Making BMBS easier QUICK WINS

ALL THEORIES
CHAPTER 1
FW TAYLOR:
 Applying scientific techniques
 Relationship between people and task
 Experimentation
 Time and motion study
Four underlying principles
 Science of work
 Workers selection
 Brought together
 Equal division
Criticisms: dull, repetitive and monotonous work
Henri fayol and principles of management:
 Responsibility for effective use of authority
 POC
 CA DIE SOUR
LYDALL URWICK: OSCAR DB
Weber and bureaucracy:
-Rules -Roles -Specialization -Promotion -Hierarchy -Promotion
Three types of authority;
 Traditional: hereditary power
 Rational-legal:
o Rational authority -> used to achieve clear goals
o Legal authority -> impartial system of rules
 Charismatic: special personal qualities that inspire others
Reasons for growth of bureaucracy:

ARTT Business School Muhammad Saad Altaf 1

Making BMBS easier QUICK WINS

 Growing size of organization

 Greater complexity of work
 Scientific management
 Demand for equality of treatment
ELTON MAYO:
 Reason for improving producitivity:
o Motivation and commitment
o Relationship of employees and management
 Arguments:
o Social value
o Self-esteem
o Recognition
o Relationship
 Lack of attention to human relationships
 Involvement of managers with workers
PETER DRUCKER:
 Five areas of management responsibility:
o Setting objectives
o Organizing work
o Motivation and communication
o Performance measurement
o Developing people
 Three aspects of responsibility of manager:
o Managing the business: putting the customer first
o Managing the managers: targets for achievement and monitor
o Managing the workers and their work: set objectives, divide work, motivate,
communicate, measure and develop
ROSABETH MOSS KANTER:

 Long hierarchical chain of command

 Old methods were inefficient
 Faster action, more flexibility, flatter organization
 Rebirth and success depend on 3 factors:

ARTT Business School Muhammad Saad Altaf 2

Making BMBS easier QUICK WINS

o Innovation
o Entrepreneurship
o Participative management
 Empowerment, flatter organisation structures, reduced need for supervision
HENRY MINTZBERG:

 Managerial roles:
o Interpersonal:
 Figurehead: ceremonial role, represent at events, public face
 Liaison: act as link with groups
 Leader: relations between individuals
o Informational:
 Monitor: intelligence gathering system, gather information
 Disseminator: disseminate information
 Spokesman: spokesperson
o Decision-making:
 Initiator of change or improvements: entrepreneurial role
 Disturbance handler: resolving conflicts
 Resource allocator: use of resources
 Negotiator: reach decisions

WILLIAM OUCHI: THEORY Z

 Theme Japan and USA… based companies

 Employment
 Decision-making
 Responsibility
 Promotion
 Control mechanism
 Career path
 Concern

ARTT Business School Muhammad Saad Altaf 3

Making BMBS easier QUICK WINS

MCGREGOR: THEORY X AND Y

 Theory X:
o Dislikes work
o Forced and threat of punishment
o Needs direction, avoids responsibility, no ambition, wants security
 Theory Y:
o Putting effort to work
o Self-direction and self-control
o No supervision or threat
o Responsibility
o Potential
 Implications:
o Theory Y is a participative approach
o Theory Y is not always possible because
 Factory environment
 Situation when manager must exercise his authority
o Theory y can be used to manage managers
o Employees must be positively motivated, work is sufficiently responsible

CHAPTER 2
Value chain: chain of activities to deliver product or service

Primary activities:

 Inbound logistics: receiving, handling, storing

 Operations: converting materials into outputs
 Outbound logistics: storing output and distributing it to the customers
 Marketing and sales: informing customers and making them buy
 Service: after sale services

ARTT Business School Muhammad Saad Altaf 4

Making BMBS easier QUICK WINS

Secondary activities:

 Firm infrastructure: planning, control, finance, quality and culture

 Technology development: product design, process improvement and utilization
 Human resource management: recruitment, training, cpd, rewards, promotion,
remuneration
 Procurement: all of the processes involved in purchasing of materials, equipment and
resource input

Porter’s five forces:

 Threat from substitutes

 Threat of potential entrants
o Economies of scale
o Capital investment requirements
o Access to distribution channels
o Know-how
o Switching cost
o Government regulation
 Bargaining power of suppliers
 Bargaining power of customers
 Competitive rivalry

CHAPTER 3
THE MOST APPROPRIATE ORGANISATION STRUCTURE
Contingency theory of organisation structure is that the most effective organisation structure
for an entity depends on the circumstances. Organsition structure will vary according to:
 Size
 Complexity
 Strategies
 Organisational processes
 Internal and external relationships

ARTT Business School Muhammad Saad Altaf 5

Making BMBS easier QUICK WINS

BURNS AND STALKER: MECHANISTIC AND ORGANIC STRUCTURES

Differences between mechanistic and organic are:
 Decision making
 Bureaucracy vs. Control
 Communication
 Jobs
 Jobs description
 Instructions vs information and advice

MINTZBERG’S FIVE BUILDING BLOCKS FOR ORGANISATIONAL CONFIGURATIONS

 When the strategic apex is powerful, the organisation is entrepreneurial. The leaders give
the organisation its sense of direction and take most of the decisions.
 When the technostructure is dominant, the organisation often has the characteristics of a
bureaucracy, with organising, planning and controlling prominent activities. The
organisation continually seeks greater efficiency.
 When the organisation is divisionalised and local managers are given extensive authority
to run their own division in the way that they consider best, the middle line is dominant.
 Some organisations are dominated by their operating core, where the basic ‘workers’ are
highly-skilled and seek to achieve proficiency in the work that they do.
 In a professional bureaucracy, such as a firm of accountants or lawyers, the middle line
tends to be short (close contact between the partners and staff).

MINTZBERG’S SIX ORGANISATIONAL CONFIGURATIONS

Simple structure:
 Enterpreneurial company
 Direct control of operating core
 No middle line
 Little or no support staff
 Owner director of a company
 Flexible
 React quickly to changes

Machine bureaucracy:

ARTT Business School Muhammad Saad Altaf 6

Making BMBS easier QUICK WINS

 Technostructure is dominant
 Bureaucracy and emphasis on control through regulation
 Less responsive to changes
 Stable for companies in stable environment

Professional bureaucracy:
 Operating core is the dominant
 Found where operating core consist of highly–skilled professional individuals

Divisionalised form:
 Middle line is dominant
 There is a large group of powerful executive managers, and the organisation structure is a
divisionalised structure, each led by a divisional manager
 In some divisionalised structures, divisional managers are very powerful, and are able to
restrict the influence of the strategic apex on decision-making.
Adhocracy:
 Complex and disordered structure
 Extensive use of teamwork and project-based work
 Found in a complex and dynamic business environment, where innovation is essential for
success
 Have working relationships with external consultancies and experts
 Support staff is important

Missionary organisations:
 Members share a common set of beliefs and values
 Unwillingness to compromise or accept change.
 Only appropriate for small entities that operate in simple and fairly static business
environments.

CHAPTER 4
LEWIN: FORCE FIELD ANALYSIS

Two opposing forces;

 Driving forces
ARTT Business School Muhammad Saad Altaf 7
Making BMBS easier QUICK WINS

 Restraining forces

Lewin: unfreeze, change, re-freeze

Unfreeze

 Persuading employees
 Employees encourages to recognize what is wrong with current system
 Employees should be ‘unfrozen’ out of their acceptance of the current situation
 Clear vision about change and encourage employees for change to happen
 Discuss the problems with the employees affected
 Making employees dissatisfied and persuade them for the changes
Movement (change)

 Support for change must be strong

 Sufficient resources to implement the changes.
 Try to involve the employees affected and get them to participate in making the changes.

Re-freeze

 After change , risk of employees might go back to old ways

 Employees should be encouraged to carry on with new ways
 Reward employees for performance

THE GEMINI 4RS

Re-frame

 Desire for change

 Vision of what entity is trying to achieve
 Measurement system

Re-structure

 Examine the organisation structure, and create an economic model showing how value is
created by the entity, and therefore where resources should be used.

ARTT Business School Muhammad Saad Altaf 8

Making BMBS easier QUICK WINS

 Re-design the processes so that they work better to create more value.

Revitalise

 This is the entity’s commitment to the future. Find new products and new markets that fit
well with the entity’s environment
 Invent new businesses.
 Change the rules of competition by making use of new technology.

Renew

 Develop individuals within the organisation. Make sure that employees have the skills that
are needed and that they support the change process.
 Create a reward system to motivate individuals to seek change.
 Develop individual learning and creativity within the entity.

THE 7S APPROACH

Hard factors:

 Strategy: this consists of the formally stated goals and objectives of the entity, and a plan
for allocating the entity’s resources to activities in order to achieve those goals.
 Structure: this is the formal organisation structure of the entity. It is concerned with the
division of responsibilities and the allocation of authority for the achievement of the
strategic goals.
 Systems: these are the systems that operate within the organisation, including
manufacturing systems, procedures and information systems.

Soft factors:

 Staff: these are the people who work for the organisation, and their attributes – numbers,
motivation, loyalty, pay rates, working conditions, career advancement, and so on.
 Skills: these are the skills of key personnel. What can they do well, and what do they do
badly?
ARTT Business School Muhammad Saad Altaf 9
Making BMBS easier QUICK WINS

 Style: style refers to the cultural characteristics of the entity and the people who work in
it, and also the leadership style of its managers.
 Shared values: these are the guiding beliefs about the purpose of the entity and why it
exists, shared by the individuals who work in it. These might be, for example: ‘providing
customer service and satisfaction’, or ‘making profits’, or ‘providing a service to the
community’.

The hard factors are so-called because they are relatively easy to define.

The soft factors are harder to identify and define.

CHAPTER 5
EDGAR SCHEIN: THREE LEVELS OF CULTURE

 The outer skin (artefacts): culture seen and heard by visiting the company
 The inner layer (espoused values):
o Formal code of ethical behaviour
o Stated values and mission statement
o Goals and strategies
 The paradigm (basic underlying assumptions):
o Shared assumptions and attitudes
o Real core culture
o Reason why organisation exist

CORPORATE CULTURE: THE VIEWS OF HANDY:

 Role culture:
o Bureaucracy
o Responsibilities defined by job
o Traditional hierarchical structure
o Formal communication
 Power culture:
o One major source of power

ARTT Business School Muhammad Saad Altaf 10

Making BMBS easier QUICK WINS

o Entrepreneurial organisation
o Based on trust
o Boss tries to influence by his personality
 Task culture:
o Getting task completed
o Flexible organisation
o Successful solution of problems
o Use of work teams
 Personal culture:
o Built around one individual or a group of individuals
o To serve the talented individual(s)
o Unusual for entire organisations, but small parts may be structured in this way

HOFSTEDE: INTERNATIONAL PERSPECTIVES ON CULTURE:

 Power-distance dimension: power is dispersed

 Individualism versus collectivism
 Uncertainty avoidance : group feels threatened and endangered by unexpected and
unfamiliar happenings
 Masculinity versus femininity
 Long-term orientation versus short-term orientation

CHAPTER 7
MASLOW: THE HIERARCHY OF NEEDS

 Lower level is dominant until satisfied

 5 needs:
o Physiological needs
o Safety needs or security needs: security at work
o Social need: to interact with other people
o Esteem needs (or ego needs): feel good about one’s own value and importance

ARTT Business School Muhammad Saad Altaf 11

Making BMBS easier QUICK WINS

o Self-fulfilment needs (self-actualisation needs): human need of growth for

achieving one’s potential
 Significance:
o Approach for improving motivation
o Lower level need must be satisfied first
 Limitations:
o Different needs and different order
o Satisfaction of several needs
o No link of self-fulfillment and improved organisational performance
o Value nature of self-fulfillment
o No explanation of intensity of motivation nor differences of perception
o Self-actualization difficult to achieve in situations

HERZBERG AND MOTIVATION-HYGIENE THEORY (TWO-FACTOR THEORY)

 Identified two or categories of factor:

o Hygiene factors
o Motivator
 Hygiene factors include: company policy, supervision, relationship with boss and
colleagues, working conditions, salary
 Motivator factors include achievement, recognition, the work itself, responsibility,
advancement, growth.
 Management need to make sure that hygiene factors are given proper attention
 In order to motivate individuals, the motivator factors need to be satisfied

VROOM: EXPECTANCY THEORY

o There is a positive correlation between the efforts we make and the performance
that is the result of our efforts – in other words, the more effort we put in, the
better the performance will be, and
o Good performance will result in a desirable reward, and the reward will satisfy an
important need.
o Rewards is a mixture of extrinsic and intrinsic rewards

ARTT Business School Muhammad Saad Altaf 12

Making BMBS easier QUICK WINS

o Factors that determine the strength of an individual’s motivation

 Valence: strength of the individual’s need for rewards
 Expectance: strength of the individual’s belief that by putting in more effort,
he will improve his performance
 Instrumentality: Instrumentality is the belief of an individual that by
achieving a certain performance target, rewards will be obtained.
 Implications:
o Valence; managers should therefore try to find out what their employees do want.
o Expectancy; management must consider ways of trying to increase the expectancy
of their employees
o Instrumentality; managers must keep their promises and make their employees
believe into it

MCCLELLAND: MOTIVATIONAL NEEDS THEORY

 3 needs but one dominant:

o A need for achievement (‘n-ach’)
o A need for authority and power (‘n-pow’)
o A need for affiliation (‘n-affil’).
 Characteristics:
o N-ach person:
 Achievement
 Challenges
 Advancement
 Feedback
 Sense of accomplishment
o N-pow person:
 Influential and effective
 To lead
 Acceptance of ideas
 Status and prestige
o N-affil person:

ARTT Business School Muhammad Saad Altaf 13

Making BMBS easier QUICK WINS

 Friendly relationships
 Interaction
 Be liked
 High regard
 N-ach are best leaders
o N-affil are poor leaders;
 Objectivity
 Unpopular but necessary decisions
o N-pow are also poor leaders;
 Lack ‘people skills’
 Lack flexibility

CHAPTER 8
TRAIT THEORIES OF LEADERSHIP
 Some people are therefore ‘born leaders’.
 Immediate ‘popular’ appeal.
o Physical vitality and energy
o Intelligence and good judgement
o Eager ness to accept responsibility
o Self-confidence
o Competence in the tasks
o Understanding their followers and their needs
o Interpersonal skills
o Having a powerful need for achievement
o A capacity to motivate others
o Decisiveness, trustworthiness, assertiveness & flexibility
 Assumption of trait theory is leadership skills cannot be learned.

LIPPITT AND WHITE’S LEADERSHIP STYLES

 The three types of leadership style for the groups were:
o Authoritarian or autocratic leadership style. The leader continually gave orders and
instructions without offering any consultation.
o Democratic style. The leader offered guidance and encouragement to the children,
and participated actively with the group.
ARTT Business School Muhammad Saad Altaf 14
Making BMBS easier QUICK WINS

o Laissez-faire style. The leader gave the children the knowledge they needed to do
the work, but did not become involved and did not participate in the activities of
the group.

 The conclusions from the study were that:

o The democratic style of leadership was ‘best’, providing high quality of output,
reasonable originality and productivity, and high satisfaction of group members.
o However, some of the boys in the study preferred the authoritarian style of
leadership.
o
BLAKE AND MOUTON’S GRID
o Concern for the task.
o Concern for people.
 Blake and mouton argued that the most effective leaders show high concern for both the
task and for people.

TANNENBAUM AND SCHMIDT’S LEADERSHIP CONTINUUM

 Tannenbaum and schmidt identified seven levels of delegated freedom on their
continuum.
o Tells
o Tells and sells
o Tells and talks
o Consults
o Involves
o Delegates
o Abdicates

THE ASHRIDGE MODEL

Tells style
 Dictatorial.
 The leader makes decisions and imposes them on his subordinates, expecting them to be
obeyed without question.
Sells style
 Autocratic style

ARTT Business School Muhammad Saad Altaf 15

Making BMBS easier QUICK WINS

 An autocratic leader makes his own decisions but then tries to ‘sell’ them to his
subordinates. This means that there is a small amount of consultation about decisions, but
not much.
Consults style
 Democratic style.
 The leader asks for comments from subordinates before making a decision, and the
comments from subordinates might persuade him to change his mind or alter his view
about something.
Joins style
 ‘laissez-faire’ style.
 With this style, the subordinate is allowed to get on with his work and do whatever he
likes, within established guidelines and constraints.
 The potential advantages are:
o High motivation
o High commitment from subordinates.
 The potential problems are that:
o Individuals often need guidance from a leader.
o Co-ordination between subordinates might be poor.
o There is a risk that the actions of subordinates might undermine the authority of
the leader.
o The potential risks are too great if the subordinates are insufficiently
knowledgeable and experienced

LIKERT’S LEADERSHIP STYLES

 Likert identified 4 different leadership styles:
o Exploitative authoritative
o Benevolent authoritative
o Consultative
o Participative
 Likert argued that a participative style of leadership was ideal for the profit-oriented,
human-concerned organisation

FIEDLER’S CONTINGENCY MODEL

 Two leadership styles:
o Task-orientated leadership, and

ARTT Business School Muhammad Saad Altaf 16

Making BMBS easier QUICK WINS

o Relationship-orientated leadership.
 The work situation depends on three factors:
o The relationship between the leader and the subordinates:
o The structure of the task
o The position power of the leader.
 The work situation can be favourable to the leader, unfavourable to the leader, or
something in between (intermediate favourableness).
 Fiedler defined a favourable work situation as:
o Good relationship between leader and subordinates
o A highly-structured task, and
o A large amount of position power for the leader.
 So which leadership style was most effective depends on the circumstances:
o When the work situation is favourable, a task-orientated leader is more effective.
o When the work situation is unfavourable, a task-orientated leader is also more
effective.
o When the work situation is somewhere between favourable and unfavourable
(‘intermediate’), a relationship-orientated leader is more effective.

HERSEY AND BLANCHARD: SITUATIONAL LEADERSHIP THEORY

 Leaders are involved in:
o Directive activity
o Supportive activity
 The amount of involvement by leaders in directive activity and supportive activity can
range from low to high.
 Hersey and blanchard identified four leadership styles, which can be presented in the
form of a 2 x 2 matrix.
 Telling:
o High task focus, low relationship focus
o Low competence and high commitment
 Selling:
o High task focus, high relationship focus
o Some competence, some commitment
 Participating:
o Low task focus, high relationship focus
o High competence, variable commitment
 Delegating:

ARTT Business School Muhammad Saad Altaf 17

Making BMBS easier QUICK WINS

o Leader involved in discussions, but control is with subordinates

o High competence, high commitment

HANDY’S BEST FIT APPROACH

 There are four factors that influence the effectiveness of a leader:
o The leader himself
o The subordinates
o The task
o The environment
 Leadership styles range between autocratic and democratic. It can be somewhere in
between the two extremes.
 The characteristics of the subordinates in a group range between having a low opinion of
themselves and having a high opinion of themselves
 The tasks that are done by a workgroup can range between all routine and repetitive tasks
at one extreme and all complex work at the other extreme.
 The best fit occurs where all three items – leader, subordinates and task – are at the same
position on the spectrum.

ADAIR’S ACTION-CENTRED LEADERSHIP

 John adair’s action-centred leadership model is based on the view that effective leaders
need full command of three aspects of leadership:
o Achieving the task and meeting the demands of the task
o Managing and maintaining the team or group
o Managing individuals within the group and meeting the needs of individuals in the
group.
 A good leader keeps each of these three elements of leadership in balance.
WARREN BENNIS:
o The role of the manager is to administer and maintain systems in order. He referred
to management as transactional leadership, which is ‘doing things right’.
o The function of the leader is to innovate and develop. Bennis referred to leadership
as transformational leadership, which is ‘doing the right things’.
 His comparison of managers and leaders is summarized in the table below.

ARTT Business School Muhammad Saad Altaf 18

Making BMBS easier QUICK WINS

LEADERSHIP AT ALL LEVELS

 Leadership is needed at all levels in an organization.
 He has argued that the role of the leader is not to be an all-knowing problem solver who
knows the answer to every problem

JOHN KOTTER: WHAT LEADERS REALLY DO

 He has argued that leadership is largely concerned with:
o Anticipating change
o Dealing with change, and
o ‘adopting a visionary stance’ – in other words having a vision about what the
organisation is trying to achieve and what it must do to get there.

RONALD HEIFETZ: LEADERSHIP AS AN ACTIVITY

 Successful leaders need this informal authority as well as the formal authority granted to
them by their position.
 Technical problems can be solved by managers (transactional leaders). For adaptive
problems, transformational leadership is needed. Heifetz has referred to problems
requiring significant change as ‘adaptive work’.

ARTT Business School Muhammad Saad Altaf 19

Making BMBS easier QUICK WINS

CHAPTER 9
Team roles: the ideas of belbin
General nature of the role Team role Description
Doing/acting Implementor  Well-organised and
predictable person
 Slow
Shaper  Energy and full of action
 Insensitive to the feelings
Completer/finisher  Seeing a task through to
the end
 Worry too much and may
not trust others
Problem solving/thinking Plant  Solves difficult problems
 Poor communicator and
may avoid details
Monitor/evaluator  Sees the big picture
 Lack energy and ability to
inspire
Specialist  Knowledge and
information
 May be disinterested in
other areas
Concern for people and Coordinator  Helps everyone else
feelings  May want to control
things
Team worker  Cares for individuals and
the team
 Hard to take difficult
decisions
Resource-investigator  New ideas and
possibilities with
enthusiasm
 May be over-optimistic
and lose energy

ARTT Business School Muhammad Saad Altaf 20