Definition of Management

• Traditionally, the term "management" refers to the activities (and often the group
of people) involved in the four general functions: planning, organizing, leading
and coordinating of resources. Note that the four functions recur throughout the
organization and are highly integrated. Emerging trends in management include
assertions that leading is different than managing, and that the nature of how the
four functions are carried out must change to accommodate a "new paradigm" in
management. This broad understanding of management (including traditional
and emerging views), and the areas of knowledge and skills required to carry out
the major functions of management.
Traditional Interpretations of Management
• There are a variety of views about this term. Traditionally, the term
"management" refers to the activities (and often the group of people)
involved in the four general functions listed below. (Note that the four
functions recur throughout the organization and are highly
integrated):
Interpretations of Management
• Another common view is that "management" is getting things done through
others. Yet another view, quite apart from the traditional view, asserts that the
job of management is to support employee's efforts to be fully productive
members of the organizations and citizens of the community.
• To most employees, the term "management" probably means the group of
people (executives and other managers) who are primarily responsible for making
decisions in the organization. In a nonprofit, the term "management" might refer
to all or any of the activities of the board, executive director and/or program
directors.
Interpretations of Management
• Some writers, teachers and practitioners assert that the above view is
rather outmoded and that management needs to focus more on
leadership skills, e.g., establishing vision and goals, communicating
the vision and goals, and guiding others to accomplish them. They
also assert that leadership must be more facilitative, participative and
empowering in how visions and goals are established and carried out.
Some people assert that this really isn't a change in the management
functions, rather it's re-emphasizing certain aspects of management.
 Scientific Management Theory (1890-
1940)
• At the turn of the century, the most notable organizations were large and
industrialized. Often they included ongoing, routine tasks that manufactured a
variety of products. The United States highly prized scientific and technical
matters, including careful measurement and specification of activities and results.
Management tended to be the same. Frederick Taylor developed the Scientific
Management Theory which espoused this careful specification and measurement
of all organizational tasks. Tasks were standardized as much as possible. Workers
were rewarded and punished. This approach appeared to work well for
organizations with assembly lines and other mechanistic, routinized activities.
 Bureaucratic Management Theory
(1930-1950)
• Max Weber embellished the scientific management theory with his
bureaucratic theory. Weber focused on dividing organizations into
hierarchies, establishing strong lines of authority and control. He
suggested organizations develop comprehensive and detailed
standard operating procedures for all routinized tasks.
Human Relations Movement
(1930-today)
• Eventually, unions and government regulations
reacted to the rather dehumanizing effects of these
theories. More attention was given to individuals and
their unique capabilities in the organization. A major
belief included that the organization would prosper if
its workers prospered as well. Human Resource
departments were added to organizations. The
behavioral sciences played a strong role in helping to
understand the needs of workers and how the needs
of the organization and its workers could be better
aligned. Various new theories were spawned, many
based on the behavioral sciences (some had name
like theory “X”, “Y” and “Z”).
Contemporary Theories in Management
• Contingency Theory
• Basically, contingency theory asserts that when managers make a decision, they
must take into account all aspects of the current situation and act on those
aspects that are key to the situation at hand. Basically, it’s the approach that “it
depends.” For example, the continuing effort to identify the best leadership or
management style might now conclude that the best style depends on the
situation. If one is leading troops in the Persian Gulf, an autocratic style is
probably best (of course, many might argue here, too). If one is leading a hospital
or university, a more participative and facilitative leadership style is probably
best.
Systems Theory

• Systems theory has had a significant effect on management science and

understanding organizations. First, let’s look at “what is a system?” A system is a
collection of part unified to accomplish an overall goal. If one part of the system
is removed, the nature of the system is changed as well. For example, a pile of
sand is not a system. If one removes a sand particle, you’ve still got a pile of sand.
However, a functioning car is a system. Remove the carburetor and you’ve no
longer got a working car. A system can be looked at as having inputs, processes,
outputs and outcomes. Systems share feedback among each of these four aspects
of the systems.
Systems Theory
• The effect of systems theory in management is that writers, educators,
consultants, etc. are helping managers to look at the organization from a broader
perspective. Systems theory has brought a new perspective for managers to
interpret patterns and events in the workplace. They recognize the various parts
of the organization, and, in particular, the interrelations of the parts, e.g., the
coordination of central administration with its programs, engineering with
manufacturing, supervisors with workers, etc. This is a major development. In the
past, managers typically took one part and focused on that. Then they moved all
attention to another part. The problem was that an organization could, e.g., have
a wonderful central administration and wonderful set of teachers, but the
departments didn’t synchronize at all.
4 Functions of Management
• Planning, including identifying goals, objectives, methods, resources
needed to carry out methods, responsibilities and dates for
completion of tasks. Examples of planning are strategic planning,
business planning, project planning, staffing planning, advertising and
promotions planning, etc.
4 Functions of Management
• Organizing resources to achieve the goals in an optimum fashion.
Examples are organizing new departments, human resources, office
and file systems, re-organizing businesses, etc
• Leading, including to set direction for the organization, groups and
individuals and also influence people to follow that direction.
Examples are establishing strategic direction (vision, values, mission
and / or goals) and championing methods of organizational
performance management to pursue that direction.
4 Functions of Management
• Controlling, or coordinating, the organization's systems, processes
and structures to reach effectively and efficiently reach goals and
objectives. This includes ongoing collection of feedback, and
monitoring and adjustment of systems, processes and structures
accordingly. Examples include use of financial controls, policies and
procedures, performance management processes, measures to avoid
risks etc.
Management Styles
• Managers have to perform many roles in an organization and how
they handle various situations will depend on their style of
management. A management style is an overall method of leadership
used by a manager. There are two sharply contrasting styles that will
be broken down into smaller subsets later:
• Autocratic
• Permissive
Characteristics of Management Styles
• Autocratic: Leader makes all decisions unilaterally.
• Permissive: Leader permits subordinates to take part in decision
making and also gives them a considerable degree of autonomy in
completing routine work activities.
• Combining these categories with democratic (subordinates are
allowed to participate in decision making) and directive (subordinates
are told exactly how to do their jobs) styles gives us four distinct ways
to manage:
Characteristics of Management Styles
• Directive Democrat: Makes decisions by consulting with staff; but also
closely supervises subordinates.
• Directive Autocrat: Makes decisions without consultation; also closely
supervises subordinates.
• Permissive Democrat: Makes decisions while consulting; also gives
subordinates latitude in carrying out their work.
• Permissive Autocrat: Makes decisions without consulting; gives
subordinates latitude in carrying out their work.
In what situations would each style be
appropriate? Inappropriate?
• Managers must also adjust their styles according to
the situation that they are presented with. Below are
four quadrants of situational leadership that depend
on the amount of support and guidance needed:
• Telling: Works best when employees are neither
willing nor able to do the job (high need of support
and high need of guidance).
In what situations would each style be appropriate?
Inappropriate?
• Delegating: Works best when the employees are willing to do
the job and know how to go about it (low need of support and
low need of guidance).
• Participating: Works best when employees have the ability to
do the job, but need a high amount of support (low need of
guidance but high need of support).
• Selling: Works best when employees are willing to do the job,
but don’t know how to do it (low need of support but high need
of guidance).
The different styles depend on the situation and the relationship
behavior (amount of support required) and task behavior
(amount of guidance required).
Decide NOW
• Below are a few situations and options for what you would do. Try to
decide which of the four situational styles would work best in each
situation. Then pick the option that best fits that style.
Situation 1
• The employees in your program appear to be having serious
problems getting the job done. Their performance has been
going downhill rapidly. They have not responded to your
efforts to be friendly or to your expressions of concern for their
welfare. Which style would you pick? What would you do?
• Reestablish the need for following program procedures and
meeting the expectations for task accomplishment.
• Be sure that staff members know you are available for
discussion, but don’t pressure them.
• Talk with your employees and then set performance goals.
• Wait and see what happens.
Situation 2
• During the past few months, the quality of work done by staff
members has been increasing. Record keeping is accurate and
up to date. You have been careful to make sure that the staff
members are aware of your performance expectations.Which
style would you pick? What would you do?
• Stay uninvolved.
• Continue to emphasize the importance of completing tasks and
meeting deadlines.
• Be supportive and provide clear feedback. Continue to make
sure that staff members are aware of performance
expectations.
• Make every effort to let staff members feel important and
involved in the decision making process.
Situation 3
• Performance and interpersonal relations among your staff have been good. You
have normally left them alone. However, a new situation has developed, and it
appears that staff members are unable to solve the problem themselves. Which
style would you pick? What would you do?
• Bring the group together and work as a team to solve the problem.
• Continue to leave them alone to work it out.
• Act quickly and firmly to identify the problem and establish procedures to correct
it
• Encourage the staff to work on the problem, letting them know you are available
as a resource and for discussion if they need you.
Situation 4
• You are considering a major change in your program. Your staff
has a fine record of accomplishment and a strong commitment
to excellence. They are supportive of the need for change and
have been involved in the planning.Which style would you pick?
What would you do?
• Continue to involve the staff in the planning, but direct the
change.
• Announce the changes and then implement them with close
supervision.
• Allow the group to be involved in developing the change, but
don’t push the process.
• Let the staff manage the change process.
THE PURPOSE OF MANAGEMENT AND
LEADERSHIP

The key purpose of management and leadership

is to provide direction, facilitate change and
achieve results through the efficient, creative and
responsible use of resources.

This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Management and Leadership, 2nd edition, as part
of their course. For more academic resources and other FREE material, please visit www.koganpage.com/resources and then click on Academic Resources.
 MANAGEMENT AND LEADERSHIP

• Managers have to be leaders and leaders are often, but

not always, managers.
• Management is concerned with achieving results by
effectively obtaining, deploying, utilizing and controlling
all the resources required, namely people, money,
information, facilities, plant and equipment.
• Leadership focuses on the most important resource –
people. It is the process of developing and
communicating a vision for the future, motivating people
and gaining their commitment and engagement.
• The differences in the roles are considerable and there
is scope for potential tension and conflict between them.
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Management and Leadership, 2nd edition, as part
of their course. For more academic resources and other FREE material, please visit www.koganpage.com/resources and then click on Academic Resources.
A Leadership Story:
• A group of workers and their leaders are set a task
of clearing a road through a dense jungle on a remote island to get to the coast where an estuary
provides
a perfect site for a port.
• The leaders organise the labour into efficient units and monitor the distribution and use of capital
assets – progress is excellent. The leaders continue to monitor and evaluate progress, making
adjustments along the way to ensure the progress is maintained and efficiency increased
wherever possible.
• Then, one day amidst all the hustle and bustle and activity, one person climbs up a nearby tree.
The person surveys the scene from the top of the tree.
A Leadership Story:
• And shouts down to the assembled group below…
• “Wrong Way!”
• (Story adapted from Stephen Covey (2004) “The Seven Habits of Highly Effective People” Simon & Schuster).

• “Management is doing things right, leadership is doing the right things”

(Warren Bennis and Peter Drucker)
Leadership
• “The process whereby one individual influences other group
members towards the attainment of defined group or organisational
goals.” (Baron & Greenberg, 1990) - Note. influences - non coercive / consent to
follow

• “The process of creating a vision for others and having the power to
translate it into reality and sustain it.” (Kotter)

28
Definitions of Leadership
• Leadership is “the behaviour of an individual . . . directing the
activities of a group toward a shared goal” (Hemphill & Coons, 1957,
p. 7).
• Leadership is “the influential increment over and above mechanical
compliance with the routine directives of the organization” (Katz &
Kahn, 1978, p. 528).
• Leadership is “the process of influencing the activities of an organized
group toward goal achievement” (Rauch & Behling, 1984, p. 46).

29
Definitional Problem
• Most definitions of leadership reflect the assumption that it involves a
process whereby intentional influence is exerted over other people to
guide, structure, and facilitate activities and relationships in a group
or organization.

• “Always, it seems, the concept of leadership eludes us or turns up in

another form to taunt us again with its slipperiness and complexity.
So we have invented an endless proliferation of terms to deal with
it…and still the concept is not sufficiently defined.” (Bennis 1959)

1-30
Controversies about Differences
Between Leadership and Management
• Leaders and managers as qualitatively different and
mutually exclusive types of people
• Leading and managing as different roles or processes
• Leading as an influence relationship and managing as
an authority relationship
• Integrative approach

1-31
What Leaders Can Influence

• The choice of objectives and strategies to pursue.

• The motivation of members to achieve the objectives.
• The mutual trust and cooperation of members.
• The organization and coordination of work activities.
• The allocation of resources to activities and objectives.
• The development of member skills and confidence.
• The learning and sharing of new knowledge by members.
• The enlistment of support and cooperation from outsiders.
• The design of formal structure, programs, and systems.
• The shared beliefs and values of members.

32
Difficulties With Assessing Leadership
Effectiveness

• Many different indicators

• Immediate and delayed outcomes
• Stakeholders with different preferences
• Different conceptions of leadership
• Development of a composite measure

1-33
Indicators of Effective Leadership

• High group performance

• Follower satisfaction
• Improved group processes
• Career success of leader

1-34
Type of Leadership Theory
• Trait Approach
• Earliest approach
• ‘Leaders are born not made’
• Behavior Approach
• Focus on leader behavior
• Power-Influence Approach
• seeks to explain leadership effectiveness in terms of the amount and type
of power possessed by a leader and how power is exercised
• Situational Approach
• emphasizes the importance of contextual factors that influence leadership
processes.
• Integrative Approach
• involves more than one type of leadership variable eg charismatic
leadership, which attempts to explain why the followers of some leaders
are willing to exert exceptional effort and make personal sacrifices to
accomplish the group objective or mission.

1-35
LEADERSHIP ROLES

Leaders have three essential roles:

1. They define the task.
2. They achieve the task.
3. They maintain effective relationships.
LEADERSHIP NEEDS

Leaders must satisfy three areas of need:

1. Task needs.
2. Individual needs.
3. Group needs – to build and maintain
team spirit.
John Adair
LEADERSHIP/MANAGEMENT STYLES

Leadership/management styles can be classified as:

• charismatic/non-charismatic;
• autocratic/democratic;
• enabler/controller; or
• transactional/transformational.
LEADERSHIP QUALITIES

John Adair lists the following leadership qualities:

• enthusiasm;
• confidence;
• toughness;
• integrity;
• warmth;
• humility.
REQUIREMENTS FOR LEADER BEHAVIOUR
The top 10 requirements for leader behaviour as ranked by
respondents to an Industrial Society survey were:
1. Shows enthusiasm.
2. Supports other people.
3. Recognizes individual effort.
4. Listens to individuals’ ideas and problems.
5. Provides direction.
6. Demonstrates personal integrity.
7. Practices what he/she preaches.
8. Encourages teamwork.
9. Actively encourages feedback.
10. Develops other people.
EMOTIONAL INTELLIGENCE AND
LEADERS
Effective leaders have a high degree of emotional
intelligence, which is defined as ‘the capacity for
recognizing our own feelings and that of others, for
motivating ourselves, for managing emotions well
in ourselves as well as others’.
Daniel Goleman
DIFFERENCES BETWEEN LEADERSHIP AND
MANAGEMENT
The key words describing leadership are: delivering change,
developing a vision, communicating the vision and the
direction, proactive, high risk, and aligning and motivating
people.
The key words describing management are: organizing,
planning and budgeting, rationality and control, reactive and
risk averse.
Zaleznik and Kotter

The differences in these roles are considerable and there is

scope for potential tension and conflict between them.