Introduction to Leadership and Management PDF

Introduction to Leadership and Management LEADERSHIP AND MANAGEMENT KEY CONCEPTS OVERVIEW: 1. ORGANIZATION The process of organizing, or the way in which work is arranged and allocated among the members of an institution so that the goals can be efficiently ac...

Introduction to Leadership and Management LEADERSHIP AND MANAGEMENT KEY CONCEPTS OVERVIEW: 1. ORGANIZATION The process of organizing, or the way in which work is arranged and allocated among the members of an institution so that the goals can be efficiently achieved. Signifies an institution or functional group such as business, government agencies, hospital or other health care agency with formal intentional structures of roles or position. Four characteristics of Organization: 1. Common goal or purpose 2. Coordination of effort 3. Division of labor 4. Established delegation of authority 2. OPERATION Transforming material resources into useful goods and services. 3. MANAGER One who carries a predetermined policies, rules and regulations with official sanction or act. 4. MANAGEMENT The process of getting work done with others Is the process of planning, organizing, leading and controlling the efforts of organizational resources in order to achieve the organizational goals. Process of setting and accomplishing goals through the use of human, technical and financial resources. 5. LEADERSHIP The process of influencing the activities of an organized group in its effort toward goal setting and goal achievement (Stogdill)  Ability of management to induce subordinates to work towards group goals with confidence and keenness (Appleby) Occurs whenever one person influences another to work toward predetermined objective (Dessler) Process of directing and influencing the task-related activities of group members (Stoner) Directing and coordinating the work of group members (Fiedler) Relates to the personal traits necessary to establish a vision for patient care consistent with the mission and purpose of the organization (Yoder) A social transaction in which one person influence others (Merton) 6. EFFECTIVENESS The extent to which desired outcomes are attained through the use of intervention. The power to produce results. LEADERSHIP vs. MANAGEMENT a. Distinguishing Characteristics: b. Leadership and Management Theories c. Leadership and Management Styles LEADERSHIP TRADITIONAL DEFINITION Leadership is an interpersonal influence directed toward the achievement of a goal or goals. Three key principles involved: Interpersonal – Deals with more than one person Influence - The power to affects others Goals – The end that one strives to attain CONTEMPORARY DEFINITION Leadership is a dynamic relationship that is based on mutual influence and common purpose between leaders and collaborators which leads both parties to higher levels of motivation and moral development as they evoke “real” change. Three key principles involved: Relationship – Connection between people  Mutual – Something in common is shared Collaborators – Work together Leadership -- is a dynamic, interactive process that involves three dimensions 1. The Leader 2. The Follower 3. The Situation How do leaders influence others? Because leaders have POWER POWER Capacity to affect behavior of others Ability to impose the will of one person or group to bring about certain behaviors in other persons or groups SOURCES OF POWER 1. LEGITIMATE POWER Stems from a position’s placement in the managerial hierarchy and the authority vested in the position Power vested due to the position he occupies in the organization Director of Nursing Service, Supervisor, Head Nurse 2. REWARD POWER Based on the capacity to control and provide valued rewards to others for compliance with leader’s orders or request Pay rise, bonuses, promotion, better office, interesting projects 3. COERCIVE POWER Depends on the ability to punish other when they do not engage in desired behavior or non-compliance with the manager’s order Criticisms, reprimands, suspension, negative performance appraisals, demotions, terminations 4. EXPERT POWER Based on the possession of expertise that is valued by others  Determined by the knowledge, skills and special ability demonstrated by the individual Dialysis nurse 5. REFERENT POWER Results form being admired, personally identified with or liked by others. Associated with personality and strength of character Respect Nurse who is consistently supportive or helpful Types of Leaders 1. Formal One who is appointed Chosen by administration Given official or legitimate authority to act 2. Informal Do not have official sanction to direct activities of others Chosen by the group Become leaders because of: ◼ Age ◼ Seniority ◼ Special competencies ◼ Inviting personality ◼ Ability to communicate and counsel other MANAGEMENT ◼ The art of getting things done through people (Mary Parker Follet) ◼ Process of setting and accomplishing goals through the use of human, technical and financial resources. ◼ Is the process of planning, organizing, leading and controlling the efforts of organizational resources in order to achieve the organizational goals. COMPARISON BETWEEN LEADERSHIP AND MANAGEMENT LEADERSHIP MANAGEMENT Motto Do the right things Do things right Challenge Change Continuity  Focus Purposes Structures & procedures Time Frame Future Present Methods Strategies Schedules Questions Why? Who, what, when, where & how? Outcomes Journeys Destinations Human Potential Performance LEADERSHIP BEHAVIOR (STYLES) Autocratic Leaders Democratic Leaders Laissez-faire Leaders 1. AUTHORITARIAN/ AUTOCRATIC STYLE Uses positional and personal power Demanding and controlling Advantages of Autocratic Style ◼ Results in central control and coordination ◼ More consistency in policy interpretation and implementation ◼ Quicker decisions. ◼ Contributes to strong leadership that is important in generating change and meeting crises ◼ Good quantity and quality of output Disadvantage of Autocratic Style ◼ Results in low morale ◼ Not as much opportunity for people to develop their potential ◼ One-way communication does not lead to understanding ◼ Results in hostility, alienation and inflexibility ◼ Little autonomy creativity and self motivation ◼ Have little trust and confidence with subordinates ◼ Subordinates fear the manager 2. DEMOCRATIC/ PARTICIPATIVE/ CONSULTATIVE STYLE Allows for group governance through collaboration or group efforts Situation of trust and openness Group members are capable of decision making Advantage of Democratic Style ◼ Extremely motivational ◼ Makes better use of the skill and knowledge of the group ◼ Builds effective work groups ◼ People are more committed to an organization and its activities ◼ Emphasizes the worth and importance of the individual ◼ People are better informed. Develop personal skills ◼ Encourages open communication Disadvantage of Democratic Style ◼ Takes time to get others involved ◼ Results in compromise and watered-down decisions ◼ Inaction can result from the diffused responsibility ◼ Participation may hold down the innovative, far-sighted leader ◼ Participative styles are difficult to learn ◼ Works well only under certain conditions 3. PERMISSIVE/ ULTRA LIBERAL OR LAISSEZ FAIRE Abdicates leadership responsibilities Leaving workers without direction and supervision and allows them to plan. Leader uninvolved, disinterested, withdraw. Advantage of Laissez Faire Style ◼ Highly motivational to those people who seek freedom and independence ◼ Maximizes the potential of the individual ◼ Encourages a free flowing adaptive organization Disadvantage of Laissez Faire Style ◼ Can result in chaos because of lack of central control and coordination ◼ Personal rather than group goals may predominate ◼ Easy for conditions to get out of hand before corrective action is taken THE THREE CLASSIC STYLES OF LEADERSHIP Authoritarian Democratic Laissez Faire Nature Leader retain all Leader delegates a great Leader grants authority and deal of authority while responsibility and responsibility authority to group  retaining ultimate responsibility Leader assign people to Group members are clearly defined tasks Work is divided and told to work things out assigned on the basis of themselves and do the participatory decision best they can making Primarily, a downward Primarily horizontal flow of communication Active two-way flow of communication among upward and downward peers communication Primary Stresses prompt orderly Enhances personal Permit self-starters to Strength and predictable commitment through do things as they see fit performance participation without leader interference Primary Approach tends to stifle Democratic process is Group may drift Weakness individual initiative time consuming aimlessly in the absence of direction from leader BEHAVIOR OF LEADERS PASSIVE AGGRESSIVE ASSERTIVE Self denying Self enhancing at the Self enhancing (self expense of others & others) Inhibited Expressive Expressive Puts down self; low self- Puts down others Feels good about self worth and confidence Allows others to choose Chooses for others Chooses for self Does not achieve goal Achieves desired goal by Achieves desired goal hurting others LEADERSHIP THEORIES ◼ Great Man Theory ◼ Trait Theory ◼ Behavior Theory ◼ Contingency Theory ◼ The Path-Goal Theory ◼ The Managerial Grid 1. GREAT MAN THEORY Few people are born with necessary characteristics to be great Leaders are well-rounded and simultaneously display instrumental and supportive leadership behavior – considered great men and supposedly effective leaders in any situation Instrumental Activities - Planning, organizing and controlling activities of subordinates to accomplish the organization’s goals - Allocating resources such as people, equipment, materials, funds and space are important Supportive Leadership - Socially oriented and allows for participation and consultation from subordinates for decisions that affect them - Its assumption is that great leaders will arise when there is a great need. - The idea of the Great Man also strayed into the mythic domain, with notions that in times of need, a Great Man would arise, almost by magic. 2. TRAIT THEORY Personal qualities of an individual This theory states that if someone had “true leadership traits” they could lead regardless of the situation. It focused on “what a person is” and not on what they could accomplish. Emphasizes that leaders are born not made - People are born with inherited traits. Proposes that leadership is a function of these inborn traits. e.g. intelligence, perception - There are people who become good leaders because they have the right combination of traits.  Hold that possession of certain traits permit certain individuals to gain position of leadership - Some traits are particularly suited to leadership 3. BEHAVIOR THEORY (Autocratic, Democratic & Laissez Faire) Involves human skill aspect of a leader Studies leadership by looking at leaders in terms of what they do. Effectiveness is judged in terms of individual subordinate outcome Attempts to explain leadership on the basis of what the leader does rather than what the leader is It is not the characteristics of the leader but rather the way the leader behaves towards followers that determine effectiveness Leadership capability can be learned, rather than being inherent.- It is assumed that if success can be defined in terms of describable actions, then it should be relatively easy for other people to act in the same way This opens the floodgates to leadership development 4. CONTINGENCY(Fielder)/ SITUATIONAL THEORY (Hersey & Blachard) States that an analysis of leadership involves not only the individual traits and behavior but also a focus on the situation. The effectiveness of the leader behavior is contingent upon the demands imposed by the situation. Depends on the situation, different situations calls for different behavior and approaches If the situation changes, the style changes Leader’s ability to lead is contingent upon various situational factors, including the leader’s preferred style, the capabilities and behaviors of followers and also other various situational factors. There is no one best way of leading and that a leadership style that is effective in some situations may not be successful in others. 5. PATH-GOAL THEORY (Robert House) Describe the way that leaders encourage and support their followers in achieving the goals they have been set by making the path that they should take clear and easy Emphasizes that the leader behavior be such as complement the group work setting and aspirations Based upon the expectancy theory of motivation and reflects the workers belief that efforts will lead to successful results.  Leaders set up clear path and clear guidelines through which the subordinates can achieve both personal and work-related goals and assist them in achieving these goals; Leaders would: a. Clarify the path so that subordinates may know their direction. b. Remove obstructions that may hinder them to achieve their goal c. Increasing the rewards along the process. 6. MANAGERIAL GRID (Robert Blake/Jane Mouton) Plays an important part in managerial behavior in organizational development Shows managerial orientation is terms of two variables Purpose of the Grid 1. A tool for identifying Management style 2. Back-up style, used when normal style fails to get results The grid provides a reasonable indication of health of the organization as well as the ability of the managers. It is the objective of the management to move as close to coordinate 9.9 as possible Managers should be carefully selected on the basis of their ability to coordinate people and tasks for optimum benefit CONTEMPORARY LEADERSHIP THEORIES 1. Bureaucratic by Max Weber. ▪ Rule-centered (“They”) ▪ An institutional method for applying general rules to specific cases, making the actions of management fair and predictable introduced ▪ He advocated that the ideal form of organization is bureaucracy. ▪ Bureaucracies are founded on legal or rational authority which is based on law, procedures, rules, and so on. Positional authority of a superior over a subordinate stems from legal authority. Charismatic authority stems from the personal qualities of an individual 2. Management Process by Henri Fayol’s ▪ First identified the management functions of planning, organization, command, coordination, and control.  Introduced the following principles: ▪ Principle of division of work ▪ Authority and responsibility ▪ Unity of command ▪ Remuneration of personnel ▪ Establishment of tenure ▪ Communication ▪ Centralization 3. LIKERT’S PARTICIPATIVE THEORY Effective managers are highly sensitive to their staff associates. Uses communication to keep the group working as a unit. Participative management is a human relations theory that may use management by objectives andjob-enrichment approaches 4. THEORY X and Y (Douglas McGregor) THEORY X Proposes that man is lazy, unmotivated, has inherent dislike for work and will avoid it whenever possible That the average individual prefers to be directed, hopes to avoid responsibility and is most interested in financial incentives than in personal achievements. Because people dislike work, they must be controlled, threatened and coerced to insure that the work is done properly THEORY Y Mc Gregor questioned the validity of theory X and suggested that the different set of assumption reflected a more accurate assessment of human nature, one that encourages workers to develop their full potentials. The expenditures of physical of mental effort is as natural as rest and play Man will exercise control and self direction in the service of an objective to which he is personally committed. The average person learns, under proper conditions, both to seek and to accept responsibility. The capacity to apply imagination and creativity to the solution of organizational problem is widely rather than narrowly distributed among workers. 5. THEORY Z (William G. Ouchi) A Japanese form of participative management Form inclusive personal and professional relationships and provide social support  Personnel anticipate lifetime relationship with employer (job security) Cooperation is stressed and collective decision making is practiced. MCGREGOR’S THEORY X & Y and OUCHI’S THEORY Z Theory X Employees Theory Y Employees Theory Z Employees Avoid work if possible Like and enjoy work Quality circles Dislike work Like and enjoy work Fitting employees to their jobs Must be directed Self-directed Consensus decision making Have little ambition Imaginative & creative Job security Avoid responsibility; Seek responsibility Examining the consequences of Needs threats to be management decision making motivated Need close supervision Have underutilized Slower promotions intellectual capacity Motivated by rewards Need only general Establishment of strong and punishments supervision relationship between superiors and subordinates Encourage to A holistic concern for the workers participate in problem solving 6. JAMES MOONEY He advocated that the management is the technique in directing people. 7. D. LYNDALL URWICK Advocated that the managerial process consists of planning, coordinating and controlling 8. CHRIS ARGYRIS  During maturation, the individual moves to a condition of greater independence, increased productivity, more varied activity, longer time perspective and increased self control. Proposed that the rigid structure and stringent rules of the typical bureaucracy block normal maturational changes Flexibility within organization Employee participation in decision making 9. FREDERICK HERZBERG (Motivation Hygiene Theory) Factors associated with dissatisfaction are different from the factors which cause satisfaction. If people are satisfied with their job, they are receiving positive feedback, developing skills, and improving their performance. Work motivators include achievement, growth responsibility, advancement, and the job itself. Dissatisfaction results when people perceive that they are being treated unfairly in pay, benefits, status, job, security, supervision and interpersonal relationship. 10. FREDERICK TAYLOR (Monistic Theory) Believed that people could earn more by producing more, so that pay would depend on productivity. 11. ABRAHAM MASLOW (Hierarchy of Needs Theory) Believed that people are motivated by a desire to satisfy hierarchy of needs. Hypothesized that satisfaction of the basic physiological needs triggers the emergence of more abstract needs and that a satisfied need is no longer a motivator. MANAGEMENT PROCESS AND FUNCTIONAL AREAS 1. PLANNING The process by which a manager anticipates the future and discovers alternative course of actions. 2. ORGANIZING The process setting of which relationship between people work and resources. 3. STAFFING The process by which the managers train, select, promotes and retires subordinate. 4. DIRECTING/LEADING The process by which actual performance by the subordinates is guided towards common goals. This is the implementation phase of management.  5. CONTROLLING The process of evaluating the work accomplished against plan or standards to determine if it is being carried out as planned. It is concerned with assessments and regulation of both progress and completed. MANAGEMENT ROLES 1. INTERPERSONAL Grow directly out of the authority of a manager’s position Involves developing and maintaining positive relationships with significant others Figurehead - entails symbolic duties that are associated with manager’s position and authority. Leader role involves building relationships with subordinates Includes communicating with motivating and coaching subordinates Liaises between the organization and outsiders 2. INFORMATIONAL Monitor role - seeking information internally and externally Disseminator role – about issues that can affect the organization aimed at transmitting information internally Liaison - transmits collective information to subordinates (internally); transmits information to outsider (externally) 3. DECISIONAL Act as Entrepreneur Disturbance Handler – Conflict resolution Allocates resources - budgeting, authorization to incur expenditures Represents the organization or unit in major negotiations  Leadership Theories LEADERSHIP THEORY 1. “GREAT MAN” THEORY (Mid 1800s – early 1900s) Great man theories assume that the capacity for leadership is inherent – that great leaders are born, not made. Major Assumptions These theories often portray great leaders as heroic, mythic and destined to rise to leadership when needed. Leadership development is based on Darwinistic principles Leaders are born, not made Leaders have natural abilities of power and influence Scientific research has not proved that leadership is based on hereditary factors Leadership was believed to exist only in a few elite individuals The term "Great Man" was used because, at the time, leadership was thought of primarily as a male quality, especially in terms of military leadership. The great man theory of leadership became popular during the 19th-century. The mythology behind some of the world's most famous leaders such as Abraham Lincoln, Julius Caesar, Mahatma Gandhi, and Alexander the Great helped contribute to the notion that great leaders are born and not made. In many examples, it seems as if the right man for the job seems to emerge almost magically to take control of a situation and lead a group of people into safety or success. Historian Thomas Carlyle also had a major influence on this theory of leadership, at one point stating that, "The history of the world is but the biography of great men." According to Carlyle, effective leaders are those gifted with divine inspiration and the right characteristics Some of the earliest research on leadership looked at people who were already successful leaders. These individuals often included aristocratic rulers who achieved their position through birthright. Because people of a lesser social status had fewer opportunities to practice and achieve leadership roles, it contributed to the idea that leadership is an inherent ability. Even today, people often describe prominent leaders as having the right qualities or personality for the position, implying that inherent characteristics are what make these people effective leaders. 2. “TRAIT” THEORY (1907 – 1947) Similar in some ways to "Great Man" theories, trait theories assume that people inherit certain qualities and traits that make them better suited to leadership. Major Assumptions Scientific research has not proved that leadership is based on hereditary factors Leadership was believed to exist only in a few elite individuals Trait theories often identify particular personality or behavioral characteristics shared by leaders. If particular traits are key features of leadership, then how do we explain people who possess those qualities but are not leaders? This question is one of the difficulties in using trait theories to explain leadership. The trait theory suggests that individual personalities are composed broad dispositions. Consider how you would describe the personality of a close friend. Chances are that you would list a number of traits, such as outgoing, kind and even-tempered. A trait can be thought of as a relatively stable characteristic that causes individuals to behave in certain ways. The trait approach to personality is focused on differences between individuals. The combination and interaction of various traits forms a personality that is unique to each individual. Trait theory is focused on identifying and measuring these individual personality characteristics. Gordon Allport’s Trait Theory In 1936, psychologist Gordon Allport found that one English-language dictionary alone contained more than 4,000 words describing different personality traits. He categorized these traits into levels: 1. Cardinal Traits ✓ Traits that dominate an individual’s whole life, often to the point that the person becomes known specifically for these traits. ✓ People with such personalities often become so known for these traits that their names are often synonymous with these qualities. ✓ Consider the origin and meaning of the following descriptive terms: Freudian, Machiavellian, narcissism, Don Juan, Christ-like, etc. ✓ All port suggested that cardinal traits are rare and tend to develop later in life. 2. Central Traits ✓ These are the general characteristics that form the basic foundations of personality. ✓ These central traits, while not as dominating as cardinal traits, are the major characteristics you might use to describe another person. ✓ Terms such as intelligent, honest, shy and anxious are considered central traits.  ✓ Secondary Traits ✓ These are the traits that are sometimes related to attitudes or preferences and often appear only in certain situations or under specific circumstances. ✓ Some examples would be getting anxious when speaking to a group or impatient while waiting in line. ✓ While most agree that people can be described based upon their personality traits, theorists continue to debate the number of basic traits that make up human personality. ✓ While trait theory has objectivity that some personality theories lack, it also has weaknesses. ✓ Some of the most common criticisms of trait theory center on the fact that traits are often poor predictors of behavior. ✓ While an individual may score high on assessments of a specific trait, he or she may not always behave that way in every situation. Another problem is that trait theories do not address how or why individual differences in personality develop or emerge. 3. “BEHAVIORAL” THEORY (1950s – 1960s) Behavioral theories of leadership are based upon the belief that great leaders are made, not born. Rooted in behaviorism, this leadership theory focuses on the actions of leaders not on mental qualities or internal states. Major Assumption There is one best way to lead Leaders who express high concern for both people and production or consideration and structure will be effective According to this theory, people can learn to become leaders through teaching and observation. Behavioral psychology is a theory of learning based upon the idea that all behaviors are acquired through conditioning. Conditioning occurs through interaction with the environment. According to behaviorism, behavior can be studied in a systematic and observable manner with no consideration of internal mental states. There are two major types of conditioning: A. Classical conditioning ✓ Classical conditioning is a technique used in behavioral training in which a naturally occurring stimulus is paired with a response. ✓ These techniques are also useful in the treatment of phobias or anxiety problems. B. Operant conditioning ✓ Operant conditioning is a method of learning that occurs through rewards and punishments for behavior. ✓ Through operant conditioning, an association is made between a behavior and a consequence for that behavior. ✓ We can find examples of operant conditioning at work all around us. Consider the case of children completing homework to earn a reward from a parent or teacher, or employees finishing projects to receive praise or promotions. ✓ In these examples, the promise or possibility of rewards causes an increase in behavior, but operant conditioning can also be used to decrease a behavior. The removal of an undesirable outcome or the use of punishment can be used to decrease or prevent undesirable behaviors. For example, a child may be told they will lose recess privileges if they talk out of turn in class. This potential for punishment may lead to a decrease in disruptive behaviors. 4. “PARTICIPATIVE LEADERSHIP” THEORY Participative leadership theories suggest that the ideal leadership style is one that takes the input of others into account. These leaders encourage participation and contributions from group members and help group members feel more relevant and committed to the decision-making process. In participative theories, however, the leader retains the right to allow the input of others. 5. “SITUATIONAL” THEORY (Blanchard and Hersey) 1950s – early 1980s Situational theories propose that leaders choose the best course of action based upon situational variables. Different styles of leadership may be more appropriate for certain types of decision-making. Major Assumption Leaders act differently depending on the situation The situation determines who will emerge as a leader Different leadership behaviors are required for different situations Situational Leadership Model Paul Hersey and Ken Blanchard designed these four styles of situational leadership on the basis of a parabola. The horizontal axis the level of maturity (independence of the employee) is indicated in the gradation high to low. In the opposite direction on the horizontal axis the directive behavior from low to high is indicated. By this is meant the  level of direction provided to the employee. On the vertical axis, they indicate low to high supportive behavior; the degree of support to the employees. Four levels of maturity in situational leadership model: S1. Directing: a lot of direction by the leader and little support; low competence and low motivation. S2. Coaching: a lot of direction by the leader and a lot of support; low competence and high motivation. S3. Supporting: little direction by the leader and a lot of support; high competence and low motivation. S4. Delegating: little direction by the leader and little support; high competence and high motivation. According to Paul Hersey and Ken Blanchard a leader will have to adapt his style to level of maturity of the employee. As the maturity increases, the independence of the employee also increases accordingly. Consequently, four leadership styles are created within situational leadership. S1: Telling (Directing) At this level, the leader has to deal with employees that are not competent and (still) unmotivated. This may have different causes. New and/or inexperienced employees are not capable enough to carry out tasks independently. It may be experienced as threatening when an employee is not competent enough to perform a task. This might cause him to postpone the task or do this unwillingly. Good instruction and monitoring of the entire work process would be the best style of leadership in this situation. This is also sometimes referred to as task- oriented leadership with little or no concern for human relationships and support. The employee will receive a lot of direction from the leader when it comes to the tasks they have to fulfil. Not just the final objective is made clear, but also the steps that have to be taken along the way. That is why he needs specific instructions in the form of composed tasks. The leader makes the final decisions. It helps to compliment the employee about progress he is making and not overburdening him with too much information at once. It is a good idea for a leader to have the employee repeat in his own words what he is supposed to do. That way, it becomes clear if the instructions have been correctly understood. S2: Selling (Coaching) At this level the employees have a desire to work independently but they are not capable of doing this yet. They are employees who have not reached full maturity and are hindered by circumstances for example a change or a reform of the organization. This employee wants to set to work enthusiastically but he cannot work independently because of his lack of skills and knowledge. A situation like this might make an employee insecure. By explaining his decision-making and by listening to the employee and giving him undivided attention, the leader is guiding him. This style can be compared to the consultative leadership style. This leadership style is also called selling for a reason; the leader has to ‘sell’ the tasks to the employee and convince him that he is able to do them. Specific instructions are important here, as are communication at a level of equals. The leader makes the decisions, but it is good if the employee asks questions and wants to know the purpose of the task. When the employee shows progress, he should be complimented to make him feel confident about his skills. S3: Participating (Supporting) At this level, the employees are capable but (temporarily) unwilling. They are qualified workers but because of the number of tasks, they might get the idea that they are being inundated with work. This can make them insecure and reluctant. To take away this insecurity, it is important that the leader confers with the employees and supports them in their work. By having employees participate in the decision-making process, acceptance will increase and the employees will be able to work independently again. It is also possible that a mistake has been made for which the employee blames himself. This can make him stagnate and lose confidence. That is why support from the leader is important. The employee needs to be stimulated and has to get back the confidence to make decisions independently again. It is a good idea for the leader to give that confidence to the employee and remind him of other tasks and projects that he did do well in the past. This type of employee can benefit from some calm, face-to-face brainstorming or sparring about a question or an issue. That increases his confidence and makes his superior someone he can talk to. The employee is allowed to take some risks and trust in his own abilities. S4: Delegating At this level the employees can and want to carry out their tasks independently, they have a high level of task maturity as a result of which they need less support. Employees inform the leader about their progress of their own accord and at the same time they indicate when problems present themselves or when the work is stagnating. They become motivated because of their independence and as a result a leader does not have to consult with them continuously. 6. “CONTINGENCY” THEORY (Fred Edward Fiedler) Contingency theories of leadership focus on particular variables related to the environment that might determine which particular style of leadership is best suited for the situation. According to this theory, no leadership style is best in all situations. Success depends upon a number of variables, including the leadership style, qualities of the followers and aspects of the situation. 7. “TRANSACTIONAL” THEORY (Max Weber) Transactional theories, also known as management theories, focus on the role of supervision, organization and group performance. These theories base leadership on a system of rewards and punishments. Managerial theories are often used in business; when employees are successful, they are rewarded; when they fail, they are reprimanded or punished. This theory of leadership was first described in by sociologist Max Weber, and further explored by Bernard M. Bass in the early 1980s. Basic Assumptions of Transactional Leadership People perform their best when the chain of command is definite and clear. Workers are motivated by rewards and punishments. Obeying the instructions and commands of the leader is the primary goal of the followers. Subordinates need to be carefully monitored to ensure that expectations are met. 8. TRANSFORMATIONAL THEORIES (Burns) Relationship theories, also known as transformational theories, focus upon the connections formed between leaders and followers. Transformational leaders motivate and inspire people by helping group members see the importance and higher good of the task. These leaders are focused on the performance of group members, but also want each person to fulfill his or her potential. Leaders with this style often have high ethical and moral standards. The Components of Transformational Leadership (Bass) Intellectual Stimulation: o Transformational leaders not only challenge the status quo; they also encourage creativity among followers. The leader encourages followers to explore new ways of doing things and new opportunities to learn. Individualized Consideration: o Transformational leadership also involves offering support and encouragement to individual followers. In order to foster supportive relationships, transformational leaders keep lines of communication open so that followers feel free to share ideas and so that leaders can offer direct recognition of the unique contributions of each follower. Inspirational Motivation: o Transformational leaders have a clear vision that they are able to articulate to followers. These leaders are also able to help followers experience the same passion and motivation to fulfill these goals. Idealized Influence: o The transformational leader serves as a role model for followers. Because followers trust and respect the leader, they emulate this individual and internalize his or her ideals. 9. PATH-GOAL THEORY (Robert J. House) Describe the way that leaders encourage and support their followers in achieving the goals they have been set by making the path that they should take clear and easy Emphasizes that the leader behavior be such as complement the group work setting and aspirations Based upon the expectancy theory of motivation and reflects the workers belief that efforts will lead to successful results. Path-Goal’s Four Styles The Path-Goal model is a theory based on specifying a leader’s style or behavior that best fits the employee and work environment in order to achieve a goal. The goal is to increase an employee’s motivation, empowerment, and satisfaction so they become a productive member of the organization. The Four Styles: The directive path goal clarifying leader behavior refers to situations where the leader lets employees know what is expected of them and tells them how to perform their tasks. The theory argues that this behavior has the most positive effect when the employees’ role and task demands are ambiguous and intrinsically satisfying. The achievement-oriented leader behavior refers to situations where the leader sets challenging goals for employees, expects them to perform at their highest level, and shows confidence in their ability to meet this expectation. Occupations in which the achievement motive were most predominant were technical jobs, sales persons, scientists, engineers, and entrepreneurs.  The participative leader behavior involves leaders consulting with employees and asking for their suggestions before making a decision. This behavior is predominant when employees are highly personally involved in their work. The supportive leader behavior is directed towards the satisfaction of employees’ needs and preferences. The leader shows concern for the employees’ psychological well-being. This behavior is especially needed in situations in which tasks or relationships are psychologically or physically distress  Management Theories MANAGEMENT THEORIES Definition of Management theories ❖ Management theories are the set of general rules that guide the managers to manage an organization. ❖ Theories are an explanation to assist employees to effectively relate to the business goals and implement effective means to achieve the same. ❖ Management Categories A. Scientific management theories B. Classical management theories C. Relational management theories D. Behavioral management theories A. Scientific management theories ❖ Scientific management is a theory of management that analyzes and synthesizes workflows. ❖ Its main objective is improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science to the engineering of processes to management. ❖ Also known as Taylorism A.1. Frederick Winslow Taylor (1856-1915) Father of scientific management The Principles of Scientific Management Productivity would increase if jobs were optimized and simplified 4 Important Principles of Scientific Management o (1) Science, Not Rule of Thumb: ▪ This principle says that we should not get stuck in a set routine with the old techniques of doing work, rather we should be constantly experimenting to develop new techniques which make the work much simpler, easier and quicker. o (2) Harmony, Not Discord: ▪ As per this principle, such an atmosphere should be created in the organization that labor (the major factor of production) and management consider each other indispensable. ▪ Taylor has referred to such a situation as a ‘Mental Revolution’. Taylor firmly believed that the occurrence of a mental revolution  would end all conflicts between the two parties and would be beneficial to both of them. o (3) Cooperation, Not Individualism: ▪ According to this principle, all the activities done by different people must be carried on with a spirit of mutual cooperation. ▪ Taylor has suggested that the manager and the workers should jointly determine standards. ▪ This increases involvement and thus, in turn, increases responsibility. In this way we can expect miraculous results. o (4) Development of Each and Every Person to His / Her Greatest Efficiency and Prosperity: ▪ According to this principle, the efficiency of each and every person should be taken care of right from his selection. A proper arrangement of everybody’s training should be made. A.2. Frank and Lillian Gilbreth Lilian Gilbreth- First Lady of Management Job simplification Use scientific insights to develop a study method based on the analysis of work motions, consisting in part of filming the details of a worker’s activities while recording the time it took to complete those activities. Filming o helped to create a visual record of how work was completed and emphasized areas for improvement. o served the purpose of training workers about the best way to perform their work. A.3. Henry Gantt (1861–1919) an associate of Taylor. Best contribution to management: o the task and bonus system. o the Gantt Chart o a tool that provides a visual (graphic) representation of what occurs over the course of a project. o The focus of the chart is the sequential performance of tasks that make up a project.  o It identifies key tasks, assigns an estimated time to complete the task, and determines a starting date for each element of a task. o Gantt differentiated between a terminal element that must be completed as part of a larger task. o The related terminal elements together created what he called the summary element. B. Classical management theory is based on the belief that workers only have physical and economic needs. It does not take into account social needs or job satisfaction, but instead advocates a specialization of labor, centralized leadership and decision-making, and profit maximization. o Hierarchical structure o Specialization o Incentive B.1. Max Weber (1864—1920) Bureaucratic Theory Father of Organization Theory interested in industrial capitalism, an economic system where industry is privately controlled and operated for profit. Weber made a distinction between authority and power. Weber believed that power educes obedience through force or the threat of force which induces individuals to adhere to regulations. types of power in an organization 1. Traditional Power 2. Charismatic Power 3. Bureaucratic Power or Legal Power. CHARACTERISTIC OF THE DESCRIPTION B UREAUCR ACY Each level controls the levels below and is Hierarchical Management controlled by the level above. Authority and Structure responsibilities are clearly defined for each position. Tasks are clearly defined, and employees become skilled by specializing in doing one Division of Labor thing. There is clear definition of authority and responsibility. Employee selection and promotion are based on experience, competence, and technical Formal Selection Process qualification demonstrated by examinations, education, or training. There is no nepotism. Management is separate from ownership, and managers are career employees. Career Orientation Protection from arbitrary dismissal is guaranteed. Rules and regulations are documented to ensure reliable and predictable behavior. Formal Rules and Regulations Managers must depend on formal organizational rules in employee relations. Rules are applied uniformly to everyone. Impersonality There is no preferential treatment or favoritism. B.2. Henri Fayol (1841-1925) Father of General Administration 14 Principles of Management  o Division of Work – When employees are specialized, output can increase because they become increasingly skilled and efficient. o Authority – Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility. o Discipline – Discipline must be upheld in organizations, but methods for doing so can vary. o Unity of Command – Employees should have only one direct supervisor. o Unity of Direction – Teams with the same objective should be working under the direction of one manager, using one plan. This will ensure that action is properly coordinated. o Subordination of Individual Interests to the General Interest – The interests of one employee should not be allowed to become more important than those of the group. This includes managers. o Remuneration – Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensation. o Centralization – This principle refers to how close employees are to the decision-making process. It is important to aim for an appropriate balance. o Scalar Chain – Employees should be aware of where they stand in the organization's hierarchy, or chain of command. o Order – The workplace facilities must be clean, tidy and safe for employees. Everything should have its place. o Equity – Managers should be fair to staff at all times, both maintaining discipline as necessary and acting with kindness where appropriate. o Stability of Tenure of Personnel – Managers should strive to minimize employee turnover. Personnel planning should be a priority. o Initiative – Employees should be given the necessary level of freedom to create and carry out plans. o Esprit de Corps – Organizations should strive to promote team spirit and unity. B.3. Lyndall Urwick (1891-1984) 10 Principles of Management o The principle of the objective – the overall purpose of an organization it its raison d'être. o The principle of specialization – one group, one function.  o The principle of coordination – the purpose of organizing is to facilitate coordination or unity of effort. o The principle of authority – in every organized group, supreme authority must be located somewhere, and there should be a clear line of authority to every member of the group. o The principle of responsibility – a superior may be held accountable for the actions of subordinates. o The principle of definition – jobs, duties and relationships should be clearly defined. o The principle of correspondence – in every position, responsibility and authority should correspond with one another. o The principle of span of control – no person should supervise more than 5–6 line reports whose work is interlocked. o The principle of balance – it is essential that the various units of an organization are kept in balance. o The principle of continuity – reorganization is a continuous process and provision should be made for it. C. Relational Management Theories Relationship management involves strategies to build client support for a business and its offerings and increase brand loyalty. Most often, relationship building occurs at the customer level, but it is valuable between businesses as well. In the era of the Human Relations Theory, the concept of ‘labor motivation’ is given a new meaning compared to the Scientific Management era. The fact that personal attention led to improved performances was a completely new perspective. The term workers is gradually replaced with employee, which more explicitly implies that these people are thinking people who can positively contribute to the organization. C.1. Elton Mayo Founder of the Human Relations Theory.  Hawthorne Experiment Prior to this trend, Elton Mayo already started an experiment in the Hawthorne plants in 1924; the Hawthorne experiment. There was a great deal of discontent among the 30,000 workers in the Hawthorne plants in Chicago in the early twenties of the last century. This was somewhat peculiar, because this phone parts plant already acted extremely progressively towards its workers (through pensions and sickness benefits), something which was almost unthinkable in this period. Elton Mayo and his assistants, including Fritz Roetlishberger, conducted research into changing working conditions. They experimented with light, duration of breaks and working hours. A group of women were exposed to either more or less light. It turned out that, regardless of the amount and duration of lighting, this had a positive effect on their performances. The same was true for rest periods; shorter or longer breaks both led to an increase in labor productivity. Results of Hawthorn experiment Individual employees must be seen as members of a group; Salary and good working conditions are less important for employees and a sense of belonging to a group; Informal groups in the workplace have a strong influence on the behaviour of employees in said group; Managers must take social needs, such as belonging to an (informal) group, seriously C.2. Kurt Lewin (1890-1947) Kurt Lewin's major contributions to management theory are: 1. the concepts of field theory 2. action research (the interweaving of laboratory experiment, systematic research in the field, and client service), 3. the study of group dynamics, and 4. aspects of sensitivity training techniques. Change Model by Lewin C.3. Mary Parker Follet Mother of Conflict Management Coordinating Sociological and psychological aspects of management Superiors and subordinates mutually influence one another Fоllеtt’ѕ major ideas o 1. Constructive Conflict ▪ Fоllеt аrguеѕ thаt conflict, аѕ a nаturаl аnd inеvitаblе раrt оf lifе, does not nесеѕѕаrilу hаvе tо lеаd tо deleterious outcomes. ▪ Rаthеr, if аррrоасhеd with thе right аnаlуtiсаl аnd imаginаtivе tооlѕ a соnfliсt саn рrеѕеnt аn opportunity fоr роѕitivе оr constructive dеvеlорmеnt. o 2. Coordination ▪ Co-ordination mеаnѕ to intеgrаtе (i.е. bring together) thеѕе асtivitiеѕ for асhiеving thе objectives of thе оrgаnizаtiоn. o 3. Power, Authority and Control ▪ Pоwеr аѕ “thе ability tо mаkе thingѕ happen, to be a саuѕаl аgеnt, to initiate сhаngе”.  ▪ Authоritу аѕ vеѕtеd роwеr – thе right to dеvеlор аnd еxеrсiѕе роwеr ▪ Cоntrоl tends tо bе self-control. o 4. Leadership o a leader iѕ “thе man whо саn energize hiѕ group, who knоwѕ hоw tо еnсоurаgе initiаtivе, hоw to drаw frоm аll whаt еасh hаѕ tо givе”. D. Behavioral Theory o The behavioral management theory is often called the human relations movement because it addresses the human dimension of work. Behavioral theorists believed that a better understanding of human behavior at work, such as motivation, conflict, expectations, and group dynamics, improved productivity. o D1. Douglas Mc Gregor (1906 – 1 October 1964) Theory X ▪ Theory X managers tend to take a pessimistic view of their people and assume that they are naturally unmotivated and dislike work. As a result, they think that team members need to be prompted, rewarded or punished constantly to make sure that they complete their tasks. ▪ Work in organizations that are managed like this can be repetitive, and people are often motivated with a "carrot and stick" approach. Performance appraisals and remunerations are usually based on tangible results, such as sales figures or product output, and are used to control staff and "keep tabs" on them. ▪ This style of management assumes that workers: Dislike their work. Avoid responsibility and need constant direction. Have to be controlled, forced and threatened to deliver work. Need to be supervised at every step. Have no incentive to work or ambition, and therefore need to be enticed by rewards to achieve goals. ▪ According to McGregor, organizations with a Theory X approach tend to have several tiers of managers and supervisors to oversee and direct workers. Authority is rarely delegated, and control remains firmly centralized. Managers are more authoritarian and actively intervene to get things done. ▪ Although Theory X management has largely fallen out of fashion in recent times, big organizations may find that adopting it is unavoidable due to the sheer number of people that they employ and the tight deadlines that they have to meet. Theory Y ▪ Theory Y managers have an optimistic, positive opinion of their people, and they use a decentralized, participative management style. This encourages a more collaborative, trust-based relationship between managers and their team members. ▪ People have greater responsibility, and managers encourage them to develop their skills and suggest improvements. Appraisals are regular but, unlike in Theory X organizations, they are used to encourage open communication rather than control staff. ▪ Theory Y organizations also give employees frequent opportunities for promotion. ▪ This style of management assumes that workers are: Happy to work on their own initiative. More involved in decision making. Self-motivated to complete their tasks. Enjoy taking ownership of their work. Seek and accept responsibility and need little direction. View work as fulfilling and challenging. Solve problems creatively and imaginatively. ▪ Theory Y has become more popular among organizations. This reflects workers' increasing desire for more meaningful careers that provide them with more than just money. o D.2. Abraham Maslow Abraham Maslow is among the most prominent psychologists of the twentieth century, and the hierarchy of needs, accompanied by the pyramid representing how human needs are ranked is an idea familiar to most business students and managers. Maslow’s theory is based on a simple premise: Human beings have needs that are hierarchically ranked. Some needs are basic to all human beings, and in their absence, nothing else matters. As we satisfy these basic needs, we start looking to satisfy higher-order needs. Once a lower-level need is satisfied, it no longer serves as a motivator. The most basic of Maslow’s needs are physiological needs. Physiological needs refer to the need for air, food, and water. Imagine being very hungry. At that point, all your behavior will probably be directed at finding food. Once you eat, though, the search for food ceases and the promise of food no longer serves as a motivator. Once physiological needs are satisfied, people tend to become concerned about safety. Are they safe from danger, pain, or an uncertain future? One level up, social needs refer to the need to bond with other human beings, to be loved, and to form lasting attachments. In fact, having no attachments can negatively affect health and well-being The satisfaction of social needs makes esteem needs more salient. Esteem needs refer to the desire to be respected by one’s peers, feeling important, and being appreciated. Finally, at the highest level of the hierarchy, the need for self- actualization refers to “becoming all you are capable of becoming.” This need manifests itself by acquiring new skills, taking on new challenges, and behaving in a way that will lead to the satisfaction of one’s life goals  D.3. Frederick Herzberg Herzberg’s Motivation Theory – Two Factor Theory Herzberg’s Motivation Theory model, or Two Factor Theory, argues that there are two factors that an organization can adjust to influence motivation in the workplace. These factors are: Motivators: Which can encourage employees to work harder. Hygiene factors: These won’t encourage employees to work harder but they will cause them to become unmotivated if they are not present.