Class 3 Impact of Management and Leadership (1).pptx

Managing in a Challenging Environment (MICE)
CSE4035-N
Impact of Management and Leadership.
Class 3
instructor
February 2022
1

Intended outcomes of this session.
You should be able to:
• Recognise the impact of management and leadership
• Explain styles of management and leadership.
• Identify why management and leadership is needed.

The development of
management thought
4

‘ the emergence of management as an
essential, a distinct and leading
institution is a pivotal event in social
history. Rarely, if ever, has a new basic
institution, a new leading group,
emerged as fast as management since
the turn of this century. Rarely in
human history has a new institution
proven indispensable so quickly; and
even less often has a new institution
arrived with so little opposition, so little
disturbance, so little controversy.’
Peter Drucker
Early management
thought
5

Strategic Management: Awareness and Change 7e
Thompson • Scott • Martin
© 2014 Cengage Learning EMEA
Styles of Management
Everyone in the business feels (and is) involved.
Everyone also feels (and is) accountable, especially
those at the top. Top management are given lots of
freedom to determine and change strategy, but they
can be questioned on anything by the rank-and-file
partners. . . this . . . makes people think ahead and
consider the consequences of their actions.
Stuart Hampson, when Chairman, John Lewis Partnership,
Hampson was only the fourth Chairman
since the Partnership was formed in 1929
Sir Charlie Mayfield became the Partnership's fifth Chairman in March 2007.
6

• C – conceptual skills to
see the holistic nature
• H – human skills to
work with others
• A – analytical skills
• R – relationship skills
• T – technical skills
Managers need ‘CHART’
7

“Leadership fosters a
collective sense of purpose
to which members of the
organisation are encouraged
to commit their ‘hearts and
minds’”
Chandler (1977)
“it can be claimed
management is crucial in
turning gizmos into
gadgets, inventions into
necessities, or innovations
into taken for granted
everyday realities”
(Knights and Wilmott
(2012)
So what about leadership vs
Management?
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Leadership vs Management
(Based on Kotter 1990)
Leadership function Management function
Creating an agenda Establish direction
Vision of the future, develop
strategies for change to achieve
goals
Plans and budgets
Decides action and timetable,
allocates resources
Developing people Aligning people
Communicates vision and
strategy, influences creation of
team, accept validity of goals
Organising and staffing
Decide structure, allocate staff,
develop policy, procedures,
monitoring
execution Motivating and inspiring
Energise people to overcome
obstacles, satisfy human needs
Controlling, problem solving
Monitor results against plan, take
corrective action
outcomes Produces positive and
sometimes dramatic change
Produces order, consistency and
predictability 9

Lead is from an Anglo-Saxon
word meaning a road, a way, a
path. It's knowing what the next
step is.
Managing is from the Latin,
manus, a hand. It's about
handling, and is closely linked
with the idea of machines and
came to prominence in the 19th
century, as engineers and
accountants emerged to run
what had previously been
entrepreneurial businesses.
Definitions
10

Leadership Skills
Charan (2006) identifies the following:
• The ability to position the business in order to make money
• Connecting external events to the internal workings of the business
• Managing the social system of the organization
• Judging, selecting and developing other and future leaders
• Moulding an effective leadership team
• Clarifying priority issues
• Dealing with the inevitable, ubiquitous and unexpected challenges.
The world is uncertain.
11

The task of leadership, as well as providing the framework,
values and motivation of people, and allocation of financial
and other resources, is to set the overall direction which
enables choices to be made so that the efforts of the
company can be focused.
Sir John Harvey-Jones
English Businessman and television presenter – former
Chairman of Imperial Chemicals Industries (ICI).
11
Leadership is…

So are managers born
or made?
• Richard and George born
into the Cadbury family
• Summoned back into the
business
• Invested entire inheritance
to prevent failure
• Fear of Victorian Quaker
ideals and principles
• Turned Cadbury’s round in
1 generation
12

So is management an
art or a science?
ART
Born with intuition,
intelligence and
personality which
they develop
through the practice
of leadership
MAGIC
Nobody really knows
what is going on . They
call up the appropriate
gods and engage in
rituals
SCIENCE
They have learned the
body of knowledge
and applied the skills
and techniques
POLITICS
Can work out the
unwritten laws of life
and play the game to
win!
13

McGregor’s theory X and Y,
Manager’s assumption that
employee is either X, Y or Z,
therefore leader/manager
bases practices on these
assumptions.
Theory X: Authoritarian
Theory Y: Participative
15

• To ensure the organisation serves its
basic purpose – efficient production of
goods or services
• To design and maintain the stability of
the organisation
• To take charge of strategy making and
adapt the organisation in a controlled
way to changes in its environment
• To ensure the organisation serves the
ends of those people who control it
• To serve as the key informational link
between the organisation and its
environment
• As a formal authority to operate the
organisations status system
Source: Mintzberg
Why do organisations
need managers?
16

The scientific approach
to management
17

Henri Fayol (1841-1925) divided the
management activities of industrial
undertakings into 6 groups:
• Technical – production and
manufacture
• Commercial – buying and selling
• Financial – obtaining capital
• Security – safeguarding property
and person
• Accounting – stock taking,
balance sheets etc.
• Managerial – translation of
French term ‘administration’
The managerial activity is thus
divided into elements
• Planning – forecasting (horizon
scanning)
• Organising – providing the material
and human resources (structural)
• Command – getting optimum return
from employees
• Coordination – harmonise all activities
(unify)
• Control – express command (top
down)
Deeper implication than Taylor (shop
floor)
Contemporary activities
of Scientific Management
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• Segregation of men and women
into different work areas
• No girl over 20 should be
employed
• Dismissal of women upon
marriage
• Different employment contracts
for women
• Evidence that employment of
women was cheaper than
investment in technology
• Men concentrated in capital
intensive work
• Women concentrated on labour
intensive work
Scientific Management applied to
Cadbury’s early days?
19

• Bourneville – the testing
ground for social reform
• 370 homes/500 acres of land
• Money from repairs bought
more land/homes
• At breakfast workers
discussed life issues and
George educated them
• Bournville children were 2-3
inches taller & 8lb heavier
• Infant mortality was
significantly lower
Use of the Scientific approach
to tackle social problems
20

• Company founded in early
20th century
• SM dominates
management thinking
• Assembly lines prepare
food
• Consistency & control was
the key principle
• Motto: Quality, service,
cleanliness & value
21st Century scientific
management
https://www.youtube.com/watch?v=sICEmBpAPq0
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“Learning today, leading tomorrow”

Benefits
• Rational measured approach
with degree of accuracy
• Processes provide information
to inform improvement
• Improved methods = increased
productivity
• Enables pay by results
• Contributed to improved
physical conditions
• Provided foundation for
modern day work studies
Drawbacks
• Reduced workers role to
rigid adherence
• Led to fragmentation and
organisation of individual
task
• Carrot and stick approach to
motivation
• Shifted planning and control
to hands of management
• Ruled out realistic
bargaining about wage rates
Pros & Cons of SM
24

• Accepted most of Taylors principles (but)
• Thought Taylors ideas did not afford the
worker enough attention
• Introduced payment system (-=day
rate/+=bonus)
• Made better use of foreman
• Bonus system allowed workers to
challenge time allocation for tasks
• Did not believe in ‘one best way’ but ‘a
way which seems best at the moment’
• Created Gantt Chart to indicate the
extent to which task was achieved
Henry Gantt
25

Other theoretical approaches to
management
CLASSICAL HUMAN
RELATIONS
SYSTEMS CONTINGENCY
Emphasis on
purpose, formal
structure, hierarchy
of management,
technical
requirements, and
common principles
of the organisation.
Classical writers
place emphasis on
the planning of
work and assume
rational and logical
behaviour
Attention to social
factors at work,
groups, leadership,
the informal
organisation, and
the behaviour of
people
The integration of
the classical and
human relations
approaches.
Importance of the
socio-technical
system. The
organisation within
its external
environment
No ‘one best way’
design of
organisation. Form
of structure,
management, and
‘success’ of the
organisation is
dependant upon a
range of situational
variables
26

Human Relations
management
The Hawthorne Experiments
Illumination
experiment
Relay assembly test
room
Interviewing
programme
Bank wiring
observation room
Workers were divided
into 2 groups, an
experimental group
and a control group.
Results were inclusive
as no apparent
relationship to the
level of lighting but
productivity increased
when conditions were
made worse and
lighting remained the
same. Therefore
productivity was
influenced by factors
other than the
physical conditions
The work was boring
and repetitive,
involved assembling
small numbers of
parts. Six women
transferred from
normal dept to
separate area. They
were divided into
groups and observed
over 13 periods,
subjected to planned
and controlled
changes such as rest,
work, refreshments.
Observer adopted a
consultative approach
and productivity
increased – now know
as the Hawthorne
effect
20,000 interviews
were conducted in
attempt to realise the
perception of workers
of their supervisors.
Initial pre prepared
methods produced ltd
information. Interview
style changed and
moved to non
judgemental listening
approach. Many
workers welcomed
the opportunity to air
their feelings and felt
listened to. This
highlighted the need
for managers to listen
to employees
14 men working in the
bank wiring room; it
was noted they
formed their own
informal organisation
with sub groups.
Despite financial
benefits the workers
could receive the
group decided on a
level of output below
what they were
capable of producing.
This illustrated group
pressures on workers
were stronger than
financial incentives
offered by
management
27

DO YOU AGREE?
“Management is all about
control. Success gives you control
and control gives you longevity as
a manager. In football very few
managers achieve a position of
complete control over their
teams”
Sir Alex Ferguson
The essential nature of
managerial work
28

Leadership and Corporate Failure
Businesses ‘fail’ when they fail to meet the needs and expectations
of their key stakeholders, or when decisions that they take lead to
outcomes which are unacceptable to the stakeholders. These
‘failings’ may generate crises with which the business is able to
deal, usually at a cost; they may also lead to the ultimate collapse
of the organization.
The outcomes can take a variety of different forms, but authors
such as Slatter (1984) have clearly identified three main, direct
causes of corporate failure and collapse:
• weak or inappropriate strategic leadership
• marketing and competitive failings
• poor financial management and control.
30

Causes of decline
Companies fail for a variety of reasons, and normally more
than one factor is in evidence. The main ones are:
• Poor management – either at strategic leader level, or
through the heart of the organization. The latter is also
indicative of weak leadership.
• Poor financial control – weak budgeting and cost
management; an inability to cover overheads.
• Competition – the company has become relatively weak in
comparison to its competitors.
31

Political Effectiveness
Politically successful managers understand organizational
processes and they are sensitive to the needs of others.
– Effective political action brings about desirable and
successful changes in organizations – it is functional.
– Negative political action is dysfunctional, and can enable
manipulative managers to pursue their personal objectives
against the better interests of the organization.
– The strategic leader needs to be an effective politician.
32

Intended Strategy Implementation
To summarize, the outcome, in terms of strategic management and
organizational success, is dependent on:
• the direction provided by the strategic leader
• the culture of the organization
• the extent to which managers throughout the organization understand,
support and own the mission and corporate strategy, and appreciate the
significance of their individual contribution
• the willingness and ability of suitably empowered managers to be
innovative, add value and take measured risks to deal with environmental
opportunities and competitive surprises
• the effectiveness of the information sharing, monitoring and control
systems.
33

Features of a Sustained Recovery
Slatter (1984) studied a number of successful and unsuccessful
attempts at turnaround, and concluded that there are three main
features of a sustained recovery:
1. Asset reduction is invariably required in order to generate cash.
Quite frequently this will be achieved by divestment of part of the
business.
2. A new strategic leader is usually necessary. The new strategic
leader will typically be associated with a restructuring of the
organization, the introduction of new strategies and a redefinition of
roles and policies.
3. Better financial control systems are also a normal feature.
34

Leading Strategic Change
Kotter (1990) argues leaders ‘create and manage change’ and he delineated
four important differences between managers and leaders:
– Leaders work with the future in mind and do not always have to be bound
by timescales (although sometimes time pressures to deliver are
paramount), whilst managers are more concerned with planning and
budgeting within defined time frames.
– Leaders champion organizational communications whilst managers work
with the form of the organization.
– Managers concentrate on problem solving whilst leaders aim to inspire
and motivate others.
– Managers work to targets and can be expected to behave predictably;
leaders must at times be unpredictable if they are to effectively champion
change.
35

33
Intended outcomes of this session.
You should be able to:
• Recognise the impact of management and leadership
• Explain styles of management and leadership.
• Identify why management and leadership is needed.

Class 3 Impact of Management and Leadership (1).pptx

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