Chapter: Business Science : Managerial Behavior and Effectiveness : Environmental Issues in Managerial Effectiveness
Environmental Issues in Managerial Effectiveness
ENVIRONMENTAL ISSUES IN MANAGERIAL EFFECTIVENESS
1 Organisational Processes
2 Organisational Climate
3 Leader
4 Group Influences
5 Job Challenge
6 Competition
7 Managerial Styles
1 Organisational Processes
Managerial
Effectiveness Developed Through Organizational Interventions
Organizational
development (OD) it is a term used to encompass a collection of planned-change
interventions, built on humanistic-democratic values, that seek to improve
organizational effectiveness and employee well being.
OD Values
Respect
for employees
Trust and
support
Power
equalization
Participation
OD
Interventions Techniques
Sensitivity
Training
Refer to
a method of changing behaviour through unstructured group interaction.
The group
is process-oriented, which means that individuals learn through observing and
participating rather than being told.
The
objectives of the T-groups are to provide the subjects with increased awareness
of their own behaviour and how others perceive them, greater sensitivity to the
behaviour of others, and increased understanding of group processes.
Results
Increased
ability to empathize with other, improved listening skills, greater openness,
increased tolerance of individual differences, and improved conflict resolution
skills
Survey
Feedback
One tool
for assessing attitudes held by organizational members, identifying
discrepancies among member perceptions, solving differences is the survey
feedback approach.
The
questionnaire typically asks members for their perceptions and attitudes on a
broad range of topics, including decision making practices; communication
effectiveness; coordination between units; and satisfaction with organization,
job, peers, and their immediate supervisor.
Process
Consultation
Managers
often sense that their unit‘s performance can be improved, but they are unable
to identify what can be improved and how it can be improved.
The
purpose of process consultation is for an outside consultant to assist a client,
usually a manager, ―to perceive, understand, and act upon process events‖ with
which he or she must deal.
Consultants
in PC are there to ―give the client ‗insight‘ into what is going on around him,
within him, and between him and other people.‖ They do not solve the
organization‘s problems.
Rather,
the consultant is a guide or each who advises on the process to help the client
solve his or her own problems.
Team
Building
Team
building can be applied within groups or at the inter group level where activities
are interdependent.
The
objective is to improve coordinative efforts of team members, which will result
in increasing the group‘s performance.
The
activities considered in team building typically include goal setting,
development of interpersonal relations among team members, role analysis to
clarify each member‘s role and responsibilities, and team process analysis.
Inter-group
Development
Inter-group
development seeks to change the attitudes, stereotypes, and perceptions that
groups have of each other.
Each
group meet independently to develop lists of its perception of itself, the
other group, and how it believes the other group perceives it.
2 Organisational Climate
Organizational climate (sometimes
known as Corporate Climate) is the
process of quantifying the ―culture‖
of an organization, it precedes the
notion of organizational culture.
There are
two difficulties in defining organization climate: how to define climate, and
how to measure it effectively on different levels of analysis. Furthermore,
there are several approaches to the concept of climate. Two in particular have
received substantial patronage: the cognitive schema approach and the shared perception approach.
The
cognitive schema approach regards the concept of climate as an individual
perception and cognitive representation of the work environment. From this
perspective climate assessments should be conducted at an individual level.
The
shared perception approach emphasizes the importance of shared perceptions as
underpinning the notion of climate. Organisational
climate has also been defined as "the shared perception of the way things
are around here". There is
great deal of overlap in the two approaches..
Features
of organisational climate
·
Organisational climate is an abstract and
intangible concept. But it exercises a significant impact on the behaviour and
performance of organisational members.
·
It is the perceived aspect of organisational
internal environment.
·
It refers to the relatively enduring
characteristics which remain stable over a period of time.
·
It gives a distinct identity to organisation and do
difference from one to other organisations.
·
Total expression of what the organisation is all
about.
·
It provide the view of people behaviour about the
organisation.
·
It's a multi- dimensional concept .
Elements
of organisational climate
Individual
autonomy-It implies the degree to which employees are free to manage
themselves, have considerable decision- making power and are not continuously
accountable to higher management.
Position
structure-The degree to which objectives of jobs and methods for accomplishing
it are established and communicated to the employees.
Reward
orientation-It means the degree to which an organisation rewards individuals
for hard work or achievement. It is high when an organisation orients people to
perform better and rewards them for do the work.
Task
orientation-If the management is task oriented , the leadership style will be
automatic do the work.
Relations
orientation or consideration-The organisational climate will be considerate and
supportive if the managers are Relation- oriented while dealing with employees.
Employee needs are very important in any organisations. This will give
motivation to employees.
Job
satisfaction-Employee satisfaction are very important for any organisation, and
it is very important in organisational climate. It gives motivation to
employees to work more and more.
Morale-It
gives attitudes and sentiments of organisational members towards the
organisation members. If it is high , there will be an atmoshphere of
cooperation in the organisation. But if the morale is low, there will be
conflicts between employees.
Control-Having
full control over the workers. Control is either two types either flexible or
flexible.
Factors Affecting Organizational Climate and
Retention
Organisational
change-Change refers to new reporting relationships, responsibilities,
procedures, policies, equipment, tools, and/or software used on the job. Think
about how an organization or work unit responds to change as a whole, rather
than how individuals respond. Communication.
Service-Service
is defined as meeting the needs and expectations of the persons (children,
youth and families) for whom you are performing your work. This does not refer
to the management, but the persons who benefit from the work.
Compensation-Monetary
compensation is an employee's gross payroll pay rate and benefits programs
funded by an organization or agency. Flextime and benefits like agency-based
childcare are closely related to compensation.
3 Leader
"Leadership
is a function of knowing yourself, having a vision that is well communicated,
building trust among colleagues, and taking effective action to realize your
own leadership potential."
Prof.
Warren Bennis
Types of
Leadership Style
• Autocratic:
– Leader
makes decisions without reference to anyone else
– High
degree of dependency on the leader
– Can
create de-motivation and alienation
of staff
– May be
valuable in some types of business where decisions need to be made quickly and decisively
• Democratic:
Encourages
decision making
from
different perspectives – leadership may be emphasised throughout the
organisation
– Consultative:
process of consultation before decisions are taken
– Persuasive:
Leader takes decision and seeks to persuade others that the decision is correct
• Laissez-Faire:
– ‗Let it
be‘ – the leadership responsibilities are shared by all
– Can be
very useful in businesses where
creative ideas are important
– Can be
highly motivational,
as people
have control over their working life
– Can make
coordination and decision making
time-consuming
and lacking in overall direction
– Relies on
good team work
– Relies on
good interpersonal relations
• Paternalistic:
1. Leader
acts as a ‗father figure‘
2. Paternalistic
leader makes decision but may consult
3. Believes
in the need to support staff
4. Theories
of Leadership
Early
Theories:
Great Man
Theories
• Leaders
are exceptional people, born with innate qualities, destined to lead
• Term
'man' was intentional - concept was primarily male, military and Western Trait
Theories
• Research
on traits or qualities associated with leadership are numerous
• Traits
are hard to measure. For example, how do we measure honesty or integrity?
Leadership Traits
Group
Exercise:
• Choose
leaders YOU admire
• What
personality traits and skills do they have?
Traits
• Adaptable
to situations
• Alert to
social environment
• Ambitious
and achievement orientated
• Assertive
• Cooperative
• Decisive
• Dependable
• Dominant
(desire to influence others)
• Energetic
(high activity level)
• Persistent
• Self-confident
• Tolerant
of stress
• Willing
to assume responsibility
Skills
• Clever
(intelligent)
• Conceptually
skilled
• Creative
• Diplomatic
and tactful
• Fluent in
speaking
• Knowledgeable
about group task
• Organised
(administrative ability)
• Persuasive
• Socially
skilled
Functional
Theories (John Adair, Action Centred Leadership, 1970)
Leader is
concerned with the interaction of 3 areas:
• Task –
goal setting, methods and process
• Team –
effective interaction/communication, clarify roles, team morale
• Individual
– attention to behaviour, feelings, coaching, CPD
Behaviourist Theories (Blake
and Mouton, Managerial grid, 1964)
•
Leaders behaviour and actions, rather than their
traits and skills e.g. production orientated or people orientated
•
Different leadership behaviours categorised as
‗leadership styles‘ e.g. autocratic, persuasive, consultative, democratic
•
Doesn‘t provide guide to effective leadership in
different situations
Situational/contingency Leadership (Hersey-Blanchard,
1970/80)
Leadership
style changes according to the 'situation‗ and in response to the individuals
being managed – their competency and motivation
Transformational
Theory (Bass and Avolio, 1994)
• Leaders
inspire individuals, develop trust, and encourage creativity and personal
growth
• Individuals
develop a sense of purpose to benefit the group, organisation or society. This
goes beyond their own self-interests and an exchange of rewards or recognition
for effort or loyalty.
4 Group Influences
A collection of individuals who have regular contact and frequent interaction, mutual influence, common feeling of camaraderie, and who work together to achieve a common set of goals.
Group
influence
n Group
types
n Primary
n Secondary
n Brand
community
n Formal v.
informal groups
n Aspiration
v. dissociative
n Conformity
n Peer
pressure
Social
Power
Types of
power
n Referent
n Legitimate
n Expert
n Reward
n Coercive
Reference
Group Influences
n Types
n Informational
n Utilitarian
n Value-expressive
n Value
& Reference groups
n Utilitarian
n Hedonic
Reference
Group Influence
What
makes people susceptible to group influence?
n Attention
to social comparison information
n Separateness-connectedness
n Connected
self-schema
n Social
influence and embarrassment
Word-of-mouth
Marketing
n Characteristics
n Organic
n Amplified
n Cheaper
and more influential
n Positive
& negative word-of-mouth
n Consumer
expertise
n Online
capabilities
n Social
networking
Word-of-mouth
Marketing
n Buzz
marketing
n Guerilla
marketing
n Ford
Focus
n Viral
marketing
n Cloverfield
n The Dark
Knight
n Stealth
marketing
n Tactics
Word-of-mouth
Marketing
n Opinion
leaders
n Characteristics
n Market
mavens
n Surrogate
consumers
n Rachel on
Friends
n Diffusion
processes
Household
Decision-Making
n Traditional
Structure
n Family
n Nuclear
n Extended
n Emerging
trends
Household
life cycle
n Boomerang
kids
n Sandwich
generation
n Household
Decision-Making
n Purchasing
roles
n Influencer
n Gatekeeper
n User
n Decision-maker
n Purchaser
n Sex roles
n Power of
children
n Consumer
socialization
5 Job Challenge
The Job
Challenge Profile (JCP) is a self-assessment that will gauge workplace
challenges and highlights prime learning experiences. This profile can show you
or your employees how to seek, challenge and develop the valuable skills needed
within ones professional life.
What does
the Job Challenge Profile assess?
There are
five clusters of job components that represent major aspects of managerial
work:
› Experiencing
a job transition
› Creating
change
› Managing
high levels of responsibility
› Managing
boundaries
› Dealing
with diversity
Need a
change in your career? Accept a new job challenge.
The
benefits of using the Job Challenge Profile:
› Versatile:
can be administered to managers and leaders at all levels and organization
types
› Quick,
easy to understand and administer
› Comprehensive
Facilitator‘s Guide
Job
assignments are one of the oldest and most important forms of leader
development. It can give you the opportunity to learn by doing, and more
importantly, allow you to grow as a leader. But not every job can help develop
leadership, however. It must be something that stretches you, pushes you out of
your comfort zone, and requires you to think and act differently.
Research into what makes a job
developmental has
identified five broad sources of challenge related to learning:
1. Job transitions. A change in work role –
whether change in content, level of responsibility or location – requires you to handle responsibilities that are in
some way unfamiliar and where the usual routines and behaviors are no longer
adequate.
2. Creating change. Jobs that require you to create
change call for actions and decisions in the face of uncertainty and ambiguity. You are responsible for new
directions, must address inherited problems and face problems with employees who
are dealing with change.
3. High levels of responsibility.
Assignments with high levels of responsibility have greater breadth, visibility and complexity; they also
expose you to pressure and high-stakes decisions.
4. Managing boundaries. Most
leaders are accustomed to managing downward. In situations where you must work across lateral
boundaries your new challenge is to work with people over whom you have no
formal or direct authority.
5. Dealing with diversity. Most
organizations are experiencing rapid and substantial increases in diversity, not only in the domestic
workforce but also in the demands of operating in the global arena. This
requires you to learn to work with and manage people from different cultures or
countries as well as with people of both genders and of different racial and
ethnic backgrounds.
4.6 Competition
From a
managerial perspective, competition generally falls into the external environment, though it can also take shape in
the internal environment through rivalry
between strategic business
units (SBUs). For managers, understanding the external competitive landscape is
a critical factor in
assessing company strategies and benchmarking appropriately
to ensure the competitiveness of the firm. Businesses that fail to keep pace
with their rivals will eventually be overpowered and often forced to develop an
exit strategy.
Avoiding
the risks of competitive factors demands a strong understanding of operational efficiency (low cost), quality production, differentiation, and competitive advantage or who
you target and whether or not you have a cost or quality advantage (see figure
below).
Cost vs.
quality
Companies
generally achieve either a cost or a quality advantage (very rarely, both).
Low-Cost and Branding
The
simplest perspective on competition is in industries where products are homogeneous (or very alike). In such a
situation, companies compete directly. For example, bottled-water producers are
directly involved in such a framework and thus
adopt two basic competitive strategies: low-cost and branding.
Low-cost
suppliers find ways to optimize their production and distribution to offer
consumers the lowest possible price on one bottle of water. Low-cost suppliers
often benefit largely from economies of scale. Branding, on the other hand, aims
to convince the consumer that a higher price point is worth paying based upon
the company's name, reputation, or other distinguishing characteristic. For example, Dasani brand water
costs more than generic store brand water, despite being essentially the same
product. Commercials, aesthetic presentation, goodwill, and factors other than price may
then influence a consumer's purchasing decision.
Differentiation
Most
products and services are not homogeneous, however, allowing incumbents in an industry to compete with
one another by means of various competitive strategies. Differentiation is a
competitive tactic wherein companies approach certain niche needs within an
industry to capture a segment of the market share.
An
example of differentiation might be cereal. There are hundreds of different
kinds of cereals. The need being filled is sustenance: people need to eat. The
producers of these cereals use differentiation to capture a share of the cereal
market: some brands focus on their organic nature, others their sugary appeal,
and still others on being "cool." Branding plays an important role here as well, though assessing niche consumer needs
and filling them is the principal focus.
Quality
Finally,
there is the potential to compete externally based upon quality. Toyota makes
both the Corolla and the Lexus, thereby targeting both ordinary automobile
drivers and those in the luxury-car consumer bracket. Quality competitive
strategies, while related to branding, provide a particular level of quality to
capture a specific income or interest demographic. The opportunity cost of
efficiency is associated with quality, which generally sees higher price
points. Quality is therefore a strong antithesis to the low-cost strategy.
Internal
Competition
Businesses
also compete internally, an intrinsically complex issue. On the surface,
internal competition involves either direct product substitutes or funding competition (among
different business units). An example of internal competition is PepsiCo. Pepsi
makes both colas and sports drinks, all of which sit on the shelf next to one
another. When a customer sees the sports drink and chooses it over the cola,
the cola has lost a sale to an internal competitor. Pepsi, however, did not
lose a sale; it merely lost one segment of the business while gaining another.
With
these points in mind, managers must thoroughly understand the products they are
pitching and which strategy will help them avoid going toe-to-toe with other
businesses with whom they cannot compete. Starting up a car manufacturing
business to compete with Hyundai in the low-cost market is extremely difficult,
as Hyundai has economies of scale in place that will almost always beat smaller
competition on a low-cost strategy. This example illustrates an extremely
important point in business: rely on strengths. Managers must understand their
own competitive advantage (what they do better than the competition) to adopt
the appropriate competitive strategy to gain market share and remain profitable
7 Managerial Styles
Management Styles
According
to Hay-McBer there are six key leadership or management styles.
DIRECTIVE
The
DIRECTIVE (Coercive) style has the primary objective of immediate compliance
from employees:
·
The ―do it the way I tell you‖ manager
·
Closely controls employees
·
Motivates by threats and discipline
Effective
when:
·
There is a crisis
·
When deviations are risky
Not
effective when:
·
Employees are underdeveloped – little learning
happens with this style
·
Employees are highly skilled – they become
frustrated and resentful at the micromanaging.
AUTHORITATIVE
The
AUTHORITATIVE (Visionary) style has the primary objective of providing
long-term direction and vision for employees:
·
The ―firm but fair‖ manager
·
Gives employees clear direction
·
Motivates by persuasion and feedback on task
performance
Effective
when:
·
Clear directions and standards needed
·
The leader is credible Ineffective when:
·
Employees are underdeveloped – they need guidance
on what to do
·
The leader is not credible – people won‘t follow
your vision if they don‘t believe in it
AFFILIATIVE
The
AFFILIATIVE style has the primary objective of creating harmony among employees
and between manager and employees:
·
The ―people first, task second‖ manager
·
Avoids conflict and emphasizes good personal
relationships among employees
·
Motivates by trying to keep people happy
Effective
when:
·
Used with other styles
·
Tasks routine, performance adequate
·
Counselling, helping
· Managing conflict Least
effective when:
·
Performance is inadequate – affiliation does not
emphasise performance
·
There are crisis situations needing direction
PARTICIPATIVE
The
PARTICIPATIVE (Democratic) style has the primary objective of building
commitment and consensus among employees:
·
The ―everyone has input‖ manager
·
Encourages employee input in decision making
· Motivates by
rewarding team effort
Effective
when:
·
Employees working together
·
Staff have experience and credibility
·
Steady working environment
Least
effective when:
·
Employees must be coordinated
·
There is a crisis – no time for meetings
·
There is a lack of competency – close supervision
required
PACESETTING
The
PACESETTING style has the primary objective of accomplishing tasks to a high
standard of excellence:
·
The ―do it myself‖ manager
·
Performs many tasks personally and expects
employees to follow his/her example
·
Motivates by setting high standards and expects
self-direction from employees
Effective
when:
·
People are highly motivated, competent
·
Little direction/coordination required
·
When managing experts
Least
effective when:
·
When workload requires assistance from others
·
When development, coaching & coordination
required
COACHING
The
COACHING style has the primary objective of long-term professional development
of employees:
·
The ―developmental‖ manager
· Helps and encourages
employees to develop their strengths and improve their performance
·
Motivates by providing opportunities for professional
development
Effective
when:
·
Skill needs to be developed
·
Employees are motivated and wanting development
Ineffective when:
·
The leader lacks expertise
·
When performance discrepancy is too great –
coaching managers may persist rather than exit a poor performer
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