Acca F1 Chapter 4

Chapter 4 leaders, counselling and supervision Chapter reading objectives Upon completion of this chapter you lead be able to * define the term leaders * define the term commission * define the term supervision * condone the difference betwixt a leader and a managing orientor agnise between the role of the four-in-hand and the role of a executive program * justify the classical barbel to oversight using theories ofFayol and Taylor * rationalize the primary(prenominal) duties of a conductor according toFayol * appearline the relevance of classical approach to redbrick data expends * explain the nature of the human dealings train awhitethorno * happen upon the modern school of caution with reference to the theories ofMintzbergandDrucker * describe the three animal trainerial roles as per manoeuvre ofH Mintzberg * explain what is meant by office * explain what is meant by the term certificate of indebtedness find the main sources of chest * explain the ki nship between leave and responsibleness * explain the accompanimental approach to leaders usingAdairs sup range * explain the misfortune approach usingFiedlersleaders scheme * explain the differences between transactional and transformational leadership referring to theBennispossibility * describe the phases of the alter process referring toKotterpossibility * explain theHeifetzleadership theory * explain the vanadium scores on theBlakeandM byonmanagerial authority gridiron * outline the usefulness of the Blake and mutton grid describe the four leadership appearances as perAshridge.1 Introduction 1. 1 Leadership A basal definition of a leader is manyone whoexercisesinfluence e genuinelyplaceother hoi polloi. This raise be expanded into a more than complex definitionLeadership is an inter psycheal influence directed toward the get throughment of a goal or goals. * Inter personal a between pile. * Influence a the fountain to affect others. * Goal a something that we unavoidableness/want to achieve. Leadership is a conscious activity and is concerned with constitutetinggoals and inspiring peck to pass on committal to achieve the plaques goals. . 2 Managers Allmanagers pull in in common the boilers accommodateaim of getting things done,delegating to other volume instead than doing everything themselves. Management can be defined as the effective use and co-ordinationof resources such as capital, plant, materials and labour to achievedefined objectives with maximum efficiency. A leader can be a manager, but a manager is non necessarily aleader. If a manager is able to influence people to achieve the goals ofthe organisation, without using formal authority to do so, then themanager is demonstrating leadership. good example 1 a Differences between managers and leaders The manager administers the leader innovates. The manager relies on lock the leader incites trust. The manager has his midriff on the rotter line the leader has his eye on the horizon. 1. 3 Supervision The supervisory program is part of the perplexity aggroup. * The supervisor is a person given authority for planning and holdling the trim of their assemblage, but each they can delegate to the group is the work itself. * A supervisor, therefore, is a display case of manager whose main role is to ensure that specified as scars ar work outed properly and efficiently by a defined group of people. In general, supervisors ordain also be doing operations work and giving advice to others to military service acquit problems. If the more senior manager is absent, the supervisor leave alone burgeon forth over the role. Illustration 2 a The role of a supervisor Supervisors sort out their cartridge holder between supervisory duties and adetai guide task. For example a supervisor inpurchasing may also regularlycomplete some clerical work want raising purchase orders. Managers mustiness ensure that supervisors understand organisationalobjec tives and communicate the power and limits of the supervisorsauthority.Supervision is an Copernican part of the task and process ofmanagement. The role of the supervisor collects direct contact with and responsibleness for the work of others. * The supervisor is the interface between the management and the workforce. * Front line a resolving problems first hand where the work is done, and often having to resolve problems quickly. * They often need to own direct experience ofemploymentlegislation. * Often have responsibility for negotiation and industrial relations inside the division. * Management tasks and operational work to perform. Day-to-day detailed familiar information (manager a medium-term internal and external information). mental testing your sagaciousness 1 Briefly explain in general damage the responsibilities of a supervisor.2 Theories of management 2. 1 The classical school BothTaylor and Fayolshared the intuitive feeling that individualsmust auxiliary them selves to the needs of the organisation. In returnthe organisation was obliged to endure gambol warranter and goodremuneration. * Taylor and Fayolbelieved in one outgo way, the optimum way to * organise the incorruptible * do the individual job emphasis on the task to be done rather that the person doing it. * some of the main features of their approach were as follows * belief in one controlling central authority * specialness of tasks * fair pay and good operative conditions, decided by management * clear lines of command. Illustration 3 a Theories and management Scientific thought on pauperization in the workplace taked a belief that reward for effort was a key consideration. running play your savvy 2 Which of the pursuit statements best describes the classical approach to management? ANo one best approach.BCommunication should be encouraged. COne best approach. DAn employee is considered an infix to the organisational system. Fayolargued that management may be spli t into five broadsareas forecasting and planning, organisation, command, co-ordinationand control. Expandable text Fayols rules of managerial conduct Fayol utilize 14 rules of managerial conduct. These are * Division of worka to improve practice and familiarity and puzzle specialised. * powera the right to give orders, linked with responsibility. * compensatea respect in accordance with the agreement between the stanch and its employees. Unity of commanda each subordinate answerable to simply one superior. * Unity of directiona only a hit head and plan for a set of activities. * Subordination to the general amusea the general good prevails over individual or sectional interests.* Remunerationa should be fair to both the recipient and the firm. * centralisationa inevitable in organisations, but the degree should be attach. * scalar reacha graduated lines of authority should exist from the top to the bottom of the organisation. * Ordera workers and materials should be in t heir prescribed place. * Equitya combining clemency with justice. Tenure of personnela adequate clock for settling into jobs should be allowed. * Initiativea should be encouraged inwardly the boundaries of authority and discipline. * Esprit de corpsa harmony and police squadwork should be encouraged in the organisation. Fayolbelieved that a manager obtained the best carrying outfrom his workforce by leadership qualities, by his knowledge of thebusiness and his workers, and by his ability to instil a sense ofmission. try on your collar 3 Which of the following are elements of management as identify byFayol. AControl. BMotivation. CCommunication. DCompromise.The implications ofTaylorsscientific management are as follows * Workers should be set high targets, but should be well rewarded for achieving them. * Working methods should be analysed scientifically, including the time of work. * Management should plan and control all the workers efforts, leaving little discernment for i ndividual control over working methods. While there may be areas where these principles are mute relevant, more or less modern theorists would argue that a more progressive approach isneeded where * It is recognised that there is not always a best way of doing a particular job. Employees can often have tidy insight into a job and can polish off important suggestions for improvements. * legion(predicate) workers can be motivated by other methods than tight control and financial reward. These switch offs are discussed in more details later in this chapter. Illustration 4 a Theories of management The classical approach is still beness utilised today since this isthe principle applied in most call centres targets are set for thenumber of calls to be taken in a predetermined time period and reward isestablish on the achievement of the target. attempt your concord 4Which one of the following statements is closest to the beliefs of the classical school? AEmphasis on social groups. BEmphasis on the task to be done rather than the person doing it. CEmphasis on the person rather than the task. DEmphasis on encouraging people to remove their full potential. 2. 2 The human relations school Research carried out byMayoat the General ElectricCompany in Chicago cogitate that group relationships andmanagement-worker communion were far more important in determineemployee demeanour than were physical conditions (e. . lighting andnoise) and the working practices imposed by management. Also, wagelevels were not the dominant allele motivating factor for most workers. save seek established the following pro dresss of the human relations school.* Employee behaviour depends primarily on the social and organisational bunch of work. * Leadership style, group cohesion and job satisfaction are major determinants of the outputs of the working group. * Employees work better if they are given a great range of tasks to complete. Standards set internally by a working group in fluence 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 commitment, motivation and desire toparticipate in decision making of many employees. taste your understanding 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 writers Contributions made by modern writers on management include * Contingency approach (no one best approach)a contingency theorists do not ignore the lessons learnt from earlier theorists, but adapt them to suit particular circumstances. * Behaviouralisma c oncerned 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. Expandable text systems theory Systems theory takes the view that an organisation is a socialsystem, consisting of individuals who co-operate unneurotic within aformal framework, drawing resources from their purlieu and puttingback into that environs the products they produce or the servicesthey shot * in doing so the input is converted into the final product or service, hopefully with value being contributeed * 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 industriousness to which it belongs. Examples of the other systems include an information system, performance system and a communication system. Dr ucker set five basic operations in the work of a manager. Managers Expandable text * Set 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 profit 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 manageable activities and supercharge divide the activities 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 trus bothrthy for various jobs. * Establish yardsticksa by making measurements available, which are focused on the performance of the whole 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. * De velop people, including themselves. Mintzbergidentified ten skills which managers need if theyare to develop greater effectiveness, and grouped them together underthree categories, interpersonal, informational and decisional. strain your understanding 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 authority and responsibilityAuthority refers to the 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 accept it to be done. * Authority is thus another(prenominal) word for legitimate power. Illustration 5 a Managerial authority 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. )* Functional authoritya is a loanblend of line and rung authority, whereby a manager setting policies and procedures for the company as a whole has the authority in certain 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. testing your understanding 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 obligation is the liability of a person to be called to account fo r his or her actions. * responsibility expresses the obligation a person has to fulfil a task, which he or she has been given. A person is said to be responsible for a percentage of work when he or she is need to ensure that the work is done. * tariff is the obligation to use delegated powers. The important point is that managers and supervisors are ultimately responsible for the actions of their subordinates the term accountable is often used. * It is accountability for the performance of specified duties or the cheering 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. raise your understanding 8 Which of the following statements could be a definition of responsibility?ALiability to be called to account. BAccountability for actions. CAn obligation owed. fast one Fr ench and Bertram Ravenidentified five sources or bases of power. * Rewardpower a is found 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 meeting requirements, is the negative side of reward power. * Expertpower a is based on the perception or belief that a person has some relevant expertise or special knowledge that others do not. denotativepower a is based on one persons desire to identify with or imitate another. * Legitimatepower a the power derived from being in a positioning of authority within the organisational structure a according to the position they hold 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 D Expert Solution D Test your understanding 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 keeping but does not have the authority to discipline subordinate for poor time-keeping. The supervisor is helpless to achieve the levels upon which his or her performance is being judged.This supervisor is credibly to become frustrated, stressed and demotivated. Performance is likely to suffer. Conflict will occur if the supervisor fails the task due to lack 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 unacceptable risks, because the consequences of decisions will not rebound on them. The control mechanisms of the organisation depend on accountability. Test your understanding 10 John has just joined a small accounts department. The financialcontroller is taken ill. John has been told that he needs to prepare themanagement accounts and requires information regarding salaries. Thepayroll department are not contented 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 maintaining a position as an effective leader. * Adairs action-centred leadership model looks at leadership in relation to the needs of the task, individual and group. Test your understanding 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 contingency approach (Fiedler) Contingency theory acquires effective leadership as being dependenton a number of heightenable or item factors.There is no one right wayto lead that will fit all situations rather it is necessary to lead ina manner that is appropriate to a particular situation. Fiedlers contingency theory * Fiedlerstudied the relationship between style of leadership and effectiveness of the work group. Two styles of leader were identified. psychologically distant managers (PDMs). * Maintain distance from their subordinates by formalising roles and relationships within the team. * Are withdraw and reserved in their interpersonal relationships. * Prefer formal communication and denotation methods rather than seek informal opinion. Judge 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 merged (or psychologically distant) style works best when the situation is either very favourable or very unfavourable to the leader. On the other hand, a supportive (or psychologically close) style works best when the situation is fairly favourable to the leader. * He further suggested that group performance would be contingent upon the appropriate matching 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 wh ich 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 wish 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 set used to distinguish between managers and leaders have also been identified as * Transactional leaders a see the relationship with their following in terms of a trade they g ive followers the rewards they want in exchange 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 change team/organisational cultures and create a new-fangled direction. Expandable text Bennisis an authoritative American author on leadership andchange.He focuses on the need to inspire change rather than imposingit. He identifies five avenues of change * Dissent and conflict a top management impose change by means of their position of power, the result being rancour amongst those affected. * Trust and truth a management must gain trust, express their vision clearly, and persuade others to follow. * Cliques and cabals a cliques have power, money and resources cabals have ambition, drive 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 political sympathies regulation or through overseas competition. * Culture or figure huckster 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 resistance 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 reality 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 chan ge. Heifetz believes that leaders provide direction but do nothave to offer definite answers and should mobilise people to tackle thetough challenges for themselves. Leaders have two choices when resolving a situation Technical change a the application of current knowledge, skills and or tools to resolve a situation. * Adaptive change a is required when the problem cannot be solved with existing skills and knowledge and requires people 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 bringing about accommodative change * Recognition 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 possible. Adaptive change causes unhappiness in the people being led adaptive change requires the right level of stress to be applied too little stress and pe ople do not care for the need for change too much stress and there will be no buy-in. * Keep focused on the real issue of realising the change do not spend too much time on stress-reducing distractions. * Ensure 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 answers. Leadership styles 5. 1 Blake and Mouton Robert Blake and Jane Moutoncarried out research intomanagerial behaviour and observed two basic dimensions of leadershipconcern for production (or task performance) and concern for people. Based 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 either area and will make the smallest possible effortrequired to get the job done. 1. Country Club managementa this manager is thoughtfuland attentive t o 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 duty tour is minimised. 5. 5 Middle of the road managementa this manager is able to residue the task in hand and motivate the people to achieve these tasks. 9. 9 team managementa this manager integrates the two areas to foster working together and high production to produce true 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 above 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 (autocrat ic)a the manager makes all the decisions and issues instructions which must be obeyed without question. Strengths * supple 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 upward communication or team member input. * Does not encourage opening move or commitment from subordinates, simply compliance. Sells (persuasive)a the manager still makes all thedecisions, but believes that team members must be motivated to acceptthem 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 manage r 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 communication.Weaknesses * May take drawn-out to reach decisions (especially if consensus is sought). * Team member input may not arouse the quality of the decision. * Consultation 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 customer 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, choose an Ashridge leadership style that best describes the statement. Chapter summary Test your understanding answers Test your understanding 1 * Planning the work of the department. * Ensuring by adequate supervision that the work is immaculate as far as possible according to plan. * Maintaining discipline in the department. * Undertaking the task when required. Having knowledge and ability in all aspects of health, arctic 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 (although this can be strengthened further) but is weakin terms of concern for employees. Further investigation 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