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Coleman Patterson Management Briefs Management and Leadership Theory Made Simple Download free ebooks at bookboon.com 2 Management Briefs – Management and Leadership Theory Made Simple © 2010 Coleman Patterson & Ventus Publishing ApS ISBN 978-87-7681-547-9 Download free ebooks at bookboon.com 3 Management Briefs – Management and Leadership Theory Made Simple Contents Contents Preface 7 1. 1.1 1.2 1.3 1.4.1 1.4.2 Perspectives on Organizations Division of Labor Hawthorne Studies Emphasis on People Systems: Types Systems: Balance and Coordination 8 8 9 9 10 12 2. 2.1 2.2.1 2.2.2 2.2.3 2.3.1 2.3.2 2.3.3 2.3.4 2.3.5 2.3.6 2.3.7 2.3.8 Leadership Why Leadership? Defining Leadership: Leadership and Management Defining Leadership: Formal and Informal Leaders Defining Leadership: Authority and Leadership Leadership Theory: Situational Leadership Theory Leadership Theory: Idiosyncrasy Credits Leadership Theory: Bases of Social Power Leadership Theory: Machiavellianism Leadership Theory: Response to Authority Leadership Theory: Citizen Leadership Leadership Theory: Servant Leadership Leadership Theory: Leader-Member Exchange 13 13 14 15 16 17 18 20 21 22 23 24 26 Please click the advert The next step for top-performing graduates Masters in Management Designed for high-achieving graduates across all disciplines, London Business School’s Masters in Management provides specific and tangible foundations for a successful career in business. This 12-month, full-time programme is a business qualification with impact. 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For more information visit www.london.edu/mm, email mim@london.edu or give us a call on +44 (0)20 7000 7573. * Figures taken from London Business School’s Masters in Management 2010 employment report Download free ebooks at bookboon.com 4 Management Briefs – Management and Leadership Theory Made Simple Contents 2.4 2.5 2.6.1 2.6.2 2.6.3 Managerial Roles Importance of Leadership Leadership Development: Ancient Thoughts Leadership Development: Education and Training Leadership Development: Organizational Systems 27 28 29 30 32 3. 3.1 3.2 3.3.1 3.3.2 3.4.1 3.4.2 Individuals Self Monitoring Locus of Control Attitudes: Influences on Behavior Attitudes: Theories X and Y Self Efficacy: Learning Self Efficacy: Confidence 34 34 35 35 36 38 39 4. 4.1 4.2 4.3 4.4 4.5 4.6 4.7.1 4.7.2 4.7.3 Groups Interdependence Group Size Stages of Group Development Social Facilitation Conformity Culture Training and Development: Types of Followers Training and Development: Lost on the Moon Training and Development: Ropes Courses 41 41 42 43 44 45 46 47 48 50 Please click the advert Teach with the Best. 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See what Agilent can do for you. www.agilent.com/find/EDUstudents www.agilent.com/find/EDUeducators © Agilent Technologies, Inc. 2012 u.s. 1-800-829-4444 canada: 1-877-894-4414 Download free ebooks at bookboon.com 5 Please click the advert Management Briefs – Management and Leadership Theory Made Simple 5. 5.1 5.2.1 5.2.2 5.2.3 5.3 5.4 5.5 5.6.1 5.6.2 5.6.3 Motivation Content and Process Theories Operant Conditioning: Effective Reward Systems Operant Conditioning: Salient Rewards Operant Conditioning: Punishment and Reward Goal Setting Equity Theory Two-Factor Theory Need Theories: Learned Needs Need Theories: Achievement Orientation Need Theories: High-level Needs 51 51 52 53 54 55 56 57 59 60 61 6. 6.1 Appendix Original Titles and Dates of Publication in Abilene Reporter-News Newspaper 62 62 You’re full of energy and ideas. And that’s just what we are looking for. © UBS 2010. All rights reserved. Contents Looking for a career where your ideas could really make a difference? UBS’s Graduate Programme and internships are a chance for you to experience for yourself what it’s like to be part of a global team that rewards your input and believes in succeeding together. Wherever you are in your academic career, make your future a part of ours by visiting www.ubs.com/graduates. www.ubs.com/graduates Download free ebooks at bookboon.com 6 Management Briefs – Management and Leadership Theory Made Simple Preface Preface This book is a collection of practical writings on management and leadership topics. These writings originally appeared in the business section of the local newspaper in Abilene, Texas, U.S.A. Using examples from movies, books, sports, and everyday experiences, they are designed to introduce readers to a variety of organizational topics in a concise, fun, and interesting manner. This volume should be useful to professional and aspiring managers as well as to students of management and business. Some of the examples mentioned in the writings are specific to an American audience and refer to specific events or times of the year (e.g., sports championships, New Year’s Resolutions, etc.), but were included because of their larger underlying lessons. The original titles and publication dates of the articles appear in the appendix at the end of the book. Download free ebooks at bookboon.com 7 Management Briefs – Management and Leadership Theory Made Simple Perspectives on Organizations 1. Perspectives on Organizations 1.1 Division of Labor In 1776, Adam Smith published his famous book, The Wealth of Nations. In that book, he described some key economic and business principles that still hold true today. The first chapter of his book described the concepts of division of labor. His classic example describes the work processes and production of workers in a pin-making factory. Smith described that making pins involved drawing out, straightening, cutting, and whitening wire, grinding points, and making and attaching heads to the wire. Several distinct operations were also required to make the heads. Completed pins also had to be bundled and packaged. In total, about 18 distinct tasks were required to make pins. As described by Smith, novice workers who created pins entirely by themselves could each perhaps “make one pin in a day, and certainly could not make twenty.” Workers probably had to put on and take off gloves, locate and handle tools, move between workstations, and learn or relearn skills that had not been recently practiced. Extending Smith’s conclusions, a group of 10 novices working by themselves could produce no more than 200 pins in a day. Smith also described the work of pin makers employed in a factory. Rather than working independently and performing all of the tasks by themselves, these workers functioned as a team and each performed only a few of the 18 pin-making tasks—which they did everyday. Smith estimated that the total daily output for this group of workers was 48,000 pins or 4,800 pins per worker each day. Smith gave three reasons for those tremendous gains in productivity. When physical tasks are continually repeated, the body learns to automatically perform the motions with minimal concentration or mental effort—he called this dexterity of the worker. Smith also recognized that dividing labor does away with time wasted moving between work stations, locating tools, putting on equipment, and learning/relearning tasks. Lastly, by performing the same tasks day in and day out, workers can envision and construct machines to aid them in their work and to make production more efficient. Smith suggested that the division of labor contributes to nations becoming wealthy and prosperous. He described that by everyone in a society working in a job where they could become specialists, the benefits of the division of labor would arise and considerable excess output would be produced. When division of labor occurs in every job and industry in a society, excess production would occur throughout all areas of society. By then trading the excess output of workers throughout society in a common marketplace, all people could enjoy more goods and services at lower prices than if they had all worked independently for all they needed. In addition to the tremendous differences in output between Smith’s workers, there is another significant difference. The factory workers were organized. Organization requires a coordinating mechanism—or manager. To reap the benefits of division of labor, groups and organizations must have workers who specialize in defining jobs, training and supplying workers, and controlling the flow of work. Part of that specialization includes understanding the principles and benefits of the division of labor. Download free ebooks at bookboon.com 8 Management Briefs – Management and Leadership Theory Made Simple Perspectives on Organizations 1.2 Hawthorne Studies Efficiency is a big topic these days. With gasoline and energy prices at all-time highs, many people are looking to get the most out of every energy dollar. Some are trading in their gas-guzzling vehicles for ones that are more fuel-efficient. They want to travel further on each gallon of fuel they purchase. The theories used to structure organizations and jobs through the Industrial Revolution and into the early 1900s were also very focused on efficiency. Companies wanted to maximize organizational output and simultaneously minimize the inputs to produce those outputs. In manufacturing, jobs were studied and tasks reduced so that each worker performed only a few distinct operations. With every worker in a factory doing one or two things over and over, workers became very efficient in their production. Employees worked long days with few breaks and had little chance to interact with others, make decisions, or give input to the production process. Workers were viewed as interchangeable parts of an efficient manufacturing machine. Although very efficient in their production, the factories of the Industrial Revolution were rather unpleasant places to work. Performing the same repetitive tasks everyday was boring and monotonous for the workers and because many had no input in setting the terms and conditions of work, employees also tended to feel powerless and enslaved. Not until some groundbreaking research in the 1920s and 1930s did the traditional understanding of the relationship between efficiency and worker performance change. From a multi-year study of workers at an assembly plant, known as the Hawthorne Studies, organizational researchers recognized the importance of paying attention to human needs and making workers feel valued. In a series of work-performance experiments, workers were allowed to give input to management decisions and permitted to interact with their coworkers (and thereby become members of a team). The experiments manipulated the hours of work and the timing and durations of lunch and rest breaks. Performance was studied across the entire series of experiments. Researchers found that performance rose across each experimental condition—even ones giving workers longer breaks and shorter work hours. Traditional organization theorists would never have predicted this finding. It would have been like turning off an efficient machine for part of the day and getting more output from it than if it had been left on for the entire day. The findings caused managers and researchers to question their assumptions and beliefs about organizations, efficiency, performance, and the importance of people in the workplace. What arose from those studies was recognition that organizations are made up of people and not machine parts, and that by attending to basic human needs (e.g., to be recognized, to feel valued, to have input, to be part of a team, and to meaningfully interact with others) organizations can back off of efficiency and still become MORE effective and productive. Efficiency is still important to organizations, but sometimes being less efficient can be even more effective for organizations. 1.3 Emphasis on People It has been just a little more than a century since Henry Ford and his engineers created and perfected the moving assembly line. With the development of the moving assembly line, all types of products could be manufactured in quantities and at prices never before seen in the history of mankind. Assembly line manufacturing technology ushered in the heyday of industrial production in the United States and around the world. Download free ebooks at bookboon.com 9 Management Briefs – Management and Leadership Theory Made Simple Perspectives on Organizations The metaphor that dominated management thought during the industrial revolution was a machine metaphor. Organizations were viewed as elaborate machines that existed to transform raw materials into completed products. Workers were viewed as parts of the production machine and as such, were replaceable and interchangeable. Little attention was paid to the high-level personal needs of workers—for example, growth, trust, recognition, affiliation, responsibility, appreciation, and self worth. The focus was instead on pay, performance, efficiency, and having a job. The consequences of ignoring high-level needs were that the workers felt alienated, powerless, unappreciated, and undervalued. Turnover and absenteeism were often very high. It was not until the Western Electric Studies of the 1920s and 1930s that researchers and organizational experts began paying serious attention to the high-level needs of workers. In those studies, researchers discovered that productivity could increase when workers were allowed to contribute input to decisions, consulted on work-related issues, and permitted to interact with co-workers and form interpersonal relationships. Even though it has been more than 70 years since the end of the Western Electric Studies, too many organizations still cling to outdated ideas about ways to manage and control their workers. Many still view workers as expenses rather than assets. In other words, they see workers as necessary costs instead of what they are—the actual organization. Without people, organizations are simply empty buildings and unused equipment. It is people who give them life, purpose, and meaning. Healthy and vibrant organizations are those with healthy and vibrant workers. As learned from research and experience, organizations that promote feelings of growth, trust, recognition, affiliation, responsibility, appreciation, and self worth tend to have healthy and vibrant workers. Starbucks Coffee is one company that does an exemplary job of putting an emphasis on its workers. They have built a successful company around the idea that their people are the most important asset of the business. The culture, values, policies, and reward systems are all designed to impart and reinforce the ideas that their workers, or partners, are the reasons for their success. Employees return the trust, respect, and appreciation shown toward them back to the corporation. Starbucks’ success using this business philosophy has been tremendous. The old saying that “Those who forget history are doomed to repeat it” holds true for managers and organizational leaders. Those who hold to antiquated industrial models of control and management will see the same results as managers of a century ago. Valuing employees and creating cultures that promote respect, growth, dignity, and appreciation are ways to build and run vibrant and successful organizations. 1.4.1 Systems: Types Organizations are social entities that are made of people who work together interdependently to accomplish a common goal or set of goals. The individuals who give organizations life perform the many different tasks and functions needed for organizations to accomplish their missions. For those who study organizations and ways to improve their functioning, the concepts of Systems Theory are particularly beneficial. Download free ebooks at bookboon.com 10