management functions & behaviour

7/29/2019 Management Functions & Behaviour

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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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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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Leading

A function that includes motivatingemployees, directing others, selectingthe most effective communication

channels, and resolving conflicts.


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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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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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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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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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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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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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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.



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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.



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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.



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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

management functions & behaviour

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