Management - Lecture 1 Dr. Berna Bridge Izmir Instıtute of Technology.

Management - Lecture 1

Dr. Berna BridgeIzmir Instıtute of Technology

İYTE Management Lectures 2

The field of management is undergoing a revolution.

The traditional management paradigm assumes the purpose of management is to control and limit people, enforce rules and regulations, seek stability and efficiency, design a top down hierarchy to direct people and achieve bottom-line results.

İYTE Management Lectures 3

The emerging paradigm recognises that today’s managers need different skills to engage worker’s hearts and minds as well as take advantage of their physical labour.

İYTE Management Lectures 4

The emerging paradigm focuses on leadership, on harnessing people’s creativity and enthusiasm, finding shared vision and values, and sharing information and power.

Teamwork, collaboration, participation and learning are guiding principles in today’s complex business environment.

İYTE Management Lectures 5

The focus is on developing and not controlling.

Both the new and the traditional paradigm are guiding management actions in the world today.

İYTE Management Lectures 6

A model of management

There is no ‘one best way’ to manage.

Understanding management is a process of adopting theory into practice, integrating appropriate models and procedures from other organisations.

İYTE Management Lectures 7

Becoming a manager is learning to engage in a debate about purpose and values.

People learn to become effective managers only by managing. Mistakes should be perceived as opportunities for enhancement and development.

İYTE Management Lectures 8

….

The effective manager is able to come to terms with a range of complex situations and issues.

Managing involves changing. ‘To be perfect is to have changed often’.

İYTE Management Lectures 9

Strategic Management

Strategic management requires an overview of the organisation, which includes all its activities and an extended time-scale.

Defining purpose is a central aspect of management and is expected to relate to output.

İYTE Management Lectures 10

Leaders nowadays have greater scope to adopt a strategic approach to management.

İYTE Management Lectures 11

Strategic planning

A process operating in an extended time-frame (three to five years) which translates vision and values into significant, measurable and practical outcomes.

Although the primary responsibility of senior management, the process requires two-way communication at all stages and has to be focused on the core purpose and practical activities of the organisation.

İYTE Management Lectures 12

Tactical and strategic management

The division between management and leadership may be close to the division between tactical and strategic management.

Tactical leadership involves analyses which lead to administrative action and means a minor magnitude which are of small scale and which serve larger purposes.

İYTE Management Lectures 13

Strategic leadership by contrast is the art and science of enlisting support for broader policies and purposes and for devising longer term plans.

İYTE Management Lectures 14

Is leadership a subset of management?

Historically was thought so.

Later, empirical studies reinforced the notion of leadership as a distinctive component of organisational effectiveness which needed to be differentiated from management and administration.

İYTE Management Lectures 15

Leadership then was redefined as concerned with values, vision and mission, management concerned with execution, planning, organising, deploying and administration concerned with operational details.

İYTE Management Lectures 16

Organisational Psychology

Has provided many of the ‘practical’ theories of management.

Work on teams, motivation, perceptions, behaviour and social relationships has done much to inform actual practice.

Many of the issues such as evaluating performance, management of small work units, relationship between meetings and decision making have links to organisational psychology.

İYTE Management Lectures 17

Leadership

Leadership is the ability to influence people towards the attainment of organisational goals.

Management and leadership are both important in organisations.

Management promotes stability, order, and problem solving within the organisation.

Leadership promotes vision, creativity, and change in organisation.

İYTE Management Lectures 18

Leader versus Manager Qualities

LEADER: SOUL Visionary Passionate Creative Flexible Inspiring Innovative Courageous Imaginative Experimental Initiates change Personal Power

MANAGER: MIND Rational Consulting Persistent Problem Solving Tough-minded Analytical Structured Deliberate Authoritative Stabilising Position power

İYTE Management Lectures 19

Position Power

The traditional manager’s power comes from the organisation.

The manager’s power gives him or her the power to reward or punish subordinates in order to influence their behaviour.

İYTE Management Lectures 20

Power coming from a formal management position in an organisation and the authority granted to it is called legitimate power.

Reward power stems from the authority to bestow reward on other people.

The opposite of reward power is coercive

power. The authority to punish or recommend punishment.

İYTE Management Lectures 21

Personal Power

In contrast to the external sources of position power, personal power most often comes from internal sources.

Such as a person’s special knowledge or personality characteristics.

Personal power is the tool of the leader.

İYTE Management Lectures 22

Personal Power

Expert Power: Power that stems from special knowledge or skill in the task performed by subordinates.

Referent power:Power that results from characteristics that command subordinates’ identification with, respect and admiration for, and desire to emulate the leader.

İYTE Management Lectures 23

Personal Characteristics of Leaders

Physical characteristics: Activity, Energy

Social Background: Mobility

Intelligence and Ability: Judgement, decisiveness, knowledge, fluency of speech

İYTE Management Lectures 24

Personal Characteristics of Leaders

Personality: Alertness, originality, creativity, personal integrity, ethical conduct, self-confidence

Work-related characteristics: Achievement drive, desire to excel, drive for responsibility, responsibility in pursuit of goals, task orientation

İYTE Management Lectures 25

Social characteristics: Ability to enlist cooperation, cooperativeness, popularity, prestige, sociability, interpersonal skills, social participation, tact, diplomacy

İYTE Management Lectures 26

Autocratic versus Democratic Leader

Autocratic leader

A leader who tends to centralise authority and rely on legitimate, reward, and coercive power to manage subordinates.

Democratic leader

A leader who delegates authority to others, encoura-ges participation, and relies on expert and referent power to manage subordi-nates.

İYTE Management Lectures 27

Change in leadership

What kind of people can lead an organisation through major change?

Two types of leadership that can have substantial impact are charismatic and transformational. These types of leadership are best understood in comparison to transactional leadership.

İYTE Management Lectures 28

Leadership ‘forces’

Technical- Management techniques. The leader as ‘management engineer’

Human- Social and interpersonal resources. The leader as ‘human engineer’

Educational- Expert knowledge. The leader as ‘clinical practitioner’

İYTE Management Lectures 29

Symbolic- Focusing attention on what is important. The leader as ‘chief’

Cultural- Building a unique organisational culture. The leader as ‘high priest’

İYTE Management Lectures 30

Transactional leaders

A leader who clarifies subordinates’ role and task requirements, initiates structure, provides rewards, and displays consideration for subordinates.

Transactional leaders excel at management functions. They are hard-working, tolerant and fair-minded.

İYTE Management Lectures 31

They take pride in keeping things running efficiently and smoothly.

They have a sense of commitment to the organisation and conform to organisational norms and values.

İYTE Management Lectures 32

Charismatic leaders

A leader who has the ability to motivate subordinates to transcend their expected performance is a charismatic leader.

They go beyond transactional leadership techniques.

İYTE Management Lectures 33

Charisma has been referred to as ‘a fire that ignites followers’ energy and commitment, producing results above and beyond the call of duty.

İYTE Management Lectures 34

Charismatic leaders

Charismatic leaders have an impact on the emotions of subordinates.

Examples are: Martin Luther King, Adolf Hitler and Atatürk.

İYTE Management Lectures 35

Charisma can be used for positive outcomes that benefit the group, but it can also be used for self-serving purposes that lead to deception, manipulation and exploitation of others.

İYTE Management Lectures 36

Transformational leaders

Transformational leader is a leader distinguished by a special ability to bring about innovation and change.

They are similar to charismatic leaders but are distinguished by their special ability to bring about innovation and change.

İYTE Management Lectures 37

These leaders have the ability to lead change in the organisation’s mission, strategy, structure, and culture as well as to promote innovation in products and technologies.

They do not rely on rules and control.

They focus on vision, shared values, and ideas to build relationships.

İYTE Management Lectures 38

The Moral Dimension

Leadership carries a moral dimension.

The leaders of organisations carry a moral responsibility with regard to values that inform the culture and mission of the organisation.

İYTE Management Lectures 39

Trustworthy behaviour (Honesty)ConsistencyResponsibilityPerseveranceFairnessThoughtfulnessRespectGood citizenship...

İYTE Management Lectures 40

Kaynak: Vizyoner Liderlik ve Etkin Yöneticilik Berna Bridge Beyaz Yayınları