LO2

UNDERSTAND DIFFERENT
APPROACHES TO MANAGEMENT AND
LEADERSHIP
Presented and Developed by:
Sandeep Singh Sikerwar

Associate Professor
Maldives Business School,
Mal, Maldives

POINTS TO BE COVERED
Compare the effectiveness of different leadership styles in different organizations.
Explain how organizational theory underpins the practice of management.

Evaluate the different approaches to management used by different organizations.

LEADERSHIP

A SHORT STORY
A group of workers and their leaders are set a task of clearing a road through a dense jungle on a
remote island to get to the coast where an estuary provides a perfect site for a port.

The leaders organise the labour into efficient units and monitor the distribution and use of
capital assets progress is excellent. The leaders continue to monitor and evaluate progress, making
adjustments along the way to ensure the progress is maintained and efficiency increased wherever

possible.
Then, one day amidst all the hustle and bustle and activity, one person climbs up a nearby tree. The
person surveys the scene from the top of the tree.

And shouts down to the assembled group below

Wrong Way!
(Story adapted from Stephen Covey (2004) The Seven Habits of Highly Effective People
Simon & Schuster).

Management is doing things right, leadership is doing the right

things. (Warren Bennis and Peter Drucker)

LEADERSHIP
Leadership is the process of influencing others to work willingly towards
goals, to the best of their capabilities, perhaps in a manner different to
that which they would otherwise have chosen.
(BPP, 2000)

SOME MORE DEFINITIONS

Someone who exercises influence over other people'. Leadership is seen as 'a social process in
which one individual influences the behavior of others without the use or threat of violence'.
Buchanan & Huczynski

The essence of leadership is followership. In other words it is the willingness of people to

follow that makes a person a leader.
Koontz, ODonnell & Weihrich

The ability to influence others, with or without authority.

Peter DeLisle

FUNCTIONS OF A LEADER
Create a vision

Communicate the vision

Energies, inspire and motivate.

Create the culture

TRAITS OF A GOOD LEADER

Intelligence

Initiative

Self assurance

Individuality

Charisma

Inter-personal
skills

Analytical
thinking

Imaginative

Decisiveness

Trust-worthiness

Trust-worthiness

Persuasiveness

Self-motivation

Flexibility

Vision

TELLS-SELLS-CONSULTS-JOINS

Autocratic

Persuasive

Participative

Democratic

Tells

Sells

Consults

Joins

TELLS (AUTOCRATIC)
Characteristics
Manager makes
all the decisions
Issues instructions
which must be
obeyed without
question.

Strengths
Quick decisions
making.
Most efficient,
highly
programmed &
routine work

Weakness
One-way
communication,
lack feedback.
Does not
encourage
contribution or
initiative from
subordinates.

SELLS (PERSUASIVE)
Characteristics
Manager still
makes all the
decisions
Explains them to
subordinates.
Motivate
subordinates to
carry them out
willingly

Strengths

Weakness

Selling decisions to
staff might make
them more willing.
Staff have better
idea what to do in
in when unforeseen
event arises.

Subordinates
make not be
committed to
decisions.
Tells style dressed
up with pretended
concern for
employees' views.

CONSULTS (PARTICIPATIVE)
Characteristics

Strengths

Weakness

Manager confers
with subordinates
and takes their views
and feelings into
account.
Retains the right to
make the final
decision.

Employees are
involved in decisions.
Encourages
motivation through
greater interest and
involvement.
Employees can
contribute
knowledge and
experience.

It might take longer

to reach decisions.
Subordinates limited
view on
organizational issues.
If employees advice
is not taken, they
might consider
process as
meaningless.

JOINS (DEMOCRATIC)
Characteristics

Strengths

Weakness

Leader and
followers make
the decision
together.
Decisions are
based on basis of
consensus or
compromise and
agreement.

Provide high
commitment.
Advantage of the
knowledge and
expertise of
individuals.

Authority of the
manager might
be undermined.
Decision-making
might become a
very long process.
Clear-cut
decisions might be
difficult to reach.

CONTINUUM OF MANAGEMENT STYLES

GOLEMANS STYLES OF LEADERSHIP

Do what I tell you.

Do as I do, know.

Try this.

Coercive

Pacesetting

Coaching

What do you think?

People come first.

Come with me.

Democratic

Affiliative

Authoritative

STAGES OF LEADERSHIP MATURITY

Opportunist
Strong reliance on power that is
authoritarian, hierarchical, and
inflexible.
Uses unilateral power.
Sees the world as battlefield.
Manipulative and deceptive,
reject feedback, externalize
blame, are mistrustful.
Self-interest and self needs rule
the opportunist's world view.

Diplomat
Pluralistic power ie, power
through consent.
Socially expected behavior and
trying to be 'nice' and
cooperative.
Fears breaking rules and any
sort of conflict.
Belonging, loyalty and pleasant
low stress relationships.

Expert
Right way' to do things.
Develop own skills and expertise
to become a 'craft master'.
efficiency
Values efficiency over
effectiveness, consistency,
incremental improvement and
perfection.
Interested in problem solving.

STAGES OF LEADERSHIP MATURITY

Achiever
Effectiveness through, application
of strategies, plans and actions.
Feel like initiators, but are more
likely to take on given goals than
self-create.
Set high standards for themselves
and others.
Feel guilt if they fail to meet
these standards

Strategist
Delighting in paradoxes,
anomalies and unique events.
Sees the big picture and holds
long-term perspective.
Guided by deeply held
principles within a personal
moral code.
Engaged in striving to
comprehend the worldviews of
others and to engage in
participative

Magician
Transformation of society,
organization and self.
Seeks common good, enjoys
interplay of purposes, actions
and results.
Appreciate polarities and
acknowledge the ongoing
relation between them.
Illusive, chameleon-like and may
be powerful

MANAGEMENT
The art of getting things done through
people.
(Mary Parker Follet,1868-1933).

Management is a process which exists to

get results by making the best use of the
human, financial and material resources
available to the organization and to the
manager.
(MichaelArmstrong, 1995)

FUNCTIONS OF MANAGEMENT
controlling

Coordinating

Commanding

Organizing

Planning

Henry Fayol, 1965

APPROACHES

Scientific management

Classical administration

System approach

Bureaucracy

Contingency approach

Human relation approach

Management today

SCIENTIFIC MANAGEMENT
Scientific Management: emphasized

the scientific study of work

methods to improve the productivity of individual workers.

Two of its chief proponents were

Frederick W. Taylor, & Frank and Lillian Gilbreth

SCIENTIFIC MANAGEMENT
F.W. Taylor(Father of Scientific Management), while working at Midvale Steel Co. in
the US in 1878.
Production and pay were poor ,inefficiency and waste were prevalent and most

companies have un-used potential.

Wanted to replace rule of thumb.

Concluded- Management decisions were unsystematic and no efforts were made

to determine the best means of production.
Recommended the application of scientific methods to analyze work and to
determine the methods to complete the tasks efficiently.

PRINCIPLES OF SCIENTIFIC MANAGEMENT

Replace working by "rule of thumb," or simple habit and common sense with scientific method to study work
and determine most effective way to perform.
Match workers to their jobs based on capability and motivation, and train them to work at maximum
efficiency.
Monitor worker performance, and provide instructions and supervision to ensure that they're using
the most efficient ways of working.
Allocate the work between managers and workers so that the managers spend their time planning
and training, allowing the workers to perform their tasks efficiently.
Competitive pay system

Compatibility between organizational and individuals goals.

FUNCTIONS OF SCIENTIFIC MANAGEMENT

Study jobs systematically with a view to improving the way tasks are performed
Select the best employees for the various jobs.
Train the employees in the most efficient methods
Offer incentives (higher wages) to the most able employees and use piece-rate
system of payment to encourage greater effort.
Use rest pauses to combat fatigue
Entrust to supervisor the task of ensuring that employees are using the prescribed
methods

APPLICATIONS
Assembly Line Plants as Prototypical Examples

Prisoners of Taylorism
System of Remuneration (quotas - commission)
Re-Design - Reengineering
Benchmarking

Data are used to refine, improve, change, modify, and

eliminate organizational processes
Lean Manufacturing

ADMINISTRATIVE APPROACH
Administrative Management: Concerned with managing the total organization.

Pioneering theorist:
Henry Fayol
Max Weber

Principles and Elements of Management - How managers should accomplish their

managerial duties.

More Respect for Worker than Taylor

Workers are motivated by more than money

Equity in worker treatment

FAYOLS 14 PRINCIPLES

Principle 1

Principle 2

Principle 3

Division of work - limited set

of tasks

Authority and Responsibility

- Delegation

Discipline - Agreements and

sanctions

Principle 4

Principle 5

Unity of Command One &

only one boss

Unity of Direction Common

objective & direction

FAYOLS 14 PRINCIPLES

Principle 6

Principle 7

Subordination of Individual
Interest to General Interest

Remuneration of Personnel Fair price for services

Principle 8
Centralization - Reduce
importance of subordinates
role

Principle 9

Principle 10

Scalar Chain - Fayols bridge

Order - Effective and

efficient operations

FAYOLS 14 PRINCIPLES

Principle 11
Equity - kindliness and
justice

Principle 12
Stability of Tenure of
Personnel - sufficient time
for familiarity

Principle 13

Principle 14

Initiative - managers should

rely on workers initiative

Esprit de corps - union is

strength loyal members

APPLICATIONS
Positioned communication as a necessary ingredient to successful
management
Fayols elements of management are recognized as the main
objectives of modern managers

Planning - more participatory

Organizing - human relationships and communication
Especially applicable for large organizations (military)

BUREAUCRACY APPROACH
German Sociologist
Theory of Social and Economic Organization (1947)

Principles and Elements of Management - describe an ideal or pure form

of organizational structure (general policy and specific commands)

PRIMARY FOCUS: Organizational Structure

Worker should respect the right of managers to direct activities dictated
by organizational rules and procedures
More DESCRIPTIVE
Bureaucracy allows for the optimal form of authority - rational authority

TYPES OF AUTHORITY
Traditional authority

Charismatic authority

Past customs, person

loyalty

Personal trust in
character & skills

Rational authority
Rational applications of
rules or laws

BUREAUCRACY THEORY
Hierarchy

Specialization and training

Impersonal nature
Professional nature
Rationality
Uniformity

Technical competence
stability

APPLICATIONS
Large organizations guided by countless rules are bureaucracies

Linked with inefficient, slow-moving organizations

Organizations have several characteristics of bureaucracies

HUMAN RELATION APPROACH

Emphasize: Importance of human attitudes, values and relationships for the efficient
and effective functioning.
We have thought that first-class technical training was sufficient in a
modern and mechanical age. As a consequence we are technically
competent as no other age in history has been, and we combine this with
utter social incompetence.
(Elton Mayo, 1975)

FOCUS OF THE APPROACH

People need companionship and belonging, and seek satisfaction in the social
relationships they form at work.
Western Electric Hawthorne plant- see if different lighting affected workers
productivity

Productivity shot up, whatever they did with the lighting.

Conclusion: Management, by consultation with the girl workers, by clear
explanation of the proposed experiments and the reasons for them, by accepting the
workers' verdict in several instances, unwittingly scored a success in two most
important human matters the girls became a self-governing team, and a team that
co-operated wholeheartedly with management

RESULT OF THE STUDY

Individual behavior and sentiments are closely related.

Group influences significantly affected individual behavior.

Group standards established individual output.

Money was less a factor in determining output.

Group standards, group sentiments and security provided by
the group were responsible for higher productivity

SYSTEMS APPROACH
Developed at Tavistock Institute of Human relations in 1950.
System: 'an entity which consists of interdependent parts.
System as an organized, unitary whole composed of
two or more interdependent parts, components, or sub
systems and delineated by identifiable boundaries from
its environmental suprasystem.
(Kast and Rosenzwing, 1979).

Closed system Open systems

Shut off from the environment and
independent of it.

Which is connected to and interacts with

its environment.
Organizations are open social system.

SOCIO-TECHNICAL SYSTEM
Emphasize: Existence of sub-systems, or parts of the bigger system.
Developed: 1951 by Trist and Bamforth.

A structure
Division of labor, authority relationships and communication channels.

A technological system
The work to be done, and the techniques and tools used to do it.

A social system
The people within the organization, the ways they think and interact with each other

APPLICATIONS
Organization is continuously reacting to internal
and external changes
Sub-systems have conflicting goals which must be
integrated, often with some compromise
An awareness of the environment of the
organizations vital if the organization is to survive.

CONTINGENCY APPROACH
Based- Idea that there are universal principles for designing organization,
motivating staff and so on.
In developing management concepts the environment within which the concepts
are to be applied has to be considered.

Internal environment
Structure, Processess, Technology.

External Environment
Social, Economic, Political etc.

Features
Appropriateness of a management technique depends on situation.
If - Then approach.

IMPORTANCE OF CONTINGENCY APPROACH

Encouraging managers to identify and define the particular circumstances of the

situation.
Encouraging responsiveness and flexibility to change.

 Hierarchal
Tall structure
Single function
specialism
Focus on tasks and
responsibilities
Systems

Present
organization

Old organizational
structure

MANAGEMENT TODAY

Everything is
international
Everything is new
Everything is faster
Everything is
turbulent

CHARACTERISTICS OF NEW ORGANIZATION

Culture- Changed
from protective to
productive.

From security to
flexibility

From competitive individualism

to teamwork and co-operation.
Re-integration of
jobs

Multi-skilling
Flexible
working

Empowerment