Lecture 2

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Lecture 2

  1. 1. MBA Organisational BehaviourMBA Organisational Behaviour Lecture 2Lecture 2 Management andManagement and Leadership in theLeadership in the organisationorganisation
  2. 2. 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 ofChanging work practices & the complexity of globalisationglobalisation
  3. 3. Objectives this week • The emergence, nature and role ofThe 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 andDifference between management and leadership.leadership.
  4. 4. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.4 Approaches to studyingApproaches to studying organisations & managementorganisations & management • ClassicalClassical • Human RelationsHuman Relations • SystemsSystems • ContingencyContingency
  5. 5. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.5 Classical ApproachClassical Approach • ClassicalClassical (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
  6. 6. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 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
  7. 7. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 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
  8. 8. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.8 Human Relations ApproachHuman Relations Approach • Human Relations ApproachHuman Relations Approach – The Hawthorne experiments WesternThe Hawthorne experiments Western electric co. (1924-32)electric co. (1924-32) • Increased mgt attention = increasedIncreased mgt attention = increased productivityproductivity • Norms fixed performance belowNorms fixed performance below achievable levels within groupsachievable levels within groups
  9. 9. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 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
  10. 10. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.10 Human Relations Approach cont.Human Relations Approach cont. • Proves the existence of informalProves the existence of informal organisations within formal structuresorganisations within formal structures • Not just about moneyNot just about money • Group values & norms influence individualGroup values & norms influence individual behaviourbehaviour • Began psychological orientation studies &Began psychological orientation studies & theory e.g. Maslowtheory e.g. Maslow
  11. 11. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.11 Systems ApproachSystems Approach • Reconciles classical and human relationsReconciles 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 andConsiders interdependent technical and social variablessocial variables • Explains why tech efficiencies don’tExplains why tech efficiencies don’t always increase output e.g. longwallalways increase output e.g. longwall miningmining
  12. 12. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.12 Contingency ApproachContingency Approach • Emphasises importance of structure onEmphasises importance of structure on performanceperformance • But considers task and environmentalBut considers task and environmental influencersinfluencers • Considers situation and context variablesConsiders situation and context variables
  13. 13. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 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)
  14. 14. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 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)
  15. 15. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.15 Relevance to OB?Relevance to OB? • Demonstrates the complexity of OBDemonstrates the complexity of OB • Provides a framework for examining orgs andProvides a framework for examining orgs and mgt stylesmgt styles • Helps identify problem areas (structure, humanHelps identify problem areas (structure, human relations, socio-technical process)relations, socio-technical process) • Can mix and match solutions depending on theCan mix and match solutions depending on the problemproblem
  16. 16. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.16 The meaning of managementThe meaning of management ““It is active - it is about changing behaviour andIt is active - it is about changing behaviour and making things happen”making things happen” ““It is an everyday activity involving interactionsIt is an everyday activity involving interactions between people that are not unrelated orbetween people that are not unrelated or entirely dissimilar to other spheres of life”entirely dissimilar to other spheres of life” WillmottWillmott
  17. 17. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.17 ManagementManagement Can be regarded as exercising formal authority over theCan be regarded as exercising formal authority over the action and performance of others. We can describeaction and performance of others. We can describe management as:management as: • taking place within a structured organisational settingtaking 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
  18. 18. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.18 What is management?What is management? • A functionA function • The people whoThe people who discharge itdischarge it • A social positionA social position DruckerDrucker • An authority • A discipline • A field of study
  19. 19. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.19 The emergence of managementThe emergence of management Every achievement of management is the achievement ofEvery 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
  20. 20. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.20 Are managers born or made?Are managers born or made? AnswerAnswer A combination of bothA combination of both
  21. 21. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 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 andborn with appropriate intuition, intelligence and personality, which they develop through the practicepersonality, 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
  22. 22. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.22 Defining managementDefining management Management is the process of achievingManagement is the process of achieving organisational effectiveness within a changingorganisational effectiveness within a changing environment by balancing efficiency,environment by balancing efficiency, effectiveness and equity, obtaining the most fromeffectiveness and equity, obtaining the most from limited resources, & working with & through otherlimited resources, & working with & through other people.people. NaylorNaylor
  23. 23. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.23 Elements of managementElements of management • PlanningPlanning • OrganisingOrganising • CommandCommand • Co-ordinationCo-ordination • ControlControl BrechBrech PlusPlus • Discretion & intuition during executionDiscretion & intuition during execution • Mgt permeates every area of a businessMgt permeates every area of a business
  24. 24. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 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
  25. 25. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.25A summary of the essential nature of management workA summary of the essential nature of management workFigure 6.4
  26. 26. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.26 The efforts of other peopleThe efforts of other people • Management can be defined as ‘getting workManagement 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 theirManagers are judged not just on their performance but on the results achieved byperformance but on the results achieved by subordinatessubordinates
  27. 27. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 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)
  28. 28. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.28 Challenge to managersChallenge to managers • The efficiency and effectiveness of theirThe 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 (?)
  29. 29. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 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 isThe level in the organisation at which the manager is workingworking
  30. 30. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.30 The work of a manager – the environmental settingThe work of a manager – the environmental setting Figure 6.5
  31. 31. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.31 The manager’s role - MintzbergThe manager’s role - Mintzberg
  32. 32. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.32 What great managers do…What great managers do… Buckingham “an average manager see employees asBuckingham “an average manager see employees as workers who fill roles; an exceptional manager seesworkers who fill roles; an exceptional manager sees them as individuals to build roles around...they discoverthem as individuals to build roles around...they discover what is unique about each person and then capitalise onwhat is unique about each person and then capitalise on it.”it.”
  33. 33. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.33 Six senior management elementsSix senior management elements 1.1. Shared competitive agendaShared competitive agenda 2.2. Values & behavioursValues & behaviours 3.3. Influence without ownershipInfluence without ownership 4.4. Competing for talentCompeting for talent 5.5. Speed of reactionSpeed of reaction 6.6. Leveraging corporate resourcesLeveraging corporate resources PrahaladPrahalad
  34. 34. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 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
  35. 35. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.35
  36. 36. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 Leadership
  37. 37. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 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.
  38. 38. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 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)
  39. 39. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.39 Why leadership is important • Flatter structures • Social democracy • Matrix teams & shared resources • Empowering environments • Shared design & management • Emphasis on coaching & support
  40. 40. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.40 Difference between leaders & managers?
  41. 41. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 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
  42. 42. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 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
  43. 43. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.43 Approaches to leadership • 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?
  44. 44. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.44 Approaches to leadership • 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?
  45. 45. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.45 Approaches to leadership • 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
  46. 46. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.46 Approaches to leadership • 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
  47. 47. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.47 Approaches to leadership 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
  48. 48. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.48 Approaches to leadership 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
  49. 49. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.49 Approaches to leadership 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
  50. 50. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.50 Approaches to leadership 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
  51. 51. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.51 Approaches to leadership • 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
  52. 52. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.52 Approaches to leadership • 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
  53. 53. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.53 Approaches to leadership • 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
  54. 54. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 6.54 Factors Affecting Style

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