Management and Leadership(IBE) Flashcards
Prelim
Explain the ways in which factors influence contingency leadership.
- a charismatic leader - may use a more participative/persuasive style to
ensure employees achieve their targets - larger teams - may need more decentralised/democratic leadership to
organise sub-groups
ENVIRONMENT - autocratic approach is appropriate in a crisis - where there is no time for
consultation - where the manager is well established and respected and knows work will
get done - a laissez faire approach may be suited to teams where all
members are working to a common goal - employees undertaking creative work - require a free reign to stop stifling
staff creativity - where conflict exists in a team - then an autocratic approach can minimise
arguments as direction is clear with no room for discussion - manufacturing and factory work - will be suited to elements of
autocratic/scientific leadership where tasks are routine and repetitive and
productivity is the driving force - where piece rate payment used - a high level of supervision is required to
ensure products are meeting the correct standard of quality, a more
classical leadership approach is appropriate - service sector organisations - use a more decentralised approach to work
planning to empower employees and delegate decision making
Discuss the findings of Elton Mayo’s Hawthorne Experiments.
Elton Mayo focused on importance of social factors and human
behaviour and stressed the importance of considering workers’
needs to improve productivity
when staff were given attention from managers their
productivity/motivation improved
productivity improved when physical conditions were changed
workers enjoy social aspects of working in groups
workers may be influenced more by informal groups than official
leaders
relationships which evolve at work are more motivating to
employees than money
absenteeism dropped
Explore the relevance of a classical management approach to a modern business practise
Classical MGT viewed organisation as a machine and tried to make it efficient
Suggested workers were motivated by money
Suggested there was a best way to perform tasks to maximise workers’ efficiency
That managers should manage and workers should work
Aimed to achieve standardisation by dividing jobs into small tasks
Classical management is still used in manufacturing industries which standardise processes to
remove inefficiencies/limit waste and reduce costs
o Standardisation is used today by many large multinational firms to ensure customers receive a
consistent experience from any outlet eg McDonalds
Division of labour can maximise output by using resources efficiently and is used by many labour
intensive production facilities
o However most firms today encourage flexibility in the workforce and allow staff to multi-skill as
specialisation can be boring and repetitive
The concepts of Gilbreth’s motion study are still used today in industries such as engineering to
measure the time taken to do tasks so that unnecessary steps are removed
o From this work planning and productivity budgets can be set effectively
o Appropriate for low skilled jobs which are highly measurable eg scanning items through an
electronic till in a supermarket
Therefore not used for professions, such as teaching and nursing
Piece rate payment is still used in industries which require a quick rate of output
o Financial incentives are still used as a primary motivator, in many industries, such as bonuses,
piecemeal incentive and commission
o However most employees today are not only motiva
Discuss the costs and benefits of scientific management
Costs
* views workers like machines and therefore does not empower or motivate them
o conflict can arise and increase resistance from poor employee relations
* specialisation of work can de-skill staff making the workforce inflexible
o division of labour/specialisation can result in repetitive work for staff which
may demotivate them
* employees are not only interested in financial incentives and a failure to
acknowledge this can lead to a high staff turnover
* lack of involvement or discussion with employees can result in the firm missing
valuable feedback and idea generation from an operational level
o staff who do not feel valued by the firm may have a high level of absence
* authoritarian management and organisation structure may lead to employee
stress
Benefits
* division of labour increases productivity with cost efficient use of resources
o training employees to specialise improves the quality of their work
* time and motion studies help to eliminate waste in the processes
* a hierarchical structure provides promotion opportunities which motivate staff
o this can help retain competent workers/prevent them leaving for rival firms
o a clear hierarchy can improve communication channels in the firm
* little upward communication may quicken decision making as there is less
consultation
o less confusion in the workplace as managers make all the key decisions
* scientific management believes finance is the primary motivator, so
commission and bonuses are often used as rewards to motivate staff
o piecemeal incentives encourage employees to work efficiently, increasing
output
Describe contingency theory of management
Contingency theory tries to get the best fit between task, people and
environment.
Management must be flexible and adapt to all circumstances.
Organisations cannot exist in isolation.
Organisations must consider all internal and external factors to adapt and
survive.
A contingency approach states that no single ideal method of management
exists.
The best approach will depend on the variables (contingencies) that must be
considered.
Each situation and organisation is unique and management must be tailored
accordingly to achieve maximum organisational effectiveness.
A contingency approach helps managers to adjust to changes in social and
economic circumstances.
The method of management will depend on each individual situation.
Variables can include skill of workers, the task, etc.
Explore the relevance of contingency theory to Uk orgs today
Contingency theory is relevant today because managers must be flexible and
decide what to do in various circumstances in a rapidly changing environment
that exists today.
Contingency approach could lead to uncertainty within the workforce if
managers are always changing their approach.
Contingency assumes managers can adapt but in reality this may not be possible
Managers must adjust to take account of PESTEC factors and adjust accordingly.
Organisations need to ensure they match suitable managers to relevant areas of
work – in informal situations a relationship manager is better suited whereas in a
formal situation a task orientated manager is more suited.
Organisational structures can have a direct impact on employee relations making
contingency theory highly relevant in modern day business where a flat structure
with less supervision enhances employee relations.
Inexperienced or new workers may require a more directed approach however
experienced staff can be empowered and a manager must adapt to
accommodate this.
Organisation which combine production and service may adopt different
approaches in each area as production will be suited to elements of classical
management whereas service sector uses a more human relations approach
allowing employees to work in teams and be empowered.
o For example in a restaurant staff are allowed to use their own initiative
when dealing with customers but must comply with strict procedures in other
areas eg in the kitchen.
The increase of global online competition from the rise of e-commerce sales in
retailing means organisations need to develop a flexible structure to respond to
rapidly changing markets.
Mechanistic structures are still appropriate to firms in slow growing markets with
little competition.
Modern organisations are more likely to use a contingency approach choosing the
best mix of ideas about management to suit the situation in which they may find
themselves in.
