Activity 8.1 (page 144): Allstyles department store

Transcription

1 8 Management and leadership Activity 8.1 (page 144): Allstyles department store 1 Identify all of the different management functions that Rebecca fulfilled during this busy day. [5] The five functions identified in the textbook are all evident in Rebecca s day: (i) setting objectives and planning (ii) directing and motivating staff (iii) measuring performance against targets and taking action over underperformance (iv) organising resources to meet objectives (v) coordinating activities. 2 Outline the personal qualities that you think Rebecca needed to carry out all of these roles successfully. [6] Any reasonable answer. Interpersonal skills would be needed to mediate between the two department managers to avoid either manager being resentful over the outcome of the discussion. An incisive mind would be needed to identify key problems and their cause, e.g. the poor performance of the electrical department. Organisational skills would be required to cope with the wide variety of tasks that needed to be tackled during the day. Communication skills are necessary to effectively communicate plans, instructions and deal with the builders. 3 Examine the problems that this store might encounter if Rebecca was not an effective manager. [9] There are many possible consequences for Allstyles department store of ineffective management. They include: Lack of coordination of activities, e.g. the electronic exercise bicycle being stocked by two departments this would waste scarce sales space. A lack of direction for staff, e.g. Rebecca has ensured that all managers are prepared to deliver the store s end-of-season sale without this, the organisational goals of Allstyles will not be met. A failure to plan for the future, e.g. it is crucial that Rebecca is able to plan strategies for achieving the targets set by senior executives it is also important that she is able to ensure that senior executives set realistic goals for the store. 1

2 Poorly motivated staff this would affect the quality of customer service and consequently reduce sales. Demotivated staff would be more likely to fail to meet targets set. Activity 8.2 (page 147): Disaster at the bakery 1 Identify the management roles that Eli seems to have demonstrated in this case. [4] The management roles could be taken from the ten common roles identified by Henry Mintzberg. Some of the key roles suggested by the text include: liaison communicating with people outside the business, e.g. the owner of the competing bakery monitor collecting information from relevant sources, e.g. the commercial estate agent disseminator communicating with staff following the fire spokesperson communicating information about the bakery to suppliers and customers disturbance handler responding to the changing situation of the business as a result of the fire resource allocator deciding how to use human resources. 2 What leadership style did Eli seem to be employing in the case? Explain your answer. [3] Eli is employing an autocratic leadership style. He has taken a range of decisions without discussion or consultation with workers/managers. As workers started to arrive at the bakery, he gave them all clear instructions. 3 Discuss whether this was the appropriate style of management to apply in this situation. [8] Different styles of management may usefully be defined and brief consideration of the relative merits of each discussed. Appropriate In a crisis, decisions need to be taken quickly. Consultation and discussion would slow down decision making. Eli needed to get some production up and running immediately. Eli, although being autocratic, took complete control of the situation and showed strong leadership to his employees at this difficult time. His style may reassure workers that the crisis will be overcome. With such a serious problem, a laissezfaire approach may send the wrong message to employees. Inappropriate Involving workers in discussion may lead to better decision making. Workers may have had useful ideas to contribute on how to tackle the crisis. The adage that two heads are better than one applies. The sales manager may feel undermined by Eli s decision to contact customers. He might feel that Eli does not trust him/her, thus causing demotivation. In this case, the judgement may be that the exceptional circumstances of a fire destroying the bakery justifies a more autocratic style of management. There is no 2

3 time for consultation and participation and there is potentially great risk to the business if decision making is delayed. However, it might also be noted that as it is a relatively small business more discussion could have been accommodated without any significant impact on the length of decision making. Top tip Students often argue that a democratic style of management is the best approach in the modern business world. This may be true in some circumstances, but not in all circumstances. Sometimes an autocratic style may be appropriate, e.g. during a crisis when a leader needs to show leadership. Activity 8.3 (page 149): Modern steel making requires a new approach 1 How would you classify Kevin s style of leadership according to McGregor Theory X or Y? Explain your answer. [4] Kevin has an approach to management that suggests Theory X assumptions about workers. The case provides the following evidence: Kevin has a set way of doing a job and believes that efficiency requires things to be done that way. He gives clear instructions and does not expect workers to think for themselves. 2 Outline three ways in which methods of working and, with them, the expectations of steel workers may have changed in the 25 years since Kevin started working at the plant. [6] Technological change there is no manual work as the factory is now highly automated and uses computers. Consequently, workers are educated and may therefore expect to make decisions as part of their normal working day. No heavy work automation has replaced heavy work. As controllers of computer systems, workers will expect to make more use of their mental capacity in the course of their work. Flexible shift system employees have to be more flexible as they may do any one of ten different jobs. As they are multi-skilled, they are used to solving problems and are adaptable. This may mean that they are prepared to take on more responsibility. 3 Discuss whether the leadership style used by Kevin is the best one to use in the circumstances described. [10] Appropriate Kevin does not have the skills/ personality to take a Theory Y approach. Kevin s style may ensure that operations are carried out in a consistent manner due to clear instructions being given. Inappropriate The workers that Kevin is responsible for are multi-skilled and educated. They are capable of making decisions and do not need close supervision. Kevin is not making the most of the skills these workers possess. (Continued) 3

4 Appropriate Kevin has 25 years experience and is knowledgeable about the operations of the steel industry. He is in charge of $10 million worth of equipment. It is important that the furnace is run efficiently, therefore clear instructions are beneficial so that all workers know what they have to do. Inappropriate A Theory X approach will alienate the workers in the blast furnace operation. They will be demotivated as they are being stripped of responsibility and control over their working day. The workers do not approve of Kevin s style. There will be an increased likelihood of conflict. Evaluation may consider: The leadership style may not be appropriate, but it may be the only style that works for Kevin. Although the situation appears to demand a more Theory Y approach, in which there is worker involvement and delegation, some studies have suggested (e.g. Fiedler, 1976), that it is difficult to change someone s leadership style. From 800 studies, Fiedler concluded that leaders are unable to adapt their style to a situation. There is no evidence that the employees fit the Theory X assumptions about worker behaviour and attitudes. These are workers who wish to take responsibility and would benefit from a more participative style of management. Kevin s approach may result in workers gradually fulfilling his expectations of them and they will cease to contribute in any meaningful way to the business. Activity 8.4 (page 151): Informal leadership and tension in the workplace 1 Outline possible reasons why the members of Zeke s workgroup were so keen to follow his lead and take his advice rather than that of Akiko and Keira. [6] Possible reasons include: Zeke had been a team leader in the past. In that formal leadership role he may have gained the respect of employees, with the effect that, even though he is no longer the team leader, they still listen to his views. Akiko, who is the current supervisor, does not lead the team effectively; he is more focused on doing his own job. Consequently, the workers may look to Zeke for leadership. The suggestions that Zeke makes may be more consistent with the views of the workers; after all, the production targets being set from above will require greater effort from workers. Zeke may better understand the problems that workers face in fulfilling management targets and is able to articulate the concerns of workers clearly. Therefore, they follow his lead. 4

5 2 Discuss all of the options that could be considered by management to deal with the issues raised by Zeke s informal leadership of this workgroup. Recommend the most appropriate option. [9] The case study suggests a number of options for students to consider: Option Benefits Drawbacks Move Zeke to a new position to train workers Give Zeke his old job back Give him a formal warning Makes use of Zeke s influential status with workmates. He may be a natural leader. If Zeke is part of management and is setting objectives for training, he may be more likely to adopt a management perspective. As his job role would change, this would distance him from his current workmates. This could be conceived as enlightened management, given that Zeke had been demoted for taking time off and the rules have subsequently been changed. This would show that management is considerate and would encourage Zeke to be more committed to the goals of the organisation. Zeke already has informal influence, therefore it is better to make him part of the formal management team. He may then be more likely to adopt a management perspective. Akiko does not appear to enjoy his role, so may be happy to lose the responsibility. Zeke has a family to support and a warning may force him to toe the management line. Any attempt to cut Zeke off from his workmates may backfire if it is perceived that he has been moved because he is a trouble maker. His influence could then increase. Zeke may not set the type of challenging targets that management hopes for. Is the position of training new workers really needed? Zeke may lose support from workmates, as he may be seen as joining the other side. This would show weakness on the part of management, as they are backing down over Zeke s role. This creates the problem of having to demote Akiko. Akiko may be resentful and demotivated. Has Zeke actually broken any disciplinary rules at the firm? If he is being warned without just cause, it may lead to union action and escalate the problem. Workmates may perceive the treatment to be unfair and heavy-handed. Thus Zeke s influence will be enhanced, not reduced. (Continued) 5

6 Option Benefits Drawbacks Work with Zeke to help achieve business aims It is suggested by the case that workgroups are told about new targets. This autocratic approach is potentially counterproductive. Keira should discuss changes with Zeke and his workmates and ensure they understand why change is necessary. This may marginalise Zeke if arguments are persuasive. Workers may be able to make relevant and beneficial suggestions to improve efficiency. Involving workers is time consuming. If workers are not convinced by Keira s arguments and she presses ahead with new targets, then workers may feel that the consultation is just a paper exercise. Revision case study 1 answer provided on Student s CD-ROM. Essay 1 a Outline the main styles of leadership. [8] Autocratic: Leader takes an authoritarian approach. Decisions are not discussed with workers. Leader instructs workers what to do and closely controls work. Workers are made to accept the decision. Democratic: Workers play a full part in decision making. Leader consults workers and discusses decisions. Organisations, such as the John Lewis Partnership, describe their employees as associates, emphasising their integrated role within the business. Decision making may be slower due to the amount of discussion that takes place. Paternalistic: Leader aims to do what is in the best interests of their workers. Similar to autocratic, as the leader takes decisions alone. More consultative approach, as leader will listen to workers before taking decisions. Decisions take into account the needs of workers as well as of the business. Leader tries to persuade the workers to accept the decision rather than simply enforcing the decision. Laissez-faire: This approach allows workers to get on with the job within very broad limits. This may be seen as an extreme form of democratic leadership, as workers are able to take decisions for themselves. There is little management input into the work done by employees. 6

7 b Examine the view that the appropriate style of leadership varies with business circumstances. [17] Autocratic: This approach may be useful in a crisis situation where decisions need to be taken quickly. In a crisis there is no time to discuss issues with workers; leaders may need to act quickly to minimise the damage to the business. This approach is typically used in armed forces and the police there is a need for swift decision making. This approach may be appropriate if workers are lazy and unwilling to take responsibility. This approach may be appropriate in a recession as an autocratic leader will make quick decisions. This approach is likely to cause problems, as it leaves workers feeling demotivated and unimportant. A problem with autocratic leaders is that they become bottlenecks because people learn that the best survival skill is to ask the manager first before making a decision. People learn to wait for instructions or become terrified about making the wrong decision. Creativity is discouraged, and the most talented people eventually leave. Democratic: This approach may be more effective at motivating workers, as they will feel valued by the organisation. Motivational theorists, such as Maslow and Herzberg, identify responsibility as a factor that will motivate. Where workers are highly trained, motivated and ambitious, a democratic style of management may be beneficial. In a recession a democratic leader may be better as they will help create a more positive environment. Democratic leaders typically need excellent communication skills and the ability to generate two-way communication. Laissez-faire: This approach may be beneficial where jobs are easily learned and, therefore, workers can be left to get on with it. It may also be appropriate where workers are highly skilled or have technical expertise, e.g. in research and development. If workers are essentially lazy, then it will not be successful as workers will avoid work if allowed to. Evaluation may consider: The most appropriate style of management depends on a wide range of factors, such as the abilities of the manager and employees, the nature of the task and the circumstances of the firm. For example, faced with a complex problem a manager may well wish to discuss any action with workers if they are well trained and motivated. A manager with a simple decision to make may feel that discussion is a waste of valuable time. 7

8 A manager s leadership style should, therefore, change according to the specific circumstances and the people involved. Top tip Although four styles of leadership are identified in the Coursebook, in practice there is a spectrum of styles from autocratic to laissez-faire. Applied answers recognise that an individual leader often displays a range of styles in the way they manage. Further reading McGregor, D., The Human Side of Enterprise, Penguin. Drucker, P., The Practice of Management, Butterworth Heinemann. Enterprise Rent-A-Car, Using a range of management styles to lead a business, 8