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MANAGEMENT AND 
LEADERSHIP 
By 
Professor Benon C Basheka (Ph.D)
Objectives of training 
• Emerging global paradoxical challenges facing 
employers & trade unions 
• Union responses to Industrial, Organizational, 
Technological and market changes/recessionary 
• challenges. 
• Economic systems and structural adjustments and 
trade unions 
• • New responsibilities and role of trade union in the 
new industrial & business scenario;
• Building collaborative leadership working-together; 
Enhancing information base, 
communication skill; 
• Positive union management relations 
• • Creating awareness, leading to attitudinal 
changes and providing the inputs for responsive 
& responsible 
• leadership 
• • Working out concrete Action Plans for future
• Because effective leadership is at the core of 
successful businesses, the understanding of 
• what makes a successful leader is an issue that 
has been debated for decades. 
• Leadership has become even more important 
due to the noticeable decline of enduring 
successful leaders in the business world today
• The leader is the person in the group that 
possesses the combination of personality and 
skills that makes others want to follow his or her 
direction
• Robbins (2003) defines leadership as, coping with 
change. 
• Leaders establish direction by developing a vision of 
the future; then they align people by communicating 
this vision and inspiring them to overcome hurdles. 
• Ernsberger (2000) states that leadership involves 
accomplishing group objectives, taking a diverse 
group of people, bringing them together, and 
finding a common thread that enables them to work 
together to achieve a common goal.
INTRODUCTION 
Everyone belongs to organizations and is 
aware of what goes on in organizations 
Good things take place in organizations but 
also bad and evil things are committed in our 
organizations 
The leadership and management of 
organizations have never been more 
challenging than it is today. 
This is because organizations are 
continuously operating in very changing and 
competitive environments.
…. 
• Solutions which worked yesterday may 
not work today 
• Individuals also keep changing and are 
becoming more complex and dishonest 
•Resource are increasingly becoming 
scarce and managers are required ‘to do 
more with less’
• Problems in organizations are becoming too 
many and solving them requires 
sophisticated skills and multidisciplinary 
competencies 
• Organizations of today are increasingly being 
divided on the basis of: 
▫ Tribe 
▫ Religion 
▫ Education 
▫ Gender 
▫ Political ideology 
▫ ETC
Worry to note that…. 
• Promotions and recruitments into 
organizations which used to be on merit are 
now increasingly based on some irrational 
criteria 
• Those who occupy offices do not want to leave 
for others 
• Institutions trusted with certain mandates are 
simply not doing what they ought to do
….. 
• Private interest sometimes supersede 
organizational interests 
• Institutional procedures are not followed and 
yet; 
• Such organizations are run by educated 
people-not peasants 
• Things seems to be ‘falling apart’ in many 
organisations-organisations are sick
So what is the problem? 
• Leadership cannot escape these 
problems 
• Those in management are grossly 
responsible -The biggest problems 
come from those charged with 
Management (20/80 rule) at various 
levels 
• Individuals in are part of the problem 
• Groups in organizations have further 
increased the problem
Every organization has : 
•Managers, but few people know what these 
managers really do or are expected to do. 
• Managers are supposed to have authority and 
power, which implies the ability to coerce 
compliance by making subordinates carry out 
orders. 
• Let us explore some key concepts from onset
Trade Union Leadership 
• The trade union, through its leadership, bargains 
with the employer on behalf of union members and 
negotiates labour contracts (collective bargaining) 
with employers. 
• The most common purpose of these associations or 
unions is "maintaining or improving the conditions 
of their employment“. 
• This may include the negotiation of wages, work 
rules, complaint procedures, rules governing hiring, 
firing and promotion of workers, benefits, work 
• place safety and policies.
• One of the key challenges facing trade union 
organizations today in Africa is that of leadership 
structure and the politics of succession. 
• In its basic form, a trade union organization is not a 
democratic structure due to its methods of 
succession as far as leadership is concerned. 
• Trade union organizations constitute integral part of 
the societies as representatives of the workers
Theories of Trade Union Management
Challenges in Trade Union Leadership 
• Challenges of Democracy 
• The Political Factor 
• Union Government Relationship 
• Aristocratic Authority and the Leadership Question 
• Rank and File Question
An organization always has three 
characteristics: 
Structure 
purpose, and 
Activity 
 The word "goals" usually implies something 
that cannot be accomplished by individuals 
working at it alone or in separate ways, so 
in this sense, goals require synergy and 
synergy requires organization.
The History of Organizational Management 
• Management has not evolved today 
• There are several examples of management that 
span the history of the human race 
• The history of management can be traced under the 
following periods: 
▫ Ancient times 
▫ Medieval Times 
▫ Industrial period 
▫ 20th Century 
▫ 21st Century
Interest of Managers… 
• The ideal interest of every manager should be to 
have an effective (as well as efficient) organization. 
• Effective organizations focus on (Hersey et al, 
2001). : 
Quality and customer satisfaction; 
Respond quickly to environmental changes 
Innovate, develop and implement appropriate strategies; 
Have a global mindset 
Are willing to network with strategic partners 
Cope with changes in management and are committed to 
continuous learning
• It is those in management who will ensure that the 
organization either achieves its objectives OR it 
fails to do so. 
• It is documented that it is managers who are 
responsible for the collapse of many organizations 
(80/20 Rule or the Pareto Principle).
Management is: 
Both an art and a science 
Is as Profession and 
Is an academic discipline .
• Mullins (2007) while quoting Watson(1986) 
considers Management from four angles: 
▫ Management as a science-Successful 
managers are those who have learned the 
appropriate body of knowledge and have 
developed an ability to apply acquired skills 
and techniques
• Management as an art-Successful 
managers are those born with 
appropriate intuition, intelligence 
and personality which they develop 
through the practice of leadership
• Management as politics-Successful managers 
are those who can work out the unwritten laws of 
life in an organizational jungle and are able to play 
the game so that they win
•Management as Magic-successful 
managers are those who recognize that 
nobody really knows what is going on and 
who persuades others of their own powers by 
calling up the appropriate gods and by 
engaging in the expected rituals
Six Business Principles for every manager 
• Value for customers 
▫ A business exists to create value of some kind. It takes 
raw materials or activities and increases their value in 
some way, transforming them into products or 
services that customers will buy. 
▫ Value is what customers pay for- customers buy things 
that they value.
• Organization 
▫ An organization must have goals and the 
resources (human, material, and financial) to 
meet those goals. 
▫ It must keep track of what it does and how well it 
does it. 
▫ Each department has to perform its function 
properly. 
▫ Employees must be assigned specific tasks that 
move the outfit toward its goals.
• Competitive advantage 
▫ To succeed in a particular market, a company 
must do something better than other companies 
in that business. 
▫ Doing something better creates a competitive 
advantage. 
▫ That “something” may be only one aspect of the 
product or service, as long as customers value it 
highly.
• Control 
▫ After management decides how to create value, organize 
the business, and establish a competitive advantage, it 
must control the outfit. 
▫ This does not mean ruling with an iron fist (although 
some managers believe it does). 
▫ Rather, it means that everyone must know the company’s 
goals and be assigned tasks that will move everyone 
toward those goals.
▫ Controls ensure that the right manager knows what’s 
going on at all times. 
▫ These controls are based mostly on information. 
▫ For example, every company needs financial controls. 
▫ Managers have budgets so they can control their 
department’s spending.
• Profitability 
▫ A business is set up to make money. The money a 
business earns can be measured in various ways. But 
no matter how it is measured, a business has to make 
money—earn a profit—on its operations. 
▫ If, during a certain period of time, a business takes in 
more money for its products than it spends making 
those products, it makes a profit for that period. 
▫ If not, it has a loss for the period. Losses cannot 
continue for long or the company will go bankrupt.
• The most basic goal of management is to make 
money for the business owners. 
• Regardless of how well they do anything else, 
managers who lose money for the owners will not 
keep their jobs for long. 
• Whatever else a business does, its overall goal must 
be profitability
• Ethical practices 
▫ Today’s competitiveness and the drive for profits 
have been blamed for an upswing in bad behavior in 
business. 
▫ However, dishonesty and greed have been around as 
long as business itself—longer, in fact. 
▫ Although the vast majority of businesspeople are 
honest, managers in particular must engage in and 
tolerate only completely ethical practices.
• This is true for three reasons: 
▫ First, managers, especially senior managers, hold a 
position of trust as stewards of the company for the 
stockholders, employees, customers, and community. 
▫ Second, managers have the most opportunity to 
enrich themselves at the expense of the stockholders, 
employees, customers, and community. 
▫ Third, managers set the standard for the entire 
company. If they are fudging their numbers, how can 
they expect honest numbers from their subordinates?
Management and Leadership 
• Leadership and management are two notions that 
are often used interchangeably. However, these 
words actually describe two different concepts. 
• Managing and leading are two different ways of 
organizing people. 
• The manager uses a formal, rational method whilst 
the leader uses passion and stirs emotions.
• Leadership is the process of directing and 
influencing the task-related activities of group 
members. 
• Leadership involves other people and an unequal 
distribution of power between leaders and group 
members, and it is the ability to use different forms 
of power to influence followers’ behaviour in a 
number of ways.
• This gives three implications namely that: 
▫ Leadership involves other people-subordinates or 
followers 
▫ Leadership involves unequal distribution of power 
between leaders and group members 
▫ Leadership is the ability to use the different forms of 
power to influence follower’s behaviours in a number 
of ways.
• Although leadership is highly related to 
management, the two concepts are different. 
Managers perform functions in organizations and 
hold a particular formal title. 
• Leaders on the other hand aim to influence and 
guide others into pursing particular objectives or 
visions of the future and to stimulate them into 
wanting to follow
• In a nutshell, the difference between leadership 
and management is: 
▫ Leadership is setting a new direction or vision for a 
group that they follow, ie: a leader is the spearhead 
for that new direction 
▫ Management controls or directs people/resources 
in a group according to principles or values that 
have already been established.
Differences summarized as…. 
Subject Leader Manager 
Essence Change Stability 
Focus Leading People Managing People 
Have Followers Subordinates 
Horizon Lon-term Short-term 
Seeks Vision Objectives 
Approach Sets direction Plans detail 
Decision Facilitates Makes
Power Personal 
Charisma 
Formal authority 
Appeal Heart Head 
Energy Passion Control 
Dynamic Proactive Reactive 
Persuasion sell Tell 
Style Transformationa 
l 
Transactional 
Exchange Excitement for 
work 
Money for work
Likes Striving Action 
Wants Achievement Results 
Risks Takes Minimizes 
Rules Breaks Makes 
Conflict Uses Avoids 
Direction New Roads Existing Roads 
Truth Seeks Establishes 
Concern What is right Being Right
Credit Gives Takes 
Blame Takes Blames
What Do Managers Do? 
• One of the first and most widely quoted analyses of 
the activities of management is that given by Henry 
Fayol who analyzed the activities of industry 
undertaking into six groups (Mullins, 1999, p.170). 
• The six groups include 
▫ Technical (Production, manufacture and adaptation); 
▫ Commercial (buying, selling, exchange and market 
information), 
▫ Financial (obtaining capital and making optimal use 
of available funds); 
▫ Security (safeguarding property and persons),
▫ Accounting (information on the economic 
positions, stock taking, balance sheet, 
costs, statistics; and 
▫ Managerial (management is a translation 
of the French term administration).
• According to Fayol, the managerial activity was 
divided into five elements of management which 
are: 
▫ Planning-translated from the French prevoyer-to 
foresee and taken to include forecasting)-examining 
the future, deciding what needs to be achieved and 
developing a plan of action 
▫ Organizing-providing the material and human 
resources and building the structure to carry out the 
activities of the organization 
▫ Command-maintaining activity among personnel, 
getting the optimum return from all employees in the 
interest of the whole organization
• Co-ordination-unifying and harmonizing all 
activities and effort of the organization to facilitate 
its working and success 
• Control-verifying that everything occurs in 
accordance with plans, instructions, established 
principles and expressed command
Fayol also suggested that a set of well established 
principles would help concentrate general 
discussion on management theory. 
He emphasized that these principles must be 
flexible and adaptive to the changing environment. 
This was probably one of his foresighted views 
about the continuous changing environment in 
which managers operate.
14 Principles of administration 
Division of Work 
Authority and responsibility 
Discipline 
Unity of command 
Unity of direction 
Subordination of individual interest to general 
interest 
• Remuneration of personnel
• Centralization is always present to some degree 
in any organization 
• Scalar chain-The chain of superiors from the 
ultimate authority to the lowest ranks 
• Order-Material order and social order 
• Equity 
• Stability of tenure of personnel 
• Initiative 
• Esprit de corps
According to Mullins (1999) 
• Managers 
▫ manage and interact with people 
▫ coach low performers to improve their work 
▫ organizing job tasks 
▫ settling disputes, and 
▫ developing career paths for individual employees 
but these are only part of the managerial activities 
in which managers become heavily involved’.
Note 
• It must be noted that management is not a 
systematic process. 
• The ‘real’ world of management is chaotic, 
challenging and creative. 
• Managers have a heavy workload comprising 
predominantly current, specific and ad hoc 
issues.
• Interpersonal roles- All managers are 
required to perform duties that are 
ceremonial and symbolic in nature. 
• All mangers also have leadership roles-hiring, 
training, motivating and disciplining 
employees.
SKILLS OF MANAGERS 
• Most people are hired by organizations to initially 
perform some tasks involving technical skills. 
• These skills provide an individual with expertise to 
perform specialized tasks within a specific work domain 
(Perterson, 2004). 
• Quite often; individuals are later promoted to 
managerial positions because they have shown 
themselves to be technically competent (Byrd et al, 
2004).
• It has almost become a norm in organizations that to 
access managerial positions, individuals must 
demonstrate some recognized degree of technical 
competence in some area of specialization. 
• This suggests that while they may have some 
technical skills, these individuals usually lack 
management skills. 
• Therefore, such individuals need to have other skills 
other than the technical skills
• While the technical skills provide knowledge on 
specialized tasks, managerial skills provide expertise 
on managerial activities. 
• That is why some managers may not do certain tasks 
of their jobs because they lack the abilities and skills 
to perform them effectively-they tend to avoid some 
management aspects of their jobs where they lack 
expertise
• This ‘trick’ may not be sustainable in the era of 
modern management world where managers are 
required to be ‘generalists’. 
• At best, the manager’s current jobs can be described 
as being harshly chaotic. 
• Managers now operate in turmoil and require skills to 
take them through this turmoil
• The literature of management is full of authoritative 
write ups on the managerial skills requirement. 
• In 1955, the Harvard Business Review (HBR) 
published an article by Katz entitled ‘Skills of an 
effective administrator’. 
• The framing of the title in itself suggest that there are 
two types of administrators namely effective and 
ineffective administrators.
• In that article, the author argued that what was 
important was not an executive’s traits or personality 
characteristics, but what that executive could 
accomplish. 
• He argued that it is a set of core skills which are 
employed by managers in pursuit of organizational 
objectives that was important.
• Katz noted that the core managerial skills were not 
inborn personality traits but felt that these skills could 
and should be developed in managers by providing 
them with a set of managerial knowledge bases and 
methods for accessing this information
• Based on the above assumptions, Katz proposed that 
managers need three sets of skills namely technical, 
human and conceptual skills with each broad 
category having narrowly focused abilities. 
• Katz also noted that there were a lot of 
interrelationships among the three skills although he 
had described each independently.
• Technical skills -defined as the understanding of, or 
proficiency in, specific activities that require the use 
of specialized tools, methods, processes, procedures, 
techniques or knowledge 
• Accordingly, Katz noted that these skills required 
working with things not people
• Human skills-These are defined as the ability 
to cooperatively work with others, to 
communicate effectively, to resolve conflict, and 
to be a team player. 
• Human skills are primarily concerned with 
people
• Conceptual skills-the ability to see the 
organization as a whole or to have a systemic 
view point. 
• While technical skills focus on things and human 
skills focus on people, conceptual skills focus on 
ideas and concepts.
Ten years after Katz’s article, Mann (1965) conducted 
a series of studies to test the conceptualization of 
skills by Katz. 
His studies found empirical support for the ideas of 
Katz that different amounts of the three skills 
categories are required at different levels within the 
organization 
The author also provided evidence that the three skills 
were interrelated and that all levels of management 
needed the three sets of skills
• In 1974, the Harvard Business Review (HBR) 
republished the Katz article as an ‘HBR classic’. 
• In introductory comments to the article, the 
Harvard Business Review Editorial staff said ‘the 
soundness of this approach is shown by enduring 
popularity of the article-nearly 4,000 reprints 
were sold in the first six months of 1974’. 
• Many organizations have suffered because their 
managers usually lack these three sets of skills. 
Meanwhile, research in this area was not done
In 1978, Guglielmino conducted an empirical study on 
managerial skills where he surveyed a random sample of 
middle level managers from Fortune 500 companies, 
management professors in business schools, and training 
and development directors from Fortune 500 companies 
All these three groups identified technical, human and 
conceptual skills as being important for managers of the 
future. 
Also, a mix of the three skills was reported as being 
necessary at each level of management.
From the huge volumes of literature on managerial 
skills, it is clear that the message delivered by Katz in 
1955 is still profound. 
However, some additional skills have been added. 
There are now a round ten skills which are usually 
identified as critical for managerial work 
According to Peterson (2004) an examination of the 
seven additional skill categories suggests that each 
category attempts to capture a group of specific tasks 
that the manager must perform to be effective.
• Technical 
• Analytic 
• Decision making 
• Human 
• Communication 
• Interpersonal 
• Conceptual 
• Diagnostic 
• Flexible 
• Administrative
CORPORATE GOVERNANCE
RESULTS –ORIENTED MANAGEMENT 
• Trade unions are integral part of our industry 
and business life. But still none or few of them 
enjoy the confidence of employers. 
• The vice-versa is also equally true

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Management and leadership NOTU

  • 1. MANAGEMENT AND LEADERSHIP By Professor Benon C Basheka (Ph.D)
  • 2. Objectives of training • Emerging global paradoxical challenges facing employers & trade unions • Union responses to Industrial, Organizational, Technological and market changes/recessionary • challenges. • Economic systems and structural adjustments and trade unions • • New responsibilities and role of trade union in the new industrial & business scenario;
  • 3. • Building collaborative leadership working-together; Enhancing information base, communication skill; • Positive union management relations • • Creating awareness, leading to attitudinal changes and providing the inputs for responsive & responsible • leadership • • Working out concrete Action Plans for future
  • 4. • Because effective leadership is at the core of successful businesses, the understanding of • what makes a successful leader is an issue that has been debated for decades. • Leadership has become even more important due to the noticeable decline of enduring successful leaders in the business world today
  • 5. • The leader is the person in the group that possesses the combination of personality and skills that makes others want to follow his or her direction
  • 6. • Robbins (2003) defines leadership as, coping with change. • Leaders establish direction by developing a vision of the future; then they align people by communicating this vision and inspiring them to overcome hurdles. • Ernsberger (2000) states that leadership involves accomplishing group objectives, taking a diverse group of people, bringing them together, and finding a common thread that enables them to work together to achieve a common goal.
  • 7. INTRODUCTION Everyone belongs to organizations and is aware of what goes on in organizations Good things take place in organizations but also bad and evil things are committed in our organizations The leadership and management of organizations have never been more challenging than it is today. This is because organizations are continuously operating in very changing and competitive environments.
  • 8. …. • Solutions which worked yesterday may not work today • Individuals also keep changing and are becoming more complex and dishonest •Resource are increasingly becoming scarce and managers are required ‘to do more with less’
  • 9. • Problems in organizations are becoming too many and solving them requires sophisticated skills and multidisciplinary competencies • Organizations of today are increasingly being divided on the basis of: ▫ Tribe ▫ Religion ▫ Education ▫ Gender ▫ Political ideology ▫ ETC
  • 10. Worry to note that…. • Promotions and recruitments into organizations which used to be on merit are now increasingly based on some irrational criteria • Those who occupy offices do not want to leave for others • Institutions trusted with certain mandates are simply not doing what they ought to do
  • 11. ….. • Private interest sometimes supersede organizational interests • Institutional procedures are not followed and yet; • Such organizations are run by educated people-not peasants • Things seems to be ‘falling apart’ in many organisations-organisations are sick
  • 12. So what is the problem? • Leadership cannot escape these problems • Those in management are grossly responsible -The biggest problems come from those charged with Management (20/80 rule) at various levels • Individuals in are part of the problem • Groups in organizations have further increased the problem
  • 13. Every organization has : •Managers, but few people know what these managers really do or are expected to do. • Managers are supposed to have authority and power, which implies the ability to coerce compliance by making subordinates carry out orders. • Let us explore some key concepts from onset
  • 14. Trade Union Leadership • The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts (collective bargaining) with employers. • The most common purpose of these associations or unions is "maintaining or improving the conditions of their employment“. • This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, work • place safety and policies.
  • 15. • One of the key challenges facing trade union organizations today in Africa is that of leadership structure and the politics of succession. • In its basic form, a trade union organization is not a democratic structure due to its methods of succession as far as leadership is concerned. • Trade union organizations constitute integral part of the societies as representatives of the workers
  • 16. Theories of Trade Union Management
  • 17. Challenges in Trade Union Leadership • Challenges of Democracy • The Political Factor • Union Government Relationship • Aristocratic Authority and the Leadership Question • Rank and File Question
  • 18. An organization always has three characteristics: Structure purpose, and Activity  The word "goals" usually implies something that cannot be accomplished by individuals working at it alone or in separate ways, so in this sense, goals require synergy and synergy requires organization.
  • 19. The History of Organizational Management • Management has not evolved today • There are several examples of management that span the history of the human race • The history of management can be traced under the following periods: ▫ Ancient times ▫ Medieval Times ▫ Industrial period ▫ 20th Century ▫ 21st Century
  • 20. Interest of Managers… • The ideal interest of every manager should be to have an effective (as well as efficient) organization. • Effective organizations focus on (Hersey et al, 2001). : Quality and customer satisfaction; Respond quickly to environmental changes Innovate, develop and implement appropriate strategies; Have a global mindset Are willing to network with strategic partners Cope with changes in management and are committed to continuous learning
  • 21. • It is those in management who will ensure that the organization either achieves its objectives OR it fails to do so. • It is documented that it is managers who are responsible for the collapse of many organizations (80/20 Rule or the Pareto Principle).
  • 22. Management is: Both an art and a science Is as Profession and Is an academic discipline .
  • 23. • Mullins (2007) while quoting Watson(1986) considers Management from four angles: ▫ Management as a science-Successful managers are those who have learned the appropriate body of knowledge and have developed an ability to apply acquired skills and techniques
  • 24. • Management as an art-Successful managers are those born with appropriate intuition, intelligence and personality which they develop through the practice of leadership
  • 25. • Management as politics-Successful managers are those who can work out the unwritten laws of life in an organizational jungle and are able to play the game so that they win
  • 26. •Management as Magic-successful managers are those who recognize that nobody really knows what is going on and who persuades others of their own powers by calling up the appropriate gods and by engaging in the expected rituals
  • 27. Six Business Principles for every manager • Value for customers ▫ A business exists to create value of some kind. It takes raw materials or activities and increases their value in some way, transforming them into products or services that customers will buy. ▫ Value is what customers pay for- customers buy things that they value.
  • 28. • Organization ▫ An organization must have goals and the resources (human, material, and financial) to meet those goals. ▫ It must keep track of what it does and how well it does it. ▫ Each department has to perform its function properly. ▫ Employees must be assigned specific tasks that move the outfit toward its goals.
  • 29. • Competitive advantage ▫ To succeed in a particular market, a company must do something better than other companies in that business. ▫ Doing something better creates a competitive advantage. ▫ That “something” may be only one aspect of the product or service, as long as customers value it highly.
  • 30. • Control ▫ After management decides how to create value, organize the business, and establish a competitive advantage, it must control the outfit. ▫ This does not mean ruling with an iron fist (although some managers believe it does). ▫ Rather, it means that everyone must know the company’s goals and be assigned tasks that will move everyone toward those goals.
  • 31. ▫ Controls ensure that the right manager knows what’s going on at all times. ▫ These controls are based mostly on information. ▫ For example, every company needs financial controls. ▫ Managers have budgets so they can control their department’s spending.
  • 32. • Profitability ▫ A business is set up to make money. The money a business earns can be measured in various ways. But no matter how it is measured, a business has to make money—earn a profit—on its operations. ▫ If, during a certain period of time, a business takes in more money for its products than it spends making those products, it makes a profit for that period. ▫ If not, it has a loss for the period. Losses cannot continue for long or the company will go bankrupt.
  • 33. • The most basic goal of management is to make money for the business owners. • Regardless of how well they do anything else, managers who lose money for the owners will not keep their jobs for long. • Whatever else a business does, its overall goal must be profitability
  • 34. • Ethical practices ▫ Today’s competitiveness and the drive for profits have been blamed for an upswing in bad behavior in business. ▫ However, dishonesty and greed have been around as long as business itself—longer, in fact. ▫ Although the vast majority of businesspeople are honest, managers in particular must engage in and tolerate only completely ethical practices.
  • 35. • This is true for three reasons: ▫ First, managers, especially senior managers, hold a position of trust as stewards of the company for the stockholders, employees, customers, and community. ▫ Second, managers have the most opportunity to enrich themselves at the expense of the stockholders, employees, customers, and community. ▫ Third, managers set the standard for the entire company. If they are fudging their numbers, how can they expect honest numbers from their subordinates?
  • 36. Management and Leadership • Leadership and management are two notions that are often used interchangeably. However, these words actually describe two different concepts. • Managing and leading are two different ways of organizing people. • The manager uses a formal, rational method whilst the leader uses passion and stirs emotions.
  • 37. • Leadership is the process of directing and influencing the task-related activities of group members. • Leadership involves other people and an unequal distribution of power between leaders and group members, and it is the ability to use different forms of power to influence followers’ behaviour in a number of ways.
  • 38. • This gives three implications namely that: ▫ Leadership involves other people-subordinates or followers ▫ Leadership involves unequal distribution of power between leaders and group members ▫ Leadership is the ability to use the different forms of power to influence follower’s behaviours in a number of ways.
  • 39. • Although leadership is highly related to management, the two concepts are different. Managers perform functions in organizations and hold a particular formal title. • Leaders on the other hand aim to influence and guide others into pursing particular objectives or visions of the future and to stimulate them into wanting to follow
  • 40. • In a nutshell, the difference between leadership and management is: ▫ Leadership is setting a new direction or vision for a group that they follow, ie: a leader is the spearhead for that new direction ▫ Management controls or directs people/resources in a group according to principles or values that have already been established.
  • 41. Differences summarized as…. Subject Leader Manager Essence Change Stability Focus Leading People Managing People Have Followers Subordinates Horizon Lon-term Short-term Seeks Vision Objectives Approach Sets direction Plans detail Decision Facilitates Makes
  • 42. Power Personal Charisma Formal authority Appeal Heart Head Energy Passion Control Dynamic Proactive Reactive Persuasion sell Tell Style Transformationa l Transactional Exchange Excitement for work Money for work
  • 43. Likes Striving Action Wants Achievement Results Risks Takes Minimizes Rules Breaks Makes Conflict Uses Avoids Direction New Roads Existing Roads Truth Seeks Establishes Concern What is right Being Right
  • 44. Credit Gives Takes Blame Takes Blames
  • 45. What Do Managers Do? • One of the first and most widely quoted analyses of the activities of management is that given by Henry Fayol who analyzed the activities of industry undertaking into six groups (Mullins, 1999, p.170). • The six groups include ▫ Technical (Production, manufacture and adaptation); ▫ Commercial (buying, selling, exchange and market information), ▫ Financial (obtaining capital and making optimal use of available funds); ▫ Security (safeguarding property and persons),
  • 46. ▫ Accounting (information on the economic positions, stock taking, balance sheet, costs, statistics; and ▫ Managerial (management is a translation of the French term administration).
  • 47. • According to Fayol, the managerial activity was divided into five elements of management which are: ▫ Planning-translated from the French prevoyer-to foresee and taken to include forecasting)-examining the future, deciding what needs to be achieved and developing a plan of action ▫ Organizing-providing the material and human resources and building the structure to carry out the activities of the organization ▫ Command-maintaining activity among personnel, getting the optimum return from all employees in the interest of the whole organization
  • 48. • Co-ordination-unifying and harmonizing all activities and effort of the organization to facilitate its working and success • Control-verifying that everything occurs in accordance with plans, instructions, established principles and expressed command
  • 49. Fayol also suggested that a set of well established principles would help concentrate general discussion on management theory. He emphasized that these principles must be flexible and adaptive to the changing environment. This was probably one of his foresighted views about the continuous changing environment in which managers operate.
  • 50. 14 Principles of administration Division of Work Authority and responsibility Discipline Unity of command Unity of direction Subordination of individual interest to general interest • Remuneration of personnel
  • 51. • Centralization is always present to some degree in any organization • Scalar chain-The chain of superiors from the ultimate authority to the lowest ranks • Order-Material order and social order • Equity • Stability of tenure of personnel • Initiative • Esprit de corps
  • 52. According to Mullins (1999) • Managers ▫ manage and interact with people ▫ coach low performers to improve their work ▫ organizing job tasks ▫ settling disputes, and ▫ developing career paths for individual employees but these are only part of the managerial activities in which managers become heavily involved’.
  • 53. Note • It must be noted that management is not a systematic process. • The ‘real’ world of management is chaotic, challenging and creative. • Managers have a heavy workload comprising predominantly current, specific and ad hoc issues.
  • 54. • Interpersonal roles- All managers are required to perform duties that are ceremonial and symbolic in nature. • All mangers also have leadership roles-hiring, training, motivating and disciplining employees.
  • 55. SKILLS OF MANAGERS • Most people are hired by organizations to initially perform some tasks involving technical skills. • These skills provide an individual with expertise to perform specialized tasks within a specific work domain (Perterson, 2004). • Quite often; individuals are later promoted to managerial positions because they have shown themselves to be technically competent (Byrd et al, 2004).
  • 56. • It has almost become a norm in organizations that to access managerial positions, individuals must demonstrate some recognized degree of technical competence in some area of specialization. • This suggests that while they may have some technical skills, these individuals usually lack management skills. • Therefore, such individuals need to have other skills other than the technical skills
  • 57. • While the technical skills provide knowledge on specialized tasks, managerial skills provide expertise on managerial activities. • That is why some managers may not do certain tasks of their jobs because they lack the abilities and skills to perform them effectively-they tend to avoid some management aspects of their jobs where they lack expertise
  • 58. • This ‘trick’ may not be sustainable in the era of modern management world where managers are required to be ‘generalists’. • At best, the manager’s current jobs can be described as being harshly chaotic. • Managers now operate in turmoil and require skills to take them through this turmoil
  • 59. • The literature of management is full of authoritative write ups on the managerial skills requirement. • In 1955, the Harvard Business Review (HBR) published an article by Katz entitled ‘Skills of an effective administrator’. • The framing of the title in itself suggest that there are two types of administrators namely effective and ineffective administrators.
  • 60. • In that article, the author argued that what was important was not an executive’s traits or personality characteristics, but what that executive could accomplish. • He argued that it is a set of core skills which are employed by managers in pursuit of organizational objectives that was important.
  • 61. • Katz noted that the core managerial skills were not inborn personality traits but felt that these skills could and should be developed in managers by providing them with a set of managerial knowledge bases and methods for accessing this information
  • 62. • Based on the above assumptions, Katz proposed that managers need three sets of skills namely technical, human and conceptual skills with each broad category having narrowly focused abilities. • Katz also noted that there were a lot of interrelationships among the three skills although he had described each independently.
  • 63. • Technical skills -defined as the understanding of, or proficiency in, specific activities that require the use of specialized tools, methods, processes, procedures, techniques or knowledge • Accordingly, Katz noted that these skills required working with things not people
  • 64. • Human skills-These are defined as the ability to cooperatively work with others, to communicate effectively, to resolve conflict, and to be a team player. • Human skills are primarily concerned with people
  • 65. • Conceptual skills-the ability to see the organization as a whole or to have a systemic view point. • While technical skills focus on things and human skills focus on people, conceptual skills focus on ideas and concepts.
  • 66. Ten years after Katz’s article, Mann (1965) conducted a series of studies to test the conceptualization of skills by Katz. His studies found empirical support for the ideas of Katz that different amounts of the three skills categories are required at different levels within the organization The author also provided evidence that the three skills were interrelated and that all levels of management needed the three sets of skills
  • 67. • In 1974, the Harvard Business Review (HBR) republished the Katz article as an ‘HBR classic’. • In introductory comments to the article, the Harvard Business Review Editorial staff said ‘the soundness of this approach is shown by enduring popularity of the article-nearly 4,000 reprints were sold in the first six months of 1974’. • Many organizations have suffered because their managers usually lack these three sets of skills. Meanwhile, research in this area was not done
  • 68. In 1978, Guglielmino conducted an empirical study on managerial skills where he surveyed a random sample of middle level managers from Fortune 500 companies, management professors in business schools, and training and development directors from Fortune 500 companies All these three groups identified technical, human and conceptual skills as being important for managers of the future. Also, a mix of the three skills was reported as being necessary at each level of management.
  • 69. From the huge volumes of literature on managerial skills, it is clear that the message delivered by Katz in 1955 is still profound. However, some additional skills have been added. There are now a round ten skills which are usually identified as critical for managerial work According to Peterson (2004) an examination of the seven additional skill categories suggests that each category attempts to capture a group of specific tasks that the manager must perform to be effective.
  • 70. • Technical • Analytic • Decision making • Human • Communication • Interpersonal • Conceptual • Diagnostic • Flexible • Administrative
  • 72. RESULTS –ORIENTED MANAGEMENT • Trade unions are integral part of our industry and business life. But still none or few of them enjoy the confidence of employers. • The vice-versa is also equally true