1. Chapter 4
Leadership, management and supervision

2. Chapter objectives Theories of management Authority & responsibility
Leadership theories
Leadership styles

3. Leaders?

4. Nature and importance of leadership
Leadership is an interpersonal influence directed toward the achievement of a goal.
Conscious activity, concerned with setting goals and inspiring people to provide commitment to achieve the organisation’s goals

5. Management Overall aim: getting things done
‘Effective use and co-ordination of resources such as capital, plant, materials and labour to achieve defined objectives with maximum efficiency’
Overall aim: getting things done
Delegating to other people rather than doing everything themselves

6. Management can be considered as a:
Function – responsibility for directing & running an org
Process – activities by which internal & external resources are combined to achieve the objective of the org
Discipline – body of knowledge (science & art)
Profession – ‘a type of higher grade non-manual occupation with both subjectively & objectively recognized status, possessing a well-defined area of study or concern & providing a definite service after advanced training & dev.’

7. Supervision
A supervisor is a type of manager whose main role is to ensure that specified tasks are performed correctly and efficiently by a defined group of people, none of them managers.

8. Duties & responsibilities
Allocating the tasks to, & organizing the work of those people for whom he/she is responsible
Supervising the work of subordinates & being responsible for achieving targets in the most efficient way
Introducing newly appointed employees to their section
Maintaining discipline
Handling personal problems & settling grievances
Dealing with unsatisfactory performance
Informing mgt
Conveying to, & interpreting for, mgt the feelings & views of employees.

9. Functions of a supervisor
Planning
Organising
Controlling
Communication
Problem-solving and decision-making
Motivating and maintaining discipline

10. Manager vs. leader
A leader can be a manager, but a manager is not necessarily a leader.
Manager Leader
Administers Innovates
Relies on control Inspires trust
Eye on bottom line Eye on the horizon

11. Theories of management
Classical writers on mgt: mainly concerned with efficiency
FAYOL: Universality of mgt principles: proposed universal rules
TAYLOR: Principles of scientific mgt: efficient methods
Human relations school: MAYO: Reaction to scientific mgt: Human behaviour
Modern writers: Drucker, Mintzberg

12. Classical school ‘One best way’ To organise the firm
To do the individual job
Emphasis on the task rather than the person doing it
Main features
Belief in one controlling central authority
Specialisation of tasks
Fair pay and good working conditions, decided by mgt
Clear lines of command

13. Taylor Underlying principles of scientific mgt are:
The development of a true science of work.
Standard method for performing each job
Carefully select workers with right abilities for the job
Carefully train the workers to the job
Provide proper incentives
Support workers by planning their work and by smoothing the way as they go about their jobs

14. Implications of Taylor’s scientific management
Workers should be set high targets, but should be well rewarded for achieving them.
Working methods should be analysed ‘scientifically’, including the timing of work.
Management should plan and control all the workers’ efforts, leaving little discretion for individual control over working methods.

15. Fayol: The functions of management
To plan – examining the future and drawing up a plan of action – the elements of strategy
To organise – build up the structure, both material and human, of the undertaking
To command – maintaining activity among the personnel
To co-ordinate – binding together, unifying and harmonising all activity and effort
To control – seeing that everything occurs in conformity with established rule and expressed command.

16. Fayol – 14 rules of managerial conduct
Division of work
Authority
Discipline
Unity of command
Unity of direction
Subordination to the general interest
Remuneration
Centralisation
Scalar chain
Order
Equity
Tenure of personnel
Initiative
Esprit de corps

17. Human Relations School – Elton Mayo
Hawthorne Experiments: effects of the changes in physical working conditions
The human relations movement emphasized:
Social factors at work
Groups
Leadership
Informal organisation
Behaviour of people

18. Human Relations School – Elton Mayo
School explicitly recognised the role of interpersonal relations in determining work behaviour, and it demonstrated that factors other than pay can motivate workers.

19. Modern writers Behaviouralism
Concerned with personal adjustment of the individual within the work organisation & the effects of group relationships & leadership styles.
Contingency approach (‘no one best approach’)
Takes into consideration other schools of thought, however emphasises the need to adapt to suit particular circumstances.

20. Modern writers cont. Systems approach OUTPUT PROCESS INPUT ENVIRONMENT
BOUNDARY

21. Modern writer – Peter Drucker
Set objectives
Develop
people
Organise
The Manager
acc. to Drucker
Establish
yardsticks
Motivate & communicate

22. Mintzberg
Like Fayol, Mintzberg observed what managers actually did at work.
What he found however was different from the 5 functions that Fayol had suggested.
He built up a model of typical managerial behaviour, which looked at different roles.
These roles came from different tasks involved
His model identifies the skills the manager needs in order to develop greater effectiveness. 

23. Decision-making roles
Interpersonal roles
Information roles
Decision-making roles
7. Entrepreneur
8. Disturbance handler
9. Resource allocator
10. Negotiator
4. Monitor
5. Disseminator
6. Spokesperson
Figurehead
Leader
Liaison

24. INTERPERSONAL ROLES-LEADING
ACTIVITIES
1. Figurehead
Symbolic role, manager is obliged to carry out social, inspirational, legal & ceremonial duties
2. Leader
Manager’s relationship with subordinates, esp. in allocating tasks, hiring, training & motivating staff
3. Liaison
Development of a network of contacts outside the chain of command

25. INFORMATIONAL ROLES- ADMINISTRATING
ACTIVITIES
4. Monitor
Manager collects & sorts out information which is used to build up a general understanding of the organization & its environment as a basis for decision making.
5. Disseminator
To spread the information widely
6. Spokesperson
Managers transmit information to various external groups by acting in a PR capacity, lobbying for the org., informing the public about the org’s performance, plans & policies

26. DECISION ROLES-FIXING
ACTIVITIES
7. Entrepreneur
Managers should be looking continually for problems & opportunities when situations requiring improvement are discovered.
8. Disturbance Handler
A manager has to respond to pressures over which the department has no control e.g. strikes
9. Resource Allocator
Choosing from among competing demands for money, equipment, personnel & mgt time, e.g. approving exp. on a project.
10. Negotiator
Managers take charge when their org. must engage in negotiating with others. In these organizations, the manager participates as figurehead, spokesperson & resource allocator.

27. Managerial authority and responsibility
Is the right of a person to ask someone else to do something & expect it to be done.
It is another word for legitimate power
Fayol’s definition of authority is: “the right to give orders & the power to exact obedience”
It is the right that an individual has to require certain actions of others, i.e, it is the right to use power.

28. AUTHORITY It can arise from any of the 3 main sources:
FORMAL: where the org. bestows the authority upon the individual by means of their job title – goes with the job.
TECHNICAL: where the authority arises due to personal skills/special knowledge/training – goes with the skill/knowledge.
PERSONAL/ INFORMAL: not recognised by any org. chart. It exists because the person is accepted, respected, & popular.

29. AUTHORITY
When analysing the types of authority which a manager/department may have, the following terms are often used:
Line Authority
Staff Authority
Functional Authority

30. LINE AUTHORITY Is the authority a manager has over a subordinate.
Line of authority & responsibility are Direct & Vertical.
Rigid relationship between superior & subordinate throughout the organisation.

31. STAFF AUTHORITY
Authority one manager/department may have in giving specialist advice to another manager/ department, over which there is no line authority.
It does not entail the right to make/influence decisions in the advise department.
E.g. HR dept advising the accounts manager on interviewing techniques

32. FUNCTIONAL AUTHORITY
A hybrid of line and staff 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/procedures of another department
E.g. finance manager has authority to require timely budgetary control reports from other line/departmental managers

33. RESPONSIBILITY
Responsibility is the obligation a person has to fulfill a task, which he has been given.
Responsible: ‘liable to be called to account, answerable’
Because responsibility is an obligation owed, it cannot be delegated.
No superior can escape responsibility for the activities of subordinates, for it is the superior who had delegated authority & assigned the duties.

34. POWER It is the ability to get things done.
It is a useful concept to explain why different people exert different degrees of influence.
As with leadership or management, power is the relationship between the more and the less powerful.
The exercise of power is a social process.

35. 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 is able to assume power over others through the willingness of those to act as followers.
A manager may have formal authority but having lost the respect of his staff, is unable to exercise power/influence over them.

36. Leaders and power Leadership power refers to the capacity
Power and authority
Leaders and power
Leadership power refers to the capacity
of a leader to influence work actions or
decisions
Because leadership is about the process of influence, we need to examine how leaders acquire power.
Power increases as one moves up the vertical hierarchy but may also increase by moving horizontally toward the power centre of the organisation.
Psychologists French and Raven identify five sources or bases of power:
Coercive power is based upon fear.
Reward power is based upon the ability to control resources others value.
Legitimate power is based upon one’s formal position in the hierarchy.
Expert power is based upon expertise, special skill, or knowledge.
Referent power is based upon identification with one who has desirable personal traits.
Span of control Classical writers refer to the number of subordinates managers can direct efficiently and effectively, usually about six. Contemporary writers advocate wider spans of control over better trained more independent subordinates.
Five Sources of Power
Choose which source of power would have the strongest long term influence. Explain your choice.
Coercive
Reward
Legitimate
Expert
Referent

37. TYPES/BASES OF POWER LEGITIMATE/POSITION POWER
Derived from being in a position of authority within the organisational structure – according to the position they hold within the organisation

38. TYPES/BASES OF POWER REWARD POWER
A person has power over another because they can mediate rewards for them such as promotions, recommendations.
PHYSICAL/COERCIVE POWER
This enables a person to mediate punishment for others: for e.g, to dismiss, suspend, reprimand them, or make them carry out unpleasant tasks.

39. TYPES/BASES OF POWER REFERENT POWER
It is based upon the identification with the person who has the resources or the desire to be like that person.
EXPERT POWER
It is based upon one person perceiving that the other person has expert knowledge of a given subject & is a recognised authority in a given situation.

40. TYPES/BASES OF POWER PERSONAL POWER
A person may be powerful simply by force of personality, which can influence, inspire people.
NEGATIVE POWER
This is the power to disrupt operations, such as strike…

41. Theories of leadership
Trait theories
Action-centred approach (Adair)
Contingency approach (Fiedler)
Transformational leadership (Bennis)
Managing change (Kotter)
Leadership to mobilise (Heifetz)

42. Blake and Mouton, Ashridge
Leadership
Trait Theories – Early studies focused on personality
Contingency Theories – No one leadership style is right for every set of circumstances
Fiedler, Adair
Behavioural Theories – focus on human relationships
Blake and Mouton, Ashridge
Transformational Theories – focus on change management
Bennis , Heifetz

43. Trait theories Leaders are born not made
Lists of leadership qualities include:
Physical traits
Personality traits
Social traits

44. Adair's Action-Centred Leadership Model
Setting objectives
Planning tasks
Allocation of responsibilities
Setting performance standards
Achieving Tasks
Building the Team
Developing Individuals
Coaching
Counselling
Development
Motivation
Communication
Team building
Motivation
Discipline

45. Contingency-based theories
The overall situational leadership approach suggests that the leader must act in a flexible manner to be able to diagnose the leadership style appropriate to the situation, and to be able to apply the appropriate style.
No one right way to lead that fits all situations

46. Fiedler’s Contingency Theory
Two leadership styles were proposed:
Task-oriented (PDMs)
Person-oriented (PCMs)
Whether the person-oriented or task-oriented is expected to be more effective depends on the favourableness of certain factors:
The relationship between the leader and the group (e.g trust, respect, etc.).
The degree to which the tasks performed by the group were structured.
The leader’s position/power.

47. Transformational Leadership (Bennis)
Transactional leaders
View relationship with their followers in terms of a trade: they give followers the rewards they want in return for service, loyalty & compliance.
Transformational leaders
View their role as inspiring and motivating others to work at levels beyond mere compliance. Only transformational leadership is said to be able to change org culture & create a new direction.

48. Transformational Leadership cont.
Bennis identified 5 avenues of change:
Dissent & conflict
Trust & truth
Cliques & cabals
External events
Culture or paradigm shift

49. Managing change
Kotter set out the following change approach to deal with resistance to change:
Participation & involvement
Education & communication
Facilitation & support
Manipulation & co-optation
Negotiation & agreement

50. Leadership to mobilise (Heifetz)
Heifetz argued that the role of leader is to mobilise people to change
Leaders have 2 choices when resolving a situation:
Technical change – the application of current knowledge, skills & tools to resolve a situation
Adaptive change – required when the problem cannot be solved with existing skills and knowledge and requires people to make a shift in their values, expectations, attitudes & habits.

51. Leadership to mobilise cont.
Heifetz suggests 4 principles for adaptive change:
Recognition that change requires an adaptive approach
Adaptive change causes unhappiness in the people being led
Keep focused on the real issue of realising the change
Ensure the people who need to make the change take responsibility & face the reality of doing the work for change themselves.

52. Leadership styles Blake & Mouton
Researched managerial behaviour
2 basic dimensions of leadership:
Concern for production (Task performance)
Concern for people

53. Blake & Mouton’s Managerial Grid

54. Ashridge Management College
Suggest 4 distinctive management styles:
Tells – autocratic dictator
Sells – the persuader
Consults – partial involvement
Joins – the democrat
Strengths and weaknesses of each style

55. Authority and responsibility (French & Raven)
Chapter summary
Authority and responsibility (French & Raven)
Introduction
Leader
Manager
Supervisor
Theories of mgt
Theories of leadership:
Trait theories
Situational approach
Contingency approach (Fiedler)
Transformational leadership (Bennis)
Managing changer (Kotter)
Leadership to mobilise (Heifetz)
Leadership styles
Blake and Mouton
Ashridge
Classical school (Taylor, Fayol)
Human Relations school (Mayo)
Modern writers (Drucker, Mintzberg)