Lecture 2

MBA Organisational BehaviourMBA Organisational Behaviour
Lecture 2Lecture 2
Management andManagement and
Leadership in theLeadership in the
organisationorganisation

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 6.2
Last week we covered…
• Definition of organisational behaviourDefinition of organisational behaviour
• Influences on behaviour in organisationsInfluences on behaviour in organisations
• Management as an integrating activityManagement as an integrating activity
• The new psychological contractThe new psychological contract
• The importance of culture to the study of OBThe importance of culture to the study of OB
• Changing work practices & the complexity ofChanging work practices & the complexity of
globalisationglobalisation

Objectives this week
• The emergence, nature and role ofThe emergence, nature and role of
management.management.
• Elements of management.Elements of management.
• Factors affecting the work of managers.Factors affecting the work of managers.
• The nature of leadership.The nature of leadership.
• Leadership styles within the organisation.Leadership styles within the organisation.
• Difference between management andDifference between management and
leadership.leadership.

OHT 6.4
Approaches to studyingApproaches to studying
organisations & managementorganisations & management
• ClassicalClassical
• Human RelationsHuman Relations
• SystemsSystems
• ContingencyContingency

OHT 6.5
Classical ApproachClassical Approach
• ClassicalClassical (Taylor)(Taylor)
– Emphasis on purpose, structure & taskEmphasis on purpose, structure & task
– TraditionalTraditional
– Rational & logicalRational & logical
– Formal / hierarchical / functionalFormal / hierarchical / functional
– Productivity focussed e.g. time & motionProductivity focussed e.g. time & motion

OHT 6.6
Relevance of Taylors work?Relevance of Taylors work?
• Developing countries?Developing countries?
• Review of developed working practices?Review of developed working practices?
– Task simplificationTask simplification
– Improved efficiencyImproved efficiency
– Removal of supervisory levelsRemoval of supervisory levels
– Success stories = Ford; steel productionSuccess stories = Ford; steel production

OHT 6.7
Criticisms of Classical approachCriticisms of Classical approach
• DehumanisingDehumanising
• Productivity drivenProductivity driven
• Human interaction has no partHuman interaction has no part
• Assumes money is the prime motivatorAssumes money is the prime motivator
• Confrontational & impersonalConfrontational & impersonal
• Rigid ‘bureaucratic’ & inflexibleRigid ‘bureaucratic’ & inflexible

OHT 6.8
Human Relations ApproachHuman Relations Approach
• Human Relations ApproachHuman Relations Approach
– The Hawthorne experiments WesternThe Hawthorne experiments Western
electric co. (1924-32)electric co. (1924-32)
• Increased mgt attention = increasedIncreased mgt attention = increased
productivityproductivity
• Norms fixed performance belowNorms fixed performance below
achievable levels within groupsachievable levels within groups

OHT 6.9
Human Relations Approach…Human Relations Approach…
• Considers importance ofConsiders importance of
– Work groupsWork groups
– Leadership (formal & informal)Leadership (formal & informal)
– Communication / interactionsCommunication / interactions
– MotivationMotivation
– Job designJob design
– Mgt behaviour on outputsMgt behaviour on outputs
– Psychological & social needsPsychological & social needs

OHT 6.10
Human Relations Approach cont.Human Relations Approach cont.
• Proves the existence of informalProves the existence of informal
organisations within formal structuresorganisations within formal structures
• Not just about moneyNot just about money
• Group values & norms influence individualGroup values & norms influence individual
behaviourbehaviour
• Began psychological orientation studies &Began psychological orientation studies &
theory e.g. Maslowtheory e.g. Maslow

OHT 6.11
Systems ApproachSystems Approach
• Reconciles classical and human relationsReconciles classical and human relations
theorytheory
• ‘‘total organisation’ theorytotal organisation’ theory
• Combines structure and behaviourCombines structure and behaviour
• Organisation is an ‘open system’Organisation is an ‘open system’
• Considers interdependent technical andConsiders interdependent technical and
social variablessocial variables
• Explains why tech efficiencies don’tExplains why tech efficiencies don’t
always increase output e.g. longwallalways increase output e.g. longwall
miningmining

OHT 6.12
Contingency ApproachContingency Approach
• Emphasises importance of structure onEmphasises importance of structure on
performanceperformance
• But considers task and environmentalBut considers task and environmental
influencersinfluencers
• Considers situation and context variablesConsiders situation and context variables

OHT 6.13
Org and Mgt analysis should be...Org and Mgt analysis should be...
• A combination of:A combination of:
– RoleRole
– RelationshipsRelationships
– StructureStructure
– ProcessProcess (Bowey)(Bowey)

OHT 6.14
PostmodernismPostmodernism
• Post modern organisations are:Post modern organisations are:
– Technologically determinedTechnologically determined
– Structurally flexibleStructurally flexible
– Niche basedNiche based
– MultiskilledMultiskilled
– Driven by complex relationsDriven by complex relations
– Flexible employment (e.g.. Contractors)Flexible employment (e.g.. Contractors)
(Clegg)(Clegg)

OHT 6.15
Relevance to OB?Relevance to OB?
• Demonstrates the complexity of OBDemonstrates the complexity of OB
• Provides a framework for examining orgs andProvides a framework for examining orgs and
mgt stylesmgt styles
• Helps identify problem areas (structure, humanHelps identify problem areas (structure, human
relations, socio-technical process)relations, socio-technical process)
• Can mix and match solutions depending on theCan mix and match solutions depending on the
problemproblem

OHT 6.16
The meaning of managementThe meaning of management
““It is active - it is about changing behaviour andIt is active - it is about changing behaviour and
making things happen”making things happen”
““It is an everyday activity involving interactionsIt is an everyday activity involving interactions
between people that are not unrelated orbetween people that are not unrelated or
entirely dissimilar to other spheres of life”entirely dissimilar to other spheres of life” WillmottWillmott

OHT 6.17
ManagementManagement
Can be regarded as exercising formal authority over theCan be regarded as exercising formal authority over the
action and performance of others. We can describeaction and performance of others. We can describe
management as:management as:
• taking place within a structured organisational settingtaking place within a structured organisational setting
and with prescribed rolesand with prescribed roles
• directed towards the attainment of aims and objectivesdirected towards the attainment of aims and objectives
• achieved through the efforts of other peopleachieved through the efforts of other people
• using systems and proceduresusing systems and procedures

OHT 6.18
What is management?What is management?
• A functionA function
• The people whoThe people who
discharge itdischarge it
• A social positionA social position
DruckerDrucker
• An authority
• A discipline
• A field of study

OHT 6.19
The emergence of managementThe emergence of management
Every achievement of management is the achievement ofEvery achievement of management is the achievement of
a manager.a manager.
Every failure is a failure of a manager.Every failure is a failure of a manager.
DruckerDrucker

OHT 6.20
Are managers born or made?Are managers born or made?
AnswerAnswer
A combination of bothA combination of both

OHT 6.21
Is management an art or a science?Is management an art or a science?
Management as an artManagement as an art – successful managers are– successful managers are
born with appropriate intuition, intelligence andborn with appropriate intuition, intelligence and
personality, which they develop through the practicepersonality, which they develop through the practice
of leadershipof leadership
Management as a scienceManagement as a science – successful managers– successful managers
have learned the appropriate body of knowledge &have learned the appropriate body of knowledge &
have developed an ability to apply acquired skills &have developed an ability to apply acquired skills &
techniquestechniques

OHT 6.22
Defining managementDefining management
Management is the process of achievingManagement is the process of achieving
organisational effectiveness within a changingorganisational effectiveness within a changing
environment by balancing efficiency,environment by balancing efficiency,
effectiveness and equity, obtaining the most fromeffectiveness and equity, obtaining the most from
limited resources, & working with & through otherlimited resources, & working with & through other
people.people.
NaylorNaylor

OHT 6.23
Elements of managementElements of management
• PlanningPlanning
• OrganisingOrganising
• CommandCommand
• Co-ordinationCo-ordination
• ControlControl BrechBrech
PlusPlus
• Discretion & intuition during executionDiscretion & intuition during execution
• Mgt permeates every area of a businessMgt permeates every area of a business

OHT 6.24
Tasks & contribution of a managerTasks & contribution of a manager
• Setting objectives (?)Setting objectives (?)
• Organising (?)Organising (?)
• Motivating & communicating (?)Motivating & communicating (?)
• Measuring (?)Measuring (?)
• Developing (?)Developing (?)
DruckerDrucker

OHT 6.25A summary of the essential nature of management workA summary of the essential nature of management workFigure 6.4

OHT 6.26
The efforts of other peopleThe efforts of other people
• Management can be defined as ‘getting workManagement can be defined as ‘getting work
done through the efforts of other people’done through the efforts of other people’
• Managers are judged not just on theirManagers are judged not just on their
performance but on the results achieved byperformance but on the results achieved by
subordinatessubordinates

OHT 6.27
What real managers do…What real managers do…
• Luthans 44 real manager studiesLuthans 44 real manager studies
– Communication 29%Communication 29%
– Trad’ mgt 32%(planning, decision making)Trad’ mgt 32%(planning, decision making)
– Networking 19%(inc politicking)Networking 19%(inc politicking)
– HRM 20% (motivating, discipline, conflict,HRM 20% (motivating, discipline, conflict,
staffing)staffing)

OHT 6.28
Challenge to managersChallenge to managers
• The efficiency and effectiveness of theirThe efficiency and effectiveness of their
operations (?)operations (?)
• The clarification of aims & objectives (?)The clarification of aims & objectives (?)
• The design of a suitable structure (?)The design of a suitable structure (?)
• Execution of essential admin functions (?)Execution of essential admin functions (?)

OHT 6.29
Factors influencing the work of managersFactors influencing the work of managers
• The nature of the organisation, its philosophy,The nature of the organisation, its philosophy,
objectives and sizeobjectives and size
• The type of structureThe type of structure
• Activities and tasks involvedActivities and tasks involved
• Technology and methods of performing workTechnology and methods of performing work
• The nature of people employedThe nature of people employed
• The level in the organisation at which the manager isThe level in the organisation at which the manager is
workingworking

OHT 6.30
The work of a manager – the environmental settingThe work of a manager – the environmental setting
Figure 6.5

OHT 6.31 The manager’s role - MintzbergThe manager’s role - Mintzberg

OHT 6.32
What great managers do…What great managers do…
Buckingham “an average manager see employees asBuckingham “an average manager see employees as
workers who fill roles; an exceptional manager seesworkers who fill roles; an exceptional manager sees
them as individuals to build roles around...they discoverthem as individuals to build roles around...they discover
what is unique about each person and then capitalise onwhat is unique about each person and then capitalise on
it.”it.”

OHT 6.33
Six senior management elementsSix senior management elements
1.1. Shared competitive agendaShared competitive agenda
2.2. Values & behavioursValues & behaviours
3.3. Influence without ownershipInfluence without ownership
4.4. Competing for talentCompeting for talent
5.5. Speed of reactionSpeed of reaction
6.6. Leveraging corporate resourcesLeveraging corporate resources
PrahaladPrahalad

OHT 6.34
Changing role of managersChanging role of managers
• Values & behavioursValues & behaviours
• Managing change & uncertaintyManaging change & uncertainty
• Leadership & motivationLeadership & motivation
• Managing diversityManaging diversity
• HRD & organisational practicesHRD & organisational practices

OHT 6.35

Leadership

OHT 6.37
A Leadership Story:
• A group of workers and their leaders are set a task
of clearing a road through a dense jungle on a remote island to get
to the coast where an estuary provides
a perfect site for a port.
• The leaders organise the labour into efficient units and monitor the
distribution and use of capital assets – progress is excellent. The
leaders continue to monitor and evaluate progress, making
adjustments along the way to ensure the progress is maintained and
efficiency increased wherever possible.
• Then, one day amidst all the hustle and bustle and activity, one
person climbs up a nearby tree. The person surveys the scene from
the top of the tree.

OHT 6.38
A Leadership Story:
• And shouts down to the assembled group
below…
• “Wrong Way!”
• (Story adapted from Stephen Covey (2004) “The Seven Habits of Highly Effective
People” Simon & Schuster).
• “Management is doing things right, leadership is doing
the right things”
(Warren Bennis and Peter Drucker)

OHT 6.39
Why leadership is important
• Flatter structures
• Social democracy
• Matrix teams & shared resources
• Empowering environments
• Shared design & management
• Emphasis on coaching & support

OHT 6.40
Difference between leaders & managers?

OHT 6.41
Difference between leaders & managers?
• Leadership is personal
• Leaders create excitement
• Leaders have empathy and emotional
involvement
• Managers conserve and regulate
• Leaders inspire

OHT 6.42
Approaches to leadership
• Qualities of traits approach
• Functional or group approach
• Leadership as a behavioural category
• Styles of leadership
• Contingency theories – ‘situational’
• Transformational leadership

OHT 6.43
• Trait theories:
• Is there a set of characteristics
that determine a good leader?
– Personality?
– Dominance and personal presence?
– Charisma?
– Self confidence?
– Achievement?
– Ability to formulate a clear vision?

OHT 6.44
• Trait theories:
– Are such characteristics
inherently gender biased?
– Do such characteristics
produce good leaders?
– Is leadership more than
just bringing about change?
– Does this imply that leaders are born not
bred?

OHT 6.45
• Functional or group theories:
– Focus on the management
of the organisation
– Focus on procedures and efficiency
– Focus on working to rules
and contracts
– Managing current issues
and problems

OHT 6.46
• Behavioural:
• Imply that leaders can be trained – focus on the
way of doing things
– Structure based behavioural theories – focus on the
leader instituting structures – task orientated
– Relationship based behavioural theories – focus on
the development and maintenance of relationships –
process orientated

OHT 6.47
Types of leadership style:
• Autocratic
– Leader makes decisions without reference to anyone
else
– High degree of dependency on the leader
– Can create de-motivation and alienation
of staff
– May be valuable in some types of business where
decisions need to be made quickly and decisively

OHT 6.48
• Democratic
– Encourages decision making
from different perspectives – leadership may be
emphasised throughout
the organisation
– Consultative: process of consultation before decisions
are taken
– Persuasive: Leader takes decision and seeks to
persuade others that the decision
is correct

OHT 6.49
• Laissez-Faire:
– ‘Let it be’ – the leadership responsibilities
are shared by all
– Can be very useful in businesses
where creative ideas are important
– Can be highly motivational,
as people have control over their working life
– Can make coordination and decision making
time-consuming and lacking in overall direction
– Relies on good team work
– Relies on good interpersonal relations

OHT 6.50
• Paternalistic:
– Leader acts as a ‘father figure’
– Paternalistic leader makes decision but may
consult
– Believes in the need to support staff

OHT 6.51
• Contingency Theories:
– Leadership as being more flexible – different
leadership styles used at different times depending on
the circumstance.
– Suggests leadership is not a fixed series of
characteristics that can be transposed into different
contexts

OHT 6.52
• Transformational Leadership
– The most challenging aspect of business is leading
and managing change
– The business environment is subject to fast-paced
economic and social change
– Modern business must adapt
and be flexible to survive
– Leaders need to be aware of how change impacts on
workers

OHT 6.53
• Transformational cont:
– Widespread changes
to a business or organisation
• Requires:
– Long term strategic planning
– Clear objectives
– Clear vision
– Leading by example – walk the walk
– Efficiency of systems and processes

OHT 6.54
Factors Affecting Style

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