1

PLANNING
Defining Goals
Establishing strategy

ORGANISING
Determining what needs to be, how it will be
done and by whom
LEADING
Directing and motivating people
Resolving conflicts
CONTROLLING
Monitoring activities, people and performance

SKILLS
Do managers need each skill in equal
amounts?
How do those amounts differ?
Management as an art learn as you go,
either have it or not
Management as a profession develop
through experience
Management as a science apply strict set of
rules and processes implies it can be learnt

Legal justification equates managers with:

Owners of firm exercising owners property
rights.
Assumption they speak for & fairly
represent owners.
Justification only valid to extent that
managers do not surrender prerogatives
traditionally associated with their role in the
firm

Legal justification raises issue of agency

theory:
Where interests of managers & other
stakeholders are in conflict.
Classic example is American company
ENRON.

10

11

12

13

EXPERT
Derived from knowledge specific to a particular task or
role
REFERRANT
Derived from status idolisation of followers
REWARD & COERCIVE
Self-explanatory
LEGITIMATE
Societal or work based power derived from position i.e.
ability to exercise managerial prerogative
EXPERENT/REFERRENT Most likely follower response
= commitment
REWARD/LEGITIMATE Most likely follower response =
compliance
COERCIVE Most likely follower response = resistance
14

TQM
Holistic approach to long-term success that views continuous
improvement in all aspects of a firm as a process and not as a
short term goal. Aims to radically transform the organisation
through progressive changes to attitudes, practices, structures
and systems. Encompasses every aspect of a firm and every
function: administration, communication, distribution,
manufacturing etc. Means
(1) Commitment and direct involvement of senior management
(2) quality is everyones job
(3) Build quality into products from the beginning
(4) Quality requires understanding internal and external
customers
(5) Focus on commitment based supportive leadership
(6) Minimise barriers between management & workers
(7) Flexible training programmes and meaningful performance
management
KNOWLEDGE MANAGEMENT
Strategies and processes designed to identify, capture, structure,
value, leverage and share an organisations intellectual assets to
enhance performance and competitiveness. Based on two critical
activities (1) capturing and documenting individuals explicit and
tacit knowledge and (2) its dissemination within the organisation

15

SCIENTIFIC MANAGEMENT
Basically seeks maximisation of profit through machine AND worker
efficiency. Aims to achieve maximum job fragmentation to minimise skill
requirements and therefore the time required to learn a particular job.
Roles of workers to work and managers to plan keep strongly separate.
Time and motion, cost accounting, tool and workplace design key
components of the workplace. Laid down the fundamental principles of
large scale assembly line manufacturing. BUT emphasised that process
should maximise profits for the benefit of BOTH workers AND
management.
FORDISM
A manufacturing philosophy that aims to achieve higher productivity by
standardising output using conveyor type assembly processes and breaking
work down into small deskilled tasks. Different from Taylorism or Scientific
management in that it seeks to combine the worker and machine into a
single unit and emphasises minimisation of costs rather than maximisation
of profits.
HAWTHORNES 3 STUDIES
First Looked at effect of lighting levels on performance. Found that
lighting had minimal impact, unless so low you couldnt see.
2nd One group given increasingly better conditions and privileges.
Productivity increased no matter what they were due to Hawthorne
effect.
3rd Built upon 2nd and identified role of social relations and norms in
restricting productivity in groups.
Studies important because they demonstrated how much productivity is
affected by social aspects of work especially supervisor attention and
group member relationships.

16

PANOPTICON
All seeing round the clock surveillance machine. Design ensured
that no prisoner could ever see the inspector who conducted
surveillance from the central location. Prisoners never knew when
they were being watched mental uncertainty creates source of
discipline.

The major effect of the Panopticon [was] to induce in the inmate

a state of conscious and permanent visibility that assures the
automatic functioning of power. [It is set up] so to arrange things
that the surveillance is permanent in its effects even if its is
discontinuous in its action; that the perfection of power should
tend to render its actual exercise unnecessary the apparatus
should be a machine for creating and sustaining a power
relationship independent of the person who exercises it
(Foucault, 1975)
"He who is subjected to a field of visibility, and who knows it,
assumes responsibility for the constraints of power; he makes
them play spontaneously upon himself; he inscribes in himself the
power relation in which he simultaneously plays both roles; he
becomes the principle of his own subjection (Foucault, 1995,
p.202)

17

18

19

Theory X assumptions
Workers are lazy, lack individual initiative, only
motivated by money, need to be controlled
Theory X organisations
Use elaborate controls.
Motivate only with economic incentives.
Managers role to ensure compliance.
Theory Y assumptions
Workers ambitious, capable of independent
thought and initiative, motivated by extrinsic
as well as intrinsic factors.
Theory Y organisations:
Integrate individual and organisational goals.
Latitude given to workers in terms of task
performance.
Managers role to foster commitment.

20

TASK BEHAVIOUR
The extent that a leader engages in spelling
out the role of an individual or group
Extent that a leader tells and individual or
group what, where, when and how to do the
task
RELATIONSHIP BEHAVIOUR
Extent to which a leader engages in two-way
communication, listening, supporting,
facilitating and giving psychological strokes.

21

S1 DIRECTING (Telling)
Leaders define roles and tasks and supervise
them closely
Decisions are made by the leader and
announced with mainly one way
communication
S2 COACHING (Selling)
Leaders still define roles and tasks but seek
ideas and suggestions from the follower.
Decisions remain the leaders responsibility but
communication links start to go two-way
S3 SUPPORTING (Participating)
Leaders pass day-to-day decisions, such as task
allocation and processes, to followers.
Leader facilitates and takes part in decisions,
but control is delegated.
S4 DELEGATING
Leaders are still involved in decisions and
problem solving, but control is handed over.
The follower now decides when and how the
leader will be involved.
22

D1
Low readiness, unable, unwilling, uncommitted
and de-motivated
e.g., new employees lacking in competence but
enthusiastic., focus on getting them started
D2
Low to moderate readiness, unable but willing and
motivated.
e.g., competent but still relatively inexperienced
staff, or those starting a new role
D3
Moderate to high readiness, able but unwilling and
insecure
e.g., staff whose competence means they dont
need much direction but some support to get
them to exercise their skills

D4
High readiness, able willing and confident
e.g., highly competent and confident staff able and
willing to without on projects without direction
supervision

23

24

25

26

STYLES BEST USED WHEN

Directive need immediate action, to establish overall
direction, when personnel need clarity or are
inexperienced.
Consultative with complicated problems, team
implementation required, group members are experienced
and have complementary skills
Delegative leader lacks time, task represents a singular
problem, require exercise of group members specialised
skills
LEADERS ROLES & HOW THEY MAKE DECISIONS
Directive Commander who sells their decision
Consultative Moderator who relies on group decision
making
Delegative Facilitator & information source who
delegates to individuals
RESPONSES EXPECTED FROM FOLLOWERS
Directive Obedience
Consultative Ownership, initiative, mutual
accountability
Delegative Individual initiative.
27

28