Unit 2 - Chapter 12 - Management PDF

UNIT 2 Chapter 12- Management AS OUTLINE  The functions of management, including Mintzberg’s roles of management  Functions, roles and styles  Managerial positions in business (directors, managers, supervisors, worker representatives)  Managerial styles: autocratic, democr...

UNIT 2 Chapter 12- Management AS OUTLINE  The functions of management, including Mintzberg’s roles of management  Functions, roles and styles  Managerial positions in business (directors, managers, supervisors, worker representatives)  Managerial styles: autocratic, democratic, laissez faire  McGregor’s Theory X and Y FUNCTIONS OF MANAGEMENT  Manager: a person who controls, directs and implements the short-term tactical decisions to achieve overall objectives. He/she responsible for setting objectives, organizing resources and motivating staff so that the organization’s aims are met  Managers ‘get things done’ – by working themselves or/and by delegating to other people  Management: the process of dealing with or controlling people and resources. HENRI FAYOL- THE TRADITIONAL FUNCTIONS OF MANAGEMENT  Henri Fayol saw the role of management as controlling and hierarchical, based on a scientific principle. Instructions come from senior managers and are clear to ensure all employees focus on the same overall objective. This is associated with a very traditional form of management. 1. Plan -giving the business a direction for the future 2. Organise -the people and other resources needed 3. Command -leading and motivating people in the organisation 4. Co-ordinate –to ensure consistency between different parts of the business 5. Control and monitor- ensuring that the original plan is being followed.  By their nature, these functions maximize efficiency and may not inspire employees. These focus on meeting business objectives and are based on rational thought, and business decisions are made based on the most important influencing factors- communication is likely to be one directional and top down. CASE STUDY- ALL STYLES DEPT. STORE QUESTIONS MINTZBERG Where Fayol saw management as an orderly process for the efficient use of resources, Mintzberg’s theory sees management as having three specific roles. This theory assumes there are 10 different functions a manager can fulfil, in three different categories. Interpersonal roles – dealing with and motivating employees at all levels of the organisation. Informational roles – acting as a source, receiver and transmitter of information. Decisional roles – taking decisions and MINTZBERG’S ROLES OF MANAGEMENT  Interpersonal roles  Figurehead/leader/liaison  Informational roles  Monitor (collects data)  Disseminator (sending information)  spokesperson  Decisional roles  Entreprenuer  Disturbance handler  Resource allocator  negotiator DIFFERENCES BETWEEN FAYOL AND MINTZBERG’S APPROACHES  The differences between the approaches of Fayol and Mintzberg should not be exaggerated. Mintzberg did not strongly disagree with Fayol. He just thought that the simple division of managerial tasks into five functions was too closed and limiting. He considered that the role of managers was much more open ended.  In particular he stressed the interpersonal nature of many of the tasks that the managers he observed were performing. Mintzberg believed that he had demonstrated, through his systematic framework, that management is much more than the five functions. It must include interpersonal relationships and open-ended discussions with workers and customers.  Despite their apparent differences, these two management thinkers have provided a useful foundation for analysing what it is that managers must do to be effective. MANAGEMENT POSITIONS owner/chairman a figurehead or spokesperson to guide the business to achieve overall objectives. manager /supervisor a leader who will supevise the day tp day tasks, allocating resouces to meet a tactical goal. MANAGEMENT POSITIONS  MANAGEMENT STYLES  Autocratic  Paternalistic  Democratic  Laissez-faire MANAGEMENT STYLES 1. Autocratic:  Leader takes an authoritarian approach.  Decisions are not discussed with workers.  Leader instructs workers what to do and closely controls work.  Workers are made to accept the decision. Where is this useful ? This approach may be useful in a crisis situation where decisions need to be taken quickly. It is typically used in armed forces and the police – as there is a need for swift decision making.  AUTOCRATIC Appropriate ?  if workers are lazy, inexperienced & unwilling to take responsibility.  appropriate in a recession as an autocratic leader will make quick decisions. Limitations ?  it leaves workers feeling demotivated and unimportant.  become bottlenecks because people learn that the best survival skill is to ask the manager first before making a decision.  People learn to wait for instructions or become terrified about making the wrong decision. Creativity is discouraged, and the most talented people eventually leave. PATERNALISTIC The word ‘paternalistic’ means father-like. Paternalistic managers listen, explain issues and consult with workers, but do not allow them to take decisions. The paternalistic manager decides what is best for the business and the workforce, but delegation of decision-making is unlikely.  managers want workers to be happy in their jobs  some consultation might take place, but the final decisions are taken by the managers – there is no true participation in decision-making.  managers do what they think is best for the workers some workers will be dissatisfied with the apparent attempts to consult, while not having any real power or influence  used by managers who have a genuine concern for workers’ interests, but feel that managers know best in the end Appropriate?  when workers are young or inexperienced this might be an appropriate style to employ DEMOCRATIC  Workers play a full part in decision making.  Leader consults workers and discusses decisions.  Organisations, such as the John Lewis Partnership, describe their employees as associates, emphasising their integrated role within the business.  Decision making may be slower due to the amount of discussion that takes place. Appropriate ? Where workers are highly trained, motivated and ambitious, a democratic style of management may be beneficial. DEMOCRATIC Positive ?  This approach may be more effective at motivating workers, as they will feel valued by the organisation. Motivational theorists, such as Maslow and Herzberg, identify responsibility as a factor that will motivate.  In a recession a democratic leader may be better as they will help create a more positive environment. Required ?  Democratic leaders typically need excellent communication skills and the ability to generate two-way communication. LAISSEZ-FAIRE The term ‘laissez-faire’ means ‘let them do it’  This approach allows workers to get on with the job within very broad limits.  This may be seen as an extreme form of democratic leadership, as workers are able to take decisions for themselves.  There is little management input into the work done by employees. LAISSEZ-FAIRE:  This approach may be beneficial where jobs are easily learned and, therefore, workers can be left to get on with it.  It may also be appropriate where worker are highly skilled or have technical expertise, e.g. in research and development.  If workers are essentially lazy, new to work or inexperienced then it will not be successful as workers will avoid work if allowed to. DISASTER AT TS BAKERY The fire at the bakery was a disaster for TS. Eli, chief executive and main shareholder, was the first one to be called by the fire brigade officer at 23:00. ‘The whole building is up in flames – we have not been able to save anything,’ the fire officer shouted. By 08:00 next day, Eli had a plan. He had already contacted the owner of a small competing bakery, who was actually a very good friend, and the property agent from whom he had bought the bakery four years ago. The friend allowed Eli to use one of his spare ovens if he sent his own workers to operate it. This would give him about 50% of his normal capacity. The property agent suggested that Eli rent, for three months, an empty depot on the other side of town. This would take around two weeks to equip as a temporary bakery. Eli gave his employees, who were worried about their jobs, clear instructions. Eli reassured them and they seemed willing to help deal with the crisis. Six of them were sent to his friend’s bakery to start organising production there. Two were sent to the property agent to pick up keys for the depot and had instructions to start cleaning the premises. The remaining three workers were to help Eli salvage what he could from the burnt-out building. Before this could start, Eli telephoned all of his major customers himself to explain the extent of the problem. He promised that production would be back to normal as soon as possible. He then contacted suppliers to inform them of the disaster, to reduce order quantities and to give them the new temporary address for deliveries. QUESTIONS  Analyse the management roles that Eli seems to have demonstrated in this case ,refer to Mintzberg in your answer  Evaluate whether the management style Eli used during the crisis would be appropriate in all situations. ANALYSE THE MANAGEMENT ROLES THAT ELI SEEMS TO HAVE DEMONSTRATED IN THIS CASE ,REFER TO MINTZBERG IN YOUR ANSWER The management roles could be taken from the ten common roles identified by Henry Mintzberg. Some of the key roles suggested by the text include:  liaison − communicating with people outside the business, e.g. the owner of the competing bakery  monitor − collecting information from relevant sources, e.g. the commercial estate agen  disseminator − communicating with staff following the fire  spokesperson − communicating information about the bakery to suppliers and customers  disturbance handler − responding to the changing situation of the business as a result of the fire  resource allocator − deciding how to use human resources.  EVALUATE WHETHER THE MANAGEMENT STYLE ELI USED DURING THE CRISIS WOULD BE APPROPRIATE IN ALL SITUATIONS.  Different styles of management may usefully be defined and brief consideration of the relative merits of each discussed. CONTD.  In this case, the judgement may be that the exceptional circumstances of a fire destroying the bakery justifies a more autocratic style of management. There is no time for consultation and participation and there is potentially great risk to the business if decision making is delayed. However, it might also be noted that as it is a relatively small business more discussion could have been accommodated without any significant impact on the length of decision making.  NOTE: Students often argue that a democratic style of management is the best approach in the modern business world. This may be true in some circum- stances, but not in all circumstances. Sometimes an autocratic style may be appropriate, e.g. during a crisis when a leader needs to show leadership. THE BEST MANAGEMENT STYLE DEPENDS ON MANY FACTORS  There is not one management style that is best in all circumstances and for all businesses. The style used will depend on many factors: The training and experience of the workforce and the degree of responsibility that they are prepared to accept. The amount of time available for consultation and participation. The attitude of managers, or the management culture of the business. This is influenced by the personality and business background of the managers, such as whether they have always worked in an autocratically run organisation. The importance of the issues under consideration. Different styles may be used in  MCGREGORS LEADERSHIP STYLES According to McGregor – as a result of his studies in the 1950’s – one of the most important factor which determines the style of leadership that managers use – is the attitude of managers towards their workers. He identified 2 distinct approaches to the workforce –theory X -Y Theory X managers believe that workers dislike work, will avoid responsibility and are not creative, needing to be controlled and made to work  Autocratic style of leadership Theory Y managers believe that workers can derive as much enjoyment from work as from rest and play, will accept responsibility and are creative and provide solutions to work related problems  Democratic style of leadership MC GREGORS LEADERSHIP STYLES –EVALUATION !  McGregor did not suggest that there are 2 types of workers – X and Y – but the attitudes of management to workers could be described by these 2 theories.  The general view is that workers will behave in a particular way as a result of the attitudes managers have towards them  In practice most managers will have views somewhere between these 2 extremes Kevin has one set way of doing a job and expects everybody to do it his way. He has worked in the steel plant for 25 years, first as an MODERN STEEL MAKING REQUIRES A NEW APPROACH apprentice, then as a skilled steelmaker and finally progressing to works supervisor. His latest promotion was unexpected, especially by his workmates. Although he is very reliable and has never taken a day off work, his colleagues question if he is the right man to manage the steelworks. He is in charge of 30 men and $10 million worth of equipment. Steelmaking can be dangerous work. Kevin knows that he has a great deal of responsibility. He wants the steelworks to be efficient. He believes that this means doing things his way. He deals with the workers in the way he himself was managed in the past. He gives workers clear instructions and tells them to follow set ways of working. If there are any problems, these must be referred to Kevin. Many things have changed since Kevin was an apprentice. There is now virtually no manual work involved. The equipment is now computer-operated and controllers need to be well-educated and good with their brains, not their hands. All of the heavy work is now automated. Workers operate a flexible shift system. They can be asked to do any of the ten different jobs that the steelmaking process involves. They are adaptable and multi-skilled, and are used to solving problems themselves, so Kevin’s style has taken them by surprise and they do not approve of it. 1. Analyse Kevin’s style of management by referring to McGregor’s Theory X. 2. Evaluate whether the management style used by Kevin is the best one to use in the steelworks. CASE STUDY Answer 1  Kevin has an approach to management that suggests Theory X assumptions about workers. The case provides the following evidence:  Kevin has a set way of doing a job and believes that efficiency requires things to be done that way.  He gives clear instructions and does not expect workers to think for themselves. CASE STUDY Answer 3 Appropriate:  Kevin does not have the skills/personality to take a Theory Y approach.  Kevin’s style may ensure that operations are carried out in a consistent manner due to clear instructions being given.  Kevin has 25 years’ experience and is knowledgeable about the operations of the steel industry.  He is in charge of $10 million worth of equipment. It is important that the furnace is run efficiently, therefore clear instructions are beneficial so that all workers know what they have to do. Inappropriate:  The workers that Kevin is responsible for are multi-skilled and educated. They are capable of making decisions and do not need close supervision. Kevin is not making the most of the skills these workers possess.  A Theory X approach will alienate the workers in the blast furnace operation. They will be demotivated as they are being stripped of responsibility and control over their working day.  The workers do not approve of Kevin’s style. There will be an increased likelihood of conflict. CASE STUDY Answer 3 – evaluation  The leadership style may not be appropriate, but it may be the only style that works for Kevin. Although the situation appears to demand a more Theory Y approach, in which there is worker involvement and delegation, some studies have suggested that it is difficult to change someone’s leadership style.  There is no evidence that the employees fit the Theory X assumptions about worker behaviour and attitudes. These are workers who wish to take responsibility and would benefit from a more participative style of management. Kevin’s approach may result in workers gradually fulfilling his expectations of them and they will cease to contribute in any meaningful way to the business. DEMOCRATIC LEADERSHIP − INVOLVING PARTICIPATION AND TWO-WAY COMMUNICATION – IS INCREASINGLY COMMON FOR A NUMBER OF REASONS:  Working people are better educated and have higher expectations of their experience from work. They expect their higher-level needs to be satisfied at work.  Rapid pace of changes at work, as a result of technological and other factors, has increased the need to consult workers and involve them in the process of change.  People find change less threatening and more acceptable if they have been involved in some meaningful way in managing it. Despite these factors, many managers still avoid consultation and worker participation perhaps because ;  they find it very difficult to adapt to these ways.  others may doubt their own ability to discuss issues with workers or to persuade them to take a particular decision.  some managers would rather issue instructions that do not allow for any feedback from workers. EVALUATION – LEADERSHIP STYLES  The most appropriate style of management depends on a wide range of factors, such as the abilities of the manager and employees, the nature of the task and the circumstances of the firm.  For example, faced with a complex problem a manager may well wish to discuss any action with workers if they are well trained and motivated.  A manager with a simple decision to make may feel that discussion is a waste of valuable time.  A manager’s leadership style should, therefore, change according to the specific circumstances and the people involved. Although four styles of leadership are identified in the Coursebook, in practice there is a spectrum of styles from autocratic to laissez- faire. Applied answers recognise that an individual leader often displays a range of styles in the way they manage. Table on page 146