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260 261 Leading and managing people Introduction In this chapter, we attempt to get an overview of the manager’s task (Section 1). What is management? How should people be managed? What do managers actually do to manage resources, activities and projects? Section 2 traces the development of management theory from its focus on efficiency and control (classical and scientific management), through a recognition of the importance of people factors (human relations and neo- human relations), to a more complex understanding that a variety of factors influence the managerial role. In Section 3, we note the difference between a manager and a supervisor: the interface between managerial and non-managerial levels of the organisation. The theories discussed in this chapter are noted specifically in the syllabus study guide, and some (such as Fayol’s five functions of management and Mintzberg’s managerial roles) are particularly useful as a framework for understanding management in general. The major challenge of this topic is learning the detail of the various theories. In today’s organisations, managers are also called upon to be ‘leaders’. We explore leadership as a separate function (and skill-set) of management, in Sections 4 and 5. Topic list Syllabus reference 1 The purpose and process of management E1 (c) 2 Writers on management E1 (a)(b) 3 Management and supervision E1 (a) 4 What is leadership? E1 (a) 5 Leadership skills and styles E1 (d)(e) 262 11: Leading and managing people ~ Part E Leading and managing individuals and teams Study guide Intellectual level E1 Leadership, management and supervision (a) Define leadership, management and supervision and the distinction between these terms. 1 (b) Explain the nature of management: 1 (i) Scientific/classical theories of management Fayol, Taylor (ii) The human relations school – Mayo (iii) The functions of a manager – Mintzberg, Drucker (c) Explain the areas of managerial authority and responsibility. 2 (d) Explain the qualities, situational, functional and contingency approaches to leadership with reference to the theories of Adair, Fiedler, Bennis, Kotter and Heifetz. 2 (e) Explain leadership styles and contexts: using the models of Ashridge, and Blake and Mouton. 2 Exam guide You need a thorough grasp of the work of the writers summarised in Sections 2 – 4 of this chapter. Even simple models could come up in the exam. Areas such as the difference between management and leadership, or specific leadership style models, could also be examined. Perhaps the key challenge of this topic is to grasp the difference between trait theories (leaders simply have certain characteristics), style theories (leaders have different approaches, some of which are more effective than others) and contingency approaches (leaders can adopt specific behaviours to suit the specific situation). 1 The purpose and process of management Management is responsible for using the organisation's resources to meet its goals. It is accountable to the owners: shareholders in a business, or government in the public sector. 1.1 Managing organisations Management may be defined, most simply, as 'getting things done through other people' (Stewart). An organisation has been defined as 'a social arrangement for the controlled performance of collective goals.' This definition suggests the need for management. (a) Objectives have to be set for the organisation. (b) Somebody has to monitor progress and results to ensure that objectives are met. (c) Somebody has to communicate and sustain corporate values, ethics and operating principles. (d) Somebody has to look after the interests of the organisation's owners and other stakeholders. Questio n Management structure John, Paul, George and Ringo set up in business together as repairers of musical instruments. Each has contributed $5,000 as capital for the business. They are a bit uncertain as to how they should run the business, and, when they discuss this in the pub, they decide that attention needs to be paid to planning what they do, reviewing what they do and controlling what they do. FA S T F O RWAR D Key term Part E Leading and managing individuals and teams ~ 11: Leading and managing people 263 Suggest two ways in which John, Paul, George and Ringo can manage the business assuming no other personnel are recruited. Answer The purpose of this exercise has been to get you to separate the issues of management functions from organisational structure and hierarchy. John, Paul, George and Ringo have a number of choices. Here are some extreme examples. (a) All the management activities are the job of one person. In this case, Paul, for example, could plan direct and control the work and the other three would do the work. (b) Division of management tasks between individuals (eg: repairing drums and ensuring plans are adhered to would be Ringo's job, and so on). (c) Management by committee. All of them could sit down and work out the plan together etc. In a small business with equal partners this is likely to be the most effective. Different organisations have different structures for carrying out management functions. For example, some organisations have separate strategic planning departments. Others do not. In a private sector business, managers act, ultimately, on behalf of shareholders. In practical terms, shareholders rarely interfere, as long as the business delivers profits year on year. In a public sector organisation, management acts on behalf of the government. Politicians in a democracy are in turn accountable to the electorate. More of the objectives of a public sector organisation might be set by the 'owners' – ie the government – rather than by the management. The government might also tell senior management to carry out certain policies or plans, thereby restricting management's discretion. 1.2 Authority, accountability and responsibility It is the role of the manager to take responsibility and organise people to get things done. This involves the use of authority and power and implies a hierarchy in which power is delegated downwards while accountability is rendered upwards. Authority is the decision making discretion given to a manager, while responsibility is the obligation to perform duties. Sufficient authority should be granted to permit the efficient discharge of the appointed responsibility. Delegation is essential wherever there is a hierarchy of management. Power is the ability to do something whereas authority is the right to do something; expert power is possessed by those acknowledged as experts. It is easy to confuse authority, accountability and responsibility since they are all to do with the allocation of power within an organisation. 1.3 Authority Organisational authority: the scope and amount of discretion given to a person to make decisions, by virtue of the position he or she holds in the organisation. The authority and power structure of an organisation defines two things. x The part which each member of the organisation is expected to perform x The relationship between the members A person's (or office's) authority can come from a variety of sources, including from above (supervisors) or below (if the position is elected). Managerial authority thus has three aspects. Key term FA S T F O RWAR D 264 11: Leading and managing people ~ Part E Leading and managing individuals and teams x Making decisions within the scope of one's own managerial authority x Assigning tasks to subordinates x Expecting and requiring satisfactory performance of these tasks by subordinates 1.4 Responsibility and accountability Responsibility is the liability of a person to discharge duties. Responsibility is the obligation to do something; in an organisation, it is the duty of an official to carry out assigned tasks. With responsibility, we must associate accountability. Managers are accountable to their superiors for their actions and are obliged to report to their superiors how well they have exercised the authority delegated to them. 1.5 Delegation Delegation of authority occurs in an organisation where a superior gives to a subordinate the discretion to make decisions within a certain sphere of influence. This can only occur if the superior initially possesses the authority to delegate; a subordinate cannot be given organisational authority to make decisions unless it would otherwise be the superior's right to make those decisions. Delegation of authority is the process by which a superior gives a subordinate the authority to carry out an aspect of the superior's job. Without delegation, a formal organisation could not exist. When a superior delegates authority to a subordinate, the subordinate is accountable to the superior. However, the superior remains fully accountable to his superiors; responsibility and accountability cannot be abdicated by delegation. As well as being essential for running an organisation, delegation brings a number of other benefits. (a) Training: subordinates gain experience of problems and responsibility, which helps to prepare them for promotion and contributes to the avoidance of crises of management succession. (b) Motivation: Herzberg found that responsibility was an important factor in job satisfaction and motivation. (c) Assessment: subordinates' performance in relation to delegated responsibility can be used as a measure of their need for further training and experience and their readiness for promotion. (d) Decisions: delegation brings decisions closer to the situations that require them, potentially improving them by having them made by those with most knowledge of the problems and factors involved. 1.6 Authority and power If an organisation is to function as a co-operative system of individuals, some people must have authority or power over others. Authority and power flow downwards through the formal organisation. (a) Authority is the right to do something; in an organisation it is the right of a manager to require a subordinate to do something in order to achieve the goals of the organisation. (b) Power is distinct from authority, but is often associated with it. Whereas authority is the right to do something, power is the ability to do it. Weber put the kind of authority we see in organisations into a wider context, proposing that there were three ways in which people could acquire legitimate power (or authority). (a) Charismatic authority arises from the personality of the leader and his or her ability to inspire devotion through, for example, sanctity, heroism or example. (b) Traditional authority rests on established belief in the importance of immemorial tradition and the status it confers. (c) Rational-legal authority raises from the working of accepted normative rules, such as are found in organisations and democratic governments. Part E Leading and managing individuals and teams ~ 11: Leading and managing people 265 1.7 Power and influence Influence is the process by which one person in an organisation, A, modifies the behaviour or attitudes of another person, B. An individual may have the ability to make others act in a certain way, without having the organisational authority to do so: informal leaders are frequently in this position. The following types of power from different sources have been identified in organisations (by Handy and others). Power Detail Physical power This is the power of superior force Resource power This is the control over resources which are valued by the individual or group Coercive power This is power based on fear of punishment Reward power This is related to resource power. Senior managers may have the power to grant pay increases to subordinates Position power or legitimate power This is the power which is associated with a particular job in an organisation. It is more or less the same as authority Expert power This is power which is based on expertise, although it only works if others acknowledge that expertise Referent power This power lies in the personal qualities of the individual Negative power This is the use of disruptive attitudes and behaviour to stop things from happening Question Power What kind of power is used by a manager who promises a pay increase if productivity rises? A Position power C Reward power B Resource power D Referent power Answer C Reward power: reward power is an aspect of resource power so, while Option B is not incorrect, it is not as good an answer as Option C. 1.8 Power centres The degree of power people exercise, and the types of power they are able to exploit, differ depending in part on their position in the organisation hierarchy. The effects of personal power vary: the chief executive's use of personal power will be more far-reaching in the organisation as a whole than that of a junior manager. 1.8.1 Senior management Senior managers have coercive and reward powers, and most importantly take decisions relating to personnel. 1.8.2 Middle managers Middle managers have a number of power sources. They have some reward power over their own subordinates. They may have expert power and negative power to delay or subvert decisions taken by 266 11: Leading and managing people ~ Part E Leading and managing individuals and teams senior managers. They need legitimate power, hence the need for formal job descriptions, authorisation limits and so on. 1.8.3 Interest groups There are also formal interest groups, that is, groups which are perceived to represent the interests of their members. Such groups tend to wield greater power in conflict situations than their members as individuals. Examples include trade unions and occupational and professional groups. 1.8.4 Departmental power The power exercised by individual departments will vary. Some departments in the technostructure exercise power by the use of functional authority, for instance, by specifying procedures. Other departments are important as they deal with key strategic contingencies. 1.9 The manager's role in organising work Managers have key roles in work planning, resource allocation and project management. 1.9.1 Work planning Work planning is the establishment of work methods and practices to ensure that predetermined objectives are efficiently met at all levels. (a) Task sequencing or prioritisation ie considering tasks in order of importance for achieving objectives and meeting deadlines. (b) Scheduling or timetabling tasks, and allocating them to different individuals within appropriate time scales. (c) Establishing checks and controls to ensure that: (i) Priority deadlines are being met and work is not 'falling behind' (ii) Routine tasks are achieving their objectives (d) Contingency plans: arrangements for what should be done if changes or problems occur, eg computer system failure or industrial action. (e) Co-ordinating the efforts of individuals: integrating plans and schedules so that data and work flows smoothly from one stage of an operation to another. Some jobs (eg assembly line work) are entirely routine, and can be performed one step at a time, but for most people, some kind of on-going planning and adjustment will be required. 1.9.2 Assessing where resources are most usefully allocated In broad terms, managers and supervisors have access to the following resources, which can be allocated or deployed to further the unit's objectives. (a) Human resources: staff time and skills (b) Material resources, including raw materials, equipment, machine time, office space and so on (c) Financial resources, within budget guidelines (d) Information The first three of these are sometimes called 'the 4Ms': Manpower, Machine capacity, Materials and Money. A manager or supervisor may be responsible for allocating resources between: (a) Different ways to achieve the same objective (eg to increase total profits, sell more – or cut costs) (b) Competing areas, where total resources are limited FA S T F O RWAR D Part E Leading and managing individuals and teams ~ 11: Leading and managing people 267 A piece of work will be high priority in the following cases. x If it has to be completed by a certain time (ie a deadline) x If other tasks depend on it x If other people depend on it x If it has important potential consequence or impact Routine priorities or regular peak times (eg tax returns) can be planned ahead of time, and other tasks planned around them. Non-routine priorities occur when unexpected demands are made. Thus planning of work should cover routine scheduled peaks and contingency plans for unscheduled peaks and emergencies. 1.9.3 Projects A project is 'an undertaking that has a beginning and an end and is carried out to meet established goals within cost, schedule and quality objectives' (Haynes, Project Management). The main difference between project planning and other types of planning is that a project is not generally a repetitive activity. Projects generally: x Have specific start and end points x Have well-defined objectives, cost and time schedules x Cut across organisational and functional boundaries The relocation of offices, the introduction of a new information system or the launch of a new product may be undertaken as a project. Other examples include building/capital projects, such as factory construction or bridge building. 1.9.4 Project management The job of project management is to foresee as many contingencies as possible and to plan, organise, co- ordinate and control activities. Management task Comment Outline project planning x Developing project targets such as overall costs or timescale (eg project should take 20 weeks) x Dividing the project into activities (eg analysis, programming, testing), and placing these activities into the right sequence, often a complicated task if overlapping x Developing the procedures and structures, managing the project (eg plan weekly team meetings, performance reviews etc) Detailed planning Identifying the tasks and resource requirements; network analysis for scheduling Teambuilding The project manager has to meld the various people into an effective team Communication The project manager must let key project stakeholders know what is going on, and ensure that members of the project team are properly briefed Co-ordinating project activities Between the project team and clients/users, and other external parties (eg suppliers of hardware and software) Monitoring and control The project manager should determine causes of any departure from the plan, and take corrective measures Problem-resolution Unforeseen problems may arise, and it falls upon the project manager to sort them out, or to delegate the responsibility for so doing to a subordinate Key term 268 11: Leading and managing people ~ Part E Leading and managing individuals and teams 2 Writers on management The classical writers on management and organisation were largely concerned with efficiency. 2.1 Henri Fayol: five functions of management Fayol was an administrator and proposed universal principles of organisation. Fayol (1841-1925) was a French industrialist who put forward and popularised the concept of the 'universality of management principles': in other words, the idea that all organisations could be structured and managed according to certain rational principles. Fayol himself recognised that applying such principles in practice was not simple: 'Seldom do we have to apply the same principles twice in identical conditions; allowance must be made for different and changing circumstances.' Fayol classified five functions of management which apply to any organisation. Function Comment Planning This involves determining objectives, and strategies, policies, programmes and procedures for achieving those objectives, for the organisation and its sub-units. Organising Establishing a structure of tasks which need to be performed to achieve the goals of the organisation; grouping these tasks into jobs for individuals or teams; allocating jobs to sections and departments; delegating authority to carry out the jobs; and providing systems of information and communication, for the co-ordination of activities. Commanding Giving instructions to subordinates to carry out tasks, for which the manager has authority (to make decisions) and responsibility (for performance). Co-ordinating Harmonising the goals and activities of individuals and groups within the organisation. Management must reconcile differences in approach, effort, interest and timing, in favour of overall (or 'super-ordinate') shared goals. Controlling Measuring and correcting the activities of individuals and groups, to ensure that their performance is in accordance with plans. Deviations from plans are identified and corrected. You may be struck by two key 'omissions' from Fayol's classification, from a more modern viewpoint. (a) 'Motivating' is not mentioned. It is assumed that subordinates will carry out tasks when 'commanded' or instructed to do so, regardless of whether or how far they may 'want' to. (b) 'Communicating' is not mentioned, although it is implied by the process of commanding (giving instructions), co-ordinating (sharing information) and controlling (giving feedback). This reflects the classical view of the function of management as a matter of controlling resources and processes rather than people: an awareness of management as first of all an interpersonal process, involving communication and influence, only developed later, as we will see. Although Fayol's 'managerial functions' may seem like a minor topic – and rather old-fashioned – it is a foundational model. The five functions are a helpful framework or starting point for discussing the nature of management and supervision – even if you prefer more modern alternatives such as Mintzberg's more fluid managerial roles or more interpersonally-based interpretations (including 'leadership', discussed later in this chapter). 2.2 F W Taylor: scientific management Taylor was an engineer and sought the most efficient methods. FA S T F O RWAR D FA S T F O RWAR D FA S T F O RWAR D Exam focus point Part E Leading and managing individuals and teams ~ 11: Leading and managing people 269 Frederick W Taylor (1856-1915) pioneered the scientific management movement in the USA. He was among the first to argue that management should be based on 'well-recognised, clearly defined and fixed principles, instead of depending on more or less hazy ideas.' Taylor was a very skilled engineer and he took an engineering efficiency approach to management. Principles of scientific management include the following. (a) The development of a true science of work. 'All knowledge which had hitherto been kept in the heads of workmen should be gathered and recorded by management. Every single subject, large and small, becomes the question for scientific investigation, for reduction to law.' (b) The scientific selection and progressive development of workers: workers should be carefully trained and given jobs to which they are best suited. (c) The application of techniques to plan, measure and control work for maximum productivity. (d) The constant and intimate co-operation between management and workers: 'the relations between employers and men form without question the most important part of this art'. In practice, scientific management techniques included the following key elements. (a) Work study techniques were used to analyse tasks and establish the most efficient methods to use. No variation was permitted in the way work was done, since the aim was to use the 'one best way'. (b) Planning and doing were separated. It was assumed that the persons who were intellectually equipped to do a particular type of work were probably unlikely to be able to plan it to the best advantage: this was the manager’s job. (c) Jobs were micro-designed: divided into single, simple task components which formed a whole specialised 'job' for an individual, rather than permitting an individual to perform whole or part-task processes. (Task 'meaning' and 'significance', now considered essential to job satisfaction, had not yet emerged as important values.) (d) Workers were paid incentives on the basis of acceptance of the new methods and output norms; the new methods greatly increased productivity and profits. Pay was assumed to be the only important motivating force. Scientific management as practised by Taylor and contemporaries such as Gilbreth and Gantt was very much about manual work. However, elements of scientific management are still practised today, whenever there is a concern for productivity and efficiency. Case Study Persistent Taylorism? It has been argued that elements of Taylorism – maximising managerial control through the micro-design of jobs, automation and close supervision – can be seen in the management of junior staff in businesses such as: x Large fast-food franchises (such as McDonalds). x Call-centres, where calls are scripted, timed and monitored – and (in some reported cases) staff must ask permission to leave the ‘floor’ to go to the toilet. The application of scientific management principles to modern working practices forms the subject of a question on the Pilot Paper. 2.3 Elton Mayo: human relations Mayo and his colleagues investigated individual and group behaviour at work, as a factor in productivity. FA S T F O RWAR D Exam focus point [...]... to meet the various needs 280 11: Leading and managing people Part E Leading and managing individuals and teams Task roles Initiating Information-seeking Diagnosing Opinion-seeking Evaluating Decision-making Individual maintenance roles Goal-setting Feedback Recognition Counselling Training Group maintenance roles Encouraging Peace-keeping Clarifying Standard-seeking (Adair) Adair argued that the common... important to a good leader, including: (a) (c) Entrepreneurship: the ability to spot business opportunities and mobilise resources to capitalise on them Interpersonal skills, such as networking, rapport-building, influencing, negotiating, conflict resolution, listening, counselling, coaching and communicating assertively Decision-making and problem-solving skills, including seeing the big picture (d) Time-management... Leading and managing individuals and teams 11: Leading and managing people 271 Role category Role Comment Interpersonal Figurehead (or ceremonial) A large part of a Chief Executive's time is spent representing the company at dinners, conferences and so on Leader Hiring, firing and training staff, motivating employees, and reconciling individual goals with the objectives of the organisation Liaison Making... questions below from the Exam Question Bank Number Level Marks Time Q29 Examination 2 2 mins Q30 Examination 2 2 mins Part E Leading and managing individuals and teams 11: Leading and managing people 285 286 11: Leading and managing people Part E Leading and managing individuals and teams Individuals, groups and teams Topic list 1 Individuals Syllabus reference E2 (a)–(c) 2 Groups E2 (a) 3 Teams E2 (b)(c)... satisfaction workers obtained from their jobs.' 7 Which of the following is not one of the interpersonal roles of managers identified by Henry Mintzberg? A B C D 8 Handling disturbances Reconciling individual needs with the requirements of the organisation Training staff Liaising outside the scalar chain Complete the statement below using one of the words in the list given in brackets ' authority... 'decision making' was inadequate to describe the range of action required by this complex situation He developed a scheme of leadership training based on precept and practice in each of eight leadership 'activities' which are applied to task, team and individual: hence, the 'action-centred leadership' model Defining the task Planning Briefing Controlling Evaluating Motivating Organising Setting an example... managers in businesses Peter Drucker worked in the 1940s and 1950s as a business adviser to a number of US corporations He was also a prolific writer on management Drucker argued that the manager of a business has one basic function – economic performance In this respect, the business manager is different from the manager of any other type of organisation 270 11: Leading and managing people Part E Leading... managers in businesses Mintzberg described managerial roles, arguing that management is a disjointed, non-systematic activity Supervision is the interface between the operational core (non-managerial workers) and management There are many different definitions of leadership Key themes (which are also used to distinguish leadership from management) include: interpersonal influence; securing willing commitment... to learn continuously from experience, to grow in selfawareness and to exploit learning opportunities (b) Exam focus point 274 Remember, when thinking about leadership skills that skills are learned abilities to do things effectively: they are not the same as personality traits or characteristics, such as ‘integrity’ or ‘vision’ 11: Leading and managing people Part E Leading and managing individuals... scientifically or codified into an examinable body of theory Mintzberg states that general management is, in practice, a matter of judgement and intuition, gained from experience in particular situations rather than from abstract principles 'Fragmentation and verbal communication' characterise the manager's work 272 11: Leading and managing people Part E Leading and managing individuals and teams Question . networking, rapport-building, influencing, negotiating, conflict resolution, listening, counselling, coaching and communicating assertively (c) Decision-making and problem-solving skills, including. sequencing or prioritisation ie considering tasks in order of importance for achieving objectives and meeting deadlines. (b) Scheduling or timetabling tasks, and allocating them to different individuals. 'Communicating' is not mentioned, although it is implied by the process of commanding (giving instructions), co-ordinating (sharing information) and controlling (giving feedback). This