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Managing Organization ABE Graduate Diploma (QCF Level -6)

Prepared & Presented

By

Pyi Kyaw LynnB.A (English), Yangon University

M.B.A (Finance), Assumption University of Thailand

1st Feb 2015

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CHAPTER [V] : THE ROLE OF MANAGEMENT

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TODAY’S AGENDA

A. The Functions, Roles &

Activities of Management

B. Leading or Managing ??

C. Enhancing Organizational

Performance

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[A] THE FUNCTIONS,ROLES & ACTIVITIES OF MANAGEMENT

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Managers are I. responsible for the

achievement of organization’s objectives by making

II. decisions & planning operations,

III. communicating those plans to subordinates, and

IV. leading, coordinating & controlling the activities involved in putting those plans into operation.

RESPONSIBILITY

PLANNING &

DECISION MAKING

ORGANIZAING &

DIRECTING

COMMUNICATION

CO-ORDINATION &

CONTROL

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Functions of Management

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Functions of Management

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The determination of Policy : Long term aims in which Goals & Objectives are set.

The determination of Strategies : General program or plan of action, medium term, aimed at putting policies into practice & involving setting priorities. Decision of deployment of resources.

The determination of Tactics [operational plan]: short term plan to implement strategic decisions, likely to be changed frequently than strategies in response to situational changes.

The setting of Goals & Objectives : specifications of what is to be achieved at each level.

The monitoring of results : reviewing results in meeting objectives & feeding back into other elements of the process.

The on-going process of selecting, from a number of alternatives, a course of action aimed at achieving objectives, selecting policy, strategy & tactics.

Solving problems, allocation of resources & negotiating.

PLANNING

DECISION MAKING

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Cont’d

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Organizing is the process which actually arranges for the work to be done. Allocating of resources [ finance, materials, time] & structural arrangement of working units [grouping] & ensuring harmony in staff relationships.

Directing involves ensuring that staffs are really engaged in activities to meet plans & goals, motivating , supervising and staffing [HR function].

Central to the management – for passing information both to subordinates & to senior management. E.g., Planning & decisions along with directions about operational planning are passed down to subordinates.

Information about performance & problems are passed up to senior management.

ORGANIZING & DIRECTING

COMMUNICATING

CO-ORDINATING

The way in which management ensures that operational plans are implemented. It involves not only the co-ordination & control of staff deployment & control of other resources [financial, physical, technical & information].

Balancing & maintaining the team by unifying & harmonizing activities.

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Cont’d

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CONTROLLING

The process of continuous monitoring & regulating performance to ensure that it conforms to the plans & goals or designated activities of the organization.

Checking actual performance & comparing against standards to ensure satisfactory progress & performance.

Control also involves taking appropriate corrective action to ensure that what is actually happening is in accordance with the expectations of the planning process.

Identifying weaknesses & errors by controlling feedback & conforming activities with plans, policies & instructions.

Control process is largely dependent upon management information which is crucial to assessing the level of achievement- financial reports, output totals, progress reports, etc.

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Roles of Management

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Figurehead

The manager perform ceremonial & symbolic duties as representative of the organization.

Leader

Develops and maintains an external contacts network for information.

Liaison

The manager motivate, communicates and coach subordinates.

INTERPERSONAL

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Cont’d

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Monitor

Disseminator Distribute information to subordinates & outside.

Spokesperson

Formal provision of information to the outside world on behalf of organization.

INFORMATIONAL

Gather external & internal information relevant to the organization.

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Cont’d

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Entrepreneur

Disturbance handler

Negotiator

DECISIONAL

Initiate, develop & facilitate change & innovation.

Allocates & control of the use of resources [labor, finance, materials, time]

Participates in negotiation with other organizations & individuals.

Resource allocator

Troubleshoot problem & deals with unexpected events

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Activities of Management

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Determining Objectives to achieve.

Defining the problems that need to be solved to achieve the objectives.

Searching for solutions to the problems which have been specified.

Determining the best solutions to the problems

Securing agreement on implementation

Preparation & Issue of Instructions

Execution of agreed solutions

Devising & Discharging an auditing process – continuous monitoring & assessment of goals.

[A]

[B]

[C]

[D]

[E]

[F]

[G]

[H]

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Levels of Management

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Top or senior management

Responsible for the entire organization. Concerned with overall planning & determination of goals & objectives & deciding upon appropriate course of action at the highest or institutional level

Middle management

“ Sandwich” between senior management & first line supervisors, specialists technicians & professionals. Mainly responsible for the action or operational plan , organizing, allocating resources, building overall structure & integrating all activities.

First Line Management

“Supervision” directly responsible for the day to day operation of discrete tasks within a determined framework . Also known as technical level with limited scope for organizing regarding resource allocating & operational arrangements.

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[B] LEADING OR MANAGING ??

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LEADING MANAGING

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Leadership Styles

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Ability & Willingness Relationship

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Autocratic or Directive Leadership

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The style involves assuming full authority & responsibility for the people they are leading.

Leader set goals, make decisions, give orders & instructions of what to do & how to do it.

Particularly appropriate for short term results or when managing in crisis. E.g., military situations.

DEF

ADv

The style can cause frustration among people. People can become totally dependent on the leader rather than thinking for

themselves. It can stifle innovation & creativity & group members might not feel committed

to the task or the leader.

DIS

If used positively, it can be motivating & inspire confidence because of people are clear about what is expected. Leader feels in control & quick decision making. It is helpful for people who are new to a situation or lack of competence.

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Democratic or Consultative Leadership

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Leader presents the problems to the team & consults with them, encouraging contributions & ideas from those with expertise before taking action.

Promote compromise but the best solution can not be achieved.

DEF

ADv

Potential disagreement between the leader & the group decisions, causing conflict of interests.

The style presume that members are competent to contribute to the decisions process but it can slow down decision making.

DIS

The leaders feels supported by the group. Team members are encouraged to contribute, resulting greater commitment, motivation & creativity. Members feel a sense of respect for their skills & experience.

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Laissez-Faire Leadership

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“ Free rein [auto-pilot]” the leader take a passive role & allow the members to make their own decisions. It might seem as if the leader is abdicated all responsibilities but the leader is still carrying out key functions such as overall target setting & continuous monitoring.

DEF

ADv

Some members will be uncomfortable with a lack of clear direction. There is potential that the members will get involved in irrelevancies.

DIS

The members have freedom to act & likely to be more motivated. There is opportunity for personal growth for members. Works particularly well if the members are experts in their field.

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Participative leadership

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The style involves sharing leadership responsibilities & decision making with the group members.

Members accept the level of responsibility & leader judge how much authority to delegate & how much to keep.

It goes beyond consulting [ just asking for opinions] & empower the group to explore problems, gather information , make decision & finally implement it.

DEF

ADv

Not everyone will feel able to participate. It can threaten the leadership role. It does not work well if members are not very interested in the task.

DIS

Encourage the creativity & innovation among group members. Members are more likely to be mentally & emotionally committed to succeed. Opportunity for members to grow through meeting challenges.

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Situational leadership

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DEF

4Groups

The style to be chosen according to the requirements of the tasks faced & the characteristics of the group.

To choose the suitable style for each situation , the leader has to assess - competence of the individuals within the team, in relation to the task. - commitment of the individuals [partly related to the confidence & motivation]

Enthusiastic beginner : low competence & high commitment Disillusioned learner : low competence & low commitment Capable but cautious performer : moderate competence & varying commitment Self-reliant achiever : high competence & high commitment

Directing : high directing & low supporting [ one way communication] Coaching : high directing & high supporting [two way communication ] Supporting : low directing & high supporting [experienced group ] Delegating : low directing & low supporting [little communication ]

4 leadership styles

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Situational leadership

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Situational leadership

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Situational leadership

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The four path-goal types of leader behaviors are:

Directive: The leader informs her followers on what is expected of them, such as telling them

what to do, how to perform a task, and scheduling and coordinating work. It is most effective

when people are unsure about the task or when there is a lot of uncertainty within the

environment.

Supportive: The leader make work pleasant for the workers by showing concern for them and by

being friendly and approachable. It is most effective in situations in which tasks and relationships

are physically or psychologically challenging.

Participative: The leaders consult with their followers by consulting with them before making a

decision on how to proceed. It is most effective when subordinates are highly trained and

involved in their work.

Achievement: The leader sets challenging goals for his followers, expects them to perform at

their highest level, and shows confidence in their ability to meet this expectation. It is most

effective in professional work environments, such as technical, or scientific; or in achievement

environments, such as sales.

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S1- Telling : emphasizes high amounts of guidance (task) but limited supportive (relationship) behavior. This style is most appropriate for low follower readiness [R 1]

S2- Selling: emphasizes high amounts of guidance (task) and high supportive (relationship). This style is most appropriate for low to moderate follower readiness [R 2]

S3- Participating: emphasizes a high amount of two way communication and supportive (relationship) behavior but low amounts of guidance (task behavior). This style is most appropriate for moderate to high follower readiness [R 3]

S4- Delegating : emphasizes low direction or support with low levels of both task and relationship behaviors. This style is most appropriate for high follower readiness [R 4]

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Directive leadership: involves letting subordinates know exactly what is expected of them, giving specific direction and closely supervising them. They are expected to follow rules & regulations.

Supportive leadership: involves a friendly and approachable manner & displaying concern for the needs and welfare of subordinates. Facilitate in making decisions.

Participative leadership: involves consulting with subordinates and the evaluation of their opinions & suggestions before the manager makes the decision.

Delegated leadership: involves setting challenging goals for subordinates, seeking improvement in their performance and showing confidence in subordinates’ ability to perform well. Delegating for decisions and implementation.

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Management Styles

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Management by Objectives

In1950s by Peter Drucker & based on defining objectives for each employee & controlling performance. People perform well if they have clear objectives & are involved in setting the objectives.

The manager walks about the workplace to see what is happening, avoiding the isolation of the manager sitting in the office all day without knowing what is really going on.

Management by walking

about

Mushroom Management

Seagull Management

Crisis Management

Firearm Management

Like mushrooms, people are kept in the dark & shoveled with abuse [dirt] on them. To be avoided !!!

Like seagulls, manager fly in occasionally, shout people noisily from a great height & then go back without getting involved.

Managers fight the latest crisis & do not have the time or the competence to stop & plan for the next day or task.

Managers shout and sack the employees & taking decisions without any understanding of the situations, resulting chaos, more shouting & more wrong decisions.

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[C] ENHANCING ORGANIZATIONAL PERFORMANCE

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MOTIVATION

MANAGMENT

Motivation is the energy & desire to work towards a specific goal. Without motivation, employees are likely to be unproductive, disinterested. Motivation is important to ensure that employees want to work hard & want to

achieve the objectives of the organization.

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Motivation Theories

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Maslow’s

Hierarchy of Needs Model

Herzberg’s

Two factor model

Adam’s

Expectancy theory

Goal Theory

Equity theory

Vroom’s

Lataham & Locke’s

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[hunger , thirst, shelter,

warmth]

[security,

health care]

[ love,

affection]

Maslow’s Hierarchy of Needs

Individuals have variety of needs & they are organized into hierarchy.

The need in each level of the pyramid to be fulfilled before moving to the next level.

Managers need to understand the needs to achieve the goals and objectives of the organization.

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Maslow’s Hierarchy of Needs

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Herzberg’s Two Factor Model [1950s]

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Herzberg’s Two Factor Model [1950s]

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Dissatisfy stuffs if they are not met, even if they are met, they don’t motivate staffs.

E.g., poor working condition demotivate staffs but good one does not motivate.

Important things such as achievement, personal growth, the interest of the work.

The more they are increased, so does motivation.

HYGIENE (Maintenance) FACTORS SATISFIERS [motivators]

Once hygiene factors are addressed, the manager can work on increasing the satisfiers.

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Motivators & Hygiene Factors

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Job Satisfaction Influenced by

Motivators Achievement Recognition Work itself Responsibility Advancement Growth Praise & Appreciation Encouragement

Job DissatisfactionInfluenced by

Hygiene Factors Supervision Company policy Relationship with

supervisor & peers Working conditions Salary & bonuses Personal life Status & security

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Motivators & Hygiene Factors

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Motivators & Hygiene Factors

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Adam’s Equity Theory

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People are motivated if they perceive that they are treated fairly & demotivated if they perceive that their treatment is unfair.

People make perceptions by comparing their treatment & the treatment given to others.

Management needs two responses to this theory

Everyone is to be treated fairly, not to be the same, meaning the treatment to be explainable & reasonable. E.g., high /low pay

To be transparent when people are deal with so that people rely on fact rather than their perceptions.

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Adam’s Equity Theory

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Adam’s Equity Theory

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Vroom’s Expectancy Theory

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Vroom’s Expectancy Theory

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E.g., If management plan to motivate staffs by promising them a bonus, if they achieve particular target, it has to be valued & believable.

If the level of bonus if too low, it will not be motivating employees.

Valency - the desirability or strength of the belief that employee associates on a particular outcome

Expectancy – the belief that it will actually happen or the extent of perception that effective performance will produce desired rewards or outcome

E.g., If management promised bonuses in the past & never paid, there will be lack of belief.

If the target is so high & unachievable , it will not be motivating.

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Vroom’s Expectancy Theory

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Latham & Locke’s Goal Theory

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Latham & Locke’s Goal Theory

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Goals which are motivating are clear, stretching & specific.

Goals which are demotivating are vague, keep changing & believed to be unachievable.

Try to meet the basic needs of employees & ensure that employees feel part of team.

Address safety & demotivating issues. Treat employees fairly. Be transparent in dealing with employees. Ensure that any proposed motivator is

valued & achievable & set clear goals.

Motivation & performance are directly linked to the goals already set.

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Goal Theory

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Goal Theory

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Management, Development & High Performance Organizations

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Continuing education courses & tuition reimbursement

Career development or counseling services

Opportunities for employee growth & development include:

Skills training provided in-house or via outside training centers

Opportunities for promotion & internal career advancement

Coaching, mentoring & leadership/management development programs

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Thank You !!

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Q & A

1. “In the variable conditions faced by organizations in the twenty-first century, the most important quality of a leader is their ability to create the conditions for successful and continuous change.Explain the differences between leadership and management.

[10 marks]Discuss the importance of effective leadership during a period of rapid organizational change. [15 marks]

2. One of the most interesting findings about management activity is how busy managers are and how hectic their normal working day can be.

Explain the main functions of management. [10 marks]Discuss the extent to which these functions accurately describe what managers actually do. [15 marks]

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Q & A

3. (a) Using examples to support your answer, distinguish between centralized and decentralized authority. [10 marks](b) Analyze the importance of co-ordination as a key management function in a decentralized organizational structure. [15 marks]

4. A key part of a manager’s role is to motivate his or her employees. Using examples from the work place and specific motivation theories, explain how managers can ensure their employees are fully motivated. [15 marks]

5. You are the manager of a multinational car manufacturer and, due to the economic recession, the organization is going to reduce the size of its workforce. This will involve a redundancy program which will, no doubt, cause anxiety and conflict amongst the employees.Discuss how manager can both provide leadership and manage any conflict arising with his employees during these uncertain times. Use workplace examples to support your answer. [20 marks]

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