F1_Session5_notes

Lecture Notes 2010 Session 5 C4, C5 Kris-1 Leadership, management and supervision Leadership  Definition:  Someone who exercises influence over other people’  Leadership is an interpersonal influence director toward the achievement of a goal or goals • Interpersonal – between people • Influence- the power to affect others • Goal- something that we need/ant to achieve.  Leadership is a conscious activity and is concerned with setting goals and inspiring people to provide commitment to achieve the organization’s goals. Managers  Common aim of managers  Getting things done  Delegating to other people rather than doing everything themselves • The effective use and co-ordination of resources such as capital, plant, materials and labor to achieve defined objectives with maximum efficiency.  Management consists of • Function: the responsibility for directing and running an organization • Process: Incorporates the internal and external activities • Discipline: knowledge on management ( competence • Profession: Type of higher grade non-manual occupation Supervision  Part of management team • The supervisor is a person given authority for planning and controlling the work of their group, but all they can delegate to the group is the work itself. • Supervisor is therefore a type of manager whose main role is to ensure that specified tasks are performed correctly and efficiently by a defined group of people. • In general, supervisors will also be doing operations work and giving advice to others to help solve problems. If the more senior manager is absent, the supervisor will take over the role. – Planning, organizing, controlling, communication, problem solving and decision making, motivating and maintaining discipline • Note: Leader can be a manager but a manager is not necessarily a leader. If a manager can influence people to achieve the goals without using formal authority then the manager is demonstrating leadership.  Managers must ensure that supervisors understand organizational objectives and communicate the power and limits of the supervisor's authority. Supervision is an important part of the task and process of management.  Role of supervisor requires direct contact with and responsibility of the work of others  Front line -resolving problems first hand where the work is done and often having to resolve problems quickly  Need to have direct knowledge of employment legislation Lecture Notes 2010 Session 5 C4, C5 Kris-2  Responsible for negotiation and industrial relations within the department.  Management tasks and operational work to perform  Day-to-day detailed internal info9rmation ( manager – medium-term internal and external information) Theories of management  Classical school  Tylor and Fayol believed that individuals must subordinate themselves to the needs of the organization. In return the company was obliged to provide job security and goods remuneration.  They believed in ‘one best way’, the optimum way to: • Organize the firm • Do the individual job  Emphasis on the task to be done rather than on the person doing it • Belief in one controlling central authority • Specialization of tasks • Fair pay and good working conditions, decided by management • Clear lines of command. Fayol  Fayol argued that management may be split into five broad areas  14 rules of management  Division of work  Authority  Discipline  Unity of command Lecture Notes 2010 Session 5 C4, C5 Kris-3  Unit of direction  Subordination to the general interest  Remuneration  Centralization  Scalar chain  Order  Equity  Tenure of personnel  Initiative  Esprit de corps Taylor’s scientific management  Implications of Taylor’s scientific management  Workers should be set high targets, but should be well rewarded for achieving them.  Working methods should be analyzed ‘scientifically’, including the timing of work,  Management should plan and control all the workers’ efforts, leaving little discretion for individual control over working methods.  In most cases there principles are stil l relevant, but need more progressive approach ( modern theorists) • It is recognized that there is not always a ‘best’ way of doing a particular job. • Employees can often have considerable insight into a job and can make important suggestions for improvements • Many workers can be motivated by other methods than tight control and financial reward. The human relations school  “The Hawthorne Studies  Hawthorne Works of Western Electric Company  1924 - Chicago  Research focus: Relation of quality and quantity of illumination to efficiency in industry  Four Important Studies  “The Hawthorne Studies”  Illumination Study (November 1924)  Designed to test the effect of lighting intensity on worker productivity  Heuristic value: influence of human relations on work behavior  Relay Assembly Test Room Study (1927-1932)  Assembly of telephone relays (35 parts - 4 machine screws)  Production and satisfaction increased regardless of IV manipulation  Workers’ increased production and satisfaction related to supervisory practices  Human interrelationships are important contributing factors to worker productivity  Bottom Line: Supervisory practices increase employee morale AND productivity  Interviewing Program (1928-1930)  Investigate connection between supervisory practices and employee morale  Employees expressed their ideas and feelings (e.g., likes and dislikes) Lecture Notes 2010 Session 5 C4, C5 Kris-4  Process more important than actual results  Bank Wiring Room Observation Study (November 1931 - May 1932)  Social groups can influence production and individual work behavior  RQ: How is social control manifested on the shop floor?  Informal organization constrains employee behavior within formal organizational structure  “The Hawthorne Studies”- Implications  Illumination Study (November 1924)  The mere practice of observing people’s behavior tends to alter their behavior (Hawthorne Effect)  Relay Assembly Test Room Study (1927-1932)  Relationships between workers and their supervisors are powerful  Human interrelationships increase the amount and quality of worker participation in decision making  Interviewing Program (1928-1930)  Demonstrated powerful influence of upward communication  Workers were asked for opinions, told they mattered, and positive attitudes toward company increased  Bank Wiring Room Observation Study (November 1931 - May 1932)  Led future theorists to account for the existence of informal communication  Taken together, these studies helped to document the powerful nature of social relations in the workplace and moved managers more toward the interpersonal aspects of organizing.  “The Hawthorne Studies”- Criticism  Not conducted with the appropriate scientific rigor necessary  Too few subjects (N=5)  No control groups  Subjects replaced with more “cooperative” participants  WORTHLESS  GROSS ERRORS  INCOMPETENCE Modern writers  Contingency approach (“ no one best approach”)  Contingency theorists do not ignore the lessons learnt from earlier theorists, but adapt them to suit particular circumstances  Systems approach  Expresses a manager’s role as being a co-ordinator of the elements of a system, of which people are only one part. Environment Environment Input  Process  Output Environment Boundary Environment Drunker  Drunker identified five basic operations in the work of a manger Lecture Notes 2010 Session 5 C4, C5 Kris-5  Develop people ; set objectives; organize; motivate & communicate; establish yardsticks; develop people Mintzberg  Skills identified by Mintzberg which managers need if they are to develop greater effectiveness Lecture Notes 2010 Session 5 C4, C5 Kris-6 Managerial authority and responsibility  Authority refers to the relationship between the participants in an organization.  IT is the right to give orders and the power to exact obedience( Fayol)  It is the right to do something, or ask someone else to do it and expect it to be done.  It is thus another word for legitimate power. • Line Authority: Vertical chain of command • Staff authority: authority to advice another manager over which there is not line authority • Functional Authority: Hybrid of line and staff authority( Manager set policies and procedures for the company as a whole has the authority in certain circumstances to direct , design or control activities or procedures of another department.  Responsibility is the liability of a person to be called to account for his or her actions  It expresses the obligation a person has to fulfill a task.  It is the obligation to use delegated powers  Managers and supervisors are ultimately accountable for he actions of their subordinates  It can’t be delegated.  No superiors can escape responsibility John French and Bertram Raven  Five sources of powers Lecture Notes 2010 Session 5 C4, C5 Kris-7  Reward power: Based on one person having the ability to reward another person for carrying out orders or meeting other requirements.  Coercive power: Based on one person’s ability to punish another for not meeting requirements  Expert power: Based on the perception or belief that a person has some relevant expertise or special knowledge that others do not.  Referent power: based on one person’s desire to indentify with or imitate another  Legitimate power: Derived from being in a position of authority within the organization structure.  In every positions authority and responsibility should correspond( principle of correspondence)  Responsibility / No Authority  Supervisor may be held responsible for time keeping but does not have the authority to discipline subordinate for poor-keeping.  Leads to frustration, stress and de-motivation resulting in declining performance  Authority / No responsibility  Personal department employ an individual but will have no responsibility for the employee; they are in a position of false security  They exercise their authority in an irresponsible way and take unacceptable risks.  Note: The control mechanisms of any company depends on accountability Theory of leadership  Trait theories (Qualities approach)  Earn studies are based on the concept that leaders are born and not made. • Pick out the common personality characteristics ( or traits) so that they had a basis on which to recognize actual and potential leaders by knowing their traits and comparing them with the traits of known leaders. • List of leadership qualities – Physical traits- Drive, energy , appearance – Personality traits – adaptability , enthusiasm and self-confidence – Social traits- co-operation, tact, courtesy  The action-centred approach (Adair)  Adair suggests that any leader has to strive to achieve three major goals while at the same time maintaining a position as an effective leader.  Adair’s action- Centred leadership model looks at leadership in relation to the needs of the task, individual and group. Lecture Notes 2010 Session 5 C4, C5 Kris-8  The contingency approach ( Fiedler)  Effective leadership dependents on a number of variable or contingent factors. • One size does not fit all  Fiedler’s contingency theory • He studies the relationship between style of leadership and effectiveness of the work group. Identified two types of leaders 1. Psychologically distant managers ( PDMs) » Maintain distance from subordinates by formalizing roles and relationships within the team » Are withdrawn and reserved in their interpersonal relationships » Prefer formal communication and consultation methods rather than seek informal opinion » Judge subordinates on the basis of performance and are primarily task oriented. » Fiedler found that leaders of the most effect work groups actually tend to be PDMs 2. Psychologically close managers (PCMs) » Do not seek to formalize roles and relationships » Prefer informal contacts to regular formal staff meetings » They are more concentrated to maintain good human relationships at work to ensure that tasks are carried out efficiently. » Fiedler concluded that a structured(psychological distant style) style works best when the situation is either very favorable or very unfavorable to the leader. » A psychological close styles works better when the situation is moderately favorable to the leader. Lecture Notes 2010 Session 5 C4, C5 Kris-9 » The relationship between the leader and the group » The extent to which the task is defined and structured » The power of the leader in relation to the group  Transformational leadership (Bennis)  Transactional leaders – See the relationship with their followers in terms of a trade; they give followers the rewards they want in exchange for service, loyalty and compliance.  Transformational leaders – See their role as inspiring and motivating others to work at levels beyond mere compliance. Only transformational leadership is said to be able to change team/organizational cultures and create a new direction Bennis “five avenue of change” • Dissent and conflict : Management impose change by power • Trust and truth : Gain trust and express vision and persuade others • Cliques and cabals: Cliques have power, money and resources, cabals have ambition , drive and energy. Cooperation • External events : forces of society can impose change • Culture or paradigm shifts : Changing corporate culture Managing change (Kotter)  Leadership to mobilize ( Heifetz) Lecture Notes 2010 Session 5 C4, C5 Kris-10  He argues that the role of the leader is to help people face reality and to mobilize them to make change.  He suggests that the old approach to leadership was that leaders had answers, the vision and then needed to persuade people to sign up for the change.  He believes that leaders provide direction but do not have to offer definite answers and should mobilize people to tackle the tough challenges for themselves.  Possible choices for leaders to solve problems • Technical change: the application of current knowledge, skills and or tools to resolve a situation • Adaptive change: Is required when the problem cannot be solved with existing skills and knowledge and requires people to make a shift in their values, expectations, attitudes or habits of behavior.  Blake and Mouton  Observed two basic dimensions of leadership: concern for production ( or task performance) and concern for people.  Blake and Mouton’s grid Lecture Notes 2010 Session 5 C4, C5 Kris-11 Leadership styles Lecture Notes 2010 Session 5 C4, C5 Kris-12  Ashridge-Four different management styles 1. Tells ( Autocratic) : The manager makes all the decisions and issues instructions which must bee obeyed without questions • Strengths – Quick decisions can be made when required – The most efficient type of leadership for highly-programmed work. • Weaknesses – Communications are one-way, neglecting feedback and potential for upward communication or team member input – Does not encourage initiative or commitment from subordinates, merely compliance. 2. Sells ( persuasive): The manager still makes all the decisions, but believes that team members must be motivated to accept them in order to carry them out properly. • Strengths – Team members understand thee reason for decisions – Members will be more committed – Members will be able to function slightly better in the absence of instruction • Weaknesses – Communication are still largely one-way – Members are not necessarily motivated to accept the decision – It still doesn’t encourage initiative or commitment. 3. Consults ( participative ): The manager confers with the team and takes their views into account, although still retains the final say • Strengths – Involves team members in decisions, encouraging motivation through greater interest and involvement – Consensus may be reached enhancing the acceptability of the decisions to team members – The quality of the decision may benefit from the input of those who do the work – Encourages upward communication • Weaknesses – May take longer to reach decisions(especially if consensus is sought) – Team members input may not enhance the quality of the decision – Consultation can be façade for the basic ‘sells’ style 4. Joins (democratic): The leader and the team members make the decisions together on the basis of consensus.  Strengths Can provide high motivation and commitment from team members Empowers a team member to take the initiative Lecture Notes 2010 Session 5 C4, C5 Kris-13 Shares other advantages of the ‘consults’ style  Weaknesses May undermine the authority of the manager May further lengthen the decision-making process May reduce the quality of the decision because of the politics of decision making. Individual and group behavior in business organizations Main characteristics of individual and group behavior  Although individual behavior patterns may vary significantly, the process of behavior is the same for all people.  Behavior can be cause, motivated and is goal directed.  Factors that affect behavior and performance at work • Motivation level : Why people choose to do one thing over other. • Perception: How individuals select, organize and interpret the stimuli they receive? • Attitudes: persistent feelings and behavior tendencies directed towards specific persons, groups , ideas or objects • Personality : Influences an individuals’ behavior and performance.  Assertive behavior  Is direct, honest and professional communication. It is insisting on your rights without violating the rights of others.  Aggressive behavior  Violates another person’s rights and can lead to conflict  Passive behavior  Is giving into another person in the belief that their rights are more important than one’s own. Contribution of individuals and teams to organizational success  It’s not a one man show, its a team effort  Synergy is the phenomenon in which the combined activity of separate entities has a greater effect than the sum of the activities of each entity working alone. • When working co-operatively better end results in terms of speed, efficiency or quality can be achieved. • Where a task requires a mixture of different skills or specializations • Where competition between individuals leads to less effectiveness rather than more. • Where the task requires the co-ordination of activities Lecture Notes 2010 Session 5 C4, C5 Kris-14  The advantages associated with cohesive groups  Improved teamwork and problem solving  Greater creativity  Provide support for individuals within the group  Improved communication through participation  Satisfaction of social needs  Provides a forum for conflict resolution Factors required to make a cohesive group  Leadership: Use appropriate leadership style in order to promote co-operation and to motivate individuals towards the task and ensure that work is properly organized.  Right mix of skills: a mixed balance of i