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1745471
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Module Code: MG5595

Organisational Behaviour
Module Title:
Ashley Braganza
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Presentation, Final Assessment

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How do the behaviours of leaders and managers differ? Give examples to illustrate
your argument.

Managers are people who are given the responsibility in an organization to achieve the
desired objectives and goals through the key functions which include planning, organizing
and controlling while leaders have a sense of direction to align, inspire and motivate. (Kotter,
2001). Behaviour of leaders is categorized into two categories which includes task oriented
leaders and relationship oriented leaders. Anzalone (2017) states that task-oriented leaders
only focus on achieving the task and they are less concerned about the personal needs of
employees and emphasise upon meeting the goals of an organization. A relationship-oriented
leader spends more time on understanding the needs of the employees and provides
incentives such as bonuses, medical leaves, resolving the conflicts and work in the interest of
keeping the employees motivated. (Larman, 2015). Managerial behaviour is divided into
three different categories including immoral, moral and amoral behaviour ; immoral
behaviour which includes managers that make unethical or illegal decisions, moral behaviour
is followed by those managers who follow the ethical standards and amoral behaviour of
management means that managers who believe that business decisions don’t have an ethical
impact and these factors shouldn’t be taken into consideration. (O’Reilly | Safari, 2018)

A leader would paint a vision of what they want to achieve and engage people into bringing
that vision in reality while managers just focus upon achieving and measuring the desired
objectives. (Arruda, 2018) One of the best examples of a good managerial behaviour has
been demonstrated by Alfred P. Sloan’s actions when General Motors was facing conflict.
Charles Kettering was responsible for designing an air cooled copper engine but the
manufacturing division disapproved it so Sloan presented the problem by consolidating all
the functional departments in a committee to discuss the issues regarding the production,
design of the product and he considered the problem a question of people and not the product
itself. (Zaleznik, 2004)

Martin Luther King has been portrayed as one of the best leaders in the history as he had two-
way communication with people he served, he was more of a relationship-oriented leader
who fought for the civil rights of people in United States. He followed a non-violent protest
although his people were being murdered and jailed, but he was committed to a vision to stay
focused on his goal. He was ready to take the challenge although it was a difficult and a very
time-consuming path. (Envisionexperience.com, 2017)

In addition to this it should be taken into account that a managerial behaviour is more
authoritative as compare to the behaviour of a leader. Managers use coercion and use
authority to achieve their objectives while leaders use different kinds of ways to influence
people such as examples set by leaders themselves (Gächter and Renner 2003).
Mcdonald’s CEO Ray Kroc and Oracle’s Larry Ellison use the authoritative management
behaviour in the organizations to streamline the processes and increase their sales for long
term growth objectives. (St. Thomas University Online, 2014) An example of a good leader
is of basketball coach known as John Wooden who used his own pyramid of success to
inspire players and other leaders, he used his own ideas and vision to form this pyramid in
order to influence people. (Hanold, 2014). Finally, it is important for an organization to have
a mix of leaders and managers to succeed (Kotterman, 2006).
Refernces:

Anzalone, C. (2017) Differences Between Task-Oriented Leaders & Relational-Oriented

Leaders. [online] Available at http://smallbusiness.chron.com/differences-between-
taskorientedleaders-relationaloriented-leaders-35998.html [Accessed 15 Nov. 2018].

Arruda, W. (2018). 9 Differences Between Being A Leader And A Manager. [online] Forbes.
Available at: https://www.forbes.com/sites/williamarruda/2016/11/15/9-differences-between-
being-a-leader-and-a-manager/#4486e82e4609 [Accessed 18 Oct. 2018].

Envisionexperience.com. (2017). What Makes a Great Leader?. [online] Available at:

https://www.envisionexperience.com/blog/martin-luther-king-jr-day [Accessed 18 Oct.
2018].

Gächter, S., Renner, E., 2003. Leading by example in the presence of free rider incentives.
paper presented at a Conference on Leadership, March 2003, Lyon

Hanold, M. (2014). Understanding the difference between leadership and management. 1.

pp.31-35.

Kotter, J. P., (2001), “What leaders really do?“, Harvard Business Review, 79(11),
Kotterman, J., (2006), “Leadership vs Management: What’s the difference?”, Journal for
Quality & Participation, 29(2), pp.13-17

Larman, A. (2015). Task-Oriented Vs People-Oriented Leadership Styles.

O’Reilly | Safari. (2018). Business Ethics. [online] Available at:

https://www.oreilly.com/library/view/business-
ethics/0619148195/0619148195_ch10lev1sec5.html [Accessed 18 Oct. 2018].
pp.85- 96

St. Thomas University Online. (2014). What is Autocratic Leadership?. [online] Available
at: https://online.stu.edu/articles/education/autocratic-leadership.aspx [Accessed 18 Oct.
2018].
Some organisations are centralised and some decentralised. Critically explain the
advantages and disadvantages of both

Centralization means that all the important decisions are taken by the top level of
management while decentralization means that all the decisions are taken by the lower level
of management. (Singh, 2015) Centralization results in decreasing the interdepartmental
communication with more formal change of command thus idea generation and creative
solutions are very low.(Souitaris, 2001) Similarly centralization leads to bureaucracy which
further leads to red-tapism, this delays works and also may give birth to discrimination in an
organization (Fleming and Spicer, 2004). In addition to this centralized organizations is
distinctive to subordinates, they don’t make any decisions so their motivation level is very
low and no initiative are taken by them which makes them redundant towards work. (MBA
Knowledge Base, 2018). Also there is lack of secrecy when organizations are centralized, this
is because the decisions are passed from the higher level of management to the lower level.
(Cdn.ttgtmedia.com, 2018)
However on the other hand centralization has its positive affects in an organization, Drucker
(1992) states that if an organization has a lower level of centralization it would permit change
and increase knowledge generation. Similarly, in a centralised organization, common policies
and procedures are implemented which prevents the business from becoming too much
independent. (Lambert, Paoline and Hogan, 2006). In addition to this, there is quicker
decision making which leads to strong leadership in an organization, increasing knowledge
performance. (Pertusa-Ortega, Zaragoza-Sáez and Claver-Cortés, 2010)

On the other hand decentralization refers to involvement of decisions making by the use of
idea generation, experiments to increase the knowledge creation among members. (Lee and
Choi, 2003). Managers at lower level often have the best information available therefore they
are able to make decisions more quickly and efficiently. (Ecker, Van Triest and Williams,
2011) In addition to this delegation of decision making helps to create information processes
more effective and hence facilities adaption when there is high uncertainty in an
organization.( Zabojnik,2002). Similarly managers respond to changes in structure more
effectively in a dynamic environment as adaption reduces delays in the transmission of
knowledge.( Colombo and Delmastro, 2004).

On the contrarily decentralization has its costs as well, managers at lower level may take
decisions which might be not in best interests of the organization because they want to
improve their own performance at the expense of the organization. (Open.edu, 2018)
There is also duplicity of roles in the decentralized organization which hinders the overall
performance. (Oh, Sandhu and Zhang, 2006) Management has to bear high costs of
management information system as they need to monitor the performance of employees so
that decision making affects the organization positively. (Bucic and Gudergan, 2004)
Additionally, there is loss of control as the senior managers give authority to the lower level
of management, senior managers are removed from making any underlying decisions that
affect the organization in any way. ( Teece, 2000) There are also chances of dysfunctional
decision making, this means that a manager would take decision to improve the performance
in an organization but might result in damaging the organization as a whole. For instance, if a
manager decided to keep the costs down in one department, it might have an impact on the
quality and services used by other departments which would disrupt the whole organization.
(Staff, 2006)

References:

Bucic, T. and Gudergan, S. (2004). The Impact of Organizational Settings on Creativity and Learning
in Alliances. M@n@gement, 7(3), p.257.

Colombo, M. and Delmastro, M. (2004). Delegation of Authority In Business Organizations: An

Empirical Test. Journal of Industrial Economics, 52(1), pp.53-80.

Ecker, B., Van Triest, S. and Williams, C. (2011). Management Control and the Decentralization of
R&D. [online] Journals.sagepub.com. Available at:
http://journals.sagepub.com/doi/10.1177/0149206311411507 [Accessed 15 Oct. 2018].

Fleming, P. and Spicer, A. (2003). Working at a Cynical Distance: Implications for Power, Subjectivity
and Resistance. Organization, 10(1), pp.157-179.

GURCAYLILAR-YENIDOGAN, T. and WINDSPERGER, J. (2013). CENTRALIZATION OF DECISION

MAKING AUTHORITY IN INTERORGANIZATIONAL NETWORKS: EVIDENCE FROM THE
AUSTRIAN AUTOMOTIVE INDUSTRY. Journal of Global Strategic Management, 1(7), pp.178-178.

Knowledge Management Enablers, Processes, and Organizational Performance: An Integrative View

and Empirical Examination. (2003). Journal of Management Information Systems, 20(1), pp.179-228.

Lambert, E., Paoline, E. and Hogan, N. (2006). The Impact of Centralization and Formalization on
Correctional Staff Job Satisfaction and Organizational Commitment: An Exploratory Study. Criminal
Justice Studies, 19(1), pp.23-44.

MBA Knowledge Base. (2018). Centralization - Meaning, Advantages and Disadvantages. [online]
Available at: https://www.mbaknol.com/management-concepts/meaning-of-centralization-and-its-
advantages-and-disadvantages/ [Accessed 18 Oct. 2018].

Oh, S., Sandhu, R. and Zhang, X. (2006). An effective role administration model using organization
structure. ACM Transactions on Information and System Security, 9(2), pp.113-137.

Open.edu. (2018). Organisations and management accounting: View as single page. [online]
Available at: http://www.open.edu/openlearn/ocw/mod/oucontent/view.php?printable=1&id=18367
[Accessed 18 Oct. 2018].

Singh, S. (2015). Difference Between Centralization and Decentralization (with Comparison Chart) -
Key Differences. [online] Key Differences. Available at: https://keydifferences.com/difference-
between-centralization-and-decentralization.html [Accessed 18 Oct. 2018].
Souitaris, V. (2001). Strategic Influences of Technological Innovation in Greece. British Journal of
Management, 12(2), pp.131-147.

Staff, C. (2018). The Cost of Decentralization. [online] CIO. Available at:

https://www.cio.com/article/2445769/it-organization/the-cost-of-decentralization.html [Accessed 18
Oct. 2018].

Teece, D. (2000). Strategies for Managing Knowledge Assets: the Role of Firm Structure and
Industrial Context. Long Range Planning, 33(1), pp.35-54.

Zábojník, J. (2002). Centralized and Decentralized Decision Making in Organizations. Journal of

Labor Economics, 20(1), pp.1-22.

Technology is changing the ways in which people interact with each other. Examine
how technology is changing the work people perform and the teams that they work in.

In a dynamic business environment that exists today, technology is the key to growth that
helps to bring efficiency, deliver goods that are of high quality and uses cost effective
methods. (Allen & Morton, 2004). Technology is basically the use of hardware, software’s,
using internet that helps to make processes easier and more simplified. Technology brings
ease to managers as it helps to allocate the resources in an optimum manner, it helps to bring
innovation in the structure of an organization. (Hobday, 2000). With the use of technology,
managers are provided with strategic tools for the organization which helps the employees to
become more productive thus becoming more competitive in the market. (Porter, 2001). It
helps to facilitate and disseminate knowledge among employees, exchange of communication
within different departments is faster via emails and software’s. According to (Scott, 2001)
technology is seen as an enhancing way of bringing collaboration among co-workers which
removes any kind of communication barriers and enables employees to become more creative
and innovative. (Kimani, 2015) When people in an organization work in teams, it brings
composition and flexibility as well as enhances their level of productivity. As the team work
is reachable with a single internet connection, teams don’t have to worry about face to face
meetings. This flexibility because of technology has a lot of benefits for the people in an
organization, it connects teams with members who are geographically dispersed in different
departments or at the different levels of the organization.( Malhorta and Ann Majchrzak,
2005) Similarly, if a member of a team is sick or has any kind of family commitment and
cannot attend a meeting, work space online can help them to keep themselves updated with
whatever tasks he or she has to perform. In addition to this in the past when traditional
methods of work were used, when a team member used to leave an organization a large
amount of files and paperwork used to be transferred to the new employee. However now
with the use of technology, shared space online can record all the previous data which can be
shared easily and not cause any kind of disruption in work. Hence technology can bring
teams together irrespective of where they are keep the work going efficiently. (Majchrzak,
Makhorta, Stamps, and Lipnack, 2004)
Technology has transformed the work place which is very evident; face to face meetings have
not turned into video conferences, emails are used instead of letters or mailrooms, word
processing sheets are used instead of word processor resulting in a substantial portion of
workforce to a digital platform. (Flexjobs,2013). It has made team members realize that
productivity can increase dramatically even if team members cannot have face to face
meetings. This is because team members would have to take time out of their schedule to
arrange meetings which hinders the level of production, with technology teams just have to
share the documents via emails or over phones. (Colin, 2006) The use of technology has
given birth to multichannel synchronous communication which supports all the members to
share information with a common document or a drawing that helps in providing referential
integrity within an organization. When a unified system is being followed by a team, it also
helps the team leader in an organization to evaluate the performance of the members by
keeping a check and balance on the tasks they perform on the online spreadsheets. ( Beise,
Niederman, and Mattord, 2004) Appraisal system which is being adopted by IBM and Adope
is an informal appraisal system which is an example of technology at workplace. This agile
method helps the people in an organization especially the supervisors and managers to
measure the performance of employees by using this collaborative tool. This agile method
also helps the employers to provide feedback to the employees as well. Thus, this appraisal
system is directly associated to gamification at work which is a result of a cultural shift at
workplace. This gamification helps the employees to feel more motivated and engaged when
they are given rewards for good performance. (Widen, 2017)

When we talk about mobile technology, a key advantage that it offers to people at work is
that it allows them to regulate the time, pace, location in the way in which they conduct their
work. (Hill et al., 1996; Towers et al., 2006; and Middleton, 2008). This way it increases the
ability for workers to accommodate their work life (Towers et al., 2006) as they are able to
work from their homes easily (Hill et al., 1998). Furthermore, another advantage perceived
by workers is that technology helps to stay connected with their colleagues, this boosts up
their motivation level and can help them to manipulate their managers by always appearing
“dedicated” and available to work. (Bolino, 1999).

Bhattacherjee (2001), has raised the point that the idea of online firm’s cooperation with
clients is likewise changing business strategies from conventional correspondence stations,
for example, phone and mail to electronic mail and online structures, from full-support of
self-benefit and from mass showcasing to customized advertising. In reference to
(Ghobakhloo, M., & Tang, S. H. 2013).), the Internet has significantly decreased the
expenses of point to multipoint correspondence, making it simpler for representatives and
other data suppliers to supply data to their clients

Employers now use nudges and reminders as an effective strategy to remind their employees
about the deadlines and targets that they need to achieve, they incorporate applications with
these mechanisms. Technology has given birth to artificial intelligence that helps people to
become more interactive especially when it comes to teams that have to perform higher level
tasks. (Fisher et al., 2018) In particular, artificial intelligence helps the managers to manage
the digital environment. For instance, some emails with the help of artificial intelligence can
be sorted into urgent emails or primary emails, categorization of emails have made the work
life much easier. One of the behavioural economist Dan Ariely who worked for google build
up a calendar application which consisted of Artificial intelligence that automatically
scheduled appointments for the tasks which were important. (Gilad,2013)

Virtual meetings have its advantages to the people working in an organization such as helps
the managers to save costs, transfer knowledge and helps them in building a team culture.
(Parke,2018). Technology has helped people to greater work autonomy by giving them
flexibility in terms of an organization especially for employees who have to take care of their
kids or the elderly. (Whitear, 2017) In addition to this technology also helps the people to
reduce commuting time which helps to keep a balance in work life and also there are better
chance of high productivity. Similarly, in case of a natural disaster technology can be a lot
useful, office expenses can be saved as all the data can be retrieved through the latest
technological tools. (Whitear, 2017)

However technology can be also of great disadvantage to people working in an organization

or in teams. According to (Towers et al. 2006) technology can increase the expectation from
employers and co-workers as well as increase the work load as you always feel a sense of
responsibility to reply to official emails or text even if you’re not working. There is negative
impact on people’s personal life because of technology that leads to conflict between family
members as employee might be using their laptops at homes to do their office work. (Hill et
al, 1996; Towers et al., 2006) that leads to a lot of conflicts within family members.
(Middleton, 2008). One of the surveys carried out in 2001 of National Work, Family and
Lifestyle demonstrated that more than 50% of employees believe that mobile technology has
increased the level of stress and also causes mental health problems even when they are
taking time off work, Green (2002) stated that employees believe that they are being
monitored via technology and has further increased the level of stress for them. As stated in
the American Psychological Association 53 percent of Americans are found to be working
on the weekend, 54 percent of them work even when they are sick and 52 percent work
outside the office work hours. With technology people may be given flexitime but if viewed
carefully, it may be providing employees with freedom but leads to working more hours.
(http://www.apa.org, 2018)

While the people are working, constant emails and buzzing of their phones distracts them,
obviously messages and notifications are necessary and helpful. But many employees lose
their focus from the important tasks they have their hands on and results in decreasing the
productivity. Gloria Mark one of the cognitive scientists and her colleague stated that people
compensate by these interruptions by working faster but this way an employee would feel
more stressed, pressurised and frustrated. (Mark, Gudith and Klocke, 2008)

Consequently, due to this the organization experiences decreased employee performance as

well as less optimal business decisions are taken to the lack of adequate time to weight the
advantages and disadvantages that need to be taken into consideration to evaluate the
alterative. (Alter, 2017) But technology has provided us with all the solutions to mitigates its
negative effects, for instance a chatbot that consists of a software feature such as a smart filter
that helps certain applications such as the social media from refreshing. (Weller, 2017)
Artificial intelligence enabled chatbot which was designed by Stanford university computer
scientists helped in cognitive behavioural therapy. This helped to examine the negative
behaviours and thoughts that occurred and helped to emphasise upon the positive behaviour.
(Choudhury, 2013). This technique was used in Deloitte research and has been a solid
intervention that promotes in improving emotional well-being of an employee. (Molteni,
2017)

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