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Management and

Leadership in
Organizations
YTP 111

Basic Ideas of Management


and Leadership

Lecture 2
16th February, 2005
Management
(Administration), Classical
model
Environment

Planning Organizing
Phases in
theory

Phases in
Controlling Commanding practice
Fayol early 1900’s; Gulick
1930’s
 POC3 = planning, organizing,
commanding, coordinating,
controlling
 POSDCORB = planning, organizing,
staffing, directing, coordinating,
reporting, budgeting
Layers of Management
 Operative management
 coordination and control of direct
work
 Business operations management
 competition, markets, resources
 Strategic management
 long term planning, visions, ’reading’
the environment
 Institutional management
Organization Hierarchy
 Operative management
 close to the actual processes
 short time range of planning
 Middle management and experts
 development of their units and
coordination between other same
level units
 plant managers, region managers,
business unit managers
 middle time range of planning
Organization Hierarchy
 Top management
 strategic planning
 overall development and coordination
of organization
 long time range of planning
Mintzberg (1975): The
Roles of Management
 Roles in interaction
 Head of an organization
 Leader
 Center of communication
 Communicative roles
 Surveillant
 Information sharer
 Spokesperson
Mintzberg (1975): The
Roles of Management
 Roles in decision making
 Entrepreneur
 Problem solver
 Resource allocator
 Negotiator
Three basic competences,
Katz (1955)
 Technical skills
 Interpersonal skills
 Conceptual skills
Three basic competences,
Katz (1955)

Level of
management

Technical skills Interpersonal skills Conceptual skills


The Skill Approach
 Katz: skills are learned, not inherited
 Griffin (2000): Diagnostic skills
 to define problems correctly and find correct
solutions
 Decision making skills
 competence to understand the organization
 competence to make decisions when all
information is not available
 Time management
Covey (1989): Seven
Habits of Highly Effective
People
 Be proactive
 Begin with the end in mind
 Put first things first
 Think win-win
 Seek to understand and then to be
understood
 Synergize
 Sharpen the saw
Organizational Behavior
Management OBM
 Leadership of individuals
 Values, attitudes, motivation, learning
 Leadership of groups
 Group dynamics, teams
 Leadership of organizations
 Organization cultures, organization design
 Leadership of OB processes
 Decision making, communication, power,
politics, conflicts, negotiations
 Leadership of organizational dynamics
 Organization change, stress, innovations,
development
The Different Views of
Leadership
Trait definition of leadership Process definition of leadership

Leader Leader

• Height
Leadership • Intelligence Leadership
• Extroversion
• Fluency
Interaction
• Other traits

Followers Followers
Functions of Management
Versus Leadership 1/2
 Management  Leadership
produces Order and produces Change
Consistency and Movement
 Planning / Budgeting  Establishing
 Establish agendas Direction
 Set time tables  Create a vision
 Allocate resources  Clarify big picture
 Organizing / Staffing  Set strategies
 Provide structure  Aligning People
 Make job placements  Communicate goals
 Establish rules and  Seek commitment
procedures  Build teams and
coalitions
Functions of Management
Versus Leadership 2/2
 Management  Leadership
 Controlling /  Motivating and
Problem Solving Inspiring
 Develop  Inspire and
incentives energize
 Generate creative  Empower
solutions subordinates
 Take corrective  Satisfy unmet
action needs
John P. Kotter 1990
Controlling: Elements of a
Control System
 A Detector or sensor
 a device that measures what is
actually happening in the process
 An Assessor
 a device that determines the
significance of what is actually
happening by comparing it with some
standard or expectation of what
should happen
Controlling: Elements of a
Control System
 An Effector
 a device that alters behavior if the
assessor indicates the need to do so
 A Communications Network
 devices that transmit information
between the elements
Controlling: Elements of a
Control System

Control 2. Assessor
Comparison
device with standard

1. Detector 3. Effector
Information
Behavior alteration,
what
if needed
is happening
Entity
being
controlled
Relationships Among
Planning and Control
Functions

Strategy Goals, strategies, policies


Formulation

Management Implementation of
Control strategies

Task Efficient and effective


Control performance of individual tasks
The Management Control
(MC) is not Simple
 The standard is not present
 MC is not automatic
 MC requires coordination among
individuals
 The connection from perceiving
the need for action to determining
the action required to obtain the
desired result may not be clear
 Much MC is self-control
Trait Approach
 One of the first systematic
attempts to study leadership
 Traits were studied to determine
what made certain people great
leaders
 “Great man” theories (Gandhi,
Lincoln, Napoleon)
 Belief that people were born with
these traits and only the great
people possessed them
Trait Approach
 Specific traits that differentiated leaders
from followers
 Stogdill (1948): no consistent set of
traits differentiated leaders from non-
leaders across a variety of situations
 An individual who was a leader in one
situation might not be a leader in another
situation
 Leadership was re-conceptualized as a
relationship between people in a social
situation
Major Leadership Traits
 Intelligence
 verbal ability, perceptual ability, reasoning
 not IQ
 Self-confidence
 self-esteem, self-assurance, can make a
difference
 leadership involves influencing others
 Determination
 desire to get the job done
 initiative, persistence, dominance, drive
Major Leadership Traits
 Integrity
 honesty, trustworthiness
 organizational trust
 Sociability
 pleasant social relationships
 friendly, outgoing, courteous, tactful,
diplomatic
Trait Approach
 Focuses exclusively on the leader
 Certain set of traits vs. effective
leadership
 Mean of personal development
 Criticisms: too much traits,
situations, too subjective
determinations of the most
important traits (self-help books),
teaching traits is a difficult process
Skills Approach
 Definition: the ability to use one’s
knowledge and competencies to
accomplish a set of goals or
objectives
 Katz: the things, the people, the
concepts
Skills Model of Leadership
INDIVIDUAL COMPETENCIES LEADERSHIP
ATTRIBUTES OUTCOMES
General Cognitive Problem Solving Effective
Abilities Skills Problem Solving
Crystallized Cognitive Social Judgment and
Abilities Skills Performance
Motivation Knowledge
Personality

Career Experiences

Environmental Influences
Skills Model of Leadership
 Problem solving skills
 creative ability to solve new and
unusual, ill-defined organizational
problems
 Social judgment skills
 capacity to understand people and
social systems
 perspective taking, social
perceptiveness, behavioral flexibility,
social performance
Skills Model of Leadership
 Knowledge
 accumulation of information and the
mental structures used to organize
that information
 semantic innovation
Skills Model of Leadership
 General cognitive ability
 perceptual processing, information
processing, general reasoning skills,
creative and divergent thinking
capacities and memory skills
 intelligence, often linked to biology
 Crystallized cognitive ability
 intellectual ability that is learned or
acquired over time
Skills Model of Leadership
 Motivation
 must be willing and motivated to
tackle complex organizational
problems
 must be willing to express dominance
 must be committed to the social good
of the organization
 Personality
 psychological trait theory vs. identity
Skills Model of Leadership
 Effective problem solving
 the originality and the quality of
expressed solutions to problem
situations
 Performance
 the duties to which s/he has been
assigned
Skills Model of Leadership
 Career experiences
 challenging job assignments,
mentoring, appropriate training,
hands-on experience in solving new
and unusual problems
 Environmental influences
 the level of skill of subordinates
Style Approach
 Emphasizes the behavior of leader
 Two kinds of behavior: task
behaviors (help group members to
achieve their goals) and
relationship behaviors (help
subordinates feel comfortable with
themselves, with each other, and
with the situation)
 Style studies since late 1940’s
Style Approach: The
Leadership grid
High Country Club Team
Management Management

Middle-of-the-Road
Concern for Management
People
Authority-
Impoverished Compliance
Low Management Management
Low High
Concern for Results
Style Approach: The
Leadership grid
 Authority-Compliance
 people are tools for getting the job
done
 communication is for instructions
 Country Club Management
 personal and social needs of
followers, positive climate
 Impoverished Management
 no commitment, apathetic
Style Approach: The
Leadership grid
 Middle-of-the-Road Management
 compromisers, avoid conflicts,
emphasize moderate levels of
production
 Team Management
 stimulate participation, acts
determined, makes priorities clear,
behaves open-mindedly
 Paternalism/Maternalism
 Opportunism
Situational Approach
 Developed by Hersey & Blanchard
1969
 Different situations demand
different kinds of leadership
 Being an effective leader requires
that an individual adapt her/his
style to the demands of different
situations
 Directive and supportive
Situational Leadership,
Four Styles
High

Supporting Coaching

Supportive
Behaviour
’Relationships’
Delegating Directing

Low
Low High
Directive Behaviour
’Task’
Situational Leadership,
Four Styles
 Directing
 communication focused on goal
achievement, careful supervising of
instructions
 Coaching
 encouragement and soliciting
subordinate input, leader makes the
final decision
Situational Leadership,
Four Styles
 Supporting
 brings out the the employee’s skills
around the task, subordinates control
for day-to-day decisions
 listening, praising, asking for input,
giving feedback
 Delegating
 low level of involvement in planning,
control of details, goal clarification
 leaves the responsibility to
subordinates
Development Level of
Followers

High Moderate Low

D4 D3 D2 D1

Developed Developing
Development Level of
Followers
 D1:
 low competence and high commitment
 D2:
 some competence but low
commitment
 D3:
 moderate to high competence but may
lack commitment
 D4:
 high competence and high
Development Level of
Followers
 Effective leader is able to diagnose
where the subordinates are on the
developmental continuum and
adapt her/his style to it
Situational Leadership
 Strengths
 practical: easy to understand and
apply
 prescriptive: tells what to do or what
to do not in various situations
 leader’s flexibility: employees and
leading styles differ from situation to
situation
 Criticisms
 leader’s styles and employee’s
development level do not always
Transformational
Leadership
 Since late 1970’s
 Part of the ’New leadership’ paradigm
 Attention to the charismatic and
affective elements of leadership
 A process that changes and transforms
individuals
 Emotions, values, ethics, standards,
long-term goals
 Incorporates charismatic and visionary
leadership
Transformational
Leadership
 Burns (1978):
 transactional leadership (focus on the
exchanges that occur between
leaders and their followers)
 transformational leadership (an
individual engages with others and
creates a connection that raises the
level of motivation and morality in
both the leader and the follower)
Transformational
Leadership and Charisma
 Charisma: a special personality
characteristic that gives a person
superhuman or exceptional powers and
is reserved for a few, is of divine origin,
and results in the person being treated
as a leader
 Being dominant, strong desire to
influence others, self-confidence, strong
sense of moral values, strong role
models
Transformational
Leadership and Charisma
Personality Behaviours Effects on
Characteristics Followers
Dominant Sets strong Trust in leader’s ideology
role model
Desire to Belief similarity between
influence Shows competence leader and follower

Confident Articulate goals Unquestioning


acceptance
Strong Communicates
values high expectations Obedience

Express confidence Identification with leader

Arouse motives Emotional involvement,


heightened goals,
Transformational
Leadership Factors
TRANSFORMATIONAL TRANSACTIONAL LAISSEZ-FAIRE
LEADERSHIP LEADERSHIP LEADERSHIP
Factor 1 Factor 5 Factor 7
Idealized influence Contingent reward Laissez-faire
Charisma Constructive Nontransactional
transactions (absence of
Factor 2 leadership)
Inspirational Factor 6
motivation Management by
exception,
Factor 3 active and passive
Intellectual stimulation Corrective transactions

Factor 4
Individualized
consideration
Miniature essay #2
 Team Management/Leadership