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MANAGEMENT AND ORGANISATIONAL BEHAVIOUR LAURIE J. MULLINS SEVENTH EDITION Additional student support at www.booksites.net/mullins

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  1. 1. This market leading text guides students to a thorough understanding of organi-sational behaviour and relates this to effective management practice. It is aninvaluable resource, which provides a clear and insightful introduction toMANAGEMENTmanagement studies and acts as a comprehensive point of reference thereafter.AND ORGANISATIONALBEHAVIOURLAURIE J. MULLINSSEVENTH EDITIONAdditional student support at www.booksites.net/mullins
  2. 2. MANAGEMENT ANDORGANISATIONAL BEHAVIOUR Visit the Management and Organisational Behaviour, Seventh Edition Companion Website at www.booksites.net/mullins to find valuable student learning material including: Multiple choice and short answer questions to help test your learning Technology Solutions short web articles which explore further the managerial implications of technology Weblinks to relevant sites on the web An online glossary to explain key terms
  3. 3. About the authorLaurie J. Mullins was formerly principal lecturer at The Business School, Universityof Portsmouth. Before taking early retirement, Laurie specialised in managerialand organisational behaviour, and managing people at work, and was subjectleader for the behavioural and human resource management group.Laurie had previous experience of business, local government and universityadministration and human resource management. For a numbr of years he wasalso a member of, and an instructor in, the Territorial Army.He has undertaken a range of consultancy work; served as a visiting selectorfor UNAIS and VSO; acted as advisor and tutor for a number of professional andeducational bodies including UNISON Education; and served as an externalexaminer for university degree and postgraduate courses, and for professionalorganisations.Laurie has undertaken a years academic exchange in the ManagementDepartment, University of Wisconsin, USA, and a visiting fellowship at the Schoolof Management, Royal Melbourne Institute of Technology (RMIT) University,Australia, and given invited lectures in The Netherlands and South Africa. Laurieis also author of Hospitality Mangement and Organisational Behaviour.About the contributorsLinda Hicks is a Chartered Occupational Psychologist who specialises inmanagement development and coaching within her consultancy Zest for Change.David Preece is Professor of Technology Management and Organisation Studies inThe Business School, University of Teesside.
  4. 4. Seventh EditionMANAGEMENT ANDORGANISATIONALBEHAVIOURLaurie J. MullinsFormerly, Principal LecturerThe Business SchoolUniversity of Portsmouth
  5. 5. To Pamela And for Kerrie and Tracey, and PaulPearson Education LimitedEdinburgh GateHarlowEssex CM20 2JEEnglandand Associated Companies throughout the worldVisit us on the World Wide Web at:www.pearsoned.co.ukFirst published in 1985 in Great Britain under the Pitman imprintFifth edition published in 1999 by Financial Times Pitman Publishing imprintSixth edition 2002Seventh edition 2005 Laurie J Mullins 1985, 1989, 1993, 1996, 1999, 2002, 2005 Chapter 9 Linda Hicks 1993, 1996, 1999, 2002, 2005 Chapter 10 Linda Hicks 1999, 2002, 2005 Chapter 17 David Preece 1999, 2002, 2005The right of Laurie J Mullins to be identified as author of this work has been assertedby him in accordance with the Copyright, Designs and Patents Act 1988.All rights reserved. No part of this publication may be reproduced, stored in a retrievalsystem, or transmitted in any form or by any means, electronic, mechanical,photocopying, recording, or otherwise, without either the prior written permission of thepublisher, or a licence permitting restricted copying in the United Kingdom issued by theCopyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP.All trademarks used herein are the property of their respective owners. The use of anytrademark in this text does not vest in the author or publisher any trademark ownershiprights in such trademarks, nor does the use of such trademarks imply any affiliation withor endorsement of this book by such owners.ISBN 0 273 68876 6British Library Cataloguing-in-Publication DataA catalogue record for this book is available from the British Library.Library of Congress Cataloging-in-Publication DataMullins, Laurie J. Management and organisational behaviour / Laurie J. Mullins.--7th ed.p. cm Includes bibliographical references and index. ISBN 027368876-6 (pbk.)1. Organizational behavior. I. Title HD58.7.M85 2004 658--dc22200404691910 9 8 7 6 5 4 3 209 08 07 06 05Typeset by 30 in Stone SerifPrinted and bound by Mateu-Cromo, Artes Graficas, SpainThe publishers policy is to use paper manufactured from sustainable forests.
  6. 6. CONTENTS IN BRIEFPart 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR 1 1 Introduction3 2 The Nature of Organisational Behaviour 25 3 Approaches to Organisation and Management65Part 2 THE ORGANISATIONAL SETTING111 4 The Nature of Organisations 113 5 Organisational Goals, Strategy and Responsibilities 144Part 3 THE ROLE OF THE MANAGER 187 6 The Nature of Management189 7 Managerial Behaviour and Effectiveness236 8 The Nature of Leadership280Part 4 THE INDIVIDUAL333 9 Individual Differences33510 The Nature of Learning38911 The Process of Perception 43412 Work Motivation and Rewards 470Part 5 GROUPS AND TEAMWORK 51513 The Nature of Work Groups and Teams 51714 Working in Groups and Teams 554Part 6 ORGANISATIONAL STRUCTURES 59315 Organisation Structure and Design 59516 Patterns of Structure and Work Organisation 63317 Technology and Organisations662Part 7 MANAGEMENT OF HUMAN RESOURCES 69718 Job Satisfaction and Work Performance 69919 Human Resource Management 74620 Resourcing the Organisation 795Part 8 IMPROVING ORGANISATIONAL PERFORMANCE82921 Organisational Control and Power83122 Organisation Development (Culture, Conflict and Change) 88723 Management Development and Organisational Effectiveness 941
  7. 7. OH, GREAT SPIRIT,GRANT THAT I MAY NOTCRITICISE MY NEIGHBOURSUNTIL I HAVE WALKED A MILEIN THEIR MOCCASINS.Traditional Native-American saying
  8. 8. CONTENTS IN DETAILExhibits, Management in Action, Case Studies and3 Approaches to Organisation andBusiness Pressxiv Management 65In acknowledgement and appreciationxviiManagement theory 66Publishers acknowledgementsxviiiDevelopments in management and organisationalGuided tour of the bookxxbehaviour 66Guided tour of the Companion Website xxiiThe classical approach67Scientific management 69Relevance of scientific management71Part 1Bureaucracy 74MANAGEMENT AND ORGANISATIONAL Criticisms of bureaucracy 75BEHAVIOUR Evaluation of bureaucracy 76Structuralism 781 Introduction3 The human relations approach78About this book 4 Evaluation of the human relations approach80The aims of this book 4 Neo-human relations 81The seventh edition 6 The systems approach82Your study of the book 16 The contingency approach84The changing nature of work organisation 17 Other approaches to the study of organisations84The study of management and organisationalThe decision-making approach85behaviour19 Social action 85The use of case studies20 A number of different approaches87Postmodernism 872 The Nature of OrganisationalRelevance to management and organisationalbehaviour 89Behaviour25Japanese management 90The meaning of organisational behaviour26Towards a scientific value approach?91Influences on behaviour in organisations 27Benefits to the manager 93Behavioural science a multidisciplinary approach 29Management in Action 3.1: Japanese management 95The importance of people and organisationalCase study 3.1: Helgaton Ltd: organisational theory behaviour 30in practice 102Organisational metaphors 32Orientations to work and the work ethic33Management as an integrating activity34The psychological contract 37 Part 2Changing nature of the psychological contract39 THE ORGANISATIONAL SETTINGOrganisational practices 40The Peter Principle40Parkinsons Law414 The Nature of Organisations 113The need for a cross-cultural approach 42Is organisational behaviour culture-bound? 43 The context of the organisation 114Models for understanding the impact of culture 44 The formal organisation 115Five dimensions of culture: the contribution of Basic components of an organisation 117 Hofstede47 Private and public sector organisations 118Cultural diversity: the contribution of Trompenaars49 Production and service organisations120Summary: convergence or culture-specificTypes of authority and organisations121 organisational behaviour51 The classification of organisations 122Case study 2.1: Eric and Kipsy: complexities of Prime beneficiary of the organisation 122 management and organisational behaviour 56 Primary activity of the organisation123
  9. 9. viii CONTENTS IN DETAIL The organisation as an open system 124 Principles of management197 Interactions with the environment126 Management as a social process199 The comparative study of organisations 127 The tasks and contribution of a manager 199 Organisational sub-systems 128 Essential nature of managerial work 200 The analysis of work organisations 129 The efforts of other people 202 Contingency models of organisation 131 Management in service industries203 The influence of technology132 Management in private enterprise and public Information technology 133 sector organisations203 Managing technical change134 The work of a manager 206 The informal organisation134 Managerial roles207 The organisation of the future 137 Behaviour pattern of general managers 209 Organisational goals 137 Determining what real managers do 210Patterns of managerial work and behaviour 210 5 Organisational Goals, Strategy and The attributes and qualities of a manager 211Managers of the future? 214 Responsibilities 144Management in Action 6.1: The roles of the The nature of organisational goals 145manager and the Individual Management Model 217 The functions of goals 146Case study 6.1: What is management? Defining Integration of goals 147the managers role227 Classification of organisational goals 148 Alteration of goals149 Organisational ideologies and principles 1507 Managerial Behaviour and Mission statements 151 Effectiveness 236Managerial style and behaviour237 Objectives and policy152Managers attitude towards people 238 The profit objective 154Japanese Theory Z environment 240 Fallacy of the single objective155The Managerial/Leadership Grid 241 The need for strategy157Framework for patterns of behaviour 243 The concept of synergy 158Management systems245 SWOT analysis159System 4 management 246 The management of opportunities and risks160Management by Objectives (MBO)249 Social responsibilities of organisations 161Evaluation of MBO 250 Codes of conduct 162Managing people 251 Organisational stakeholders163Basic managerial philosophies 252 Values and ethics166Choice of managerial style256 Corporate social responsibility167Managerial effectiveness259 Business ethics168Measures of effectiveness 261 Related legislation1703-D model of managerial behaviour 261 An integrated approach 171General criteria of managerial effectiveness264 Management in Action 5.1: IBM Code of Conduct177The management of time265 Case study 5.1: Mergers and acquisitions: theCase example: Chemical company274 consequences of expansion at Square Deal plc 182Case study 7.1: Bringing management to book: Case study 5.2: Welcome to the party: home sellinghow to manage a library 275 with Top-to-Toe183Case study 7.2: As safe as houses: branchmanagement in a building society276 Part 3 8 The Nature of Leadership280 THE ROLE OF THE MANAGERThe meaning of leadership 281The importance of leadership282Leadership and management 283 6 The Nature of Management 189 Approaches to leadership285 The meaning of management190 The qualities or traits approach287 Management and administration194 The functional (or group) approach287 The process of management195 Leadership as a behavioural category289
  10. 10. CONTENTS IN DETAIL ixStyles of leadership291 Career development 372Continuum of leadership behaviour 292 Leadership, management and women 376The situational approach294 Positive approaches378Contingency theories of leadership295Fiedlers contingency model 295 10 The Nature of Learning389Vroom and Yetton contingency model297By Linda HicksThe Vroom and Jago revised decision model 298 The meaning and nature of learning 390Pathgoal theory299 Organisations and the management of learning 394Readiness of the followers or group 300 Knowledge management 395Transformational leadership 301 The learning organisation399Inspirational leadership304 How do people learn? 402Power and leadership influence306 Behaviourism 403The leadership relationship 307 The outcomes of learning 405No one best form of leadership309 Operant conditioning 405National cultural dimensions of leadership310 Social learning408Effectiveness of leadership styles312 Limitations of the behaviourist school 408Variables affecting leadership effectiveness313 Cognitive theories 409Leadership development314 Learning styles413Leaders of the future 315 Complex models of learning 414Management in Action 8.1: Autoglass: Leadership Creativity 415 success factors317 Facilitating learning417Management in Action 8.2: IBM LeadershipLearning theory applied to study skills420 Development Centre (LDC) 318 Applications of learning theory to organisations 420Case study 8.1: The paradox of Pim Fortuyn: a study Case study 10.1: Springboard to success: staff in charismatic leadership327 development in practice425Case study 10.2: Will the mail get through:managing change at the Royal Mail427PART 411 The Process of Perception 434THE INDIVIDUAL By Laurie Mullins and Linda HicksThe perceptual process 435Selectivity in attention and perception4359 Individual Differences335 Meaning to the individual437 By Linda Hicks Internal factors 437The changing nature and scope of managing External factors 440individuals at work 336 Organisation and arrangement of stimuli441Personality 339 Perceptual illusions 442Nomothetic and idiographic approaches 342 Perceiving other people445Theoretical approaches: nomothetic343 Transactional analysis 448Theoretical approaches: idiographic 346 Selection and attention450Other theoretical approaches347 Organisation and judgement 452Cognitive theory: Kellys personal construct theory 350 The importance of body language453Applications within the work organisation 352 Attribution theory 455Stress and the individual 354 Perceptual distortions and errors456Ability 355 Stereotyping 457Testing 360 The halo effect458Attitudes 362 Perceptual defence 459Gender and organisations366 Projection 459Understanding womens position and status 368 Illustrative example: perception of women459Economic theories 369Psychological sex differences 369 12 Work Motivation and Rewards 470The socialisation process 370 The meaning of motivation471Orientations and motivations towards work 370 Needs and expectations at work 472Working practices 371 Motivation and organisational performance474
  11. 11. x CONTENTS IN DETAILFrustration-induced behaviour475 14 Working in Groups and Teams 554Money as a motivator 477 Interactions among members 555Theories of motivation 478 Belbins team-roles556Content theories of motivation 480 Patterns of communication559Maslows hierarchy of needs theory 478 Analysis of individual behaviour 562Alderfers modified need hierarchy model 484 Sociometry 562Herzbergs two-factor theory 485 Interaction analysis 563McClellands achievement motivation theory 487 Frameworks of behavioural analysis 565Process theories of motivation 489 An essential feature of work organisations 566Vrooms expectancy theory490 Individual compared with group or team performance 569The Porter and Lawler expectancy model 492Lawlers revised expectancy model494 The risky-shift phenomenon 569Implications for managers of expectancy theories 495 Groupthink 570Equity theory of motivation496 Brainstorming570Goal theory498 Group dynamics 573Attribution theory 499 T-groups 574Relevance of theories of motivation499 Effective teamworking575Cross-cultural dimensions of motivation500 Management in Action 14.1: Profiling of managers forThe motivation of knowledge workers500 leadership development in a cross-section of SouthManagement in Action 12.1: Developing reward African organisations579strategies to motivate and compensateManagement in Action 14.2: Barriers come downknowledge workers504 to build up team spirit585Case study 12.1: Staff motivation: not so much amotivational pyramid, more a slippery slope510 PART 6PART 5 ORGANISATIONAL STRUCTURESGROUPS AND TEAMWORK 15 Organisation Structure and Design 59513 The Nature of Work Groups The meaning and nature of organisation structure596 and Teams 517 The importance of good structure597The meaning and importance of groups and teams 518 Levels of organisation598The difference between groups and teams518 The importance of the hierarchy 600Group values and norms 520 The design of organisation structure601The importance of teamwork 521 Clarification of objectives 603Formal and informal groups 525 Task and element functions604Reasons for formation of groups or teams 527 The division of work605Group cohesiveness and performance 528 Centralisation and decentralisation 608Membership 529 Principles of organisation609Work environment 530 Span of control 610Organisational factors 531 The chain of command611Group development and maturity 531 Flatter organisation structures 612Potential disadvantages of strong, cohesive groups 532 Formal organisational relationships 613Characteristics of an effective work group 533 Line and staff organisation 615The effects of technology on work groups 534 The inverted organisation 617Role relationships 536Role conflict538 Project teams and matrix organisation 617Role stress540 Effects of a deficient organisation structure 619Management in Action 13.1: Teamwork in a small Organisation charts 621company543 Structure and organisational behaviour622Management in Action 13.2: Remote control aCase study 15.1: A small cog in a big wheel:case study 545company restructuring at Zeton 629Case study 13.1: Floating on air: the importance Case study 15.2: Loud and clear: leadership inof teamwork at Hovertec550telecommunications 630
  12. 12. CONTENTS IN DETAIL xi16 Patterns of Structure and Work Stress at work 706 Organisation633Role relationships and conflict708Variables influencing organisation structure 634Levels of stress 709The contingency approach 634Coping with stress 710Size of organisation 635Work organisation and job design 713Individual job redesign714Technology 638A comprehensive model of job enrichment715The Woodward study 638Broader organisational approaches to improvedMajor dimensions of technology: the work of Perrow 640 job design717Environment641The work/life balance720The Burns and Stalker study642Employee involvement 722Mixed forms of organisation structure643Empowerment and job satisfaction 723The Lawrence and Lorsch study644Self-managed work groups 723Evaluation of the contingency approach 646Flexible working arrangements724Contribution of contingency theory 648Quality circles727Culture as a contingent factor 649Management style and culture 728Alternative forms of structure 649Contextual factors in job design 728The demand for flexibility 651The happy/productive worker729Telecommuting652Management in Action 18.1: Job satisfaction: theThe shamrock organisation652 fit between expectations and experiences732The nature of delegation and empowerment 654Management in Action 18.2: An elusive butCase study 16.1: Bureaucracy could seriously damageexpensive concept: stress 733your health: staff empowerment at City Hospital658Management in Action 18.3: Work-Life BalanceCase study 16.2: Could I have an estimate? case studies735Organisational structure at Fabrique Dcor 658Management in Action 18.4: Beyond the nine-to-five73617 Technology and Organisations Case study 18.1: The wide open spaces: linkingBy David Preece 662job satisfaction and work performance 741Theorising technology 663 Case study 18.2: The changing role of supervisors:Using a socio-technical ensemble perspective:demonstrating the effect of communicationthe case of Butler Co.669and training on morale742Technological change and organisations672 Case study 18.3: Flying like the wind: motivation,Adopting and introducing new technology 674job design and culture at Falcon Car Company743Case studies in technological/organisationalchange67919 Human Resource Management 746The nature of human resource management (HRM)747Case study 17.1: A thirst for technology: new systemsHRM policies, activities and functions 749at the bars of Tawny Taverns679Organisation of the HRM function 751Case study 17.2: Web page not found: internalHRM: a shared responsibility 752communications at Redstart Computers682The importance of HRM755Organisational contexts, social and politicalTraining and development 756processes and technological change685The management of training 758ICTs, networks, organisations and society 686Investors in People761Performance appraisal762Questions to be addressed764PART 7360 feedback and upward appraisal 765MANAGEMENT OF HUMAN RESOURCES Establishing the appraisal system766Methods of appraisal 767Potential problem areas76918 Job Satisfaction and WorkEmployment relations 771 Performance 699Unitary and pluralistic perspectives 773The meaning and nature of job satisfaction 700Regulating the employment contract 774Dimensions of job satisfaction 700Responsibility for employment relations777Framework of study 703International dimensions of HRM778Information communications technology703Industrial democracy in European countries 779
  13. 13. xii CONTENTS IN DETAILThe German system779 Characteristics of an effective control system 842Effectiveness of the HRM function780 Power and management control 843Management in Action 19.1: The Investors in People Perspectives of organisational power 845Standard 783 Pluralistic approaches to power846Management in Action 19.2: Performance The balance between order and flexibility848management at Autoglass Limited786 Delegation and empowerment 849Case study 19.1: Beer and sandwiches: personnelThe managersubordinate relationship 850management at London Taverns 790 Benefits of delegation 852Case study 19.2: Nothing succeeds like success:Reasons for lack of delegation 853 accelerating performance at Sisson Systems791 A systematic approach to delegation854 The art of delegation85720 Resourcing the Organisation 795 The concept of empowerment 859The concern of all managers796 Does empowerment deliver?863Human resource planning796 Behavioural factors in control systems 864The value of human resource planning 798 Overcoming resistance to management control865Recruitment and selection of staff 800 Financial and accounting systems of control867Job analysis 802 Management in Action 21.1: Empowerment 873Person specifications804 Case study 21.1: The enthusiastic delegator:Difficulties and distastes of the job804 the consequences of promoting beyond ability?880The importance of job analysis 806 Case study 21.2: Alpha to Omega: the effectsAttracting suitable applicants 806 of financial management on companyThe selection process808 performance883Selection tests and questionnaires 810Group exercises810 22 Organisation DevelopmentThe selection interview812(Culture, Conflict and Change)887Interviewing style 813 The meaning of organisation development888Competency-based approach to recruitment and Topics associated with OD888selection814 Organisational culture 891The selection decision 815 Types of organisational culture892Induction and follow-up816 Influences on the development of culture 894Costs of the selection process 817 The cultural web 895Effectiveness of the recruitment and selection The importance of culture896process817 Organisational climate 899Management in Action 20.1: Marks & Spencer Employee commitment901PLCs graduate selection process 821 Organisational conflict903Case study 20.1: Please enter your password: Contrasting views of conflict904effective resource management at WessexThe sources of conflict906Computers825 Strategies for managing conflict 908Case study 20.2: Inky fingers: HRM failure atThe nature of organisational change909Sumprint Ltd 826 Planned organisational change910 Resistance to change 913 The management of organisational change915 Human and social factors of change 916PART 8 Responsibilities of top management 920IMPROVING ORGANISATIONAL Management in Action 22.1: Organisational culture,PERFORMANCEchange and IT in an SME923 Management in Action 22.2: Siemens Nixdorfs21 Organisational Control and Power831 new dynamism 924The meaning of control 832 Case study 22.1: Its tough at the top: managingAssumptions of organisation and management 834 conflict in the Wakewood organisation933Elements of an organisational control system 835 Case study 22.2: Getting political: managementForms of control 837 in local government934Classification of control systems838 Case study 22.3: A matter of life or death: managingStrategies of control in organisations 840 knowledge at an NHS Trust935
  14. 14. CONTENTS IN DETAILxiii23 Management Development andBenchmarking 976 Organisational Effectiveness 941Performance indicators in the public sector977The importance of effective management942Gap analysis 977The meaning and nature of management A range of different criteria977development 942The twenty-first century organisation and people 980An integrated model of management development 944Management in Action 23.1: Extracts from AbbeyManagement development process949Performance Development Programme 982Continuing professional development (CPD) 953Management in Action 23.2: A cure for growingManagement education, training and development954pains Costa Coffee985The Management Charter Initiative (MCI) 955Management in Action23.3: Components of theLeadership and Management Model 956Management Standards987The nature of organisational effectiveness959Management in Action 23.4: Building organisationalThe Peters and Waterman study 960competence988Hellers study of European excellence 961Case study 23.1: Chips with everything: managingThe Goldsmith and Clutterbuck study 962cultural change at Eurasia Electronics997The learning organisation 962Case study 23.2: Holding the front page: expansionTotal Quality Management (TQM)964at Rudmore Press997Business process re-engineering (BPR) 968Building Tomorrows Company 971Conclusion 1003The EFQM excellence model 971Business Press 1005Assessing organisational performance975Glossary 1051Organisation audit976Index1065 Companion Website resources Visit the Companion Website at www.booksites.net/mullins For students: Multiple choice and short answer questions to help test your learning Technology Solutions short web articles which explore further the managerialimplications of technology Weblinks to relevant sites on the web An online glossary to explain key terms For lecturers: Complete, downloadable Instructors Manual which includes: Teaching tips Extra cases Solutions/examples to discussion and other questions Powerpoint slides that can be downloaded and used as OHTs Testbank of question material Also: This site has a syllabus manager, search functions, and email results functions. Note: A printed version of the Instructors Manual is also available free to adopters of Management and Organisational Behaviour. Please contact your local sales representative whose details can be located on our website www.pearsoned.co.uk
  15. 15. EXHIBITS, MANAGEMENT IN ACTION, CASE STUDIES AND BUSINESS PRESSExhibits3.1NHS pays 30.96 just to sharpen pencils 763.2Tools that do the business: management theories 915.1Business ethics: whats in it for you? 1716.1The infant school headteacher as a manager 1917.1Its a people thing2588.1Developing leadership in the NHS of the 21st century 3058.2First class coach3129.1Why use psychological tests? 36210.1 Learning new skills: the importance of feedback41011.1 Hospitals set to play it by ethnic book45411.2 Judy Owen wins battle against Professional Golfers Association to 460 wear trousers13.1 Teamworks own goal52414.1 Management: brainstorm in a rainstorm57318.1 If you want people to do a good job, give them a good job to do71918.2 Have a life and keep your job72521.1 Empowerment and the custody officer86123.1 Developing managers: applying the theory in practice 95023.2 Management succession: developing leadership at 3M 95223.3 Quality counts: TQM in an NHS trust968Management in Action3.1Japanese management 955.1IBM Code of Conduct1776.1The roles of the manager and the Individual Management Model 2178.1Autoglass: Leadership success factors3178.2IBM Leadership Development Centre (LDC)31812.1 Developing reward strategies to motivate and compensate knowledge workers50413.1 Teamwork in a small company54313.2 Remote control a case study54514.1 Profiling of managers for leadership development in a cross-section of 579 South African organisations14.2 Barriers come down to build up team spirit 58518.1 Job satisfaction: the fit between expectations and experiences 73218.2 An elusive but expensive concept: stress 73318.3 Work-Life Balance case studies 73518.4 Beyond the nine-to-five73619.1 The Investors in People Standard 78319.2 Performance management at Autoglass Limited78620.1 Marks & Spencer PLCs graduate selection process 82121.1 Empowerment87322.1 Organisational culture, change and IT in an SME92322.2 Siemens Nixdorfs new dynamism 924
  16. 16. LIST OF FIGURES xv23.1 Extracts from Abbey Performance Development Programme98223.2 A cure for growing pains Costa Coffee98523.3 Components of the Management Standards 98723.4 Building organisational competence 988Case studies2.1Eric and Kipsy: complexities of management and organisational behaviour 563.1Helgaton Ltd: organisational theory in practice1025.1Mergers and acquisitions: the consequences of expansion at Square Deal plc 1825.2Welcome to the party: home selling with Top-to-Toe 1836.1What is management? Defining the managers role227 Chemical company 2747.1Bringing management to book: how to manage a library 2757.2As safe as houses: branch management in a building society 2768.1The paradox of Pim Fortuyn: a study in charismatic leadership32710.1 Springboard to success: staff development in practice42510.2 Will the mail get through: managing change at the Royal Mail 42712.1 Staff motivation: not so much a pyramid, more a slippery slope 51013.1 Floating on air: the importance of teamwork at Hovertec55015.1 A small cog in a big wheel: company restructuring at Zeton 62915.2 Loud and clear: leadership in telecommuncations63016.1 Bureaucracy could seriously damage your health: staff empowerment at City Hospital 65816.2 Could I have an estimate? Organisational structure at Fabrique Dcor 65817.1 A thirst for technology: new systems at the bars of Tawny Taverns67917.2 Web page not found: internal communications at Redstart Computers68218.1 The wide open spaces: linking job satisfaction and work performance74118.2 The changing role of supervisors: demonstrating the effect of communication and training on morale 74218.3 Flying like the wind: motivation, job design and culture at Falcon Car Company 74319.1 Beer and sandwiches: personnel management at London Taverns79019.2 Nothing succeeds like success: accelerating performance at Sisson Systems79120.1 Please enter your password: effective resource management at Wessex Computers82520.2 Inky fingers: HRM failure at Sumprint Ltd82621.1 The enthusiastic delegator: the consequences of promoting beyond ability?88021.2 Alpha to Omega: the effects of financial management on company performance 88322.1 Its tough at the top: managing conflict in the Wakewood organisation93322.2 Getting political: management in local government93422.3 A matter of life or death: managing knowledge at an NHS trust93523.1 Chips with everything: managing cultural change at Eurasia Electronics 99723.2 Holding the front page: expansion at Rudmore Press 997Business Press1 A safe way to hold on to staff10062 Business schools share Enron blame10073 Recruitment: facing the next brain drain10084 Companies pressed to adopt higher standards 10105 Forget how the crow flies 10126 Public sector: go home and prepare for e-government 10177 Employees as investors10198 Leader of the band who likes to run the show10209 Great leaders: pioneer and a shrewd strategist1022
  17. 17. xvi LIST OF FIGURES10 Endangered species102311 Mentoring moves into a leading role 102512 Driving your employees up the wall102713 A focus on workers individual needs102814 Advantages of promoting a boutique mindset102915 Avoiding the madness of groupthink103016 End to departmentalism a vision of things to come 103117 A long-distance relationship103218 Network protection is a key stroke103419 Relentless rise of the pleasure seekers 103520 EU & US: Where are the best workplaces? 103721 Marrying performance with reward103822 Human capital: is it personnel with yet more make-up? 104023 New learning models are under scrutiny104124 Patterns can show if you are up to the job104325 Massive US effort to set up control systems 104426 Asda: the listening store 104527 Organisations, too, can be put on the couch 104728 Swiss group at top of learning tree 104829 The rise and rise of the corporate learning officer 1049
  18. 18. IN ACKNOWLEDGEMENT AND APPRECIATIONA warm and special tribute is paid to my wife Pamela, children and family for theircontinuing support and encouragement for this seventh edition. Particular acknowledgements and thanks are due for the contributions from myfriends and colleagues Linda Hicks, David Preece and Sara Lamond. Thanks and appreciation also to Derek Adam-Smith, Rajeev Bali, Martin Brunner,Richard Christy, Ray French, Karen Meudell, Anne Riches, Amanda Stevens, LynnThomson, Cheryl Walmsley. I gratefully acknowledge the help and support received from:Managers who kindly provided information from their own organisations and gave permission to reproduce material in the bookAileen Cowan, Assistant Director, The Institute of Chartered Secretaries and AdministratorsLiz Harris, Marketing Communications Manager, The Institute of Administrative ManagementRebecca Hoar, Section Editor, Management TodaySue Mann, Editor, Professional Manager. A special debt of appreciation is due to members of the team at Pearson Educationincluding Matthew Walker, Colin McDougall, Karen McLaren, Janey Webb, Colin Reed,Jacqueline Senior and Simon Lake for their invaluable professionalism and guidance.Thank you all for a pleasant and rewarding partnership. I wish to acknowledge and thank a number of people who may be unaware howmuch their friendship, interest and support has in a variety of ways helped in the com-pletion of this seventh edition, including: Stephen Darvill; Philip Voller; KateBrackenbury; Valerie and Peter Hallam; Di and Mike Blyth; Julie and John Bradley;Jenny and Tony Hart; Vilma and Will Hemsley; Lynn and Wayne Miller; Christine andDavid Paterson; Ann Ward.ReviewersSpecial thanks are due to the following reviewers, approached by the publishers, fortheir valued insightful and constructive comments that have helped shape the con-tents of this present edition:Ann Norton, Sheffield Hallam University, UKBrian Stone, Manchester Metropolitan University, UKKim Parker, University of Kent, UKBob Smale, Brighton University, UKAlasdair Maclean, University of Abertay, UKPeter Falconer, Glasgow Caledonian University, UKHugo Misselhorn, Management & Organisation Development Consulting, South AfricaMarijek Dielman, Hotel Management School, Maastricht, The NetherlandsDavid Wilson, Wethouder Koniglaan, The Netherlands.Laurie J Mullins
  19. 19. PUBLISHERS ACKNOWLEDGEMENTSChapter 1 Introductory assignment is reprinted with per- Chapter 7 Assignment 1 Principle of Supportivemission from Von Oech, R., A Whack On The Side Of TheRelationships Questionnaire is reprinted with permissionHead, Warner Books Inc. (1998), p. 20. Copyright 1983, from Likert, R., The Human Organization Its Management1990, 1998 by Roger Von Oech.and Value, McGraw-Hill, New York (1976), pp. 489.Chapter 2 Assignment 1 is reprinted with permissionPersonal awareness and skills exercise Your Managementfrom Rowe, C., The Management Matrix: The Psychology ofStyle is reprinted with permission from Osland, J. S., Kolb,Interaction, Alfred Waller Ltd (1992), p. 1, with permission D. A. and Rubin, I. M., Organizational Behavior: Anfrom Patricia Rowe.Experimental Approach, seventh edition, Prentice Hall (2001), pp. 245.Personal awareness and skills exercise So Whats YourWork Ethic? is reprinted with permission from ProfessionalCase study 7.1 Library Management is reprinted with per-Manager, published by the Chartered Management mission from the Institute of Chartered Secretaries andInstitute, May 2003, p. 38, and Walmsley, C. J., Your Future Administrators, Management Principles Pilot Paper,Looks Bright, Preston Beach (2002), p. 98. Administrator, December 1993. (Administrator is now pub- lished under the title Chartered Secretary.)Case study 2.1 Eric and Kipsy is reprinted with permissionfrom Porter, L. W., Lawler, E. E. and Hackman, J. R., Behavior Chapter 8 Assignment 1 Least Preferred Co-worker (LPC)in Organizations, McGraw-Hill, New York (1975), pp. 314.Scale is reprinted from A Theory of Leadership Effectiveness, McGraw-Hill (1976), p. 41, with the permission of theChapter 3 Assignment 1 is reprinted with permission author, Professor F. E. Fiedler, University of Washington.from DuBrin, A. J., Human Relations: A Job-OrientedApproach, Reston Publishing/Prentice Hall/PearsonAssignment 2 T-P Leadership Questionnaire: AnEducation Inc. (1978), pp. 2967.Assessment of Style by Sergiovanni, T., Metzcus R. and Burden, L. adapted from their article Leadership BehaviorCase study 3.1 Applications of Organisation Theory in Description Questionnaire, in the American EducationalHelgaton Ltd, is reprinted with permission from Mullins, Research Journal 6, 1969, is reprinted by permission of theL. and White, I., in Adam-Smith, D. and Peacock, A. (eds), publisher, the American Educational Research Association.Cases in Organisational Behaviour, Pearson Education(1994), pp. 1929. Assignment 4 Your Leadership Style is reprinted with per- mission from Schermerhorn Jr, J. R., Hunt, J. G. and Osborn,Chapter 4 Assignment Our Organizational Society: Your R. N., Managing Organizational Behavior, fourth edition, usedAssociation with Organizations is reprinted with permis- by permission of John Wiley & Sons Inc. (1991), p. 484.sion from Kast, F. E. and Rosenzweig, J. E., ExperientialExercises and Cases in Management, McGraw-Hill, New York Case study 8.1 The Paradox of Pim Fortuyn: A Study in(1976), pp. 1315. Charismatic Leadership. I am grateful to my colleague Karen Meudell for providing this case study.Chapter 5 Personal awareness and skills exerciseAssessing your Work Values is reprinted with permissionChapter 10 Case study 10.2 Royal Mail: Making your lifefrom Misselhorn, A., The Head and Heart of Management, easier by helping you do a better job. Thanks to YasminManagement and Organization Development ConsultantsAhmed and Royal Mail Group plc.(SA) (2003), p. 36. Chapter 11 Personal awareness and skills exerciseCase study 5.1 Square Deal plc is reprinted with permis- Inferenceobservation exercise is reprinted with permis-sion from the Institute of Administrative Management,sion from Haney, W. V., Communications and InterpersonalDiploma in Administrative Management Examination Relations: Text and Cases, sixth edition, Irwin, IllinoisPaper, Summer 1983.(1992), p. 213.Case study 5.2 Top to Toe is reprinted with permission Chapter 12 Personal awareness and skills exercise con-from the Chartered Institute of Secretaries andtributed by Sheila Ritchie of Elm Training and derivedAdministrators, Management Principles Examinationfrom the full 12-factor Motivation to Work Profile. It isPaper, June 2003.reprinted with permission.Chapter 6 Assignment 2 Have YOU Got What it Takes toCase study 12.1 Not so Much a Motivational Pyramid,be a CEO? is reprinted with permission from Gwyther, M.,More a Slippery Slope. I am grateful to Linda Fleming forManagement Today, November 2001, pp. 569. providing this case.Case study 6.1 What Is Management? from Doswell, R.Chapter 13 The copyright of case study 13.1 Hovertecand Nailon, P., Case Studies in Hotel Management, thirdplc rests with my colleague Tom McEwan, and is reprintededition, Barrie & Jenkins (1976).with permission.
  20. 20. Chapter 14 Personal awareness and skills exercise isChapter 21 The Organisational Politics Questionnaire isreprinted with permission from Woodcock, M., 50 reprinted with permission from DuBrin, A. J., HumanActivities for Teambuilding, Gower, Aldershot (1988), withRelations: A Job-Oriented Approach, fifth edition, Prenticepermission from Ashgate Publishing Limited. Hall/Pearson Education Inc. (1992), pp. 3067.Chapter 15 Assignment 2 is reprinted with permissionCase study 21.2 The Omega organisation is reprinted withfrom the Institute of Chartered Secretaries and permission of the Institute of Chartered Secretaries andAdministrators, Management Principles Examination Paper,Administrators, Management: Principles and PolicyJune 1999.Examination Paper, June 1987.Case study 15.1 Zeton Ltd is reprinted with permissionChapter 22 Assignment Rate Your Readiness to Changefrom Administrator, The Institute of Chartered Secretariesis reprinted with permission from Stewart, T. A., Fortune, 7and Administrators, April 1996, p. 36. (Administrator isFebruary 1994, pp. 634, Time Inc. All rights reserved.now published under the title Chartered Secretary.)Case study 15.2 Direct Telecommunications PLC (DT) is Case study 22.1 The Wakewood organisation is reprintedreprinted with permission from the Institute of Chartered with permission from the Institute of Chartered SecretariesSecretaries and Administrators, Organisation and theand Administrators, Management: Principles and PolicyHuman Resource Examination Paper, May 2002. Examination Paper, December 1986.Chapter 16 Case study 16.1 The City Hospital:Case study 22.2 Gremby County Council is reprinted withBureaucracy and Empowerment is reprinted with permis-permission from Bowman, C. and Jarrett, M. G., Managementsion from the Institute of Chartered Secretaries andin Practice, third edition, Butterworth-Heinemann (1996),Administrators, Organisation and the Human Resource pp. 20911, with permission from Elsevier Ltd.Examination Paper, November 2002.Case study 22.3 Managing Knowledge at an NHS Trust. ICase study 16.2 Fabrique Dcor is reprinted with permis-am grateful to Rajeev K. Bali and Ashish N. Dwivedi forsion from the Institute of Administrative Management, providing this case.Advanced Diploma Examination Paper, December 2000.Chapter 23 Assignment 2 Assessing your Organisation isChapter 18 Case study 18.1 The Wide Open Spaces fromreprinted with permission from BBC, Building TomorrowsChilver, J., People, Communication and Organisation,Company Supporting Notes and the Centre for TomorrowsPergamon Press (1984), pp. 11819.Company and William Tate, 1999.Case study 18.2 Managing Supervisors is reprinted withpermission from the Institute of Chartered Secretaries andPersonal awareness and skills exercise is adapted fromAdministrators, Management: Principles and Policy material prepared by John Bourn for a UNISON distanceExamination Paper, June 1985. learning course and is used with permission of theEducation Officer.Case study 18.3 The Falcon Car Company is reprintedwith permission from the Institute of Chartered Secretaries Case study 23.1 Eurasia Electronics is reprinted with per-and Administrators, Organisation and the Humanmission from the Institute of Chartered Secretaries andResource Examination Paper, June 2003.Administrators, Professional Administration ExaminationChapter 19 Case study 19.1 London Taverns Ltd has Paper, December 1999.been prepared jointly with, and from original material sup- Case study 23.2 Rudmore Press Limited. This case wasplied by, my colleague Karen Meudell. prepared jointly with, and from original material providedCase study 19.2 Accelerating the performance momentumby, my colleague Karen Meudell.at Sisson Systems is reprinted with permission from theInstitute of Chartered Secretaries and Administrators,DOGBERT character drawings copyright 1991 UnitedOrganisation and the Human Resource Examination Paper,Feature Syndicate, Inc.June 1999.Please note: we are all influenced by the thoughts andChapter 20 Case study 20.1 Wessex Computers isideas of other people that tend to drift into the sub-reprinted with permission from the Institute of conscious and are not always distinguished clearly fromAdministrative Management, Certificate in Administrativeones own. I have attempted to give references for sourcesManagement Examination Paper, Summer 1983.of work by other writers but apologise to any concerned ifCase study 20.2 Sumprint Ltd is reprinted with permis-acknowledgement has inadvertently not been recorded.sion from the Institute of Administrative Management, Should there by any queries, errors or omissions pleaseCase Study Examination Paper, June 2002.contact the publisher.
  21. 21. xx PART 1 PART TITLE