Lecture 1 - Organisational Management And Leadership Flashcards
What is entrepreneurship?
The skills and characteristics of a successful entrepreneur, the attractions of and barriers to entrepreneurship and the factors influencing creativity among entrepreneurs.
What is innovation?
An organisation’s process for introducing new ideas, workflows, methodologies, services or products. Business innovation should improve on existing products, services or processes, or solve a problem, or reach new customers.
Main Responsibilities of a Manager in a business?
- Setting goals for area of responsibility
- Forecasting and planning business activities.
- Commanding staff within their organisation.
- Organising staff and activities within their responsibility.
- Co-ordinating activities within area of responsibility.
- Communicating clear goals and objectivities; strategic, tactical and operational.
- Motivating staff
- Controlling the activities of responsibility area, mainly financial control.
What are the 6 Models of Management?
- Rational Goal Model
- Internal Process Model
- Human Relations Model
- Open Systems Model
- Responsive Management Models
- Fashion, Fads and Gurus
Rational Goal Model
- Management model by Frederick Taylor and is also known as scientific management.
- Scientific methods are used by managers to find the best performance by staff selected by:
- Set Goals
- Accelerate productivity
- Become more profitable
- Use technology
- Use financial incentives and efficiency studies
Internal Process Model
- The internal process model introduced by Henri Fayol in the first quarter of twentieth century stresses the importance of managerial internal control.
- Fayol identified core management tasks as:
- Planning
- Organising
- Commanding
- Coordinating
- Controlling
Human Relations Model
- Elton Mayo popularised in the second quarter of the twentieth century, stresses the importance of the managerial internal flexibility that results from the exercise of facilitator and mentor role responsibilities in order to improve human relations at work and enhance extra organisational stakeholder responsiveness.
- Was an attempt to understand management in terms of forging human relationships.
Open Systems Model
- introduced by Paul Lawrence and Jay Lorsch in the third quarter of the twentieth century stresses the importance of the managerial external flexibility that results from exercising the innovator and broker role responsibilities in order to adapt continually to changing environmental forces.
- refers simply to the concept that organisations are strongly influenced by their environment. The environment consists of other organisations that exert various forces of an economic, political, or social nature. The environment also provides key resources that sustain the organisation and lead to change and survival.
Responsive Management Models
In today’s ever-changing business environment, there isn’t one management style or technique that works all the time – what’s required is a responsive approach to stay ahead.
Managers need to be flexible and adaptable to respond to a fast evolving business world – only highly responsive organisations flourished during the Covid19 pandemic adapting and utilising the latest technologies.
Fashion, Fads and Gurus
- Since the 1980s, popular management thinkers like Tom Peters and Peter Senge, or management gurus, have promoted a number of performance improvement programs or management fashions that have greatly influenced Managers in the everyday conduct of organisational life.
- Managers and other familiar cast of characters, a clear and well-developed plot line and a meaningful setting. When read or listen to Managers tend to nod and think ‘yes I can relate to that I know what he means’ and try to adopt these new techniques or pay consultants thousands to help them embed these concepts into their organisation.
- Within a few years some of these concepts could be out of step with the modern business world and out of fashion.
Common criticism of the theories
One of the major criticisms faced by these theories were that they gave little control to the employees on their working lives, it treated people like infants rather than competent human being.
Managers role
Manager Role requires good relationships with people associated with the organisations which involved three broad categories of performance
The figurehead
Performs ceremonial duties. Examples: greeting visiting dignitaries, attending an employee’s wedding, taking an important customer to lunch.
The liaison
Making contacts outside the vertical chain of command including peers in other companies or departments, and government and trade organisation representatives.
The leader
Responsibility for the work of subordinates, motivating and encouraging employees, exercising their formal authority.
Management vs leadership
Management: Is a defined position of responsibility within the organisation, a job role to be performed with established set of responsibilities to the organisation and their staff.
Leadership: Being able and prepared to inspire others. Effective leadership is based upon ideas—both original and borrowed—that are effectively communicated to others in a way that engages them enough to act as the leader wants them to act.
Leaders role
- A leader inspires morale, motivation and commitment from employees.
- A leader is responsible for ensuring that employees are motivated by, and committed to, the success of the organisation.
- This includes raising and maintaining morale by ensuring that each employee understands the vital role they play in the business and that they are valued for their contribution.
9 Business leader qualities
- Visions
- Courage
- Integrity
- Humility
- Strategic planning
- Focus
- Humiliation
- Cooperation
- Humiliation
Transactional leadership
Transactional leadership, also known as managerial leadership, focuses on the role of supervision, organisation, and group performance. Leaders who implement this style focus on specific tasks and use rewards and punishments to motivate followers.
Transformational leadership
Transformational leadership is defined as a leadership approach that causes change in individuals and social systems. In its ideal form, it creates valuable and positive change in the followers with the end goal of developing followers into leaders. Followers of a transformational leader respond by feeling trust, admiration, loyalty, and respect for the leader and are more willing to work harder than originally expected
Legitimate power
is the type of power a manager, executive or another leading official in a company has due to the status of their position
Refferent power
Leaders who influence others through referent power have gained the respect and admiration of the people around them. Some place Steve Jobs in this category
Information power
One gains information power when they know something other people don’t. Information power, however, is short-term and does little to build credibility. Once you release the information, you are no longer needed. So what’s the point? Information power is best used to build influence among followers. Even when you have no legitimate power, you can use information power.
Expert power
A leader who has the ability to reward an employee or team member for compliance has reward power. Rewards work best when they are appealing to all participants, for example, a raise or bonus, a promotion, time off or other perks. Typically this positive reinforcement is given for meeting a pre-defined objective.
Corrective power
Coercion uses the power of fear — fear of losing one’s job or missing out on a raise or bonus. The very idea of coercion is anathema to many leaders. But coercive power can be both direct and indirect. Direct coercive power is explicit and deliberate. Indirect coercive power, however, is assumed. Employees may believe they will be punished, for example by having a bonus withheld, if they report unsafe conditions in the workplace.
Charismatic power
Similarly, charismatic leaders have the ability to influence others. While they may or may not have any actual authority, charismatic leaders usually have a natural ability to persuade or inspire. Charisma relies on charm and personal qualities that others find attractive. Charismatic leaders exude personal warmth and a zest for life that is contagious.
Moral power
A leader who has moral power is one that inspires action based on a strongly held set of values and beliefs. Moral leaders not only talk the talk, they also walk the walk. When you are a moral leader, you strive to do what you say you will do. They are strongly principled and hold themselves to a high standard. They want others to follow their example and so they are willing to show them the way. However, leadership is not about them. It’s about being in service to others.
