ࡱ> [ Kbjbj lΐΐ=#$$$$$$$$%T$SC+C+C+C+C+RSTSTSTSTSTSTS$oVY:xS$zxSC+C+NSvvv0 PC+$C+RSvRSvv0 G"pSC+@q+$8 <H>SS0S=KY&PKYSKY$S$"4vL`^xSxSvSKY : UNIVERSITY OF NAIROBI COLLEGE OF EDUCATION AND EXTERNAL STUDIES SCHOOL OF CONTINUING AND DISTANCE EDUCATION DEPARTMENT OF EXTRA MURAL STUDIES BACHELOR OF ARTS IN PROJECT PLANNING AND MANAGEMENT PRINCIPLES OF MANAGEMENT LECTURES BY DR. JOHN OURU NYAEGAH LECTURER: DEPARTMENT OF EXTRA-MURAL STUDIES. LECTURE ONE INTRODUCTION TO MANAGEMENT Lecture Outline Introduction Lecture objectives Definition of management Characteristics of management Management functions Managerial roles Managerial skills The art and science of management Importance of management knowledge Summary Introduction In this lecture we will discuss the significance of management in achieving organizational objectives efficiently and effectively. Managers do this by carrying out the functions of planning, organizing, staffing, leading, motivating, communicating and controlling. Managing is an essential activity at all levels although the managerial skills and roles vary at different organizational levels. This lecture begins with some background knowledge to the discipline of management, and the main purpose is to understand the meaning, process, skills and functions of management. 1.2 Lecture objectives  At the end of this lecture you should be able to: Define the concept of management Describe the characteristics of management State the functions of management Explain the skills of a manager Discuss the roles of management Identify the components of the management environment Discuss how management can respond to a changing environment.  1.3 The meaning of management Management has been defined in many different ways by different authors. Here is a sample: - Management is the art of getting things done through and with people in formally organized groups.(Haimann, T.) Management is simply the process of decision-making and control over the actions of human beings for the express purpose of attaining predetermined goals.(Vance S.) Management is a social process entailing responsibility for the effective and economical planning and regulations of the operations of an enterprise in fulfillment of a given purpose or task (Brech E. F., 1957). Management is the coordination of all resources through the process of planning, organizing, directing and controlling in order to attain a given stated objective (Fayol H. 1916; & Koontz and ODonnel, 1976) From the above range of definitions, it is obvious that management is a complex process with many facets/elements/dimensions.  Management is both a social and technical process that comprises a series of actions that lead to the accomplishment of objectives. It is a process by which the resources of production are transformed from just resources to production (Peter Drucker). It requires a combination of technical, human and conceptual skills Managers are resources or assets in organizations Activity 1.1  Write your own definition of management  1.4 Characteristics of Management: To further enhance our understanding of the term management, we shall now examine some of its major characteristics. Management is an activity. Management is an activity that concerns the effective use of all resources both human and non-human. It is the driving force that inspires an undertaking. It creates the conditions and relationships that bring about the full use of resources. (ii) Management is Purposeful and goal-oriented. The main concern of management is the achievement of clearly defined goals or objectives. Management is said to be successful only to the extent to which these objectives are achieved. (iii) Management is a Social Process Organizations are social entities, as they are constituted of people. As such, management has to control, organize and motivate people and create a favourable climate for their development. (iv) Management is getting things done. A manager does not usually do the operating work himself, but gets the work done with and through people. A manager has to direct people, harness talents through training and procure technical, human, and psychological skills (intellectual capital). Management is an intangible force. Though intangible, management is not abstract but a social skill which is evident by the quality of the organization in terms of the efficiency and effectiveness of its operations. Management is an Integrating Process. Management brings together people, machines and materials to carry out the operation of the organization and achieve a set of given objectives. It is a result-oriented process. Management is separate from ownership. Management and ownership may be the same in small family or individual or sole proprietorship businesses, but in modern enterprises or corporations, a vast number of shareholders own the business enterprise or organization, while management is in the hands of qualified, professional and competent managers, who normally do not posses any ownership interest. Management is a Universal Activity The techniques and tools of management are universally applicable. Managers perform the same functions regardless of their position in the management hierarchy, type of enterprise or location of enterprise. Management is a social science The science of management is universally accepted as a distinct discipline. It has assumed professional character, hence requiring the use of specific knowledge, skill and practice. It utilizes certain fundamental concepts, theories, tools and techniques that constitute the subject matter of management. It therefore satisfies all the conditions of a profession. 1.5 The art and science of management Management can be said to be both a science and an art. First, it is a science because it is based on a set of organized knowledge founded on proper scientific findings and exact principles. It is part of the branch of science known as social science just like sociology, economics or history. The other branches of science are physical science, biological science etc. Management is also a behavioral science in which its theories and principles are based on the situation. Management can also be an art. An art refers to the best way of doing something. Management can be said to be the process of directing scientific knowledge to the accomplishment of objectives. Like any other art, management is creative, develops new situations, new designs and new systems needed to improve performance. Art therefore is the know-how or technique to achieve a desired result. The most productive art is always based on an understanding of the science underlying it. Art and science therefore are not mutually exclusive but are complementary. As science improves, so should art. As Koontz and ODonnell point out physicians without a knowledge of science become witchdoctors, but with science, they become skillful, artful surgeons. Therefore, managers who operate without scientific knowledge (in the form of theory) can only trust in luck, intuition, common sense and experience (which may be wrong experience). However, in utilizing theory and science, managers must learn to blend knowledge (principles) and practice to achieve desired results. 1.4 The Scientific Method in Management. The purpose of science is to explain phenomena. Science is based on the belief that relationships can be found between two or more sets of events. The scientific method involves determining facts through observation of events and verifying their accuracy through continued observation. After classifying and analyzing the facts observed, scientists establish causal relationships known as hypotheses that they test for accuracy. When hypotheses are supported, and are found to explain or predict reality they become principles. However, principles are not permanent they can still be challenged by future research and analysis and either modified or discarded. Principles, Theory and Concepts: Principles, theory and concepts form the structural framework of a science. Principles are fundamental truths or what are believed to be truths at a given time, explaining relationships between two or more sets of variables. For example: Motivation has a positive effect on the performance of employees. Theory is a systematic grouping of interrelated principles. It ties together significant knowledge to form a framework. For example, the theory of attribution which explains the behaviour of an individual on the basis of whether it was caused by an external or an internal influence. Internal causes are those believed to be under the personal control of the individual while external causes are those believed to be beyond the control of the individual. These are judged on the basis of distinctiveness, consensus and consistency. Concepts are mental images of something formed by generalization from particulars. Concepts are the building blocks of theory and principles. However, they tend to always imply different things to different people. For example concepts such as: management, organization, technology, labour etc. 1.5 The basic functions of management The job of management is to help an organization make the best use of its resources to achieve its goals. They do so by performing essential managerial functions which include: Planning Organizing Directing Staffing Controlling Planning: It is the process of setting goals and objectives and showing how these goals and objectives will be accomplished. Organizing: This refers to the process of establishing a structure of working relationships. It involves grouping people into departments according to specific tasks performed and deciding how best to coordinate organizational resources. Directing: This is the process of communicating what has been planned by leading and motivating the efforts of people towards attainment of goals Staffing: This function refers to the process of filling positions with the right kind of people in the right job at the right time. Controlling: This refers to the process of evaluating how well an organization is achieving its goals and how to maintain and improve performance. Figure 1 below illustrates the relationships among these functions. It indicates that all the functions are interdependent.  Figure 1: Interdependence among managerial functions 1.6 Managerial roles Managers play several management roles: a role is a set of specific tasks that a person is expected to perform in the position they hold. According to Henry Mintzberg, managers play three major roles: Interpersonal roles: Figurehead a manager a representation or a symbol of the organization. They determine the direction or mission of the organization. They inform stakeholders such as employees about what the organization is seeking to achieve. They put up appearances on behalf of the organization eg receiving guests at the workplace or attending an employees wedding. Leader a manager occupies a position of influence, hence has to inspire and encourage others to perform. They train, coach, counsel and mentor subordinates to reach their full potential Liason managers are the link between the organization and the larger society. They deal with people outside the organization such as suppliers and customers and inside by coordinating the activities of people in different departments. Informational roles: These roles are closely associated with the tasks necessary to obtain and transmit and transmit information. The roles are: Monitor managers analyze information from inside and outside the organization so that he can effectively control and organize people and other resources. Disseminator Managers transmit information to other members in the organization so as to influence their work attitudes and behaviour Spokesperson managers use information to promote the organization so that people inside and outside the organization can respond positively to it Decisional roles: managers plan and lay strategies for achieving goals and utilizing resources. They act as: Entrepreneurs: Managers decide which projects or programmes to initiate and how to invest resources to increase organizational performance Disturbance handler: managers assume responsibility for handling unexpected events or crisis that threatens the organizations access to resources. In this situation a manager also assumes the roles of figurehead and leader to mobilize employees to help secure the resources needed to avert the problem. Resource allocator: managers decide how best to use available resources to increase organizational performance. Negotiator: managers work out agreements and contracts that will operate in the best interest of the organization. The relationships among these roles are illustrated in figure 2 below. Figure 2: Illustration of managerial roles       Managerial skills Skills is what separates good managers from ordinary managers. Education and experience enable managers to develop the skills they need to put organizational resources to their best use. There are three types of skills: Technical skills: These are needed to perform specialized tasks. They involve the ability to use knowledge, methods, techniques and equipment necessary for the performance of specific tasks. These skills are acquired from experience, education and training. They are more useful for lower level management at supervisory levels because they train others in the actual job. Human skills: The ability to work with and through people including understanding of motivation and application of effective leadership. Also includes the ability to mould individuals into a cohesive team. Human skills are useful for middle managers as they link the top and the lower levels of employees. Conceptual skills: This skill is demonstrated in the ability to analyze and diagnose a situation and to distinguish between cause and effect. Involves understanding the complexities of the overall organization and the various variables that influence its operations. It is about seeing the big picture. The appropriate mix of these skills varies as an individual advances in management from supervisory to top management positions. The relationship between management level and skills needed is illustrated below. Management Skills needed level   Executive Managerial Supervisory.. Figure 1: Managerial roles More conceptual skills are needed at executive levels as executives should be able to see how all operative functions are interrelated in accomplishing organizational goals. Their focus is external and global. Human skills are therefore crucial to all levels of management as attested by the following statement: I will pay more for the ability to deal with people than any other ability under the sun (John D. Rockeffeler, American entrepreneur). In other surveys, human skill has been rated higher than intelligence, decisiveness and knowledge and job skills. 1.9 Importance of Management Knowledge Knowledge of the basic principles and techniques of management is important for a number of reasons. To increase efficiency. Development and use of management principles improves managerial efficiency. Managers can apply established guidelines to help solve problems without having to resort to trial and error which is risky and costly to the organization. Although experience is important, it is not enough as no two situations or problems are the same nor can be solved using the same methods. Hence an understanding of management theory, principles and concepts allows the manager to see and understand what otherwise would remain unseen. Awareness of management principles helps managers avoid mistakes. To understand the nature of management. An understanding of the concepts, principles and techniques of management enables managers to analyze the managerial job and train others. The knowledge of these fundamentals acts as a checklist of the meaning of management. With the accumulation of management knowledge, management training is simplified. To achieve social goals. Development of management knowledge and its skillful use in the management of people and material resources can have a revolutionary impact on society. For example, it is observed that nations with high levels of material standards of living tend to have high levels of knowledge and skill in the management of business. Management has a social responsibility in addition to making profit. They oversee the operation of the economic systems that fulfills the expectations of the public such as safeguarding shareholders investment, providing a reasonable return, keeping employees satisfied and contented by ensuring payment of fair wages, good working conditions and security of employment. Management is also responsible for customers needs e.g. quality goods and services. To the State, it is the major source of income through taxes hence the business must be conducted in accordance with state policy. It also has responsibility to the society by maintenance of ethical behaviour. It should also be innovative and creative to produce goods and services for the increased comfort of mankind. It is management knowledge therefore that enables these multidimensional responsibilities of management to be achieved. The key to successful management is the ability to identify the right things to be done (effectiveness) and to concentrate resources on them (efficiency) Using examples, identify the consequences of poor management to: employees, customers/clients, suppliers, government and society 1.10 Environmental influences on management Although most of a managers time is spent in interactions with subordinates inside the organization, the manager must also deal with issues in the external environment. These consist of the micro, market and macro environments. 2.1 Composition of the Management Environment The environmental concept refers to the sum total of the factors or variables that may influence the continued existence of an organization. They may be factors inside or outside the organization. An organization does not exist in a vacuum, but in an environment that provides resources and limitations. To remain prosperous, therefore, it must continually adapt to its environment, which is constantly changing. An organization and its environment are interdependent. The environment provides resources and feedback to the organization and it, in turn, produces the goods and services required by the environment. An organization exists only for as long as activities are desired and supported by the environment. The environment is made up of threats, opportunities limitations and resources. 1.11 Types of environments i) Micro environment This consists of the organization itself: The mission, goals, objectives and strategies of the organization. The organization and its management The resources of the organization e.g. employees, capital, finance, etc The organizational culture. ii) Market environment This is the environment that surrounds the organization also known as the competitive or industry and comprises of: Consumers, their needs, purchasing power and behaviour. Suppliers of materials, capital and labour Intermediaries e.g. wholesalers and retailers, commercial agents and brokers, banks etc. Competitors e.g. new entrants, existing competitors, availability of substitute products or services and the bargaining power of clients, consumers and suppliers. iii) Macro environment Is that which exists outside the organization. It comprises: Technological environment: responsible for accelerating change and innovation and creating opportunities and threats in the environment. Economic environment: responsible for change in the environment because of changes in economic growth rate, levels of unemployment, consumer income, rate of inflation and the exchange rate. Socio-cultural environment: referring to changes in value systems, family structures, education, attitudes, ethics, workforce diversity, etc. Ecological/physical environment: is concerned with the natural resources from which the organization derives its raw materials and the environment on which the organization discharges its waste. The political-governmental environment: refers to the government and its influence on the organization, e.g. in terms of political risk, legal matters, government expenditure etc. The international environment: comprises of the factors emanating from other countries with which the organization directly or indirectly has business relations. An organization can therefore be said to be an open system because it is dependent on the environment in which it operates. (A closed system can exist independently). There is specific interaction between the system and the environment.  Ways in which management can react to the Environment. Environmental scanning: refers to the measuring, projection and evaluation of change in the environment. Organizations management information systems should make provision for this. Strategy response: This may include changes in present strategy or formulation of new strategies. Structural Change: The organization structure can be redesigned, adapted or modified as a response to changes in the environment e.g. a flexible vs. bureaucratic structure, integration vs. differentiation, decentralized vs. centralize etc. Cultural change: change the organizational culture from closed to open etc. 2.4 Organizational culture and environment Organizational culture is a pattern of shared beliefs and values (Morgan 1986) (Shared meaning, shared understanding and shared sense making). Handy (1993), notes that organizations have differing atmospheres, differing ways of doing things, differing levels of energy, individual freedoms and kinds of personality. Organizations are like mini societies that have their own distinctive patterns of culture and sub-cultures which can exert a decisive influence on the overall ability of the organization to deal with its challenges. The dominant culture that develops in an organization is the product of its founders aims and styles and their successors in senior management and interaction with a variety of internal and external forces. Determinants of organizational culture Organizational mission and vision Corporate aims Policy statements Rituals, eg dressing, address Logos, brand names Rules, procedures Management attitudes Peer group attitudes Structures Technology etc  Consider a recent event that occurred at any of the three types of environments described above. State whether it was a social, political economic or technological event; which businesses were affected and how; which other environments have been affected by this event and how? Summary In this lecture we have discussed the meaning and characteristics of management. The five major functions of management planning, organizing, directing, staffing and controlling were briefly introduced. We also discussed the roles of management and skills that mangers require at different levels. These are technical, human and conceptual skills. LECTURE TWO MANAGEMENT THEORY Lecture outline 2.1 Introduction 2.2 Lecture objectives 2.3 Classical scientific management 2.4 Bureaucratic approach 2.5 Neo-classical approach to management 2.6 Summary 2.1 Introduction In lecture two, we shall discuss the theories of management. These are divided into the classical, bureaucratic and neo-classical approaches to management. 2.2 Lecture objectives At the end of this lecture, you should be able to: Describe the principles of scientific management as advanced by Fredrick Taylor Discuss the rational-economic view in relation to scientific approach to management Discuss the principles of management as advanced by Henri Fayol Examine the bureaucratic approach to management as advanced by Max Weber Describe the human relations approach to management 2.3 Classical Approach To Management The history and theory of management are important to managers for various reasons: They help managers understand current developments and avoid mistakes of the past They foster an understanding and appreciation of current situations and developments and facilitates the prediction of future conditions They help managers organize information and approach problems systematically. Without knowledge of theory, managers would be using guess work, hunches, intuition and hopes which may not be useful in the present complex and dynamic organization. The practice of management can be traced to the beginning of man. Egyptian, Greek, Roman and Chinese civilizations all have records indicating the importance of management. (The writings of Sun Tzu on the Art of War, written 2500 years ago are a lesson on strategic management) In Greece, Socrates the famous philosopher observed that the management of private affairs such as households is not different from the conduct of public affairs except in magnitude The biblical Moses used the Principle of delegation and hierarchy of command to manage the Israelites during the exodus. (Exodus 18: 1-27). Joshua used the management techniques to recruit soldiers for war. The Roman Catholic Church over the centuries has effectively used the principles of division of labor and hierarchy of authority. The Roman empire colonized many parts of the world for many centuries by effectively using basic management ideas such as scalar principle and delegation of authority. Niccolo Machiavelli in The Prince gives relevant ideas on how to develop and use management skills. He suggests to The Prince ideas on consent of the majority, inspiration of people to greater achievement, offer of rewards and incentives and taking advantage of all opportunities. The above early influences on management, however, do not give much insight into the principles of management as they are not organized and the relationships among various variables are not explained. The knowledge is based on trial and error and experience rather than organized scientific knowledge. It was only in the late 19th century that large business organizations requiring systematic administration started to emerge. We shall focus on two early schools of management. Classical management theory Human relations neo-classical theory 2.4. Classical Management Theory Classical theory is divided into scientific management and administrative management. Scientific management theory: Changes in economic and production patterns during the industrial revolution led a few practicing managers to examine the causes of inefficiency in production. It is these basic studies that led to a system of management known as scientific management. Scientific management has been defined as the application of scientific method of study, analysis and problem solving in organizations. 2.4.1 The Thoughts of Frederick Taylor (1856-1917) Taylor, an engineer in an American steel firm was concerned about the best methods of doing jobs. He saw the main problem to be that of efficiency of workers in relation to existing property relationships between workers and owners of organizations. He suggested the development of a true science of management where methods for performing each task could be determined. He advocated a mental revolution by both management and workers. His findings were: Workers deliberately restricted production in their daily work due to fear of unemployment and lack of piece rate system. Lack of work rationalization, hence overlapping of jobs. The method of working was also too complicated. Due to poor remuneration, workers formed themselves into groups and labour unions to press for better wages. Management left the initiative of working methods to the ingenuity of workers (rule of thumb). To solve the above problems, Taylor suggested the following principles to guide management. Each worker should have a clearly defined daily task. Establish standard conditions to ensure the task is more easily accomplished e.g. work-study and motion studies. High payment for successful completion of tasks and none or lower payment when standards are down. He believed money was a major motivator. For management, he suggested: - The scientific selection, education and development of workers. Friendly, close cooperation between management and workers. Managers should take more supervisory responsibility, arguing that workers preferred to be given a definite task with clear-cut standards.  He emphasized planning and greater control by managers. He believed adoption of scientific approach to managing would lead to prosperity for both managers and workers. He believed conflict about how to divide profits was retrogressive and unproductive. Wages should be scientifically determined and should not be left to the whims of managers or power of trade unions. The concepts/ideas advanced by Taylor are not far from the fundamental beliefs of the modern manager. A number of post Taylor studies are found in the literature e.g. The Hilbreths, Gault, Emerson, and Filene. They all attempted to improve on Taylors ideas. The basic assumptions of scientific management were: Improved results in organizations will come from the application of scientific methods of analysis to organizational problems. This implies that scientific approach to problems is superior to other methods eg informal sector The focus is on the work itself and not the particular person doing the work Each worker is assumed to be a classical economic man hence interested only in maximization of his monetary income Evaluation of Scientific management While Taylors ideas of scientific management contributed to modern management, there were also a number of limitations. Limitations The revolutionary ideas advocated by Taylor increased productivity but led to layoffs It assumed people were rational and therefore motivated only by material gains. Taylor and his followers overlooked the social needs of workers. They assumed that one had only to tell workers what to do to increase their earnings and they would do it. However, people have needs other than money e.g. recognition and acceptance They also overlooked the human desire for job satisfaction and workers became more willing to go out on strike over job conditions rather than salary. The assumption that human beings are rational creatures who base their decisions on rationality and logical analysis of their needs is not universally applicable to all human beings. Benefits of the Scientific Management Thoughts. Its rational approach to organization of work enabled tasks to be measured with accuracy. Tasks measurement and processes provided useful information on which to base improvement on working methods. Improvement of working methods brought enormous increases in productivity. Enabled employees to be paid by results and to take advantage of incentive schemes. Stimulated management into adopting a more positive role in leadership at the factory level. Contributed to major improvements in physical working conditions. It provided the foundations on which modern work study and other quantitative techniques are based. Disadvantages of the Scientific Management. Reduced the role of workers to that of rigid adherence to methods and procedures over which they have no discretion. Led to fragmentation of work because of emphasis on analysis and organization of individual operations, hence boring, repetitive jobs. Generated a carrot and stick approach to the motivation of employees enabling pay to be geared tightly to output. It put the planning and control of workplace activities exclusively in the hands of management, alienating workers. Ruled out any realistic bargaining about wage rates since every job was measured, timed and rated scientifically.  Fayol, Taylor and their followers have attempted to find rational principles that can be applied to the development and management of organizations. However while most have been adopted, some are difficult to implement in practice because of changes in organizations and environmental conditions. 2.5 Administrative Theory This theory came out of a need to find guidelines on how to manage complex organizations such as factories. Henry Fayol is recognized as the father of classical organization theory since he was the first person to systematize managerial behaviour. Another contributor is Max Weber (1864-1920) with his bureaucratic model. 2.5.1 HENRI FAYOL (1841-1925). Fayol was an engineer in a large French Company. Fayol, unlike Taylor started in management and his ideas therefore are more concerned with the science of management. As such he drew up a list of principles of management. Fayol believed that sound managerial practice fell into patterns that could be identified and analyzed. He also believed that management is not a personal talent but a skill that can be taught and learnt. It is notable that Fayols observations fit well into the currently developing management theory. He defined management in terms of: Technical activities - production. Commercial - buying and selling. Financial - securing capital. Security - safeguarding financial information. Managerial - planning, organizing, controlling and directing. He noted that of all these activities, it is managerial activities that have not been given much attention and he dealt more with it. Based on his experience, Fayol listed 14 principles of management. Division of work - Necessary to efficiency of labour as it reduces span of attention or effort hence increasing specialization. Authority and Responsibility - The right to give orders. Discipline -Respect for formal and informal agreements between firm and workers and obedience to rules and regulations. Unity of command - One person, one superior, employees should receive orders from one superior only to reduce confusion. Unity of Direction - One head, one plan for a group of activities with the same objective. Subordination of the individual interest to general interest -The interests of one individual or one group should not prevail over the general good. Remuneration - Pay should be fair to both worker and firm. Centralization - Refers to the extent to which authority is concentrated or dispersed. Circumstances of organization e.g. size will determine the extent to which an organization is centralized Scalar Chain - Chain of Superiors or line of authority from top to bottom. Order - A place for everything i.e. the right person in the right job or place. Equity - Refers to loyalty and devotion from personnel by use of kindliness and justice on the part of managers. Stability or Tenure of Personnel - Refers to the costs and dangers of turnover due to bad management. Initiative - All levels of personnel should be encouraged to show initiative as it is a source of satisfaction. Espirit de corps - In union there is strength. This is an emphasis on teamwork, harmony and communication. 2.6 MAX WEBER (1864-1920) Max Weber advocated for a bureaucratic approach to management to reduce abuse of power by people in managerial positions. This is an approach that runs on rules and regulations. The concept of bureaucracy is attributed to Max Weber (1864-1920), a German sociologist. He lived in the period of history as the early pioneers of management thought such as Fredrick Taylor and Henri Fayol. Weber however, was an academic and not a practicing manager. His interest in organizations was from the sociological perspective of why people obeyed those in authority and why those in authority abused power. He published the theory of social and economic organization which was translated into English in 1947. He used the term bureaucracy to describe the structure of organizations. Bureaucracy Is a term that has been used to mean: Red tape an excess of paper work and rules leading to gross inefficieny Officialdom all the apparatus of local and central government An organizational form made up of rules and hierarchy of authority. Characteristics of Bureaucracies Specialization have a high degree of labour division thus ability and not personal loyalty is the condition for employment Rational official jurisdictional areas are rationally determined by a clear hierarchy of authority; duties and measures of performance are established and positions are well defined and formalized in writing. Professional - follows formal impersonal procedures of the organization. Organizational structures are well defined and exist prior to filling positions with people. Impersonal - authority is impersonal and amount of authority corresponds with rank of office Autonomous officials, because of their expertise and technical competence are recognized and rarely questioned within their areas of expertise. Stable performance is encouraged by rewards in form of stable careers, regular salary, promotion and pensions.  - A bureaucratic organization has a functional structure, clear lines of authority and obedience is owed to established rules and regulations. - It has hierarchical levels of authority with firmly ordered superior-subordinate relationships. - Terms of employment are based on rank of office rather than amount of work (performance) - Bureaucracy is common in large complex organizations which depend on specialization, rules and procedures for efficiency Weaknesses Works well only in stable environments where the work and information handled are highly predictable, recurrent, routine and familiar. Rules become so important that they become an obstacle to efficiency Decision making processes are programmed hence discouraging search for other alternatives (is rigid) Rigid behaviour damages relations with clients or customers as they are unable to get tailor made services but have to accept the standard provided within the rules. Difficult to change and adapt to new circumstances It undervalues the human element by assuming that people are passive and respond only to rules and incentives. It failed to see the fact that people are capable of going against rules.  What common features do you see between Fayols principles of management and Webers description of bureaucracy? Discuss the advantages and disadvantages of bureaucratic structures. Why do you think such structures may not be suitable for organizations that operate in highly unstable environments? Discuss the situations in which bureaucratic systems are desirable 2.7 Neo-Classical Theory Of Management Human relations school of thought While the scientific management theorists were more concerned with the mechanics and structure of organization, the human relations school of thought was more concerned with the human factor i.e. people and their relationship with the organization, fellow workers and the job. The emergence of industrial psychology in 1913 provided the impetus in the studies on human problems in organizations. The works of Elton Mayo (1880 1949). Elton was an Australian practicing psychologist at Harvard University. He carried out experiments at the Hawthorne Plant of Western Electric over a period of time and his findings can be summarized as follows:- Individual workers cannot be treated in isolation but must be seen as members of a group. The need to belong to a group and have status within it is more important than monetary incentives or good working conditions. Informal groups at work exercise a strong influence over the behaviour of workers. Supervisors need to be aware of these social needs and cater for them if workers are to collaborate with the official/formal organization rather than work against it.  The studies proved that interpersonal and group values are superior to managerial and individual values. Managers who do not have the enthusiastic support of the groups they supervise will be unable to motivate individual members to a significant degree. Weaknesses of the human relations school of thought In viewing people as the most important organizational variable it committed the mistakes of earlier theories of suggesting one best way of managing It saw workers as social beings motivated by social needs but this is too simplistic as human beings are complex and motivated by many variables It assumed satisfied workers are highly productive but this is not always true Assumptions about people. To understand the human factor in organizations, assumptions made about people need to be understood especially in the superior-subordinate relationship. The major theories of motivation and leadership were developed after the Hawthorne studies of Elton Mayo. Edgar Schein (1965) Schein was an American academic who published a classification of assumptions about people. Implicit in management ideas is what motivates people. (i) Rational Economic Man This view or assumption has its roots in the economic theories of Adam Smith (1776). It states that self-interest and the maximization of gain are the prime motivators of people. It stresses mans rational calculation of self-interest especially in relation to economic needs. Hence people are either untrustworthy and money-motivated or trustworthy and motivated by broader issues. This appears to have been an important assumption in the mind of Taylor and his followers. (ii) Social Man This assumption draws from the conclusions of Elton-Mayo. This view sees people as dominated by social needs. Acceptance of this view means managers need to pay more attention to peoples needs rather than tasks, groups and a change of role for manager from organizer and controller to guide and supporter. (iii) Self-actualizing man This view is based on Maslows theory of human needs. It sees self-fulfillment needs as the main driving force behind individuals. The managerial strategy should be one that provides challenging work, delegation, responsibility and autonomy of work. While this view is true for managers and professional staff, it is less clear for lower grade employees. (vi) Complex Man This view sees human beings as complex and variable. Peoples motives vary depending on tasks, work groups or organizational climate. Managers must therefore be able to also adapt and vary their own behaviour in accordance with the motivational needs of particular individuals and teams. Schein sees motivation in terms of psychological contract based on the expectations that employers and employees have of each other. Hence the relationship between an individual and his organization is an interactive one. Douglas McGregor (1967) Like Scheins classifications, McGregors theory X and theory Y are a set of assumptions about people. After observing the actual practice of managers, he proposed that they were operating on two levels. Theory X The average person has an inherent dislike for work and will avoid it if possible. Because of dislike for work, people must be coerced, controlled, directed and threatened with punishment to get them to work. The average human being prefers to be directed, wishes to avoid responsibility, has limited ambition and wants security above all else. Theory Y The use of physical and mental effort in work is as natural as play or rest. People will exercise self-direction and self control in the service of objectives to which they are committed. Commitment to objectives is a function of the rewards associated with achievement. The average human being learns under proper conditions not only to accept but to seek responsibility. The capacity to exercise a relatively high degree of imagination, ingenuity and creativity in the solution of organizational problems is widely and not narrowly distributed. Under conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized. Conclusions Attitudes and behaviour towards other people are a reflection of the assumptions we make about people. McGregors theory X corresponds closely to Scheins rational-economic man, while theory Y corresponds to self-actualizing man. McGregors assumptions have found wide application in issues of leadership than in general management. Based on these assumptions, managers should consider seriously practices such as flexibility in working time, job enrichment, performance appraisal, participation etc. In real life, a blend of the two assumptions can be observed. LECTURE THREE PLANNING Lecture outline 3.1 Introduction 3.2 Lecture objectives 3.3 Meaning of planning 3.4 Types of plans 3.5 Strategic planning 3.6 The Planning process 3.7 Objective setting techniques in planning 5.8 Barriers to effective planning 3.9 Summary Introduction Planning is the first task of a manager and forms the basis from which all the other tasks are derived. Management decides the future of the organization, by planning, strategizing and implementing plans.  3.1 Lecture objectives: At the end of this topic you should be able to do the following: Explain why planning is important. Explain the meaning of planning premises Describe the nature of goals/objectives Identify and discuss the steps in planning Discuss the usefulness of management by objectives (MBO) in planning Describe the importance of strategic planning Discuss the barriers to planning What is Planning? Planning is deciding what objectives to accomplish, the actions to be taken in order to achieve them, the organizational position assigned to do them and who would be responsible for the actions needed. Planning precedes all other managerial functions as it establishes the objectives and purpose of the project or enterprise. It is the star or compass which directs the project. Planning is a pervasive function as it is performed by all managers at all levels. It only varies with authority and nature of policies. (A manager is not a manager if he does not perform a planning function). Research has shown that effective supervisors even at the lowest levels are those who have the ability to plan. Plans must be efficient where efficiency is measured by the contribution of the plan to accomplish objectives at the lowest cost. It implies the input-output ratio and cost-benefit analysis of the of the plan. Efficiency of plans is not measured only in terms of money but intangible costs such low morale, hostility by employees, layoffs, and resentment. A plan becomes inefficient if it cannot accomplish its intended objective or accomplishes it at high costs e.g. A CEO who adopts a retrenchment plan to cut costs only to experience lower productivity due to fear, resentment and loss of morale by the employees thus defeating the objectives of reducing expenses and making profits.  Organizations function in uncontrollable environments and to survive they must plan to enable them be proactive. Effective planning requires development of objectives to direct the plans. Plans can be influenced by: Values, experiences and personality of the leader of an organization. Corporate culture i.e. the beliefs and values shared by people. Types of Plans Plans are hierarchical. They range from the broad mission or purpose of the organization to specific strategies.       Scope of plans Strategic plans - These are broad plans developed by top managers to guide the general direction of the firm. They follow from major goals of the firm and indicate what business the firm is in or what business it intends to be in. They show where the firm will position itself within its environment. Tactical plans - They have a moderate scope and immediate timeframe. They are concerned with how to implement the strategic plans that are already developed. They deal with specific resources and time constraints. They mainly focus on people and action. They are mainly associated with middle management. Operational plans They have the narrowest focus and they fall into many types. They include: Standing plan- these are developed to handle recurring and relatively routine situations. When the same situations occur repeatedly, managers have to develop policies, rules and standard operating procedures to control the way employees perform their tasks. Single use plans are developed handle non-programmed decision making in an unusual or unique situation, e.g. specific action plan to complete a project or programme. Long-range planning covers several time periods from 5 years. They are mostly associated with with activities such as major expansion of facilities, development of top managers, change of manufacturing systems etc.Top managers are responsible for long range planning (modernization of Kenyan airports is a KAA long range plan driven by top management) Intermediate planning they are less than five years and because of the uncertainty associated with long-range plans, intermediate plans are the primary concern of most organizations. They are usually developed by both top and middle management. They are the building blocks in the pursuit of long range plans. Short range planning These cover time periods of one year or less. They focus on day to day activities and provide a concrete base for evaluating progress towards achievement of intermediate and long range plans e.g. the economic survey. Levels of planning Planning takes place at three levels of management: corporate, business and functional. Corporate level strategy: The corporate level plan contains top management decisions pertaining to the organizations mission and goals, overall strategy and structure. The corporate level strategy indicates the industry and markets the organization intends to operate in. It also provides the framework within which managers create their business level plan. Business level strategy: states the methods the division or business it intends to use to compete against its rivals in an industry. The business level plan provides the framework within which functional managers propose to pursue to help the division attain its business level goals which in turn will allow the organization to avhieve its corporate goals. Functional level strategy: These set out the actions managers intend to take at the level of departments such as manufacturing, marketing, and research and development to allow the organization to attain its goals. Consistency across the three levels is important for success. Functional strategies should be consistent with divisional goals while business goals should in turn be consistent with corporate strategies. Strategic planning Strategic planning is the formalized long-range planning process used to define and achieve organizational goals. It involves: selecting an organizational goal, determining the policies and strategic programmes necessary to achieve specific objectives, establishing the methods necessary to ensure that policies and strategic programmes are implemented. A vital component in strategic planning is organizational goals. They provide a sense of direction for organizational activities. Goal includes purpose, mission and objectives. Purpose is the primary role of an organization as defined by the society in which it operates. It is a broad aim that applies not only to a given organization but to all organizations of its type in that society. For example, the purpose of all hospitals is to provide healthcare. Mission is that unique aim that sets the organization apart from others of its type. Although the purpose of all hospitals is the same, individually, they have different missions. Objective is the target that must be reached if the organization is to achieve its goals. They are the translation of its mission into specific corporate terms against which results can be measured. Strategy refers to the pattern of the organizations response to its environment over time. Thus it is a broad programme for achieving the organizations objectives and thus implementation of its vision. Characteristics of strategic plans deals with fundamentals of basic problems by providing answers questions such as: what business should we be in? who are our customers or who should they be? Provides the basis for detailed planning and the day to day managerial decisions Involves a longer time-frame than other forms of planning It is a top management activity as they have the information necessary for strategic decisions Helps integrate and unify the actions of the organization over time It provides guidance and boundaries for potential planning Why organizations employ strategic planning Managers find that the definition of the mission of their organizations in specific terms through strategic planning gives their organization direction and purpose It results in better functioning of the organization because it helps managers develop a clear cut concept of their organization making it possible to formulate plans and activities that bring the organization closer to its goals It helps managers to prepare for and respond to the increasing complex and dynamic environment. They are able to anticipate changes in the environment and prepare for them. Such changes include: technological change; growing complexity of managerial jobs; complex external environment (politics, culture, society etc); time lag between current decisions and their future results etc. With all these changes managers cannot afford to take a short-term perspective of their organization. They need to look more into the future and integrate it with the present if their organizations are going to survive. Steps in Planning Being aware of opportunities. Ability to see clearly future opportunities, and have knowledge of own strengths and weaknesses. Panning requires realistic diagnosis of the opportunity situation. Establishing objectives Involves specifying expected results Premising. Premises are planning assumptions which form the context in which planning takes place. Planning premises set the parameters or boundaries within which realistic goals can be formulated. It means the org. cannot set goals and make goals that are unattainable in terms of the environment and resources at the disposal of the org. Planning premises are derived from the: Purpose of the Org. Mission Business environment Management values which determine the organizational commitment to social responsibility Experience of management. Determining alternative courses of action. Involves search and examination of alternative courses of action. Alternatives are many but they have to be reduced and analyzed until only a few promising ones remain. (Plan A versus Plan B) Evaluating alternative courses of action. Involves weighing the strengths and weaknesses of a plan against set objectives. Evaluation is in terms of risk, profitability, returns, costs, technology, image etc. Evaluation is difficult because of the many variables that can influence a plan. Selecting a course of action. This is the point at which a plan is adopted. It is the point of decision making on which alternative to follow. Formulating derivative plans. Once a decision is made and a course of action taken, derivative plans are required to support the basic plan. E.g. KQ decides to acquire a new fleet, hence derivative plans would be needed for expansion of runways, hiring and training new pilots, crew, acquisition of spare parts, scheduling and advertising, insurance etc. Numbering plans by budgeting. After decisions are made and plans set, they have to be given meaning. Done by converting the plans into budgets representing income and expenses, profit and losses, etc. Budgets are an important of measure and control of plans. Planning is a rational, systematic approach to accomplishing an objective. EFFECTIVE PLANNING Lack of effective planning is the major cause of many management failures. Organizational Objectives and Plans These are important because they: Serve as reference points for the efforts of the organization. Necessary for coordination. Good for effective competition and growth. Objectives are prerequisites to determining effective policies, procedures, strategies and rules. Defines the destination of the organization- where it wants to go. Analogous to a star/compass used by ships for navigation. Other advantages Objectives encourage members to work towards the same goal thus reducing conflict. Gives an objective yardstick for measuring, comparing and evaluating performance. Provides rational bases for settling disputes. A good motivator as individuals are able to link performance and personal goals with the work of organization. THE ROLE OF OBJECTIVE/GOAL FORMULATION IN PLANNING Objectives are the ends towards which organizations and individual activities are directed. Objectives are usually supported by sub objectives hence a hierarchy of objectives. EXAMPLE Relationship between objectives and org. hierarchy (A dairy processing organization) Socio economic purpose and mission Supply healthy milk products to all parts of Kenya Overall objective Gain 50% of market share Specific overall objectives Process one ml litres/year Division objectives Produce One ml. Kg. Of butter per month Dept and Unit objectives[ Produce x units per day Individual objectives on performance and Personal development. Produce x units per hour with 2% wastage Objectives are interdependent and interlinked with plans. They also do not work linearly but in a network. It is possible for a manager to pursue more than one objective at any one time but must have the ability and skill to prioritize so that minor objectives do not overshadow major and more important objectives. E.g. attending meetings at the expense of answering correspondence Many objectives can be accomplished by delegating to subordinate. Goal Setting Technique Management By Objectives (MBO) MBO owes its importance to Peter Drucker (1954). He emphasized the importance of setting objectives in all areas where performance affects the survival of an enterprise. In 1957, Douglas McGregor suggested a new approach to performance appraisal based on the MBO concept. Research has shown that specific objectives are related to higher performances as in studies on goal setting by individuals. Goal setting is an element in employee motivation. Definition. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner, consciously directed towards the effective and efficient achievement of Organization and individual objectives. MBO is a technique designed to achieve the integration of individual and organizational goals. The process of MBO involves: - Planning premises should have support of top management and subordinates should understand the process. Subordinates should have clear understanding of Org. purpose, mission, goals and strategies. Initial discussion between managers and subordinates to formulate goals. Check points established to measure progress. Evaluation of degree of goal attainment to analyze results achieved. Benefits of MBO. Better managing MBO forces managers to think of planning for results rather than merely planning for activities. e.g. on communication, good objective would be to issue a two page newsletter beginning April 1, 2002 to all employees. Clarify organization roles and structures. Forces managers to make use of the people around them through delegation, decentralization to work e.t.c. Encourages personal commitment: Clearly defined objectives encourage commitment as people know exactly what is expected from them. People become masters of their own fate. Development of effective controls. Involves measuring results and taking action to correct deviations from plans to ensure goals are reached. Improved communication because of the process of goal discussion between managers and subordinates. Weaknesses of MBO. Failure to teach the philosophy of MBO. Not all managers are familiar with MBO and may not be able to explain it to subordinates. Failure to give guidelines to goal-setters. Cannot work if Org. goals, mission and purpose are not clear to the managers who are expected to implement MBO. Managers need planning premises i.e. assumptions as to the future, knowledge of major Org. policies. Difficulty of setting goals. Goal setting can be technical and complex, requires thorough knowledge and study. Dangers of inflexibility. Managers are reluctant to change objectives or allow subordinates to change them due to obsolescence. CASE STUDY Adored No More Two years ago, Hoechst was one of Germanys most watched companies. Harvard-educated boss, Jurgen Dormann was loudly preaching the value of American-style shareholder capitalism and promising to apply them to the lumbering, 135-year-old chemical group after taking the helm in 1994, he announced a huge restructuring programme, selling poorly performing or marginal parts of his empire, floating others on the stock market, adopting transparent accounting standards and even forcing managers to hold meetings and send memos in English. Hoechst, he used to say, needed de-rusting and defrosting. Many Germans found this incendiary stuff. But investors loved it. It now seems they were too quick to believe Mr. Dormanns sermons. Formerly a Hoechst corporate treasurer (and the first non-chemist to run the company), the new boss came to the top fizzing with bright ideas. Noting how inefficient it was to have one huge firm whose stronger divisions cross-subsidized the weaker ones, he vowed to split Hoechst into individual companies, each obliged to earn a return on its capital, and each answerable to a central holding company. He also promised to move out of stodgy commodity chemicals and into fashionable life sciences (drugs, agrichemicals, biotechnology and so on). These grand schemes have proved tricky to put into practice. A lean, ascetic man, Mr. Dormann gives the impression of polite frustration with the irrationality of the world. Admittedly, his own experience outside Hoechst is limited: he joined the company at the age of 23. unlike some of Germanys other industrial modernizers, he has never been based abroad. Hoechst, he now concedes, has a corporate culture more entrenched than that of almost any other German firm. Its sprawling Frankfurt Headquarters resembles a small town, rather than the nerve center of a global corporation. Most of the 20,000 people who work there joined when Hoechst was somewhere between a university and a government department. Changing their ideas about costs, flexibility, performance and profits was always going to be hard. The bubble burst last March, when Mr. Dormann abruptly discarded his original plan to turn Hoechst into a holding company. Citing lack of cash, he broke his promise to float its key pharmaceutical division, Hoechst Marion Roussel (HMR), on the stock market. Since then, Hoechsts profits have lagged dismally behind those of its German rivals, BASF and Bayer. Measured against the worlds top ten pharmaceutical companies, its shares have done badly in recent months. Mr. Dormanns clumsiness in explaining what is going on made matters worse. I simply dont trust that man anymore, says one German fund manager. All this is a shame. Hoechsts initial sell-offs were spectacularly successful. But the momentum is flagging. The early divestures were the easy ones, admits Mr. Dormann. The Hoechst portfolio remains cluttered with sluggish subsidiaries, producing fibres and specialty plastics. Finding buyers for these may be tricky, although a week ago Mobil, an oil firm, announced plans for a plastic film joint venture with Hoechst. Then there are worries about those exciting life sciences. In particular the expensive centerpiece of Mr. Dormanns plan creating a world-class drug company out of French and American acquisitions, plus Germanys pill makers is proving tough. Researchers in Frankfurt, fearing that their jobs might be lost to lower-cost laboratories in America, are not co-operating with their American colleagues. The announcement of 600 layoffs in Germany sparked the biggest workers protest in the history of the company. Hoechsts agrichemical business, AgrEvo (a joint venture with Schering, a Berlin-based pharmaceutical company) looks more promising but will probably have to make an acquisition to keep ahead in plant genetics. Mr. Dormann faces a difficulty. Eager to soothe jangled German nerves, he rules out firing workers, insisting that Hoechst will honour its social responsibilities. This is not enough to reassure trade unions, who still see him as a heartless apostle of alien ideas. But nor does it please investors, who worry that Hoechst still behaves like a German company, rather than an international company. Mr. Dormann would probably be in less trouble with investors if he had not promised so much in the first place. Our experience in managing expectations is pretty new, he concedes. This is a serious failing. Other German firms, such as Veba (an energy and chemical conglomerate) have maintained credibility with fund managers by promising less. Its senior managers emphasize that change will come gradually. Big transformations take time. REQUIRED: 1) Identify Mr. Dormanns problem(s) at Hoechst 2) State why you think his plans did not have the desired outcomes Barriers to effective planning Plans sometimes fail because of:- Lack of commitment to planning. Results in fighting fires, meeting crises e.t.c. Management by crises. Confusion of planning studies with plans. Having plans without decision are just planning decisions shelved. Failure to develop and implement sound strategies. Fear of failure. Lack of meaningful objectives and goals. Are goals clear, can they be accomplished and are they actionable? Tendency to underestimate the importance of planning premises by ignoring the environment. Failure to see the scope of plans i.e. neglecting other types of plans e.g. strategies, policies, rules e.t.c. Failure to see planning as a rational process. Excessive reliance on experience the past is not the same as the future. Lack of top right support. Lack of clear delegation. Lack of adequate control techniques and information need for feedback and evaluation. Resistance to change. Time consuming and expensive. Planning is hence neglected in favour of short-term activities. Avoiding barriers to planning 1. Start at the top to ensure commitment top managers should set the goals and strategies that lower level managers will follow 2. Planners should recognize limits no planning system is perfect 3. Communication vertical communication within the organizational hierarchy 4. Participation involvement leads to motivation and ownership of the plans Integration of the long-term, intermediate and short-range plans must be properly integrated for effective overall planning Contingency planning develop alternative plans of action if conditions change Planning must not be left to chance Planning must be organized Goals, strategies and policies must be communicated clearly Planning must include awareness and acceptance of change LECTURE FOUR ORGANIZING Lecture outline 4.1 Introduction 4.2 Lecture objectives 4.3 Principles of organizational design 4.4 Departmentalization 4.5Delegation 4.6 Line and staff functions 4.7 Span of control 4.8 Summary 4.1 Introduction Organizing is the second function of management. 4.2 Lecture objectives At the end of this lecture you should be able to do the following: Define the term organizing Describe the purpose of organizing Outline the basic principles of organizing Distinguish between the various types of organizational design State the factors influencing organizational design Explain the usefulness of organizational charts Discuss relationships between authority, power, accountability and responsibility in relation to organizational hierarchy Explain the concepts of line and staff functions Discuss the significance of delegation as a managerial activity Explain the meaning and factors influencing span of control Discuss the influence of the environment on the structure of organizations Case study Njoroge saved some money and with the help of his parents opened a small vegetable shop in the nearby shopping center. Njoroge worked very hard and soon he had regular customers coming to buy their weekly supply of vegetables and fruits from his grocery. He went to the wholesale market every morning to buy his fresh produce then he loaded his little truck and headed back to his grocery to unpack the fruit and vegetables, clean the shop and does some bookkeeping before the shop started to get busy. Njoroge also wanted to attract working women to his grocery and therefore he closed his shop at 9.00pm on weekdays. Although his shop did well and Njoroge could start paying back the money he owed his parents he was always tired. He also found the bookkeeping hard to do especially at the end of the month when there were always so many other things to do. Eventually Njoroge decided to hire an assistant to help in the shop and also a bookkeeper working half-day.  List all the tasks that Njoroge had to do when he first opened his grocery. Is a structure necessary? Draw a diagram to illustrate how the different tasks at the shop were divided among Njoroge, the assistant and the bookkeeper. In your diagram show who is reporting to whom. This simple activity illustrates the concept of organizing DEFINITIONS OF TERMS Organizing is the managerial function of designing and maintaining a system of roles. An organizational role must include: objectives; major activities of role; authority; availability of necessary information and other resources. Organizing: is the process of creating a structure for the organization that will enable the various players to work together effectively towards its objectives. Organizational structure: is the basic framework of formal relationships among responsibilities, tasks and people in the organization. It can be seen as the division of activities into manageable units where everyone knows who is to do what and who is responsible it removes confusion and conflict. Organizational design: design of an organizational structure involves the task of dividing up the work, allocating responsibility and establishing chains of command. Organizational Chart: Is a diagrammatic explanation of an organizations structure. It depicts the organization as a whole, the various components and their interrelationships. It can be compared to a road map thus a chart is not the organization, but a representation of it. Reasons for organizing Organizing is necessary to avoid confusion of roles, tasks etc. Organizing clarifies the responsibilities of the employees of the organization It allocates accountability to each employee for the outcomes of the work they are responsible for It establishes clear channels of communication It enables managers to deploy resources (human, financial, informational, and physical) meaningfully and synergy can be reached It enables monitoring of organizational activities Allows for co-ordination of different parts of the organization and different areas of work It provides the flexibility needed to respond to future demands and developments ORGANIZATIONAL DESIGN Organizational design is the decision-making process through which managers construct an organizational structure appropriate to the plans and strategies of the organization. Steps in organizational design are: Reflecting on the plans and objectives of the organization Establishing major tasks Dividing the major tasks into sub-tasks Allocating resources for sub-tasks Evaluating the results of the organizing strategy Basic principles of organizing Effective organizations are guided by the following principles: Division of work and specialization involves dividing total workload into tasks that can be logically and effectively performed by individuals with specialized knowledge Departmentation refers to the logical grouping into manageable sizes of organizational activities belonging together. The departments created constitute the organizations structure and appear on the organizational chart. (A department is a distinct area, division or branch over which a manager has authority over performance e.g. production, accounts or sales) Coordination - the process of integrating departments both horizontally and vertically. It is achieved through authority relationships, which involve allocation of responsibility and authority to each position in the organizational structure. Chain of command defines the reporting lines of individuals and groups in the organizations Unity of command implies that each subordinate must have only one manager to report to Span of control refers to the number of subordinates working under one manager THE ORGANIZING PROCESS Organizing creates a vertical hierarchy of positions, which involves structuring authority, responsibility and accountability. The hierarchy is a channel or conduit through which authority, power and accountability flow. While authority and power flow downwards, accountability flows upward and responsibility rests with individuals. Authority It is the right to do something it is the right of a manager to make a subordinate do something in order to accomplish organizational goals. Managerial authority is the right to command others by making decisions, assigning tasks to subordinates and expecting and requiring satisfactory performance from subordinates. However, being able to enforce this right is a different matter. Delegation of authority This refers to the process by which a supervisor gives a subordinate the authority to do the supervisors job. A manager, however, cannot delegate the functions of planning, organizing, leading and control as this would lead to breakdown in organizational performance. Power While authority is the right to do something, power is the ability to do it. The sources of a managers power are: Ability to give or withdraw rewards Ability to punish or threaten to punish Power is subjective and is influenced by moral and ethical considerations. The perception that people have about the power of another is more important than the actual power possessed. People in authority sometimes bluff, pretending they have more power than they actually do. Authority and power must be balanced to avoid conflict. Too much power leads to abuse while less authority leads to ineffectiveness. Responsibility This is closely related to authority and power. It refers to the obligation to do something. It is the duty to perform organizational tasks, functions etc. In formal organizations everyone has a responsibility Delegation of responsibility Responsibility cannot be delegated. A supervisors responsibility is not diminished because of delegation of authority to a subordinate. In fact, responsibility may increase because in addition to ensuring that the delegated work is done, he has to supervise the subordinate. Whether a manager does the work or chooses to delegate to a subordinate, he retains complete responsibility for the accomplishment of the task. Source of responsibility Responsibility is created within a person when accepting an assignment together with the appropriate responsibility. The act of responsibility is created internally when a person agrees to perform a task. Refusal to be responsible for a task leads to disciplinary action or dismissal. Responsibility is not a flow as in accountability and authority but is retained within the person assigned. It is an internal obligation to perform tasks. Accountability In addition to personal responsibility to oneself, an employee is accountable to higher authority. Accountability comes into being because the manager has a right to require an accounting for the authority and power delegated and tasks assigned to a subordinate. The subordinate must account/answer to the manager the stewardship of the power and authority granted. Each employee is obliqued to report to his superiors how well he has exercised his responsibility and the use of the authority delegated to them Just as a manager cannot reduce responsibility by delegating, accountability cannot also be reduced. Problems with imbalance between authority, power, responsibility and accountability For the sake of organizational stability there must be equilibrium between the above four factors. If authority and power exceed responsibility and accountability there is likely to be abuse of power. Power can be used arbitrarily with little regard on its impact on others. It creates fear of the potential acts of the holder of excessive authority e.g. a dictatorship form of government or the police. If responsibility and accountability exceeds authority and power, then people would be held accountable for actions beyond their control. People will eventually object and seek additional authority. DEPARTMENTALIZATION Departmental specialization can take many forms such as functional, product, geographical or matrix designs. What are the advantages and disadvantages of each design? What factors would organizations consider when choosing a particular design? Functional design: Each major function reports to the CEO and other sub functions report to the major functional heads. The idea is to group specialists with similar interests and training together e.g. marketing, HRM, finance or IT. This is the most common design Product design: this is common in organizations that deal in multiple products. It is a modification of the functional design. Each major product or line is managed by an executive who reports to the CEO. The product manager has control over the functions in his division such as sales, marketing, HR and finance. Geographical design: Where an organization operates in a wide geographical area, territorial groupings are designed. A companys activities are divided into regions with a manager for each with a home office for coordinating the activities of the geographical units. Customer design: Activities are structured to respond to specific groups of customers. For example, the lending activities in banks that are tailored to meet the needs of different customers say business/corporate clients, personal, mortgage or small business. Matrix design: this involves a grid or matrix of authority flows. Authority flows both vertically and horizontally while vertical authority is exercised by functional managers, horizontal authority is vested in project managers so that some employees find themselves reporting to two managers. Project managers have formal authority over budgetary funds, time and tasks. Advantages Matrix designs are useful when: The activity has a definite completion date Cost constraints are a critical factor Specialized skills are required for the completion of a project Activity is new or unfamiliar to the participants When a high degree of competence is required and flexibility is needed The need to share resources and reduce costs Disadvantages Conflict over allocation of resources and division of authority Dilution of functional authority Divided loyalty for project teams It sacrifices the principle of unity of command As a practicing manager, how would you justify the use of a matrix design since it potentially violates the principle of unity of command? Identify the consequences of poorly designed organizational structures NB: It is rare to find organizations that use only one of these designs. Most use combinations of two or more forms. THE PROCESS OF DELEGATION Delegation is risky. Why are many managers reluctant to delegate full authority? What kind of risks do you think they fear? Delegation is the process by which managers assign a portion of their total workload to others. It includes assigning formal authority and responsibility for completion of specific activities. Why delegate? Get more work done Subordinates may have some unique expertise which the manager lacks Helps develop subordinates managerial skills Enhances prompt action Superiors can take higher level tasks Better decisions as they are made lower down where the problems are What are the barriers to delegation? Reluctance/inability to delegate due to lack of planning what to and not to delegate Insecurity due to fear that subordinates may do better and threaten their positions Lack of confidence in the subordinate to do the job Reluctance by subordinate to accept delegation due to fear of failure, lack of rewards, risk avoidance tendencies etc. Incompetent subordinates Some guidelines to effective delegation Free communication to ensure subordinates understand their responsibility, authority and accountability Balance responsibility and authority- give enough authority to achieve desired results Define the expected results clearly Evaluate the experience and competence of the subordinate before delegating Be flexible with delegation- modify, increase, decrease or withdraw Supportive managerial climate free from fear, frustration and threats Put in place checks and controls to ensure delegated authority is not abused LINE AND STAFF RELATIONSHIPS The concepts of line and staff can be viewed both as functions and as authority relationships. Line functions: Refers to those functions that have direct responsibility for accomplishing the objectives of the firm. The managers responsible are line managers and the others are line employees. Line authority: refers to the chain of command where line officials have authority over subordinates e.g. a manager and a subordinate. This is exercised by all managers irrespective of whether they are line or staff. Staff functions: refer to those functions that support the line functions by providing expertise, advice and support. Examples are HRM, finance or research and development What are some of the likely sources of conflict between line and staff employees? Status conflict- who is more important or strategic to the organization than the other in terms of contribution Failure to understand the linestaff roles - e.g. forcing policies that make the line to feel that their authority to manage is being undermined Lack of clear responsibility between line and staff Staff see line management as resistant to attempts to provide assistance and guidance NB: The distinction between a line manager and staff manager is not absolute. There is a fine line between offering professional advice and giving instructions CENTRALIZATION AND DECENTRALIZATION This refers to the extent to which decision-making power and authority is dispersed to lower levels. It also refers to the degree of delegation of duties, power and authority to lower levels of an organization. CentralizationDecentralizationHigh degree of retention of duties, power and authority by top managementHigh degree of delegation of duties, power and authority to lower levels of the organization- suitable in stable environments hence few people can make decisions - culture of control by top managers, lack of training for people at lower levels - need for uniformity is crucial - occurs when environment is changing rapidly - top level managers are comfortable with leadership styles - emphasizes delegation - uniformity is not critical What factors determine an organizations position on the decentralization-centralization continuum? External environment the greater the complexity and uncertainity, the greater the need to decentralize Tradition tendency to do things the way they have always been done The nature of the decision the costlier and riskier they are, the greater the pressure to centralize The abilities of lower level managers the more qualified and competent they are the greater the tendency for top management to take advantage of their talents by decentralizing The size of the organization large organizations tend to be more decentralized SPAN OF CONTROL/MANAGEMENT Span of control management refers to the number of subordinates who report directly to a given superior. A managers ability to manage a larger number of subordinates is limited by time, knowledge, energy, personality and the tasks. Research has shown that managers at the top can handle up to four subordinates while the lower level can be as high as twenty. Factors determining an effective span of control Subordinate training level of knowledge and experience possessed to handle the job Degree of hazard or danger associated with the job Clarity of the delegation of authority in terms of scope Clarity of plans clear policies, rules and procedures to guide decisions and reduce supervision time Cost of possible mistakes to the individuals and to the organization Rate of change change determines the degree of policy formulation and stability. Stability is associated with wide spans of control e.g. catholic church and the reverse is true. Extent to which the job is complex Communication techniques written versus oral communication Number of levels in the organizational structure Level of technology Type of production system Physical dispersion of subordinates Availability of a set of standard procedures Similarity of tasks Think of more factors that are likely to determine the span of control. What are some of the problems associated with wide and narrow spans of control COORDINATION This is the process of linking the activities of the various departments of the organization. Coordination is maintained through rules and procedures such as standard procedures. Liason roles act as a common point of contact e.g. a spokesperson who facilitates flow of information between units. Task force involves representatives from various groups coming together to work on a common project and dissolve thereafter. LECTURE SIX THE DIRECTING FUNCTION Lecture outline 6.1 Introduction 6.2 Lecture objectives 6.3 Meaning of leadership 6.4 Types of leaders 6.5 Importance of leadership 6.6 Approaches to leadership styles 6.7 Contemporary leadership models 6.8 Summary INTRODUCTION The difference between successful and unsuccessful organizations is the presence or absence of dynamic and effective leadership. The function of management is being viewed as not simply a set of practices and policies, but a crucial component in the total organization strategy. To play its role of enabling the organization gain and sustain competitive advantage, all managers have to play a leadership role especially in the present business environment which is getting increasingly flexible, innovative and dynamic. Leadership is a concept that has generated much interest among academics and practicing managers, politicians and sociologists among others. In this lecture we shall examine some key aspects of leadership. To do so the following set of objectives will be the main focus. Learning Objectives. Define and explain the meaning of leadership. Explain the nature and importance of leadership. Explain the difference between a leader and a manager Identify and distinguish among the various research approaches to leadership. Identify and discuss the various theories of leadership. Explain the importance of leadership styles to management. WHAT IS LEADERSHIP ? Leadership is an important aspect of management and the ability to lead is one of the keys to being an effective manager. The difference between success and failure whether in war, business, a protest movement or a soccer game can be attributed largely to leadership. A large number of definitions can be found in the literature e.g. Leadership is the art or process of influencing people so that they will strive willingly and enthusiastically toward achievement of group goals. Leadership is the ability of management to induce subordinates to work towards group goals with confidence and keenness. Leadership is the ability of a person to influence the thoughts and behaviour of others towards the accomplishment of some goals or goal. In summary, leadership is: The activity of influencing people to strive willingly towards group objectives. The process of influencing the activities of an individual or group towards goal achievement in a given situation. A process of giving purpose (meaningful directions) to collective effort and causing willing effort to be expended to achieve such a purpose. Getting people to move in certain directions, make decisions and support paths they would typically not have selected. The process of making sense of what people are doing together, so that they will understand and be committed to the goal. The process of articulating visions, embodying values and creating the environment within which things can be accomplished. -Leadership is a process not an individual position. -It involves a relationship between a leader and followers in a given situation. -Leadership is a complex concept involving the leader, the followers and the situation. -Leadership consists of activities and is directional. From the above definitions, we can say that managers lead by giving orders, handling disputes, supervising, disciplining and taking steps to improve employee performance. In so doing they use influence, power, authority, delegation of responsibility and be accountable. It is these components of leadership that managers use to direct the actions of their subordinates. DIFFERENCE BETWEEN LEADERSHIP AND MANAGEMENT Leadership and management are closely related activities but distinguishable. Leaders and managers are not different people, but can be the same individual performing both roles. In recent years, theorists and practitioners in management have noted that, to survive in the 21st century, organizations need a new generation of leaders, not managers. The fundamental difference between leaders and managers is that a manager focuses on the implementation of company policy while the leader tries to lead and inspire people to do their best for the company. A leader tries to cultivate a sense of commitment to the vision and mission of the company by inspiring the subordinates to willingly strive for the achievement of organizational objectives. A manager on the other hand manages employees by the power and authority delegated to him by his superiors. While leaders strive to conquer the volatile, turbulent and ambiguous surroundings that seem to conspire against business organizations, managers tend to surrender to them. In other words while managers administer, control, and accept the status quo, leaders innovate, inspire and change the status quo. From the foregoing it is obvious that to increase the performance of any organization, all managers should also be good leaders. The goal of leadership studies and leadership training is to turn managers into leaders so that they can become better managers. The Complementarity of management and leadership. According to Brewster (1999), leadership and management qualities are complementary. These characteristics may be summarized as follows. Management characteristics Administers and problem-solves. Works within a system. Focuses on control. Short range view. Accepts the status quo. Sets things in motion by means of methods and techniques. Attitude of doing.  Leadership Characteristics Innovates- means alertness to opportunities, uses imagination and vision to capitalize on them. Works on the system focuses on people. Inspires trust. Long range view. Challenges the status quo. Is a natural unforced ability to inspire people. Attitude of serving From the above characteristics, we can see that leadership is a broader concept than management. Effective Leadership. To be effective, a leader must win the hearts and minds of the followers. This requires a guiding vision and clear idea of what is to be accomplished. Effective leaders must be able to communicate their vision. Knowing what to do, but not being able to communicate this to others can be a major drawback to effective leadership. Communication means understanding each other as individuals and as members of larger groups. Often communication is not effective because of barriers such as poor communication skills, distortion or omission of information, wrong interpretation and lack of trust between the sender and the recipient. Successful organizations are associated with leaders who are able to communicate effectively their vision and strategy. TYPES OF LEADERS. Writers identify various types of leaders. Charismatic Leaders These are those whose influence is derived form the personality e.g. Napoleon, Kenyatta, Billy Graham, Nelson Mandela, Desmond Tutu etc. This type resides only in a few people and cannot be acquired by training it is natural. Traditional Leaders These are those whose position is assured by birth e.g. Kings, Queens, tribal chieftains etc. It is limited and not applicable to workplaces except in family businesses. Situational Leaders -Their influence is effective by being in the right place at the right time It is impromptu and temporary eg. One who steps to direct traffic in a jam. Appointed Leaders Refers to those whose influence arises from position e.g. managers and supervisors. It is a bureaucratic type of leadership where legitimate power comes from the position in the hierarchy. Functional Leaders Are those whose influence comes from the work done rather than position such as experts. LEADERSHIP AND POWER The concepts of leadership and power are closely related. Power is the capacity to influence others through the control of instruments of reward and punishment which can be tangible or intangible. Sources of Power are: Legitimate power derived from the position e.g. kingship, managerial Reward Power derived from control of resources e.g. promotion, recommendation, training etc Referent power derived from association with powerful people Coercive power uses the ability to force other people to act against their wishes through the fear of punishment. Expert power derived from the possession of expert knowledge or information that others need but have no alternative access. IMPORTANCE OF LEADERSHIP Leadership is important as it can make a difference to organizational performance. Leadership provides the spark that can raise morale of employees. Peter F. Drucker noted that: Leadership is a human characteristic which lifts a persons vision to highest heights, raises performance to higher standards and builds personality beyond its normal situations. Leadership can be said to be important in the following ways: Leaders not only guide, but provide a psychological shield to their followers (Managers employees) as the average person prefers to be led by an efficient and effective leader. The presence of a leader (manager), makes followers (subordinates) behaviour consistent, and raises morale, thus high quality of work. Creates and sustains teamwork and groups. The will to work and accomplish a task is triggered by effective leadership. Usually without leadership, a group disintegrates, destroys its team spirit and fritters away its energy. Leadership inspires and motivates the group. Leaders are role models who set examples. Leaders create confidence in the workers. Promotes morale which leads to high productivity and organizational stability. Maintains unity and cohesiveness of the group. Maintains discipline of the group and among group members. APPROACHES TO LEADERSHIP STUDIES Three approaches have been used in the study of leadership. These are: Trait Behavioural Situational/contingency (i) Trait Approach The earliest studies on leadership focused on the qualities of effective leaders such as bravery, loyalty, honesty, and compassion. However, as traits are many, research findings often disagreed on which are the most important traits. Keith Davis (1972), in human behaviour at work, summarized the traits and gave four general characteristics namely:- Intelligence leaders tend to have higher intelligence than their followers. Social maturity and breadth leaders tend to be emotionally mature and have broad range of interests. Inner motivation and achievement drives leaders want to accomplish things, achieve goals and are intrinsically motivated. Human Relations attitudes - leaders are able to work with others, and tend to respect others. NB: Not all leaders have these traits, and followers can also have them (they are not exclusive to leaders). Although positive correlations have been found between the above traits and effective leaders, examples of effective leaders exist who do have these traits. The trait approach was used before 1949, when the Great Man theory of leaders are born not made, a belief originating from the Greeks and Romans was in vogue. However, this school of thought was no longer acceptable after the rising influence of the behaviourist school of Psychology which emphasized that people are not born with traits, but made. Criticisms of the Trait Approach Not all leaders possess all the traits. Many non-leaders possess most of the traits. The trait approach gives no guidance as to how much of any trait a person should have. Research findings do not agree as to which are leadership traits and what their relationships are to instances of leadership. The so called traits are nothing but patterns of behaviour. (ii) Behaviourist Approach As a result of the failure of the trait approach to leadership, the focus shifted on the individual behaviours of leaders. The main concern was on the leadership styles of leaders. Leadership styles refer to the way a leader typically behaves towards his followers/group members. These styles have been classified into: Autocratic Leadership This approach refers to where all authority centers around the leader. The manager enforces decisions by use of rewards and punishments (ability to withhold or give rewards and punishment), communication is in one direction - from manager to subordinate and conformity and obedience on the part of followers is expected.       One way communication Compliance and obedience     Advantages: Decisions are made speedily as leader does not have to obtain groups approval. Useful where decision is unfavourable. Useful in cases where followers are incompetent. Disadvantages: Has negative effect on group morale decisions may not be supported. Can create yes mentality among group members. (ii) Democratic/Participative Leadership. Considers the suggestions of members and leader. It is a human relations approach where all group members are seen as important contributors to decision.   Democratic communication which allows an  interchange of ideas between all involved. persons   Advantages: - increased morale of members. - support for final decision. - better decisions through shared ideas. Disadvantages: - Slower decision. - Diluted accountability for decisions. - Possible compromises designed to please all. (iii) Laisser Faire Leadership Allow (them) to do style leadership exercises very little control or influence over group members. Members are given a goal and left alone to decide how to achieve it. Role of leader is facilitative.       Advantages Increased opportunity for individual development. All persons are given a chance to express themselves and function independently. Disadvantages Lack of group cohesion and unity toward org. goals. Lack of direction and control. Inefficiency and chaos. WHICH IS THE BEST LEADERSHIP APPROACH? It is not possible to say which style is best as it depends on the situation. A leader may be autocratic in one situation and democratic in another. LEADERSHIP STYLE THEORIES There are several theories of leadership styles and a few will be considered in this lecture. (i) Rensis Likerts Systems of Management. Likert developed four styles of management. As a proponent of participative management, he saw the effective manager as strongly oriented to subordinates where all group members including the manager adopt a supportive relationship. His four styles are based on differing assumptions about human behaviour e.g. McGregors Theory X & Y. System 1 Management Style: Exploitative Authoritative Managers are highly autocratic. Have little trust in subordinate. Motivate people through fear and punishment. Engage only in downward communication. Limit decision making to the top. Relationships with subordinate are distant. System 2 Management Style Benevolent Authoritative. Managers are paternalistic. Have a condescending confidence and trust in subordinates. Motivate with rewards and some fear and punishment. Limited upward communication. Limited delegation of decision making, but with close policy control. System 3 Management Style Consultative. decisions are made after discussion with subordinates. Substantial confidence and trust in subordinates. Managers try to make constructive use of subordinates ideas and opinions. Two way communication. Teamwork is encouraged and initiative Controls are much looser. System 4 Management Style Participative Group System Most participative style. Complete trust and confidence in subordinates. Get economic rewards on basis of group participation. Communication is up, down and lateral. Encourage decision making at all levels. Excellent productivity, low absenteeism and turnover. According to Likert, system 4 approach is the best. Leaders applying this system have had greatest success, departments are most effective in setting and achieving goals. Criticisms: Research focus was on small groups yet findings have been applied to the total organization. Research was conducted at lower organizational levels and is not supported when data from top level managers is separated. System 4 is more applicable when companies are profitable and not when in turbulence.  -The situation must be considered before making conclusion. -System 1 and 2 are derived from the Scientific School of Management, while system 3 and 4 are developed form the Human Relations School of Thought. -Management styles fall within a continuum ranging from total authoritarian to total democratic. (ii) The Managerial Grid This is a dramatized approach to leadership styles developed by Robert Blake and Jane Mouton in 1954 to show the importance of the managers concern for production and for people. The managerial grid is widely used for managerial training and identifying leadership styles. 1,99,9    5,5    1,19,1 Concern for production The Grid Dimensions: Concern for production conveys the attitudes managers have towards a variety of things e.g.: Quality of policy decisions, procedures and processes, work efficiency, volume of output etc Concern for people refers to degree of personal commitment toward goal achievement, self esteem of workers, responsibility and recognition, trust rather than obedience, good working conditions, satisfying interpersonal relations, job enrichment etc. Management Style (Impoverished Management). Managers have little concern for both people and production Job involvement is minimal The managers has practically abdicated the job and at best acts as a messenger conveying information along the chain of command. It is basically an inefficient management style. Management Style (Team managers executives). Possesses high concern for both people and production. Manager is able to integrate production needs and people needs It is considered the ideal or optimum style. Management Style (country club management or missionary). Has low concern for production and efficiency but emphasizes human relations and pays attention to human needs. Manager promotes an environment where everyone is happy, relaxed, and friendly. No one is concerned about putting forth coordinated effort to accomplish organization goals. Management Style (autocratic, task managers). Manager is concerned with developing efficient operations. Has little concern for human feelings. Manager is autocratic in leadership style. Management Style (Compromiser or benevolent autocratic) Manager has medium concern for people and production. Adequate but not outstanding morale and production. Manager has a benevolent autocractic paternalistic attitude towards people. Manager balances production and concern for people. Criticisms of the management grid The grid does not say why a manager falls in one part of the grid and not another. Or why one is an autocrat and not a compromiser. (iii) Situational or Contingency Approaches to Leadership. As a result of failure of the trait approaches, leadership studies turned to the study of situations and the belief that leaders are the products of given situations. This approach supports the follower theory that people follow those in whom they perceive (accurately or inaccurately) a means of accomplishing their own goals. E.g. The rise of Hitler, Jomo Kenyatta, student leaders, F.D. Roosevelt during the American great depression in the 1930s. Museveni in Uganda in 1985-86, Corazon Aquino in the Philipines and Nelson Mandela. Robert Tannenbaum and Warren Schmidt (1958) saw leadership as involving a variety of styles ranging from boss-centered to subordinate-centered. Their approach suggests a range of styles without preference for any. The concept of the continuum recognizes that a style of leadership depends on the situation e.g. Forces operating within the managers personality such as value system, confidence/trust in subordinates, feelings of security etc. Forces in subordinates that will affect managers behaviour e.g. need for independence, readiness to assume responsibility for decision making, tolerance for ambiquity, interest in problem, understanding goals of organization, knowledge and experience levels, sharing decisions. Forces in the situation e.g organization values and traditions, nature of the problem, pressure of time, trade unions, civil rights etc. (iv) Forces in the external environment: In a revised publication Tannebaum and Schmidt, recognized the forces in the external environment such as government legislation, political, social awareness and economic considerations as having an effect upon leadership style.  Managers therefore have to consider these forces before choosing an appropriate management style. Continuum of leadership style  The continuum suggests 5 basic styles: Tell, sell, consult, join, delegate. This approach emphasizes flexibility and sensitivity to the situation in which the leader and the group find themselves. Other variables in the situation are: The job, or tasks. Organizational environment. Characteristics of people/demographic differences. History/culture of the organization. The community in which the organization operates. Psychological climate of the group. Cultural influences. Time required to make decision. Nature of the decision/task. Situation: circumstances/conditions under which a leader operates. Condition: consists of anything that affects leadership. CRITICAL DIMENSIONS OF THE LEADERSHIP SITUATION - FIEDLER F. E. (1967) According to Fiedler, people become leaders because of various situational factors and the interaction between leaders and the situation. He describes these as: Position Power:-refers to the degree to which the power of the position enables group members to comply with leaders directions i.e. organizational authority. A leader with position power can obtain better followership than one without. Task Structure:- refers to the degree to which tasks are structural. Where tasks are clear, the quality of performance can be easily controlled and group members held responsible than where they are unclear. Leader- member relations:- refers to the extent to which group members like and trust the leader and are willing to follow. The better the relations, the easier it is for the leader to exercise influence. Based on the three dimensions, Fiedler postulated two styles of management task oriented and interpersonal relations oriented. Measures were carried out on these elements using the least preferred coworker scale indicating a favourable or unfavourable situation continuum. Findings Favourable situation in which the leader has power, informal backing and a structured task then the group is ready to be directed. When leader position power is weak, task structure is unclear, and leader-member relations are poor, the situation is unfavourable for the leader and a task-oriented leader is most effective. Where the situation was moderately favourable middle of the scale, then interpersonal oriented leader was most effective. Usefulness of Leadership Theories to Managers Participative/democratic styles of management are better than autocratic styles but extremes are not effective thus the continuum. Autocratic styles of management allow employees to satisfy lower level needs e.g. physiological, safety, but participative styles allow higher level needs to be satisfied e.g. recognition, responsibility and self-actualization. In reality people prefer to have control over work they do and seek opportunities to put into practice their ideas. Employees have valuable expertise, experience and initiative that is often untapped by management. Appropriate training in leadership can change a managers style of management if done early in the career. However, it is not easy as style is rooted in attitudes. The most difficult to change is the authoritarian, task-centred manager. Management can transfer such managers to an appropriate section to make full use of their abilities or restructure the work to suit their styles. LECTURE SEVEN MOTIVATION Lecture outline Introduction 7.2 Lecture objectives Explain the meaning of motivation Discuss the content and process theories of motivation Illustrate the application of motivation theories in the workplace Identify the challenges associated with employee motivation 7.1 Introduction  7.2 Lecture Objectives At the end of this lecture you should be able to: Define motivation Explain the consequences of unsatisfied needs Discuss the content and process theories of motivation Illustrate the application of motivation theories to the workplace Explain the challenges associated with employee motivation The study of motivation is a search for answers about human nature. Motivation is: a concern with why people do or refrain form doing something; an individuals internal process that energizes, directs, and sustains behaviour a personal force that causes one to behave in a certain way. the willingness to exert high levels of effort to reach or achieve a predetermined reward or goal. a force that kindles a burning desire for work or action and the readiness to work towards a goal or satisfy a need. Terms used in motivation Motivators: These refer to those things which induce an individual to perform e.g. higher pay, prestigious title, name tag, praise, recognition, responsibility etc It can be tangible or intangible. There are limitless ways in which managers can be innovative in the use of motivators. Satisfaction: Refers to the sense of contentment experienced when a need is satisfied. Intrinsic motivation: Refers to self-generated factors that influence people to behave in a certain way or to move in a particular direction. These factors may include responsibility, which involves the feeling that work is important, freedom to act, scope to use and develop abilities, interesting and challenging work and opportunities for advancement. Extrinsic Motivation: Refers to what is done by others to motivate people. For example rewards such as increased pay, praise, promotion and punishments such as disciplinary action, withholding pay or criticisms.  Extrinsic motivators have short-term effects while intrinsic motivators which are more concerned with the quality of working life are likely to have deeper and longer-term effects because they are inherent in individuals and not imposed from outside. Reward is the use of inducement in the form of money, promotion or security. It is a strong motivator, which should not be overlooked by managers. Punishment is the denial of a reward, use of threats and fear e.g. fear of loss of a job, loss of income, reduction of bonus etc. Punishment is a strong motivator but not sustainable because:- It can give rise to defensive or retaliatory behaviour such as union organization, poor quality work, indifference, dishonesty etc. It can create compliance from subordinates even for wrong decisions because managers have the power of their positions to give or withhold rewards or impose penalties. Reinforcement: Reinforcement suggests that success in achieving goals and rewards act as positive incentives and reinforces successful behaviour which is repeated next time a similar need emerges. The more powerful and frequent the reinforcement, the more likely it is that the behaviour will be repeated until it becomes an unconscious reaction to an event. Conversely, failures or punishments provide negative reinforcements, suggesting seeking alternative means of achieving goals Consequences of unsatisfied needs. Some needs are impossible to satisfy and this may result in some types of negative behaviours. Such irrational behaviours are as a result of failure to accomplish an individual goal. Aggression: This is destructive behaviour such as hostility (physical/verbal) and striking out. The feelings of rage or hostility are directed against the person or object that is felt to be the cause of the frustration. As it is not possible sometimes to attack the causes of frustration directly people may look for scapegoats. Rationalization: Means making excuses such as blaming someone else for inability to accomplish a goal e.g. I was not even interested in it anyway. Regression: Means not acting ones age by resorting to immature acts e.g. unreasonable complaining or crying. It relieves some of the tension, but has adverse effects on associates e.g. a person kicking a car when it cannot start. Fixation: Occurs when a person exhibits the same behaviour pattern several times even though the experience has shown that it can accomplish nothing. Research has shown that frustration can maintain old and habitual responses and prevent the use of new and more effective methods. Although habits can be broken when they bring no satisfaction or lead to punishment, fixation actually becomes stronger under such circumstances, e.g. the inability to accept change even when the facts show otherwise penalties even when they make the situation worse. Resignation (apathy): occurs when people lose hope of accomplishing their goals and withdraw from reality and the source of their frustration. Involves complete surrender and borders on serious mental disorders. This phenomenon is characteristic of people in boring, routine jobs, where they resign themselves to the fact that there is little hope for improvement of their goals.  Why managers should understand human behaviour. Be able to explain the behaviour of their subordinates. Knowledge will form the basis for people management activities such as performance appraisal and disciplinary action. Search for logic behind any behaviour though it may appear insane to the manager. THEORIES OF MOTIVATION The theories of motivation can be classified into content and process theories. Content or needs theories: These are the theories that focus explicitly on the content of motivation in the form of fundamental human needs. They are more concerned with the quantitative aspects of motivation i.e. what motivates people and what people seek in their work. Examples: Maslows Hierarchy of needs theory Herzbergs two-factor theory McClellands three basic needs Process or contemporary theories of motivation: These are the theories which attempt to develop understanding of the psychological processes involved in motivation. They are more concerned with the qualitative aspects and the dynamics of motivation i.e. how people are motivated and how rewards influence behaviour. They focus on the why and how of motivation. Examples: Latham and Lockes goal-directed theory Porter and Lawlers expectancy theory Adams equity theory Banduras self-efficacy theory Maslows Hierarchy of Needs (1943) Maslow was a psychologist and his theory has found wide application in many fields including management. He proposed that: Behaviours of human beings are motivated by needs. Individual needs can be classified into 5 broad categories. These 5 categories operate in a hierarchical manner, flowing from low order to high order needs as shown below:   High order needs    Low order needs  Physiological, safety and social needs are referred to as lower order or deficiency needs, because the absence of them make individuals deficient and existence as a human being is threatened. On the other hand, esteem and self-actualization are referred to as high order needs or growth needs as these make an individual become better at doing what they are expected to do: gain control and mastery over their environment in terms of technology, services etc. Maslows theory of motivation therefore states that: when a lower order need is satisfied, the next highest becomes dominant and the individuals attention is turned to satisfying this higher need. The most difficult need to satisfy is that of self-fulfillment. Psychological development takes place as people move up the hierarchy of needs, but not necessarily in a straightforward progression. The lower needs still exist even if temporarily dormant as motivators, and individuals constantly return to previously satisfied needs. The lowest unsatisfied need in the hierarchy is the one that motivates behaviour e.g. a deprived individual without basic needs will be directed towards finding food. The need for safety is dormant at that time. A satisfied need does not motivate behaviour. Once satisfied, it ceases to be a motivator, instead the next higher level need becomes active and motivates behaviour. Application of Maslows Hierarchy of Needs Theory. Physiological needs : Involves mainly payment of wages and salaries to enable people pay for their basic needs of food shelter and clothing. Safety needs: Provision of protective clothing, insurance and medical cover, pension schemes, housing and transport (in relation to safety), and job security. Social needs: Promoting family feeling, intimacy and closeness, use of first names, to break formality and reduce social distance, sharing facilities e.g. cafeterias, sports club etc, casual dressing to identify with each other and recognition of trade unions. Esteem needs: Supporting education, delegation of responsibility, titles and other status symbols, fringe benefits e.g. Cars; bonus; shares; office size and equipment. Self fulfillment needs: This is the apex of human needs and involves the need for realizing ones potentialities, continued self-development, feelings of accomplishment and attainment and being creative in the broadest sense possible. Organizations can facilitate and create an environment in which individuals can realize their potentialities e.g. writing, inventions, occupying important positions etc.  There are limits to how much organizations can provide to meet these needs as they are limited by resources Esteem needs are mainly applicable to managers as they sometimes make important business deals informally through informal networks such as clubs. As such, status symbols become important. It is also notable that as one moves up the ladder, fewer people benefit. Research findings have shown that: Managers generally have high order needs compared to those at lower levels. Employees in developed countries generally have higher order needs than those in poor countries. It appears, however, that Maslow never considered the above dimensions as he was concerned with individual employees.  Do employees in developed countries have higher order needs than those in poor countries? Do managers have higher order needs compared to lower level employees? Explain Weaknesses of the need hierarchy theory The five categories of needs are not mutually exclusive The order in which the needs must be satisfied is not supported by real life situations. The model only applies to typical healthy people. A sick person is unlikely to be satisfied by basic social or self-esteem needs. Research conducted to test the model have not supported its assumptions and predictions. Some of the basic concepts of the theory such as self-actualization are vague. HERZBERGS TWO-FACTOR THEORY OF MOTIVATION Herzberg (1959) conducted a study, which focused on job satisfaction primarily to find out the factors associated with job satisfaction. He collected data from a sample of 203 accountants and engineers based in Pittsburg, USA. From these findings he proposed that human beings have two basic needs; The need to avoid pain and survive. The need to grow, develop and learn. He also found that factors associated with feelings of happiness or satisfaction were concerned with the job itself while those associated with dissatisfaction were related to the environment in which the job was done. He came up with two sets of factors from which the theory was coined. Different terminologies have been used to refer to this theory. Satisfaction-related factors Satisfiers Motivators Motivators Job content factors Intrinsic factors Dissatisfaction related factors  Dissatisfiers Hygiene factors Hygiene or maintenance Job Context factors Maintenance Extrinsic factors Herzbergs findings showed that motivation can be explained by two factors: A group of needs which he called hygiene or maintenance needs as they serve to remove dissatisfaction. They are related to the job context e.g. Supervision Company policy and administration. Peer relations Working conditions Status Job security Pay Status Job title Job security, etc He explained that if these factors exist, then there is no dissatisfaction, if they do not then dissatisfaction results, but they are not motivators as such. A second group of needs he called satisfiers or motivators and these are related to the job content. They tend to increase job satisfaction e.g. Achievement Recognition Work itself Responsibility Advancement Possibility of growth etc. Application of Herzbergs two-factor theory- Job enrichment and job enlargement Herzberg suggested that jobs should be made more interesting and challenging so as to motivate employees. A great deal of interest has been directed at job satisfaction over the last decades as a popular technique for increasing employees motivation. The concept of job enrichment has been found to provide employees with an opportunity to: Perform more challenging and meaningful work. Utilize knowledge and skills more fully. Assume more authority and responsibility for planning, organizing, directing and controlling of work. Receive feedback on performance. Grow and develop Principles of Job Enrichment. Removing controls while retaining accountability Giving a complete unit of work Giving more authority Giving regular feedback to employees Giving new, difficult and challenging tasks  This theory assumes that employees are only motivated by enriched jobs and that every employee desires an enriched job. In your view are these assumptions true? What are the limitations of job enrichment as a motivator? Limitations of Job Enrichment Research findings have shown that not all employees are motivated by job enrichment as some: Are unable to tolerate responsibility. Dislike complex duties. Uncomfortable with group work. Dislike relearning new skills. Prefer security and stability. Uncomfortable with supervisory authority Skills are not adaptable. Prefer to quit their jobs. For organizations, enriched jobs may result in the following problems Supervisors roles may be reduced because of shared responsibility hence causing dissatisfaction. Enriched jobs may increase pay dissatisfaction because of increased responsibility. Costs in terms of training and development, new technology and more equipment e.g. computers may increase. Unions may oppose some job enrichment efforts for fear of loss of employment or decreased membership due to reduced desire to join unions by satisfied employees. Strengths of the two-factor theory Easy to comprehend. It was developed from an empirical study, hence has some validity. There are clear guidelines for applying it in the job setting. Weaknesses It uses too many and confusing terminologies. The research instrument was defective. Motivators and hygiene factors are not mutually exclusive, but interdependent e.g. salary can be both hygiene and a motivating factor.  Further research findings on job enrichment have shown that it is only those people with a strong need for personal growth, power and achievement that job enrichment will have some impact. For further reading, see the works of David McClelland and Arch Patton.(Koontz, ODonnel & Weihrich, Management-1984) Comparison of Maslows Needs Hierarchy with Herzbergs Two-factor Theory. Maslows needs theory and Herzbergs two-factor theory are similar in many ways. The high order needs of the need hierarchy represent motivators in Herzebergs theory, while lower order needs are similar to Herzebergs hygiene factors. Herzebergs two-factor theory Maslows hierarchy of needs Challenging work Achievement Growth in job Self-actualization Responsibility Advancement Recognition Esteem or ego Status  Inter personal relations Company policy and administration Social Quality of supervision Working conditions Job security Safety/securirty Salary Personal life Physiological PROCESS THEORIES OF MOTIVATION Process theories of motivation were proposed as alternatives and to fill the gaps not explained by the content theories. Process theories are more concerned with the cognitive antecedents that go into the motivation process. This include: expectancy theory by Victor Vroom (1964) and the Porter-Lawler Model (1968); Equity theory by Stacy Adams and Attribution theories and others. In this section we shall only discuss a few of these. Expectancy Theory of Motivation Victor Vroom developed this theory in 1964 as an alternative to the content theories of motivation. It refers to any situation or context where people have expectations from whatever they do. It states that motivated behaviour is increased if a person perceives a positive relationship between effort and performance i.e. the outcome. Based on this theory, extrinsic financial motivation works only when if the link between effort and reward is clear and the value of the reward is worth the effort. Managerial Implications of Expectancy Theory Strengthen employees effort and performance expectations by providing resources such as training, that enable employees to perform. Strengthen performanceoutcomerewards by linking performance with reward e.g. pay. Managers should be consistent and transparent about criteria used for promotion. Match rewards with employees performances. Recognize employees ability and ensure that it is used optimally. Provide employees with opportunity to perform e.g. enabling environment, resources, etc. Develop appropriate procedures for evaluating employee performance by measuring actual performance, aptitude and criteria for promotion. Equity Theory of Motivation This is a process theory advanced by Stacy Adams (1968). Equity refers to perception of fairness and justice in the treatment of people. If people feel that they are not being treated equitably, they feel aggrieved and this grief will affect their levels of motivation in different ways. In the workplace, employees compare themselves with their peers in terms of their contribution to the organization and in relation to what they get from the organization. They compare their ratio of inputs and outcomes with that of another person. Inputs: refer to the contributions made by an individual e.g. effort both physical and mental, time, education, training, experience, loyalty, useful contacts age, gender etc.. Outcome: refers to what is received in return for effort e.g. salary, fringe benefits, travel allowances, medical insurance cover, status symbols, autonomy, recognition, friendly environment etc. Examples of ratios of outcomes to inputs (i) Outcomes of A = Outcomes of B Satisfaction Inputs of A Inputs of B = (Equity) (ii) Outcomes of A < Outcomes of B = Underpayment Inputs of A Inputs of B (Inequity) (iii) Outcomes of A > Outcomes of B = Overpayment Inputs of A Outcomes of B (Inequity) Reactions of A In situation (ii), A will act on outcomes to restore equity i.e. where there is perception of underpayment by stealing from the organization, taking kickbacks, undermining B, joining trade unions or reducing effort. In (iii) A will attempt to restore balance by decreasing or increasing effort, e.g. working longer hours, producing quality work, being loyal and committed to organization etc, or by rationalizing or justifying the higher outcomes on the basis of experience, educational levels etc. (resorting to subjective distortion of As or Bs inputs). In situation (i), there is perception of equity, hence no problems. Equity is taken seriously by employees and management decisions and actions must be seen to be fair The striving to restore the outcome/input ratio to equity is used as the explanation of work motivation. Workers prefer equitable payment to over-payment. Research has shown workers on a piece rate system who felt overpaid reduced their productivity to restore equity. Goal Theory (Latham and Locke, 1979) It states that motivation and performance are higher when: Individuals are set specific goals Goals are difficult but accepted There is feedback on performance Goal theory is aligned to the concept of management by objectives (MBO) and it forms the foundation for performance management process. MOTIVATIONAL STRATEGIES AND CHALLENGES (Further reading- Armstrong, 2001, page 168-169) Strategies Money: It is an important motivator as it reflects on other motivators e.g. status, esteem, achievement etc. Hence it is complicated as it is entangled with other needs. Money has symbolic power its value comes from what it can buy. To increase the motivational value of money, an incentive plan/system should be introduced, as the extra money is usually spent on high-value extra items. Equitable salary structures in organizations lessens the importance of money as a motivator, hence Herzbergs contention that money is hygiene, not a motivator. Positive reinforcement: This idea was advocated by B.F. Skinner. He suggests that individuals can be motivated by designing their jobs well, praising good performance so that it can be repeated and removing barriers to performance and good communication. Participation: Having knowledge of what is happening and being asked to participate in solving problems is motivating to employees as it appeals to the need for recognition, affiliation and acceptance and it gives people a sense of accomplishment. Job Enrichment: Involves making a job more challenging and important by increasing scope of authority and responsibility. These can be achieved by: giving workers more say in deciding about work methods, task sequencing etc. encouraging subordinate participation and interaction among workers. Giving workers a feeling of personal responsibility for their tasks. Ensuring that people see the contribution of their tasks in the overall result. Giving feedback on performance.  Job enrichment appeals mainly to higher level needs such as status, esteem and self-fulfillment. Other strategies of motivation may include; promotion to higher responsibility, personal interest by manager, status symbols, training and development, monitoring, leadership style etc. Negative reinforcement or punishment: These should be avoided as it has the tendency of stimulating anger, hostility, aggression, and rebellion in workers. The motivational effects are only short term.  In your view to what extent do you think money can be used as a motivator? Challenges Motivation is a psychological and a social process. Although the theoretical concepts appear simple and straightforward, they are difficult to implement in real life because of the following:- Differences among people: People differ in their expectations; hence require different types of incentives. For example, while scientists, engineers and other professionals may have a stronger need for achievement, managers and politicians have a stronger need for power. Needs also differ because of demographic characteristics of employees such as gender, age, race, education, personal ambition, cultural background, occupation etc. Social and economic change: Changes that impact on peoples lifestyles, such as increased education, tastes and preferences, cross-cultural interactions mean that motivating techniques which worked a decade ago may not work today. Employees personal problems: Motivation can be effective only to a limited extent as people may have problems that are beyond management and cannot be solved by motivation. Lack of resources: Organizations may be willing to motivate its employees, but may lack the resources to do so. This is especially so for financial motivators. Motivation is an internal instinct: motivation by nature is an internalized process that comes from within the individual. Reinforcements are only needed to activate it. Thus a manager can give only encourage it, but the actual and effective motivation will depend upon the internal will of the employee. Motivation is situation oriented: Variables in motivation situation are, the motivator, the motivated, the motivational technique and the motivational circumstances all of which affect the motivational outcome. To achieve a positive outcome, all four must be in congruence- which almost impossible. Given the complexity of motivation in the light of varying personalities and situations it is clear that risks of failure exist when any group of motivators are applied without taking into account all the variables. Lecture summary  Human behaviour is complicated and must be looked upon as a system of variables and interactions. Motivating factors do not exist in a vacuum. In an organization people operate in a field of restraining and driving forces. The actual behaviour will depend on the strength of these counteracting forces. Managers can improve productive effort by reducing restraining forces or by strengthening driving forces. Individual desires are conditioned by physiological and cultural needs and the organizational climate in which they operate. Climate may repress or arouse motives. Managers who, if effective would certainly also be leaders must respond to the motivational needs of individuals by designing a climate that will arouse motivation. Managers can design an environment for performance by setting goals, developing and communicating strategies and making plans to achieve objectives. In short managers can motivate employees by carrying out effectively their core functions of planning, organizing, leadership, control and staffing. LECTURE EIGHT COMMUNICATION Lecture outline 8.1 Introduction 8.2 Lecture objectives Explain the meaning of communication 8.4Describe the process of communication Discuss the importance of communication in organizations Discuss the channels of communication Explain the barriers to communication 8.9 Summary 8.1 Introduction  8.2 Lecture objectives: At the end of this unit you should be able to: Explain the meaning of communication Describe the process of communication Discuss the importance of communication in organizations Discuss the channels of communication Explain the barriers to communication 8.3 The Meaning of Communication Communication is a human skill and the ability to communicate effectively is one of the major skills of a manager. According to research, managers spend between 70% - 90% of their working hours in communication broken down as follows: 5% writing, 10% reading., 35% talking, 50% listening. Such communication plays a vital role in managerial decision-making. People often communicate through signals such as facial expressions, gestures etc. Communication is a word derived from the Latin word communis, which literally means common, to share, impart, convey or transmit. It is the process through which two or more persons come to exchange ideas and understanding among themselves. Communication is the sum of all the things one person does when he wants to create understanding in the mind of another. It involves a continuous process of telling, listening and understanding. The word communication describes the process of conveying messages (facts, ideas, attitudes and opinions) from one person to another so that they are understood.  Communication involves: More than one person. Deals with the transmission of both facts and feelings. Many media of communication. A continuous process. Depends upon proper understanding of message, and response. Communication involves more than transmission and receipt of message. Correct interpretation and understanding are more important. Hence the greater the degree of understanding, in the communication, the more likelihood the human action intended will proceed in the desired direction. The Communication Process The Shannon Weaver Model of Communication This model was developed in electronic communications and has been adapted by behavioural scientists very successfully to explain human communications. Their model had five elements.  Noise zone  Source Transmission Signal Receiver Destination  Feedback The communication process is dynamic rather than static. The relationships in the process are continuous and flexible and are subject to change. It affects and is affected by many variables. The communication process is often depicted as having the following elements. SOURCE SENDER IDEAS ENCODING CHANNELS RECEIVING DECODING  FEEDBACK Sender: The person who intends to make contact with the objective of passing information and ideas to another Person. Idea: The subject matter of communication e.g. an opinion, attitude, feelings, views, orders, or suggestions. Encoding: Since the subject matter of communication is abstract and intangible, its transmission requires the use of symbols such as words, actions or pictures; conversion of the subject into symbols is the process of Encoding. Channel: Medium through which message is transmitted. Receiver: The person to whom message is directed. Decoding: The process by which the receiver converts the symbols received by the sender to give meaning to the message. Feedback: Process of ensuring that the receiver has received the message, understood and interpreted it in the sense that the sender has meant. TOPIC 2: IMPORTANCE AND GROWTH OF COMMUNICATION Topic objectives: At the end of this topic you should be able to: Explain the importance of communication to management Discuss the factors that have led to the growth of communication in organizations The importance of communication in organizations, is well recognized, - it serves as the lubricant fostering the smooth operations of the management process. Some of the important reasons are: Forms the basis for coordination Increasingly large and complex organizations with high degree of specialization and division of labour with large number of employees require effective coordination which can only be achieved through communication. Smooth working of the enterprise Process of communication makes cooperative action of people possible. Without communication organized activity ceases to exist. Basis for Decision-making Communication is the primary requirement for decision-making. In its absence, it may not be possible to take any meaningful decision, as information must be received before any decision can be made or implemented. Increases managerial efficiency Communication is essential for quick and systematic performance of managerial functions. Management conveys the goals, targets, instructions, job allocations and responsibilities, and performance of subordinates through communication. Promotion of cooperation and industrial peace High productivity is the aim of management. This can only be achieved when there is industrial peace in the organizations and mutual cooperation between management and workers. Downward communication helps management tell workers their expectations while upward communication helps workers put their grievances, suggestions or reactions to management. Establishment of effective leadership Communication is the basis of direction and leadership. It is a process of influencing others behaviour. By developing communications skills and using them, managers become effective leaders. Morale building and motivation Communication is the basis of participative and democratic pattern of management. It improves good human relations in industry. An efficient system of communication enables management to change attitudes, motivate and build morale hence employee satisfaction.  Most of the conflicts in business are not basic, but are caused by misunderstood motives and ignorance of the facts. Proper and timely communication between the interested parties, reduce the points of friction and minimize those that are inevitable. Bernard Chester wrote. The first executive function is to develop and maintain a system of communication. Factors Responsible for Growing Importance of Communication Growth in size of organizations Complex and large organizations have several levels in the hierarchy, and many employees. Direct contact is not possible, hence a communication system to direct all their activities. Growth of trade unions Cooperation between organizations and trade unions is essential for industrial peace. This can only be achieved through an efficient communication system e.g. collective bargaining process, negotiations etc. Technological Developments Rapid change in technology affects the composition of groups, relationships between managers and subordinates, and methods of work. The necessary adjustments in the social, organizational and physical aspects of work can only be possible through communication. Emphasis of human relations in industry The growing importance of human relations in industry and the desire of management to maintain it has necessitated communication. The change of employer relationship from master-servant to partnership or associates helps in the attitude change process. The work of research psychologists and sociologists Their findings and conclusions have increased knowledge of the nature and process of communication. Activity: In what ways do you think lack of effective communication can be a source of conflict between managers and employees? CHANNELS OF COMMUNICATION Topic objectives: At the end of this topic you should be able to: State the major channels of communication Explain the advantages and disadvantages of the various channels of communication Communication Channels The major channels of communication are: Words Actions Pictures Numbers Words. Words are like a map that purports to represent a certain territory. The map is not the territory but the representation and so are words. The meaning of a word is easy when it represents a tangible object e.g. cup or book but more difficult when it refers to abstract concepts such as management, labour, levels etc. People will assign different meanings to the same word because they have different frames of reference due to background, culture, education, experience or associates. Words constitute the most important symbols in the communication process. They can be oral or written. The important skills required are: Reading, writing, speaking and listening. Verbal/Oral Communication Refers to exchange of ideas between sender and receiver through oral words face to face or telephone, radio call e.t.c In Organizations this can take the form of; personnel instructions, management conferences, interviews e.t.c. Advantages. Easy to clarify a point. High degree of potential for speedy exchange of information timely. Effective as can be used together with non-verbal communication e.g. gestures, guttural sounds, tone of voice etc. Popular preferred by managers and supervisors. Gives opportunity to employees to ask questions and participate in the discussion boosts morale. Disadvantages. Absence of any permanent record of communication. Not taken seriously by receiver hence objective of communication is not achieved. Possibility of misquoting or misinterpretation especially where relations may be strained between superior and subordinate. Written Communication When communication is put in written form it becomes written communication. In organizations, these appear in the form of; - letters, circulars newsletters, reports, budgets, rulers, orders, regulations, policies, schedules, manual, etc. Includes other symbols such pictures, graphs, charts etc Advantages. Stored as record for future reference. Communication effort is minimized by simultaneous communication to various points e.g. a circular to all employees. Enables communication between distantly placed parties without much cost. Orderly and binding on subordinates. Enable superiors to take suitable actions based on recorded communications. Disadvantages. Time consuming in preparation and understanding (reading and interpreting). Chance of misunderstanding. Can be more costly than oral communication. Actions Actions can be used as a non-verbal form of communication e.g. body language, facial expressions, gestures, tone of voice/pitch of voice, etc. It can also take the form of physical actions such as location of ones desk, removal of equipment or furniture, searching drawers/opening ones cabinet/office, delays etc A manager is the center of attention to subordinates. All observable acts communicate something to the observer whether intended or not by the supervisor. When unexplained actions by management occur, a vacuum of meaning is thereby created which is filled by the receivers own interpretation of the actions. If an action is not explained, the receiver will supply the missing signal by creating one of his own. Pictures Pictures are powerful means of conveying meaning and understanding to other people. This is demonstrated by cartoons, films, TV, photographs etc. Important, accurate and comprehensive reports, have been given little attention because of the complexities of reading, but the use of charts, graphs, posters etc. can convey more meaning sometimes than volumes of long, uninterrupted passages of writing. A chart or graph has the advantage of depicting many complex relationships in one picture, contrasts, trends, etc can be seen and grasped more clearly. Common Pictures in Business are: curves, bar graphs, columns, circles, pie charts, pictorial, maps, organization charts, ranking and frequency distributions. Numbers. It has generally been found that people are impressed by numbers figures and statistics. Acceptance and belief also confidence tend to rise for a report that has data statistics e.g. percentages, proportions, etc. Numbers however can be misleading as they can be manipulated by unscrupulous people. Skillful use of numbers can be applied to lead or mislead. Listening Listening is the process of receiving communication signals. People speak at the rate of 120-160 words per minute and the discrepancy between the speeds of speaking and listening and thinking speed is four times faster i.e. 480-640 words per minute. However, this is an obstacle to effective communication because: Leads the listener to only listen marginally/poorly. Fast thinking makes people think ahead on what they are going to reply. Listening is not passive but active. Effective listening results in 50% retention immediately after a 10-minute talk, and 25% decline after 48 hours. Three types of listening have been identified. Marginal Evaluation Projective Marginal A process of giving the listener a small degree of ones attention. It is dangerous as it can lead to misunderstanding of the speaker and can be seen as an insult also. Managers who pretend to listen while their minds are on other things eventually get into trouble with their subordinates. What are the likely repercussions of an unattentive manager? Rebellion and low morale. Evaluative Process of attentive listening, involves judging and evaluating the remarks, disapproving or approving what is being said from our own point of view. This way we have two ideas, the speakers and the listeners, neither of which is communicated to the other. The task of understanding what the other is trying to say is not achieved. Projective The process of purposely avoiding to criticize, approve or disapprove the speakers ideas. It is attempting to project oneself into the mind of the speaker and try to understand their viewpoint without evaluation. As Carl Rogers puts it; Each person can speak for himself after restating the ideas and feeling of the previous speakers accurately and to that speakers satisfaction. E.g. what I hear you say is ---------- is that correct. The quality of empathy is essential to good listening. TOPIC 4: TYPES OF COMMUNICATION Topic objectives: At the end of this topic you should be able to: State the various types of communication Discuss the benefits and weaknesses of grapevine communication Several types of communication can be identified in a business organization. According to organizational structure. Formal communication. Associated with the formal organizational structure. Information travels through the officially recognized positions in the organization chart. E.g. orders, instructions, decisions, rules, procedures, policies etc maybe written or oral. Informal communication Also known as the grapevine. They are free from all sorts of formalities. Based on friendship, membership of a group/club, or origin of place, e.g. opinions, views, comments, suggestions, complaints, rumours, whispers, gossip etc may use symbols such as glance, gestures, nod or silence, anonymous letters etc. According to direction of communication. Downward communication Communications that flow from superiors to subordinates. Include orders, instructions, ruled, policy directives etc. They are directive in nature. Upward communication Reverse of downward communication, flows form subordinates to superiors. Includes reaction and suggestions from workers, grievances, and disputes. They maybe in the form of reports, proposals, memorandums, etc. Upward communication is now considered to be a main source of motivation. Horizontal communication Refers to communication between persons at the same level in the management hierarchy. Also known as lateral or cross-wise communication e.g. meeting of general managers, Divisional heads etc. can be oral or written. According to way of expressions Oral/verbal communication. Exchange of ideas/information occurs through face to face conversation or mechanical media e.g. Telephone, loud speaker, radio call etc conferences, seminars, workshops, interviews, consultations are other media. Written communication. Takes the written form (black & white) includes written words, pictures, graphs, diagrams, maps, etc. They may take the form of circulars, personal letters, memos, manuals, reports etc. Grapevine Communication The informal channel of communication is also known as the grapevine. It results from the operation of social forces at the workplace. The term arose during the days of the American Civil war when intelligence telephone lines were strung loosely from tree to tree like grapevine plants and the message was usually distorted, hence any rumour was popularly referred to as the grapevine. Today all types of informal communication are referred to as the grapevine. Although the grapevine exists outside the official network, it continuously interacts with it. Advantages. -Operates with much greater speed than the formal communication network. -Appropriate for some subject matters which do not require the formal channel e.g. when management wants to sound out the feelings of employees before formalizing a rule or policy. -Satisfies the needs of persons who like to mix up with others freely and chat. -Can compensate for an inadequate or non-existent formal communication network. Disadvantages. -Disorderly and unreliable hence cannot be acted on. -Difficult to assign responsibility for false information as it is hard to pinpoint the source. -Negatively affect productivity as rumours can lower morale and much time is taken in rumour mongering. Evaluation of Communication Network. There are several methods for evaluating the effectiveness of communication: Attitude surveys. Employee relations index a measure of the smooth flow of communication. Clarity Fog index and reading ease measures of readability and understanding. Communication Audit- measures of information known to different individuals. Records safety, accidents and labour turnover may indicate understanding of communication by employees. Observing practice Activity: Using examples from an organization of your choice, explain some of the ways in which the effectiveness of communication can be evaluated? TOPIC 5: BARRIERS TO COMMUNICATION Topic objectives: At the end of this topic you should be able to: State the barriers to communication Discuss the obstacles to effective management in organizations Communication does not always give the desired results due to certain barriers or obstacles. These are classified as follows: Semantic Barriers These arise from the linguistic capacity of the parties e.g. Badly expressed message lack of clarity and precision, poorly chosen and empty words, phrases, careless omission, lack of coherence, bad organization of ideas, bad sentence structure, inadequate vocabulary, jargon, etc. Faculty Translation managers often receive communications from superiors which must be translated into appropriate language suitable for lower levels of employees e.g. policy decisions etc. If the translation is faulty or inaccurate, it is misunderstood. Unclarified assumptions uncommunicated assumptions are common in most messages, so others have to read between the lines. Specialists language (jargon) some groups eg. Legal, insurance or personnel develop a special, peculiar and technical language of their own. This increases their isolation thus building a communication barrier. Emotional/psychological barriers. The meaning ascribed to a message depends upon the emotional or psychological status of the parties involved e.g. Premature Evaluation the tendency to evaluate (judge) communications instead of being neutral during the interchange of ideas. Such evaluation interferes with the transfer of information form the sender. Inattention the pre-occupied mind of the receiver and resultant non-listening is a major chronic psychological barrier. It is the reason why people fail to respond to notices, circulars, memos etc. Loss by transmission and retention when communication passes through various levels in the organization, successive transmission of the same message decreases accuracy. In oral communication about 30% of the message is lost. Poor retention is also common. Employees retain about 50% of information which superiors retain about 63%. Undue reliance on the written word written word cannot substitute for face-to-face relationships. Employees do not accept managements views through publications unless level of trust and confidence is very high. Distrust of Communication arises out of illogical decisions or frequent changes of the original communication by the communicator. Repeated experience of this kind gradually conditions the receiver to delay action or to act unenthusiastically, hence making communication unsuccessful. Failure to communicate managers may fail to transmit needed messages because of laziness, procrastination, hoarding information to embarrass, or assuming that everybody knows. Organizational barriers. Organizational Policy general organizational policy regarding communication acts as an overall guideline to all. However if the policy is not supportive to the flow of communication in different directions, communication flow would not be smooth and adequate. Organizational rules regulations These affact the flow of communication by prescribing the subject matter to be communicated, the channel of communication, restrictions on what and who to communicate, etc. These specifications may cause delays and work against the willingness of persons to convey the message. Status Relationships the superior subordinate relationship may block particularly upward communication. The greater the difference between hierachical positions, the greater the possibility of communication breakdown. Organizational facilities/communication infrastructure. Personal barriers. Barriers in superior: e.g. Attitude of superiors this affects the flow of messages in different directions. Unfavourable attitude means messages would not flow properly to and from superiors/subordinates. Fear of challenge to authority superiors, when ambitious and want to maintain their power and authority may withhold information coming down the line or going up if it will expose their weaknesses. Insistence on proper channel in exercise their authority superiors insist on communication passing through them. However, if by passed they may block other communication as they see this as thwarting of their authority. Lack of confidence in subordinates generally, superiors perceive their subordinates as less competent and incapable, hence their suggestions, advice etc are ignored. This works against upward communication. Ignoring communication sometimes superiors consciously and deliberately ignore communication from their subordinates to maintain their importance. This works against the willingness of subordinates to communicate. Lack of time superiors feel whether correct or otherwise that their workload is heavy and have little time to talk to subordinates. Lack of awareness superiors sometimes lack awareness about the significance and usefulness of communication in different directions in general, hence blocking the flow of communication. Barriers in Subordinates: e.g. Unwillingness to communicate subordinates may feel that the information may have adverse effect on their future relations with the superior, or there is no mutual trust and confidence with superior etc. He would not be willing to communicate. Lack of incentive What do you think are some of the actions that a human resource manager can take to overcome the obstacles to communication in an organization? LECTURE TEN: GROUP DYNAMICS 10.1 Lecture outline 10.2 Introduction 10.3 Lecture objectives 10.4 Group processes 10.5 Formal and informal groups 10.6 Summary LECTURE ELEVEN: ORGANIZATIONAL CHANGE AND DEVELOPMENT Lecture outline 9.1 Introduction 9.2 Lecture objectives 9.3 Theories of change 9.4 Change management 9.5 Organizational development 9.6 Summary 9.1 Introduction The concept of organizational change is in regard to organization-wide change, as opposed to smaller changes such as adding a new person, modifying a program, etc. Examples of organization-wide change might include a change in mission, restructuring operations (e.g., restructuring to self-managed teams, layoffs, etc.), new technologies, mergers, major collaborations, "rightsizing", new programs such as Total Quality Management, re-engineering, etc. (Armstrong P. 25) In this context managers have to be able to introduce and manage change to ensure the organizational objectives of change are met, and they have to ensure that they gain the commitment of their people, both during and after implementation. Often, at the same time, they also have to ensure that business continues as usual. For these reasons, it is important that the way change is managed is carefully considered by organizations. Whilst each change situation will be unique, there are still a number of common themes that will help ensure that the change process stands the greatest chance of success. 9.2 Lecture objectives The different models of change Much has been written on the subject of change, and various models of change proposed. Three main, contrasting models are from Lewin and Beer and Shaw. Lewin's model This model considers that change involves a move from one static state via a state of activity to another static status quo. Lewin specifically considers a three-stage process of managing change: unfreezing, changing and re-freezing. The first stage involves creating a level of dissatisfaction with the status quo, which creates conditions for change to be implemented. The second stage requires organising and mobilising the resources required to bring about the change. The third stage involves embedding the new ways of working into the organisation. (Hayes p.56) Beer's model Beer and colleagues advocate a model that recognises that change is more complex and therefore requires a more complex, albeit still uniform set of responses to ensure its effectiveness. They prescribe a six-step process to achieve effective change. They concentrate on 'task alignment', whereby employees' roles, responsibilities and relationships are seen as key to bring about situations that enforce changed ways of thinking, attitudes and behaving. Their stages are: Mobilize commitment to change through joint diagnosis. Develop a shared vision of how to organise. Foster consensus, competence and commitment to shared vision. Spread the word about the change. Institutionalise the change through formal policies. Monitor and adjust as needed. Shaw's model This model looks at change in a different form. Change is seen as both complex and also evolutionary. The starting point for their (and a number of other more recent models) model is that the environment of an organisation is not in equilibrium. As such the change mechanisms within organisations tend to be 'messy' and to a certain extent operate in reverse to the way outlined by Lewin. It is not appropriate to consider the status quo as an appropriate starting point, given that organisations are not static entities. Rather the forces for change are already inherent in the system and emerge as the system adapts to its environment. Resistance to change can be defined as an individual or group engaging in acts to block or disrupt an attempt to introduce change. Resistance itself can take many different forms from subtle undermining of change initiatives, withholding of information to active resistance e.g. via strikes. Resistance to change can be considered along various dimensions: individual versus collective passive versus active direct versus indirect behavioural versus verbal or attitudinal Minor versus major. Similarly two broad types of resistance can be considered: Resistance to the content of change - for example to a specific change in technology, to the introduction of a particular reward system. Resistance to the process of change. This concerns the way a change is introduced rather than the object of change per se, for example, management re-structure jobs, without prior consultation of affected employees. Management need to be aware of these different criteria to ensure they respond appropriately. Suggested reasons for resistance include: loss of control, shock of new, uncertainty, inconvenience, threat to status, competence fears. It is important to try to diagnose the cause of employee resistance as this will help determine the focus of effort in trying to reduce/remove the issue. Change Management: Four Basic Strategies These can be considered as the different strategies and procedures that are used to categorise the change environment. The relevance of different change strategies is that they build upon different assumptions about human motivation and hence willingness to engage in change at a particular point in time. These strategies are not intended to be mutually exclusive. Rather they may each be appropriate at a different stage of a particular change process. Once the environment is identified, an effective implementation plan can be composed. (Molloy & Whittington pg. 52) StrategyDescriptionRational-EmpiricalPeople are rational and will follow their self-interest once it is revealed to them. Change is based on the communication of information and the proffering of incentives.Normative-ReductivePeople are social beings and will adhere to cultural norms and values. Change is based on redefining and reinterpreting existing norms and values, and developing commitments to new ones.Power-CoercivePeople are basically compliant and will generally do what they are told or can be made to do. Change is based on the exercise of authority and the imposition of sanctions.Environmental-AdaptivePeople oppose loss and disruption but they adapt readily to new circumstances. Change is based on building a new organization and gradually transferring people from the old one to the new one.Individual change initiatives are not always undertaken as part of a wider coherent change plan, for example through considering linkages between strategy, structure and systems issues. Therefore a change that considers a new structure but fails to establish the need to introduce new systems to support such a structure is less likely to succeed. Lack of effective project management and programme management disciplines can lead to slippages in timings, in achievement of desired outcomes, in ensuring that the projects do deliver as planned. Insufficient, relevant training, for example in project management, change management skills, leadership skills can all impact negatively on the effectiveness of any change initiative. Poor communication has been linked to issues surrounding the effectiveness of in achieving effective change in various ways. For example, imposed change can lead to greater employee resistance. Lack of effective leadership has been identified as an inhibitor of effective change. What can be done to make change management more effective? Effective leadership is a key enabler as it provides the vision and the rationale for change. Different styles of leadership have been identified, for example coercive, directive, consultative and collaborative. These different styles may each be appropriate depending on the type and scale of change being undertaken. For example, when there is a large-scale organisation-wide change a directive style has been identified as most effective. Appropriate and timely training is frequently identified as key to effective change. Examples of training requirements might include: project and programme management skills to ensure change initiatives are completed both on time and to budget change management skills, including communication and facilitation Leadership and coaching. Two-way communication with employees and their active involvement in implementation has also been identified as a key enabler of change. Active participation is one suggested means of overcoming resistance to change. However, research has indicated that part of the communication/participation issue might arise from a potential mismatch between what the employer and employee opinions are regarding levels of communication. Finally, linking all the change agendas within an organization coherently, rather than completing changes in isolation is vital to ensure that change effectiveness is maximised. Seven areas of activity that make successful change happen - 'the seven c's of change': Choosing a team. Crafting the vision and the path. Connecting organization-wide change. Consulting stakeholders. Communicating. Coping with change. Capturing learning. The best approaches to address resistances are through increased and sustained communications and education. A plan should be developed and communicated. Plans do change. That's fine, but communicate that the plan has changed and why. Forums should be held for organization members to express their ideas for the plan. They should be able to express their concerns and frustrations as well.( Kinnie & Rabinowitz 2007) Human Resource Role in change management People management and development professionals have significant role to play in any change management process. Human Resources involvement in certain areas was identified as sometimes being the difference between successful and less successful projects: Involvement at the initial stage in the project team. Advising project leaders in skills available within the organisation identifying any skills gaps, training needs, new posts, new working practices etc. Balancing out the narrow/short-term goals with broader strategic needs. Assessing the impact of change in one area/department/site on another part of the organisation. Being used to negotiating and engaging across various stakeholders. Understanding stakeholder concerns to anticipate problems. Understanding the appropriate medium of communication to reach various groups. Helping people cope with change, performance management and motivation. Organizational change is increasing, yet the high level of failure indicates that effective management of these changes is still lacking. Such a gap indicates that there is much to learn about how to manage change more effectively. At present, Human Resource professionals are not always seen as having the appropriate skills to lead on change management initiatives, and are therefore not actively included within the change process. However, many of the issues that are identified concern the 'people aspects' of change. Human Resources would therefore appear to be ideally placed to ensure such issues are appropriately and effectively addressed. To achieve this aim Human Resources will need to ensure it has the skills and credibility within the organization to act as champions of change in the future. RESISTANCE TO CHANGE IS A HUMAN TRAIT FOR ATTEMPTING TO PRESERVE THE EXISTING STATE OF AFFAIRS. TO FIND OUT THE ROLE OF HUMAN RESOURCE MANAGER IN REDUCING STAFF RESISTANCE TO CHANGE Overview 1. Abstract 2. Introduction 3. Forces of change 4. Why organization change is resisted? 5. Barrier to change 6. Role played by HRM in reducing resistance 7. Research gaps 8. Conclusion and recommendations 9. References According to Mullins (2005) change is a shift of alteration in the present situation. This shift may be in the way we perceive thins or how items are organized, processed, created or maintained. There are two main types of change namely, strategic which is concerned with organizational transformation and operational change. Operational change relates to new systems, procedures, structures or technology which normally will have an immediate effect on working arrangements with the organization. There are times when organizations are likely to change and times during which change is less likely. In general, change is likely to occur when the people involved believe that the benefits associated with making a change outweigh the costs involved. The factors contributing to the benefits of making a change are as follows: the amount of dissatisfaction with current conditions the availability of a desirable alternative The existence of a plan for achieving the alternative. Theorists have claimed that these three factors combine multiplicatively to determine the benefits of making a change. Thus, if any one of these factors is zero, the benefits of making a change and the likelihood of change itself will be zero. People are unlikely to initiate change if they are not at all dissatisfied or if they do not have any desirable alternative in mind (or any way of attaining that alternative, if they do have one in mind).Of course, fro change to occur, the expected benefits must outweigh the likely costs involve, for example disruption, uncertainties. FORCES FOR CHANGE The forces for change can be classifieed conveniently into two groups: external forces and internal forces. External forces are beyond managements control. Internal forces operate inside the firm and are generally within the control of management. External forces organizations seldom undertake significant change without a strong shock from their environment. The external environment includes many economic, technological, and social/political forces that can trigger the change process. Those who study and practice organizational change agree that these environmental triggers are necessary but not sufficient to initiate change. Change also involves manages who are aware of the need for change and who take action. The HRM has historically been concerned with reacting to economic forces, technology and social and political change. Internal forces Internal forces for change within the organization can usually be traced to process and behavioral problems. The process problems include breakdowns in decision making and communications. Decisions arent being made, are made too late, or are of poor quality. Communications are short-circuited, redundant, or simply inadequate. WHY IS ORGANIZATIONAL CHANGE RESISTED? Although people may be unhappy with the current state of affairs confronting them in organization, they may be afraid that any changes will be potentially disruptive and will only make thing worse. Indeed, fear of new conditions is quite real and it creates unwillingness to accept change. Organizational scientists have recognized that resistance to change stems from both individual and organizational variable. Individual barriers to change Researchers have noted several key factors that are known to make people resistant to change in organizations. These are as follows: Economic insecurity because any changes on the job have the potential to threaten ones livelihood by either loss of job or reduced pay some resistance to change is inevitable. Fear of the unknown employees derive a sense of security from doing things the same way, knowing whom their coworkers will be, and whom they are supposed to answer to from day to day. Disrupting these well-established, comfortable patterns creates unfamiliar conditions, a state of affairs that is often rejected. Threats to social relationships: as people continue to work within organizations, they form strong bonds with their coworkers. Many organizational changes (for example the reassignment of job responsibilities) threaten the integrity of friendship groups that provide valuable social rewards. Habit: jobs that are well learned and become habitual are easy to perfume. The prospect of changing the way jobs are done challenges people to develop new job skills. Doing this is clearly more difficult than continuing to perform the job as it was originally learned. Failure to recognize need for change: unless employees can recognize and fully appreciate the need for changes in organizations, any vested interest thy may have in keeping things the same way may overpower their willingness to accept change. Organizational barriers to change Resistance to organizational change also stems from conditions associated with organizations themselves. Several such factors may be identified Structural inertia. Organizations are designed to promote stability. To the extent that employees are carefully selected and trained to perfume certain jobs are rewarded for doing them well, the forces acting on individuals to perfume in certain ways are very powerfully determined- that s , jobs have structural inertia. Thus, because jobs are designed to have stability it is often difficult to overcome the resistance created by the forces that create stability. Work group inertia. Inertia to continue performing jobs in a specified way comes not only from the jobs themselves but also from the social groups within which people work-work group inertia. Because of the development of strong social norms within groups (see Chapter 9), potent pressures exist to perform jobs in certain ways. Introducing change disrupts these established normative expectations, leading to formidable resistance. Threats to the existing balance of power. If changes are made with respect to who is in charge, a shift in the balance of power between individuals and organizational sub-units is likely to occur. Those units that now control the resources, have the expertise, and wield the power may fear losing their advantageous positions resulting from any organizational change. Previously unsuccessful change efforts. Anyone who has lived through a past disaster understandably may be reluctant t endure another attempt at the same thing. Similarly, groups or entire organizations that have been unsuccessful in introducing change n the past may be cautious about accepting further attempts as introducing change into the system. THE ROLE OF HUMAN RESOURCE MANAGER IN REDUCING STAFF RESISTANCE STO CHANGE Since organizational change is inevitable, mangers should be sensitive to the barriers to change so that resistance can be overcome. This, of course, is easier said than done. However, several useful approaches have been suggested, and the key ones are summarized here below. Shape political dynamics For change to be accepted, it is often useful (if not absolutely necessary) to win the support of the most powerful and influential individuals in the company. This builds a critical internal mass of support for change. The HRM should demonstrate clearly that key organizational leaders endorse the change. This is an effective way to get others to go along with it either because they share the leaders vision or because they fear the leaders retaliation. Either way, their support will facilitate acceptance of change. Educate the workforce Sometimes people are reluctant to change because they fear what the future has in store for them. Fears about economic security, for example, may be put to rest by a few reassuring words from power holders. As part of educating employees about what organizational changes my mean for them, HRM must show a considerable amount of emotional sensistivity. Doing so makes it possible for the people affected by change to help make it work. Some companies have found that simply answering the question whats in it for me? can help ally a lot of fears. Sell the need for change For organizational change to occur, top management must accept the idea that change is required. And quite often, its lower-level practicing mangers, those who toil daily in the trenches, who offer the best ideas. For these ideas to be accepted and Implemented, however, it is necessary for HRM to be convinced that the ideas are worthwhile. Involve employees in the change efforts It is well established that people who participate in making a decision tend to be more committed to the outcomes of the decision than are those who are not involved. Accordingly, employees who are involved in responding to unplanned change, or who are made part of the team charged with planning a needed organizational change, may be expected to have very little resistance to change. Organizational changes that are sprung on the workforce with little or no warning might be expected to encounter resistance simply as a knee-jerk reaction until employees have a chance to assess how the change affects then. In contrast, employees who are involved in the change process are better able to understand the need for change and are, therefore less likely to resist it. When HRM involve employees in change efforts, this means more than simply giving them a voice in determining the organizations operations. It also means actively engaging employees at all levels in the problems the organization faces. Reward constructive behaviors one rather obvious and quite successful mechanism for HRM to facilitate organizational change is rewarding people for behaving in the desired fashion. Changing organizational operations may necessitate changing the kinds of behaviors that need to be rewarded by the organization. This is especially critical when an organization is in the transition period of introducing the change. For example, employees who are required to learn to use new equipment should be praised for their successful efforts. Feedback on how well they are doing not only provides a great deal of useful assurance to uncertain employees but also helps shape the desired behavior. Lead in a way that stresses the urgency of change It is not unusual for company officials to get in a rut, becoming lazy and complacent about the way hey operate, even when it is necessary to take decisive action. This is almost what happened to Sears a few years ago. The retailing giant was losing customers rapidly as officers sat by merely lowering sales goals. That is when Sears CEO Arthur Martinez lit a fire under everyone by stressing the importance of turning things around or else! He generated a sense of urgency by setting very challenging goals (e.g., quadrupling market share, and increasing customer satisfaction by 15 percent). Although the CEO did not have all the answers to Sears problems, he provided something even more important straightforward, honest talk about the companys problems, creating a sense of urgency that got everyone moving in the right direction. Pay careful attention to job design the HRM should pay careful attention to job design and develop cohesive groups. HRM should give attention to the wider organizational context including the design of technology itself when new technology is to be introduced. This action would improve job design, employee involvement and empowerment, the development of skills and problem-solving capacity, and the effective management of change. Acknowledge resistance acknowledging resistance consists of two activities: listening and sharing. First, HRM should listen carefully to clients messages to determine their meaning. In fact, the very process of listening helps convert tension into words that serve to reduce anxiety, even if the words themselves do not actually reveal the nature of the tension or the reason for it. The second activity involves sharing of feelings with clients. Sharing is a form of support. When HRM demonstrate their understanding of clients feelings and are not surprised or upset by negative statement, it illustrates their support, which helps reduce tension. To be successful in this stage HRM should remain calm and neutral, saying and doing nothing that will increase clients tensions or fears. Create a learning organization Although all organizations change, whether they want to or not, some do so more effectively than others. Those organizations that have developed the capacity to adapt and change continuously are know as learning organization. In learning organizations, people set aside old ways of thinking, freely share ideas with others, form a vision of the origination, and work together on a plan for achieving that vision. Research gaps Porras and Robertson (1992) that the necessary information to guide change is only partially available and that a good deal of more research and thinking are needed to fill the gaps. Change activities can vary depending on such factors as the magnitude of change. Considerably more effort needs to be expected in a domestic or an international setting. As change unfolds, new stakeholders may emerge and demand reflections to reflect previously unknown or unvoiced needs. Further research could be carried out in these areas. Conclusion In this era of global competition, technological innovation, turbulence, discontinuity, even chaos, change is inevitable and necessary. The organization must do all it can to explain why change is essential and how it will affect the stakeholders. Moreover, every effort must be made to protect the interests of those affected by change. Hence, Drucker came to the conclusion that one cannot manage change. One can only be ahead of it. We do not hear much anymore about overcoming resistance to change. Everyone now accepts that change is inevitable. In a period of upheavals, such as the one we are living in, change is the norm. It is painful and risky, and above all, it requires a great deal of very hard work. But unless it is seen as the task of the organization to lead change, the organization whether business, a learning institution, may not survive. Many organizations, the need for change goes unrecognized until some major catastrophe occurs. The employees strike or seek the recognition of a union before management finally recognized the need for action. Whether it takes a whisper or a shout, the need for change must be recognized by some means; and once that need has been recognized, the exact nature of the problem must be diagnosed. If the problem is not properly understood, the impact of change on people can be extremely negative. To overcome resistance to change, it helps to discover the individual variables (e.g., personality) and aspects of the work setting to which such resistance is most closely linked. Doing this makes it possible to identify specific ways of changing people and/or changing situations so as to make them more accepting of organizational changes. Recommendations Management should facilitate and support the change process by providing the necessary resources that employees need. This will enable them to carry out the changes and be able to perform their jobs. This may call for decentralization of authority. The management should constantly monitor the change process so that correct action is taken in good time. Employees views should be incorporated when effecting change and change should be introduced gradually. CHANGE MANAGEMENT BY: DOUGLAS OGOLLA PH.D CLASS KEMU OVERVIEW Abstract Introduction Theoretical framework Conceptual framework Review of literature Forces for change Overcoming resistance to change VI Research gaps Vii Conclusion and Recommendations viii. References ABSTRACT The paper gives explanations of the nature of planed change using change models.Forces influencing change are identified and reasons for resistance given. Research gaps in change management are identified. INTRODUCTION The world is dynamic experiencing changes on a daily basis, and any organization that has resisted change has faced extinction. In order to survive therefore organizations must embrace change that is for the better. Change is an inescapable part of both social and organization life. Change can affect all aspects of the operation and function of the organization. Armstrong (2005). NATURE OF CHANGE Definitions Change is a shift or alteration in the present situation. The shift may be in the way we perceive things or how items are organized, processed, created or maintained. Organizational change is a process in which an organization takes new ideas or ways in a bid to become different. Organizational-wide change may be experienced when there is a shift or alteration in various areas which may include change in the organizations mission, restructuring operations ( for example, restructuring to self-managed teams, layoffs, etc), new technologies, start up of new divisions, changes in work ethics (for example new policies, values and expectations etc), introduction of new product line or production lines, re-engineering, top management changes, tighter production schedules and divestitures. Mullins (2005) Change management on the other hand is systematic approach to dealing with change, both from an individual or organizational perspective level. Types of change There are two main types of change namely, Strategic and operational change. Strategic change is concerned with organizational transformation. Strategic change therefore deal with board, long term and organization- wide issues. It is about moving to a future state, which has been defined generally in terms of strategic vision and scope. It covers the purpose and mission of the organization, its corporate philosophy on such matters as growth, quality, and innovation and values concerning people, the customer needs served and the technologies employed. It takes place within the context of the external competitive, economic and social environment and the organizations internal resources, capabilities, culture, structure and systems. Operational change Relates to new systems, procedures, structures or technology which normally will have an immediate effect on working arrangements within the organization. THEORETICAL FRAMEWORK Theories of planned change Conceptions of planned change have tended to focus on how change can be implemented in organizations. Called theories of changing, these frameworks describe the activities that must take place to initiate and carry out successful organizational change. Comparison of planned change models Lewins change model Action research model The positive model                      Lewins Change Model One of the early fundamental models of planned change was provided by Kurt Lewin. He conceived of change as modification of those forces keeping systems behaviour stable. Spefically according to Kurt Lewin(1951) a particular set of behaviours at any moment in time is the result of two groups of force: those striving to maintain the status quo and those pushing for change. When both sets of forces are about equal, current behaviours are maintained in what Lewin termed a state of quasi-stationary equilibrium. To change that state, , one can increase those forces pushing for change and decrease those forces maintaining the current state, or apply some combination of both. For example, the level of performance of a work group might be stable because group norms maintaining that level are equivalent to the supervisors pressure for change to higher levels.This level can be increased either by changing the group norms to support higher levels of performance or by increasing supervisor pressure to produce at higher levels. Lewin suggested that modifying those forces maintaining the status quo produces less tension and resistance than increasing forces for change and consequently is a more effective change strategy. Lewin viewed this change process as consisting of the following three steps: Unfreezing: This step usually involves reducing those forces maintaining the organizations behaviour at its present level. Unfreezing is sometimes accomplished through a process of psychological disconfirmation. By introducing information that shows discrepancies between behaviours desired by organization members and those behaviors currently exhibited, members can be motivated to engage in change activities. Moving: This step shifts the behaviour of the organization, department, or individual to a new level. It involves intervening in the system to develop new behaviours, values, and attitudes through changes in organizational structure and processes. Refreezing: This step stabilizes the organization at a new state of equilibrium. It is frequently accomplished through the use of supporting mechanisms that reinforce the new organizational state, such as organizational culture, norms, policies and structures. Action Research Model The action research model focuses on planned change as cyclical process in which initial research about the organization provides information to guide subsequent action. Then the results of the action are assessed to provide further information to guide further action, and so on. It places heavy emphasis on data gathering and diagnosis prior to action planning and implementation, as well as careful evaluation of results after action is taken. Cyclical phases of planned change as defined by the original action research model there are eight steps:- Problem identification. This stage usually begins when a key executive in the organization or someone with power and influence senses that the organization has one or more problems that might be solved with the help of an OD practitioner. Consultation with a behavioral science expert. During the initial contact, the OD practitioner and the client usually assess each other. The practitioner has his or her own normative, developmental theory or frame of reference and must be conscious of those assumptions and values. Sharing them with the client from the beginning establishes an open and collaborative atmosphere. Data gathering and preliminary diagnosis. This step is usually completed by the OD practitioner, often in conjunction with organization members. It involves gathering appropriate information and analyzing it to determine the underlying causes of organizational problems. The four basic methods of gathering data are interviews, process observation, questionnaires, and organizational performance data (unfortunately, often overlooked). Feedback to a key client or group. Because action research is a collaborative activity, the diagnostic data are fed back to the client, usually in a group or work-team meeting. The feedback step, in which members are given the information gathered by the OP practitioner, helps them determine the strengths and weakness of the organization or unit under study. Joint diagnosis of the problem. At this point, members discuss the feedback and explore with the OD practitioner whether they want to work on identified problems. A close interrelationship exists among data gathering, feedback, and diagnosis because the consultant summarizes the basic data from the client members and presents the data to them for validation and further diagnosis Joint action planning. Next, the OD practitioner and the client members jointly agree on further actions to be taken. This is the beginning of the moving process (described in Lewins change model), as the organization decides how best to reach a different quasi-stationary equilibrium. At this stage, the specific action to be taken depends on the culture, technology, and environment of the organization. Action. This stage involves the actual change from one organizational state to another. It may include installing new methods and procedures, reorganizing structures and work designs, and reinforcing new behaviors. Such actions typically cannot be implemented immediately but require a transition period as the organization moves from the present to a desired future state. Data gathering after action. Because action research is a cyclical process, data must also be gathered after the action has been taken to measure and determined the effects of the action and to feel the results back to the organization. This, in turn, may lead to re-diagnosis and new action. The positive model. The positive model focus on what the organization is doing right. It helps members understand their organization when it is working at its best and builds off of those capabilities to achieve even better results. Focuses on positive dynamics in organizations that give rise to extraordinary outcomes. It shows that people tend to act in ways that make their expectations occur. Thus positive expectations about the organization can crate an anticipation that energizes and directs behavior toward making those beliefs happen. The positive model of planned change involves five phases:- Initiate the inquiry. This first phase determined the subject of change. It emphasizes member involvement to identify the organizational issue they have the most energy to address. For example, members can choose to look for successful male-female collaboration (as opposed to sexual discrimination), instances of customer satisfaction (as opposed to customer dissatisfaction), particularly effective work teams, or product development processes that brought new ideas to market especially fast. If the focus of inquiry is real and vital to organization members, the change process itself will take on these positive attributes. Inquire into Best practices. This phase involves gathering information about the best of what is in the organization. F the topic is organizational innovation, and then members help to develop an interview protocol that collects stories of new ideas t hat were developed and implemented in the organization. The interviews are conducted by organization members; they interview each other and tell stories of innovation in which they have personally been involved. These stories are pulled together to create a pool of information describing the organization as an innovative system. Discover the Themes. Members examine the stories, both large and small, to identify a set of themes representing the common dimensions of peoples experiences. For example, the stories of innovation may contain themes about how managers gave people the freedom to explore a new idea, the support organization members received from their co-workers, or how the exposure to customers sparked creative thinking. Envision a preferred future. Members then examine the identified themes, challenge the status quo, and describe a compelling future. Based on the organizations successful past, members collectively visualize the organizations future and develop possibility propositions- statements that bridge the organizations current best practices with ideal possibilities for future organizing. Design and Delivery Involves the design and delivery of ways to create the future. It describes the activities and creates the plans necessary to bring about the vision. It proceeds to action and assessment phases similar to those of action research. Members make changes, assess the results, make necessary adjustments, and so on as they move the organization toward the vision and sustain what will be. General model of planned change       CONCEPTUAL FRAMEWORK The figure below shows conceptualization of organizational change             Organization performance is influenced by planned change strategies Change in organizational may be as result of change technology, culture, strategies, leadership etc REVIEW OF LITERATURE Forces for organizational change Change may originate from outside or inside the organization due to various factors which are either external forces of change or Internal forces of change. External forces or triggers of change Market Forces These include activities and innovations of competitors and include the need to develop new/improved products, continually develop competitive pricing policies and provided new improved services and quality of services. Legislation and government policies. This includes environmental and employment legislation like quota controls, Equal opportunities and discrimination. New Technologies these may include new process equipment, new computer technology or new information/data processing system. Internal forces or triggers or organizational change can include:- Profitability is a major thrust for change- these are changes which occur with the aim of improving the organizations profitability, and include attitudes and skill of senior management; products or research; improved production facilities and Reduction in staff. Take over/mergers. This source of change seeks to improve efficiency in the use of assets and increases profitability. These measures include economies of scale; reduced duplication; increased market pull; more dynamic pull and dynamic management. Low performance and morale, high stress and staff turnover Appointment of new senior managers or top management team Rapid technological advancement within the organization Aging of materials and human resources change in managerial polices and styles Resistance to change Despite the potential positive outcomes or attributes, change is often resisted at both the individual and the organizational level as it involves confrontation with the unknown and loss with the familiar. Resistance to change can take many forms and it often difficult to pinpoint the exact reasons for the resistance. Fears may be expressed over such mattes as, Employment levels and job security; Loss of satisfaction; Wage rate differentials; Changes to social structures and working conditions; Loss of individual control over work, and Greater management control. Many people find change, or the thought of change, gainful and frustrating. Hence, people resist change because it is seen as a threat to familiar patterns of behaviour as well as to status and financial rewards. Organizations run into some form of employee resistance when introducing any change. Change may trigger emotional reactions because of the uncertainty involved in change. In planning for change therefore it is important that management must always take resistance to change into account. This can be done by understanding why people and organizations as well resist change. Individuals resist change for various reasons and include the shock of the new. People are suspicious of anything which they perceive will upset their established routines, methods of working or conditions of employment. They do not want to lose the security of what is familiar to them. They may not believe statements by management that the change is for their benefit as well as that of the organization; sometimes with good reason. They may feel that management has ulterior motives and sometimes the louder the protestations of management; the less they will be believed. Threatened self interests. Economic implication fears. People are likely to resist change which is perceived as reducing either directly or indirectly their pay or other rewards, requiring an increase in work for the same level of pay or acting as a threat to their job security. People tend to have established patterns of working and a vested interest in maintaining the status quo. Inconvenience or loss of freedom. If the change is seen as likely to, prove inconvenient; make life more difficult; reduce freedom of action or results in increased control then there will be resistance. Fear of the unknown or Uncertainty. Change can be worrying because of uncertainty about its likely impact. Change which confronts people with the unknown tends to cause anxiety or fear. Many major changes in a work organization present a degree of uncertainty; for example, the introduction of new technology or methods of working. A person may resist promotion because of uncertainty over changes in responsibilities or the increased social demands of the higher position. Symbolic fears - a small change that may affect some threatened symbol, such as a separate office or a reserved parking space, may symbolize big ones, especially when employees are uncertain about how extensive the program of change will be. Competence fears lays emphasis on the ability to cope with new demands or to acquire new skills. Habit. People tend to respond to situations in an established and accustomed manner. Habits may serve as a means of comfort and security, and as a guide for easy decision-making. Proposed changes to habits, especially if the habits are well established and require little effort, may well be resisted. However, if there is a clearly perceived advantage, for example a reduction in working hours without loss of pay, there is likely to be less, if any, resistance to the change, although some people may, because of habit, still find it difficult to adjust to the new times. Selective perception. People's own interpretation of stimuli presents a unique picture or image of the "real" world and can result in selective perception. This can lead to a biased view of a particular situation, which fits most comfortably into a person's own perception of reality, and can cause resistance to change. For example trade unionists may have a stereotyped view of management as untrustworthy and therefore oppose any management change; however well founded might have been the intention. Managers exposed to different theories or ideas may tend to categorize these as either: those they already practice and have no need to worry about or those that are of no practical value and which can be discarded as of no concern to them. Security in the past. There is a tendency for some people to find a sense of security in the past. In times of frustration or difficulty, or when faced with new or unfamiliar ideas or methods, people may reflect on the past. There is a wish to retain old and comfortable ways. For example, in bureaucratic organizations, officials often tend to place faith in well-established ('tried and trusted') procedures and cling to these as giving a feeling of security. Arthur Bedeian (1980) cites the following four as the main cause of I individual resistance to change. Parochial self-interest. We understandably seek to protect a status quo with which we are content and which we regard as advantageous to us in some way. Change may threaten to move us out of our "comfort zone", away from those things which we prefer and enjoy. We develop vested interests in the perpetuation of organization structures and accompanying technologies. Change can mean loss of power, prestige, respect, approval, status and security. Misunderstanding and lack of trust. We are more likely to resist change when we do not understand the reasoning behind it, or its nature and possible consequences. If managers have little trust in their employees, information about change may be withheld or distorted. If employees distrust managers on the other hand then information about changes proposed by management may not be believed. Incomplete and incorrect information creates uncertainty and rumour. This has the unfortunate result of increasing perceptions of threat, increasing defensiveness, and reducing further effective communication about the change. Contradictory assessment. We differ in the ways in which we perceive and evaluate the costs and benefits of change; our personal values ultimately determine which changes are welcomed, promoted and succeed, and which ones fail. Our contradictory assessments are more likely to arise when communication is inadequate, and where those concerned lack the relevant information. Low tolerance for change. We differ in our abilities to cope with change, to face the unknown and to deal with uncertainty. Change that requires people to think and behave in different way scan challenge the individual's self concept. We each have ideas about our abilities and our strengths. The anxiety and apprehension that they suffer may lead them to oppose even, potentially beneficial changes. It is important to note that there are potentially as many different; reasons for resisting change as there are individuals affected. RESEARCH GAPS Porras and Robertson (1992) concluded that the necessary information to guide change as only partially available and that a good deal more research and thinking are needed to fill the gaps. A related are where current thinking about planned change is defiant is knowledge bout how the stages of planned change differ across situations. Most models specify a general set of steps that intended to be applicable to most change efforts. Change activities can vary depending on such factors as the magnitude of change. Considerably more effort needs to be expected in a domestic or an international setting. Considerably more efforts needs to be expended identifying situational factors that may require modifying the general stages of planned change. That would likely lead to a rich array of planned change thinking is greatly needed in planned change. As change unfolds, new stakeholders may emerge and demand reflections reflecting previously unknown or unvoiced needs. Those emergent conditions make planned change a far more disorderly and dynamic process than is customarily portrayed, and conceptions need to capture that reality. Further research could be carried out in these areas. CONCLUSION In an age of global competition, technological innovation, turbulence, discontinuity, even chaos, change is inevitable and necessary. The organization must do all it can to explain why change is essential and how it will affect everyone. Moreover, every effort must be made to protect the interests of those affected by change. Hence, Drucker came to the conclusion that "one cannot manage change. One can only be ahead of it. We do not hear much anymore about "overcoming resistance to change". Everyone now accepts that change is unavoidable. In a period of upheavals, such as the one we are living in, change is the norm. It is painful and risky, and above all it requires a great deal of very hard work. But unless it is seen as the task of the organization to lead change, the organization - whether business, university, hospital and so on - will not survive. RECOMMENDATIONS Management in organizations should do the following in a bid to reduce change resistance. Sensitize employees through workshops, meetings etc to explain the effects of change and how it will benefit them so that they are not afraid of the unknown. Management should also involve employees in the change process implementation by making them change leaders and part of the change committee's. Management should facilitate and support the change process by providing the necessary resources that employees need to carry out the changes and be able to perform their jobs. This may call for decentralization of authority. They should support the employees by listening to their problems, being understanding and being their physically and emotionally when needed. Management could also negotiate a proposed change with the parties involved. Incentives should be given to employees who embrace change - this could be in form of allowances and promotion. They should constantly monitor the change process so that corrective action is taken in good time. Employee's views should be incorporated when effecting change and change should be introduced gradually. Figurehead Interpersonal roles Leader Liason Negotiator Informational roles Decisional roles Resource allocator Monitor Disseminator Spokesperson Entrepreneurs Disturbance handler Conceptual skills Human skills Technical skills Mission or purpose (tend to be vague) Goals & objectives (aimed at specific activity) Strategies (programme of action to meet objective) Major & minor policies (guides for decision making) Procedures & rules (customary methods for handling future activities) Programmes/projects (specific tasks with aims, rules etc.) Budgets in figures (plan of expected results expressed numerically) leader leader leader Area of managers authority Area of subordinate freedom Social status Safety needs Physiological needs Initiate the inquiry Problem Identification Unfreezing Consultation with Behavioral science expert Inquire into best practices Consultation with Behavioral science Expert Movement Data gathering and preliminary Diagnosis Discover themes Feedback to key client or 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