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COURSE 5

Organisational Management & Leadership

� Defining management, management key features and management styles

� Defining leadership & the efficiency of  leadership� Michigan & Ohio studies

� Rensis Likerts management systems

� Tannembaum & Schmidts model

� Blake & Moutons system

� Contingency theories

Objectives:

- Ss will be able to deal with concepts and notions

regarding the management of organizations

- Ss will be able to use different models, systems and

theories on organizational management and leadership

Seminary:

CASE STUDY NO. 5

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Defining managementManagement is a vital element within social relations of labourgroups. Groups need managers and managers need people tof ollow them.

Gerald A. Cole [1993] defines management as a dynamic process of 

group labour in which an individual or a group of individuals, in adetermined period of time and in a determined organisationalcontext, influence the other members of the group in fulfillingestablished goals.

Research has discovered that there are at least f our key-variables

that must be considered in analysing management:� Leadership features;

� Nature of tasks and objectives;

� Nature of group;

� Organisational climate.

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Leadership

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Michigan & Ohio studies

Michigan Model

In a series of research carried on at the beginning of the 50s, Rensis Likertand a group of specialists from the University of Michigan studied thebehaviours of the managers of some high- and low-productive groups. The

research showed that managers of high-productive groups had an employee-

centred behaviours, whereas managers of low-productive groups wereauthoritative and task-centred.

Ohio Studies

Ohio studies were made by  A. W. Halpin and J. Winer in 1957 according to

some questionnaires with 150 questions, starting with the idea that the twoextremes of the Michigan study employee-orientation and task-orientation are distinct dimensions of  management analyses. There were resulted two

different types of  behaviours one centred on employers entitledConsideration and one centred on tasks and objectives, entitled Initiative.

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Rensis Likerts management systems

He identifies the following categories that he calls ³SYSTEMS´:

� Exploitation- Authoritative System ± the manager makes decisions by itself and

transmits them to its subordinates. Difficult communication, inexistent team work,

management is based on a punishment and threatens system. Productivity is minimum,

employees only try to keep their jobs.

� Authoritative ± Benevolent System±

management is autocratic, leaders consultthemselves with specialists. This system is also based on punishments whereas

productivity is inadequate.

� C onsultative System ± objectives are democratically established. Communication is

in two-directions and team-work is encouraged. Productivity is good.

� Participatory System ± the ideal system Likert proposes: hierarchical integration of 

labour groups, democratic management, high-level productivity.

³Team-work´ = the intensity of relations among team members and its attractivenessto people from outside the organisation

³Team size´ = any group has two leaders: informal (chosen and accepted by the

group) and formal (nominated). If the two roles are played by the same person, there iseffective management. Thus, the optimum group size is of 8-12 members.

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Tannembaum & Schmidt

This model makes possible the identification of some managerial styles, absolutely different:

� Manager makes decisions by itself and transmits them to its subordinates;

� Manager makes decisions by itself and tries to convince its subordinates of their usefulness;

� Manager presents the decision as a project and invites its subordinates to ask questions;

� Manager presents to its subordinates the project in a decisional variant;

� Manager presents the issue, asks f or suggestions and makes decisions according to the team;

� Manager asks the group to make decisions according to some established limitations;

� Manager makes possible that subordinates operate in established limitations.

Blake and Moutons Managerial Grid

Robert Blake and Jane Mouton [1978] developed a grid system that classifies management styles,two major basic management concerns being taken into account: objectives and employees. The

proposed system (an extension of the Ohio Matrix) evidences a great diversity of  management

styles, of which, those corresponding to the levels 1;1, 9;1, 5;5, 1;9 and 9;9 are important.