to influence the behaviour of others without necessarily using authority.

• Influence: The ability to use authority and power to move subordinates to action.

• Delegation: Occurs when a leaders transfers authority to a subordinate.

• Responsibility: Rests on a leader carrying out a given task on accordance with instructions, and being held accountable for the execution of all tasks by him/herself and subordinates.

Leadership and Management • Group Work• Read the entire hand out page from the top starting with

“As far as leadership characteristics are concerned...”• Then check out page 12 of the notes headed 3.2

Leadership/ decision making styles.• Then do the group assignment on page 13 and post it

up to the blog.• You may also do this assignment individually.• If you do it in a group remember to include every

member's name and student number.

Motivation

The right type of motivation is crucial...

Motivation• Motivation is closely linked with management. • People are complex and need motivation to do

things. • Freekanomics: “People only do anything because of

an incentive..”• In general it is not always easy to understand what

drives people. • Thus, the better managers understand what

motivates people, the better they will be able to influence their behaviour effectively.

• Higher profitability can be directly linked to how productive employees are which is directly linked to how they are motivated.

Motivation• Motivation is “an inner drive, stimulus or incentive to

satisfy a human need of some kind” (Cronje, et al, 2007) • Motivation is brought on by needs. (Maslows Hierarchy)• To satisfy needs, people are motivated to do something.

(Want money, work. Want to drive, get licence.)

Internal needs,Motives or drives

Reinforcement(determines future

needs)Satisfaction

Purposes or goalsBehaviour or action

Leads to

Cause Fulfils

Brings

Provides

Source: Cronje, et al, 2007

Figure: A fundamental motivation model

Motivation• Hence, managers should have an understanding of

the inner needs of subordinates to be able to motivate them effectively.

• Good management: Figuring out ways that peoples inner needs can be satisfied while at the same time accomplishing business goals.

• Working is not just about money, it plays an important part in every persons life and influences aspects of peoples self-realisation and identity.

• Work determines a range of things about a person like their status, where they live, the people they associate with, how they see themselves, etc...

• Must find the underlying motivation in people.

Motivation• To motivate subordinates, managers must ask

themselves two questions:– What are the people's needs?– How can they be satisfied within the business?

Maslow's Hierarchy of Needs

Maslow in Management• Physiological: Money satisfies these needs. • Security: Insurance policies against loss and death,

medical insurance and pension schemes. (Are jobs with a pension scheme more desirable?)

• Social: Play an important part of the informal organisational structure. Teamwork and team building are a good way to encourage this.

• Esteem: Performance incentives are designed to motivate this. (Get a company car, an award, etc)

• Self Actualisation: Most difficult to satisfy. Assignments that present challenges and the opportunity for participation in decision making.

Communication• Group task• Please complete the group work section on page 17

of the notes under the heading 3.4.3 Effective teamwork.

• Do so in a group in class and hand in.

Groups in an Organisation• Employees tend to work in groups. • “A group consists of two or more individuals who

regularly interact with one another and work for a common purpose.” (Cronje, et al, 2007)

• The different types of groups in a business:– Functional group: Marketing department– Task Group: committees created to carry out a

specific duty. – Interest group: These are informally arranged. Could

support the business (lunch time meeting), or just be random (domino game).

GROUPS

Characteristics of Groups• A leader: A group will always have a leader, and its

success will depend on their leadership abilities. • Followers or members: The success of a group

depends on whether the members are willing to accept their leadership. However, some say that “leadership is not taken, it is given.”

• Norms and standards: The interaction between members will eventually create group norms, or generally accepted behaviour. Members can either accept or reject these norms. Group pressure will tend to ensure that members conform to group norms. Group pressure can be good and bad.

Characteristics of Groups• Group Solidarity: The degree of influence that the

group is able to exert on individual members. Groups with a strong sense of solidarity display less tension, misunderstanding and conflict.

• Interdependence: They compete and conflict with one another. The relationship between different groups is very important and should be managed well.

• The better workers in a section function as a group, the greater the possibility of their fulfilling common goals, and therefore those of the business.

• It is the leader's task to ensure that group members work towards the success of the business.

Communication• Good leadership depends on good communication

between leaders and those below them. • A considerable amount of a leaders time is devoted

to communication. • Good communication is conducive to good

relationships between managers and employees, and that in turn is conducive to a good relationship between in the business and its customers.

• To be good leaders, managers must be able to communicate intelligibly, and encourage effective communication in the business.

Summary• Leadership makes plans come to life• It is a necessary skill for all managers• To be good leaders, managers must understand– The nature of leadership– How to motivate people– How groups behave– And how to communicate effectively

• These things will all contribute to being a good leader and guiding the business towards success.