Session 3
Management and Team Development
Question 11
Neville is in charge of a group of 12 people involved in complex work. This is of an ongoing nature. The group has been working together amicably and successfully for a considerable time. Its members value Neville’s leadership and the back-up given him by Olivia. She often elaborates on Neville’s instructions and deals on his behalf with group members’ queries, expecially when he is absent on the group’s business.
Much of the success of the group has been due to Peter, who is creative at problem-solving, and Rosalinde who has an encyclopaedic knowledge of sources of supply and information. Quentin is an expert on charting and records, and Sheila is invaluable at sorting out disagreements and keeping everyone cheerful. The remaining members of the group also have roles, which are acceptable to themselves and to the others.
Recently, Olivia resigned for family reasons. Because the workload has been increasing, Neville recruited four new people to the group. Neville now finds that various members of the group complain to him about what they are expected to do and about other people’s failings. Peter and Rosalinde have been unusually helpful to Neville, but have several serious arguments between themselves and with others.
Required
Relating your answer to the theories of Belbin and Tuckman:
a)analyse the situation before and after the changes (8 marks)
b)recommend how Neville should ensure that the group reverts to its former cohesiveness. (7 marks)
(15 marks)
Answer Plan
6Organisation structure
6.1Defining organisatonal structure
Organisational structure means grouping people into departments or sections and allocating responsibility and authority
Organisational structure is very important because the decisions taken about the structure of the organization have a material effect on performance.
Some organizations derive the strength of their operations from the rigidity of the definition of the roles, procedures and the organisation’s rules. Others follow strategies that require them to behave flexibly, with tactics and lower-level plans being a response to a short-term situation
What is essential is that the organizational structure has a good fit with the organisation’s strategy.
Child identified 5 main questions, which a designer of an organization needs to ask:
¨Should jobs be broken down into narrow areas of work and responsibility, so as t secure the benefits of specialization?
¨Should the overall structure of the organization be tall rather than flat in terms of its levels of management and spans of control?
¨Should jobs and departments be grouped together in a functional way according to the specialist expertise and interests they share?
¨Is it appropriate to aim for an intensive form of integrative mechanism between the segments of the organization or not?
¨What approach should management take towards maintaining adequate control over work done? Should it centralize or delegate decisions, and all or only some of the decisions?
6.2Classical approaches to structure
Classical writers or theorists including Lyndall Urwick, Henri Fayol and, E.F.L. Brech, focused on a single set of principles.
To the classical writers, order and clear definitions were the chief aims of organizations – lack of precision and lack of clarity in the structuring of organizations were to be avoided.
Lyndall Urwick suggested the following eight classical management principles:
-scalar concept : a hierarchy of clearly defined posts, authority being delegated from the top to the bottom with correspondingly defined responsibilities and communication channels
-unity of command: an office-holder receiving orders from one hierarchical superior
-exception principle: delegation to be maximized, with decisions being taken at the lowest level possible
-span of control concept: an optimum number of subordinates for each hierarchical superior
-scientific method: in arriving at decisions, the scientific method of observation, hypothesizing, experimentation and the formulation of laws should be employed
-specialization: the definition of management activities to be based on specialized criteria
-principle of the objective: every part of the organization to be needed for the purpose of the organization, otherwise the part is redundant
-principle of correspondence: in every position, authority and responsibility should correspond
6.3Bureaucratic organization
The bureaucratic model of Max Weber places great emphasis on formal relationships, where communication upwards to the superior is discouraged; orders are given and obeyed. Initiative and personal involvement with the allocated tasks are minimized.
Weber stated that bureaucracies should have:
¨clearly defined duties and responsibilities for all organizational members
¨hierarchically arranged staff with each member reporting to a superior and responsible for subordinates (except for those at the top or bottom of the structural pyramid)
¨an elaborate system of rules governing the manner in which each official carries out their duties – decisions are recorded and presented so as to constitute precedents to guide future decisions
¨officials who hold office on the basis of merit formally attested and subject to systematic selection and training (seniority and merit being considered to be the same) – this includes promotion by testing
¨all officials carrying out their duties without regard to any personal or family commitment, impartially and unemotionally – their authority is confined to official duties and they are motivated by a sense of duty and career prospects.
6.4Socio-technical systems approach
Trist and Bamforth have developed a socio-technical systems approach. They pointed out that altering a technical system would inevitably cause changes at the social level. They emphasise the importance of understanding and gauging the social consequences of making technical changes.
The systems school states that individuals are outlived by the system: management should concentrate attention on improving the system, people can adapt to a new system.
The role of a manager also changes from being a motivator to being a co-ordinator of company resources within a system framework.
6.5The contingency approach
Joan Woodward developed the contingency school.
The systems/contingency school suggested that there was no one best method because of the large number of variables that influence operations. Thus, flexibility and acceptance of change were key components of the systems theory. They believe that organizational reflects the need for co-ordination, often by the use of matrix systems.
The implications of the systems/contingency approach is that the best organizational design will depend on:
¨the technological environment
¨the diversity of the tasks
¨the size of the organization
¨the type of personnel
¨the culture of the organization
Burns and Stalker put forward the thesis that organizational structures could be placed on a continuum. At each end of the continuum are:
¨Mechanistic organizations operate with order, clear definitions, stability and rigidity providing the main sources of strength. Most appropriate for stable environments.
¨Organic organizations are flexible and place emphasis on goal achievement rather than conformity to hierarchy and rules. This style was more consistent with relatively unstable environments where there is a high level of change, requiring a responsive organizational structure.
Mintzberg, added to Burn’s and Stalker’s ideas by suggesting that increasing complexity in the environment required handing down decision-making responsibility to specialists. The different structure required in different situations is illustrated in the diagram below.
Simple Complex
Static Centralised Decentralised
Mechanistic Mechanistic
Dynamic Centralised Decentralised
Organic Organic
Question 12
Required
a)Describe the classical approach to organizations. (8 marks)
b)Describe the contingency approach to organizations (7 marks)
(15 marks)
Answer Plan
7Authority, responsibility and delegation
7.1Definitions
In general terms we can say that:
¨authority is the right to do things
¨responsibility is an obligation placed on a person who occupies a certain position
¨accountability is the need for individuals to explain and justify any failure to fulfil their responsibilities to their superiors in the hierarchy
¨power is the ability to exert an influence over persons or situations
¨delegation is the act by which a person or group of persons possessing authority transfers part of that authority to a subordinate person or group.
The classical approach to organization placed great emphasis upon the need to define clearly a manager’s responsibilities.
7.2 Authority and responsibility
Authority can be defined as the right that an individual has to require certain actions of others. Ie. It is the right to use power. It is necessary to distinguish between authority and power.
Power is a broader concept, which can be defined as the ability to influence the actions of others. So it is quite possible to have authority without power (e.g. a weak and ineffective supervisor) or power without authority.
Authority can arise from any of three main sources:
·formal – where the organization bestows the authority upon the individual by means of their job title and the reporting relationships specified
·technical – where the authority arises due to personal skills or special knowledge or training; here, the authority exists only within the scope of that special knowledge or skill
·personal, informal – this authority is not recognized in any organization chart. It exists because, without regard to the position they hold, the person is accepted as being particularly respected, or an elder citizen or is simply popular and recognized by colleagues as being efficient.
Authority in an organization belongs to the office or an office holder under the rules laid down by the organization. It is the right of a person holding a certain in a position to exercise discretion in making decisions affecting others.
A definition of responsibility is ‘liable to be called to account, answerable’.
Responsibility and authority should be commensurate. An individual requires adequate authority to enable them to fulfill their responsibilities.
7.3Delegation
Delegation is an important aspect of organization and effective management.
The main reasons for delegating authority are:
·Lack of time or energy
·Techniques which call for specialists
·Need for training for management succession
Delegation is a process in which a manager or supervisor:
·Determines the results expected
·Allocates duties to subordinates
·Grants them authority to enable those duties to be carried out
·Holds them responsible for the completion of the work and achievement of results.
Delegation is almost always directed downwards within the organization.
Delegation is not just an arbitrary shedding of work. Within the formal structure of the organization, delegation means the conferring of a specified authority by a higher authority.
Responsibility is an obligation owed and cannot be delegated. A superior delegates to a subordinate one or more tasks together with the authority to carry them out. However, the superior remains responsible for getting the job done. It does follow that the subordinate has a responsibility back to their superior once they have accepted the assignment and the authority to carry it out.
The process of delegation involves:
·Define the limits of authority delegated to the subordinate by giving an outline of the job, the control limits and the desired standards, and ensuring that the subordinate accepts and understands what is involved
·Be satisfied that the subordinate is competent to exercise that authority
·Be disciplined enough to permit the subordinate the full use of that authority
·Without constant checks and interference, and to be willing to listen to the ideas of the subordinate
·Link achievement with reward
In planning delegation, therefore, managers must ensure that:
·They do not delegate so much as to totally overload a subordinate
·The subordinate has reasonable skill and experience in the area concerned
·Appropriate authority is delegated
·They remember to monitor and control
·They are not simply ‘passing the buck’ or ’opting out’
·All concerned know that the task has been delegated
·They put time aside for couching and guiding
·If delegation goes well, then the person will expect a reward, e.g. upgrade job or more pay.
Question 13
“ Successful management depends upon effective delegation of authority”
Required
a)Analyse the main principles by which authority may be delegated (4 marks)
b)Comment on the advantages to both manager and subordinate of effective delegation.
(6 marks)
c) A common criticism of many managers is “He/she does not know how to delegate”. Discuss the probable reasons for this statement. (5 marks)
(15 marks)
Answer Plan
7.4Types of power
The essence of power is that the persons exercising power are enabled to assume that power by their followers. So, although a person may not have any formal authority, he or she is able to assume power over others through the willingness of those to act as followers.
Legitimate power
Legitimate power is based on agreement and commonly held values which allow one person to have power over another peroson. It normally arises from position and derives from out cultural system of rights, obligations, and duties in which a ‘position’ is accepted by people as being legitimate.
Reward power
With reward power, a person has power over another because they can mediate rewards for them such as promotions, recommendations or answers to questions.
Coercive power
This enables a person to mediate punishments for others: for example, to dismiss, suspend, reprimand them, or make them carry out unpleasant tasks.
Referent power
Referent power is based upon the identification with the person who has the resources, or the desire to be like that person. It could be regarded as ‘imitative’ power, which is often seen in the way children imitate their parents. It is not necessarily connected to the reward power or coercive power that parents may have over their children.
Expert power
Expert power is based upon one person perceiving that the other person has expert knowledge of a given subject and is a recognized authority in a given situation; such knowledge may be theoretical but is more likely to be practical in its application.
Weber’s contribution to the study of the organization was his interpretation of legitimacy. He identified two media by which commands are obeyed:
Power – the ability to force people to obey, regardless of their resistance.
Authority – where orders are voluntarily obeyed by those receiving them, and subordinates accept the ideas and directives from above because they are legitimate.
Weber regarded an organization as an authority structure. He was interested in why people obeyed commands and he identified three grounds on which legitimate authority could exist:
Charisma – based on a special quality of personality
Tradition – based upon custom and practice
Rational-legal grounds
The rational-legal grounds
This is Weber’s classic bureaucracy. It is rational because its means are expressly designed to achieve certain goals with maximum efficiency. It is legal because authority is exercised by means of a system of rules and procedures through the office which an individual occupies, Weber’s characterization is the most technically efficient form of organisation possible, identified with precision, speed, knowledge, continuity, discretion, unity, strict subordination and minimization of friction and material and personal costs.
Question 14
As a result of company expansion the accounts manager now has control of four assistant managers. This expansion has resulted in the need for greater delegation and clear definitions of levels of authority and responsibility.
Required
a)Explain what is meant by: i) Responsibility (2 marks)
ii) Authority (2 marks)
iii) Delegation (2 marks)
b)Explain the need for effective delegation, the problems with delegation and how these problems may be overcome. (9 marks)
(15 marks)
Answer Plan
8Objectives, standards and performance management
8.1Need for objectives
Planning helps the organization to define the purposes and activities.
Plans should be based on clearly defined objectives, be precise and practicable and simple to understand and operate.
Factors to be considered when setting objectives: (Drucker)
·Objectives are commitments to action through which the mission of the business is to be carried out, and provide the standards against which performance is to be measured
·Objectives must be operational – that is, capable of being converted into specific targets and implying certain courses of action.
·Objectives should be of a fundamental nature to ensure the concentration of resources – that is objectives must be selective
·A number of objectives are required to manage the business adequately
Objectives can be classified as follows (Drucker):
·Profitability
·Innovation
·Market standing
·Productivity
·Financial and physical resources
·Manager performance and development
·Public responsibility
The primary objectives of a business organization are generally
·To continue in existence
·To maintain growth and development
·To make a profit
These things are necessary to maximize the wealth of the shareholders.
Customer satisfaction is also an important objective although it may be viewed as being incompatible with profit as a corporate objective.
There may be tension between the objectives of shareholders and those of directors. Cyert and March proposed a consensus theory of company objectives, in which the objectives pursued by an organization represent a compromise between the objectives of various groups within the organization, including the directors and the shareholders.
Question 14
Question 14
As a result of company expansion the accounts manager now has control of four assistant managers. This expansion has resulted in the need for greater delegation and clear definitions of levels of authority and responsibility.
Required
a)Explain what is meant by:
i)Responsibility (2 marks)
ii)Authority (2 marks)
iii)Delegation (2 marks)
b)Explain the need for effective delegation, the problems with delegation and how these problems may be overcome. (9 marks)
(15 marks)
Answer Plan
Organisations must also recognize the possible conflict between short term and long term objectives. A company might be able to improve its profit in the long run by sacrificing some profit in the short term (e.g. by spending on product development) and vice versa.
The ‘stakeholder’ approach suggests that the objectives of an organization should be derived by balancing the often conflicting claims of the various stakeholders (or coalitions) in the organization.
Ethics and social responsibility. New factors such as pollution control, conservation of natural resources and avoidance of environmental damage, are increasingly being regarded by companies as important objectives.
An organisation’s (corporate) objectives almost always include financial objectives. Individual employees also have their own objectives (needs and aspirations). There may be a conflict between an organisation’s objectives and those of the individual employee.
8.2Target setting and measuring performance
Objectives can be defined as the short-term means employed to attain the longer-term goals or ends of the organizational members.
Objectives should be:
·Specific
·Measurable
·Achievable
·Relevant
·Timescale
Quantitative results can be measured numerically whereas qualitative factors involve a certain amount of subjectivity.
Management by objectives (MBO) permits individuals to establish objectives through which they can determine their contribution to the corporate objectives, as well as their own personal ones.
The principle of MBO is that measurable objectives are defined and agreed for the key areas of each job and actual performance is measured against these.
Performance is measured in terms of effectiveness (the degree to which objectives are accomplished) and efficiency (the use of resources in attaining objectives).
8.3Performance management
Performance management is a means of getting better results by understanding and managing performance within an agreed framework of planned goals, standards and competence requirements. It involves employees and managers in agreeing objectives and standards, as well as resources needed to perform work tasks.
The performance management process can be illustrated as :
Standards of performance are written statements describing how well a job should be performed. Performance evaluation is process of assessing, summarizing and developing the work performance of an employee.
The standards describing the specific behaviours and actions required for work performance should be consistent with organizational objectives, realistic, specific, measurable, challenging and dynamic.
There are two ways to develop written performance standards:
·Directive approach
·Collaborative approach
·Creating a climate of continuous learning
·Helping maintain a high level of employee performance
·Enhancing job and career related skills and experience
·Enabling employees to keep abreast of changes
·Making employees competitive
·Motivation employees
The occasions when the development of a performance development plan might be contemplated are:
·After a review of performance standards
·As part of the ongoing process of observation and feedback
·As the final element of the performance evaluation process
·When an employee initiates a request fro education and development opportunities
The responsibilities of managers in the personal development process include:
·Assessment
·Provision of information
·Referral
·Guidance
·Development
Where payment is linked directly to performance incentives can be built into the payment schemes via
·Piece work
·Measured day work
·Commission
·Productivity plans
·Profit sharing
Some incentive schemes therefore tie part of the employees earnings to the results/outputs achieved.
Performance related pay will only motivate if the prospective payment is significantly large in relation to the normal income of that person.
Question 15
Required
Briefly explain what is meant by ‘performance management’. (3 marks)
Describe the process or steps involved in performance management. (6 marks)
List the advantages to employees of the organization adopting a performance management process. (6 marks)
(15 marks)
Answer Plan