Management and Leadership in OrganizationsYTP 111 :Management and Leadership in OrganizationsYTP 111 Basic Ideas of Management and Leadership Lecture 2 16th February, 2005


Basic Functions of Management (Administration), Classical model :Basic Functions of Management (Administration), Classical model Planning Controlling Organizing Commanding Environment Phases in theory Phases in practice


Fayol early 1900’s; Gulick 1930’s :Fayol early 1900’s; Gulick 1930’s POC3 = planning, organizing, commanding, coordinating, controlling POSDCORB = planning, organizing, staffing, directing, coordinating, reporting, budgeting


Layers of Management :Layers of Management Operative management coordination and control of direct work Business operations management competition, markets, resources Strategic management long term planning, visions, ’reading’ the environment Institutional management legitimating, society, ’lobbying’


Organization Hierarchy :Organization Hierarchy Operative management close to the actual processes short time range of planning Middle management and experts development of their units and coordination between other same level units plant managers, region managers, business unit managers middle time range of planning


Organization Hierarchy :Organization Hierarchy Top management strategic planning overall development and coordination of organization long time range of planning


Mintzberg (1975): The Roles of Management :Mintzberg (1975): The Roles of Management Roles in interaction Head of an organization Leader Center of communication Communicative roles Surveillant Information sharer Spokesperson


Mintzberg (1975): The Roles of Management :Mintzberg (1975): The Roles of Management Roles in decision making Entrepreneur Problem solver Resource allocator Negotiator


Three basic competences, Katz (1955) :Three basic competences, Katz (1955) Technical skills Interpersonal skills Conceptual skills


Three basic competences, Katz (1955) :Three basic competences, Katz (1955) Level of management Technical skills Interpersonal skills Conceptual skills


The Skill Approach :The Skill Approach Katz: skills are learned, not inherited Griffin (2000): Diagnostic skills to define problems correctly and find correct solutions Decision making skills competence to understand the organization competence to make decisions when all information is not available Time management


Covey (1989): Seven Habits of Highly Effective People :Covey (1989): Seven Habits of Highly Effective People Be proactive Begin with the end in mind Put first things first Think win-win Seek to understand and then to be understood Synergize Sharpen the saw


Organizational Behavior Management OBM :Organizational Behavior Management OBM Leadership of individuals Values, attitudes, motivation, learning Leadership of groups Group dynamics, teams Leadership of organizations Organization cultures, organization design Leadership of OB processes Decision making, communication, power, politics, conflicts, negotiations Leadership of organizational dynamics Organization change, stress, innovations, development


The Different Views of Leadership :The Different Views of Leadership Trait definition of leadership Process definition of leadership Leader Leader Followers Followers Leadership Leadership Height Intelligence Extroversion Fluency Other traits Interaction


Functions of Management Versus Leadership 1/2 :Functions of Management Versus Leadership 1/2 Management produces Order and Consistency Planning / Budgeting Establish agendas Set time tables Allocate resources Organizing / Staffing Provide structure Make job placements Establish rules and procedures Leadership produces Change and Movement Establishing Direction Create a vision Clarify big picture Set strategies Aligning People Communicate goals Seek commitment Build teams and coalitions


Functions of Management Versus Leadership 2/2 :Functions of Management Versus Leadership 2/2 Management Controlling / Problem Solving Develop incentives Generate creative solutions Take corrective action Leadership Motivating and Inspiring Inspire and energize Empower subordinates Satisfy unmet needs John P. Kotter 1990


Controlling: Elements of a Control System :Controlling: Elements of a Control System A Detector or sensor a device that measures what is actually happening in the process An Assessor a device that determines the significance of what is actually happening by comparing it with some standard or expectation of what should happen


Controlling: Elements of a Control System :Controlling: Elements of a Control System An Effector a device that alters behavior if the assessor indicates the need to do so A Communications Network devices that transmit information between the elements


Controlling: Elements of a Control System :Controlling: Elements of a Control System Control device Entity being controlled Detector Information what is happening 2. Assessor Comparison with standard 3. Effector Behavior alteration, if needed


Relationships Among Planning and Control Functions :Relationships Among Planning and Control Functions Strategy Formulation Management Control Task Control Goals, strategies, policies Implementation of strategies Efficient and effective performance of individual tasks


The Management Control (MC) is not Simple :The Management Control (MC) is not Simple The standard is not present MC is not automatic MC requires coordination among individuals The connection from perceiving the need for action to determining the action required to obtain the desired result may not be clear Much MC is self-control


Trait Approach :Trait Approach One of the first systematic attempts to study leadership Traits were studied to determine what made certain people great leaders “Great man” theories (Gandhi, Lincoln, Napoleon) Belief that people were born with these traits and only the great people possessed them


Trait Approach :Trait Approach Specific traits that differentiated leaders from followers Stogdill (1948): no consistent set of traits differentiated leaders from non-leaders across a variety of situations An individual who was a leader in one situation might not be a leader in another situation Leadership was re-conceptualized as a relationship between people in a social situation


Major Leadership Traits :Major Leadership Traits Intelligence verbal ability, perceptual ability, reasoning not IQ Self-confidence self-esteem, self-assurance, can make a difference leadership involves influencing others Determination desire to get the job done initiative, persistence, dominance, drive


Major Leadership Traits :Major Leadership Traits Integrity honesty, trustworthiness organizational trust Sociability pleasant social relationships friendly, outgoing, courteous, tactful, diplomatic


Trait Approach :Trait Approach Focuses exclusively on the leader Certain set of traits vs. effective leadership Mean of personal development Criticisms: too much traits, situations, too subjective determinations of the most important traits (self-help books), teaching traits is a difficult process


Skills Approach :Skills Approach Definition: the ability to use one’s knowledge and competencies to accomplish a set of goals or objectives Katz: the things, the people, the concepts


Skills Model of Leadership :Skills Model of Leadership INDIVIDUAL ATTRIBUTES COMPETENCIES LEADERSHIP OUTCOMES General Cognitive Abilities Crystallized Cognitive Abilities Motivation Personality Problem Solving Skills Social Judgment Skills Knowledge Effective Problem Solving and Performance Career Experiences Environmental Influences


Skills Model of Leadership :Skills Model of Leadership Problem solving skills creative ability to solve new and unusual, ill-defined organizational problems Social judgment skills capacity to understand people and social systems perspective taking, social perceptiveness, behavioral flexibility, social performance


Skills Model of Leadership :Skills Model of Leadership Knowledge accumulation of information and the mental structures used to organize that information semantic innovation


Skills Model of Leadership :Skills Model of Leadership General cognitive ability perceptual processing, information processing, general reasoning skills, creative and divergent thinking capacities and memory skills intelligence, often linked to biology Crystallized cognitive ability intellectual ability that is learned or acquired over time


Skills Model of Leadership :Skills Model of Leadership Motivation must be willing and motivated to tackle complex organizational problems must be willing to express dominance must be committed to the social good of the organization Personality psychological trait theory vs. identity


Skills Model of Leadership :Skills Model of Leadership Effective problem solving the originality and the quality of expressed solutions to problem situations Performance the duties to which s/he has been assigned


Skills Model of Leadership :Skills Model of Leadership Career experiences challenging job assignments, mentoring, appropriate training, hands-on experience in solving new and unusual problems Environmental influences the level of skill of subordinates


Style Approach :Style Approach Emphasizes the behavior of leader Two kinds of behavior: task behaviors (help group members to achieve their goals) and relationship behaviors (help subordinates feel comfortable with themselves, with each other, and with the situation) Style studies since late 1940’s


Style Approach: The Leadership grid :Style Approach: The Leadership grid Concern for Results Concern for People Low Low High High Country Club Management Team Management Middle-of-the-Road Management Impoverished Management Authority- Compliance Management


Style Approach: The Leadership grid :Style Approach: The Leadership grid Authority-Compliance people are tools for getting the job done communication is for instructions Country Club Management personal and social needs of followers, positive climate Impoverished Management no commitment, apathetic


Style Approach: The Leadership grid :Style Approach: The Leadership grid Middle-of-the-Road Management compromisers, avoid conflicts, emphasize moderate levels of production Team Management stimulate participation, acts determined, makes priorities clear, behaves open-mindedly Paternalism/Maternalism Opportunism


Situational Approach :Situational Approach Developed by Hersey & Blanchard 1969 Different situations demand different kinds of leadership Being an effective leader requires that an individual adapt her/his style to the demands of different situations Directive and supportive dimension


Situational Leadership, Four Styles :Situational Leadership, Four Styles Supportive Behaviour ’Relationships’ Directive Behaviour ’Task’ High High Low Low Delegating Supporting Coaching Directing


Situational Leadership, Four Styles :Situational Leadership, Four Styles Directing communication focused on goal achievement, careful supervising of instructions Coaching encouragement and soliciting subordinate input, leader makes the final decision


Situational Leadership, Four Styles :Situational Leadership, Four Styles Supporting brings out the the employee’s skills around the task, subordinates control for day-to-day decisions listening, praising, asking for input, giving feedback Delegating low level of involvement in planning, control of details, goal clarification leaves the responsibility to subordinates


Development Level of Followers :Development Level of Followers Developed Developing High Moderate Low D4 D3 D2 D1


Development Level of Followers :Development Level of Followers D1: low competence and high commitment D2: some competence but low commitment D3: moderate to high competence but may lack commitment D4: high competence and high commitment


Development Level of Followers :Development Level of Followers Effective leader is able to diagnose where the subordinates are on the developmental continuum and adapt her/his style to it


Situational Leadership :Situational Leadership Strengths practical: easy to understand and apply prescriptive: tells what to do or what to do not in various situations leader’s flexibility: employees and leading styles differ from situation to situation Criticisms leader’s styles and employee’s development level do not always match, there exist other factors too


Transformational Leadership :Transformational Leadership Since late 1970’s Part of the ’New leadership’ paradigm Attention to the charismatic and affective elements of leadership A process that changes and transforms individuals Emotions, values, ethics, standards, long-term goals Incorporates charismatic and visionary leadership


Transformational Leadership :Transformational Leadership Burns (1978): transactional leadership (focus on the exchanges that occur between leaders and their followers) transformational leadership (an individual engages with others and creates a connection that raises the level of motivation and morality in both the leader and the follower)


Transformational Leadership and Charisma :Transformational Leadership and Charisma Charisma: a special personality characteristic that gives a person superhuman or exceptional powers and is reserved for a few, is of divine origin, and results in the person being treated as a leader Being dominant, strong desire to influence others, self-confidence, strong sense of moral values, strong role models


Transformational Leadership and Charisma :Transformational Leadership and Charisma Personality Characteristics Behaviours Effects on Followers Dominant Desire to influence Confident Strong values Sets strong role model Shows competence Articulate goals Communicates high expectations Express confidence Arouse motives Trust in leader’s ideology Belief similarity between leader and follower Unquestioning acceptance Obedience Identification with leader Emotional involvement, heightened goals, increased confidence


Transformational Leadership Factors :Transformational Leadership Factors TRANSFORMATIONAL LEADERSHIP TRANSACTIONAL LEADERSHIP LAISSEZ-FAIRE LEADERSHIP Factor 1 Idealized influence Charisma Factor 2 Inspirational motivation Factor 3 Intellectual stimulation Factor 4 Individualized consideration Factor 5 Contingent reward Constructive transactions Factor 6 Management by exception, active and passive Corrective transactions Factor 7 Laissez-faire Nontransactional (absence of leadership)


Miniature essay #2 :Miniature essay #2 Team Management/Leadership