Management and Leadership: Theories, Roles, and Change
The Challenge of Management
Managers are responsible for helping organizations achieve their objectives by creating and implementing plans. Management optimizes human, material, and financial contributions for organizational goals.
The Systems Approach
Management must be sensitive to organizational complexity and implement systems for efficiency. This involves breaking down barriers between departments and functions. Key concepts include: Subsystems, Synergy, Open and closed systems, Boundaries, Flows, and Feedback.
The Contingency Approach
Managers must consider external factors like social, political, and economic conditions, including exchange rates. Internal constraints such as technology, tasks, and human factors also need consideration.
Levels of Management
- Senior: Board of Directors, CEO
- Middle: Functional managers
- Junior: Supervisors, Unit Managers
- Operational: Production workers, sales and service employees
Management Roles
Managers have interpersonal, informational, and decisional roles. They spend time controlling, solving problems, communicating, attending meetings, reading, writing memos, and representing the company.
Managing Change
The Process of Change
Change involves a transition from denial and resistance to exploration and commitment. Managers must guide people through this process, addressing feelings of loss related to security, competence, relationships, territory, and direction.
Managing Change Steps
The change process includes:
- Vision: Defining where the organization is going.
- Strategy: Planning how to get there.
- Monitoring: Tracking progress.
A change program should include: Leadership, Coherence, Communication, Timing, and Structure.
Managers must set SMART objectives:
- Specific: Clearly defined goals.
- Measurable: Identifiable differences.
- Attainable: Realistic targets.
- Result-oriented: Desirable outcomes.
- Time-bound: Established deadlines.
Leadership
Leadership motivates people to achieve specific goals, involving authority and responsibility.
Leadership Theories
Theory X: Managers believe people dislike work, are lazy, and avoid responsibility, requiring coercion and control.
Theory Y: Managers believe people see work as natural and can be motivated through personal development and creativity.
The Contingency Approach to Leadership
Managers must differentiate between problems they can handle alone and those requiring advice. Leadership style depends on personal forces, subordinate characteristics, and the situation.
Successful and Effective Leadership
Success depends on:
- Leader-member relations: Acceptance, confidence, support, and loyalty.
- Task structure: Complexity of the job.
- Leader’s position power: Formal or informal power.
The Path-Goal Theory of Leadership
Managers identify goals, rewards, and paths to achieve them. Effective leaders:
- Communicate paths to achieve personal and organizational objectives.
- Help subordinates along this path.
- Remove obstacles.
The most effective leadership style depends on employee characteristics and the workplace situation.
The Participatory Theory of Leadership
Managers should consider:
- Is a decision needed that employees may disagree with?
- Do managers have sufficient information?
- Is the problem structured?
- Is employee acceptance critical?
- Would a management decision be accepted?
- Is there likely to be conflict?
- Do employees share the same objectives?
Types of Leadership
- Autocratic I: Managers solve problems using available information.
- Autocratic II: Managers solve problems after obtaining information from subordinates.
- Consultative I: Managers share problems with individual subordinates.
- Consultative II: Managers share problems with a group of subordinates.
- Group Participation: Managers share problems with a group, analyze them, and reach a consensus.
Decision effectiveness depends on quality, commitment, and time.
Difference Between Leadership and Management
Managers do things right; leaders do the right thing. Management focuses on efficiency, while leadership focuses on vision and judgment.