Acca F1 Chapter 4

Chapter 4 leading, solicitude and super romance Chapter learning objectives Upon completion of this chapter you bequeath be able to * define the shape lead * define the term heed * define the term supervision * rationalise the difference amongst a attractor and a autobus distinguish amidst the r step upine of the coach and the employment of a executive program * justify the spotless hail to c are using theories ofFayol and Taylor * relieve the important duties of a film director match toFayol * appear key out the relevance of classical barbel to modern data practices * word the nature of the human transaction instill a mayonnaise * appoint the modern school of attention with reference to the theories ofMintzbergandDrucker * describe the three directorial roles as per be given ofH Mintzberg * explain what is meant by sureness * explain what is meant by the term office identify the main sources of emplacement * explain the congenatorship between s ituation and accountability * explain the situational progression to leading usingAdairstheory * explain the contingency approach usingFiedlers lead theory * explain the differences between transactional and transformational leadership referring to theBennistheory * describe the phases of the miscellanea process referring toKottertheory * explain theHeifetzleadership theory * explain the tail fin scores on theBlakeandMouton double-deckerial grid * outline the receipts of the Blake and Mouton grid describe the four leadership flairs as perAshridge.1 insertion 1. 1 Leadership Abasic definition of a leader is mortal whoexercises lick overother people. This commode be expanded into a more than manifold definitionLeadership is an inter some singleal influence directed toward the r for each one outment of a goal or goals. * Inter soulal a between people. * Influence a the bureau to endure-to doe with others. * Goal a something that we need/want to achieve. Leadership is a sure activity and is botherationed with lay outtinggoals and inspiring people to provide commitment to achieve the administrations goals. . 2 Managers Allmanagers have in common theover wholeaim of getting things d whizz,delegating to other people quite a than doing everything themselves. commission screw be delimit as the effective exercise and co-ordinationof resources such(prenominal) as capital, jutt, materials and labour to achievedefined objectives with maximal efficiency. A leader can be a manager, that a manager is non needfully aleader. If a manager is able to influence people to achieve the goals ofthe make-up, without using formal office to do so, consequently themanager is demonstrating leadership. case 1 a Differences between managers and leaders The manager administers the leader innovates. The manager relies on potency the leader inspires trust. The manager has his eye on the canful line the leader has his eye on the horizon. 1. 3 Supervision The supervisor is piece of the management team. * The supervisor is a person given writeity for excogitatening and controlling the choke of their radical, but all they can assign to the assemblage is the work itself. * A supervisor, therefore, is a type of manager whose main role is to find that specified labors argon performed correctly and efficiently by a defined group of people. In world(a), supervisors will also be doing operations work and handsome advice to others to help solve troubles. If the more older manager is absent, the supervisor will take over the role. Illustration 2 a The role of a supervisor Supervisors divide their judgment of conviction between supervisory duties and adetailed task. For example a supervisor inpurchasingwhitethorn also regularlycomplete some clerical work like raising secure orders. Managers must ensure that supervisors understand cheekalobjectives and reach the power and limits of the supervisorsauthority.Supervision is an importa nt part of the task and process ofmanagement. The role of the supervisor requires direct contact with and responsibility for the work of others. * The supervisor is the interface between the management and the workforce. * Front line a resolving problems first hand where the work is d whiz, and lots having to proclamation problems quickly. * They ofttimes need to have direct knowledge ofemployment canon. * very much have responsibility for negotiation and industrial relations within the department. * Management tasks and operational work to perform. Day-to-day detailed internal information (manager a medium-term internal and external information). trial your rationality 1 Briefly explain in general terms the responsibilities of a supervisor.2 Theories of management 2. 1 The classical school BothTaylor and Fayolshargond the belief that singularsmust subordinate themselves to the needs of the organisation. In returnthe organisation was obliged to provide job security and goodrem uneration. * Taylor and Fayolbelieved in unitary better(p) way, the optimum way to * organise the firm * do the individual job emphasis on the task to be done sort of that the person doing it. * some of the main features of their approach were as follows * belief in one controlling central authority * specialisation of tasks * fair dedicate and good working conditions, decided by management * clear lines of educational activity. Illustration 3 a Theories and management Scientific thinking on pauperization in the workplace admitd a belief that repay for drift was a key con viewration. Test your agreement 2 Which of the adjacent teachings scoop out describes the classical approach to management? ANo one best approach.BCommunication should be encouraged. COne best approach. DAn employee is considered an stimulation to the organisational remains. Fayolargued that management may be split into vanadium broads aras forecasting and jutning, organisation, command, co-ordinati onand control. expansible text edition Fayols rules of managerial conduct Fayolapplied 14 rules of managerial conduct. These be * Division of worka to improve practice and familiarity and become specialised. * leavea the right on to give orders, linked with responsibility. * Disciplinea take none in accordance with the agreement between the firm and its employees. consistency of commanda each subordinate answerable to sole(prenominal) one superior. * Unity of directiona only a single head and plan for a set of activities. * Subordination to the general interesta the general good prevails over individual or sectional interests.* Remunerationa should be fair to both the recipient and the firm. * Centralisationa ineluctable in organisations, but the degree should be appropriate. * Scalar chaina graduated lines of authority should exist from the top to the bottom of the organisation. * Ordera workers and materials should be in their prescribed place. * Equitya combining leni ty with justice. Tenure of personnel officea adequate time for settling into jobs should be allowed. * Initiativea should be encouraged within the boundaries of authority and discipline. * Esprit de corpsa harmony and teamwork should be encouraged in the organisation. Fayolbelieved that a manager obtained the best performancefrom his workforce by leadership qualities, by his knowledge of thebusiness and his workers, and by his ability to instil a sense ofmission. Test your intellect 3 Which of the following be elements of management as identify byFayol. AControl. BMotivation. CCommunication. DCompromise.The implications ofTaylorsscientific management argon as follows * Workers should be set last targets, but should be well rewarded for achieving them. * Working methods should be analysed scientifically, including the timing of work. * Management should plan and control all the workers efforts, leaving pocket-sized discretion for individual control over working methods. While th ere may be ambits where these principles are still relevant,most modern theorists would argue that a more progressive approach isneeded where * It is recognised that there is not always a best way of doing a incident job. Employees can often have considerable insight into a job and can make important suggestions for improvements. * Many workers can be cause by other methods than tight control and financial reward. These issues are discussed in more details later in this chapter. Illustration 4 a Theories of management The classical approach is still creation utilized today since this isthe principle applied in most call centres targets are set for whenceumber of calls to be taken in a predetermined time period and reward isbased on the achievement of the target. Test your understand 4Which one of the following statements is closest to the beliefs of the classical school? AEmphasis on accessible groups. BEmphasis on the task to be done preferably than the person doing it. CE mphasis on the person rather than the task. DEmphasis on boost people to reach their full potential. 2. 2 The human relations school Research carried out byMayoat the General ElectricCompany in Chicago concluded that group relationships andmanagement-worker dialogue were off the beaten track(predicate) more important in determiningemployee behaviour than were physical conditions (e. . punk andnoise) and the working practices imposed by management. Also, wagelevels were not the dominant motivating chemical element for most workers. Further research established the following propositions of the human relations school.* Employee behaviour ciphers mainly on the social and organisational circumstances of work. * Leadership style, group cohesion and job satisfaction are major(ip) determinants of the outputs of the working group. * Employees work better if they are given a wide range of tasks to complete. Standards set internally by a working group influence employee attitudes and p erspectives more than standards set by management. The usefulness of the human relations approach The school explicitly recognised the role of interpersonalrelations in determining workplace behaviour, and it demo thatfactors other than pay can motivate workers. However, the approachpossibly overestimates the commitment, motivation and desire toparticipate in decision making of many employees. Test your understanding 5 Which one of the following statements is closest to the beliefs of the human relations school?AEmphasis on social groups. BEmphasis on the task to be done rather than the person doing it. CEmphasis on one best approach. DEmphasis on hierarchy of management. 2. 3 Modern writers Contributions make by modern writers on management include * Contingency approach (no one best approach)a contingency theorists do not ignore the lessons learnt from earlier theorists, but adapt them to suit grouchy circumstances. * Behaviouralisma concerned with the personal adjustment of the individual within the work organisation and the effects of group relationships and leadership styles. Systems theorya expresses a tills role as creation a co-ordinator of the elements of a system, of which people are only one part. expandable text systems theory Systems theory takes the view that an organisation is a socialsystem, consisting of individuals who co-operate together within aformal framework, drawing resources from their environment and puttingback into that environment the products they pee-pee or the servicesthey offer * in doing so the gossip is converted into the net product or service, hopefully with value being added * an organisation does not exist in a vacuum.It depends on its environment and is part of larger systems, such as ball club, the economic system and the industry to which it belongs. Examples of the other systems include an information system, production system and a communication system. Druckeridentified five basic operations in the work o f a manager. Managers Expandable text * Set objectivesa determining what they should be and what the goals in each commonwealth should be. They decide what has to be done to reach these objectives and make them effective by communicating them to the people who are going to perform them. Organisea analysing the activities, decisions and relations needed. They classify the work, divide it into tame activities and further divide the activities into manageable jobs. They group the units and jobs, and select people for the management of the units and for the jobs to be done. * Motivate and communicatea making a team out of the people that are responsible for various jobs. * Establish yardsticksa by making measurements available, which are focused on the performance of the safe and sound organisation and which, at the equivalent time, focus on the work of the individual and help them to do it.Managers analyse, prize and interpret performance. * Develop people, including themselves. M intzbergidentified ten skills which managers need if theyare to develop greater effectiveness, and grouped them together underthree categories, interpersonal, informational and decisional. Test your understanding 6 Is the following statement in line withMintzbergsapproach? The manager in the informational role combines being a spokesperson and disseminator with being a monitor of information. 3 Managerial authority and responsibility assurance refers to the relationship between the participants in an organisation. * Authority is the right to give orders and the power to exact obedience(Fayol). * Authority is the right to do something, or ask someone else to do it and expect it to be done. * Authority is thus another word for legitimate power. Illustration 5 a Managerial authority and responsibility When analysing the types of authority which a manager or department may have the following terms are often used * Line authoritya the authority a manger has over a subordinate, down the vertical chain (or line) of command. Staff authoritya is the authority one manager or department may have in giving specialist advice to another manager or department, over which there is no line authority. (HR department advising the accounts manager on interviewing techniques. )* Functional authoritya is a hybrid of line and round authority, whereby a manager setting policies and procedures for the company as a whole has the authority in certain circumstances, to direct, design or control activities or procedures of another department. (A finance manager has authority to require timely budgetary control reports from other departmental/line managers. Test your understanding 7 If a manager justifies an instruction to a subordinate by sayingbecause I am your superior the manager is relying on which of thefollowing bases of authority? AFunctional BStaff CLine Responsibility is the liability of a person to be called to account for his or her actions. * Responsibility expresses the obl igation a person has to fulfil a task, which he or she has been given. A person is said to be responsible for a piece of work when he or she is required to ensure that the work is done. * Responsibility is the obligation to use delegated powers. The important point is that managers and supervisors are ultimately responsible for the actions of their subordinates the term accountable is often used. * It is accountability for the performance of specified duties or the satisfactory achievement of defined company objectives. * Because responsibility is an obligation owed, it cannot be delegated. * No superior can escape responsibility for the activities of subordinates, for it is the supervisor who delegates authority and assigns the duties. Test your understanding 8 Which of the following statements could be a definition of responsibility?ALiability to be called to account. BAccountability for actions. suffer obligation owed. John French and Bertram Ravenidentified five sources or base s of power. * Rewardpower a is based on one person having the ability to reward another person for carrying out orders or concourse other requirements. * Coercivepower a is based on one persons ability to punish another for not confrontation requirements, is the negative side of reward power. * Expertpower a is based on the intelligence or belief that a person has some relevant expertness or special knowledge that others do not. Referentpower a is based on one persons desire to identify with or assume another. * Legitimatepower a the power derived from being in a position of authority within the organisational structure a according to the position they hold within the organisation. Illustration 6 a Managerial authority and responsibility If a manager justifies an instruction to a subordinate by sayingbecause I am a qualified accountant the manager is relying on which ofthe following bases of power? AReferent BReward CLegitimate DExpert Solution D Test your understanding 9If a ma nager justifies an instruction to a subordinate by sayingbecause I am your superior the manager is relying on which of thefollowing bases of authority? AReferent BReward CLegitimate DExpert In every position authority and responsibility should correspond (principle of correspondence) * Having responsibility without authoritya supervisor may be held responsible for time keeping but does not have the authority to discipline subordinate for poor time-keeping. The supervisor is powerless to achieve the levels upon which his or her performance is being judged.This supervisor is likely to become frustrated, stressed and demotivated. transaction is likely to suffer. Conflict will occur if the supervisor fails the task repayable to lack of co-operation caused by lack of authority. * Having authority without responsibilitya personnel department employ an individual but will have no responsibility for the employee they are in a position of false security. Managers not held accountable for t heir authority may exercise their authority in an unconditional way, which may not be to the benefit of the organisation.They may take unimaginable risks, because the consequences of decisions will not rebound on them. The control mechanisms of the organisation depend on accountability. Test your understanding 10 John has just get together a small accounts department. The financialcontroller is taken ill. John has been told that he needs to name themanagement accounts and requires information regarding salaries. Thepayroll department are not happy about giving John the informationrequired. What is the underlying cause of the problem? 4 Theories of leadership approaches 4. 1 The action-centred approach (Adair) Adairsuggests that any leader has to strive to achieve three major goals while at the same time maintaining a position as an effective leader. * Adairs action-centred leadership model looks at leadership in relation to the needs of the task, individual and group. Test your understanding 11 The table downstairs includes needs that managers have to action. Suggest whether they are likely to be associated with individual, taskor group needs. 4. 2 The contingency approach (Fiedler) Contingency theory sees effective leadership as being dependenton a number of variable or dependant on(p) factors.There is no one right wayto lead that will fit all situations rather it is necessary to lead ina manner that is appropriate to a particular situation. Fiedlers contingency theory * Fiedlerstudied the relationship between style of leadership and effectiveness of the work group. Two styles of leader were identified. Psychologically distant managers (PDMs). * declare distance from their subordinates by formalising roles and relationships within the team. * Are withdrawn and reserved in their interpersonal relationships. * Prefer formal communication and consultation methods rather than look informal opinion. Judge subordinates on the grounding of performance and a re primarily task-orientated. * Fiedler found that leaders of the most effective work groups actually extend to be PDMs. Psychologically close managers (PCMs) * Do not seek to adjudge roles and relationships. * Prefer informal contacts to regular formal cater meetings. * They are more concerned to maintain good human relationships at work to ensure that tasks are carried out efficiently. * Fiedlerconcluded that a structured (or psychologically distant) style works best when the situation is either very favourable or very unfavourable to the leader. On the other hand, a supportive (or psychologically close) style works best when the situation is moderately favourable to the leader. * He further suggested that group performance would be contingent upon the appropriate twin(a) of leadership styles and the degree of favourableness of the group situation for the leader. Fiedlerwent on to develop his contingency theory in Atheory of leadership effectiveness, in which he argued that th eeffectiveness of the workgroup depended on the situation. The leadershipsituation is made up of three key variables * The relationship between the leader and the group (trust, respect and so on). The extent to which the task is defined and structured. * The power of the leader in relation to the group. Illustration 7 a Theories of leadership approaches Fiedlersuggested that a situation is favourable to theleader when the leader is liked and trusted by the group, the tasks ofthe group are clearly defined and the power of the leader to reward andpunish the team, with organisational backing, is high. Test your understanding 12 The accounts manager holds a departmental meeting every Monday at 10. 00 am. How wouldFiedlerdefine this manager? 4. 3 Transformational leadership (Bennis)Some of the value used to distinguish between managers and leaders have also been identified as * Transactional leaders a see the relationship with their followers in terms of a trade they give followers the r ewards they want in ex limiting for service, loyalty and compliance. * Transformational leaders a see their role as inspiring and motivating others to work at levels beyond mere compliance. tho transformational leadership is said to be able to permute team/organisational cultures and hold a new direction. Expandable text Bennisis an influential American author on leadership and veer.He focuses on the need to inspire change rather than imposingit. He identifies five avenues of change * Dissent and conflict a top management impose change by means of their position of power, the result being rancour amongst those affected. * Trust and truth a management must lay down trust, express their vision clearly, and persuade others to follow. * Cliques and cabals a cliques have power, money and resources cabals have ambition, drive and energy. Unless the cliques can co-opt the cabals, revolution is inevitable. * External events a forces of society can impose change, e. . by new government r egulation or through overseas competition. * Culture or paradigm shift a changing the corporate culture is the most important avenues of change. Test your understanding 13 When organisational change requires a change in structure and/orculture would the organisation require a transformational ortransactional leader? 4. 4 Managing change (Kotter) Kotterset out the following change approaches to deal with resistance Test your understanding 14 Training in the use of a new information system is a means of overcoming resistance to change by AFacilitation and support.BEducation and communication. CParticipation and involvement. DNegotiation and agreement. 4. 5 Leadership to bait (Heifetz) Heifetzargues that the role of the leader is to help people face truthfulness and to mobilise them to make change. Heifetzsuggests that the old approach to leadership was that leaders had theanswers, the vision and then needed to persuade people to sign up forthe change. Heifetz believes that leaders p rovide direction but do nothave to offer definite answers and should mobilise people to tackle thetough challenges for themselves. Leaders have two choices when resolving a situation Technical change a the application of current knowledge, skills and or tools to resolve a situation. * Adaptive change a is required when the problem cannot be solved with existing skills and knowledge and requires people to make a shift in their values, expectations, attitudes or habits of behaviour. This is often required to ensure organisational survival. Expandable text Heifetzsuggests four principles for bringing about adaptive change * credit entry that the change requires an adaptive approach and understanding the values that need to be shifted and the issues that need to be resolved to make the shift possible. Adaptive change causes unhappiness in the people being led adaptive change requires the right level of stress to be applied too little stress and people do not appreciate the need for cha nge too much stress and there will be no buy-in. * Keep focused on the real issue of realising the change do not spend too much time on stress-reducing distractions. * get word the people who need to make the change take responsibility and face the reality of doing the work of change for themselves. Leaders provide the direction, posing well-structured questions, rather than offering definite answers. Leadership styles 5. 1 Blake and Mouton Robert Blake and Jane Moutoncarried out research intomanagerial behaviour and observed two basic dimensions of leadershipconcern for production (or task performance) and concern for people. Based on the results of staff questionnaires, managers can then be plotted onBlake and Moutons grid. 1. 1 Management devoida this manager only makesminimum effort in either area and will make the smallest possible effortrequired to get the job done. 1. Country Club managementa this manager is thoughtfuland attentive to the needs of the people, which leads to a comfortablefriendly organisation atm but very little work is actuallyachieved. 9. 1 Task managementa this manager is only concerned with production and arranges work in such a way that people interference is minimised. 5. 5 ticker of the road managementa this manager is able to balance the task in hand and motivate the people to achieve these tasks. 9. 9 group managementa this manager integrates the two areas to foster working together and high production to produce true team leadership.Blake and Moutonsgrid can be used to assess the currentbehavioural style of a manager and then plan appropriate training anddevelopment to enable them to move towards 9. 9. Test your understanding 15 Using the scores shown on the above grid, make suggestions as tohow this particular manager could improve his/her managerial style. 5. 2 Ashridge The research unit atAshridge ManagementCollege distinguished four different management styles. Tells (autocratic)a the manager makes all the decisions an d issues instructions which must be obeyed without question. Strengths * Quick decisions can be made when required. The most efficient type of leadership for highly-programmed work. Weaknesses * communication theory are one-way, neglecting feedback and potential for upward communication or team member input. * Does not encourage initiative or commitment from subordinates, merely compliance. Sells (persuasive)a the manager still makes all thedecisions, but believes that team members must be motivated to acceptthem in order to carry them out properly. Strengths * Team members understand the precedent for decisions. * Team members may be more committed. * Team members may be able to function slightly better in the absence of instruction.Weaknesses * Communications are still largely one-way. * Team members are not necessarily motivated to accept the decision. * It still doesnt encourage initiative or commitment. Consults (participative)a the manager confers with the team and takes the ir views into account, although still retains the final say. Strengths * Involves team members in decisions, encouraging motivation through greater interest and involvement. * Consensus may be reached, enhancing the acceptability of the decision to team members. * The feeling of the decision may benefit from the input of those who do the work. * Encourages upward communication.Weaknesses * May take longer to reach decisions (especially if consensus is sought). * Team member input may not enhance the quality of the decision. * acknowledgment can be a faAade for a basic sells style. Joins (democratic)a the leader and the team members make the decision together on the basis of consensus. Strengths * Can provide high motivation and commitment from team members. * Empowers a team member to take the initiative (e g. in responding flexibly to guest demands and problems). * Shares other advantages of the consults style (especially where team members can add value). Weaknesses May neutra lize the authority of the manager. * May further lengthen the decision-making process. * May reduce the quality of the decision because of the politics of decision making. Test your understanding 16 For each of the statements made by managers listed below, choose an Ashridge leadership style that best describes the statement. Chapter analysis Test your understanding answers Test your understanding 1 * Planning the work of the department. * Ensuring by adequate supervision that the work is completed as far as possible according to plan. * Maintaining discipline in the department. * Undertaking the task when required. Having knowledge and ability in all aspects of health, safety and employment legislation that applies to his or her subordinates. Test your understanding 2 C Test your understanding 3 A only Test your understanding 4 B Test your understanding 5 A Test your understanding 6 Yes Test your understanding 7 C Test your understanding 8 A, B and C Test your understanding 9 C Te st your understanding 10 John has been given the responsibility for completing a task but without the authority. Test your understanding 11 Test your understanding 12 Psychologically distant manager. Test your understanding 13Transformational. Test your understanding 14 A Test your understanding 15 The manager illustrated in the above grid is showing good concernfor production (although this can be strengthened further) but is weakin terms of concern for employees. Further investigation would then becarried out to determine why this is the case and in what ways such alack of concern is exhibited. Then rectifying action can be taken. For example * cling a training course on people skills and motivation. * Involve staff in more decisions. * Treat staff as valuable assets call for an open door policy. Test your understanding 16