Copperbelt University

Directorate of Distance Education and Open Learning

Master in Business Administration (Finance)

GBS 550: Management Theory and Practice

Assignment #2

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Written by

Ignatius Kasela Zulu

SIN: 20900369

Lecturer: Dr Monica Muiru

16th March 202l

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 MODULE FOUR

This Module of the book examines some leading concepts in the related fields of leadership

and group behaviour. Chapter 7 describes a number of different ways of looking at leadership,

discusses the tensions between concern for the task and concern for people, and summarises a

number of important theories of leaders hip. Chapter 8 looks at crucial aspects of the

workplace behaviour of people in groups, and examines some features of the working of

groups, including the effect of competition and the task of team building.

CHAPTER SEVEN: LEADERSHIP — THEORY AND PRACTICE

 The crux of every management job lies in the job-holder's capacity to obtain the

commitment of people to the objectives of the organisation,.

 The key leaders hip variables.

LEADER TASK/ GOALS

K Skills Group goals

R Principles D Knowledge D 1ndividual goa1s/ targets

Personality

GROUP MEMBERS SITUATION/

ENVIRONMENT

K Skills Internal dynamics of group

D Needs Cultural issues

K Motivation External pressures

Resources available
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Theories of leadership

 Ideas about leadership in management roles range from the ‘ideal’ approaches of

scientific ma nagement, the human relations and social psychological schools, and

Covey's principle- centred leadership to the pragmatic approaches of the contingency

theorists.

 The leading theories of leadership that have been proposed over the past fifty years

are generally classified under ‘trait theories’, ‘style theories’ and ‘contingency theories’.

 Trait Theories

 The debate was usualy led by practising managers who where strong characters in their

own right.

 Traits which do appear more frequently are; intelligence, energy and resource- fulness.

 Style Theories

 An interest in leadership as an aspect of behaviour at work, rather than of personal

characteristics.

 These have tended to be expressed in terms of authoritarian versus democratic sty

les, or people-orientation versus task orientation.

 Contingency Approaches

 Functional, or Action-centred Leadership.

 It is based on the theory that leadership is more a question of appropriate behavior

than of personality or of being in the right place at the right time.

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A comparison between the various leadership theories is shown below, which concludes this chapter.

Source Characteristics Dimensions

Title

D McGregor Theory X/ Theory Authoritarian versus

Y democratic ’either / or’

R Likert Systems 1-4 authoritarian versus ’either / or’

democratic

Tannenbaum & Leadership authoritarian versus ’either / or’

Schmidt Continuum democratic

Michigan Studies - employee-centred versus 'either/or'

production-centred

Ohio Studies - ‘consideration and

‘initiating structure’ both

Manageria1 Grid ‘concern for people’ and both

‘concern for production’

Blake & Mouton

W Reddin 3-D Theory relationships and task all three

orientations; effectiveness

Harvard Studies Task leaders vs socio ’either / or’

emotional leaders

J Adair Functional Theory tas1‹, group and individual Multiple

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 needs; adaptive behaviour

F E Fiedler Theory of favourableness of r he Multiple

Leadership situation’ ; adaptive

Effectiveness behaviour

S. Covey Principle centered adoption of key moral

principles Multiple

Refferences:

1. Cole, G A. Management Theory and Practice. London: Thomson Learning, 2004

CHAPTER 8: GROUPS AND GROUP BEHAVIOUR 6

Introduction:

 The study of groups in work situations has been an important activity of behavioural

scientists ever since the pioneering work of the Hawthorne Researchers over fifty

years ago.

 The outcome of numerous studies into different aspects of the behaviour of groups

is a considerable store of useful and practicable knowledge about the working of

groups.

 Typical areas of research have included the study of group effectiveness, inter-

group competition, and group cohesiveness.

The most important factors in the behaviour of groups are as indicated

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Refferences:

1. Cole, G A. Management Theory and Practice. London: Thomson Learning, 2004

MODULE FIVE 8
CHAPTER 10: CONTINGENCY APPROACHES TO MANAGEMENT

 A contingency approach builds on the diagnostic qualities of the systems

approach in order to determine the most appropriate organisational design

and management style for a given set of circumstances.

 Essentially the contingency approach suggests that issues of design and

style depend on choosing what is the best combination, in the light of

prevailing (or forecast) conditions, of the following variables:

(a) the external environment,

(b) technological factors, and

(c) human skills and motivation.

 Joan Woodward is noted for her important studies into he effects of

technology on structure and performance;

 Burns and Stalker introduced the concept of mechanistic and organic types

of structure and discussed them in relation to the environment;

 Aston group (Pugh, Hickson er al.) have made some interesting studies into

several of the technology-structure variables in organisations.

CHAPTER 11: MODERN APPROACHES TO MANAGEMENT

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The Background to Modern Management

 The strategic importance of management to national economies has grown

considerably over the last quarter of a century.

 This is largely on account of the

 increasing demands for higher living standards among national

populations,

 together with a desire amongst developing economies to trade on

more equal terms with their well-established counter- parts in

Europe, Japan and the North American continent.

 The principal factors involved in these changes include.

 The rapid advance of micro-electronic technology.

 The increased ability of firms to compete with each other due to the

benefits of new technology and a sufficiency of trained labour.

 The entry into world markers of new low-cost manufacturing firms

from Asian countries.

 The increased expectations of customers for quality and variety in

consumer goods and Personal services.

 The massive improvements in world-wide communication

systems.

 The greater inter-connectedness of the world's peoples due to

increased trade and cultural contact.

Modern Management Theorists

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  Most of the contributors to the theory and practice of management

nowadays are academics with strong research backgrounds, and most are

from the USA.

 There are few who can be compared to Henri Fayol and F.W.Taylor, in

the early part of the century, who were genuinely practising managers first

and management thinkers second.

Refferences:

1. Cole, G A. Management Theory and Practice. London: Thomson Learning, 2004

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 MODULE SIX

CHAPTER 16: STRATEGIC ASPECTS OF MANAGEMENT

 The strategic perspective of management is the prime responsibility of the

board of the company, who are accountable for securing the future of the

enterprise, as well as enabling the business to thrive.

 Strategic planning

 Prime accountability: company board/ top management.

 Prime focus: company mission, long-term goals, effectiveness.

 Major concerns: competitive position, company values, business

success (growth in assets, turnover and profits), establishing

appropriate financial controls.

 Time scale: up to 10 years.

 Operational planning

 Prime accountability: senior/ middle management.

 Prime focus: achieving targets, optimising resources, efficiency. Major

concerns: budgets, sales/ production targets, harnessing technology,

human resource management, performance measurement, quality

issues, feedback.

 Time scale: 1-2 years

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Theories about Strategy

 Many of the issues deal with the problem of reconciling the conflicting forces

present in the formulation and implementation of strategy.

 Others focus on developing corporate goals and objectives, or how to

devise a viable internal structure.

 Yet others focus on the demands of the external world, and their

implication for the business.

 Ultimately, the challenge of strategic management is to orchestrate all these

diverse elements into an overall plan for the success of the enterprise.

Refferences:

1. Cole, G A. Management Theory and Practice. London: Thomson Learning, 2004

CHAPTER 19: DECISION MAKING IN ORGANIZATIONS

 In this chapter we are concerned with managerial decision-making.

 That is to say we are concerned with behaviour that is designed to cause things to

happen, or not to happen, as the case may be.

 Whilst it may be a flecked by feelings and interpersonal relationships, managerial

decision-making tends to be rational in its approach.

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  Considerable time and effort may be spent in assessing problems, developing alternative

solutions and evaluating their consequences before arriving at an agreed decision.

 Certain types of decision-making can be made easier and faster by means of special

techniques, some of which are referred to briefly later in the chapter.

Decision Processes: A Theoretical Model

 An analysis of the way decisions are made in organizations results in the sequence

of events shown.

 It commences by seeking to ask the right questions, continues by encouraging creative

answers, and concludes by ensuring that the chosen solution is monitored and evaluated.

Types of Decisions

 Decisions can range from those of a vital, once-for-all nature to those of a routine and

relatively trivial nature.

 Strategic Decisions. These are the basic, long-term decisions which settle the organization’s

relationship with its environment, notably in terms of its product or service and its

markets.

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  Operating Decisions. These are the short-term decisions which settle issues such as output

levels, pricing and inventory levels.

 Administrative Decisions. These decisions arise I om, and are subject to, the conflicting

demands of strategic and operational problems.

 A final distinction that can be made between types of decision concerns so-called

programmable and non-programmable decisions.

Decision-making Tools

 One of the most significant sets of too1s now available to decision-makers is that of OR

(Operational Research .

 This encompasses a collection of techniques which apply scientific methods to complex

problems in organizations.

 In particular, OR involves the use of scientific models, or conceptual frameworks, to

represent real situations.

References:

1. Ansoff, H.I. (1965), Corporate Strateg y (revised 1987), McCra w-Hill.

2. Cole, G A. Management Theory and Practice. London: Thomson Learning, 2004

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CHAPTER 22: ORGANISATION STRUCTURES

 This chapter summarises the issues of structure facing modern organisations, and identifies

the most important practical options available to senior management.

 An organisation structure, according to Mintzberg (1979) is:

 ‘the sum total of the ways in which it divides its labour into distinct tasks and then

achieves coordination between them.’

 Most organisations have to face up to a number of crucial questions about the kind of

structure that will best sustain the success of the enterprise.

 to what ex rent shouId we encourage the specialisation of roles ?

 what degree of standardisation should be imposed on behaviour and

methods, or, to put it another way, what degree of discretion empowerment) should

be allowed to individual job-holders ?

 how much formality should be encouraged?

 how many levels of authority should we establish?

 to what extent shouId decision-making be centralised or decentralised ?

 Four structures are imaginatively described as follows:

 the web structure, where power is centralized in the hands of a few key

individuals 1s, and which is suited to small organisations.

 the Greek temple, which is based on functional specialisms and defined roles,

and is generally seen as a bureaucracy

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  the net, Which is essentially a matrix organisation, in which project teams are

coordinated by line and function at units, a nd where the emphasis is on tne

task.

 the cluster, or galaxy, which is constructed around relatively independent

and self- supporting individuals, such as in a professional practice of some

kind t doctors, archi- tects, accountants etc).

Common Forms of Organisation Structure

There are a number of alternative ways of deploying the intangible webs of relationships that make

up an organisation srructure. Five of the most common forms of structures that have been ‘desig

ned’ are as for lows:

 Functional organisation — based on groupings of a11 the major business

functions, eg production, ma r keting, dina nce, per so nice1.

 Product-based organisation — based on individual products, or product ranges, where

each grouping carries its own functional specialisms.

 Geographical organisation — centred around appropriate geographical

features, eg regions, na tio ns, su bcontinenrs. 17

 o Divisionalised structure — usua fly based on procl ucts, or geogra p hy, or box la, a

nd witn certa in key functions such as plan ning and finance reserved for headq

u arts rs.

 Matrix structures — based on a combination of functional organisation with

project- based structures, and thereby combining vertical and latera1 lines of

communication a nd a uthority.

 Authority is the legitimate power to act in certain wayys;

 Responsibility is t he o bligation to perform certain functions on beha If of the

organisation;

 Power. Both of the above concepts can be distinguished from power, which is the

a b ilitv to inn p lemen t actions, regardless of co nsid e ratio ns of for ma1 a uthor

ity or r espons i bi1 it y.

References

1. Cole, G A. Management Theory and Practice. London: Thomson Learning, 2004

2. M inrzberg, H. 1979), The Strtictti ruin o[ O r¿anisatioiis — a Svnthes is o[ the Researcl›, Prentice-

Hal 1. Cole, G.A. (I 99J ), O rgaiiisation‹il Behavion r, DP Publications.

3. Hand), C.( 19 9 3 , Udders tandtng Orguriisations (4th edition), Penguin Business.

4. Clin tz her g, H. ( 1983 , Strticttire in Fives.- Designing E[[ectiue O rganisatioiis, Pren tice-Hall.

Pugh, D. Hickson, D. ( 1976), O rgpriisaliozin/ Strtrcf«re in its Context, Gower.

5. Woodward, j. 1963 ), Urdu strinl Organisaiion - Theory and P rnctice, OUP.

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CHAPTER 25: IMPLEMENTING CHANGE: ORGANISATION DEVELOPMENT

Several important points can be made about the deftnition.

 1stly, OD is an organisation- wide process.

 2ndly', it utilizes the techniques and approaches of the behavioral sciences, i.e.

Psychology, social psychology, and sociology’, insofar as they relate to the study of

people at work in a n organisations.

 Thirdly , OD involves the inter mention of an external third party in the shape of a

‘Change agent’ trained and experienced in behavioral science applications in

the work situation.

OD Programmes: The Key Stages

 There is no one best way of introducing and designing an OD programme.

 Nevertheless, cert ain patterns of treatment have developed over recent years, and

the following sequence of events wouId not be un typical:

 Preliminary Stage. The senior management team discuss the scope and implications of OD

w ith the external third part} (the ‘change agent’}.

 Analysis and Diagnosis. This is the stage where the third party usually takes the initiative by

designing appropriate methods for obtaining relevant information (eg inter views, surveys

etc) and by proposing a strategy for putting these into operation with the fu11 backing of

the management team.

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  The third stage, is Agreement about Aims of the Programme. The management team, in

close collaboration with the third party, agree whatt are to be the a inns a nd o6jectives of the

programme.

 Action planning. The organization’s problems have been analysed, a diagnosis of the overall

situation has been ma de, agreement has been reached about the aims and objectives of

the exercise.

 Evaluation and Review. Once the plans have been put into action, it is etremely important

that they should be monitored at frequent interva1s by the management teams and their third

party colleague.

Major Approaches in Organisation Development

 Most of the activities in a programme can be classified in three ways:

 Those aimed at changing people’s behaviour

 Those aimed at changing organisation structures

 Those aimed at problem-analysis.

Difficulties in implementing change

 In case those pursuing a change programme such as Organisation

Development begin to see it primarily in mechanistic ‘what to do’ terms,

 Kotter ( 1996) 1, reminds them that it is the manner i n which the programme is

d riven that is the more important.

Reference

1. Kotter, J.P.(1996 t, Leading Change, Ha rvard Business School Press.

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2. Cole, G A. Management Theory and Practice. London: Thomson Learning, 2004

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