Models of Management

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Models of Management
Delegation and Empowerment
MTL Course Topics
DELEGATION AND
EMPOWERMENT

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MTL Course Topics
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MTL Course Topics
ARE YOU READY?
OK, LET’S START!

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MTL Course Topics
INTRODUCTION
Many commentators have described our times as times of
change. According to this analysis, we are at the end of one
era, the Industrial Age, and at the dawn of another, the
Information Age. Old industries and the organisations that
supported them have declined, died or changed, sometimes
naturally, often traumatically. With these changes, the times
have introduced new ways for managers to manage. The old
ways just do not fit any more: it is time for the skills of
leadership.

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MTL Course Topics
MODELS OF MANAGEMENT
The past hundred years provide us with a number of
management theories which at various times have been
popular. These form models which are still relevant today.
1. Scientific Management: the belief that people are a
resource and can be analysed, measured and quantified
2. Systematic Management: the belief that each function
of the organisation is part of a system that can be
managed
3. People Management: the belief that the key to
organisational success lies in how people are motivated
4. Contingency Management: the belief that how you
manage depends on the demands of each situation
5. Manager-less Management: the belief that people are
managed best when they are able to manage
themselves.

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MTL Course Topics
SCIENTIFIC MANAGEMENT
Scientific management was the earliest theory
of management to be written down in the
1900's. Its basis is that all activities, including
those which people perform, are observable,
measurable and countable.
Characteristics: the use of time, motion and
work study to plan work; close supervision;
accurately-measured results; control.
Environment: predictable environments where
processes do not change.
Manager's role: machine fixer
Pros: In the early years of mass industrialisation,
scientific management produced spectacular
advances in technology.
Cons: Scientific management risks losing sight of
the need to manage individuals especially when
enterprises grow too big, too complex and too
rigid.
Key Figures: Henri Fayol; Frederick Winslow
Taylor; the Ford Motor company
Relevance today: Scientific management and its
associated features are completely out of
fashion today. However, the idea of measuring,
counting, and maintaining resources is still at
the heart of management, whether old or new.

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MTL Course Topics
F W TAYLOR
Frederick Winslow Taylor is credited with being the founder
and chief advocate of scientific management.
In work which he carried out for the Bethlehem Steel
company in the USA, he predicted that by measuring work
tasks, he could improve the productivity and efficiency of
any worker by up to a half.
In one notable experiment of statistical management, he
raised the amount a pig-iron smelter could lift by 47% and at
the same time incorporated set breaks into each working
hour.
Moreover, these results were not just flash-in-the-pan but
sustained for several years.

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MTL Course Topics
SYSTEMS MANAGEMENT
A system is "an assemblage of people, things,
information and other attributes grouped
together according to a particular system
objective." Systematic management seeks to co-
ordinate diverse activities so that they work
together.
Characteristics: policies; rules; systems and
procedures; standards and targets; order; co-
ordination
Environment: a belief that for every situation in
the environment a system can be devised to
handle it.
Manager's role: to create procedures and
surround others with rules, discipline and
cultural models.
Pros: Many of our large organisations operate
on systematic lines as a way of unifying, binding
and co-ordinating what people do.
Cons: Systematic management can deteriorate
into bureaucracy where rules are obeyed
"because they're the rules" and innovation is
stifled.
Key figures: Lyndall Urwick; Mary Parker Follett
Relevance today: Systems management
provides an excellent model for managing all the
separate parts of an enterprise or project. The
term, “systems management”, is now used
widely for the way information is managed in an
organisation, including gathering requirements,
purchasing equipment and software,
distributing it to where it is to be used,
configuring it, maintaining it, setting up
problem-handling processes, and determining
whether objectives are being met.

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MTL Course Topics
SYSTEMS
The systematic approach to management is probably the
most popular approach to managing one-off projects and
ongoing management systems.
In the systematic approach, there are three main stages:
Planning; Doing; Controlling.
And under each of these, any of the following sub-systems:
1. purchasing and stock control
2. expediting and raw material storage
3. organising, communicating and managing information
4. maintenance and repairs to equipment
5. personnel selection, training and development
6. accounting and cost control
7. quality control
8. health and safety systems
9. administration

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THE BODY AS A SYSTEM
The model for the systematic approach to management is
the human body. The body contains numerous different
systems such as the respiratory, muscular, cardio-vascular,
digestive, circulatory and nervous systems, all needing to
work together in an unnoticed but co-ordinated way and
serving the healthy life and development of the person.
An organisation can be seen like the human body:
1. the organisation structure can be likened to the
skeleton
2. the jobs that get the work done can be likened to the
muscles
3. the people that provide the energy can be likened to
blood and guts
4. the products by which the organisation is known can be
likened to the flesh.

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MTL Course Topics
URWICK'S PRINCIPLES
Lyndall Urwick could have been describing the human body
when he described his principles of systematic management
some 80 years ago.
These include the following...
1. every separate part of the organism should serve the
whole
2. each part should specialise in one particular function
3. all the parts need to be co-ordinated
4. each part should be inter-dependent with others
5. the more important part should be responsible for the
less important part
6. there should be overall balance
7. the aim of the whole organism is its continuity.

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MTL Course Topics
PEOPLE MANAGEMENT
Human resource management focuses on the
abilities and potential of individuals and the
team. It seeks to release latent skills and
develop them. Its chief skill is leadership.
Characteristics: motivation; team spirit; co-
operation; healthy competition; morale; team-
building; leadership.
Environment: flourishes where people need to
work together, in changing environments where
innovation and growth are needed.
Manager's role: the manager adds the skills of
team leader to other skills.
Pros: Leadership adds an extra dimension to
management and is of particular value when the
team faces challenge and difficulties.
Cons: Developing teams and individuals takes
time and learning. Organisations in crisis and
without leadership skills may not have time to
effect the needed changes.
Key figures: Abraham Maslow; Elton Mayo;
Douglas McGregor; Frederick Herzberg
Relevance today: The relationship between
employee and employer is still at the heart of
management but it is rare to find advanced
business organisations using motivation theory
today as they did in the past.

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LEADERSHIP MODELS
A manager acting as leader can adopt a variety of leader
positions in relation to the team.
Here are nine different positions:
1. figurehead: the leader acts as spokesperson for the team.
2. co-ordinator: the leader is the hub of the team and
everyone links to him or her.
3. pioneer: the leader is way out in front of the team.
4. first among equals: the leader is one of the team but
distinguished by leadership skills from the team.
5. problem-solver: the leader works with the team only to
solve problems the team can't handle.
6. hands-off: the leader does not interfere with the team's
work but keeps a supportive eye on what they do.
7. lynchpin: the leader links the team with other teams.
8. listener: the leader consults with the team.
9. supporter: the leader champions the team to others.
10. visionary: the leader sees what the team can achieve.

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MTL Course Topics
CONTINGENCY MANAGEMENT
Contingency management is management that adapts and
adjusts itself to each situation.
Characteristics: flexible, dependent on circumstances;
responsive; developmental.
Environment: the nature of contingency management is
that it is not dependent on only one situation but can adapt
to any kind of situation. It is a management style relevant to
times of change.
Manager's role: skilled and confident, the manager is able
to manage in whatever way suits the needs of the situation.
Pros: Contingency management puts the objectives of the
team - which include the needs of the customer - ahead of
all other needs.
Cons: Managers who lack versatility may simply not be able
to make the choices necessary in contingency management.
Key players: Fred Fiedler; Ken Blanchard

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MTL Course Topics
MANAGERLESS MANAGEMENT
"Managerless" management sounds like a contradiction in
terms but it is not. Managerless management means
supporting and helping the team without the usual
interference of management. It means leaving the team to
make its own decisions, do its own planning and organising,
and achieve its own success.
Characteristics: facilitation; development; trust in the team;
self-managing; self-motivation; self-discipline.
Environment: needs the presence of high levels of trust and
experience of self-management in the team.
Manager's role: support; help and guide.
Pros: This kind of management can only flourish in highly
committed teams.
Cons: Teams need to develop into managerless
management from other styles of management. It should
only be used when a team is mature enough for it.
Key figures: Robert Webb; Milton Friedman; W Edwards
Deming

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A TIME OF CRISIS?
The need for leaders often arises at times of crisis, when
people seek someone to help them out of difficulties and
point the way forward. We may be at such a stage in the
development of the industrialised West.
In a survey by International Survey Research, 54% of UK
workers said they felt they were badly organised, inefficient,
poorly supervised, badly trained and had less job security,
low levels of job identification and a poor quality of
workmanship.
In their views on leadership, the UK came bottom of a
league of seven European countries.

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A TIME OF CHANGE?
The last few decades have witnessed change on an
unprecedented scale in work and working lives.
Some of the biggest and most secure industries and
organisations - car-making, ship-building, steel, motorcycles,
coal mining, - are either no more or else completely
different from how they were 30 or 40 years ago.
These changes either reflect or set off other changes:
changes in how we work, how we play, how we live.
Change for most of us can be frightening and confusing. We
survive and make the most of the opportunities change
offers if we have leaders to guide us through it or leadership
skills to take us through it by ourselves.

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NEW ATTITUDES
Old management attitudes were grounded in the
importance, not of people, but of things: technology, fuel,
energy, money.
This is how General Motors described itself in the 1970's:
"We are in the business of making money, not cars.
Workers have no impact on product or quality.
Consumerist, environmental and social concerns are of no
interest to the public. Strict financial controls are the keys to
a well-run organisation.“
Before the end of the following decade GM were in serious
business trouble: in 1991 they were losing money at the
rate of 7 million dollars a day, had to close 21 factories and
make 74,000 workers redundant in the USA and Canada.
Their complacency and inability to grasp new thinking had
brought them to the edge of collapse.

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NEW MODELS
The "old" management hero was a Lone Ranger figure who,
on hearing of trouble, rode into town on his horse and
quickly took control. With masterly ease, he alone outwitted
the enemy. He then turned on his heels and with a wave of
his hand, was gone, leaving an admiring and grateful town
behind him.
Unfortunately, in riding to the rescue every time the
townspeople had trouble, the Lone Ranger created a myth
of his own invincibility and forced the townsfolk to become
dependent on him.
The "new" management model gets people to sort their
own troubles out and to believe in their own abilities. The
new manager leads invisibly through the team.

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ANACHRONISMS
This is how Robert Townsend describes old forms of
leadership:
"Let me state a basic old form of leadership. This
anachronism is the person who in effect says to his
organisation:
"I order all of you insignificant little people to come to work
excited, energetic and creative and to accomplish impossible
tasks, so that I may become rich and famous and live a
luxurious life travelling around the world and building a
house on the Riviera and playing golf with other important
people like myself.
By the way, I want you to park in the outer lot and slog
through the snow past the empty parking space with my
name on it and I also want you to pay for your coffee while I
get mine free, served on fine china". "

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MACHO MANAGEMENT
Macho management is a way to describe a style of
management which made workers dependent on strong
leaders. It contrasts with new styles of leadership which
encourage workers to be dependent on themselves.
Macho management is...hard; forceful; bottom-line; profit-
orientated; hierarchical; unbending; simplistic; disciplined;
harsh; against people; like iron.
The new style is...soft; gentle; responsive; multi-
dimensional; yielding; a reflection of life; flexible;
paradoxical; complex; hard to grasp; working with people;
like water.

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FLEXIBLE AND ADAPTABLE
The new models of leadership which focus on the human
side of enterprise are models of flexibility and adaptability.
Rosabeth Moss Kanter describes them in one way in the
title of her book "When Elephants Learn to Dance". They
have the power of elephants and the nimbleness of dancers.
Another metaphor Kanter uses is that of the business
athlete: nimble, fit, agile, strong, alert, well-trained.
English psychologist, Mark Brown, uses yet another
metaphor when he describes the change in management
models as one from dinosaurs to dolphins. Dolphins are
free-spirited, sleek, elegant, at ease with themselves and
happy, as opposed to dinosaurs which were too big, too
slow, too cumbersome, and too powerful to adapt to
change.

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A TIME TO ACT?
Many of the calls for new styles of management arise out of
an urgent need to act. The old styles were suitable for
climates of stability but are no longer adequate in times of
global competition, in which other organisations use styles
of management that use all the abilities of their people.
"We in the East are going to win and the West is going to
lose out: there's nothing much you can do about it, because
the reasons for your failure are within yourselves. Your firms
are built on the Taylor model: even worse, so are your
heads. With your bosses doing the thinking, while the
workers wield the screwdrivers, you're convinced deep
down that this is the right way to run a business. We are
beyond the Taylor model; businesses, we know, are now so
complex and difficult that their continued existence
depends on the day-to-day mobilization of every ounce of
intelligence." (Konosuke Matsushita)

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A TIME TO EMPOWER?
At the beginning of the reign of "old" style management,
managers took away from employees their rights to make
decisions about their jobs. Instead the powers of employees
were either given to level upon level of managers and
supervisors, or handed over to machines.
Now, as competition forces organisations to become leaner,
fitter, and more resourceful, the levels of unnecessary
management are being removed. The power to decide
about one's own work - a power of skilled people since
work began - is returning to the people.
Writer Jim Clemmer says that ordinary employees become
their own leaders when they understand that customer
service depends on good customer service, when they
realise they can communicate as well as anybody else, and
when they learn how to manage change.

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WELL-LED BUSINESSES
The effect of well-led businesses on the bottom line is borne
out in a survey conducted by the Department of Trade and
Industry's Innovation Unit at the University of Brighton. The
survey spoke to a range of leaders in a range of businesses.
All were in the top quartile of their sector.
The results which emerged showed that, despite the
diversity of the businesses, five principles were held in
common. These were:
1. business planning is shared by all staff
2. a high energy win-win culture is promoted
3. people were continually developed with an emphasis on
initiative, self-awareness and interpersonal skills
4. everyone worked in teams with leaders who were both in
the team but not clones of it
5. communication was three-way: up, down and across.

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A TIME FOR NEW DIRECTIONS?
Times of crisis, such as some would argue we now face, are
also times of opportunity. The word "crisis" comes from the
Greek word "krino" meaning "a point of decision", or fork in
the road. Hippocrates, the Greek physician, said that all
diseases reached a crisis, because it was on these days that
the physician could determine whether the patient would
die or survive.
"It is hard to let old beliefs go. They are familiar, we are
comfortable with them and have spent years building
systems and developing habits that depend on them. Like a
man who has worn eyeglasses so long that he forgets he has
them on, we forget that the world looks to us the way it
does because we have become used to seeing it that way
through a particular set of lenses. Today, however, we need
new lenses. And we need to throw the old ones away."
(Kenichi Ohmae)

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THAT’S
IT!
WELL DONE!

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MTL Course Topics
THANK YOU
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Models of Management

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