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D31PO
People and Organisation Management
in the Built Environment
School of the Built Environment
© Heriot-Watt University 2014
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Address for correspondence:
School of the Built Environment Heriot-Watt University Riccarton Edinburgh EH14 4AS UK Tel: +44 (0) 131 449 8363 Fax: +44 (0) 131 451 3161
Author:
Professor Ming Sun School of the Built Environment Heriot-Watt University Riccarton Edinburgh EH14 4AS UK
Tel: +44 (0) 131 451 4649 Fax: +44 (0) 131 451 3161 e-mail: [email protected]
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Contents COURSE OVERVIEW .............................................................................................................7
Course Aims .....................................................................................................................7
Learning Outcomes ..........................................................................................................7
Course Structure ..............................................................................................................8
Reading List ......................................................................................................................8
Assessment Method ........................................................................................................8
1. INTRODUCTION TO MANAGEMENT ................................................................................9
1.1 Definitions of Management .......................................................................................9
1.2 Management Process ............................................................................................. 10
1.3 Evolution of Management Theory .......................................................................... 10
1.3.1 Classical approach ............................................................................................ 11
1.3.2 Human Relations Approach ............................................................................. 13
1.3.3 Systems Approach............................................................................................ 14
1.3.4 Contingency Approach ..................................................................................... 16
1.3.5 Modern approaches to management .............................................................. 17
2. NATURE OF ORGANISATIONS ....................................................................................... 19
2.1 Definition of Organisation ...................................................................................... 19
2.2 Basic Components of an Organisation .................................................................... 19
2.3 The Process of Organisation ................................................................................... 20
2.4 Organisation Structure ............................................................................................ 21
2.4.1 Small structure ................................................................................................. 22
2.4.2 Machine bureaucracy ...................................................................................... 22
2.4.3 Divisionalised structure ................................................................................... 23
2.4.4 Professional bureaucracy ................................................................................. 24
2.4.5 Adhocracy ........................................................................................................ 24
2.5 Organisational Evolution ......................................................................................... 25
2.6 Project Based Organisation ..................................................................................... 26
3. INDIVIDUAL DIFFERENCES............................................................................................. 28
3.1 How do Individuals Differ? ...................................................................................... 28
3.2 Personality .............................................................................................................. 28
3.2.1 Nomothetic approach ...................................................................................... 28
3.2.2 Idiographic approach ....................................................................................... 30
3.2.3 Type A and Type B Personalities ...................................................................... 30
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3.3 Perception and Communication ............................................................................. 30
3.4 Cultural Differences ................................................................................................ 31
3.5 Equality and Diversity Legislations.......................................................................... 32
3.5.1 Race .................................................................................................................. 32
3.5.2 Gender ............................................................................................................. 32
3.5.3 Disability ........................................................................................................... 32
3.5.4 Sexual Orientation ........................................................................................... 32
3.5.5 Religion or Belief .............................................................................................. 33
3.5.6 Age ................................................................................................................... 33
4. LEADERSHIP................................................................................................................... 34
4.1 Leadership Defined ................................................................................................. 34
4.2 Leadership vs Management .................................................................................... 34
4.3 Framework for the Study of LEADERSHIP ............................................................... 34
4.4 The Qualities or Traits Approach ............................................................................ 35
4.4.1 Determinant variables ..................................................................................... 36
4.4.2 Key leadership qualities ................................................................................... 36
4.5 The Functional Approach ........................................................................................ 36
4.5.1 Action-centred leadership ............................................................................... 36
4.5.2 Accessory functions ......................................................................................... 37
4.6 Leadership as a Behaviour Category ....................................................................... 38
4.7 Styles of Leadership ................................................................................................ 39
4.7.1 Continuum of leadership behaviour ................................................................ 40
4.8 Leadership Contingency Model .............................................................................. 41
4.8.1 Fiedler's leadership contingency model .......................................................... 41
4.8.2 Best fit approach to leadership ........................................................................ 42
4.9 Transformational Leadership .................................................................................. 43
4.10 Inspirational or Visionary Leadership ................................................................... 43
4.11 Leadership in the Construction Industry .............................................................. 43
5. MOTIVATION ................................................................................................................. 44
5.1 The Meaning of Motivation .................................................................................... 44
5.2 MOTIVATION THEORIES .......................................................................................... 45
5.2.1 Content Theories of Motivation ...................................................................... 45
5.2.2 Process Theories of Motivation ....................................................................... 47
5.3 Motivation and Performance at Work .................................................................... 48
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5.3.1 Diagnosing work performance problems ........................................................ 48
5.3.2 Enhancing individuals’ abilities ........................................................................ 48
5.3.3 Fostering a motivating work environment ...................................................... 49
5.3.4 Elements of an Effective Motivation Program ................................................. 50
6. MANAGING CONFLICTS................................................................................................. 54
6.1 Interpersonal conflict management ....................................................................... 54
6.2 Mixed feelings about conflict.................................................................................. 54
6.3 Diagnosing the type of interpersonal conflict ........................................................ 55
6.3.1 Conflict focus ................................................................................................... 55
6.3.2 Conflict source ................................................................................................. 56
6.4 Selecting the Appropriate Conflict Management Approach .................................. 57
6.4.1 Comparing conflict management and negotiation strategies ......................... 58
6.4.2 Selection factors .............................................................................................. 58
6.5 Resolving Interpersonal Confrontations Using the Collaborative Approach .......... 59
6.5.1 A general framework for collaborative problem-solving ................................. 59
6.5.2 Four phases of collaborative problem solving ................................................. 59
7. GROUPS AND TEAMWORK ........................................................................................... 62
7.1 Definitions ............................................................................................................... 62
7.1.1 Group ............................................................................................................... 62
7.1.2 Team ................................................................................................................ 62
7.2 Differences between Group and Team ................................................................... 62
7.3 Group Cohesiveness and Performance ................................................................... 63
7.3 Team Development Process ................................................................................... 64
7.4 Working in Groups and Teams ................................................................................ 65
7.4.1 Team roles........................................................................................................ 65
7.4.2 Patterns of communication ............................................................................. 66
7.5 Effective Teamwork ................................................................................................ 67
8. CONTROL AND EMPOWERMENT .................................................................................. 68
8.1 Control .................................................................................................................... 68
8.2 Elements of an Organisational Control System ...................................................... 69
8.3 Power ...................................................................................................................... 69
8.4 Empowerment ........................................................................................................ 70
8.4.1 Manager-subordinate relationship .................................................................. 70
8.4.2 Benefits of delegation ...................................................................................... 71
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8.4.3 Empowerment vs delegation ........................................................................... 71
8.5 A Systematic Approach to Empowerment and Delegation .................................... 72
9. SOCIAL RESPONSIBILITY AND ETHICS ............................................................................ 74
9.1 What is Corporate Social Responsibility? ............................................................... 74
9.2 Why CSR becomes important? ............................................................................... 75
9.3 CSR continuum ........................................................................................................ 75
9.4 Role of legislations .................................................................................................. 76
9.5 Organisational Stakeholders ................................................................................... 76
9.5 UN Global Compact (UNGC) ................................................................................... 76
9.6 Business Ethics ........................................................................................................ 77
10. ORGANISATION CULTURE AND CHANGE MANAGEMENT .......................................... 79
10.1 Organisational Culture .......................................................................................... 79
10.2 Types of Organisational Culture ........................................................................... 80
10.3 The Importance of Culture .................................................................................... 80
10.4 The Nature of Organisational Change .................................................................. 80
10.4.1 Forces of change ............................................................................................ 80
10.4.2 Resistance to change ..................................................................................... 81
10.5 Process of Change ................................................................................................. 82
10.6 Managing Organisational Change ......................................................................... 83
10.7 Two Decades of Change in the Construction Industry ......................................... 83
10.7.1 Latham report ................................................................................................ 84
10.7.2 Technology Foresight report .......................................................................... 84
10.7.3 Egan report .................................................................................................... 84
REFERENCES ...................................................................................................................... 86
Appendix 1: How to Assess Your Leadership Style ........................................................... 87
Appendix 2: Leadership in the construction industry ....................................................... 87
Appendix 3: Effective Teamwork: A Best Practice Guide for the
Construction Industry ....................................................................................................... 87
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COURSE OVERVIEW
This course focuses on people and organisational management. It will introduce key concepts of management, including management theories, nature of organisations, leadership, motivations, etc. In addition to introduction to basic theory, the course will explore the application of these concepts in business management, especially in the context of the construction industry. Students will be encouraged to relate the course materials to their own experience and to reflect on their personal development in a synoptic way. It is hoped that this will be valuable in terms of career development, as management competences and self-reflection are increasingly sought in practice.
Course Aims
1. To develop an understanding of people management and its relation to both personal and organisational objectives
2. To develop an understanding of the principles of management in organisations and of management techniques
3. To learn how management relates to organisations and individuals in managing change
4. To develop an understanding of contemporary good practice in management concepts, including recent initiatives
Learning Outcomes
Knowledge: • A high level of knowledge about complex management theories and their
application in built environment organisations, including applied research findings and current good practice techniques
• An understanding of the complexity of management concepts and their application in practice
• An understanding of the importance of management in shaping and influencing the aims of built environment organisations and its application in practice
• To understand the multi-faceted relationships between organisational management and an individual’s personal motivation and objectives
• An understanding of the role of management competencies in continuous professional development
Skills: • To develop skills in critical and creative analysis of theory and practice in
management topics • To explicitly develop a professional level of inter-personal, interdisciplinary,
and team working skills
Values: • To recognise the crucial role employees play in effectively meeting
organisational goals • To recognise the importance of the management and interpersonal skills
that underpin a professional’s technical competence
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Course Structure
The course is structured as ten learning units, covering the following topics:
1. Introduction to management
2. Nature of organisations
3. Individual differences
4. Leadership
5. Motivation
6. Managing conflicts
7. Groups and teamwork
8. Control and empowerment
9. Social responsibility and ethics
10. Organisational Culture and Change management
Reading List
This course note provides a study guide for students. It should be used in conjunction with a core reading book:
Mullins L. and Christy (2010) (9th Ed.) Management and organisational behaviour, Financial Times Prentice Hall, Harlow (available as e-book from HWU library)
In addition, the following books are suggested readings • Cole, G.A. (2011) (7th Ed.) Management Theory and Practice, Letts
Educational, London. • Debra L. Nelson., James Campbell Quick (2011) (2nd Edition), ORGB 2,
Cengage • Rollinson, D. (2008) (4th Edition) Organisational Behaviour and Analysis,
prentice Hall • Clegg, S., Kornberger, M. and Pitsis, T. (2005) Managing and Organizations:
An Introduction to Theory and Practice. Sage. London • Clegg, S., Kornberger, M. and Pitsis, T. (2008) (2nd Ed.) Managing and
Organizations: An Introduction to Theory and Practice. Sage. London • Grey, C. (2008) (2nd Ed). A very short, fairly interesting and reasonably
cheap book about studying organizations. Sage. London • Handy, C. (1993). Understanding organizations. Penguin. London • Whetten D. A. and Cameron K. S., (2004) Developing Management Skills, 6th
Edition, published by Prentice Hall
Assessment Method
This course will be assessed through a 2 hour written examination (100%).
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1. INTRODUCTION TO MANAGEMENT
This Unit introduces the concept and processes of management. It discusses the evolution history of management theories. It ends with a look at the particular implication of management in construction.
1.1 Definitions of Management
In recent years, there has been a proliferation in the use of the word “management”, such as “strategic management”, “operational management”, “team management”, “quality management”, “risk management”, “human resources management”, “change management”, etc. With these wide uses, it is not surprising that there is no single agreed definition about management. There are several noteworthy definitions by various experts:
"Management is an art of knowing what is to be done and seeing that it is done in the best possible manner." (F.W. Taylor)
"Management is to forecast and plan, to organize, to command, to coordinate, and to control." (Henri Fayol)
“Management is defined as the process by which a co- operative group directs action towards common goals” (Joseph Massie)
"Management is the coordination of all resources through the process of planning, organising, directing and controlling in order to attain stated goals." (Henry Sisk)
"Management is a process of working with and through others to achieve organizational objectives in a changing environment, central to this purpose is the effective and efficient use of limited resources." (Rovert Kreitner)
Many other definitions of management can also be found.
Review question
From the various definitions, can you define the essential
elements of management?
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Figure 1.1 Management processes
1.2 Management Process
The process of management is often known as the POLC (Planning, Organising, Leading, Controlling) framework. It outlines the main tasks of management:
Planning: This is about looking to the future and deciding what needs to be achieved; then developing a plan to ensure the goal is achieved. In some cases, planning needs to be done at different levels, e.g., strategic planning, tactical planning and operational planning.
Organising: This is a function that develops an organisational structure and allocates material and human resources for the purpose of achieving objectives set out during the planning stage.
Leading: This is about influencing and inspiring others to perform well not just for themselves and for the benefit for the team and organisation as a whole.
Controlling: This is about monitoring performance and taking corrective actions when under performance occurs.
Review question
What is the importance of each stage of POLC?
1.3 Evolution of Management Theory
Management has been around for a long time in some form or other. But, it is only over the last hundred years that it has emerged as a separate entity. This section plots the development of management thinking from the earliest times to the present.
Early civilisations had a parochial view of the management function. Forms of ad hoc management existed in the military, the household, the Church and government. Organised efforts were typically based around family/clan/ tribal/national groupings. Each group had leaders and followers, with the leaders dictating the actions of their followers.
The industrial revolutions in Britain and the USA in the 1800s led to a focus on organisation, methods and human problems. This period saw a transition from largely rural agricultural based economies to manufacturing organisations in cities and towns.
The two main driving forces for this were changes to more efficient farming practices and the introduction of steam engines that led to the development of mass production
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machinery. The redundant farm labourers were absorbed as workers into the factory system of manufacture or large industrial undertakings such as canal and railway building. The main feature of this era was organised labour in industrial organisations whereby owners dictated the actions of their workers.
One result of the industrial revolution is the emergency of management thinking in its current guise. This management thinking is based on the requirements to organise medium and large scale businesses that have emerged since the middle of the nineteenth century and have become a dominant feature of modern society. Since then, management theory has gone through an evolution process, as indicated in the following figure.
Figure 1.2 Main approaches of management thinking (Mullins and Christy, 2010)
1.3.1 Classical approach
Ideas and concepts based on the writings of industrialists and consultants who were active during the period 1880 to 1950 and can be collectively described as belonging to the classical approach of management. Notable contributors to this approach include: Frederick Taylor, Frank and Lilian Gilbreth, Henry Gantt, Henri Fayol, Lyndall Urwick, E F L Brech, Max Weber, and so on. Each of these authors had their own particular perspectives toward management. However, they all share the main objective of increasing efficiency through a set of principles, these usually include:
Hierarchical Structure: Classical approach emphasises formal structure of organisations. Management is arranged in a hierarchy of different levels. The levels of leadership and responsibilities are clear and well defined. Higher level managers have authority over lower level ones.
Division of Labour: Production processes are broken down into smaller tasks that are easy to complete. The divided tasks are allocated to individual employees. Employees' responsibilities and expectations are clearly defined. This approach allows workers to narrow their field of expertise and to specialize in one area. The division of labour approach leads to increased productivity and higher efficiency, as workers are not expected to multitask.
Monetary Incentive: Classical approach believes that employees are motivated by monetary rewards. In other words, they will work harder and become more productive if they have an incentive to look forward to. This gives management easier control over the workforce. Employees feel appreciated when being rewarded for hard work.
Autocratic Leadership: The autocratic leadership approach is the central part of classical management theory. It states that an organization should have a single
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leader to make decisions, to organize and direct the employees. All decisions are made at the top level and communicated down.
Two main ‘sub-groupings’ of the classical approach are: Scientific Management, and Bureaucracy.
Scientific management
Scientific Management, also known as Taylorism, is a theory of management that applies science method to management. It is originated from the writing of Frederick W. Taylor. The issue of efficiency of working methods dominated Taylor's work. He believed that there was one “right way” to do a job and that the right man should be chosen to do it. He advocated the idea of specialisation of function, the separation of operational task performance from the function of work planning and control. Thus, the manager's function was to determine the “right way” in which the work was to be performed, choose the best workers for the tasks and the workers simply did the work as efficiently as possible.
Taylor’s principles include:
The development of a true science for each person’s work;
The scientific selection, training and development of the workers;
Co-operation with the workers to ensure work is carried out in the prescribed way;
The division of work and responsibility between management and the workers.
Read Mullins and Christy (2010), the section on “Scientific Management”, pages 45-46
Review question
Consider whether modern organisations implement the ideas of
scientific management in some form or other.
Bureaucracy Max Weber is attributed to the Bureaucracy management theory, which is related to authority structure and relations. Today, bureaucracy is often used to describe inefficient management practice, especially in the public sector. However, Max Weber believed that bureaucracy is an ideal form of administration for large-scale organisations, if it is carefully managed. A bureaucratic administration can lead to effective decision-making, optimum use of resources and successful accomplishment of organisational goals. Weber identified the six key principles with regard to bureaucracy:
1. Division of labour 2. Organization by functional specialty 3. Hierarchical arrangement 4. Management by rules 5. Purposely impersonal 6. Employment based on technical qualifications
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Read Mullins and Christy (2010), the sections on “Bureaucracy”, “Criticism of
Bureaucracy” and “Evaluation of Bureaucracy”, pages 49-52.
Review question
What are the main criticisms of the Bureaucracy approach of
management?
1.3.2 Human Relations Approach
This theory was developed from the study of social and psychological factors that influenced work performance; and concentrated on the human dimension of organisation and management. Elton Mayo played a leading role during the development of this management theory. Mayo developed the idea of “social man” rather than scientific management's idea of the “rational man”. His ideas emanated from the Hawthorne studies, what was originally a scientific management study into the conditions of work in a switch room.
Mayo suggested that membership of a group is important to individuals; that there are informal groups within official, formal groups within organisations; and that these informal groups manage themselves within the constraints set by the formal organisation. Many of his ideas originated from a series of experiments at the Hawthorne plant of the Western Electric Company near Chicago.
The Hawthorne studies
This was originally a study to determine the effect of lighting conditions on performance. It was extended to study social relationships and employee attitudes when employee performance remained constant and actually improved despite the varying conditions.
The following points are the main conclusions that Mayo drew from the study:
Individual workers cannot be treated in isolation, but must be seen as members of a group
The need to belong to a group and have status within it is more important than monetary incentives or good physical conditions
Informal groups at work exercise a strong influence over the behaviour of workers
Supervisors and managers need to be aware of these social needs and cater for them if workers are to collaborate with the official organisation rather than work against it
Basic principles of the human relations school The amount of work carried out by an employee (and hence the level of operational efficiency and productivity) will be determined by both technological/physical factors and social factors.
The highest degree of specialisation does not necessarily lead to the most efficient output. As a consequence, boredom and monotony can affect operational performance, while meaning is sought by the employee in his or her social relationships at work The
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employee is, in part, motivated by a desire to satisfy social needs in the work context. Such non-economic rewards may play a key part in determining the level of the employee's satisfaction and contentment.
The work group may be as influential in shaping individual employee behaviour as are the incentives and controls of management. This will be the case where employees react to management not as individuals but as work group members. Informal leaders may be influential in setting group norms, and in motivating individual employees to adhere to them. Where such leadership emerges, first-line supervision will have to know how to respond to it.
Read Mullins and Christy (2010), the sections on “The Human Relations Approach” and
“Evaluation of The Human Relations Approach”, pages 53-56.
Review question
What are the main differences between the human relations
approach and the classical approach?
1.3.3 Systems Approach
The Classical approach is often criticised for its belief of ‘organisation without people’; while the Human Relations approach is the opposite being ‘people without organisation’. The Systems approach attempts to reconcile these two earlier approaches. It views a company as an interconnected purposive system that consists of several business sections and people. Any part of an organisation’s activities affects all other parts.
Most business organisations can be described as an open system, consisting three main parts namely - input, process and output, as illustrated in the following Figure.
Figure 1.3 An organisation as an input-process-output system
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System boundaries Systems have boundaries that separate them from their environments. This idea aids the distinction between open and closed systems. The relatively closed system has rigid, impenetrable boundaries, whereas the open system has permeable boundaries between itself and a broader suprasystem.
Feedback The concept of feedback is important in understanding how a system maintains a steady state. Information concerning the outputs or the process of the system is fed back as an input into the system, leading to changes in the transformation process and/or future outputs
Hierarchy A basic concept in systems thinking is that of hierarchical relationships between systems. A system is composed of subsystems of a lower order and is also part of a suprasystem. This establishes a hierarchy of the components of the system.
Subsystems An organisation can be sub-divided into a number of subsystems, consisting of:
• A value subsystem: An organisation as a subsystem must accomplish certain goals that are determined by the broader system.
• A technical subsystem: The technical subsystem refers to the knowledge required for the performance of tasks.
• A psychosocial subsystem: The psychosocial subsystem is composed of individuals and groups in interaction.
• A structural subsystem: The structural subsystem is the way in which the tasks of the organisation are divided (differentiation) and co-ordinated (integration).
• A management subsystem: The managerial subsystem spans the entire organisation and relates the organisation to its environment and manages the other subsystems.
The organisational system These various subsystems can be bound together in an overall system as indicated in Figure 1.4. This can also be used to consolidate management thinking. Traditional management thinking emphasised the structural and managerial subsystems and was concerned with developing principles. The scientific management school was concerned with the technical subsystems. The human relations school emphasised the psychosocial subsystem. Thus each approach to management emphasised different subsystems with little recognition of the others. The systems theory considers all the primary subsystems and their interactions.
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Figure 1.4 Organisational system
Advantages and disadvantages
Systems approach offers a thorough way of analysing an organisation and the factors
that influence its performance. It helps to reveal the complexity of management. It
guides managers to adopt an integrated management approach, avoiding analysing
problems in isolation. However, this approach is over-conceptual and unpractical. It
cannot be easily and directly applied to practical problems. Furthermore, although it
recognises the importance of interactions and inter-dependencies, the Systems
approach does not define their nature.
Review question
Consider the relevance of systems thinking to the practice of
management in construction projects.
1.3.4 Contingency Approach
The Contingency approach is a variation on systems thinking. It recognises that the environment and internal subsystems of each organisation are unique and provide the basis for designing and managing specific organisations. Different problems and situations require different solutions and managers must be concerned with identifying which technique will work in particular circumstances. This is in contrast to the Classical approach, which believes in ‘one best way’ of doing a task.
According to this approach, the most appropriate management depends on a number of factors, including:
Nature of an operation,
Organisation strategy,
Subordinates’ characteristics, and
Environment.
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Review question
If a project is underperforming, e.g. experiencing cost overruns
and delays, how would the above four management approaches
deal with the situation differently?
1.3.5 Modern approaches to management
The emphasis for management today is to manage continuous change against the background of a dynamic environment.
Forces for change Hannagan (1995) describes the dynamic environment in the context of time, turbulence, interdependence and technology. These are outlined below.
Time: Advances in IT allow information based tasks to be carried out faster and more efficiently.
Turbulence: Rapid changes in politics, culture and society.
Interdependence: A move away from the idea of controlling all aspects of the supply chain to a growing specialisation and a focus on what the organisation does best.
Technology: IT, automation, communications, electronics, etc.
Managing change Hannagan (1995) also highlights the main elements that need to be considered in managing change. These are leadership, coherence, communication, timing, structure and transition.
Leadership: A clear statement of the vision and objectives for the organisation.
Coherence: Consistency of operational tasks and goals with overall objectives.
Communication: The provision of clear and appropriate information to the relevant people.
Timing: When to take action.
Structure: A logical, structured approach to the process of change.
Transition: This is concerned with the various elements to be considered during the various phases of a management change as illustrated in Figure.
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Figure 1.5 Managing change -elements of transition
Change management will be addressed in more detail in Unit 10.
Modern management theorists Modern management theorists are mainly academics who study organisations and management methods and disseminate this research. Some of the main contributors are listed below:
Peters & Waterman -vision, excellence, empowerment
Porter -managing the environment, competitive advantage
Mintzberg -Culture, structure
Drucker -the practice of management, future trends
Handy -structure and systems, work practices
Kanter -organisational culture, change management
Hammer & Champney -Structures and systems, new technology
Review question
Consider the typical modern business environment in which
management must operate effectively.
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Figure 2.1 Basic Components of an
Organisation Structure
2. NATURE OF ORGANISATIONS
2.1 Definition of Organisation
Organising as a process consists of dividing work among people whose activities must be co-ordinated, specifying the objectives and determining the activities and decisions necessary to achieve these objectives.
It provides the framework for management, the skeleton on which the executive and supervisory functions can build in accordance with the aims and objectives of the directors.
Key organisational variables are as follows:
Objectives – the fundamental aims and goals of the organisation.
People - the individuals who make up the organisation.
Structure – the pattern of organisation and formal relationships within which activities are carried out.
Management – the processes to control and direct the activities of the organisation and efforts of its members.
Additional factors include:
Tasks -the basic tasks required to achieve organisational aims.
Technology -the technical capability of the processes used by the organisation.
Culture -expectations and values of people within the organisation.
External environment -the external market, technological and social conditions affecting the organisation’s activities.
2.2 Basic Components of an Organisation
A typical organisation can be described in terms of an operating component and an administrative component. It can also be divided into five basic components (see Figure 2.1):
Operational core
Operational support
Organisational support
Top management
Middle management
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Read Mullins and Christy (2010), pages 80-81, for detailed explanation of these
components.
Review question
Try to identify these components for an organisation that is
familiar to you.
2.3 The Process of Organisation
The definition and distribution of responsibilities and duties
The recording of the types of relationships, accountability, and the form of communication
The formulation and statement of working procedures, methods and instructions
Principles of organisational design
Schedules of responsibilities, organisation charts and standard procedures should be written down and distributed to all that need to know
Subdivision of responsibilities should be determined by functional or operational specialisation -i.e. a specialised responsibility originating in expert knowledge
A single chief executive should be responsible to the policy forming body i.e. the board of directors, for carrying out all the operations of the business
Decentralisation of decision should be provided by the adequate delegation of responsibility -any limitations should be specifically laid down
Clear lines of accountability should link the chief executive with all points of the operation
The structure must be flexible to accommodate changing circumstances
Analysing relationships can help define the structure and give guidance in manning the structure.
This analysis can establish:
with whom a manager works
the contribution he makes to the work of others
the contribution others make to his work
The main types of relationship are direct or line, functional or staff and lateral. The first of these, direct relationships, is between a superior and his immediate subordinates. The superior exercises formal authority over his subordinates and the subordinate in turn is accountable to his superior for his own performance.
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The superior/subordinate relationship is both upwards and downwards. Not only is it different in type for both subordinate and superior, it is different in number. I.e. a supervisor may have formal authority over several subordinates but each subordinate may have only one boss.
The second, functional or staff relationships is concerned with the situation where departments may rely on other departments for some of their needs in the carrying out of their tasks.
Members of one department will have some form of official relationship with members of others. This relationship is not one of command, rather one of influence in a limited range of activities. Basically the specialist supplies assistance which can be accepted or rejected. This assistance may take the form of information and advice, or the performance of a service.
Lateral relationships are the last and are concerned with employees on the same organisational level. The essence of this relationship is of mutual co-operation, collaboration and co-ordination of their related activities.
These forms of relationship are graphically illustrated in Figure 2.2.
Figure 2.2 Typical organisation chart
Review question
Critically examine and organisational structure that you are
familiar with in the context of good organisational design.
2.4 Organisation Structure
Mintzberg identified five different structures from his studies of organisations. These are as follows:
Small, or entrepreneurial, structure
Machine bureaucracy
Divisionalised structure
Professional bureaucracy
Adhocracy
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Figure 2.3 Small structure
2.4.1 Small structure Simple, informal, flexible, with little staff or middle-line hierarchy, activities revolve around the chief executive, who controls personally through direct supervision.
Graphically illustrated in Figure 2.3.
Context:
simple or dynamic environment
strong leadership, sometimes charismatic, autocratic or both
start-up, crisis, and turnaround
small organisation, “local producers”
Issues:
planning is often a visionary process, broadly deliberate but emergent and flexible in details
leader positions malleable organisation in protected niches
responsive, sense of purpose
vulnerable, restrictive due to size
2.4.2 Machine bureaucracy Centralised bureaucracy with formal procedures, specialised work, sharp division of labour, usually functional groupings, extensive hierarchy. The key is technostructure, charged with standardising the work, but clearly separated from middle line (itself highly developed) and it also has extensive support staff to reduce uncertainty.
Figure 2.4 Machine bureaucracy
Context:
simple and stable environment
usually larger, more mature organisation
rationalised work, rationalised (but not automated) technical system
external control -regulations
otherwise can be closed system
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common in mass production, mass service, government, organisations in the business of control and safety
Issues:
efficient, reliable, precise, consistent
obsession with control leads to
human problems in operating core leads to
co-ordination problems in administrative centre, leads to
adaptation problems at strategic apex
resistance to change, necessary to overlay innovative configuration for revitalisation or else revert to simple configuration for turnaround
hence quantum pattern of change: long periods of stability interrupted by occasional bursts of revolutionary change.
2.4.3 Divisionalised structure Market based “divisions” loosely coupled together under central administrative headquarters. Divisional businesses are run autonomously subject to a performance control system that standardises their outputs. There is a tendency to drive structures of divisions toward machine bureaucracy configuration, as instruments of the headquarters.
This structure is graphically illustrated in Figure on page 8.
Context:
market diversity, especially of products and services (as opposed to clients or regions)
by-product and related product diversification encourages intermediate forms
conglomerate diversification being purest form
typically found in largest and most mature organisations, especially business corporation but also government
Figure 2.5: Divisionalised structure
Issues:
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resolves some problems of machine bureaucracy structure (spreading risk, moving capital, adding and deleting businesses)
conglomerate diversification sometimes costly and discouraging of innovation; improvements in functioning of capital markets and boards make independent businesses more effective than divisions
performance control system risks driving organisation towards socially unresponsive or irresponsible behaviour
tendency to use in public organisations despite dangers due to non-measurable nature of many goals
2.4.4 Professional bureaucracy Bureaucratic yet decentralised; it is dependent on training to standardise the skill of its many operating professionals. The key to its successful functioning is the creation of compartments within which individual professionals work autonomously, subject to the controls of the profession.
There is a minimal technostructure and middle line hierarchy, meaning wide spans of control over professional work, although it has a large support staff similar to the machine bureaucracy to support the professionals.
Figure 2.6 Professional bureaucracy
Context:
complex yet stable environment
simple technical system
often, but not necessarily service sector
Issues:
advantages of democracy and autonomy
decisions made by professional judgement and collective choice, some by administrative sanction
problems of co-ordination between the compartments, of misuse of professional discretion, of reluctance to innovate
unionisation exacerbates these problems
2.4.5 Adhocracy
A fluid, organic, selectively decentralised, “adhocracy” where functional experts are deployed in multi-disciplinary teams of staff, operators, and managers to carry out
25
innovative roles. Co-ordination is by mutual adjustment, encouraged by liaison personnel, integrating manager, and the matrix structure
Context:
complex and dynamic environment, including high technology, frequent product change (due to severe competition), temporary and mammoth projects
typically young due to bureaucratic pressure when ageing
common in young industries
two basic types: market based project groups for contract project work, functional adhocracy for internal administrative work, the latter is found when the operating core is truncated or automated
Figure 2.7 Adhocracy
Issues:
combines more democracy with less bureaucracy, and so is a fashionable structure
effective at innovation
effectiveness achieved at the price of inefficiency
also human problems of ambiguity and dangers of inappropriate transition to another configuration
2.5 Organisational Evolution
As an organisation grows in size, the structure is increasingly decentralised and managers delegate decision making to those parts of the organisation best placed to make those particular decisions.
As an organisation changes its objectives, the organisational design remains consistent with this change As the priorities, as well as the products and services, of an organisation change over time, the organisational structure reflects these changes
As technology changes, so organisation structures change because of alterations to information requirements and decision making.
26
Figure 2.8 Organisational evolution
Review question
Select an organisation that you are familiar with and determine
how closely it resembles one of Mintzberg’s five structures.
2.6 Project Based Organisation
Most conventional organisations have functional based structures. Some companies
have a project-based structure. Their functional units and staff are organized around
each particular project. They usually have project managers that run teams of
employees from different departments. In one organisation there may be many teams
operating at once, but they have no need to interact with each other because each team
is focused on completing its project.
A project based organisation can be within one company. It can also be across a
consortium of different companies. Construction projects usually have project based
structures, which involve multiple companies. Table 2.1 below explains the
characteristics of project organisations.
Due to these special characteristics, project based organisations often show the
following features:
Decisions are not repetitive. Early decisions have impact on later decisions.
Learning time for members is limited.
Work pattern is not well defined.
Personnel are drawn from many organisations (matrix structure).
Personnel may work on multiple projects simultaneously (matrix structure).
Project organisation changes over different stages.
27
Table 2.1 Characteristics of a project organisation
Goals Clearly defined and short term, in comparison with those of the parent firms.
Stated as cost targets, time deadlines, quantities and standards of performance,
quality and materials. Most project goals are quantifiable and progress towards
them can be measured.
Timescale Relatively short-term. The project lifespan is finite, with specific dates for
commencement, completion and key stages of the project.
Tasks Variable in scope and technical complexity. Less repetitive than most
manufacturing tasks. Assembly of a wide range of raw and partly processed
materials and components. High level of task specialisation, reinforced by trade
practice and custom.
People Wide range of background, knowledge and technical skills. Mixture of
specialities, craft workers, semi-skilled and unskilled. Many involved for only
part of the project duration. Willing to tolerate job mobility, low job security
and poor working conditions.
Environment Comparatively stable for the duration of the project, except for the weather,
which is highly variable, and the labour market, which fluctuates in response to
local competition and changes in workload.
Source: (Fryer, 2004)
Review questions
Compare a project based organisation and a functional based
organisation. Discuss their commonality and differences.
28
3. INDIVIDUAL DIFFERENCES
Most business organisations consist of many individual workers in different roles. These individuals may differ in a variety of ways, such as physique, gender, ethnic origin, value, culture background, etc. The differences can foster creativity, enjoyment, and satisfaction. They can also be sources of misunderstanding and conflict. In any case, it is important for managers to recognise individual differences and understand the demands of each individual.
3.1 How do Individuals Differ?
No two individuals are the same in the world; even identical twins are different in some ways. Some of the differences are hereditary; others are determined by the environment factors. Some of the differences are more visible, such as physique and gender. Other differences are less visible, such as attitudes, personality traits, intelligence and abilities. Some of the characteristics are shared with other, for example individuals who are from the same culture background or who have the same abilities or who share similar physical attributes.
Read (Mullins and Christy, 2010) section on “How Do Individual Differ?”, pages 129-130
Review question
Why is it important for managers to recognise individual
differences in their workers?
3.2 Personality
In daily life, we often hear people describe somebody using words, such as “easy going”, “open minded”, “nice”, “nasty”, “extravert”, “shy”, etc. These are all descriptions of a person’s personality. Personality is a combination of stable characteristics which explain why a person behaves in a particular way. These characteristics include emotional, attitudinal and behavioural response patterns.
Personality studies try to define ways to measure personality. There are two broad approaches: nomothetic approach and idiographic approach.
3.2.1 Nomothetic approach This is a natural science approach, which defines personality as a collection of measurable traits and characteristics. It tends to view environmental and social influences as minimal, and views personality as consistent. This approach usually claims that personality is largely inherited and resistant to change.
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The big five These refer to five dimensions, which describe clusters of personality traits:
Openness/closed-mindedness
Conscientiousness/heedlessness
Extraversion/introversion
Agreeableness/hostility
Neuroticism/stability
Eysenck Hans Eysenck believes in the hereditary nature of personality and suggests the use of only two dimensions: Extraversion/introversion and Neuroticism/stability. This gives four combinations, each of which defines a distinct type of personality.
Table 3.1 Eysenck’s personality matrix
Extraversion Introversion
Neuroticism touchy, restless, excitable, changeable, impulsive, irresponsible
quiet, reserved, pessimistic, sober, rigid, anxious, moody
Stability outgoing, talkative, responsive, easy going, lively, carefree, leadership
calm, even-tempered, reliable, controlled, peaceful, thoughtful, careful, passive
Eysenck proposed a method to measure an individual’s personality, which is known as the Eysenck Personality Questionnaire. There are several variations of it. They measure personality through a series of questions, as follows:
Does your mood often go up and down?
Do you take much notice of what people think?
Are you a talkative person?
If you say you will do something, do you always keep your promise no matter how inconvenient it might be?
Do you ever feel ‘just miserable’ for no reason?
Would being in debt worry you?
Etc. Based people’s answers, their personality can be described in traits along four dimensions. Extraversion (E) and Neuroticism (N) are the two original dimensions; Psychoticism (P) and Lie (L) are later additions.
Review question
Try the Eysenck Personality Questionnaire test yourself and see
how accurate it is to assess your personality. Google the
questionnaire, which is available in various web sites.
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3.2.2 Idiographic approach
This approach stresses the uniqueness of every individual and views personality as a result of development process based on life experience. It particularly highlights the impact of relationships with others, family life and social conditions.
Erikson Erik Erikson’s theory is a representative example of idiographic approach. He views personality development as a continuing process through life and identifies eight distinct stages. Each of these stages develops a particular personality trait.
Figure 3.1 Erikson’s eight stages of personality development
Source: (Mullins and Christy, 2010)
3.2.3 Type A and Type B Personalities These are two polar types of personalities. Type A is usually associated with being ambitious, organised, highly status conscious, sensitive, impatient, aggressive, etc. Type B is the opposite of Type A. They may be as equally ambitious as Type A; but they are more relaxed with the pursuit of their ambition. They are likely to work at a steady pace and remain calm under pressure.
Read (Mullins and Christy, 2010) section on “Type A and Type B Personalities?”, pages
140-141
Review question
What is your view on the potential impact of personality on a
person’s aptitude for a job?
3.3 Perception and Communication
Despite there may be only one reality, different people can have different views and perception of that reality. In a complex world, people often choose to see what they want to see. Perception involves several stages of information gathering and processing (Figure below).
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Figure 3.2 Perceptions as information processing
Source: (Mullins and Christy, 2010)
During the perception, people also consciously or unconsciously adopt several techniques, including:
Figure and ground
Grouping
Closure
Read (Mullins and Christy, 2010) pages 218-220 about description of these techniques,
and pages 226-227 about their implications of perceiving other people.
Review question
Can you think of any examples of using these perception
techniques from your own experience?
3.4 Cultural Differences
Read (Mullins and Christy, 2010) section on “Cultural differences”, pages 214-217
Review question
What are the important things to remember when communicating
with people from a different culture background?
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3.5 Equality and Diversity Legislations
To prevent discrimination against individuals on the grounds of race, gender, disability, sexual orientation, religion/belief and age, a range of legislations has been adopted in the UK. The following are some examples of these equality and diversity legislations.
3.5.1 Race
Race Relations Act (1976) & Race Relations (Amendment) Act (2000)
This Act and its Amendment makes discrimination on the grounds of race, colour, nationality (including citizenship), ethnic or national origin unlawful.
Racial and Religious Hatred Bill (2005)
This Bill made it illegal to threaten people because of their religion, or to stir up hatred against a person because of their faith. It is designed to fill gaps in the current laws, which already protect people from threats based on their race or ethnic background.
3.5.2 Gender
Sex Discrimination Act (1975)
The Sex Discrimination Act (1975) (Amendment) Regulations (2003)
These two Acts apply to women and men of any age, including children, and makes discrimination on the grounds of sex or marriage unlawful.
The Equal Pay Act (1970)
The Equal Pay Act (1970) (Amendment) Regulations (2003)
These Acts give an individual a right to the same contractual pay and benefits as a person of the opposite sex in the same employment, where the man and the woman are doing like work, work rated as equivalent under an analytical job evaluation study or, work that is proved to be of equal value.
3.5.3 Disability
The Disability Discrimination Act (1995)
The Disability Discrimination Act (2005)
The Act (1995) deals with discrimination against disabled people and applies to all those who provide goods, facilities and services to the public.
The 2000 Act amends/extends the provisions of the 1995 Act, including:
making it unlawful for operators of transport vehicles to discriminate against disabled people;
ensuring that discrimination law covers all the activities of the public sector; and
a duty for public bodies to promote equality of opportunity for disabled people.
3.5.4 Sexual Orientation
Employment Equality (Sexual Orientation) Regulations (2003)
These regulations outlaw discrimination (direct or indirect discrimination, harassment and victimisation) in employment, and vocational training, on the grounds of sexual orientation.
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3.5.5 Religion or Belief
Employment Equality (Religion or Belief) Regulations (2003)
These Regulations outlaw discrimination (direct or indirect discrimination, harassment and victimisation) in employment and vocational training on the grounds of religious belief or similar philosophical belief. Non-belief is also covered by the regulations.
3.5.6 Age
Age Discrimination Act
The Age Discrimination Act covers all forms of age discrimination including discrimination of both younger and older individuals. The law ensures that people are no longer denied jobs or harassed because of their age and in most cases will have an equal chance of training and promotion.
34
4. LEADERSHIP
4.1 Leadership Defined
Leadership means getting things done through people. A leader’s aim is to get people to do what he wants by obtaining willing co-operation, not grudging submission. Leadership is a dynamic process in which one individual influences others to contribute to the achievement of the group task. Those people who are responding to the leadership process will perceive this influence as fully legitimate. The character of the leadership process will in some way be related to, or determined by the situation in which the leader and the group find themselves.
4.2 Leadership vs Management
These are two related concepts; sometimes used interchangeably. However, there are some subtle differences between them. The table below summarises these differences.
Table 4.1 Leadership and management compared
Managers
Administer
Maintain
Focus on systems & structure
Rely on control
Keep an eye on the bottom line
Do things right
Leaders
Innovate
Develop
Focus on people
Inspire trust
Have an eye on the horizon
Do the right thing
Read (Mullins and Christy, 2010) section on “Leadership or Management”, pages 373-
375
Review question
Think of an example for a manager, then another one for a leader.
Discuss the differences between the two.
4.3 Framework for the Study of LEADERSHIP
Figure 4.1 shows a framework of different approaches to study leadership.
35
Figure 4.1 A framework for the study of leadership
Source: (Mullins and Christy, 2010)
4.4 The Qualities or Traits Approach
Historically, leadership has been associated with tradition, office and charisma. Traditional leaders derived authority from their inheritance by birth or kinship. Official leaders derived their authority from the offices they held. Charismatic leaders exercise influence over others by force of personality or charm.
36
4.4.1 Determinant variables
The determinant variables of leadership are listed below:
The leaders position authority, skills and personality
The subordinates’ attitude towards, and expectation of, the leadership process
The tasks or objectives to be achieved
The situation or environment in which leadership is being exercised
The prevailing national culture
The prevailing organisation culture
4.4.2 Key leadership qualities
Bennis and Nanus identified the following as key leadership qualities:
The capacity to encourage and motivate others
The capacity to accept challenges and take risks
Self-awareness and self-knowledge
Personal persistence and commitment
A willingness and a motivation to go on learning
An ability to learn and profit from failure and mistakes
Peters and Waterman suggest some additional leadership attributes:
Leadership by example. The ability to perform the detailed tasks that they require their subordinates to carry out. Or at least their understanding of these tasks.
The identification and empathy with, and respect for the routines of their subordinates
Read (Mullins and Christy, 2010) section on “The Qualities and Traits Approach”, pages
375-377
Review question
What are the limitations of the traits approach?
4.5 The Functional Approach
This approach focuses on the functions instead of the individual personality of the leadership. This approach believes that skills of leadership can be learned, developed and perfected. One example of this approach is Action-centred leadership.
4.5.1 Action-centred leadership Professor John Adair identifies three inter-related components of the leadership situation within a training and developmental model he terms action centred.
These components are:
Task needs
Group maintenance needs
Individual needs
37
If you draw these three things as circles, teams that function well have circles with a large degree of overlap and individuals are generally better motivated. It is important to keep these three things in careful balance, paying attention to all three. Problems can occur when any one of the circles is over-dominant. For example, if the task becomes too important, the people side gets squeezed out; if the individual becomes too important, this can impinge on both the task at hand and the functioning of the group; if the group becomes too important, this can also impede the task.
Adair stresses the need for the leader to learn to be aware of the tension between the three components of the leadership situation. The leader has to actively develop his or her capacity to manage this tension by using such functional processes as:
Planning-organising-communicating/briefing
Setting an example-motivating
Setting standards-evaluating-controlling
Adair defines the leader’s action responsibilities within action centred leadership to include:
Task achievement
Group maintenance
Coaching individuals
Task achievement:
Tasks must be specified and planned
Individual task responsibilities need to be allocated
Methods of performance measurement must be established
Group maintenance:
The group must be established and teamwork built up
The leader will be responsible for developing discipline and coherent activity on the part of the group in seeking to achieve task objectives
Coaching individuals
Individuals need to be coached and motivated
Fitted into their place in the team
Individuals are developed within the wider context of task, group needs and as circumstances permit
Review question
Is leadership a necessary feature of a good manager?
4.5.2 Accessory functions
The leader’s role is further complicated by the need to fulfil accessory functions. These are:
Acting as a role model and exemplar
38
Acting as ambassador, figurehead and representative
Acting as a tension release mechanism
Scapegoat
Acting as a role model and exemplar The leader serves as a role model for the group members.
Subordinates will view the leader’s behaviour as an example from which they may wish to learn, which they may wish to emulate, or which instead they may wish to avoid. The leader’s behaviour provides a standard or yardstick against which subordinates measure his or her perceptions of what it is desirable to emulate.
Acting as ambassador, figurehead and representative. The leader acts as a symbol for the group, thereby providing a focus for group unity. The leader as ambassador will attempt to filter out negative influences external to the group, thereby facilitating its task performance.
Effective championing of the group and the task, and attaining favourable decisions will be a source of motivation for the group. Group effectiveness may depend on the actual effectiveness of the leader in representing the group to peers and superordinates.
Acting as a tension release mechanism. Group members, peers and superiors may focus tension and friction on the leader role. This is obviously a very stressful role as it may be the leader’s role to absorb organisational tension or friction, and to attempt to dissipate it harmlessly.
The role of scapegoat. The leader becomes the focus for the negative or aggressive sentiments of frustrated or disappointed group members, or disillusioned peers and superiors.
4.6 Leadership as a Behaviour Category
Read (Mullins and Christy, 2010) section on “Leadership as a behaviour category”, pages
379-380
Blake and McCanse proposed a Managerial/Leadership grid, as shown in Figure 4.2. Details of the grid can be found in (Mullins and Christy, 2010), pages 461-463.
39
Figure 4.2 Managerial/Leadership grid
4.7 Styles of Leadership
Leadership style describes the way in which leaders behaviour toward the people under their leadership. There are many possible ways of describing leadership styles, such as dictatorial, unitary, bureaucratic, benevolent, charismatic, consultative, etc. These can be broadly divided into three categories:
The authoritarian (autocratic) style: The focus of power is with the manager (leader). All interactions within the group move towards the manager. The manager alone exercises decision-making and authority for determining policy, procedures for achieving goals, work tasks and relationships, control of rewards or punishments.
The democratic style: The focus of power is more with the group as a whole there is greater interaction within the group. The leadership functions are shared with members of the group and the manager is more part of a team. The group members have a greater say in decision-making, determination of policy, implementation of systems and procedures.
A laissez-faire (genuine) style: The manager observes that members of the group are working well on their own. The manager consciously makes a decision to pass the focus of power to members, to allow them freedom of action ‘to do as they think best’, and not to interfere; but is readily available if help is needed. This is different from the manager who could not care, who deliberately keeps away from the trouble spots and does not want to get involved
40
Review question
Use the questionnaire in Appendix 1 and find out your own
leadership style.
4.7.1 Continuum of leadership behaviour
Tannenbaum and Schmidt propose a continuum along which leadership behaviour may vary. At one extreme there will be “boss-centred leadership” characterised by high levels of control and prescription. At the other extreme there will be “subordinate-centred leadership” characterised by consultative and facilitatory behaviour.
Tannenbaum and Schmidt identify four leadership behaviour styles or archetypes along this continuum.
These are:
the leader tells
the leader sells
the leader consults
the leader joins
The leader tells. The manager makes decisions on a unilateral basis and expects his or her subordinates to implement these decisions without question. Subordinates are merely perceived as “tools of implementation”. Style one corresponds to theory X.
The leader sells. The manager makes the decisions but tries to persuade subordinates that these decisions are the right ones, and that it is in their best interest to accept them and implement them.
The leader consults. The manager makes the decision after consultation and discussion with the group.
The leader joins. The manager defines the problem and specifies the parameters within which the decision should be made. The group then makes the decision. Style four corresponds to theories Y and Z.
Review question
Consider the ways in which the following might influence leadership style:
a) Subordinates
b) Tasks to be performed
c) The situation
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4.8 Leadership Contingency Model
There are two contingency approaches to leadership:
Fiedler's Leadership Contingency Model
The Best-Fit Approach
4.8.1 Fiedler's leadership contingency model
Fiedler suggests that group performance is contingent on the leader adopting a leadership style that is appropriate to the “relative favourableness of the situation”.
The variables that determine the relative favourableness of the situation are defined as:
Leader-member relations
The degree of task structure or ambiguity
The relative power and authority of the leader's position
The most favourable leadership situation occurs where:
There are good leader-member relations
The task to be performed is highly structured and unambiguous
The leader has a powerful position
The least favourable leadership conditions are characterised by:
Dislike of the leader by the group
A relatively unstructured or ambiguous task
Relatively weak leader position and power
Fiedler identifies two leadership styles:
Task motivated
Relationship motivated
Task motivated leaders tend to perform most effectively in situations which are either very favourable or very unfavourable. They would take a highly structured and prescriptive approach to the situation.
Such leaders can be categorised as psychologically distant from the group. Relationship motivated leaders tend to perform most effectively in intermediately favourable situations. They would take a supportive, facilitatory or consultative approach to the situation. Such leaders can be categorised as psychologically close to the group.
Fiedler’s approach acknowledges the fact that situations will arise when, in order to be effective, the leader will have to adopt a position of psychological distance and task centredness.
Some situations will not be favourable to a democratic or consultative approach, such as in a crisis situation where the leader is expected by the group to lead and to be decisive.
Fiedler’s general conclusion is that the leadership role may be assisted by:
Better definition and structuring of tasks
Improving formal role authority in relation to the group
42
Improving the composition of groups in order to give the leader a more favourable climate in which to work
4.8.2 Best fit approach to leadership This contingency or situational approach is based on four inter-related variables. These are:
The leader
The subordinates
The task
The context or environment
The leader Leadership competence
Values
Personal characteristics
Preferred management style
The leader’s expectation of subordinate behaviour and response towards the leadership situation
The subordinates Characteristics
Attitudes towards the leader
Expectations of the leader and the leadership situation
The task Degree of structure and ambiguity
Objective and priority
Technology
The context or environment Organisational
Cultural
External
Charles Handy suggests that the best-fit approach is based upon the assumption that there is no such thing as “the right style” of leadership.
Leadership will only be effective when the requirements of the leader, the task, and the subordinates fit together appropriately within the context of the task environment.
A mismatch between these four variables may result in ineffective and counterproductive leadership. Given the difficulty of re-specifying the character of the environment, the best-fit approach suggests that improved leadership performance may be achieved by:
Re-specifying the task, for instance by simplifying it or re-defining it
Developing the capacity of the subordinate to deal with certain types of situation
Developing the managers understanding of leadership dynamics through training and development processes
43
4.9 Transformational Leadership
Read (Mullins and Christy, 2010) section on “Transformational leadership”, pages 391-
392
Review question
What are the differences between a transactional leader and a
transformational one?
4.10 Inspirational or Visionary Leadership
Read (Mullins and Christy, 2010) section on “Inspirational or visionary leadership”, pages
392-395
Review question
Is personal charisma enough for an inspirational leader?
4.11 Leadership in the Construction Industry
Read Appendix 2: Leadership in the construction industry
44
5. MOTIVATION
5.1 The Meaning of Motivation
The Oxford Dictionary defines Motivation as “a reason or reasons for acting or behaving in a particular way”. The study of motivation is to find out why people behave in certain way. The underlying belief is that people are rational; their behaviours are always aimed at meeting some needs or realising certain expectations. The figure below shows a basic motivation model.
Figure 5.1 A simplified illustration of the basic motivation model
Source: (Mullins and Christy, 2010)
Review question
Explain the meaning of motivation, using the information in
Figure 5.1
From a review of motivation theory, Mitchell identifies four common characteristics which underlie the definition of motivation:
Motivation is typified as an individual phenomenon.
Motivation is described, usually, as intentional.
Motivation is multifaceted.
The purpose of motivational theories is to predict behaviour.
Read (Mullins and Christy, 2010) section on “The meaning of motivation”, pages 253-254
45
Figure 5.2 Maslow’s hierarchy of needs
Review question
What is the relationship between motivation and performance?
In the context of employment, motivation can be classified as:
Extrinsic motivation: This refers to behaviour that is driven by external and tangible rewards such as money, fame, grades, and praise. This type of motivation arises from outside the individual.
Intrinsic motivation: This refers to behaviour that is driven by internal or psychological rewards. In other words, the motivation to engage in a behaviour arises from within the individual because it is intrinsically rewarding.
Motivation can also be classified as three types:
Economic rewards – such as pay, benefits, pension rights, etc.
Intrinsic satisfaction – interest in the job, personal growth and development.
Social relationships – such as friendship, group working and desire for affiliation, status and dependency.
5.2 MOTIVATION THEORIES
There are many motivation theories and different ways of grouping these theories. A simple classification is to divide them into two groups: content theories and process theories.
5.2.1 Content Theories of Motivation
Content theories are also called needs theories, because they are generally associated with a view that concentrates on the importance of determining 'what' motivates people. They try to identify what people’s 'needs' are and relate motivation to the fulfilling of these needs. Main representatives of these theories include:
Maslow’s hierarchy of needs model
Alderfer’s modified need hierarchy model
Herzberg’s two-factor theory
McClelland’s achievement motivation theory
Maslow’s hierarchy of needs model In a 1943 paper called A Theory of Human Motivation, Abraham Maslow presented the idea that human actions are motivated by achieving certain needs. Maslow further proposed a hierarchy of needs (see figure).
Physiological – includes air, food, water, sex, sleep, other factors towards homeostasis, etc.
Safety – includes security of environment, employment, resources, health, property, etc.
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Love or Belongingness – includes love, friendship, intimacy, family, etc.
Esteem – includes confidence, self-esteem, achievement, respect, etc.
Self-actualization – morality, creativity, problem solving, etc.
The bottom four levels (lower-order needs) are considered physiological needs, while the top level is considered growth needs. The lower level needs need to be satisfied before higher-order needs can influence behaviour.
Read (Mullins and Christy, 2010) section on “Maslow’s hierarchy of need theory”, pages
260-264
Review question
What do the various levels of needs mean in a work situation?
Alderfer’s modified need hierarchy model Clayton Alderfer presented an alternative need hierarchy model, which consists of three levels instead of five. They are needs of Existence, Relatedness and Growth. Therefore, it is also known as the ERG model.
Existence needs include a person’s physiological and physically related safety needs, such as the need for food, shelter, and safe working conditions.
Relatedness needs include a person’s need to interact with other people, receive public recognition, and feel secure around people (i.e., interpersonal safety).
Growth needs consist of a person’s self-esteem through personal achievement as well as the concept of self-actualization presented in Maslow’s model.
Read (Mullins and Christy, 2010) section on “Alderfer’s modified need hierarchy model”,
pages 264-265
Review question
What are the main commonality and differences between
Maslow’s and Alderfer’s models?
Herzberg’s two-factor theory
McClelland’s achievement motivation theory
Read (Mullins and Christy, 2010) sections on the above two theories of motivation,
pages 265-268
47
Figure 5.3 Expectancy model
5.2.2 Process Theories of Motivation
Process theories focus on “how” instead of “what” people give meaning to rewards and make decisions on various work-related behaviours. There are several different approaches in this category, including:
Expectancy-based models
Equity theory
Goal theory
Attribution theory
Expectancy-based models Victor Vroom is credited as the first one for proposing an expectancy motivation theory. The underlying basis for this theory is behaviour results from conscious choices among alternatives in order to maximise pleasure and minimise pain. Other writers of expectancy theory include Lyman Porter and Edward Lawler.
This theory is based on a set of assumptions:
Better effort will result in better performance.
Good performance will lead to rewards.
The reward will satisfy an important need.
The desire to satisfy the need is a strong driver for action.
Vroom defined three variables for his model:
1. Valence: This refers to the emotional orientations people hold with respect to outcomes [rewards]. The depth of the want of an employee for extrinsic [money, promotion, time-off, benefits] or intrinsic [satisfaction] rewards.
2. Expectancy: People have different expectations and levels of confidence about what they are capable of doing.
3. Instrumentality: The perception of people whether they will actually get what they desire even if it has been promised.
A formula is proposed to calculate the motivational force:
Motivation = Valance x Expectancy(Instrumentality)
Equity theory
Goal theory
Attribution theory
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Read (Mullins and Christy, 2010) sections on the above three theories of motivation,
pages 275-278
5.3 Motivation and Performance at Work
Employees’ motivation and performance are increasingly viewed as key resources in helping organizations improve the productivity, quality, customer relations, etc. Few subjects receive more ongoing attention in organizations. Regardless of the organizational setting, managers face a common challenge of fostering a motivating work environment.
The following outlines a process for creating a motivating work environment. Materials in this Section draw heavily from Whetten and Cameron (2004).
5.3.1 Diagnosing work performance problems
Generally, supervisors attribute the cause of poor performance to low motivation or lack of effort. This attribution bias of making assumptions about why things happen without the benefit of scrutiny lends to simplistic, ill-informed diagnoses of work performance problems by supervisors.
Performance is a product of ability multiplied by motivation. Ability is the product of aptitude multiplied by training and resources. Motivation is the product of desire (effort) and commitment. The multiplication sign in these models signifies that all components are essential.
Aptitude refers to the native skills and abilities including personality characteristics a person brings to a job.
Most inherent abilities can be enhanced by education and training.
Resources in the ability equation above focuses on providing adequate resources (technical, personnel, political) to perform the job.
Desire and commitment is manifested in job-related effort.
Effective managers can tell whether poor performance stems from low motivation or a lack of ability by considering four factors.
1. How difficult are the tasks being assigned to the individual? 2. How capable is the individual? 3. How hard is the individual trying to succeed at the job? 4. How much improvement is the individual making?
Answering these questions determines whether the poor performance is due to the lack of ability or motivation. Managers must be aware that different strategies exist to improve performance based upon the cause for poor performance; ability or motivation. Choosing the wrong strategy creates more problems for the supervisor-subordinate relationship.
5.3.2 Enhancing individuals’ abilities Ability problems result from poor employment screening, changes in responsibilities, advances in technology or the Peter Principle, where people are promoted to one level above their level of competence. Managers should be alert for individuals that show signs of ability deterioration. The following are three danger signs for management positions:
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1. Taking refuge in a specialty. Managers retreat to their technical specialty as opposed to managing.
2. Focusing on past performance. Managers dwell on previous “days of glory,” instead of confronting current challenges.
3. Exaggerating certain aspects of the leadership role. Managers feel insecure about their command of job responsibilities and avoid certain aspects of their role or use their office to intimidate others.
The five remedies for overcoming poor performance due to a lack of ability should be implemented in this order.
1. Resupply—focuses on the support needs of the job, including personnel, budget, and political clout. This is the least threatening action and signals to the employee a willingness by the manager to help.
2. Retrain—providing additional education or job-related training. Training can take a variety of forms:
Interactive
Simulation
Subsidized university courses
In-house seminars
Distance learning, material offered over the Internet 3. Refit--the subordinate remains on the job but the components of the job are
changed to better fit the individual. The result usually is a changed job description.
4. Reassign-is more drastic because it involves a transfer, but it indicates to the employee that the company is committed to helping him or her succeed in that organization.
5. The final option, Release, or termination, should be considered only after all other options have been explored.
5.3.3 Fostering a motivating work environment
The second component of employee performance is motivation. Related to motivation are the assumptions tied to Theory X and Theory Y. Theory X is a management style characterized by coercion, intimidation, and close supervision where the basic assumption is that employees really do not want to work hard or assume responsibility. Theory Y is a management style characterized by assisting workers to reach their potential where workers want to do a good job and assume more responsibility.
Managers should use motivation techniques that “integrate” concerns for both employee satisfaction and performance. There are four ways to address satisfaction and performance.
Indulging-a high emphasis on satisfaction and a low emphasis on performance. The culture is one of entitlement over accountability.
Imposing-a strong emphasis on performance to the exclusion of satisfaction. Employees feel exploited. Very little trust between management and employees.
Ignoring-neither satisfaction nor performance is emphasized. No real leadership, no direction and ultimately failure.
Integrating-emphasizes both satisfaction and performance. In the long run both satisfaction and performance are given equal consideration. Employees are still held accountable.
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5.3.4 Elements of an Effective Motivation Program
Scholars’ understanding of the relationship between satisfaction, motivation and performance has changed a great deal during the past two decades. The current “four-factor” model is: MotivationPerformance Outcomes (Rewards) Satisfaction. Within the “four-factor” model are the six elements (Table 5.1).
Table 5.1 Six Elements of an Integrative Motivation Program
MOTIVATION → PERFORMANCE 1. Establish moderately difficult goals that are understood and accepted.
Ask: “Do subordinates understand and accept my performance expectations?” 2. Remove personal and organizational obstacles to performance.
Ask: “Do subordinates feel it is possible to achieve this goal or expectation?”
PERFORMANCE → OUTCOMES 3. Use rewards and discipline appropriately to extinguish unacceptable behaviour and
encourage exceptional performance. Ask: “Do subordinates feel that being a high performer is more rewarding than being a low or average performer?”
OUTCOMES → SATISFACTION 4. Provide salient internal and external incentives.
Ask: “Do subordinates feel the rewards used to encourage high performance are worth the effort?”
5. Distribute rewards equitably. Ask: “Do subordinates feel that work-related benefits are being distributed fairly?”
6. Provide timely rewards and specific, accurate, and honest feedback on performance. Ask: “Are we getting the most out of our rewards by administering them on a timely basis as part of the feedback process?” Ask: “Do subordinates know where they stand in terms of current performance and long-term opportunities?”
Source: Whetten and Cameron (2004).
(1) Establishing clear performance expectations
Establish moderately difficult goals that are understood and accepted. The foundation of an effective motivation program is goal setting. Effective goal setting has three critical components:
1. Goal-setting process that encourages subordinates to “buy into” the goals. 2. Goal characteristics are specific, consistent, and appropriately challenging.
Goals should be specific meaning they are measurable, unambiguous, and behavioural.
Goals should be consistent meaning goals should be compatible where all goals can be accomplished simultaneously.
Goals should be appropriately challenging where high expectations generally foster high performance.
3. Feedback on goal accomplishment. Feedback provides opportunities for clarifying expectations, adjusting goal difficulty, and gaining recognition. Benchmarking plays a critical role in feedback.
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(2) Removing obstacles to performance
Facilitate employee performance by removing obstacles to goal accomplishment to ensure a supportive work environment. This section is heavily influenced by the path-goal model. Effective managers adjust their involvement in subordinate task performance based on three factors.
1. How much help is needed to complete the task?
Key task characteristics are structure and difficulty. Task that is highly structured and easy to perform does not require directive leadership. Unstructured and difficult task requires direction.
2. How much direction the subordinates expect?
Three distinct characteristics that influence expectations are (1) desire for autonomy, (2) experience, and (3) ability. Individuals who desire autonomy desire participative leadership style and capable and experienced subordinates need less assistance from the manager.
3. How much support is available from other organizational sources? Management involvement should complement not duplicate organizational sources of support.
(3) Reinforcing performance-enhancing behaviour
Once clear goals have been established and the paths to goal completion have been cleared, the next step is to encourage goal accomplishment by contingently linking performance to extrinsic outcomes (rewards and discipline) and fostering intrinsic outcomes (Performance outcomes). Rewards and discipline should be used appropriately to extinguish unacceptable behaviour and encourage exceptional performance. There are two related principles: (1) managers should link rewards to performance not seniority and membership and (2) managers should use discipline to extinguish counterproductive behaviours and use rewards to reinforce productive behaviours. Specific advices include:
Use rewards as reinforcers: When rewards are linked to desired behaviours, they reinforce that behaviour. High performers expect a strong link between performance and rewards. Since high performers are the key to organizational success, it is important to keep this group satisfied.
Use rewards and discipline appropriately: There are three types of management responses to employee behaviour: no response (ignoring); negative response (disciplining); and positive response (rewarding). From a management point of view, no response is bad. Instead, managers should always use positive responses to encourage certain behaviour and negative responses to stop other behaviour. They also need to be aware that discipline is appropriate for extinguishing unacceptable behaviours but ineffective in improving acceptable performance. Similarly, rewards are effective for improving acceptable behaviours but inappropriate for correcting poor performance.
Strategies for shaping behaviours: The process is organized into three broad initiatives: reprimand, redirect, and reward. When issuing a reprimand the discipline should immediately follow the offensive behaviour and focus exclusively on the specific problems (don’t bring up old concerns). Focus should be on eliminating behaviour not making the person feel bad. After reprimand, it is important to redirect inappropriate behaviours into appropriate channels. It is
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important that those being reprimanded understand how they can receive rewards in the future. Once the manager has redirected the focus to the acceptable behaviour, the manager must begin to use rewards in connection with the new behaviour to reinforce the desirable behaviour.
Foster intrinsic outcomes: Pay, promotion and praise are extrinsic outcomes. Intrinsic outcomes are experienced directly by the individual as a result of successful task performance. These experiences include feelings of accomplishment, self-esteem, and the development of new skills. How the work is designed could enhance the potential intrinsic outcomes.
(4) Provide salient rewards Having established a link between performance and outcomes (rewards and discipline) as part of an integrative motivational program, the final link in the four-factor model (Outcomes Satisfaction) is discussed as well as the final three remaining elements of the six element motivational program. The fourth element of the integrative motivation program is to provide salient internal and external incentives. In other words, is the reward offered worth the effort? Managers should seek information about subordinates’ needs and values and not assume they know what employees want.
Different people may have different needs. Section 5.2 explained various motivation theories. The table below shows the results of a study by George Mason University, which surveyed 1,000 employees about the priorities of needs. It clearly shows that different groups have different priorities.
Table 5.2 What Workers Want, Ranked by Subgroups
Source: Whetten and Cameron (2004)
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(5) Be fair and equitable Once appropriate rewards have been determined, managers must consider how to distribute those rewards. The issue the manager faces here is equity. Any positive benefits of the reward will be negated if the individual feel they are not receiving their fair share. Equity is the fifth element of the integrative motivation program.
Equity refers to the worker’s perception of fairness of the rewards. Equity is based on the perceived balance between what individuals feel they are putting into a job and what they believe they are getting in return. Inequities are based on a person’s perceived input/output ratio compared with what s/he believes about the ratios of similar others. The outcome of this comparison with others is the basis of the individual’s belief about fairness. Feelings of inequity will cause the individual to alter either his/her inputs or outputs until the individual’s perceives equity has been restored. The key for the manager is to ensure that differences in ratios are based upon job-related items (performance, skills, and experience, for example).
(6) Provide timely rewards and accurate feedback Once the appropriate awards have been determined to be fair and equitable; then when the reward will be given plays an important role. Therefore, the sixth element is related to how the reward is administrated. Two aspects should be considered: (1) the length of time between the occurrence of the desirable behaviour and receipt of the reward and (2) the specificity of the explanation for the reward. The longer the delay in the administration of rewards, the less reinforcement value the rewards have. The implication for effective management is clear: effective rewards are immediate and spontaneous rewards. Reward programs that are highly routinized (formal performance appraisal systems) lose their immediacy.
Besides timing, how often the reward is administrated is very critical. Administrating a reward every time a behaviour occurs is called continuous reinforcement. Administrating rewards every once in a way is called intermittent reinforcement. Neither approach is superior. Effectively use of both continuous and intermittent reinforcement is required by the effective manager.
In addition to the timing of feedback, the content of feedback significantly affects its reinforcement potential. To increase the motivational potential of performance feedback, be very specific—including examples whenever possible. The main purpose for feedback is to reinforce productive behaviours and extinguish counterproductive behaviours. It is especially important to provide accurate and honest feedback when the individual’s performance is marginal or substandard. Using one’s supportive communication skills in this situation can be beneficial to both the supervisor and subordinate.
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6. MANAGING CONFLICTS
6.1 Interpersonal conflict management
This Unit begins with the observation that too much agreement – or a lack of conflict – among managers in organizations is a leading cause for business failure. Managing disagreements and conflicts are needed to break the cycles of dysfunction in organizations that can result from groupthink, narrow-mindedness, overconfidence, or complacency. The increasing globalization of business and greater diversity in organizations are trends that also fuel the need to be able to manage disagreements in organizations. Conflict can spark creativity, energy, and personal improvement, when it is managed in constructive ways. As most are aware, mismanaged conflict can result in destructive effects – sapping energy, destroying creativity, and weakening interpersonal relationships.
Figure 6.1 Relationship between level of conflict and organisation performance
6.2 Mixed feelings about conflict
Many people intellectually accept the value of conflict but in practice, feel uncomfortable when they themselves get involved in conflict situations. The example of Ross Perot on GM’s board and the experiment involving a Devil’s advocate in groups illustrate this tendency. These mixed feelings may result from a lack of understanding of the causes and forms of interpersonal conflict or a lack of confidence in one’s ability to manage it effectively.
Four key points should be emphasized about conflict
1. Interpersonal conflict in organizations is inevitable. 2. Conflicts over issues or facts enhance the practice of management. 3. Despite the intellectual acceptance of the value of conflict, there is a widespread
tendency to avoid it.
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4. The key to increasing one’s comfort level with conflict is to become proficient in managing all forms of interpersonal disputes (both productive and unproductive conflicts).
6.3 Diagnosing the type of interpersonal conflict
The first step to managing conflict is developing the ability to diagnose types, or focus of conflict, and the sources of conflict. Figure 6.2 provides a helpful framework for diagnosing conflict.
Figure 6.2 A model of conflict management
The comprehensive model of conflict management in highlights the four elements of managing conflict; (1) diagnosing the sources of conflict and the associated situational considerations, (2) selecting an appropriate conflict management strategy, based on the results of the diagnosis combined with personal preferences, (3) effectively implementing the strategy, in particular the collaborative problem-solving process, which leads to (4) a successful resolution of the dispute.
Analytic skills are needed to diagnose the type (source) of conflict and match conflict management strategies with personal preferences and situational considerations. Behavioural skills are needed to implement the conflict management strategy, especially in situations where the collaborative (problem-solving) approach is selected. Note that in general, managing conflict may involve resolving the conflict. In other cases, however, managing conflict may mean just that -managing -but not altogether eliminating the conflict.
6.3.1 Conflict focus
Conflicts can be categorized as being focused on people or issues. People-focused conflicts refer to negative conflicts -the kinds of confrontations where there is intense emotional heat. These may involve accusations of harm, injustice, or feelings of resentment between conflicting parties. Over time, these thoughts and feelings can grow stronger and become harmful or even devastating. In these situations, relationships can also grow farther apart.
In organizations, a considerable amount of time and energy can be consumed in dealing with people-focused conflicts. Evidence suggests that this happens in both small businesses as well as large corporations.
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Issue-focused conflicts are more like rational negotiations and problem-solving activities among decision-makers about allocating scarce resources. They often involve different parties representing the interests of their own groups, functions, or organizations. These types of conflicts may or may not become negative, depending on people’s skills in negotiating through their respective differences. The “focus” of conflict is the same as the “content” of conflict and it answers the question, What is this conflict about?
6.3.2 Conflict source The source of conflict answers the question, How did the conflict get started? While managers often attribute most sources of conflict to a bad person or behaviour, research suggests otherwise. As summarized in Table, there are at least four categories of sources of conflict; personal differences, informational differences, role incompatibilities, and environmental stress.
Table 6.1 Sources and focuses of conflict
Conflict Source Conflict Focus
Personal differences Perceptions and expectations
Informational deficiency Misinformation and misrepresentation
Role incompatibility Goals and responsibilities
Environmental stress Resource scarcity and uncertainty
Personal differences may include conflicts in values, work experience, cognitive styles, priorities, expectations, etc... These tend to arise from differences in socialization and background and these sources of differences often lead “people-focused” types of conflicts. Herein lies the challenge of managing a diverse workforce and the promise it holds for creativity and innovation in the workplace.
Information deficiencies can occur when individuals receive information from different sources or misinterpret or misunderstand information. They may arise when someone does not receive an important message, from situations where a manager’s instructions may be misunderstood, or when people arrive at different decisions because of differences in their respective access to information. Since these differences tend to be based on some “fact”, information deficiencies are therefore easier to resolve; you simply improve the communication processes.
Role incompatibility stems from conflicting expectations, pressures from job assignments, and incompatible goals and responsibilities. The more interdependent people’s tasks are, the more likely this could be a source of conflict.
Environmentally induced stress stems from budget reductions, other resource scarcities, and forms of environmental uncertainty such as rapid change or a depressed economy. Cross culture research suggests that individuals tend to vary in how they cope with environmental uncertainty.
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Review question
Think of a conflict situation and diagnose the focus and sources of
the conflict.
6.4 Selecting the Appropriate Conflict Management Approach
The next step in the process of dealing with conflict, once it is identified, is to manage it. The five styles identified in the assessment vary on the two dimensions shown in Figure 6.3; cooperativeness, or the degree to which parties tend to satisfy the other’s concerns, and assertiveness, or the degree to which parties tend to satisfy their own concerns. The five specific conflict management approaches are explained in the following.
Figure 6.3 Five conflict management approaches
1. The forcing approach attempts to satisfy one’s needs at the expense of the other person’s. This may involve the use of authority, threats, or manipulation to satisfy one’s self interest. Used repeatedly, this approach can breed hostility, resentment, or a backlash.
2. The accommodating approach attempts to satisfy the other party’s concerns while neglecting one’s own. This may be used to preserve a friendly relationship but when used repeatedly, could result in exploitation or a lower self-esteem.
3. The avoiding approach neglects the interests of both parties by postponing or sidestepping the problem. This may be used in a variety of situations, including newly formed relationship or when one or both parties lack skills in dealing with differences. This too can result in problems over time, since the causes of conflict are not dealt with.
4. The compromising approach, an intermediate strategy between assertiveness and cooperativeness, tries to obtain some satisfaction for both parties. In these situations, both parties “give something up” or split the difference. When used indiscriminately, it can lead to dysfunctional “games” among negotiators.
5. The collaborating approach attempts to fully satisfy the needs of both parties. This is also called the problem-solving or win-win approach to resolving conflicts.
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While this approach is not appropriate in all situations, it can – by design -yield the greatest benefit to all interested parties.
6.4.1 Comparing conflict management and negotiation strategies Negotiation strategies are closely linked to the five conflict management strategies and there are two types of negotiation strategies. Each strategy reflects the values that interested parties bring to resolving differences.
The integrative approach is comparable to the collaborative form of conflict management in that it focuses on trying to find a solution that is best for both parties. Integrative negotiations focus on shared interests instead of positions and seek to create win-win resolutions.
The distributive approach assumes there will be winners and losers and parties may see one another as competitors, or worse, adversaries. Distributive negotiations often focus on positions and see interests as a “fixed pie” to be divided among interested parties. This approach encompasses the accommodating, avoiding, compromising, and forcing conflict management strategies. In these situations, one or both parties must sacrifice some of their concerns to resolve the conflict.
6.4.2 Selection factors When faced with a conflict situation, one must deal with the following questions: Which conflict management strategy is best?, and Which one should I use in this situation? Answers to these questions depend on one’s personal preferences and the nature of the situation at hand.
Personal preferences revolve around three factors, ethnic culture, gender, and personality type. Ethnic cultures can shape people’s preferences. For example, Asians tend to prefer accommodating or avoiding approaches, while Americans tend to prefer a forcing approach. Compromising is an approach that is preferred by many cultures. While some research suggests that preferences vary with gender, the literature generally fails to find significant differences between how men and women prefer to manage conflict.
Personality types include; (a) an altruistic-nurturing personality, which prefers accommodation and (b) an assertive-directing personality, which prefers forcing, and (c) an analytic-autotomizing personality, which may prefer a problem-solving or avoidance approach, depending on the situation.
Ideally, as described in Table 6.2, managers should match the conflict management approach with the situation they face.
Table 6.2 Conflict management approaches and their suitability
Avoiding Small issue, limited time/resources
Accommodating Keeping harmony, using small favour to get large one
Forcing Emergencies, when only one right way exists, prevent others from taking advantage
Compromising Late in conflict, when partial win is better than none for both parties
Collaborating For importance issues when time is not a problem, where organisational support exists, when win-win solution is possible
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Four salient situational variables should be considered; the importance of the issue, the importance of the relationship, the relative power of the parties, and time constraints. When the issue is very important, then forcing or collaboration may be appropriate. When the relationship, especially an ongoing one, is important, the accommodation and collaboration may be useful. When there are significant differences in power, then forcing, accommodation, or collaboration may be appropriate, depending on the relationship.
Otherwise, when power is equal among parties, compromising or avoiding may be useful. Since in practice, compromising and collaboration may require relatively more time, then they should be used in situations when there is plenty of time to resolve the conflict. In general, both parties, regardless of culture tradition, must agree on how to reach a resolution to a conflict.
Review question
Is it possible to use a mixture of different approaches?
6.5 Resolving Interpersonal Confrontations Using the Collaborative Approach
While the collaborative approach generally produces the best results, it requires more skill than the other four approaches. This can be considered the “default approach” to dealing with both people-and issue-focused conflicts.
6.5.1 A general framework for collaborative problem-solving
The following summarizes the six-steps to integrative negotiations (i.e. collaborative problem solving).
1. Establish superordinate goals. This step involves both parties identifying the goals that they share in common, thus establishing a basis for mutual benefits.
2. Separate the people from the problem. This step involves identifying the “real issue” or problem at hand.
3. Focus on interests, not positions. This step involves identifying the interests, or the underlying reasons behind demands or positions. It is often easier to establish mutual agreement on interests than it is positions.
4. Invent options for mutual gain. This step involves developing creative and mutually agreeable solutions.
5. Use objective criteria for evaluating alternatives. This step involves building fairness into the process by developing a set of standards or criteria for judging alternatives.
6. Define success in terms of real gains, not imaginary losses. This step involves using mutually agreed upon standards to judge criteria and seeking mutual gains in a resolution.
6.5.2 Four phases of collaborative problem solving Given the complexity of resolving issue-focused conflicts, the four phases of the problem-solving process is discussed to provide additional guidance on developing the skills needed to resolve different kinds of conflicts. The four phases are (1) problem identification -which along with solution generation -sets the tone for the entire process, (2) solution generation, (3) action plan formulation and agreement, and (4)
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implementation and follow up. The first two of these phases are the most difficult and therefore require especially skilful actions.
The behavioural guidelines for this process are organized under headings relating to the various “roles” that disputants assume when resolving issue-focused conflicts. These roles are the (I) initiator, the (R) responder, and the (M) mediator (if needed).
(I) Initiator – Problem identification
1. Maintain personal ownership of the problem. Make it clear that this is “your” problem and show accountability for your feelings.
2. Succinctly describe your problem in terms of behaviours, consequences, and feelings. Use a process such as “I have a problem. When you do X, Y results, and I feel Z.” X are behaviours, Y are observable consequences, and Z are your feelings. Table provides an example.
3. Avoid drawing evaluative conclusions and attributing motives to the respondent. The key at this phase is to work together to understand the problem. Making accusations hinders this and may increase defensiveness.
4. Persist until understood. Look for an acknowledgement that that your problem is understood. Use variations but don’t change the problem.
5. Encourage two-way discussion. Encourage the other party to express opinions and ask questions. Listen to their view of the problem.
6. Manage the agenda: Approach multiple or complex problems incrementally. Don’t raise a whole series of issues at once, particularly at the beginning. Focus initially on simple problems and build rapport in working through the others.
7. Focus on commonalities as the basis for requesting a change and in generating a solution. When beginning to generate solutions, work from common goals, values, and/or interests.
(R) Responder – Problem identification. The responder is the person who supposedly is the source of the problem.
1. Establish a climate for joint problem solving by showing genuine interest and concern. Do not under-react, over-react, or become defensive. Your reactions will likely set the tone for the resolution. Discuss how and when you want to move forward.
2. Seek additional information about the problem by asking questions. Figure describes a series of helpful ways to approach these questions.
3. Agree with some aspect of the complaint. Look for areas in the initiator’s presentation in which you genuinely agree and express this agreement. You do not need to agree, however, with their conclusions or evaluations of the problem.
4. Ask for suggestions of acceptable alternatives. Once the complaint is understood, then ask for recommended solutions.
(M) Mediator – Problem identification. When a mediator is called in, it often means that disputants were unable to solve the problem on their own.
1. Acknowledge that a conflict exists and propose a problem-solving approach for resolving it. The first step is to establish a framework for problem-solving. Avoid the pitfalls described in Table at the beginning of the process. Instead, adopt a three step format, such as those described in Table, beginning with awareness
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and motivation, then probing into the nature of the relationship and the problem.
2. In seeking out the perspectives of both parties, maintain a neutral posture regarding the disputants -if not the issues. The mediator must maintain impartiality, even in private conversations. Try to keep problems and people separated.
3. Serve as a facilitator, not as a judge. Don’t evaluate solutions and instead help disputants come up with alternatives.
4. Manage the discussion to ensure fairness -Keep the discussion issue oriented, not personality oriented. Keep a collaborative, balanced climate and maintain a focus on issues and the consequences of failing to resolve the conflict. Expressions of emotion may be natural. Set and enforce ground rules about conduct.
(M) Mediator – Solution generation.
1. Explore options by focusing on interests, not positions. Look for where interests meet and where they conflict. Ask probing “why” questions to clarify interests.
2. Make sure all parties fully understand and support the solution agreed upon, and establish a mechanism for follow up. These are the last two phases of the problem solving process, so be sure and don’t terminate the entire process prematurely. Make sure that mutual understandings are achieved, a plan is in place, and follow ups are discussed.
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7. GROUPS AND TEAMWORK
7.1 Definitions
7.1.1 Group
Group is defined as two or more people who interact with each other to accomplish certain goals or meet certain needs. People of the same group often share the following behaviour:
identify with each other, sharing ideas, beliefs and/or experience of common areas.
engage frequently and regularly with each other, agreeing on a purpose and working together on shared tasks.
recognise themselves and are recognised by others as part of a group.
Groups may be formal, brought together for a particular purpose, or they may be informal such as family groups, groups of friends or colleagues. In daily life, you may come across, or be part of, a range of different groups.
Work Groups
Neighbourhood Groups
Special Interest groups
Self-Help Groups
Pressure Groups
7.1.2 Team Team is a group whose members work intensely with each other to achieve a specific, common goal or objective. All teams are groups but not all groups are teams. Teams are often difficult to form. It takes time for members to learn best ways of working together.
7.2 Differences between Group and Team
It is common for the two terms ‘group’ and ‘team’ to be used interchangeably. There are two characteristics that distinguish teams from groups: (1) intensity with which team members work together; (2) presence of a specific, overriding team goal or objective. More potential differences are shown in the following table.
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Table 7.1 Differences between a team and a group, from (Mullins and Christy, 2010)
Review question
Explain the differences between groups and teams, using real examples in your daily life.
7.3 Group Cohesiveness and Performance
Group cohesion refers to the unity of a group in the commitment of all its members to shared goal and objectives. It also refers to harmony between group members and their willingness to offer emotional support to each other. Many studies suggest that strong and cohesive groups tend to perform better in their tasks. This is a two way relationship: better cohesiveness leads to better performance; in turn, better performance can reinforce a group’s cohesiveness.
The factors which influence group cohesiveness and performance can be broadly divided into four categories (Figure 7.1):
Membership
Work environment
Organisational
Group-development and maturity
Read (Mullins and Christy, 2010) sections on these factors, pages 314-319
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Figure 7.1 Factors contributing to group cohesiveness and performance
Source: (Mullins and Christy, 2010)
Review question
A team can … achieve what none of the individuals within it can do alone; with the right dynamic, a collection of ordinary individuals can achieve extraordinary feats. But the converse can also occur: a team can fail to achieve what any of its members could easily accomplish. (Source: Mabey et al., 1998)
What is your view (or understanding) of the above statement?
7.3 Team Development Process
Bruce Tuckman published his group development process model in 1965, which included four stages: Forming, Storming, Norming, Performing. He added a fifth stage, Adjourning, in the 1970s.
The description of these stages is given by Mullins and Christy (2010) on page 318. The following table is another summary.
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Table 7.2 Summary of Tuckman’s group development model
Review question
Can you skip an early step and reach Performing stage more quickly?
7.4 Working in Groups and Teams
In addition to unity and cohesion, successful work groups also need to have a good mix of skills and effective information flow and communication.
7.4.1 Team roles A team role is a pattern of behaviour in which one team member interacts with another. Specific roles may vary depending on the tasks of a group. Meredith Belbin has identified nine generic team roles (Table 7.2), which are required for successful teams.
Read (Mullins and Christy, 2010) the section on “Belbin’s team roles”, pages 342-344
Review question
Can one team member perform more than one role? If yes, which two roles can be best performed by the same individual?
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Table 7.2 Belbin’s evolved nine team roles
Source: (Mullins and Christy, 2010)
7.4.2 Patterns of communication Communication refers to the pattern through which team members interact with each other. It is influenced by the size and structure of the team. Alex Bavelas and Harold Leavitt, through experiments with five people, identified five main types of communication networks: wheel, circle, all-channel, Y and chains (Figure 7.2).
Read (Mullins and Christy, 2010) the section on “Patterns of communication”, pages 344-346
Review question
How effective would each of the communication networks be in dealing with complex tasks, which require extensive communication?
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Figure 7.2 Communication networks
Source: (Mullins and Christy, 2010)
7.5 Effective Teamwork
Read Appendix 3: Effective teamwork - A best practice guide for the construction
industry
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8. CONTROL AND EMPOWERMENT
8.1 Control
Control is one of the essential processes of management. It is an inherent characteristic of the nature of organisation. Its main aim is to monitor performance and ensure planned objectives are achieved. The following are several definitions of control offered by various authors:
Primarily a process for motivating & inspiring people to perform organisational activities that will further the organisational goals. Mullins and Christy
A process for detecting & correcting unintentional performance errors & intentional irregularities, such as theft or misuse of resources. Berry et al.
Monitors the performance of the delegated task so that the expected results are successfully achieved. Payne & Payne
In an organisation, management need to exercise control over the behaviour and actions of staff in order to ensure a satisfactory level of performance. Control can take a number of forms, such as:
Recommended codes of practice
Company policy and procedures
Specification of roles and responsibilities
Measurement of performance
Recruitment and selection of staff
Control can be applied at different levels of an organisation:
Whole company level
Department level
Group and team level
Individual level
Control can also be exercise in different aspects. For example, Child (2005) identified six approaches of control:
1. Personal central control 2. Bureaucratic control 3. Output control 4. Control through electronic surveillance 5. HRM control 6. Cultural control
Control often has an emotive connotation and can be interpreted in a negative manner to support direction or command by the giving of orders. The purpose of any control systems is to regulate behaviour. People can be suspicious of them. The common fear is that control is about punishment and exploitation.
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8.2 Elements of an Organisational Control System
There are five elements of an organisational control system (Figure 8.1):
Planning what is desired
Establishing standards of performance
Monitoring actual performance
Comparing actual achievement against the planned targets; and
Rectifying and taking corrective action.
Read (Mullins and Christy, 2010) the sections on “Elements of an organisational control system” and “Characteristics of an effective control system”, pages 668-669, 673-675
Figure 8.1 The five essential stages of organisational control
Source: (Mullins and Christy, 2010)
Review question
According to Hicks and Gullett, “controls systems should be understandable…”. What does this mean?
8.3 Power
Power is a complex and dynamic concept. It is usually linked to management control. It can be interpreted as control or influence over the behaviour of other people with or without their consent. Etzioni suggested three types of power in the context of organisational relationship:
Coercive Power: use of threat to make people do certain things
Remunerative (Reward) Power: use rewards, perks, new projects or training opportunities, better roles and monetary benefits to influence people.
Normative Power: relies on the allocation and the manipulation of symbolic rewards, for example, esteem and prestige.
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Fincham looked power from a perspective of the different levels at which it is constituted, and identified three types:
Processual power: originates from daily interaction; focuses on ‘micro-politics’ of organisational life; stresses power as negotiation and bargaining.
Institutional power: rests on managerial authority; is ‘mandated’ to the organisation; relies on institutional rules.
Organisational power: stresses the organisation’s own power system and the hierarchy.
Stewart defines three main forms of control (or the ways power is exercised):
Direct control by order, direct supervision and rules and regulations
Control through standardisation and specialisation
Control through influencing the way that people thinks about what they should do
8.4 Empowerment
Today’s complex and turbulent business environment calls for a more flexible and autonomous workplace than ever before. To do so and to unlock the potential of a successful workforce, management must use empowerment. Empowerment is about giving employees greater freedom, autonomy and self-control over their work, and responsibility for decision making (Mullins and Christy, 2010). The idea is the by allowing employees more say in what they do and how they do it will make them more motivated for better performance.
Delegation is closely related to empowerment; is the process of entrusting authority and responsibility to others throughout the various levels of the organisation.
8.4.1 Manager-subordinate relationship
Figure 8.2 shows the relationship between managers and subordinates and the three key concepts of: authority, responsibility, and accountability.
Figure 8.2 The basis of delegation
Source: (Mullins and Christy, 2010)
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Read (Mullins and Christy, 2010) the section on “Manager-subordinator relationship”, pages 684-686
Review question
Can you only delegate the responsibilities and retain the
authority? Why?
8.4.2 Benefits of delegation The principle of delegation is that decisions should be made at the lowest level appropriate tot to situation. In this way, the organisation will function more efficiently. The benefits of delegation include:
The manager gains more discretionary time.
Subordinates gain more capabilities and knowledge, thereby increasing their effectiveness.
Demonstrates trust and confidence.
Enhances worker commitment.
Improves the quality of decision making by involving more people.
Improves coordination of work.
Read (Mullins and Christy, 2010) the section on “Benefits of delegation”, pages 686-687
Review question
Many managers fear delegation will lead to loss of control and
poor performance. What is your view?
8.4.3 Empowerment vs delegation There are some commonalities between empowerment and delegation. Sometime people use them synonymously. However, there are some differences (Table 8.1).
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Table 8.1 Differences between empowerment and delegation
Delegation is a division of labour
Assignment of specific duties or responsibilities to an individual
Empowerment instils a sense of power
Granting decision-making authority, and/or
Creating opportunities to influence decisions
Providing ability to make choices Delegation requires:
Defined expectations
Communication
Coaching
Monitoring
Feedback
Trust
Empowerment requires:
Shared values
Shared power
Defined boundaries
Communication
Feedback
Recognition
Trust
8.5 A Systematic Approach to Empowerment and Delegation
Setting up s successful system of delegation involves the manager examining four basic
questions and following a six stages process (Figure 8.3).
Figure 8.3 Main stages in the process of delegation
Source: (Mullins and Christy, 2010)
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Read (Mullins and Christy, 2010) the section on “A systematic approach to empowerment and delegation”, pages 689-690
When deciding how to delegate effectively, follow the 10 principles of empowered
delegation.
1. Begin with the end in mind.
2. Delegate completely.
3. Allow participation in assignment delegation.
4. Establish parity between authority and responsibility.
5. Work within the organizational structure.
6. Provide adequate support for delegated tasks.
7. Focus accountability on results.
8. Delegate consistently.
9. Avoid upward delegation.
10. Clarify consequences.
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9. SOCIAL RESPONSIBILITY AND ETHICS
9.1 What is Corporate Social Responsibility?
Corporate social responsibility (CSR) is the process by which businesses negotiate their role in society. The following are some definitions:
“Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.”
World Business Council for Sustainable Development
“Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business.”
Business for Social Responsibility
“A concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.”
European Commission
The comprehensive approach organisations take to meet or exceed the expectations of stakeholders beyond such measures as revenue, profit and legal obligations. It covers community investment, human right and employee relations, environmental practice and ethical conduct.
Figure 9.1 Multiple layers of CSR
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Review question
Recently, several large multi-national companies have been
reported paying very little tax to the UK government. However, at
the same time, these companies are involved in supporting
various charities and community initiatives.
What do you think of them from a CSR perspective?
9.2 Why CSR becomes important?
Globalisation and emergence of large-scale business result in increasingly important role of business in people’s lives.
Such power and influence need to be tempered by an attitude of responsibility by management and other means.
For its own survival, a business needs to fulfil some broader responsibilities to society in general – Corporate Social Responsibilities.
9.3 CSR continuum
The practice of CSR spreads in a wide spectrum with “maximize firm’s profits to the exclusion of all else” on one end and “balance profits and social objectives” on the other (Figure 9.2).
Figure 9.2 CSR continuum
Source: www.slideshare.net
Review question
What can be done to encourage companies to move toward the
right end of the CSR continuum?
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9.4 Role of legislations
In recognition of the importance of corporate social responsibilities, government has been introducing a series of legislations on:
Employment protection
Equal opportunities and diversity
Companies Acts
Consumer Law
Product liability
Safeguarding environment
9.5 Organisational Stakeholders
Read (Mullins and Christy, 2010) the section on “Organisational stakeholders”, pages 714-716
Review question
When the interests of different stakeholders collide, what should
a company do?
9.5 UN Global Compact (UNGC)
The UN Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption (Figure 9.3). By doing so, business, as a primary driver of globalization, can help ensure that markets, commerce, technology and finance advance in ways that benefit economies and societies everywhere.
Figure 9.3 Principles of UN Global Compact
Source: www.unglobalcompact.org
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9.6 Business Ethics
Business ethics is the application of ethical values to business behaviour. Business behaviour reflects the fundamental purposes of a company. If a company's purpose is to maximize shareholder returns, then sacrificing profits to other concerns is a violation of its responsibility. Therefore, to promote ethical behaviour requires encouraging companies to put ethical values at the centre of their business values (Figure 9.4).
Figure 9.4 Ethical values at the centre of business value
Source: Institute of Business Ethics
Ethical values need to be translated into ethical business conduct through governance, core business strategy and policies & code of practice & performance targets.
Figure 9.5 Ethical values lead to ethical business conduct
Source: Institute of Business Ethics
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Review question
Find information of ethical values for a company of your choice.
Examine how these ethical values are translated into ethical
business practice.
Suggested further reading: (Mullins and Christy, 2010) the section on “Business Ethics”, pages 721-724
Review question
“Good ethics is good business”. Do you agree?
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10. ORGANISATION CULTURE AND CHANGE MANAGEMENT
10.1 Organisational Culture
Culture is “a set of values, attitudes, beliefs, and meanings that are shared by the members of a group or organisation”.
It is often the primary way in which one ‘group’ (organisation, team, etc.) differentiates itself from others.
“Reflects the underlying assumption about the way work is performed, what is acceptable and not acceptable, and what behaviour and actions are encouraged and discouraged.”
Atkinson
“The collection of traditions, values, beliefs, and attitudes that constitute a pervasive context for everything we do and think in an organisation.”
McLean & Marshall
Organisational culture can reflect:
1. the ways the organization conducts its business, treats its employees, customers, and the wider community,
2. the extent to which freedom is allowed in decision making, developing new ideas, and personal expression,
3. how power and information flow through its hierarchy, and 4. how committed employees are towards collective objectives.
Schein suggested a view of organisational culture based on distinguishing three levels of culture:
1. Artefacts – physical space and layout, technological output, written and spoken language, overt behaviour of group members.
2. Values – values and beliefs become part of the conceptual process by which groups members justify actions and behaviour.
3. Basic underlying assumptions – unconsciously held learned responses.
Figure 10.1 Levels of organisational culture
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10.2 Types of Organisational Culture
Every company has its own unique culture; large companies may have a mixture of different cultures for different sections. There are different ways to classify organisational culture. Handy defines four types:
Power culture
Role culture
Task culture
Person culture
Deal and Kennedy proposed the following generic culture types:
Tough-guy, macho culture
Work-hard/play-hard culture
Bet-your-company culture
Process culture
There may be other ways of categories.
Read (Mullins and Christy, 2010) the sections on “Types of organisational culture” and “Influences on the development of culture”, pages 740-743
Review question
What are the main factors that influence a company’s culture?
10.3 The Importance of Culture
Harrison and Stokes believe that “culture impacts most aspects of organisational life, such as how decisions are made, who makes them, how rewards are distributed, who is promoted, how people are treated, how the organisation responds to its environment, and so on”.
Read (Mullins and Christy, 2010) the section on “The importance of culture”, pages 744-748
Review question
How does company culture affect its performance?
10.4 The Nature of Organisational Change
Change is a constant feature of modern businesses. Successful companies are those capable of implementing internal changes and adapting to external ones.
10.4.1 Forces of change
The forces or drivers of change originate from the increasingly volatile environment caused by factors, such as:
Uncertain economic conditions
Globalisation and fierce world competition
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The level of government intervention
European Union social legislation
Political interests
Scarcity of natural resources
Rapid developments in the new technologies and the information age
Increased demands from customers
New way of working and management
Change in work force
These factors lead to internal change drivers, such as:
Improving performance
Adopting new technology
Changing attitude of employee
Changes to business processes
As well as external drivers, such as:
Compliance
Technology
Globalisation
Legislation
Changing attitudes of customers
Merges and acquisitions
Read (Mullins and Christy, 2010) the section on “The forces of change”, pages 752-754
Review question
Is change always a good thing? What are the potential negative
impacts of change?
10.4.2 Resistance to change
Despite the inevitability and potential positive outcomes, change is often resisted at both the individual and organisational level.
Resistances at the individual level include:
Selective perception
Habit
Inconvenience or loss of freedom
Economic implications
Security in the past
Fear of the unknown
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At the organisational level, change resistances include:
Organisation culture
Maintaining stability
Investment in resources
Past contracts or agreements
Threats to power and influence
Read (Mullins and Christy, 2010) the section on “Resistances to change”, pages 756-757
Review question
Are these resistances to change rational?
10.5 Process of Change
Lewis’s three-step change model (Figure 10.2) is the most widely used to describe the process of organisational change.
Figure 10.2 Lewin’s three-step change model
Unfreezing
Launch change efforts to overcome the pressures of individual resistance and group conformity.
Arouse dissatisfaction with the current state.
Bring in “disconfirming” information.
Help people “unlearn” conventional wisdom.
Moving
Get employees involved in the change process.
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Establish goals.
Activate and reinforce top management support.
Recruit and empower change agents.
Encourage participatory decision-making.
Institute smaller, acceptable changes that reinforce and support change.
Reward and celebrate success.
Maintain open, two-way communication
Refreezing
Stabilize the change intervention by rebalancing driving and restraining forces.
Build success experiences.
Reward desired behaviour.
Develop structures to institutionalize the change.
Make change work.
Read (Mullins and Christy, 2010) the section on “Planned organisational change”, pages 753-755
Review question
What are eight specific components of a planned change,
proposed by French, Kast and Rosenzweig?
10.6 Managing Organisational Change
Read (Mullins and Christy, 2010) the section on “The Management of Organisational Change”, pages 759-764
Review question
Review the eight steps of successful change, listed by Kotter and
Cohen. Compare them with the eight components proposed by
French, Kast and Rosenzweig.
10.7 Two Decades of Change in the Construction Industry
The UK construction industry is often criticised for its poor performance (poor quality, high cost, unreliable delivery time), conservative culture (macho image, slow to adopt new technologies) and poor health and Safety records. There has been a continuous drive for a culture change for the industry.
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10.7.1 Latham report The construction industry suffered badly during the recession of the early 1990s. Output had declined 39% between 1990 and 1993; half a million jobs had been lost in the industry between 1989 and 1993; and 35,000 small businesses had disappeared.
The UK government announced a “Joint Review of Procurement and Contractual Arrangements in the UK construction industry”, on 5 July 1993.
Final report “Constructing the Team” (the Latham report), was published in July 1994.
Key messages:
Client should be at the core of construction process
Best route to achieving client satisfaction is through teamwork, trust and cooperation
The need for culture change
Government responses
Introduce the Construction Act of 1998
Establish industry-wide strategy body, the Construction Industry Board, and Construction Clients’ Forum
10.7.2 Technology Foresight report Progress through Partnership” was published in 1995, which requires the construction industry:
To reduce costs, and value and sharpen international practice
To pay greater heed to environment and social consequences
To strengthen technological capability
To improve education and training
To upgrade existing buildings and infrastructure
To re-engineer basic business processes
10.7.3 Egan report
Following the 1997 election, a new review, led by Sir John Egan, was initiated by the Labour government. This resulted in the “Rethinking Construction” (Egan report) in 1998.
Key messages
“The [UK] construction industry at its best is excellent. Its capacity to deliver the most difficult and innovative projects matches that of any other construction industry in the world.”
However, “there is deep concern that the industry as a whole is under-achieving. It has low profitability and invests too little in capital, research and development and training. Too many of the industry’s clients are dissatisfied with its overall performance.”
Egan proposed a change model and specific improvement targets for the UK construction industry (Figure 10.3).
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Figure 10.3 Egan’s model for change in the construction industry
More and latest information can be found at: www.constructingexcellence.org.uk
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REFERENCES
Child J., Organization: Contemporary Principles and Practice, Blackwell Publishing, 2005
Fryer B., The practice of construction management, 4th edition, published by Blackwell
Publishing, Oxford, UK, 2004
Hannagan T., Management concepts and practice, published by Pitman, 1995
Mabey, C., Salaman, G. & Storey, J., Strategic human resource management, London:
SAGE Publications, 1998
Mullins L. and Christy G., Management and organisational behaviour (9th Ed.), published
by Financial Times Prentice Hall, Harlow, 2010
Whetten D. A. and Cameron K. S., Developing Management Skills, 6th Edition, published
by Prentice Hall, 2004
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Appendix 1: How to Assess Your Leadership Style
Appendix 2: Leadership in the construction industry
Appendix 3: Effective Teamwork: A Best Practice Guide for the Construction Industry
