CHAPTER 18 LEADERSHIP, MANAGEMENT AND SUPERVISION …

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Accountant in Business Exclusive tutorials for ACCA F1 Yahiya Jaffer I [email protected] ICON BUSINESS SCHOOL 1 CHAPTER 18 LEADERSHIP, MANAGEMENT AND SUPERVISION Leadership Leadership is an interpersonal influence directed towards the achievement of goal or good and this will help inspire people to achieve them. Management Management is the effective use and coordination of business resources in order to achieve key objectives with maximum efficiency. Supervisors A supervisor is a person given responsibility for planning and controlling the work or group of employees. They are responsible for ensuring that specified tasks are performed correctly and efficiently by the group. The following are the key functions of - They undertake technical or operational work alongside of overlooking the group - They advise and supervisors their team members Managers Leaders Administrators Rely on controls They are important Innovators Inspire trust Leaders are essential

Transcript of CHAPTER 18 LEADERSHIP, MANAGEMENT AND SUPERVISION …

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CHAPTER 18

LEADERSHIP, MANAGEMENT AND SUPERVISION

Leadership

Leadership is an interpersonal influence directed towards the achievement of goal or good

and this will help inspire people to achieve them.

Management

Management is the effective use and coordination of business resources in order to achieve

key objectives with maximum efficiency.

Supervisors

A supervisor is a person given responsibility for planning and controlling the work or group

of employees. They are responsible for ensuring that specified tasks are performed correctly

and efficiently by the group.

The following are the key functions of

- They undertake technical or operational work alongside of overlooking the group

- They advise and supervisors their team members

Managers Leaders

• Administrators

• Rely on controls

• They are important

• Innovators

• Inspire trust

• Leaders are essential

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Management Authority and Responsibility

Authority

Authority refers to the relationship between the participants within an organization According

to the expert Henry Fayol authority is defined as the right to give orders and powers to exact

obedient

Responsibility

Responsibility is the liability of the person to be called for account for his/her actions, it

expresses the obligation a person has to fulfill a given task. Usually responsibility cannot be

delegated to others.

Power

Authority is the right to do something while power is the ability to do something. Power is

what enables the manager to ensure that the team member will comply with his request.

There are 5 types of power.

(1) Reward Power

Where one person is able to reward another person for carrying out their order or

meeting other requirements.

(2) Cohesive Power

Where one person having the ability to punish another person failing to carry out their

orders

(3) Expert Power

Where it is considered one person is expert on a particular task than other

(4) Referent Powers

This is based on the personal qualities of the individual and often occurs when one

person identifies with or wishes to imitate another.

(5) Legitimate Power

This is the power derived from his position of authority within the organization.

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Theories of Management

1. Classical Theories of Management

They are largely concerned with improving efficiency and productivity. The following are

the main functions as per Henry Fayol.

(1) Fayol – The five functions of management

Organization / organizing Planning

Divide the work into tasks and

projects and ensure the right

They set objectives and evaluate their

objectives resource handles the right job

Management

Functions

Direct / command

Give instructions to subordinates to

Coordination carry out their duties Where all staff should work

coordinately to achieve the Control

objectives as a whole Setting targets, measure the out come

and compares with the targets.

(2) Taylor - Scientific Management (F W Taylor)

Taylor believed that by analyzing work in a scientific manner, it was possible to find

the one best way to perform a task. The following are the 4 principles of Taylors

scientific management

1. Task should be analyzed in detail to determine the most efficient method to use

2. Staff members should be scientifically managed only suitable people should be

chosen.

3. Managers should make all key decisions and provide detail instruction

4. Work should be divided between workers and managers.

While there are areas where these classical models are still relevant, most modern theorists

would argue that a more progressive approach is needed where,

• it is recognized that there is not always a ‘best’ way of doing a particular job

• managers realise that employees can have valuable insights into a job and can make i

mportant suggestions for improvements, and

• many workers are motivated by factors other than financial rewards

2. Human relation school (Elton Mayo)

- Mayo states that employee behaviour depends primarily on group relations and

management worker communication.

- Wage rates or elements are not the primary element to motivate

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3. Modern Writers

Several of the more modern writers on management focused on the various functions of a

manager.

(1) Peter Drucker - 5 basic operations/functions

Organize Develop People

Motivate and

communicate Set objectives

Establish yard sticks

(2) Henry Mintzberg - 10 skills of management

Interpersonal

• Figure head

• Leader

• Liaison

Information

• Monitor

• Disseminator

• Spokes person

Decisional

• Entrepreneur

• Disturbance handler

• Resource Allocator

• Negotiator

Reasons

A symbolic role of manager to represent with

carries out all his duties under his consideration.

A relationship with other subordinates to create a

good environment to the business involve with

certain level of information.

They collect information and disseminate for the

important person

This is where passing of the information to

necessary authorities

Managers transmit information to various

external group to achieve their objective such as

bank, tax dept.

Where entrepreneur should take risk to gain a

better return on investment

Whenever there is a dispute / pressure the

managers will take the responsibility

Allocation of resources more efficiently and

smoothly

When there is a dispute over something the

negotiator will come forward

A manager according

to Peter Drucker

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3 Main groups of leadership theories

1. Trait Theories

This is argued that good leaders have certain attributes or qualities that allows them to lead.

Trait theories have been described as follows:

These argue that good leaders have certain natural attributes or qualities that allow them to lead (such as a cheerful personality, or fairness). Leaders

are therefore born, not made.

2.Style theories

These argued that certain leadership approaches can be learnt or used by manager depending

on the situation. There are 2 main types,

2.1Blake and Mouton Managerial Grid

When they observed two basic dimensions for leadership

• Concern for people

• Concern for production

Based on the managers concern they can be plotted for the following

High

Concern for

people

Low

Low High

Concern for

Production

1.1 – Management impoverishment (Most minimum effort given to both criteria)

1.9 – Country club management (High people concern, but low prod" concern)

9.1 – Task management (mainly concern about production but not people)

9.9 – Team management (Where we have a high integration for both PPL & prod")

5.5 – Middle of the road management (They moderately achieve good results on both

dimension)

9 1.9 9.9

8

7

6

5 5.5

4

3

2

1 1.1 9.1

0 1 2 3 4 5 6 7 8 9

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2.2 Ashridge Management college

The following are the 4-management style from Ashridge Management college

(1) Autocratic (tells)

Manager makes all the decisions and issue instruction to obey without any concerns

(2) Persuasive (sell)

Managers still takes all the decisions but believes that team members must be

motivated to accept them in carrying out properly.

(3) Participative (Consult)

The manager gets some consultation from the team, but retains the final say.

(4) Democratic (Join)

The leader and the team members make the decisions together.

3.Contingency Theory

These suggest that there is no correct style, or approach. Instead, successful leadership

involves adapting to the particular circumstances in which the leader finds themselves.

3.1Action centered leadership - Adair

Adair suggested that any leader has to strive to balance three inter­related goals in order to be

effective. These three goals relate to the needs of the group, the individual and the task.

Task

Need

Group

Need Individ

-ual

Needs

• Communication

• Team Building

• Motivation

• Discipline

Setting objectives, Planning

Coaching, Motivating

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3.2 Contingency theory - Fiedler

Fiedler studied the relationship between the style of leadership and the effectiveness of the

work group. First, he identified two distinct styles of leadership.

there are two types of leaders:

(1) Psychologically distant managers (PDMs)

• seek to keep their distance from subordinates by formalising roles

and relationships within the team

• are withdrawn and reserved in their interpersonal relationships

• prefer formal communication and consultation methods

• task oriented

(2) Psychologically close managers (PCMs)

• do not seek to formalize roles and relationships

• prefer informal contacts to regular staff meetings

• are primarily person oriented rather than task oriented

Fiedler suggested that the situation is most favourable for the manager when they have a

strong relationship with the group they are managing, group tasks are well defined and the

power of the leader to reward and punish the team is high.

• Fiedler’s research indicated that a PDM approach works best when the situation is eith

er very favourable or very unfavourable to the leader

• A PCM approach works best when the situation is only moderately favourable for the

leader.

3.3 Transformational Leadership - Bennis

Bennis argued that there are two types of leaders:

(1) Transactional leaders

These leaders see the relationship with their followers with regard to rewards

(2) Transformational leaders:

They see their role as inspiring and motivating others to work at level beyond

compliance

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3.4 Kotter – Managing Change

Kotter set out the following change approaches to deal with resistance.

They are:

(1) Participation and innovation – Allowing the people to handle it

(2) Education and Communication – Keep them updated on what's happening

(3) Facilitation and support – Training and consultation

(4) Manipulation Co-optation – This selectively shows only the benefits of the change

(5) Negotiation and agreement – where staff will be understood what is done and how it

is done. This approach enables several parties with opposing interests to bargain.

3.5 Heifetz – Leadership to motivate

Heifetz argues that the main role of managers is to help people to face reality and mobilize

them to make changes where necessary. A true leader doesn’t necessarily have all the

answers – instead they encourage people to tackle tough challenges themselves.

In addition, Heifetz suggested that anyone within an organization may have provided some

degree of leadership in certain circumstances. This means that leaders may sometimes simply

emerge, rather than being formally appointed by the organization. This is referred to as

‘dispersed leadership’.

Contingency theories – conclusion

Contingency theories are often seen as the most practical, as they encourage leaders to

understand their current circumstances and adapt their approach accordingly. However, in

practice, most managers find it difficult to vary their leadership approach on a regular basis –

instead simply finding a style that they are comfortable with and sticking with it.

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CHAPTER 19

RECRUITMENT AND SELECTION OF EMPLOYEER

What is recruitment?

The term recruitment can be defined as attraction of suitable applicants for a particular job.

Usually recruitment can be done internally or externally.

Internal Recruitment

When an organization recruits employees within the organization, it is considered to be

internal recruitment.

External Recruitment

Any recruitment done outside the organization is considered to be the external recruitment.

Selection

The term selection refers to choosing the most suitable candidate for the specified position.

The consequence of poor recruitment and selection:

- High staff turnover

- High cost of advertising for vacancies

- Waste of management time involve in selection and training

- The expense of dismissal

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The Recruitment and Selection process

Define the vacancy

Job Analysis

Job description Recruitment

Person's specification

Attract candidates

Application form

Interviews

↓ Selection

Testing

References

Defining the vacancy

A vacancy can arise from 2 ways

• An existing employee leaving the organization

• A new job / position is created

A vacancy can be filled in two ways:

(1) Internally

Advantages Disadvantages

• Cost and time are cheap

• The employee already knows about

the culture of the org"

• No new ideas will come into the

business

• Something conflicts can arise

(demotivation also can be taken)

(2) Externally

Advantages Disadvantages

• New blood and new ideas can come

into the business

• For certain jobs external recruitment

is important

• Cost and time taken is high

• Training cost also will be high

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Job Analysis

The process of Job analysis is a detail study and the description of task. This is an internal

document.

Job Description (JD)

Once management fully understand the role they will prepare the JD, which can be defined as

"a broad statement of the purpose, scope, duties and responsibility of the Job"

The following are the elements of JD:

(1) Job title

(2) Purpose of the Job

(3) Principle duties

(4) Working conditions

(5) Wages and salaries

(6) Key difficulties in the job

Person's Specification

A person's specification is about a person and not about the job. This can be defined as a

description of the qualifications, skills, experience, knowledge and other attributes a

candidate must possess to perform the job duties.

Alec Rodgers 7-point place

S – Special attribute (Skills and abilities of the candidate)

C – Circumstances (does the job hove any special demands)

I – Interests (interest in personal or social life which helps the job)

P – Physical make up (Personal appearance)

D – Disposition (What sort of nature of this candidate ex: social or calm in crisis ?)

A – Attainments (Does the ideal candidate need any special qualification)

G – General intelligence (Find out the average success of a particular person)

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Attracting Candidates

This stage will motivate candidates to apply to org". If it is an internal recruitment the staff

attraction will come through.

- Promotion

- Transfers

- Rotating job among staff

Advertising

(1) The main objective of recruitment is to advertise the most suitable person into the job.

Therefore, advertisements should be very comprehensive and should give the correct

details of the Job.

(2) It should attract many people as possible

(3) It should include many information possible without making it overload.

The advertisement method / media which is to be selected will be based on several factors.

(1) Type of the organization

(2) Type of the job being advertised

(3) The cost of the advertising

(4) The frequency and duration of the advertisement

The following are the types of Advertising

(1) National and local press

(2) Internet

(3) Radio and TV channel

(4) Specialist Journal

Application Forms

These will provide the org" with relevant information about the candidate. This allows

organization.

- To eliminate unsatisfactory applicants

- Save interview time

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Selection interviews

The purpose of an interview is to:

(1) Find the best person

(2) Candidate understands what the job involves and what the career would be

(3) The candidate feels that they have been fairly treated

There are various types of interview

(1) Face to face – one person with another

(2) Group interviews – interview takes place with other candidates

(3) Succession interviews – obtained better view of candidate

(4) Panel interviews – interview by a group of six / seven members

(5) Paired interviews – this is where two managers conduct the interview

with one applicant

Advantages Disadvantages

• Make the candidate ease

• Opportunities to use nonverbal

communications

• Opportunity to assess appearance

• Too brief to get to know candidates

• Effort from initial impression

• Certain factors such as motivation,

honesty and difficulty to assess.

Selection Testing

Two basic testing

- Proficiency and attainment – skills and abilities of the areas

- Psychometric – These are more into psychology

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CHAPTER 20

INDIVIDUAL, GROUP AND TEAM BEHAVIOUR

Characteristics of individual behaviour

Although individual behaviour varies significantly the underline issues relating to behaviour

are the same for all people typical issues that affect individual behaviour and performance at

work include:

(1) Motivational Level

This is where desire to do a job or not desire to do a job. This affects with

* Financial rewards * Non-financial rewards

(2) Perception

Individuals select, organize and interpret the stimuli they receive.

(3) Attitudes

These are persistent feelings and behavioural tendencies directed towards specific

people, group or ideas

(4) Personality

This is combination of emotional, attitudes and responses on an individual

Role Theory

This model suggests that behaviour of individual depends on other people’s expectation on

them and how they are supposed to behave in a given situation. A Role is the pattern of

behaviour expected by someone who occupies the particular situation.

Role Signs

These are visible indications of

roles such as uniforms etc.

ex: army uniform badges

Role behaviour

Certain types of behaviour can be

associated with a particular role in

an org"

Role set

This describes the people who

respond to an individual to a

particular role

Role Theory

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Problems in roles

Groups

A group is a collection of individuals who perceive themselves to be a group. The

following are the characteristics:

(1) The sense of identify

(2) Loyalty to group

(3) Purpose of leadership

Group

Informal Group

That individuals voluntarily join to meet their

social or security needs ex: A group at

railway station to check about train coming

on time

Formal Group

Group that are created to carry out specific

tasks or communicate to solve the problem

ex: Project Group

Group Behaviour

When dealing with individuals’ people can adapt different kinds of behaviour.

(1) Aggressive

This violates another person's rights and can often lead to conflict.

(2) Assertive

This is direct, honest professional communication. This does not violate rights.

(3) Passive behaviour

Is giving into another person in a believe that their rights are more important than

yours.

Role in incompatibility

This occurs when individuals

experience expectations from

outside group about their role that

are different to their own role

expectations.

Role conflicts

This occurs when individual find a

clash between roles

Role ambiguity

Role Theory

Problems

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The Contributions of individuals and teams for Organizational Success

(1) Mixture of skills and abilities

(2) Synergy – pooling of ideas

(3) Increased flexibility

(4) Better control

(5) Improved communication

Problems in Groups

(1) Group decision making can be slow

(2) Tend to produce decisions that are compromising

(3) Lack of individual responsibility

(4) Competition and conflicts

Teams (Formal Group)

A team is more than a group which can be described as any group of people who must

significantly relate with each other in order to accomplish shared objective. Teams usually :

(1) Share a common goal

(2) Enjoy working together

(3) Committed achieving certain goals

(4) loyal to the team with a team spirit

1. Team Role theory - Belbin

He discusses about a different roles:

(1) Leader - Pulls the group to achieve the goal

(2) Shaper - Promotes activity and dominant

(3) Plant - Ideas person

(4) Monitor Evaluator - Criticizes other ideas and brings the team down to earth

(5) Resource investigator - Looks for alternative solutions

(6) Implementer - Turns ideas into practical solutions (administrator)

(7) Team worker - Concern with the relations within e group

(8) Completer / finisher - The progress chaser

(9) Specialist - Who provides skills and knowledge

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2. Tuckman's Stages of group development

Forming – Team initially comes together

Storming – Conflicts stage for roles and processes are challenged

Norming – Co-operation begins

Performing – The team begins to productive

Adjourning / Dorming – Team completes the objective and disbands

Team Effectiveness

The following are key aspects of successful teams

(1) Team should be relatively small

(2) Team should have a relative duration

(3) Membership should be voluntary

(4) Communication should be informal and unstructured

(5) It should be action oriented

The following are the main concerns in team building

- Improved Communication

- Building Trust

- Social Interaction