Role of management and leadership

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Role of management and leadership
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Management

• Writers who consider the functions performed by
  management
• Frederick Taylor
• Henri Fayol
• Peter Drucker
• Henry Mintzberg

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Federick Taylor

• Early 20th century
• Management of work task
• Rationality ? scientific principles to work
  management ? Most efficient way of working
• Scientific management ?
• Efficiency
• Standardization
• Discipline

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• Principle of division between managerial and work
  roles
• Principle of standardization and specialization
• Principle of division of labor and efficiency
• These principles still remain significant

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• Taylors work ? preceded the adoption of mass
  production techniques
• Little systematic research
• Workers believed that increasing in productivity
  ? job losses ? took advantage of poor management
  controls to slow down productivity

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• Many modern orgs (with similar outputs with
  continuous process) still adopt Taylor-like
  principles to increase productivity
• Taylors work is now taken for granted and
  rejected by a more human or social
  considerations

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Henri Fayol

• Did not invent the concept of management
• BUT
• He distinguish management from other
  organizational activity
• He outlined the prime functions of a manager
• Normative and prescriptive model
• Indicates how managers should conduct their
  activity (in order to achieve efficiency
• Functions of management

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Functions of management

• Plan and forecast ? prepare a series of actions
  to enable the organization to meet its objectives
  in the future
• Organize ? to fulfill the administrative
  principles embraced by Fayol
• Coordinate ? to ensure that resources, actions
  and outputs are coordinated to achieve desire
  outcomes
• Command ? to give direction to employees
• Control ? to ensure that activities are in
  accordance with the plan/ that orders are
  followed/ that principles of management applied

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Fayols 14 principles of management
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• Challenged by modern development of organizations
• Unity of command vs matrix organization
• Fayols principles vs Teamworking, flatter
  hierarchies, professional control, flexible
  working

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Peter Drucker

• Describe and comment upon what manager do
• Prescriptive analysis of the management role
• Three broad tasks of managers
• Satisfying the goals or mission f the
  organization
• Enabling the worker to achieve and focus on
  productivity
• Managing social responsibilities
• Managers are required to 1) set objectives 2)
  organize 3) motivate and communicate 4) measure
  and develop people

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Drucker vs previous works

• More concern about human and interpersonal issues
• Recognize importance of communications and social
  concerns

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Henry Mintzberg

• Detailed observations of what managers actually
  did (not prescriptive myths of modern
  management)
• In reality ? managers did not spend most of their
  time planning, organizing, coordinating,
  commanding and controlling

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10 roles that managers do
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Mintzbergs sequence of activity in the pursuit
of objectives
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• Interpersonal ? managers internally build
  relationships with employees and network with
  other depts.
• Information ? collect info and act as
  spokesperson for the group ? develop stable
  relationships ? quality information
• Decisional ? decision making, setting objectives,
  resource allocation

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• Typical managers day
• Frequent interruptions for brief conversation by
  phone, in person, email ? to keep managers
  informed
• Rosabeth Moss, Tom Peter, Henry Mintzberg
• Focus on strategic perspective on management
• Importance of mission and vision
• Customer oriented values
• Paint a picture of the conditions necessary for
  organizational success

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Leadership and management

• Manager ? performs functions in orgs and hold a
  particular, formal, title and/or fulfill a role
• Marketing manager ? marketing of a product
• Personnel manager ? recruitment and selection of
  staff
• Have a title, a role, a series of functions to
  perform, management of subordinates, management
  of financial resource
• Planning, organizing, coordinating, commanding,
  controlling the activities of staff

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• Leaders ? aim to influence and guide others into
  pursuing particular objectives or visions of the
  future and to stimulate them into wanting to
  follow
• Demonstrates the power of one individual over
  others
• Leadership is not necessarily related to
  hierarchical position (authority) as managers
  tend to be ? informal leaders
• Leadership dynamic activity concerning more
  with changing attitudes, inspiration, emotional
  input than management

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• Managers may show leadership qualities on
  particular occasions
• Mintzberg includes the leader role as one of his
  ten roles of management
• Handy (1993), Watson (1983), Kotter (1990) ?
  leadership is merely part of the broader role of
  management

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Leadership

• General definition (Lundstedt 1965)
• ? leadership involves influencing the behavior
  of others in any group or organization, setting
  goals, formulating paths to those goals, and
  creating social norms in the group

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• Definition of leadership ? two common elements
• Group phenomenon ? 2 or more people must be
  involved
• Influence process

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• Influence
• ? flow from leaders to followers
• ? Followers grant the leadership role
  to leader
• ? leaders rallying people together and
  motivating them to achieve some common goals

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• Leader as Symbol ? move the group toward set
  goals in a definite manner
• The Uniqueness of leadership roles
• The achievement of Leadership Positions
• Influence, Power, Authority in leadership

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Influence Tactics (Yukl 1994)

• Rational Persuasion
• Inspirational Appeals
• Consultation
• Ingratiation
• Personal Appeals
• Exchange
• Coalition Tactics
• Legitimating Tactics
• Pressure

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• Authority ? rational basis of power
• Rational side of org ? what an org should do
  according to the official, formal dictates of org
• Political side of organization ? what
  organizations actually do

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Authority

• the rationally based formal right to make
  decisions and influence behavior to implement
  decisions based on formal organizational
  relationships
• 2 subrights The right to decide
• The right to issue appropriate implementing
  instructions or directions
• Rights are determined by obligation
• Obligation (responsibility) determine the nature
  of the right (authority) ? balanced

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• Authority a right determined by an obligation
• Authority is solely associated with formal org,
  with formal sanction or approval from society

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Forms of authority

• Managerial authority
• Staff authority
• Situational authority
• Operative authority

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Managerial Authority

• Managers are responsible for acquiring,
  deploying, controlling resources needed to
  accomplish objectives
• Rights to choose among alternatives
• The right to enforce those choices based on
  official position
• Principle of parity of authority and
  responsibility ? Balance between responsibility
  authority

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Staff Authority

• Suggestions recommendations about the solutions
  to problems, procedure, or improvements
• Right to recommend
• Right to suggest
• Right to advise
• Right to attempt to exert influence to gain
  acceptance for ideas
• Ex. TQM, suggestion boxes, employee empowerment,
  decentralizing org.

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Situational Authority

• Hybrid authority
• Contains both managerial and staff authority
• Delegated by managers to a staff expert

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Operative Authority

• All members have this authority
• ? make certain decisions about how, in what
  order, which tools they carry out their tasks
• ? right to work without undue supervision

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Power

• the ability to impose ones will on others
• the ability of one person to affect the
  behavior of someone else in a desired way
• Based on factors such as knowledge, authority,
  information, personality, resource control

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• Authority ? simple power associated with formal
  organization
• Power ? influence that does not necessarily
  depend on formal organizational recognition
• Example

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Two Perspectives on Power

• The French and Raven Power Typology ? individual
  bases of power
• Dependency, Critical Contingencies, and Power ?
  how individuals, groups, or departments gain
  power through dependency relationships

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French Raven Power Typology

• Sources potency of power in org
• Rational/legal power
• Reward Power
• Coercive power
• Referent power
• Charismatic power
• Expert power

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Dependency, Critical Contingencies, and Power

• Power through control of resources
• Power through solving critical or strategic
  contingencies
• Level of substitutability
• Power and location in the org
• Power and position in the org

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How to assess power ?

• Determine by sources or origin of power ?
  judgment about how much of particular power a
  person/department possesses
• Determine by consequences of decisions made by
  various actors
• Determine by power symbols ? larger office,
  luxurious furniture, more expensive company cars
• Representational indicators of power ?
  memberships on influential boards or committees

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Three levels of leadership

• Executive
• Managerial
• Supervisory
• Informal leadership
• Three major theories
• Leadership organization theory

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• Executives
• ? establish bureaus structure (including
  positions filled by managers and supervisors
• ? maintain general view of the bureau and its
  place within political envi
• ? Interpret political statements of intentions
  (unclear contradictory) into rational goals
  policies
• ? Create environment that encourage goal
  achievement
• ? close attention to org environment (take
  advantage of opportunity protect org from
  threats

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• manager
• ? depend on rules regulations that define their
  power over others
• ? interpret org goals (set by executives) in
  concrete manner (into structure, procedure, tasks
• ? often pulled by superiors subordinates
• ? focus on how org can be best organized to
  achieve the overall goals established by
  executives

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• Supervisor
• ? focus on motivation, productivity,
  interpersonal relations
• ? work directly with production process
• ? protect subordinates from political pressure

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• Informal leadership
• ? have no official leadership positions
• ? need to understand informal leadership
  phenomenon along with formal one

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Executive leadership

• Most important ? influence ? skillful playing of
  political game ? power
• Administrative conservators
• Preserve institution
• Improve institution
• what is political climate?
• what is the resource base?
• what is the potential for mobilizing support for
  the program?

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The Managers

• in the middle
• Traits (Stogdill 1981)
• Capacity? intelligence, alertness, verbal
  facility, originality, judgment
• Achievement ? scholarship, knowledge
• Responsibility ?dependability, initiative,
  persistence, aggressiveness, self-confidence
• Participation ? activity, sociability,
  cooperation, adaptability, humor
• Status ? Socioeconomic position, popularity
• Situation ? mental level, status, skills, needs
  and interests of followers, objectives to be
  achieved

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The Supervisors

• getting the work done
• Three major focuses
• Production
• Maintenance of individual morale
• Maintenance of group cohesiveness

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• Supervisory behavior (Bass 1990)
• Consideration ? extent to which a leader shows
  concern for the welfare of the other members of
  the group, appreciation of good work, stress
  importance of job satisfaction
• Initiation of structure ? extent to which a
  leader initiates activities in the group,
  organizes it, defines the way work is to be
  done

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Leadership School of thought

• Three broad schools
• Trait Theories
• 20th century ? focus on personal characteristics
  of leaders
• Partial explanation/superficial perspective on
  leadership issues
• Behavioral theories
• Focus on behaviors of leaders including styles of
  leadership
• Non-context specific
• Situational theories
• Focus on the leader in the context or situation
  in which he/she leads
• Add richness to the study of leadership

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Trait Theories

• Individuals ability to lead
• social background, intelligence, other
  personality features
• Bennis and Nanus (1985) ? relationship bt
  leadership effectiveness and the traits (logical
  thinking, persistence, empowerment, self-control)

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• Logical thinking
• Ability to translate ideas into simple forms
• Persuasive abilities
• Explaining phenomena in unique ways
• Persistence traits
• Considering setbacks as minor mistakes
• Working long hours
• Attempting to succeed against the odds

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• Empowerment traits
• Enthusing people about their goals
• Being enthusiastic and energetic oneself
• Increasing confidence in employees own abilities
• Self-control traits
• Working under pressure
• Remaining calm and even-tempered
• Resisting intimidation

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• Other research ? meta-analytical work ? bring
  findings from separate research projects together
  (ex Kirkpatrick Locke 1991) ? list of
  leadership qualities ? disagreement, less
  insights, try to relate two or more unrelated
  variables

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Behavioral Theories

• Examines leadership behavior (that have
  influences the performance and motivation of
  subordinates)
• Focus on leadership style

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• Ohio State University research (1940s and 1950s)
• Two fundamental types of leader behaviors
• Initiating structure
• Consideration
• Initiating structure ? behavior which focuses on
  the achievement of objectives and includes clear
  supervision and role clarification, planning
  work, and a results orientation
• Consideration ? behaviors which encourage
  collaboration and focus on supportive networks,
  group welfare and the maintenance of job
  satisfaction

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• University of Michigan
• Leaders exhibited
• Employee centered (people orientation)
• Production centered (task orientation)
• One best style of leadership
• Leader who exhibits high initiating structure and
  high consideration behaviors (strong orientation
  of both task and people)

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• Leadership style
• the behavior of leaders towards subordinates,
  the manner in which tasks and functions of
  leadership are conducted
• Tannenbaum Schmidt (1973)
• Continuum in leadership styles
• boss-centered approach --- subordinate-centered
  approach

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Simple style continuum
Leaders style can be mapped along a continuum
between the authoritarian and democratic ends
Criticism Only one dimension
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• Join ? leader define problem, but leave it open
  for alternative problem definitions to arise ?
  and for the scope of the endeavor to expand ?
  become member of the problem-solving group and
  hands over decision making power to the group
• Consults ? leader identifies the problem and
  makes decision (only after listening and possibly
  adopting solutions suggested
• Sells ? manager decides on the solution to the
  problem ? persuades staff that his/her decision
  is more valid
• Tells ? leader identifies problem, decides on
  solution, expect staffs to implement such
  decisions without questioning

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• Leaders decisions will always be influenced by
  the situation they find themselves
• Contextual factors
• Group effectiveness
• Nature of task environment
• Pressures of time
• Forces in subordinate ? Subordinates level of
  experience and the style to which they are
  accustomed
• Forces in the leader ? knowledge and preferred
  style

Combine to determine the most appropriate
leadership style
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Choosing an appropriate style

• Leader consider
• their own value system and leadership inclination
• Level of confidence they have in their
  subordinates
• Subordinates ability to cope with uncertainties
  of the situation
• Evaluate the nature and experience of their
  subordinates
• Subordinates readiness to assume responsibility
• Subordinates knowledge and interest

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• John Adair
• Action-centered leadership ? 3 areas of need
  which leader must satisfy
• Task needs
• Individual needs
• Team maintenance needs

HIGHLY EFFECTIVE LEADER
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• Conclude 4 broad leadership style
• Task/structure orientation
• People/interpersonal orientation
• Directive/autocratic leadership
• Participative/democratic leadership

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McGregors Theory X and Theory Y
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• McGregors Theory X and Theory Y
• Leader and managers could be differentiated from
  one another according to their attitudes and
  assumptions about human nature
• Theory X leader ? believe people are lazy, dont
  want responsibility, no ambition ? they need to
  be controlled, directed, coerced and punished
  (Maslows hierarchy of need 1 and 2)
• Theory Y leader ? believe people align themselves
  with org goals ? need little control or
  direction, seek reward consistent with their
  performance, have initiative and creative skills
  ? motivated by affiliation, esteem, and self
  actualization (Maslows 3,4,5)

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• Blake Mouton (1964) ? managers style can be
  mapped along
• Degree of People orientation
• Degree of Production orientation
• High people High Production ? desirable

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• Trait ? what a leader is
• Behavioral ? what a leader does
• Criticism ?
• high task (structure) high people
  (consideration)
• high performance
• reality is more complicated leadership might
  be both cause and effect
• ignore the context or situation in which
  leaders and followers find themselves

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Situational Theories
Trait (T)

more complex and more promising explanation of
leadership
Behavioral (B)

Context (C) Contingent factor
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Fiedlers Contingency Theory
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• leadership behavior interacts with the
  favorableness of a situation to determine
  effectiveness
• Some situations are more favorable than others ?
  require different behaviors
• Require the assessment of
• Leaders style
• Three broad characteristics of the context
  (situation)
• Leader-group member relations ? nature of work
  atmosphere ? loyalty, trust, etc
• Task structure ? clarity of groups work,
  understanding of groups goals
• Position power ? a leaders legitimate power to
  tell others what to do

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• Leadership style
• Relationship-centered leader is motivated to
  maintain good interpersonal relations
• Task-centered leader is motivated to get on with
  the job
• Leaders indicate their orientation toward their
• least-preferred co-worker (LPC)
• Accepting LPC relationship-orientated
• Look at LPC as few qualities task-orientated

Leaders personality trait or Leaders
motivational pattern
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• Task orientation ? suits highly favorable or
  highly unfavorable situations
• Highly unfavorable situation ? ex. Military
  dangerous task to perform (face with enemy in
  unfamiliar territory unstructured task with
  strong position power ? adopt task orientated
  approach (giving clear orders and demand
  compliance)
• Highly favorable situation ? ex. Managers enjoy
  good relations with workers ? clearly structured
  task (not much debate or no decision-making
  ability is required) ? adopt task oriented
  approach to ensure high productivity

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• Relationship orientation
• Best suit to average situational favorability
• Org should not focus on attempt to change
  leaders personality ? BUT should select leaders
  to match the situations favorability

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Houses path-goal theory

• It is a leaders function to clarify pathways for
  subordinates to achieve their desired rewards ?
  their motivation increase
• Leader provides rewards and clarifies pathway
  between
• Employee effort and performance
• Performance and reward

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Path-Goal Theory of Leadership

• Effective leaders increase motivation and
  satisfaction among subordinates when they help
  them pursue important goals
• Leaders help subordinates to see the goals
• The paths to achieve those goals
• How to follow those paths effectively
• Show the values of outcomes
• Using appropriate coaching and directing
• Removing barriers and frustrations to those paths

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• Directive behaviors planning, setting
  expectations and clarifying instructions
• Supportive behaviors offering friendly
  consideration
• Participative behaviors involving subordinates
  in decision making
• Achievement-orientated behaviors setting
  objectives and expecting them to be achieved

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• Directive leadership
• ? good for ambiguous task
• ? bad when task is well structured and clear
• Supportive leadership
• ? good when tasks are frustrating and stressful
• ? bad when groups or other parts of org already
  provide plenty of encouragement
• Achievement-oriented leadership
• ? good for tasks toward ambitious goals
• Participative leadership
• ? good for ambiguous task that subordinates
  feel their self-esteem is at stake
• ? participation allows them to influence
  decisions and work out solutions

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Vroom and Yetton Contingency Model

• Develop a decision-making leadership contingency
  model
• Three leadership styles
• Autocratic
• ? decision or problem solving, using information
  available to leader at the time
• ? leader collects information and then makes
  decision/solves the problem
• Consultative
• ? leader shares the problem with subordinates
  individually or as a group and then leader makes
  decision
• Group
• ? leader shares the problem with the group and
  together they find solution or consensus

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Leader-Member Exchange Theory (LMX)

• Dyadic relationships
• between a leader and individual subordinates
• On development of low-exchange and hi-exchange
  relationships
• Low-exchange relationships
• ? little mutual influence between the leader and
  subordinate
• ? subordinate follows formal role requirements
• ? receive standard benefit (salary)
• High exchange relationships
• ? leader establishes with a set of trusted
  subordinates
• ? mutual influence relations
• ? subordinates receive benefits in the form of
  more interesting assignments and participation in
  important decisions
• ? leaders expectation of hard work, loyalty,
  more responsibility

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Transformational Leadership

• Transactional Leadership
• Motivate followers by recognizing their needs and
  providing rewards to fulfill those needs in
  exchange for their performance
• Transformational Leadership
• Raise followers goals to higher level goals ?
  self actualization (Maslow)
• Motivate followers to transcend their own narrow
  self-interest for the benefit of the community or
  the nation (MLK Jr.)

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Transformational behaviors

• Idealized influence
• Arouses followers emotional attachment to the
  leader and identification with him/her
• Intellectual stimulation
• Engages followers in recognizing and confronting
  challenges
• Individualized consideration
• Provides support, encouragement and coaching
• Inspirational motivation
• Communicates an appealing vision by using symbols
  or modeling appropriate behaviors

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Transactional Behaviors

• Contingent reward
• Clarifying the work required for rewards
• Ensuring that rewards are contingent on
  appropriate behaviors
• Passive management by exception
• Punishments in response to obvious deviations
  from acceptable standards
• Active management by exception
• Looking for mistakes and enforcing rules to avoid
  mistakes

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Leading Managing(Bennis and Nanus)

• Managing
• Taking charge, accomplishing goals with
  efficiency
• doing things right
• Leading
• Guiding directions, actions, opinions
• doing the right thing

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Excellent leader

• Attention through vision
• Create visions of successful futures
• Bring out the best of both leaders and followers
• Meaning through communication
• Transmit the vision to others through giving
  meaning to their works and their quest
• Trust through positioning
• Choosing the best course
• At knowing what is right and neccessary