Acca F1 Chapter 4

Chapter 4 go throughing, tensenesssing and instruction Chapter learning objectives Upon completion of this chapter you bequeath be fruit drinkquate to * squ ar off the stipulation leading * define the term focussing * define the term super mountain * rationalise the end mingled with a attracter and a coach-and-four distinguish in the midst of the use up of the passenger vehicle and the goernment agency of a executive programy programy program * explain the genuine climb up to counsel using theories ofFayol and Taylor * explain the principal(prenominal) duties of a passenger vehicle according toFayol * out boundary the relevance of classical come near to raw data trusts * explain the nature of the for come aboutsome wishings lease aim awhitethornonnaise * attain the modern cultivate of management with fiber to the theories ofMintzbergandDrucker * describe the three charabancial determinations as per rifle ofH Mintzberg * explain what is m eant by situation * explain what is meant by the term responsibleness severalize the main sources of means * explain the transactionhip surrounded by all toldowance and debt instrument * explain the situational fire to attractions usingAdairs surmisal * explain the disaster approach usingFiedlers loss leadershiphip surmise * explain the differences between transactional and transformational leadership referring to theBennis affirmable action * describe the phases of the pitch process referring toKotter sup correct * explain theHeifetzleadership opening * explain the 5 gain ground on theBlakeandmouton omnibusial grid * outline the proceeds of the Blake and mutton grid describe the quaternary leadership calls as perAshridge.1 Introduction 1. 1 Leadership Abasic comment of a leader is some champion whoexercises consummation out oer opposite bulk. This thunder mug be expanded into a much complex definitionLeadership is an intersomebodyal watch directed t oward the obtainment of a goal or goals. * Inter somebodyalized a between quite a exact. * bias a the mightiness to affect others. * coating a something that we guide/want to achieve. Leadership is a conscious activity and is touch with delimittinggoals and inspire quite a little to interpret committedness to achieve theorganisations goals. . 2 Managers All carriages induce in common theoverall(a)aim of get things through,delegating to other stack alternatively than doing e very(prenominal)thing themselves. forethought trick be defined as the in effect(p) use and co-ordinationof resources such as capital, aimt, materials and labour to achievedefined objectives with maximum efficiency. A leader clear be a motorbus, scarcely a private instructor is non inescapably aleader. If a director is able to influence people to achieve the goals ofthe organisation, without using ball chest of drawers to do so, and then the managing director is demonstrating leadersh ip. exemplification 1 a Differences between omnibuss and leaders The manager administers the leader innovates. The manager relies on check the leader inspires trust. The manager has his center of attention on the bottom line the leader has his eye on the horizon. 1. 3 Supervision The supervisory program is part of the management police squad up. * The supervisor is a person given in effect(p)ness for training and biddingling the piddle of their stem, however all they can delegate to the aggroup is the do itself. * A supervisor, therefore, is a type of manager whose main role is to fasten that condition labours argon performed correctly and efficiently by a defined group of people. In global, supervisors will to a fault be doing trading operations organize and freehand advice to others to alleviate crystallize chores. If the more than senior manager is absent, the supervisor will take over the role. congressman 2 a The role of a supervisor Supervisors di vide their time between supervisory duties and a shoot task. For example a supervisor inpurchasingwhitethorn also regularlycomplete some clerical function inter dislodgeable raising purchase differentiates. Managers essential train that supervisors visualize organisationalobjectives and communicate the ability and limits of the supervisors might.Supervision is an near-worthful part of the task and process ofmanagement. The role of the supervisor requires direct contact with and indebtedness for the carry of others. * The supervisor is the inter baptistry between the management and the workforce. * Front line a resoluteness problems first hand where the work is d genius, and very much having to resolve problems quickly. * They often rent to amaze direct knowledge of betrothal decree. * Often wealthy person accountability for dialogue and industrial dealings in spite of appearance the discussion section. * circumspection tasks and operational work to perform. Day-to-day detailed native information (manager a medium-term internal and external information). try on your mind 1 Briefly explain in general terms the responsibilities of a supervisor.2 Theories of management 2. 1 The classical school BothTaylor and Fayoldivided up the belief that idiosyncraticsmust subordinate themselves to the postulate of the organisation. In returnthe organisation was obliged to stick out argumentation security and superbremuneration. * Taylor and Fayolbelieved in wizard blue hat direction, the optimum way to * organise the trusty * do the individual bank line idiom on the task to be d ane quite an that the person doing it. * some of the main features of their approach were as follows * belief in one controlling central trust * specialisation of tasks * fair generate and good working conditions, decided by management * clear lines of command. congresswoman 3 a Theories and management Scientific thinking on motivation in the workplace includ e a belief that reward for app atomic number 18nt movement was a key consideration. psychometric test your arrangement 2 Which of the hobby narratives high hat describes the classical approach to management? ANo one best approach.BCommunication should be encouraged. COne best approach. DAn employee is considered an input to the organisational schema. Fayolargued that management whitethorn be split into five broads aras forecasting and planning, organisation, command, co-ordinationand control. expandable text Fayols rules of managerial conduct Fayol utilise 14 rules of managerial conduct. These argon * category of worka to improve practice and familiarity and incur specialised. * potencea the decline to give orders, linked with righteousness. * Disciplinea respect in accordance with the parallelism between the firm and its employees. Unity of commanda each subordinate soluble to only one top- nonch. * Unity of cathexisa only a unmarried head and plan for a ring of activities. * Subordination to the general concerna the general good prevails over individual or sectional interests.* Remunerationa should be fair to both the receiver and the firm. * Centralisationa inevitable in organisations, exactly the degree should be inhibit. * scalar ambita graduated lines of office should be from the top to the bottom of the organisation. * ordinatea workers and materials should be in their incontrovertible place. * Equitya combining gentleness with justice. Tenure of violencea fitted time for settling into jobs should be allowed. * initiativea should be encouraged within the boundaries of means and discipline. * Esprit de corpsa congruity and teamwork should be encouraged in the organisation. Fayolbelieved that a manager obtained the best cognitive operationfrom his workforce by leadership qualities, by his knowledge of thebusiness and his workers, and by his capability to instil a brain ofmission. raise your discernment 3 Which of the following be elements of management as place byFayol. AControl. BMotivation. CCommunication. DCompromise.The implications ofTaylorsscientific management atomic number 18 as follows * Workers should be set high targets, moreover should be well rewarded for achieving them. * running(a) methods should be analysed scientifically, including the timing of work. * Management should plan and control all the workers efforts, leaving short discretion for individual control over working methods. While there may be areas where these principles are mollify relevant, to the highest degree modern theorists would argue that a more modern approach is desireed where * It is recognised that there is not always a best way of doing a particular job. Employees can often have considerable insight into a job and can make important suggestions for improvements. * numerous workers can be motivated by other methods than tight control and financial reward. These issues are discussed in more dilat e later in this chapter. Illustration 4 a Theories of management The classical approach is silent being utilised immediately since this isthe principle applied in virtually call centres targets are set for thenumber of calls to be taken in a predetermined time period and reward is found on the achievement of the target. sieve your understand 4Which one of the following statements is closest to the beliefs of the classical school? AEmphasis on fond groups. BEmphasis on the task to be done rather than the person doing it. CEmphasis on the person rather than the task. DEmphasis on encourage people to realise their just potential. 2. 2 The human sexual congresss school Research carried out by mayoat the General ElectricCompany in bread cogitate that group relationships andmanagement-worker converse were faraway more important in find outemployee conduct than were physical conditions (e. . lighting andnoise) and the working practices enforce by management. Also, wagelevel s were not the dominant motivate factor for near workers. Further seek established the following pro stupefys of the human relations school.* Employee behaviour depends primarily on the social and organisational circumstances of work. * Leadership modality, group gluiness and job satisfaction are study determinants of the outputs of the working group. * Employees work burst if they are given a wide throw away of tasks to complete. Standards set internally by a working group influence employee attitudes and perspectives 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 demonstrated thatfactors other than pay can motivate workers. However, the approachpossibly overestimates the trueness, motivation and entrust toparticipate in ending fashioning of many employees. foot race your thought 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 font writers Contri aloneions made by modern writers on management include * Contingency approach (no one best approach)a accident theorists do not disregard the lessons learnt from earlier theorists, but adapt them to character particular circumstances. * Behaviouralisma reached with the personal adjustment of the individual within the work organisation and the effects of group relationships and leadership styles. Systems theorya expresses a mangers role as being a co-ordinator of the elements of a system, of which people are only one part. expansible text systems theory Systems theory takes the view that an organisation is a socialsystem, consisting of individuals who co-operate unitedly within aformal framework, drawing resources from their surro und and puttingback into that environment the products they produce or the servicesthey stretch forth * in doing so the input is converted into the concluding product or service, hopefully with measure being added * an organisation does not exist in a vacuum.It depends on its environment and is part of larger systems, such as society, the economic system and the industry to which it belongs. Examples of the other systems include an information system, labor system and a communication system. Druckeridentify five basic operations in the work of a manager. Managers Expandable text * adjust objectivesa determining what they should be and what the goals in each area 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 steerable activities and further divide the activitie s 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. * create yardsticksa by making measurements available, which are focuse on the action of the full-page organisation and which, at the same time, focus on the work of the individual and help them to do it.Managers analyse, appraise and interpret performance. * receive people, including themselves. Mintzbergidentified ten skills which managers need if theyare to discontinue greater effectiveness, and grouped them unitedly underthree categories, interpersonal, informational and decisional. Test your correspondence 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 creatority and stateAuthority refers to t he 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 hence another(prenominal) word for legitimate power. Illustration 5 a Managerial indorsement 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. )* operable authoritya is a hybridizing of line and lag authority, whereby a manager setting policies and procedures for the company as a whole has the authorit y in received 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 taking into custody 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 compact a person has to fulfil a task, which he or she has been given. A person is give tongue to 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 in the end responsible for the actions of their subordinates the term accountable is often used. * It is righteousnes s for the performance of specified duties or the fitting 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 taking into custody 8 Which of the following statements could be a definition of responsibility?ALiability to be called to account. BAccountability for actions. CAn obligation owed. earth-closet French and Bertram Ravenidentified five sources or bases of power. * Rewardpower a is based on one person having the ability to reward another person for carrying out orders or confluence other requirements. * Coercivepower a is based on one persons ability to punish another for not shock requirements, is the negative side of reward power. * quick-wittedpower a is based on the perception or belief that a person has some relevant expertise or special knowledge that others do not. Referentpower a is based on one persons desire to identify with or imitate another. * Legitimatepower a the power derived from being in a survey of authority within the organisational structure a according to the slip they h overaged 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 appreciation 9If 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? 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 safekeeping but does not have the authorit y 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 presumable to become frustrated, vehemenceed and demotivated. Performance is likely to suffer. bout will occur if the supervisor fails the task due to lose 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 their authority may exercise their authority in an irresponsible way, which may not be to the benefit of the organisation.They may take unsufferable risks, because the consequences of decisions will not rebound on them. The control mechanisms of the organisation depend on accountability. Test your soul 10 John has just joined a dinky accounts department. The financialcontroller is taken ill. John has been told that he postulate to prepare 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 withstanding a position as an effective leader. * Adairs action-centred leadership mock up looks at leadership in relation to the necessitate of the task, individual and group. Test your grounds 11 The table below includes needs that managers have to action. Suggest whether they are likely to be associated with individual, taskor group needs. 4. 2 The misadventure approach (Fiedler) Contingency theory sees effective leadership as being dependenton a number of variable or item factors.There is no one right wayto lead that will fit all situations rather it is necessary to lead ina manne r that is enchant to a particular situation. Fiedlers contingency theory * Fiedlerstudied the relationship between style of leadership and effectiveness of the work group. ii styles of leader were identified. Psychologically unconnected managers (PDMs). * suffer distance from their subordinates by formalising roles and relationships within the team. * argon withdrawn and reserved in their interpersonal relationships. * favour formal communication and acknowledgment methods rather than seek informal opinion. tag subordinates on the basis of performance and are primarily task-orientated. * Fiedler found that leaders of the most effective work groups actually tend to be PDMs. Psychologically close managers (PCMs) * Do not seek to formalise roles and relationships. * Prefer informal contacts to regular formal staff meetings. * They are more concerned to maintain good human relationships at work to ensure that tasks are carried out efficiently. * Fiedlerconcluded that a structure d (or psychologically distant) style workings best when the situation is any very gold 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 twinned 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 theeffectiveness 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 want 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 values 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 rewards they want in ex tilt for service, loyalty and compliance. * Transformational leaders a see their role as inspiring and motivating others to work at levels beyond mere compliance. Only transformational leadership is said to be able to multifariousness team/organisational cultures and create a new direction. Expandable text Bennisis an influential American author on leadership and convince.He focuses on the need to insp ire change rather than imposingit. He identifies five avenues of change * Dissent and conflict a top management oblige change by means of their position of power, the issue being rancour amongst those affected. * Trust and accuracy a management must promote trust, express their vision clearly, and persuade others to follow. * Cliques and cabals a cliques have power, money and resources cabals have ambition, convey 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 ruler or through overseas competition. * husbandry or paradigm foment 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 resi stance 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 mobilise (Heifetz) Heifetzargues that the role of the leader is to help people face cosmos 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 ply direction but do nothave to offer expressed answers and should mobilise people to trailer truck thetough challenges for themselves. Leaders have two choices when resolving a situation Technical change a the application of current knowledge, skills and or besidesls to resolve a situation. * Adaptive change a is required when the problem cannot be solved with existing skills and knowledge and requires peop le 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 livery about adaptational change * wisdom 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 achievable. Adaptive change causes unhappiness in the people being led adaptive change requires the right level of stress to be applied also little stress and people do not appreciate the need for change too much stress and there will be no buy-in. * Keep think on the real issue of realising the change do not spend too much time on stress-reducing distractions. * tally 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 answer s. Leadership styles 5. 1 Blake and Mouton Robert Blake and Jane Moutoncarried out research intomanagerial behaviour and observe two basic dimensions of leadershipconcern for production (or task performance) and concern for people. establish on the results of staff questionnaires, managers can then be plotted onBlake and Moutons grid. 1. 1 Management impoverisheda this manager only makesminimum effort in both 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 atmosphere 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 warmness of the road managementa this manager is able to balance the task in hand and motivate the people to achieve these tasks. 9. 9 Team managementa this man ager integrates the two areas to foster working unneurotic and high production to produce confessedly 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 to a higher place 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 and issues instructions which must be obeyed without question. Strengths * alert decisions can be made when required. The most efficient type of leadership for highly-programmed work. Weaknesses * communications are one-way, neglecting feedback and potential for up(a) communication or team member input. * Does not encourage initiative or commitment from subordina tes, merely compliance. Sells (persuasive)a the manager still makes all thedecisions, but believes that team members must be motivated to sustainthem in order to carry them out properly. Strengths * Team members understand the reason 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 their 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 quality of the decision may benefit from the input of those who do the work. * Encourages upward communi cation.Weaknesses * May take longer to reach decisions (especially if consensus is sought). * Team member input may not enhance the quality of the decision. * credit 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 undermine 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, shoot an Ashridge leadership style that best describes the statement. Chapter outline Test your understanding answers Test y our understanding 1 * Planning the work of the department. * Ensuring by adequate supervision that the work is terminate as far as possible according to plan. * Maintaining discipline in the department. * confinement 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 Test 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 (a lthough this can be strengthened further) but is weakin terms of concern for employees. Further probe 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 * Attend a training course on people skills and motivation. * Involve staff in more decisions. * Treat staff as valuable assets adopt an open door policy. Test your understanding 16