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Chapter 2: Introduction to Leadership and Management By: Mohammed Hussien (MPH/HSM) Wollo University
Chapter Objectives After completion of this chapter, students will be able to: • Discuss the different types of management theories • Discuss managerial roles and functions • Differentiate the basic concepts and practices of management and leadership • Discuss leader shift so as to become a manager who leads
The evolution of management theory • Management is such a complex subject that it can be approached from different perspectives or major developments in thought • Although these developments, or schools of thought, are different, they do not compete with each other • they complement and support each other • Well-trained managers select the management ideas that seem to fit the problem at hand • The historical approaches laid the foundation for understanding and practicing management
Approaches to management theory • the major developments in management thought are: • Classical (scientific management and administrative management), • Behavioral approach • Quantitative approach • The systems perspective • Contingency schools
1. Classical Schools of Management • Bosses used to make decisions haphazardly, without any systematic study, thought, or collection of information • there were no • procedures to standardize operations, • standards by which to judge whether performance was good or bad, and • follow-up to determine if productivity or quality actually improved when changes were made • This all changed, however, with the advent of classical school of management
Classical Schools of Management... • The classical school of management is the original formal approach to studying management. • Its followers search for solid principles and concepts that can be used to manage work and people productively • As a result, the classical management theory developed from efforts to find the “one best way” to perform and manage tasks • This school of thought is made up of two branches:
Classical Schools... Classical scientific school • arose because of the need to increase productivity and efficiency • focuses on ways to improve the performance of individual workers (the only way to increase productivity was to increase the efficiency of workers) • the application of scientific methods to increase individual workers’ productivity • there is always one best way and has to be discovered and put in action
Classical Schools... Classical administrativeschool • Whereas scientific management focused on the productivity of individuals, the classical administrative approach concentrates on the total organization • Administrative management was concerned primarily with how organizations should be managed and structured • the development of managerial principles in the structuring and managing of an organization, rather than work methods
Classical Schools... • H. Fayoldeveloped 14 management principles through which management engaged in planning, organizing, commanding, coordinating, and controlling. • These principles provide modern-day managers with general guidelines on how a supervisor should organize her department and manage her staff • One example of his principles is unity of command - for any tasks, each worker should receive orders from only one supervisor
2. The Behavioural Approach • The classical theory ignored employee motivation and behavior. • The behavioral management theory emphasizes improving management through an understanding of the psychological makeup of people • It is often called the human relations movement because it addresses the human dimension of work. • Behavioral theorists believed that a better understanding of human behavior at work, such as motivation, conflict and group dynamics improved productivity • The primary strength of this approach is - it encourages managers to take into account the human element
The Behavioural Approach... • Three cornerstones of the behavioral approach are • the Hawthorne studies, • Theory X and Theory Y, and • Maslow’s need hierarchy. • These developments contributed directly to managers’ understanding of the importance of human relations on the job • The purpose of the Hawthorne studies was to determine the effects of changes in lighting on productivity
The Behavioural Approach... • It was the origin of the phenomenon of Hawthorne effect, which describes the special attention researchers give to a study’s subjects and the impact that attention has on the study’sfindings • It is the tendency of people to behave differently in response to perceived attention from evaluators • Abraham Maslow, developed one of the most widely recognized need theories, a theory of motivation • Maslow suggested that humans are motivated by efforts to satisfy a hierarchy of needs • The need hierarchy prompted managers to think about ways of satisfying a wide range of worker needs to keep them motivated
The Behavioural Approach... • X and Y theory: the assumptions managers make about human nature. • Theory X is a set of traditional assumptions that managers who hold these assumptions are pessimistic about workers’ capabilities. • They believe that workers dislike work, seek to avoid responsibility, are not ambitious, and must be supervised closely. • Theory Y, poses an optimistic set of assumptions. These assumptions include the idea that people do accept responsibility, can exercise self-control, possess the capacity to innovate
3. Quantitative Approaches • The quantitative approach is often referred to as management science. • The management-science school provides managers with a scientific basis for solving problems and making decisions. • Ituses a wide array of mathematical and statistical techniques • To many people, the use of computers in management is synonymous with management science • The development of high-speed computers and of communications among computers provided the means for tackling complex and large-scale organizational problems
4. The Systems Perspective • The systems perspective is based on the concept that an organization is a system or an entity of interrelated parts • It is a way of viewing aspects of an organization as an interrelated system • Rather than viewing one part of an organization as separate from the other parts, a systems approach encourages managers to complicate their thinking by looking for connections between the different parts of the organization. • Another aspect is to regard the organization as an open system, one that interacts with the environment • Therefore, it is well informed about changes within its surroundings and its position relative to these changes
The Systems Perspective... • An organization as a system is composed of four elements: inputs, transformation processes, outputs and feedback • The organization transforms inputs into outputs and supplies them to the outside world. • If these outputs are perceived as valuable, the organization will survive and prosper • The feedback loop indicates that the acceptance of outputs by society gives the organization new inputs for revitalization and expansion. • Managers can benefit from this by contributing something of value to external customers and clients
The Systems Perspective... • Two other influential concepts from the systems perspective are entropy and synergy. • Entropy is the tendency of a system to run down and die if it does not receive fresh inputs from its environment • Synergy means that the whole is greater than the sum of the parts • When the various parts of an organization work together, they can produce much more than they could by working independently
5. Contingency School of Management • The appropriate management actions and approaches depend on the situation. • emphasizes that there is no single best way to manage people or work in every situation. • It encourages managers to study individual and situational differences before deciding on a course of action. • managers need to spend more time analyzing problems, situations, and employees before taking action to fix them • Contingency thinking avoids the classical “one best way” arguments and recognizes the need to understand situational differences and respond appropriately to them. • It does not apply certain management principles to any situation
Management in the Future • The best practices of management include the major developments in management thought • Successful managers recognize that although each theoretical school has limitations in its applications, each approach also offers valuable insights that can broaden a manager’s options in solving problems and achieving organizational goals • Modern management approaches recognize that people are complex and variable • Employee needs change over time; people possess a range of talents and capabilities that can be developed • Organizations and managers, therefore, should respond to individuals with a wide variety of managerial strategies and job opportunities
What is Management? • Although management is so old and universal, it has no agreed definition; definitions are several • Management is the process of accomplishing predetermined objectives through the effective use of human, financial, and technical resources • It is the art of getting things done through people • Efficient utilization of resources for effective achievement of organizational objectives • Managing means planning and using resources efficiently to produce intended results (MSH)
Levels of Managers • Managers are people formally appointed to positions of authority in organizations or systems who are responsible for the work performance of group members • Managers are categorized into three levels. • Top level (senior managers) • mangers responsible for the overall management of the organization. • establish operating policies and guide the organization’s interaction with its environment • Establishes long term goals and oversees the work of middle level management
Levels of Managers... • Middle level managers • Managers located between top-level and frontline managers in the organizational hierarchy. • They are responsible for other managers and sometimes for some operating employees. • report to more senior managers. • responsible for translating strategic goals and plans into more specific objectives and activities
Levels of Managers... • First-line (front line) mangers • Supervise the operational activities of the organization • have authority and responsibility for overseeing a specific type of work and a particular group of workers (non-management people often called operating employees) • plan for a short term, involving scheduling employees and establishing detailed procedures to perform worker tasks.
Levels of Managers... • Regardless of title or level, managers have several common attributes: • They are formally appointed to positions of authority • They are charged with directing and enabling others to do their work effectively. • They are responsible for utilizing resources. • They are accountable to superior for results. • The primary differences between levels of managers are the degree of authority, the scope of responsibility and accountability at each level.
Management Functions • To accomplish goals, the manager performs four managerial functions in the context of the management process • Planning • If you have no particular destination in mind, then you can take any road • involves the process of defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities
Management Functions... • Organizing • the process of making sure the necessary human and physical resources are available to carry out a plan and achieve organizational goals • involves assigning activities, dividing work into specific jobs and tasks, and specifying who has the authority to accomplish certain tasks • involve grouping of activities into departments or some other logical subdivision
Management Functions... • Leading • influencing others to achieve organizational objectives • it involves energizing, directing, persuading others, and creating a vision • Involves interpersonal processes: motivating, communicating, coaching, and showing group members how they can reach their goals. • The leadership aspect of management focuses on inspiring people and bringing about change, whereas the other three functions focus more on maintaining a stable system
Management Functions... • Controlling • Controlling generally involves comparing actual performance to a predetermined standard • any significant difference between actual and desired performance would prompt a manager to take corrective action • determining whether the original plan needs revision, given the realities of the day • it causes a manager to return to the planning function temporarily to fine-tune the original plan
Management roles • Henry Mintzberg says that what managers do can best be described by looking at the roles they play at work • From his study of actual managers at work, he concluded that managers perform 10 different but highly interrelated roles. • The term management role refers to specific categories of managerial behavior • Mintzberggrouped the 10 managerial roles in to 3 categories.
Management roles... • Interpersonal roles: • Are based on the use of formal authority and involve interpersonal relationships • Figurehead: Symbolic head; obliged to perform a number of routine duties of a legal or social nature like greeting visitors; signing legal documents, addressing the media • Leader: managers motivate and encourage workers to accomplish organizational objectives • Liaison: Maintains self-developed network of contacts with people outside the organization, such as key partners with whom good working relationships are required
Management roles ... • Informational roles • Informational roles flow from the interpersonal roles and are associated with fulfilling these roles • many contacts made while performing figurehead and liaison roles give managers access to a great deal of important information • Monitor: involving seeking,receiving, and screening information. Managers need to scan their environments for information that may affect their organization and evaluate the information • Disseminator: Transmits information received from outsiders or from subordinates to members of the organization • Spokesperson: transmits information to outsiders on organization's plans, policies, actions, results etc
Management roles... • Decisional roles • The informational roles lead naturally to a range of decisional roles: Managers use information to make decisions • Entrepreneur - Change agent: involve designing and initiating changes within the organization; sharing and initiating new ideas or methods • Disturbance handler: Responsible for corrective action when organization faces important, unexpected disturbances • Resource allocator: Responsible for the allocation of organizational resources of all kinds—making or approving all significant organizational decisions • Negotiator: Responsible for representing the organization at major negotiations (with suppliers, clients, governments)
Managerial Skills • To be effective, managers must possess three key managerial skills 1. Technical skills • involves an understanding of and proficiency in a specific activity that involves methods, processes, procedures, or techniques • It is the managers understanding of the nature of job that people under him/her have to perform. • Such skills can be acquired through training, education and work experience. • Technical skills are frequently referred to as hard skills
2. Interpersonal skill (human relations) • a manager’s ability to work effectively as a team member and to build cooperative effort in the unit. • communication skills are an important component of interpersonal skills • interpersonal skills are often referred to as soft skills • many managers at all levels ultimately fail because their interpersonal skills do not match the demands of the job. • an important subset of interpersonal skills for managers is multiculturalism, the ability to work effectively with people from different cultures
3. Conceptual skill • is the ability to see the organization as a total entity • it includes recognizing how the various units of the organization depend on one another and how changes in any one part affect all the others • a manager deals with the relationship of the organization to its environment: the community; political, social, and economic forces of the nation as a whole • for top-level management, conceptual skill is a priority because executive managers have the most contact with the outside world
Managerial Skills... • All levels of managers use the three types of skills in performing management work but in different degree • the senior manager is vitally concerned with visualizing the complex relationships in the organization - conceptual skills • the low level manager, may be constantly required to make decisions on the basis of technical knowledge of procedures • the human skill is critical and equally important for all levels of managers
Management skills by levels of management (Katz 1955) Top Middle Front line Conceptual Human relation Technical
Managing and leading: what’s the difference? • leadership can be defined as the process in which one engages others to set and achieve a common goal, often an organizationally defined goal (Robbins and Judge, 2010). • management can be defined as the process of accomplishing predetermined objectives through the effective use of human, financial, and technical resources (Longest Jr., Rakich, and Darr, 2000) • leadership is concerned with setting a direction for change, developing a vision for the future, while management consists of implementing those goals through planning, budgeting, staffing …(Kotter 1990)
Managing vs. Leading... • “Leaders set the strategic vision and mobilize the efforts towards its realization while good managers ensure effective organization and utilization of resources to achieve results and meet the aims.” (WHO, 2007) • leading and managing contribute different things. • When you manage well; you ensure that processes and procedures, staff, and other resources are used in an efficient and effective manner
Managing vs. Leading... • When you lead well, you enable others to face challenges to creating the future that you all envision • You help them to overcome obstacles that stand in the way of desired results and encourage them to adapt to changing conditions • Management skills – the skills required to manage resources in order to deliver a task, product or services • Leadership skills – the skills required to engage with, motivate and persuade people to buy-in to a vision, objective or goal • We manage tasks and resources, we lead people
Managing vs. Leading... • Managing is focused on making sure present operations are going well • Leading is about the future • It is involved in the creation of work that generates new energy or reactivates untapped skills that have lain dormant • We define “managing” as planning and using resources efficiently to produce intended results, We define “leading” as mobilizing others to envision and realize a better future
Managing vs. Leading... • A Manager is a formally appointed and authorized individual in an organization or system to direct and support others to do their work effectively, oversee resource utilization and accountable for work results • A Leader is an individual in a team capable of influencing (successfully persuade others to follow their advice, suggestion or order) group activities towards goal formulation and achievement
Managing vs. Leading... • Leading and managing are complementary to reach for and achieve results • We did not separate leaders from managers • This approach is based on the belief that improvements in health care are made by managers who lead and managewell • Leadership practices improved through a process of facing challenges and receiving feedback and support • By using this process, managers develop the leadership abilities of their staff
Developing managers who lead • The natural process of leadership development, involves facing challenges while receiving feedback and support Leadership Development Triangle
Developing managers who lead… • What happens if a person faces a challenge without receiving appropriate feedback and support from others? – could be overwhelmed • What is the result of giving people a challenge with too much feedback? – might use the feedback and not their own ideas and initiative, we frustrate them • What is the result of giving them too much support? – might not feel the need to stretch themselves, making them dependent • When challenge, feedback, and support are in balance, they ensure a positive leadership development process
