What is an organization?
Organization as a collection of people working together to achieve a common goal. These people are working together to achieve a common purpose; which is usually, the organizations set objectives. Working together, people are able to accomplish tasks that one individual would not have been able to do. Organizations are supposed to have a vision, mission, goals and objectives. They undertake various activities which emanate from goals. Some scholars have asserted that organizations are systems of interdependent human beings. Organizations are supposed to do what an individual human being would not do or achieve alone.
What is management?
According to Peter Drucker (1955), a management guru, management is concerned with a systematic organization of economic resources to make these resources productive. Other definitions look at what management does. Such definitions refer to management as the process of planning, organizing, leading and controlling the efforts of organization members and using all other organizational resources to achieve stated organizational goals (Megginson et al, 1992; Griffin 1996).
Approaches to the management theory: There have been a number of approaches to the theory of management since the 18th century. We will refer to them as: 18th century; the Classical School; Scientific Management; The Human Relations; the Systems Approach; and the Contingency Approach.
Organizational behaviour: To understand organizations and management, we need to understand organizational behaviour (OB) first. This is a multi-disciplinary field which studies the individual, group and organizational processes in order to know the behavior of people in an organizational setting. There are various definitions of the concept. Pheysey et al. (1971) referred to organizational behavior as “the study of structure, functioning and performance of organizations, and the behavior of groups and individuals within them”
Leadership
If you asked a group of top executives in any part of the globe why organizations succeed, you will most likely hear them all say “executive leadership.” Indeed, leadership is the way to success for all organizations – business, politics, sport, and the family. In fact Plato, the philosopher,advised that if you cannot lead and manage your family, you should not aspire to enter politics. We can define leadership as the process of directing and influencing others to achieve group goals. These groups are usually in organizations. Leaders are usually people who have a lot of influence over others. Regarding leadership, we cannot the following:
- A leader influences other people who may be followers ormsubordinates.
- There is unequal distribution of power between the leader and those that are led (the group mates)
- Leadership involves using different types of power to influence the subordinates’ behaviour.
Qualities of leadership
We shall look at the following (Fiedler 1967):
- Has vision and is committed to the purpose or goals of the organization.
- Guiding others through providing a role model and through willingness to serve others first.
- Optimism. Very few pessimist become leaders.
- Dedication of one’s life to serve a cause.
- A clear sense of purpose
- Self-knowledge
- Ability to encourage and nurture those that report to them.
Leadership styles
Tannenbaum and Schmidt (1973) developed a leadership style continuum grouping leaders into three categories. Based on the use of authority, leaders can be referred to as the following:
- Autocratic: A leader who commands and expects compliance without question. Such a leader is dogmatic and is willing and able to give or withhold rewards or administrative punishments.
- Participative (or democratic). A leader who consults with subordinates on the proposed decisions and actions and encourages participation from those subordinates.
- Free Rein (laissez-faire). Leaders who use very little if at all of their power. They give their subordinates a high level of independence in their work.
Leadership styles
- Democratic Leadership
- Autocratic Leadership
- Laissez-Faire Leadership
- Strategic Leadership
- Transformational Leadership
- Transactional Leadership
- Coaching Leadership
- Bureaucratic Leadership
- Visionary Leadership
- Pace setting Leadership
- Situational Leadership
McGregor’s Theory X and theory Y
Theory X managers believe their employees lack creativity and only work for a paycheck. Theory Y is a participative management style where managers believe employees want to work and make decisions with less supervision. Theory Y managers believe employees enjoy work and want to see the organization succeed.
Management Process
Henri Fayol (1903) gave managers five functions:
- Planning: setting organizational objectives & methods of achieving them.
- Organizing: establish the structure of tasks to be performed to realize the set goals and objectives.
- Commanding: give instructions to the subordinates to undertake tasks
- Coordinating: to harmonize the activities of individuals and groups within the organization.
- Controlling: monitoring which is continuous during implementation and evaluation (which is an audit) of the activities. Measuring helps an organization to correct activities and ensure that work is done according to plans.
An effective manager must:
- Identify symptoms causing problems within an organization
- Analyze or diagnose the causes of the situation
- Propose how it might be solved
- Suggest treatment and monitor progress
- Develop strategies to prevent further problems.
- Control and evaluate performance of his/her staff
7-S Framework developed by McKinsey
1. Strategy
The strategy element is a detailed plan that organizations create for successful change implementation and to gain a competitive edge. A well-crafted strategy is aligned with the other six elements of the 7-S model and is reinforced by a strong vision, mission, and values.
2. Structure
Structure or organizational structure refers to a clear chain of command to avoid chaos & confusion. Structure is a simple yet crucial element as it creates a sense of employee accountability within the organization.
3. Systems
Systems refer to the business processes and operational procedures employed to complete a business’s routine activities. An organization’s SOPs consist of such practices and workflows that directly impact productivity and decision-making.
4. Shared Values
These are the core values governing an organization’s health. While implementing a change, organizations expect a behavioral modification from their employees, which is only possible in a strong change culture and organizational values.
5. Style
This element refers to the management style prevalent in a company that decides the level of employee productivity and satisfaction.
6. Staff
This element represents the talent pool required, the size of the existing workforce, and their motivations. It also considers how they are trained and rewarded within the organization.
7. Skills
Skills refer to the abilities of employees to complete tasks. A study suggests that 45% of respondents reported that a skill gap caused a loss in productivity. Skills gaps overburden experienced employees who have to pick up the slack for their coworkers’ inexperience. It’s essential to identify the skill gaps and create relevant employee training programs to bridge these gaps.
Key issues in strategy formulation
Leading & influencing people in an organization
- Managing upwards (or managing the boss): First and middle level managers need to
understand how to communicate with their senior managers in order to get things done. They
need to understand what motivates, or frustrate their managers. They also need a through
understanding of their working style. When is it right to approach? In all cases, supervisees
need to communicate with their managers. Do let your manager understand the challenges you
are facing and the needed support to achieve the work targets. - Managing the team: A manager has to influence his/her team members to improve on their
attitudes, behaviors and performance in order to achieve improvements in readiness. Managers
have to provide the focus for the work, and through teamwork, drive the work forward. - Managing stakeholders: Managers have to create a sense of ownership in your stakeholders.
When stakeholders are handled well – with effective communications – they can promote the
name or brand of the organization. Revisit stakeholder mapping.
Determinants of job satisfaction
