ANGUTECH Principles of Management 2 PDF

Principles of Management 2 Dr Daniel Opuni GROUPS /TEAM BEHAVIOUR  Groups & Team Behaviour TEAM A team is a group in which the contribution of individuals are seen as complementary. Any group of people who must significantly relate with each other in order to acc...

Principles of Management 2 Dr Daniel Opuni GROUPS /TEAM BEHAVIOUR  Groups & Team Behaviour TEAM A team is a group in which the contribution of individuals are seen as complementary. Any group of people who must significantly relate with each other in order to accomplish a shared objective. A group of people who have a common aspiration and work together to achieve a common objective.  Groups/Team Behaviour II Any number of persons who; interact with one another, are psychologically aware of one another, and perceive themselves to be a group. (Prof, Adair) A plurality of persons who interact with one another in a given context more than they interact with someone else and have a collective perception of their unity and acting in a unitary manner towards the achievement of common goals (JH  Group/Team Building The process of diagnosing task, procedures and patterns of human interaction within a work group – Mullins The process of removing obstacles that prevent the team from working effectively and planning how to improve the performance of the team.  Group/Team Building II The process of selecting individuals based on defined criteria, nurturing the individuals, to work in a systematic manner to solve a complex problem to achieve a common objective  Characteristics of a Team Share of common goal Enjoy working together Commitment to achieve objective Diverse individuals with different backgrounds Exhibit great loyalty Shows firm belief in the team’s objectives Team spirit and morale (overpowering spirit of working together) Essential ingredients of a group/team Collective perception of their unity Collective consciousness of themselves Common objectives/aspirations to some extent There is ‘togetherness’ rather than ‘individualism’ (“weness” rather than “meness”  Identifying blockages in an effective team Inappropriate leadership Unqualified membership Unconstructive climate Unclear objectives Poor achievement Ineffective work methods Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Identifying blockages in an effective team Insufficient openness and confrontation Undeveloped individuals Low creative capacity Unconstructive relationships between team members Poor communication Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  4 areas of Team-building interventions Diagnosis; discussions to uncover problems Task accomplishment; what & how to achieve Team relationships; identify role expectations from managers & members Team organisation; selecting best members to achieve goals Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Types of groups I Formal; Consciously coordinated system of human interactions Created to achieve specific objectives Members brought together on the basis of defined roles Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Types of groups II Formal Task to be undertaken is a major feature Rules & norms clearly established Division of labour & function through a hierarchy of authority & responsibility Relatively permanent, Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Types of groups II Informal; social interaction without conspicuous structure based on personal relationships agreement of members To satisfy psychological & social needs which are absent in the business or firm level of power & authority difficult to define. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Role of a manager in a Team Achieve the task Build & maintain the team Develop each individual Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Composition of a successful Team – Belbin I Leader; coordinates & operates through others Shaper; committed, aggressive & challenging Plant; thoughtful & thought provoking Monitor-evaluator; analytically criticises other’s ideas, brings group to earth Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Composition of a successful Team – Belbin II Resource-investigator; picks up other’s ideas and adds to them, acts as bridge to the outside world Company worker; turns general ideas to specifics, practical & efficient, administrator Team worker; social relationships, diffuses conflicts, supportive Finisher; unpopular, progress chaser, ensures timetables are met Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Team Development & Maturity I Stage I; developing mutual acceptance -members have initial mistrust each other & fear of inadequacy, questions about likes & dislikes, learn to accept each other, etc. Stage II; communication &decision making - express their feelings & conflicts, develop liking, more constructive problem solving & decision-making, etc Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Team Development & Maturity II Stage III; motivation & productivity- members are motivated with intrinsic rewards, involved with the work of the group, high cooperation, etc. Stage IV; control & organisation members allocated based on abilities, group is flexible & adaptive to new challenges. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Teams Development & Relationships - Tuckman Forming; collection of individuals, define the purpose & how it will operate Storming; conflict stage, preconceptions are challenged, norms of attitudes, behaviour are rejected, members compete for chosen roles (leader, comedian) Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Development of Teams - Tuckman Norming; establishes norms upon which the team will operate, experiment & test group reactions as norms are established, decision making procedures Performing; final stage, operating to full potential Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Development of Teams – The fifth Stage Dorming; raising of protective barriers & impregnability,negative attitude towards competing projects, unwavering belief on the group and its decisions, a sectarian emphasis on agreement Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Reasons for forming a group/team Two heads are better than one - certain task can be performed by the combined efforts of individuals working together Collusion between members – sharing rotation of unpopular tasks creativity & initiative Mutual understanding & support- stressful or demanding Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Reasons for forming a group/team Sense of belonging- feel of identity & recognition of status Guidelines on generally acceptable behaviour Provide protection Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Group Cohesiveness –Attributes of a effective work Group/Team Concern for membership Open expression of feelings & agreements Free flow of information & communication Members motivated to achieve a goal Concerned participation in activities Mutual trust & dependency Desire for forgiveness – forgive Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Group Cohesiveness –Determinants of a cohesive Group/Team I Membership; size, permanence, compatibility Work environment; nature of task, physical setting, flow of information, Organisation; management leadership, personnel policies, PEST, success Group development & maturity; forming, storming, norming, performing Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Group Cohesiveness –Determinants of a cohesive Group/Team II Motive of joining- eg. finance, security, Incentive properties- how attractive the goals, programmes, style of operation are Expectations of individuals- Comparison of returns between similar group Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Role - Meaning “The expected pattern of behaviours associated with members occupying a particular position within the structure of the organization.” Role is influenced by situational factors; tasks, style of leadership, Personal factors ;values, motivation attitudes, ability Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Role conflict - Types Role incompatibility; simultaneous different expectations create inconsistency Role ambiguity; lack of clarity on what to do Role overload; too many separate roles too great a variety of expectations Role underload; prescribed role expectations fall short of person’ own perception of their role. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Role stress Stress may involve tension, frustration & dissatisfaction associated with two incompatible expectations at place of work Stress may lead to cardiovascular diseases, marriage breakdowns and other related social problems, reduce efficiency. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Reducing role conflict & stress I Increase specification & clarity of prescribed role expectation Improved recruitment & selection Proper induction & socialisation Medical examinations & health screening to reveal potential stress- related problems Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Reducing role conflict & stress II Give advance notice on any additional load & work needed urgently Removing structures likely to cause role conflicts Change in management system and management style Review of organizational structure, information flow, communication Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Reducing role conflict & stress III Role conflict; clashes between that they have adopted - professional confidentiality vs honest citizenship Finance officer who uncovers fraud of senior manager Role set; people who support a lead person in a major role. Eg, nurse and ward assistant form part of a doctor’s role set. Role signs are visible indications of the role; style of dress and uniform Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST APPLICATIONS OF MANAGEMENT THEORIES Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  AREAS OF APPLICATION Effective Leadership Motivation Organizational Structure Delegation Power Authority Responsibility Communication Change Management Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Principles of Management - COH 725 Lecture VII EFFECTIVE LEADERSHIP Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Leadership - Definitions “An interpersonal influence directed toward the achievement of a goal.” “Is a dynamic process in a group (or team), where one individual influences the others to contribute voluntarily to the achievement of group tasks in a given situation.” “The lifting of a man’s vision to higher standard, the building of a man’s personality beyond its normal limitations” Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Theories of Leadership - Trait-based great person theories- Byrd, et al Leaders are born and not made. Seek to identify individual traits and compare with known leaders The traits are; -physical; drive, energy, appearance, height -personality; adaptability, enthusiasm, self- confidence -social; co-operation, tact, courtesy Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Theories of Leadership – Activity-based – Prof. Adair Practising leadership means doing things-giving instructions, persuasion & motivation Leadership focuses on the needs of the task, group & individuals. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Action-centered leadership model Task, group & individual needs are interconnected in the context of total leadership. Leader works to meet needs of the 3 TASK NEEDS Objective, planning, allocation of responsibilities, performance standards GROUP NEEDS Communication Team building INDIVIDUAL NEEDS Motivation Coaching, counselling Discipline Development, motivation Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Leadership - Contingency-based theory Effective leadership depends on a number of contingent variables No ideal personality No one right way to lead that fits all situations lead in a manner appropriate to a particular situation Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Leadership - Contingency-based theory II ; Fiedler’s Leaders are assessed based on a score on a Least preferred co- worker (LPC) – Leaders are asked to think of a person he can work least well with. – Rate the person on 16 dimensions – Leaders who rate the person negatively is described as a task oriented Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Leadership - Contingency-based theory III ; Hersey Blanchard - Situational Theory Effective leadership depends; The direction; spelling out duties & responsibilities The relationship; Multi-way communication The level of maturity of the followers at a given situation Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Leadership - Contingency-based theory IV; Level of Maturity Related Leadership Styles Delegating; low relationship/low task- competent & motivated Participation; high relationship/low task- moderate follower readiness level Selling; high task/high relationship – moderate follower readiness level Telling; high task/low relationship - low follower readiness level Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Paternalism - The figurehead – the father…who makes decisions on behalf of others…  Leadership - Contingency-based Theory V ; Handy’s; Best Fit approach 4 factors key to successful leadership The leader; personality, character Subordinates; collective personalities & preference styles The task; objectives, technology & methods The environment The best fit occurs where all the first 3 factors coincide at point in Mgt_Lecture Notes P. Agyei- spectrum Baffour, Ph.D, COH/SMS/KNUST Style (Behavioural) Theories – Likert Exploitative autocratic; stands aloof use orders without consultation Benevolent authoritarian; no reward, policy made at top, delegation restricted, criticism is not tolerated Participative; incomplete confidence in subordinates, reward & motivates, Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Style Behavioural Theories – White & Lippitt Laissez-faire- gives workers knowledge, little participation Democratic ; economic rewards, decision making allowed at all levels Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Managerial Behaviour- Blake & Mouton’s - Grid High 1,9 9,9 C o n c e r n f 5,5 o r p e o p 1,1 9,1 l e Low Mgt_Lecture Notes P. Agyei- High Baffour, Concern Ph.D, COH/SMS/KNUST for Managerial Behaviour- Blake & Mouton’s – Grid II Country Club Management 1,9; thoughtful, attention to the needs of people for satisfying relationships, leads to comfortable friendly atmosphere and work tempo, satisfied worker will do his best, Team Management (9,9); work accomplishment is from committed people, interdependence, through common stake, relationships trust & respect Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Managerial Behaviour- Blake & Mouton’s – Grid III Middle-of-the-road management (5,5); adequate organizational performance, balance between necessity to get work done while maintaining high morale of staff Impoverished Management (1,1);sustain organizational membership, work done with minimum effort Authority-Compliance (9,1);efficiency in operations results, human elements is relegated to the background. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Principles of Management - COH 725 Lecture VIII MOTIVATION; CONCEPTS, MODELS & PRACTICES Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Motivation - Definitions A process that arouses, sustains & regulates behaviour towards a specific goal or end. The force that activates the individual or group to behave in a manner to achieve a desired goal An intention which drives an individual or group to work towards the achievement of a goal Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Motivational Theories Influences McGregor Japanese Content Theory; Maslow, Alderfer, Hezberg & McClelland Process Theories; Equity, expectancy, goal attribution, Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Influence Theory of Motivation A force that influences behaviour. Values; money, power, prestige Beliefs; what is required of you is possible to achieve, by performing well , you benefit from your efforts. Attitudes; positive or negative towards a goal Needs Goals; target to aim, standard of performance Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Theories X & Y - McGregor Value judgements inherent in supervision – Theory X; people little ambition dislike work, they need to be coerced, controlled directed or threaten with punishment to get them do their best to achieve a goal. They want security above all Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Theories X & Y - McGregor Theory Y; physical & mental effort in work is as natural as play or rest. People do not dislike work, gain satisfaction from work, can exercise their self-direction & self-control to achieve a goal Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Theory Z - Japanese –Ouchi I Emphasis on interpersonal relationship Building trust through informal & democratic relationships Formal hierarchy remains intact Long term employment Close to customer- learn from people you serve Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Theory Z - Japanese –Ouchi II Slow evaluation & promotion Moderately specialised careers Consensus decision-making Individual responsibility Implicit informal control Concern for employee Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Content Theory; Maslow Hierarchy of Needs Alderfer Hezberg McClelland Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Maslow Hierarchy mh Self-actualization; growth, advancement, creativity, challenging job, achievement in work Esteem; self respect, prestige Status, social recognition, job title, high status Social; love, affection, belongingness, cohesive work group, friendly Safety/Security; protection, supervision, stability, safe working condition, company benefits, Basic Physiological Needs; food, water, sex, sleep, pay, Cafeteria, pleasant working conditions Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  ‘ERG’ Theory- Alderfer Existence Needs; physiological & safety needs Relatedness Needs; love belongingness, safety & esteem needs Growth Needs; development of potential, esteem & self atualisation Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  The Two factor Theory - Herzberg Intrinsic factors/Motivators; Sense of Achievement Recognition Attraction of job Responsibility Advancement Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST The Two factor Theory -Herzberg Hygiene Theory/dissatisfiers Company policy & administration Supervision Salary Interpersonal relations Working conditions The “golden handcuffs” Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Achievement Theory- McClelland Achievement; some people want to achieve goals which have limited chances of success, others prefer to achieve goals which are highly rated to be successful Affiliation; Some people want affiliation at all cost and enjoy working in such environment Power; extent of influence on others to behave differently from the usual. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Process Theories; Equity Expectancy Goal Attribution Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Equity Two inequities; positive & Negative- (Outcome/inputs), determine motivation. Workers who feel overpaid increase quantity & Quality of output Workers who feel underpaid reduce output Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Workers attitudes towards Inequalities Work to remove inequalities & restore equity by; Change working inputs Change rewards received Leaving the situation Changing the comparison points Psychologically distort the comparison Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Expectancy- Vroom People are motivated to work to reach a goal if they believe in the WORTH of the goal and if they can see that what they do WILL HELP them achieve the goal People’s motivation is a product of anticipated worth Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Expectancy- Vroom Force = Expectancy X Valence Mf= ΣE.V (Mf) Motivational Force; strength of motivation (V)-Valence; strength of preference for an outcome (E) Expectancies; Strength of expectancies Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Goal Theory of Motivation People’s goals play key role in their behavior People strive to achieve goal to satisfy their emotions & desires defined by values Goal difficulty & level of commitment defines the level of effort needed to achieve a goal Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Attribution Theory of Motivation Process by which people interpret the perceived causes of behaviour Behaviour is determined by combination of internal forces and external forces - Internal forces; ability skill, effort - External forces; organizational climate, weather, behaviour of superiors. Choice of attribution should be guided by distinctiveness, consensus & consistency Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Motivating Staff – Role of Management Motivate staff to perform at the upper limit of their performance Coach staff to develop their abilities Clarify & enforce level of acceptability Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Matching employees’ behaviour with what the manager thinks they behave - Schein Rational-economic man; self interest & maximisation of gains Social-man; social needs & relationships Self-actualisation man; demanding, challenging & rewarding work Complex man; people are more complex and need to be diagnose their motives Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Job design as a motivator I Job enrichment; a deliberate, planned process to improve the responsibilities, challenge & creativity of a job. It increases workload, leads to delegation of certain responsibilities Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Job design as a motivator II Job enlargement; widening the range of jobs, no job enrichment, horizontal enlargement Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Job design as a motivator III Job rotation; regular change of staff between jobs to reduce monotony & provide fresh job challenge. Improves job satisfaction but is unlikely to create positive motivation Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Job satisfaction It is an internal state with personal feeling of achievement, it is attitudinal and difficult to generalise. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Job satisfaction - Determinants II Individual ; personality, education intelligence, age, marital status, Social factors; relationship with co- workers, group working norms, informal organization, etc Cultural factors; values, beliefs Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Job satisfaction - Determinants III Organizational factors; nature, size, formal structure, management system, etc. Environmental, PEST Frustration and alienation at work; detachment of the worker from his work role Technology Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Reward System Maslow; Can satisfy all types of needs McClelland; As a performance feedback Herzberg; hygiene factor, can motivate if given as on merit for high output Adam; as social object of comparison Vroom; is one of many rewards, can motivate if expectancy is high Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Non financial Motivators Participation; involve staff in decision-making, recognise their contributions Quality of work; work environment, leadership attitudes, work planning, industrial relations, Job design; job enrichment, rotation, enlargement Certificate of honour, awards Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Principles of Management - COH 725 Lecture IX ORGANIZATIONAL STRUCTURE POWER AUTHORITY RESPONSIBILITY ACCOUNTABILITY DELEGATION Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  ORGANIZATIONAL STRUCTURE I It is an institutional arrangement in which the activities of organization are performed. It is the framework within which management decision making behaviour occurs. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Organizational Structure II It provides the basis for the assignment of duties and responsibilities to individual workers. It provides a network of roles for people to know what they are supposed to do. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Organizational Structure - Tall MD General Finance Production Personnel R&D Manager Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Short Organizational structure MD Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Factors that Influence the Design of Organizational Structure The size of the organization: Technology : The environment: Employee’s requirement; Types of task to be performed: Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Importance Of Organizational Structure I It provides a framework in which the people interact as a group to achieve organizational objective. It is the basis of grouping work into departments (sections/units). It helps to delegate duties, to assign responsibilities, and provides a means for determining who is accountable to who. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Importance Of Organizational Structure II It is important because it is a structure in which mgt decision making behaviour occurs. It also provides a hierarchy of roles so that members in it get to know who is superior and subordinate. It also directs the flow of authority and responsibility and also effective communication. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Types of Organizational Structure (a) Functional/lateral/horizontal; this is based on functional/departmental specialisation (b) Line/direct/scalar/military; It is the simplest and oldest of all, authority flows down in a hierarchical order, there is unity of command in line organizational structure, ie,subordinates receive instructions and orders from one superior at a time. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Types of Organizational Structure II Staff; assisting, advising, recommending, provides details of information to line managers. Duties ancillary to main goals Line & Staff; mixture of direct executive responsibilities with specialist ancillary services Tall; many levels of senior management positions Short; few management levels Committee; persons/group with delegated duties; special type to supplement the main four. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Types of committees Executive; mandate to manage or administer, made up of departmental heads Standing; has a long life span responsible for assignment of continuous nature Adhoc /Fact finding; deals with specific and defined assignment. Ceases to exist when it presents its report. Task Force; adhoc but with longer life span depending on assignment; has power for action, responsibilities & decision making. Coordinating ; direct more than one committees’ activities Sub committee; formed under a parent committee Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  POWER The ability of individuals or groups to induce/influence the beliefs or actions of others. The ability to get one’s way through in spite of resistance Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Power II Coercive Power (Force): This is based on sanctions and punishment to instill fear into subordinates to obey orders and commands. Legitimate; Under legitimate system of power, there is much persuasion, much participation, consultation in influencing thought and behaviour. Force; an extreme form of coercive power. Involves the use of strength, might, weapon, intimidation to get an order carried out Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Power III Expert Power : a technically competent, knowledgeable in his area. People come to him/her to seek advice on how to perform in their area. Reward Power : power to reward based on the person’s performance or kind of reward given to a subordinates, Eg. Promotion, increase of salary, etc. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Power IV Referent Power: Power based on one’s personality / efforts sometimes called the Charismatic Power. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  AUTHORITY The right to act or direct the actions & behaviours of others “The right to give orders and the power to exact obedience” (Henri Fayol) It involves acting directly or indirectly through acquired right, having the power to employ penalties or rewards to achieve a goal, right to use discretion to achieve a goal. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Sources of Authority Ownership of property; legally acquiring a property. Institutional; decrees, laws made by government that brings certain institution into existence. Eg, Port & Harbour Authority, Ghana Highway Authority, etc. Subordinate acceptance; willingness & preparedness to accept orders from a leader. Eg informal groups. Divine; leaders regard themselves as accountable to the Supreme Being (God). They only owe allegiance to God and no one else. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Types of Authority Line authority; superior-subordinate relationship. Takes place along the scalar chain Functional authority; power or right a person/group has due to its technical knowledge to control certain activities Staff; it provides ancillary support to managers Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  RESPONSIBILITY Morally accountable for actions, capable of rational conduct of good credit or position, repute. It is an obligation to perform and assign task in a suitable manner. It is an obligation owed, cannot be delegated. – A superior who delegates cannot escape responsibility assigned to work delegated It should be commensurate with level of authority Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  ACCOUNTABILITY The act of being held answerable to one’s own conduct in respect of obligations or responsibility. Every superior has right to discipline or reward subordinate who is accountable to him for his/her behaviour. Accountability is well explained by the structure of an organization. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  DELEGATION The act of giving part of the task to be performed to another person or group to do. The superior allows the subordinate to take part in the administration of the organization It does not free the person who delegated from accountability. The delegatee should be given enough authority to execute the task Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Principles of delegation Clear definition of expected results Maintenance of unity of command; delegatee should report to one superior with respect to the delegated assignment Parity of responsibility & authority; the superior should ensure that the authority granted to subordinate commensurate with responsibility given Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Factors that influence delegation Training Availability of qualified and competent staff Business expansion Willingness to delegate Willingness to take up the challenge (subordinate) Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Importance of delegation Utilises skills of subordinates A fundamental principles of organization structure A means of motivation It reduces work load of superiors Trains & develops subordinates to take up more higher challenges Exposes subordinate to leadership skills Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Problems associated with delegation Highly specialised & delicate task cannot be delegated It sometimes goes through bureaucratic bottlenecks Lack of training facilities Difficulty in ensuring that delegated activities are perfectly done Lack of confidence in subordinate Superior who is risk averse will not delegate A mediocre subordinate may be carried away Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Making delegation effective Mistakes should be constructively handled. Avoid ‘killing comments’ Delegator should guide delegatee Delegatee who performs assignment successfully should be rewarded Delegator should ensure effective communication Unity of command should be appropriately defined Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  CONFLICT(S) It is a state of misunderstanding between individuals or groups over an issue. It is the result of incompatibility or disagreement over an issue. It may result from unhealthy relationships between individuals and groups who may have incompatible goals or emotion. This may lead to antagonism and opposition. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  TYPES OF CONFLICTS Substantive; may result from disagreement over issues such as organizational goals /aims, allocation of resources. It may also result from policies, procedures, job assignment etc. (ii) Emotional - This may also result from competition or a struggle for particular position. It is characterised by resentment, anger, distrust. May lead to personality clashes. Both substantive and emotional conflicts could be destructive (dysfunctional) Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Types of inter-group conflict I Institutional; trade unions & management Hierarchy-based;inequalities of power built in organizational structure Functional; interdepartmental; sales vs. production, surgery vs. Medicine Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Types of inter-group conflict II Line/staff; professionals may regard line management as inferior, unimaginative, dull, inflexible Formal/informal; formal structure & rules vs. social-customs, beliefs, Status; competing for status & prestige Political; political processes, cliques & conspiracies Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Identifying signs of conflicts in organization Official & unofficial strikes Restriction /reduction in output Absenteeism Sabotage Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Identifying signs of conflicts in organization High labour turnover Poor time keeping Unhealthy rivalry Unwillingness to accept more efficient methods Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Sources of conflicts Role ambiguities Scarcity of resources Tasks-interdependent; overlap of task can lead to conflict Poor objective setting Unresolved prior conflict can trigger off another conflict Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Style of conflict management Compromising; bargaining for acceptable solution, cooperation Problem solving; solve problem which brought about the conflict Avoidance; taking neutral position if that will be ideal Results of conflict management may be- lose-lose, win-win, or win lose Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Advantages of conflict Challenge old fashioned ideas Stimulate climate of change & innovation Define authority & responsibility more closely Exposes anxiety or personality challenge Provides fresh approach, often widen range of options in problem solving Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  CHANGE MANAGEMENT It is any form of modification or alteration of any situation Change management is all about measure put in place to ensure successful modification. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Causal factors of Change Internal -New organizational policy; retrenchment, change of technique of production -Employees attitudes; embezzlement, laxities, strikes, -Product modification; brand or quality -Role conflict among personnel Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Causal factors of Change External – Government actions & policies; tax, interest rate – Customer behaviour; change in taste & preference – Competition – Technological advancement – Economic factors; recession, recovery, boom Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Types of Change Structural; involves identifying performance gap and work to improve the system. It deals with changes in technology. Process; involves changes in procedures/methodologies for doing things. It involves personnel Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Process change Unfreezing; states that old ways of doing things cannot stand the test of time and therefore must be changed or revised. Actual change; real stage of implementing the change. Training, education Refreezing/consolidation; putting measures in place to consolidate the change. Use of evidence-based strategies Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Process of Change I Pressure arousal; mgt may be aroused out of pressure to introduced change Intervention & Re-orientation; need to outsource experts to introduce change. Eg, Price Water House in Ghana. Diagnosis and orientation; change process should not rush. Symptoms of the problem should not be taken as causes. Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Process of Change II Invention & commitment; new ways of implementing change & commitment of top management Experimentation & search; recommended innovation should be tested on pilot basis before replicating on a larger scale. Reinforcement & acceptance; when convinced with results of pilots, replicate Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST  Why people resist change I Parochial self-interest; personal desire not to lose some advantage Lack of appreciation/understanding of the change Different assessment of event Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Why people resist Change II Different assessment of events Low tolerance for change Peer group pressure Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST Overcoming resistance to change I Education & communication of ideas, logic behind the intended change Participation & involvement; change initiators should involve potential resisters Facilitation and support; provide training and skills for those to be affected by the change to be able adjust to change Mgt_Lecture Notes P. Agyei- Baffour, Ph.D, COH/SMS/KNUST