Unit 2 People in Organisations Management and leadership What is a manager?

? Someone responsible for setting objectives, organizing resources and motivating staff so that the organizations aims are met. The functions of management: 1. Setting objectives and planning 2. Organising resources to meet the objectives 3. Directing and motivating staff 4. Coordinating activities 5. Controlling and measuring performance against targets Mintzbergs roles of management 1. Interpersonal roles: They arise from a managers formal authority. In this role, a manager is: Figurehead: symbolic leader of organization Leader: motivating, selecting and training staff Liaison: linking with managers and leaders of other divisions 2. Information roles: Managers act as channels of information from one department to another. They are in a position to do this because of their contacts. In this role, a manager is: Monitor: collecting data Disseminator: passing on information from data collected to relevant departments Spokesperson: communicating information about the organization to stakeholders 3. Decision roles: The managers formal authority and access to information means that no one else is in a better position to take decisions on a department works. In this role, a manager is: Entrepreneur: looking for new opportunities to develop the business Disturbance handler: responding to changing situations Resource allocator: deciding on the spending of finances and allocation of human resources Negotiator: representing the organization in important negotiations Leadership The art of motivating a group of people towards achieving a common objective Qualities of a good leader: 1. Positive self image 2. Genuine ability 3. Realistic aspirations 4. Confident and not arrogant

5. 6. 7. 8.

Self-critical Have vision and commitment Creative and innovative Sense change and respond to it

Important leadership positions in business: 1. Directors responsible for delegating within their department, assisting in the recruitment of senior staff in the department, meeting the objectives for the department set by the board and communicating these departments 2. Managers any individual responsible for people, resources and decision making 3. Supervisors appointed by managers to watch over others 4. Workers representatives elected by workers in order to discuss areas of common concern with managers Leadership styles Style Main feature Drawbacks Autocratic Leader makes all decisions Demotivates staff Gives little info to staff Decisions do not benefit from staff input Supervises work closely One-way communication Workers given limited info Democratic Participation encouraged Time consuming Two-way communication On occasions, quick decisions will be required Workers given info about business to allow full staff involvement Some issues may be too sensitive Paternalistic Managers do what they think is best Some workers will be dissatisfied for the workers with the apparent attempts to consult, while not having real Some consultation might take place, power or influence but final decision is taken by manager no true participation Laissez-faire Managers delegate virtually all Workers may not appreciate the authority and decision-making lack of structure and direction in powers their work this could lead to a lack of security Very broad criteria or limits might be established for the staff to work The lack of feedback may be within demotivating Key definitions Autocratic leadership: a style of leadership that keeps all the decision making at the centre of organization Laissez-faire leadership: a leadership style that leaves much of the business decision making to the workforce Paternalistic leadership: a leadership style based on the approach that the manager is in a better position than the workers to know what is best for the organization Democratic leadership: a leadership style that promotes the active participation of workers in taking decisions

McGregors theory X and Y Theory X manager believes that workers: - Dislike work - Will avoid responsibility - Are not creative Theory Y managers believe that workers: - Can derive as much enjoyment from work as from rest and play - Will accept responsibility - Are creative The best leadership style depends on many factors: 1. The task 2. The organization culture 3. The type of labour force 4. The group size 5. The leadership personality 6. Time Golemans four competencies of emotional intelligence The ability of managers to understand their own emotions, and those people they work with, to achieve better business performance The four competencies managers should try and develop is: 1. Self-awareness: knowing what you feel and having a realistic, selfconfident belief in ones self 2. Self-management: being able to recover quickly from stress, showing initiative and self-control 3. Social awareness: sensing what others are feeling and taking their views into account 4. Social skills: handling emotions in relationships well and accurately understanding different social situations Keywords: Informal leadership a person who has no formal authority but has the respect of colleagues and some power over them Labour turnover the percentage of staff who leave the company at an annual rate Grievances amount of complains

Motivation

What is motivation? The internal and external factors that stimulate people to take actions that lead to achieving a goal Some indicators of poor staff motivation: 1. Absenteeism 2. Lateness 3. Poor performance 4. Accidents 5. Labour turnover 6. Grievances 7. Poor response rate Content theories of motivation focus on the assumptions that individuals are motivated by the desire to fulfill their inner needs Maslows hierarchy of needs

1. Self- Actualisation 2. Esteem 3. Social 4. Safety 5. Psychological 1. 2. 3. 4. 5. Allowed to create own decisions to be creative self-fulfilment Proud of your own work to have status Working in a team to be loved Health and safety risks to feel safe High enough wage to eat

Limitations of Maslows approach: 1. Not everyone has the same needs 2. In practice, it can be difficult to identify the degree at which each need has been met 3. Money is necessary to satisfy physical needs 4. Self-actualisation is never permanently achieved Taylors scientific management Taylor had a very simple view of what motivated people at work MONEY

He felt that workers should receive a fair days pay for a fair days work, and pay should be linked to output Taylors method designed to find the best way to carry out a task at work: 1. Select workers to perform task 2. Observe them performing task and note the key elements of it 3. Record the time taken 4. Identify the quickest method 5. Train all the workers the quickest method 6. Supervise workers to ensure that his best way is carried out to the time constraints 7. Pay workers on the basis of the results based on the theory of the economic man

Mayos Human Relations theory Elton Mayo suggests that a business aiming to maximize productivity must make sure that the personal satisfaction of workers are met for workers to be motivated Management must also work and communicate with informal work groups, making sure their goals fit with the goals of the business. This can be done by involving them in decision making Problems with Mayos theory: 1. It assumes workers and management share the same goals 2. It assumes that communication between workers and management will break down the barriers 3. It will be biased towards management The Hawthorne effect the conclusion of Mayos work: 1. Changes in working conditions and financial rewards have little or no effect on productivity 2. When management consult with workers and take an interest in their work, then their motivation is improved 3. Working in teams and developing a team spirit can improve productivity 4. When some control over their own working lives is given to workers, such as deciding when to take breaks, there is a positive motivational effect 5. Groups can establish their own targets influenced by the informal leaders of the group Herzberg two factor theory 1) Motivating factors aspects of a workers job can leas to positive job satisfaction, such as achievement, recognition, meaningful and interesting work and interesting work and advancement at work 2) Hygiene factors aspects of a workers job that have the potential to cause dissatisfaction, such as pay, working conditions, status and over-supervision by managers McClellands theory McClelland suggested that what motivates people is that they learn in childhood that certain types of behavior lead to gratification

He states that three needs are found to varying degrees in all workers and managers: 1. Achievement Motivation set own goals and achieve them 2. Authority/Power Motivation the need to be influenced effective and to make an impact 3. Affiliation Motivation a need to be liked and popular through friendly relationships

Process theories of motivation Emphasise how and why people chose certain behaviours in order to meet personal goals Vroom Expectancy Theory Vroom suggested that individuals choose to behave in ways that they believe will lead to outcomes they value His expectancy theory states that individuals have different sets of goals and can be motivated if they believe that: There is a positive line between effort and performance Good performance will result in a desirable rewards The rewards will satisfy an important need Non-pay methods of motivation 1. Job rotation doing different jobs during the day, week or month 2. Job enlargement doing different/additional jobs 3. Job enrichment having more responsibility 4. Team working people with different skills working together 5. Award schemes recognizing good work with an award 6. Promotion recognizing a workers achievements 7. Environment safe, warm, light and comfortable conditions 8. Leadership motivating people so that they can perform well 9. Job redesign reconstructing of job 10. Quality circles voluntary groups of workers who meet regularly to discuss work related problems and issues 11. Worker participation workers are actively encouraged to become involved in decision making within the organization 12. Target setting Pay methods of motivation 1. Time rate workers paid per hour 2. Overtime pay extra pay when workers do extra hours 3. Salary an annual amount paid in monthly installment 4. Piece rate workers get paid for the number of pieces or units they complete 5. Commission workers get a percentage of the value of the goods or services they sell 6. Bonus extra lump sum paid for achieving a target 7. Profit-sharing the worker is paid a share of any profit that the firm makes 8. Fringe benefits/perks non-monetary rewards 9. Performance related pay bonus scheme to reward above average work Human Resource Management

What is human resource management (HRM)? The strategic approach to the effective management of an organisations workers so that they help the business gain a competitive advantage HRM focuses on: 1. Planning the workforce needs of the business 2. Recruiting and selecting appropriate staff 3. Appraising, training and developing staff 4. Preparing contracts of employment 5. Involving all managers in the development of their staff 6. Improving staff morale and welfare 7. Developing appropriate pay systems for staff 8. Measuring and monitoring staff performance Workforce planning Analysing and forecasting the number of workers and the skills of those workers that will be required by the organization to achieve its objectives (Workforce audit: A check on the skills and qualifications of all existing workers/managers) The number of staff required in the future depends on many factors: 1. Forecast demand for the firms product 2. The productivity levels of staff 3. The objectives of the business 4. Changes in the law regarding workers rights 5. The labour turnover and absenteeism rate Recruiting and selecting staff Definition of recruitment: the process of identifying the need for a new employee, defining the job to be filled and the type of person needed to fill it, attracting suitable candidates for the job and selecting the best one 1) Establishing the nature of job vacancy and drawing up a job description Job description: a detailed list of the key points about the job to be filled stating all its key tasks and responsibilities 2) Drawing up a person specification Person specification: a detailed list of the qualities, skills and qualifications that a successful applicant will need to have 3) Preparing a job advertisement reflecting the requirement of the job and the personal qualities needed 4) Drawing up a shortlist of applicants 5) Conducting interviews 6) Select candidate 7) Offer job 8) Induction training Internal and External recruitment Benefits of internal Benefits of external Applicants may already be known to Applicants will have new ideas and the selection team practices to the business

 Applicants will already know the organization and its internal methods no need for induction training Culture of organization well understood Often quicker than external Cheaper no advertising Gives internal staff a career structure and a chance to progress Staff will not have to get used to new style of management

Wide choice of potential applicants Avoids resentment sometimes felt by existing staff if one of their former colleagues is promoted above them Standard of applicants could be higher than if just limited to internal staff applicants

Key definitions 1. Training work-related education to increase workforce skills and efficiency 2. On-the-job training instructions at the place of work on how the job should be carried out 3. Off-the-job training all training undertaken away from the business 4. Induction training introductory training programme to familiarize new recruits with the systems used in the business and the layout of the business site 5. Staff appraisal the process of assessing the effectiveness of an employee judged against pre-set objectives 6. Employment contract a legal document that sets out the terms and conditions governing a workers job 7. Dismissal being or sacked from the job due to incompetence or breach of discipline 8. Unfair dismissal ending a workers employment contract for a reason that the law regards as being unfair 9. Disciplinary breach of contract results in consequences (meeting > verbal warning > written warning > formal meetings > fired) 10. Redundancy when a job is no longer required, so the employee doing this job becomes redundant through no fault of his or her own 11. Temporary employment contracts employment contracts that lasts for a fixed time period 12. Part-time employment contract employment contract that is for less than a full working week 13. Flexi-time contract employment contract that allows staff to be called in at times most convenient to employers and employees 14. Outsourcing not employing staff directly, but using an outside agency or organization to carry out some business functions 15. Teleworking staff working from home but keeping contact with the office by means of modern IT communications 16. Hard HRM an approach to managing staff that focuses on cutting costs Bad publicity regarding treatment of workers Increases recruitment and induction training costs De-motivates workers with little job security unproductivity Ignores research findings on Maslow, Mayo and Herzberg as workers are not offered job security, esteem or job enrichment

17. Soft HRM an approach to managing staff that focuses on developing staff so that they reach self-fulfillment and are motivated hard and stay with the business Advantages and disadvantages of using part-time workers Benefits Disadvantages Use of machinery and other equipment It leads to higher training of workers is not available administrative and recruitment costs Use workers at peak times Providing a consistent level of service might also be more difficult Extend operating hours Effective communication becomes a problem