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302-Unit3GeneralTheoriesofManagement-ContrastingApproaches2020-06-15.pptx

LDRs 302 Historical concepts & theories Unit 3 general theories of management – contrasting approaches

Trinity Western University

LDRS 302

Instructor: Stephen Liang

© 2020

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Classical Traditions of Management Theory

Henri Fayol (1841-1925) *

Max Weber (1864-1920)

Lyndall Urwick (1943) *

Human Relations Approach

Mary Parker Follett (1868-1933) *

Rensis Likert (1903-1981) *

Contrasting approaches to theories of management

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0, p.13

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QUESTIONS

What are the similarities and the differences between the two broad positions on management of the four writers?

Where have you found echoes of these general theories of management in your own experience?

How far do they reflect some of your ideas and assumptions? Which do you prefer, and why?

What do you see as implications and benefits of engaging with these theories for practicing managers?

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0

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Henri Fayol (1841–1925)

5 Distinct Elements (FOCCC)

Forecasting and planning – looking into the future and drawing up action plans

Organizing – building up the material and human structure of the undertaking

Commanding – maintaining activity amount personnel

Coordinating – unifying and harmonizing activity and effort

Controlling – ensuring that things conform to rules and instructions

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0

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Henri Fayol (1841–1925)

14 General Principles of Managerial Effectiveness

Division of work – specialization encourages continuous improvement, both in terms of skill and methods.

Authority – the right to give orders and the power to require obedience.

Discipline – a successful organization requires the shared effort of all staff. Employees must obey, but this is two-sided – they will only comply if management play their part by providing good leadership.

Unit of command – employees should have only one boss with no other conflicting lines of command.

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0

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Henri Fayol (1841–1925)

14 General Principles of Managerial Effectiveness (con’t)

Unity of direction – the entire organization should be aligned and be moving towards a common goal.

Subordination of individual interests – individual needs and interests should be subordinate to the needs of the organization.

Remuneration – payment is an important motivator but should be fair and reward well-directed effort.

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0

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Henri Fayol (1841–1925)

14 General Principles of Managerial Effectiveness (con’t)

Centralization – an element of centralization must always be present and is part of the ‘natural order’ in an organization.

Line of authority – a hierarchy is necessary for unity of direction.

Order – an organisation’s requirements must be balanced against its resources.

Equity – employees must be treated equally and fairly.

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0

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Henri Fayol (1841–1925)

14 General Principles of Managerial Effectiveness (con’t)

Stability of tenure of personnel – employees need a period of stability in a job to perform at their best.

Initiative – encouraging staff to show initiative is a source of strength in an organization.

Esprit de corps – management should foster harmony, cohesion and morale among the organization’s staff.

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0

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Henri Fayol (1841–1925)

All the activities that take place in organizations can be divided into the following groups:

Technical activities.

Commercial activities.

Financial activities.

Security activities.

Accounting activities.

Managerial activities.

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0

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Lyndall Urwick (1943)

The principle of the objective – the overall purpose of an organization it its raison d'être.

The principle of specialization – one group, one function.

The principle of coordination – the purpose of organizing is to facilitate coordination or unity of effort.

The principle of authority – in every organized group, supreme authority must be located somewhere, and there should be a clear line of authority to every member of the group.

The principle of responsibility – a superior may be held accountable for the actions of subordinates.

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0

raison d'être = reason or justification for existence

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Lyndall Urwick (1943)

The principle of definition – jobs, duties and relationships should be clearly defined.

The principle of correspondence – in every position, responsibility and authority should correspond with one another.

The principle of span of control – no person should supervise more than 5–6 line reports whose work is interlocked.

The principle of balance – it is essential that the various units of an organisation are kept in balance.

The principle of continuity – reorganization is a continuous process and provision should be made for it.

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0

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Mary parker follett (1868-1933)

Importance of manager-worker relations and the need to view management (leadership) more holistically.

Creativity.

‘Management Leadership is an art of getting things done through other people’. (Follett, 1918)

The key task of management leadership is to facilitate cooperation and the involvement of staff in decision making.

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0

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Mary parker follett (1868-1933)

Contributes to modern day thinking about management and employer-employee relations.

Seek ‘win-win’ solutions, community-based solutions, strength in human diversity, situational leadership, and a focus on process.

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0

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Rensis likert (1903-1981)

Four (4) Systems of Management

System 1 – Exploitative authoritative type

management uses fears and threats;

communication is downwards;

superiors and subordinates are psychologically far apart;

the bulk of decisions are taken at the top of the organisation, etc.

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0

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Rensis likert (1903-1981)

Four (4) Systems of Management (con’t)

System 2 – Benevolent authoritative type

management uses rewards;

subordinates’ attitudes are subservient to superiors;

information flowing upwards is restricted to what the boss wants to hear;

policy decisions are taken at the top but decisions within a prescribed framework may be delegated to lower levels, etc.

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0

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Rensis likert (1903-1981)

Four (4) Systems of Management (con’t)

System 3 – Consultative type

management uses rewards;

occasional punishments and some involvement is sought;

communication is both down and up but upward communication other than that which the boss wants to hear is given in limited amounts and only cautiously;

subordinates can have a moderate amount of influence on the activities of their departments as broad policy decisions are taken at the top and more specific decisions at lower levels.

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0

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Rensis likert (1903-1981)

Four (4) Systems of Management (con’t)

System 4 – Participative group management

management give economic rewards and make full use of group participation and involvement in setting high performance goals;

improving working methods, etc.; communication flows downwards, upwards and with peers and is accurate;

subordinates and superiors are very close psychologically;

decision making is widely done throughout the organization through group processes.

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0

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Rensis likert (1903-1981)

Four (4) Systems of Management (con’t)

System 4 – Participative group management

decision making is integrated into the formal structure by regarding the organization chart as a series of overlapping groups with each group linked to the rest of the organization by means of persons who are members of more than one group;

produces high productivity, greater involvement of individuals, and better labour–management relations.

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0

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Management as a relative process

To be effective and to communicate, leaders must:

always adapt their behaviour to take account of the person whom they lead (situational leadership).

There are no specific rules which will work well within all situations, but only general principles which must be interpreted to take account of expectations, values and skills of those with whom the manager interacts.

Sensitivity to these values and expectations is a crucial leadership skill, and organizations must create the atmosphere and conditions which encourage all managers to deal with the people they encounter in a manner fitting to their values and their expectations.

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0

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Is management a science or an art?

Science is a systematic enterprise that builds and organizes knowledge in the form of testable explanations and predictions about the universe.

Art is often considered the process or product of deliberately arranging elements in a way that appeals to the senses or emotions. It encompasses a diverse range of human activities, creations and ways of expression, including music, literature, film, sculpture and paintings.

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Ref: https://www.google.ca/search?ei=3N0lW431GrTl9APXi5qQBQ&q=science&oq=science&gs_l=psy-ab.3..0l10.2460179.2461109.0.2463505.7.5.0.2.2.0.121.381.4j1.5.0....0...1c.1.64.psy-ab..0.7.412...0i131k1j0i67k1.0.GBwY71wviBw

Ref: https://www.google.ca/search?ei=feclW4XAN_XF0PEPyN6I4A4&q=art&oq=art&gs_l=psy-ab.3..0i67k1l9j0i131k1.82801.83359.0.87199.3.3.0.0.0.0.81.229.3.3.0....0...1c.1.64.psy-ab..0.3.229...0j0i131i67k1.0.qFXGBMFroNE

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Rosabeth moss kaNTER

Some of the ways in which the classic approach to management functions is changing.

Over the past 25 years there has been considerable merging of roles and more working across functional boundaries.

For some managers this has resulted in a loss of power (assuming they had it in the first place) – status and seniority count for little when everything is up for grabs.

In getting things done, rank or position in the hierarchy is now less important than the networks we can tap into.

Clearly defined management roles and stable organizational structures have been swept away and managers are having to re-learn what it means to manage.

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0

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stakeholders

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0

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19th Century

Owner of a business.

Wealth-creating machines for the benefit of just the owner.

20th Century

Workers acquired new rights after the industrial revolution.

Customers and shareholders began to exert their influence

21st Century

Environmental impact of organizations’ actions.

Human rights.

Corporate social responsibility.

A stakeholder map

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P. 78

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Stakeholders in Westchester probation service

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Ref: http://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-0

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a relationship map

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(p. 83)

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Relevant stakeholders (U.K’s national health service (NHS) institute for innovation and improvement (2008)

Nine (9) C’s

Commissioners – those who pay the organization to do things.

Customers – those who acquire and use the organization's products.

Collaborators – those with whom the organization works with to develop and deliver products.

Contributors – those from whom the organization acquires content for products.

Channels – those who provide the organization with a route to a market or customer.

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(p. 84)

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Relevant stakeholders (U.K’s national health service (NHS) institute for innovation and improvement (2008)

Nine (9) C’s (con’t)

Commentators – those whose opinions of the organization are heard by customers and others.

Consumers – those who are served by the organization's customers, e.g., end users.

Champions – those who believe in and will actively promote the project.

Competitors – those working in the same area who offer similar or alternative services.

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(p. 84)

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Identify stakeholders and their interest

Clarify stakeholder views of the organization

Identify key strategic issues

Begin the process of identifying coalitions of support and opposition.

Power vs. interest grid or matrix (Johnston et al., 2008)

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(p. 83)

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Monitors (high power, low interest)

Intruders (high power, high interest)

Onlookers (low power, high interest)

Outsiders (low power, low interest)

Contrasting approaches to theories of management

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(p. 83)

Monitors are individuals or groups who are powerful enough to support or undermine the change effort. What is important, argues Price, is that they can work with you but also against you.

Intruders are similar to monitors in that they have the power to support or undermine change, but critically they are sufficiently interested to take action if they choose.

Onlookers may be very interested in the changes taking place but crucially have very little power to do anything or influence planned change.

Outsiders are individuals or groups who rate low on both power and interest.

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Reference

Discovering Capabilities. (n.d.). In Exploring Ideas. The Open University. Retrieved from https://www.open.edu/openlearn/money-business/leadership-management/discovering-management/content-section-1

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