Management & Leadership

Management vs. LeadershipManagementThe process of coordinating and

integrating resources in order to effectively and efficiently achieve organizational goals and objectives

Leadership Interpersonal influence over others aimed

to achieve organizational goals & objectives

Industrial Revolution

Machine power replaced human power

More economical to manufacture goods

Moved manufacturing from homes to factories

Lead to…..

Industrial Revolution

Mass productionReduced transportation costs (rapid expansion of the railroad)No government regulationsThis lead to…Big corporations

Rockefeller & Standard Oil monopolyCarnegie Steele

An Activity

Upstairs

10 groups of 5

Choose a manager of the group

The IR Lead to 4 phases of management theory…..

1. Classic theories (1880’s-1930’s)2. Behavioral theories (1930s & 40’s)3. Human relations theories (1950’s-1970’s)4. Contemporary theories (1980’s+)

Classic Theories

Created to establish rational principles that would make org. more efficient

Focused on technical efficiency

2 approaches…

Classic Theories

1. Scientific Management One best way Efficiency is key Focus on individual

workers Taylor, Gilbreath, Gantt

2. General Administrative Theories Perspective of the entire

organization What are good

management practices Fayol, Weber

Scientific Management

Frederick TaylorWorker’s sequence of motions was timed

to determine the “one best way” to perform a task.

WeaknessesMonotonousDehumanizing

Scientific Management

Frank & Lilian GilbrethExperimented with the design & use of

proper tools & equipment to optimize work performance

First to use motion picture film to study hand & body motions

Examples of improvements in tools???

Scientific Management

Henri Gantt Production efficiency most important concern of

management.

Production goals & quotas set (piece-work)

Task and bonus wage system Bonuses set for exceeding quota – employee side of the

theory

Administrative Theories

Fayol’s 4 functions of ManagementPlanningOrganizingLeadingControlling

Plus 14 principles…see handout

Which are still seen today?

Administrative Theories

Weber’s bureaucracyDivision of laborAuthority hierarchyFormal selectionFormal rules & regulations ImpersonalityCareer orientation

What’s Happening…

Depression

Fair Labor Standards Act (1938)40 hour weekBanning of child labor

WW II

First computer introduced

Wal-Mart began

Behavioral Theories

Looks at “why” people do things rather than “how” people do things (Classical)

Embraces the study of sociology and psychology

Attempts to understand human and employee behavior

Behavioral Theories

Elton Mayo Western Electric Hawthorn StudiesControl & experimental groups with

illumination levelsBoth groups increased regardless of light

level

Given classic management why???

Behavioral Theories

Hawthorn Studies findingsFinancial incentives did not increase

productivity. Attention was far more motivating

Worked harder if they thought mgrs were concerned about them

Work norms drive productivity by establishing what is a fair days work

Social environment made monotonous work more palatable

Behavioral Theories

Mary Parker FollettSaw org as people & not productionMgrs should use skills to lead & not orderWorkers need to be given responsibilityMgrs should actually receive training in mgt

Work ignored for decades

What’s Happening…

Employment of women reaches highest point in history to date

IBM introduces first business computer (1955)

Civil Rights Act of 1964 makes discrimination illegal

Apple introduces first personal computer

Human Relations Era

People oriented approach to management

Looks at interaction of people & impact on org

Goal: enhance organizational success by building appropriate relationships among employees

Human Relations Era

Maslow’s hierarchy

Herzberg’s Motivation-Hygiene theoryThere are satisfiers (motivators) &

dissatisfiers (hygiene factors) that impact feelings toward the environment

Human Relations Era

Hygiene Factors MotivatorsCan lead to dissatisfaction: Leads to satisfaction:

Policies Recognition

Working conditions Growth on the job

Relationship with supervisors Advancement

Supervision received on the job Interesting work

Salary Responsibility

Contemporary TheoriesBest practices (Mintzberg, Peters, Covey, Drucker) Orgs need clearly defined values Vision Customer driven Recognize ee’s Collaboration among ee’s Treat ee’s as valuable assets Continually train & invest in ee’s Freedom to take risks Trust, honesty, integrity

4 generations of leadership

Trait theories

Behavioral theories

Contingency/situational theories

Contemporary views

4 generations of leadership

Trait theoriesCertain traits are inherent to leadersStarted as physical traitsMoved to interpersonal traitsLeadership is born & not learned

Is this credible?

4 generations of leadership

Behavioral theoriesWhat behaviors leaders exhibitLeadership is learned & not bornLeadership Grid

An exercise….

Management Grid

Task Orientation Concerned with productivity Satisfaction derived from completion of

task

People Orientation Concerned with establishing good

relationships Emotional aspect of leadership

Management Grid

Management Grid

Con

cern

for

Peo

ple

1 2

3 4

5 6

7 8

9

1 2 3 4 5 6 7 8 9

Concern for Task

1, 9 9, 9

1, 1 9, 1

5, 5

What did you learn about your management style?

4 generations of leadership

Contingency/situational theoriesLooked at the situationNo 1 leadership theory could explain

leadership effectivenessAccounted for the leader, follower & situationContingency theories – leadership style

changesSituational theories – leader changes

4 generations of leadership

Contemporary viewsCharismatic leadership theory (Bennis)

1. Compelling vision or sense of purpose2. Ability to communicate that vision in clear

ways that followers understand3. Demonstrated consistency and focus in

pursuit of their vision4. Strong awareness of their own strengths &

capitalize on them

4 e

lem

en

ts

stro

ng leaders

h

ave:

Prosper in high stress or

uncertainty

4 generations of leadership

Contemporary viewsKouzes & Posner’s 5 practices of

exemplary leaders

5 Practices of Exemplary Leadership

Model the way

Inspire a shared vision

Challenge the process

Enable others to act

Encourage the heart

5 PracticesModel the way Set the example Have common values Working side by side

Inspire a shared vision Dreams & visions of what could be Get others to understand & buy into that vision

5 Practices

Challenge the processSearch for opportunities to innovate, grow

& improve

Recognize good ideas & challenge the system to get them done

Encourage risk taking

5 Practices

Enable others to actLeadership is a team effortFoster collaborationMake it possible for others to do good workEmpowerment

5 Practices

Encourage the heartRecognize accomplishmentsCelebrate achievements