4. Key Concepts In Management

Question 1

What is management?

Answer 1

The process of getting activities completed efficiently and effectively with and through other people

Question 2

What are Mintzberg’s three roles of a manager’s activities?

Answer 2

1. Interpersonal: A figurehead; leading and liaising
2. Informational: Monitoring and disseminating information, acting as a spokesperson
3. Decisional: Making strategic decisions about the organisation’s future; initiating projects, responding to disturbances, negotiating with stakeholders and allocating resources

Question 3

What is the classical school of management?

Answer 3

Emphasis on the importance of rules, specialisation, hierarchies and obedience (likely stemming from the military)

Three theories: Fayol, Taylor and Weber

Question 4

What are Fayol’s five functions of management that apply to any organisation?

Answer 4

1. Planning - determining objectives, strategy, policies, programmes and procedures
2. Organising - establish a structure of tasks that need to be performed; grouping these tasks; allocating tasks; delegating authority; providing systems of information and communication for coordination
3. Commanding - giving instructions
4. Coordinating - harmonising the goals and activities; reconciling differences in approach
5. Controlling - measuring and correcting activities; ensure performance is in accordance with plans and any deviations are identified and corrected

Omissions: motivating and communicating

Question 5

What are Fayol’s 14 general principles of management? (DUSTIERMUDCAPS)

Answer 5

Division of labour
Unity of command
Scholar chain
Teamwork
Initiative
Equity
Remuneration
Material and social order
Unity of direction
Discipline
Central control
Authority and responsibility
Personal interests
Stability of tenure

Question 6

What are Taylor’s principles of scientific management?

Answer 6

1. Development of a ‘true science of work’ - accurately calculate a ‘fair day’s work’
2. Scientific selection and development of workers - select most suitable workers using an objectively measurable criteria
3. Combining the science of work with the scientifically selected worker
4. Constant and intimate co-operation between management and workers

Question 7

What are Taylor’s techniques of scientific management?

Answer 7

1. Work study techniques to analyse tasks and establish efficient methods (no variation permitted)
2. Planing and doing are separate (manager plans, worker does)
3. Jobs were micro-designed to a smaller, simpler task that formed a whole specialised job for an individual
4. Workers were supposed to be paid incentives - pay assumed to be the only motivating force

Question 8

What are Weber’s characteristics of bureaucracy?

Answer 8

• Hierarchy of role: an organisation exists before it is even filled with people
• Specialisation and training: high degree of specialisation of labour
• Professional nature of employment - full-time employees only, promote according to seniority and achievement
• Impersonal nature: act according to formal, impersonal procedures
• Rationality: authority and structure is formally defined. Duties are established and measures of performance are set
• Uniformity in the performance of tasks: procedures ensure that they are executed in the same way
• Technical competence: all officials are technically competent and expertise is rarely questioned
• Stability: the organisation rarely changes in response to environmental pressures

Question 9

What are the weaknesses of bureaucracy?

Answer 9

1. Slow to respond to change
2. Slow to communicate (due to segregation of officials)
3. No involvement of staff in decision making
4. Innovation stifled by ‘jobsworth’ attitude
5. Failure to consider important informal relationships

Question 10

What was Mayo’s theory of the Hawthorn Studies?

Answer 10

Mayo identified people are motivated at work by a variety of psychosocial needs, including social or ‘belonging’ needs
- Productivity and morale can be influenced by communications that take place between workers and management. Good relationships improve motivation
- People value being part of a group (social creatures). Group work helps increase motivation but also build trust
- People like encouragement and to receive support from management

Question 11

What are Herzberg’s Motivator and Hygiene factors?

Answer 11

Hygiene (or maintenance) factors cannot actively satisfy. They can only prevent dissatisfaction.
- Company policy and administration
- Salary
- Quality of supervision
- Interpersonal relations
- Working conditions
- Job security

Motivational factors can actively motivate but only if hygiene factors have already been met.
- Status
- Advancement
- Recognition
- Responsibility
- Challenging work
- Achievement

Question 12

What is Maslows Hierarchy of Needs?

Answer 12

A hierarchy of needs that an individual will be motivated to satisfy, progressing towards higher-order satisfactions.

5. Basic / psychological needs: basic pay; safe working environment
6. Safety needs: job security; respect from others
7. Social needs: workplace friendships
8. Esteem needs: job recognition, status, respect from others
9. Self-actualisation: interesting and challenging work; opportunities for progression; achieve work objectives

Question 13

What are the limitations of the Hierarchy of Needs?

Answer 13

1. People have multiple needs
2. The same need may cause different behaviour in different individuals
3. Little evidence to support the theory
4. Reflects mainly UK and US cultural values, may not transfer to other countries

Question 14

What is the systems approach (systems theory)?

Answer 14

Sees organisations more dynamically in terms of systems. Rather than focusing on administrative structures, this approach views organisations as an open system connected to and interacting with its environment.

Takes inputs from its environment (labour, finance, materials), through various organisational systems and processes (IT systems, social systems, etc.), converts them into outputs (products / services, information, etc.)

Question 15

What is Trist and Bamforth’s socio-technical system theory?

Answer 15

Importance of balancing the social and technical requirements of a job.

The workplace is strongly influenced by both social and technical factors.

The socio-technical system has at least two major sub-components:
1. Technology (including task organisation and methods)
2. People (and their social arrangements)
Organisations should aim to find a ‘fit’ that will maximise efficiency (through technology) whilst ensuring satisfaction and commitment (through social and psychological needs of workers)

Question 16

What is contingency theory?

Answer 16

In 1960s, theorists realised that there was no one best way to manage, and not one single theory would apply to all situations.

Contingency theory is the notion that management style is dependent on a range of variables

Question 17

What is Burns and Stalker’s Mechanistic vs Organic theory?

Answer 17

The level of change is the environment is a contingent variable.
Mechanistic organisations: stable, efficient and suitable for slow-changing operating environments
Organic organisations: flexible, adaptive, and suitable for fast changing or dynamic operating environments

(M) High degree of task specialisation; (O) skills, experience and specialist knowledge are valued
(M) Clearly defined responsibilities and authorities; (O) extensive communication networks to integrate efforts
(M) Each management level responsible for coordination and communication; (O) management based on consultation and involvement in problem-solving
(M) Selective release of top-level information; (O) extensive communication networks
(M) Emphasis on loyalty and obedience; (O) commitment to task achievement exceeds need for obedience
(M) Employees recruited locally; (O) recruited from a variety of sources

Question 18

What is Woodward’s theory of Contingency?

Answer 18

Organisational structure was dependent on its technology (ways of working).

Organisations performed best when structured to fit their own particular way of working.

Three types of organisations based on ways of working:
1. Unit / Small batch production: small groups of highly skilled workers; short hierarchies; medium to high job satisfaction
2. Large batch / mass production: large number of semi-skilled operatives; supervisor responsible for a lot of workers; low job satisfaction
3. Process production: skilled operatives; valued technical expertise; control through committees (not direct instruction); high job satisfaction

Structure, people, technology and nature of task all impact each other and need to be managed to optimise performance.

Question 19

What is Handy’s theory of the Shamrock organisation?

Answer 19

Organisations organise themselves as a ‘shamrock’ with three key elements:
1. The professional core: permanent employees, distinct knowledge and competencies, qualified professionals, focused on their work and career.
2. Flexible labour force: temporary or part time workers brought in when needed, committed to the immediate job at hand, important for the firm to not treat them casually
3. Contractual fringe: external providers, non-core activities, committed is achieved by achieving results in return for fees

Question 20

What is Drucker’s theory of Management by Objectives (MbO)?

Answer 20

Drucker argued that performance could be improved by aligning personal and departmental objectives with business objectives. These related to:

• Profitability
• Innovation
• Market standing
• Productivity
• Financial and physical resources
• Management performance and staff development
• Worker performance
• Public responsibility

Question 21

What is the Management by Objectives process?

Answer 21

1. Set objectives: SMART, communicate to others in the organisation
2. Organise the work: divide into manageable activities, integrated into a formal structure, select people for the jobs
3. Motivate employees and communicate with them
4. Measurement: establish yardsticks, analyse actual performance, communicate findings and establish the significance to superiors and subordinates

Question 22

What is the importance of change management skills?

Answer 22

Emergence of ecosystems is forcing organisations to move away from adversarial relationships and embrace new ways of working. Expectations for managers to develop and refine their change management skills towards a collaborative and cooperative approach.

Managers need to be comfortable working with, and sharing work practices with, a wider range of stakeholders (participants) and encourage staff to do the same

Question 23

What is talent management?

Answer 23

Concerned with initially attracting and subsequently identifying, developing and retaining individuals within the organisation who are considered to be important to the future success of the organisation.

Talent management activities may include:
- Coaching talented individuals
- Attending networking events
- Facilitating communication and involvement between talented individuals and senior management
- Permitting talented individuals to have greater levels of communication and involvement

Question 24

What is power and what are its sources?

Answer 24

Power is the ability to take action. French and Raven identified five sources of power in an organisational context:

1. Reward: the ability to influence the distribution of rewards
2. Coercive: threat of punishment to force compliance
3. Referent: exerted by charisma or inspirational people
4. Expert: through knowledge or expertise
5. Legitimate: derived from the position held - aka authority

The degree that people exercise, and the types of power they are able to exploit, differs depending on the position in the hierarchy.

Question 25

What is authority?

Answer 25

The right to do something, or to ask someone else to do it and expect it to be done.

Another word for position or legitimate power.

Authority generally flows downwards through the line of chain of command that is pat of the formal organisational structure.

Question 26

What are the different types of authority?

Answer 26

1. Charismatic - personality of the leader and ability to inspire
2. Traditional - importance of tradition and the status it confers
3. Rational-legal - accepted normative rules; vested in the position a person holds rather than the individual

Rational-legal can be broken down further into:
1. Line authority - line manager over a subordinate (aka control authority)
2. Staff authority - manager gives advice to colleagues in other departments (aka advisory authority)
3. Functional authority - hybrid of line and staff, where manager is authorised to control functions in other departments
4. Service authority - manager or department provide a service which the receiving department must accept

Question 27

What is the difference between responsibility and accountability?

Answer 27

Responsibility is the obligation that a person has to fulfil a task that they have been given.

Accountability is the person’s liability to be called to account for the fulfilment of tasks that they have been given.

Question 28

What is delegation, and what are the methods of delegation?

Answer 28

The process whereby a superior gives to a subordinate part of their own authority to make decisions.

Methods:
1. Abdication: leaving issues with no formal delegation
2. Custom and practice: building delegation into the fabric of the organisation
3. Explanation: delegator briefs the subordinate on what needs to be done
4. Consultation: discussion before delegating (effective)

Question 29

What are the benefits of delegation?

Answer 29

1. Physical and mental limitations to the workload of any individual or group in authority
2. Managers are freed up to concentrate on higher-level tasks
3. Increasing size and complexity calls for specialisation
4. Contributes to job satisfaction and development
5. Shortens the chain of decision-making

Question 30

What is the process of delegation?

Answer 30

1. Specify performance (goals and standards) expected of subordinate - keep in mind level of expertise
2. Formally assign tasks to subordinate who should formally agree
3. Allocate resources and authority to enable subordinate to complete the task
4. Back off and allow the subordinate to perform the tasks
5. Maintain contact and review progress

Question 31

What is empowerment?

Answer 31

The term for making workers responsible for achieving, and even setting, work targets, with the freedom to make decisions about how they are achieved.

This goes well with:
- Delayering
- Flexibility
- New technology