Managerial Leadership MGTO 234 - 1

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Managerial LeadershipMGTO 234 - 1
Dr. William A. Snow Hong Kong University of
Science Technology Department of Management of
Organizations College of Business Management
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Introduction

• WHO AM I AND WHO ARE YOU?
• RESOURCES AVAILABLE TO YOU
• LETS TALK ABOUT THE SYLLABUS
• HOW CLASS WILL BE DELIVERED
• CLASS MANAGEMENT
• YOUR OVERALL EVALUATION

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Cases (3)

• OPPORTUNITY TO SOLVE A PROBLEM IN A TEAM SETTING
• TWO CASES ANALYZED INDIVIDUALLY BY YOU
• ONE CASE ANALYZED AND PRESENTED AS A TEAM
• STRUCTURE FOR CASE ANALYSES-MORE LATER!

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Chapter 1

• Leadership Is Everyones Business

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Defining Leadership

• Leadership is
• Leadership involves

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Leadership and management are closely related but
distinguishable functions
Leadership
Management
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Leadership and Management

• Distinctions between managers and leaders
• Managers Leaders
• -administer -innovate.
• -maintain -develop
• -control -inspire.
• -imitate -originate
• -short-term view -long-term view
• -how and when -ask what and why
• -accept the status -challenge it
• quo

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Myths That Hinder Leadership Development

• Good Leadership Is All Common Sense
• Leaders Are Born, Not Made
• The Only School You Learn Leadership from is the
  School of Experience

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Context for Studying Managerial Leadership

• VIDEO, CONNECTIONS
• AGRICULTURAL AGE PEOPLE AND THE LAND
• INDUSTRIAL AGE PEOPLE AND MACHINES
• INFORMATION AGE PEOPLE AND INFORMATION
• FIRST, A REVIEW OF THE EVOLUTION OF
  MANAGEMENT/LEADERSHIP THOUGHT

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Context
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Context

• Scientific Management School 1800s-Early 1900s
• Large numbers of workers required to work
  together in leader-follower relationships
  factors involved
• size of organization
• influence of workers
• authority of leaders
• leadership

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Context

• Frederick W. Taylor-Father of Scientific
  Management
• Eliminate inefficiency and improve productivity
• Owners lower costs, higher profits
• Workers wages increased, better work conditions
• Prescription theory one best way
• Showed that work and leadership could be studied
  and developed on a scientific basis
  (behavioral/social sciences research)

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Context

• Bureaucratic Organization School 1800s-Early
  1900s
• Max Weber-Father or Organizational Bureaucracy
• Attempted to develop an organization design based
  on objective principles and eliminate emotion and
  tradition of the past
• Observed industrial firms, Catholic church,
  German army (WWI)
• Saw positive accomplishments by good
  organizations also noted people being promoted
  based on social standing not competence
• Max Weber Principles
• Specialization of labor
• Hierarchy of authority
• Procedures and rules
• Impersonality of discipline
• Promotion and selection by competence

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Context

• Administrative Management School 1800s-Early
  1900s
• Henry Fayol-Father of Administrative Management
• Concerned with job of management and leadership
• Focused on functions leaders perform
• Conceptualized leaders jobs as a series of stages
  including
• --Planning --Organizing
• --Directing --Controlling
• --Staffing
• We still use these stages today

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Context

• Believed that certain functions or activities are
  relatively important at different levels of the
  organization
• Leadership/administrative functions are
  accomplished at or near the top of an
  organization
• proposed that all operations in business could be
  classified under one of 6 categories
• Technical (production)
• Commercial (purchasing sales)
• Financial (funding control of capital)
• Security (protection)
• Accounting (recording)
• Administration (plan, control coordinate)

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Context

• Taylors, Fayols and Webers research and
  observations resulted in some new thinking about
  organizations
• multiple levels and functions
• extensive division of labor
• chains of command (wire diagrams)
• exacting rules, procedures, and policies for
  guiding behavior
• employees given limited opportunities to
  contribute ideas
• decisions were made by leaders NOT followers
• Leaders were also responsible for the design and
  specification of jobs

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Context

• Human Relations School Early 1900s
• Chester Bernard and Elton Mayo-Key Contributors
• Chester Bernard
• Believed leaders possess authority to influence
  behavior simply because employees accept it
• Communication skills are critical for a leader
• Being a good citizen of the community is
  important
• Cooperation is to be substituted for competition
  in building a more ideal society

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Context

• Elton Mayo
• Hawthorne studies at Western Electric (Mayo)
• Studies on work efficiency and its relationship
  to working conditions
• Relationship between quality and quantity of
  lighting in workplace and worker productivity

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Context

• Unexpected results in the Hawthorne studies
• Lighting and other environmental conditions had
  relatively minor influence on employee
  performance
• Status of belonging to such a group had more
• influence on performance than any changes in work
  conditions (social)
• Workplace is a small social system attitudes
  develop friendships and leaders emerge
  guidelines of behavior are defined by the group
• Individual performance is influenced by social
  relations among group members
• Overall, these results couldnt explain the
  theories of Taylor, Fayol and Weber

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Context

• VIDEO, HAWTHORNE STUDIES-ELTON MAYO
• Again, Hawthorne results productivity is a
  function of social norms, informal groupings,
  communications, and the intensity of employee
  involvement not just environment
• Superior performance was linked to employee
  satisfaction
• New words evolved leadership rewards
  motivation communication

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Context

• Human Resources School 1950s-
• Douglas McGregor, Key Contributor
• The Human Side of Enterprise (1960) a
  groundbreaking piece of research
• Leaders have 2 different sets of assumptions
  about human nature (X and Y)
• Findings
• Leaders assumptions affects their attitudes
  toward followers
• Followers learn from the leaders how to behave
  (theory X or Y manner) which involves rewards,
  recognition and punishment

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Context
THEORY X THEORY Y
1. Avoid work. 1. Will work toward goals.
2. Avoid responsibility. 2. Will assume responsibility.
3. Need direction. 3. Can self-direct.
4. Cannot make decisions. 4. Can make decisions.
5. Not achievement oriented. 5. Want to achieve.
6. Not dependable. 6. Are dependable.
7. Motivated by money. 7. Motivated by interest or challenge.
8. Not concerned with organizations needs. 8. Are concerned with their organizations.
9. Must be controlled. 9. Want to be supported.
10. Cannot change. 10. Want to develop.
Assumptions About People Adapted from Douglas McGregor, The Human Side of Enterprise, New York, McGraw-Hill, 1960. Used with permission of McGraw-Hill, Inc. Assumptions About People Adapted from Douglas McGregor, The Human Side of Enterprise, New York, McGraw-Hill, 1960. Used with permission of McGraw-Hill, Inc.
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Context

• Human Resources approach
• create conditions so that organization members
  can achieve their own goals
• direct their efforts toward the success of the
  enterprise
• win-win situation organization and members get
  what they want

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Context

• From a managerial leadership perspective
• AN INTEGRATED VIEW OF CULTURE, STRATEGY
  RESOURCES IN TODAYS ORGANIZATIONS
• OVERALL FOCUS IS ON PEOPLE (HUMAN RESOURCES)
  THEY ARE THE KEY VARIABLE LEADERS INTERACT WITH
  TO GET WORK DONE

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Context
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Context

• LEADERSHIP AND HUMAN RESOURCES STRATEGIC
  CONSIDERATIONS

FLOW INFLUENCE REWARD SYSTEMS WORK SYSTEMS
INTO THROUGH OUT POWER AUTHORITY CONTROL REWARDS RECOGNITION JOB CHARACTERISTICS MODEL (JCM)
RECRUIT SELECT TED JOB DESIGN UTILIZE RETAIN AUTONOMY PLANNING VARIABILITY DECISION MAKING PARTICIPATION REVOLUTION IN THIS AREA NEW REWARDS ABC SCANLON PLAN ENTRENEURIAL REWARDS SKILL VARIETY JOB IDENTITY JOB SIGNIFICANCE AUTONOMY FEEDBACK
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Context

• EVOLUTION OF LEADERSHIP HUMAN RESOURCES -
  STRATEGIC CONTEXT

EVOLUTION OF LEADERSHIP EVOLUTION OF LEADERSHIP EVOLUTION OF LEADERSHIP EVOLUTION OF LEADERSHIP EVOLUTION OF LEADERSHIP
AGRICULTURE AGE (LAND) INDUSTRIAL AGE (MACHINES) INFORMATION AGE (INFO) ? AGE (TECHNOLOGY ECONOMY)
FLOW
INFLUENCE
REWARD SYSTEMS
WORK SYSTEMS
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Context

• TEMPLATE FOR THE FUTURE-MARSHALL PLAN (EUROPE)
• TEMPLATE FOR THE FUTURE-JAPAN, EUROPE, HONG KONG
• TEMPLATE FOR THE FUTURE-THAILAND, TAIWAN, HONG
  KONG, SOUTH KOREA
• REMEMBER CHINA INDIA HAVE 55 OF WORLDS
  POPULATION
• FUTURE RUSSIA, VIETNAM, PERU, CUBA

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Context
TEMPLATE OF INDUSTRIAL DEVELOPMENT TEMPLATE OF INDUSTRIAL DEVELOPMENT TEMPLATE OF INDUSTRIAL DEVELOPMENT TEMPLATE OF INDUSTRIAL DEVELOPMENT
TIME RESOURCES PROVIDED PROVIDERS RECIPIENTS
1940s- 1960s MARSHALL PLAN ECONOMIC TECHNOLOGY FINANCIAL HUMAN RESOURCES UNITED STATES EUROPE JAPAN
LATE 1960s SAME WITHOUT MARSHALL PLAN EUROPE JAPAN UNITED STATES TAIWAN THAILAND HONG KONG SOUTH KOREA
EARLY 1980s SAME WITHOUT MARSHALL PLAN EUROPE JAPAN UNITED STATES TAIWAN THAILAND HONG KONG SOUTH KOREA VIETNAM MAINLAND CHINA INDIA IRAN MYRAMAR NORTH KOREA PERU CUBA
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Context

• THE PACE OF CHANGE IS RAPID
• VIDEO, MEGATRENDS ASIA
• Who is John Naisbitt?
• Social forecaster, speaker and advisor to many
  leading corporations
• Top authority on deeply rooted social, economic,
  political and technological movements
• Megatrends Asia is a highly disciplined
  examination of the underlying forces that have
  been transforming a society (mainland China) and
  that will shape its future

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Megatrends Asia (8)

• 1.From Nation-States to Networks
• The power of Japan as a nation-state is giving
  way to dynamic collaboration of the Chinese
  network it is this network that will dominate
  the region
• 2. From Traditions to Options
• The west is handicapped by the emergence and
  growth of the welfare state which Asia will not
  accept new options in all aspects of life are
  now open to Asians

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Megatrends Asia (8)

• 3. From Export-Led to Consumer Driven
• Asian economies will increasingly be fueled by
  consumer spending and, with it, an emerging
  middle class by 2000, Asia will have almost half
  a billion people who are categorized as middle
  class
• 4. From Government-Controlled to Market-Driven
• Central government control direction have
  shifted to market economies fueling an explosion
  of economic growth and opportunities

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Megatrends Asia (8)

• 5. From Farms to Supercities
• This shift is transforming Asia, moving it to the
  next era of development away from agricultural
  to industrial societies
• 6. From Labor-Intensive to High Technology
• There is a dramatic shift from labor-intensive
  agriculture and manufacturing to state-of-the-art
  technology in manufacturing and services..most
  pronounced in the rush to computers and
  telecommunications

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Megatrends Asia (8)

• 7. From Male Dominance to the Emergence of Women
• There is a dramatic increase in women
  entrepreneurs throughout Asia in China, women
  make up 25 of all entrepreneurs, and they now
  participate in all aspects of Asian life
• 8. From West to East
• The world used to mean the Western world global
  trends now are forcing a new reality Asia was
  once the center of the world, and now the center
  is again returning to Asia

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Context

• Major Research and Publications by Naisbitt
• Megatrends Ten New Directions Transforming Our
  Lives
• Megatrends 2000
• Megatrends for Women
• Re-inventing the Corporation Transforming your
  Job and Your Company for the New Information
  Society
• Megatrends Asia

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Context

• OUR FOCUS
• PEOPLE UTILIZATION AND RETENTION IN ORGANIZATIONS
  
• MANAGERIAL LEADERSHIP

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Context
LEADERSHIP PERSPECTIVE A MODEL OF PEOPLE
UTILIZATION RETENTION