THEORIES
Management is very important in any organisation. Organisation can never achieve its objectives without proper management. Management is getting things done with the help of others. In early organisations theories were designed to predict and control the behaviour in organisation. Theories are the best way to manage organisation.
There are three types of theories:
1. Classical theory
2. Humanistic theory
3. Contingency theory
CLASSICAL THEORY
It is the best way to mange the organisation. It emerged in early twentieth century. Classical organisation theory espouses two prospective:
- Scientific management – in scientific management their is good Relation between work and workers.
- Administrative – Addressing issues. In simple words we can say its more concerned about issues.
STRENGTHS OF CLASSICAL THEORY
- Well organised: It is well organised theory. Absolute chain of command. It follows proper structure like first proper planning what to do and then organising, then allocating tasks b/w staff members, giving them proper direction maintain the co-ordination b/w them and end up with making a proper report of job.
Planning
Organising
Staffing
Directing
Coordinating
Reporting
Budgeting
2. EMPHASIS ON BUREAUCRACY: It can be any type, there is no particular rule for its type it can be hierarchical or it can be linear. In hierarchical it follows a proper hierarchy, for example person A is at the top and person B is working under person A. Person C is working under person B. Either it can be liner all persons A, B, C working at same level.
3. TIME MANAGEMENT: Focuses on time and motion studies to learn how to complete a task in the least amount of time. It creates systems to gain maximum efficiency from workers and machines in the factory.
4. DIVISION OF LABOUR: Division of work is the most important characteristic of classical management theory. Complex tasks are broken down into many simple tasks which can be easily performed by workers.
WEAKNESS OF CLASSICAL MANAGEMENT THEORY
1. EMPLOYEES HAVE MINIMUM POWER: There is one way of communication in classical management theory. Decisions are made by top level and forward to downward. No suggestions are taken by bottom side of employees.
2. PREDICTED BEHAVIOUR: In classical management theory behaviour of works is predicted like machines. If the worker works according to prediction, set standards, he/she retains in services otherwise replaced.
3. AUTOCRATIC LEADERSHIP STYLE: Autocratic style were follow in early age. It means that manager were the person who made decisions and perform all other function of management alone as directing, commanding and organising. It means workers were strictly controlled.
HUMANISTIC THEORY OF MANAGEMENT: Human plays vital role in all organisation. Humanistic theory shows that we need to motivate our employees on time to time to achieve the target with measure period of time. Motivation can be rewards, it can be increment etc.
STRENGTHS
1. Employees have maximum power in this theory.
2. Human power is not neglected they are not forced to work like machines.
3. Motivation of employees play great role in humanistic theory, it is in the form of increment, bonus, celebrations on festivals to reduce stress etc.
WEAKNESS
1. It is considered inappropriate theory. Sometimes people (manager) become emotional with employees. It leads to wasted time because employees become lazy.
2. Employees sometimes become dependant .
3. Employees expectations are higher compared to other theories.
CONTINGENCY THEORY
Contingency theory is a class of behavioural theory. It claims that there is no best way to organise management. Several contingency theories were developed in early 1960.
Features of contingency theory:
1. The size its using.
2. The technology it uses.
3. Its operating environment.
Weakness of contingency theory:
1. Least preferred co- worker scale.
2. It fails to explain adequately what organisations should do when there is a mismatch between the leader and the situation in the workplace.
3. It has been criticised because it has failed to explain fully why people with certain leadership styles are more effective in some situations then others.
1.2 Identify Two Organisational Structures. DESCRIBE and COMPARE both.
Organisations are social arrangements for achieving controlled performance in pursuit of collective goals. Defined as ‘a network of personal and social relations not established or required by the formal organisation but arising spontaneously as people associate with one another.’ Keith Davis.
Types of organisation:
1. Functional organisation
2. Divisional organisational
3. Matrix organisation
Functional organisation:
Functional Organisational merits
Logical reflection of functions
Maintains power-prestige of functions
Occupational specialisation
Simplifies training & enables professional development
Tight control
Functional organisation Demerits:
Over specialisation-narrow viewpoints
Reduces coordination between functions
De-emphasis of overall objectives
Slow adaptation to environmental changes
Conflicts over which products have priority
Divisional Organisation:
This type of structure occurs when the organisation is arranged around the main products or services.
Specialisation by location divides the organisation geographically usually according to location of customers.
Divisional Organisational Merits:
Focused on product line & customer needs
Growth & diversity of products
Improves coordination & response to changes in demand pattern
Responsibility of profits at divisional level
Training ground for general managers
Demerits of divisional Organisational:
Requires more persons with general management capabilities
Maintenance of central economical services difficult
Lesser control by top management
May develop a product focus at expense of wider company interests
COMPARISON
In functional structure, the employees are working in departments based on what they are doing.for example we have engineering department, maintenance department,finance department etc. This structure enhances the experience of each function. For example all maintenance engineers are working in the same department and thus they will exchange knowledge and support each other. This structure saves our money because of the economies of scale. This structure makes the co-ordination between different departments more difficult than other structure. It also does not allow flexibility because of the centralisation.
Divisional structure divides, the employees based on the product/customer segment/geographical location. For example each division is responsible for certain product and has its own resources such as finance,marketing, maintenance etc. Accordingly this structure is a decentralised structure and thus allow for flexibility and quick response to environment change.
1.3 Give at least 5 sources of power, influence and authority:
Power
Power may be regarded as the ability to determine the behaviour of others or to decide the outcome of conflict where there is disagreement. It is likely to be resolved according to the relative resources of power available to the participants. There are two types of power:
1. Personalised power
2. Socialised power
Influence
Influence represents an ability to affect outcomes and depends on personal characteristics and expertise. (Tony Bush, 2003)
Authority
Authority is legitimate power which is vested in leaders within formal organisations. (Bolman and Deal,1991)
5 sources of power that leaders should draw on within organisations:
1. Legitimate power – Legitimate power is an officer believing that the orders being given are true even if they may be coming from a higher power that does not normally give out orders to the police. (Brandi Rivera, 2006)
2. Reward power – Reward power is who employee believes that they are going to get some type of reward for doing their job or by following their supervisor order. (Brandi Rivera, 2006)
3. Coercive power – Coercive power is a supervisor pursued an employee to do their work or they can be fired or demoted. (Brandi Rivera, 2006)
4. Expert power – Expert power comes from experience or education. (Darek Kleczek, 2008)
If you are known as an expert, people will count with your opinion and are more likely to follow your leadership.
5. Referent power:- Referent power based on desires others have to identify favourably with us or with what we symbolise to them.
Referent power also refers to the person who has attraction and make one person has an attraction to do whatever their order.
Influence in organisation leadership
1. Rational persuasion: Trying to convenience others by using reason, facts or logic.
2. Inspirational appeals: Trying to build confidence by appealing to others, emotions, ideas or values.
3. Personal appeals: Refers to friendship and family when making decisions.
3.3 Compare two Different Leadership Styles. Identify and Contrast:
A leadership style is a leader’s style of providing direction, implementing plans, and motivating people.[1] There are many different leadership styles that can be exhibited by leaders in the political, business or other fields.
The authoritarian leadership: style or autocratic leader keeps strict, close control over followers by keeping close regulation of policy’s and procedures given to followers. To keep main emphasis on the distinction of the authoritarian leader and their followers, these types of leaders make sure to only create a distinct professional relationship. Direct super vision is what they believe to be key in maintaining a successful environment and follower ship. In fear of followers being unproductive, authoritarian leaders keep close supervision and feel this is necessary in order for anything to be done.
The democratic leadership style: consists of the leader sharing the decision-making abilities with group members by promoting the interests of the group members and by practising social equality. This style of leadership encompasses discussion, debate and sharing of ideas and encouragement of people to feel good about their involvement.
The boundaries of democratic participation tend to be circumscribed by the organisation or the group needs and the instrumental value of people’s attributes (skills, attitudes, etc.). The democratic style encompasses the notion that everyone, by virtue of their human status, should play a part in the group’s decisions. However, the democratic style of leadership still requires guidance and control by a specific leader. The democratic style demands the leader to make decisions on who should be called upon within the group and who is given the right to participate in, make and vote on decisions. Traits of a Good Leader compiled by the Santa Clara University and the Tom Peters Group:
The laissez-faire leadership style: is where all the rights and power to make decisions is fully given to the worker. This was first described by Lewin, Lippitt, and White in 1938, along with the autocratic leadership and the democratic leadership styles. The laissez-faire style is sometimes described as a “hands off” leadership style because the leader delegates the tasks to their followers while providing little or no direction to the followers.If the leader withdraws too much from their followers it can sometimes result in a lack of productivity, cohesiveness, and satisfaction.
Laissez-faire leaders allow followers to have complete freedom to make decisions concerning the completion of their work. It allows followers a high degree of autonomy and self-rule, while at the same time offering guidance and support when requested. The laissez-faire leader using guided freedom provides the followers with all materials necessary to accomplish their goals, but does not directly participate in decision making unless the followers request their assistance.
DELEGATION
Delegation means passing the responsibilities to other people. There are three things we need to emphasis while delegation is:
WHAT to delegate
WHEN to delegate
WHOM to delegate
We can not delegate from upwards to downwards. For example assistant manager can not pass his responsibilities to main manager. Proper delegation is most important task because if you would not delegate the proper task the person to whom you delegate is not having a clear picture of what to do, can’t finish the work in specific period of time. The following pics depicts the process of delegation.
PARTICIPATION
Participation, is a process through which all members of a community or organisation are involved in and have influence on decisions related to development activities that will affect them. That implies that development projects will address those community or group needs on which members have chosen to focus, and that all phases of the development process will be characterised by active involvement of community or organisation members. the management and decision making processes the group uses requires active involvement and transparency of all members which is evident in a free and open exchange of information. As a result of participation, all members of the group or community understand not only the goals and objectives of the project; they also understand the roles and responsibilities each member has in the implementation of the project.
DECISION MAKING
Decision making can be regarded as the resulting in the selection of a course of action among several alternative scenarios. Every decision making process produces a final choice. The output can be an action or an opinion of choice. The following figure shows the proper process of decision making.
Decision making involve the following steps:
Objectives must first be established.
Objectives must be classified and placed in order of importance.
Alternative actions must be developed.
The alternative must be evaluated against all the objectives.
The alternative that is able to achieve all the objectives is the tentative decision.
The tentative decision is evaluated for more possible consequences.
The decisive actions are taken, and additional actions are taken to prevent any adverse consequences from becoming problems and starting both systems (problem analysis and decision making) all over again.
There are steps that are generally followed that result in a decision model that can be used to determine an optimal production plan.
TASK 2:
2.1 The relevance and application of the Motivation Theories to today’s workplace.
THEORIES
RELEVANCE
APPLICATION
- OPERANT CONDITION :-
It is based on scientific theory.In this the results are predicted. For example
A->B
A is manger and B is employee.According to this theory manager A is suppose to do something to encourage employee B to get the work done in motivational way. It has following types:
1. Positive reinforcement: Giving rewards to employees to to increase productivity.
2. Negative reinforcement: This is the process of having a stress of taken away from you.
3. Extinction: If is based on outputs. For example absent from school means zero results.
4. Punishment: If employees are not working giving them punishment, like cut off salary.
Both theories are relevant because we can see from both the theories we can work more if we get recognition or getting rewarded.
In appliance we can say we can easily implement these by giving bonus, time to time increment, etc.
NEED OF HIERARCHY
According to this theory their are five types of need that is supposed to be fulfil to achieve target within specific period of time.
1. Physiological need: Breathing, water, food, sex, sleep etc.
2. Safety: Security of body, of employments, health etc.
3. Love: Friendship, family etc.
4. Esteem: self esteem, achievements, targets etc.
5. Self actualisation: Creativity,problem solving etc.
Both theories are relevant because we can see from both the theories we can work more if we get recognition or getting rewarded.
In appliance of need of hierarchy theory manger suppose to fulfil all these five needs by providing proper safety, lunch time, human friendly environment etc.
2.2
Two managerial approaches to motivation and their contributions:
1. Autocratic
2. Bureaucratic
Autocratic:
Autocratic leadership is an extreme form of transaction leadership, where a leader exerts high levels of power over his or her employees or team members. People within the team are given few opportunities for making suggestions, even if these would be in the team’s or organisation’s interest.
Bureaucratic:
Bureaucratic leaders “work by the book”, ensuring that their staff follow procedures exactly. They are very strong leaders,we can trust them that is good advantage of this.
TASK 3
Leadership
A process in which one individual influences others toward the attainment of group/organisational goals is called leadership. Is a process of social influence Cannot exist without a leader and some followers. There is voluntary action by the followers changes the followers’ behaviours.
DIFFERENCE OF LEADERSHIP AND MANAGEMENT
Management and leadership are two overlapping terms which confuse many people. Leadership and management are complementary for each other. Both go hand in hand. But they are not the same things. The difference between them can be expressed in the following way.
Planning, organising, staffing, directing, controlling and coordinating are the functions of management and managers who perform these functions has formal authority in the office while inspiration and motivation is the job of leadership and formal authority is not necessary . The following features differentiate their role:
1. The managers are administrator while the leaders are innovator.
2. The manager copies the rules and applies them while the leaders formulate rule and regulation.
3. The manager maintains the system and environment while the leader develops the system and environment.
4. The focus of manager is the system and structure of organisation while the focus of leader is people.
5. The manager controls the system to achieve targets while the leader creates the trusts to said purpose.
6. The vision of manager is shorter than the vision of the leader.
7. The questions of manager are how and when while these are what and why in case of
leader.
8. The manager follows the rule and regulation while the leader formulates rule and regulation.
9. The manager accepts the status quo while the leader challenges it.
10. The manager does things right while the leader does the right thing.
These ten differences clearly differentiate between management and leadership. The leadership is broader term which influences other people through his leadership skills
to attain goals while manager use authority to get work from subordinates. A manager may be or may not be a good leader.
3.1.2 IMPACT OF LEADERSHIP AND MANAGEMENT ROLES ON ORGANISATION:
IMPACT OF LEADERSHIP IN ORGANISATION:
Effective leaders bring people together and enable them to work together to achieve a common goal. By establishing a vision, communicating a strategy and motivating individuals to cooperatively solve problems, these leaders ensure organisational success. By aligning their subordinates’ development goals to specific, measurable, attainable, realistic and timely strategic objectives, you can establish a functional structure conducive to continuing success. By developing the leadership dimensions of experience, problem solving ability, personality and self-awareness, you can positively impact your organisation’s structure and ongoing profitability.
Experience
By ensuring that subordinates have the expertise, experience and wisdom to complete job tasks, effective leaders ensure organisational readiness. Using their own wisdom, effective leaders attract, interview, hire and train competent resources that enable the organisation to conduct complex operations. By offering training and development courses, you ensure that your company always has employees capable of taking on managerial roles when more experienced employees retire or leave for other jobs. Effective succession planning ensures that your organisational structure remains intact and stable. All roles remain filled with competent staff members.
Problem Solving Ability
Effective leaders analyse work flow to establish clear policies and procedures. They examine operational metrics to ensure production levels produce the desired results. If not, they implement programs to solve problems, such as product defects, low customer satisfaction or high costs. By analysing the work environment to ensure quality using proven management strategies, such as the Six Sigma methodology for process improvement, leaders solve complex problems that cause waste and low profit. By organising work so that disruptions and delays get minimised, you ensure the success of your company.
Personality
As an effective leader, you use your values and beliefs to motivate your workforce. By setting a positive example, successful business professionals establish a clear mission and objectives for their organisations. You inspire others to follow you by your committing to achieving the defined goals.
Self-Awareness
By being aware of your limitations, you set realistic goals for yourself and your organisation. By focusing on the tasks required to build a successful enterprise rather than punish others who don’t follow your commands, you stand a greater chance of achieving the loyalty and dedication of subordinates need to handle complex operations. By acting with integrity and honesty, you ensure that employees, customers and business partners want to conduct business with you. Creating an environment of trust and safety enables a stable organisational structure where innovative approaches to solving technical or theoretical problems can thrive.
IMPACT OF MANAGEMENT IN ORGANISATION
Managers have to perform many roles in an organisation and how they handle various situations will depend on their styles of management.
A management style is an overall method of leadership used by a manager.
Three main styles:
Autocratic
Democratic
Laissez-faire
Autocratic
An autocratic or authoritarian manager makes all the decisions, keeping the information and decision making among the senior management.
The direction of the business will remain constant, and the decisions will be quick and similar, this in turn can project an image of a confident, well managed business.
Subordinates may become dependent upon the leaders and supervision may be needed;
This style can decrease motivation and increase staff turnover
Democratic (participate)
The manager allows the employees to take part in decision-making: therefore everything is agreed by the majority. (empowerment)
This style can be particularly useful when complex decisions need to be made that require a range of specialist skills;
From the overall business’ point of view, job satisfaction and quality of work will improve.
The decision-making process is severely slowed down, and the need of a consensus may avoid taking the ‘best’ decision for the business.
Laissez-faire (free-rein)
The leader delegates much authority to employees; the leader’s role is peripheral and staff manage their own areas of the business.
The style brings out the best in highly professional and creative groups of employees.
The leader therefore evades the duties of management and uncoordinated delegation occurs;
This leads to a lack of staff focus and sense of direction, which in turn leads to much dissatisfaction, and a poor company image.
2.4 Examination of JOB design/Description:
Plan, direct, or coordinate marketing policies and programs, such as determining the demand for products and services offered by a firm and its competitors, and identify potential customers. Develop pricing strategies with the goal of maximising the firm’s profits or share of the market while ensuring the firm’s customers are satisfied. Oversee product development or monitor trends that indicate the need for new products and services.
Tasks
Formulate, direct and coordinate marketing activities and policies to promote products and services, working with advertising and promotion managers.
Identify, develop, or evaluate marketing strategy, based on knowledge of establishment objectives, market characteristics, and cost and markup factors.
Direct the hiring, training, or performance evaluations of marketing or sales staff and oversee their daily activities.
Evaluate the financial aspects of product development, such as budgets, expenditures, research and development appropriations, or return-on-investment and profit-loss projections.
Develop pricing strategies, balancing firm objectives and customer satisfaction.
Compile lists describing product or service offerings.
Initiate market research studies or analyse their findings.
Use sales forecasting or strategic planning to ensure the sale and profitability of products, lines, or services, analysing business developments and monitoring market trends.
Coordinate or participate in promotional activities or trade shows, working with developers, advertisers, or production managers, to market products or services.
Consult with buying personnel to gain advice regarding the types of products or services expected to be in demand.