MANAGEMENT AND LEADERSHIP

ByProfessor Benon C Basheka (Ph.D)

Objectives of training• Emerging global paradoxical challenges facing

employers & trade unions • Union responses to Industrial, Organizational,

Technological and market changes/recessionary• challenges.• Economic systems and structural adjustments and

trade unions • • New responsibilities and role of trade union in the

new industrial & business scenario;

• Building collaborative leadership working-together; Enhancing information base, communication skill;

• Positive union management relations• • Creating awareness, leading to attitudinal

changes and providing the inputs for responsive & responsible

• leadership• • Working out concrete Action Plans for future

• Because effective leadership is at the core of successful businesses, the understanding of

• what makes a successful leader is an issue that has been debated for decades.

• Leadership has become even more important due to the noticeable decline of enduring successful leaders in the business world today

• The leader is the person in the group that possesses the combination of personality and skills that makes others want to follow his or her direction

• Robbins (2003) defines leadership as, coping with change.

• Leaders establish direction by developing a vision of the future; then they align people by communicating this vision and inspiring them to overcome hurdles.

• Ernsberger (2000) states that leadership involves accomplishing group objectives, taking a diverse group of people, bringing them together, and finding a common thread that enables them to work together to achieve a common goal.

INTRODUCTIONEveryone belongs to organizations and is

aware of what goes on in organizationsGood things take place in organizations but

also bad and evil things are committed in our organizations

The leadership and management of organizations have never been more challenging than it is today.

This is because organizations are continuously operating in very changing and competitive environments.

….• Solutions which worked yesterday may

not work today• Individuals also keep changing and are

becoming more complex and dishonest• Resource are increasingly becoming

scarce and managers are required ‘to do more with less’

• Problems in organizations are becoming too many and solving them requires sophisticated skills and multidisciplinary competencies

• Organizations of today are increasingly being divided on the basis of:▫ Tribe▫ Religion▫ Education▫ Gender▫ Political ideology▫ ETC

Worry to note that….

• Promotions and recruitments into organizations which used to be on merit are now increasingly based on some irrational criteria

• Those who occupy offices do not want to leave for others

• Institutions trusted with certain mandates are simply not doing what they ought to do

…..

• Private interest sometimes supersede organizational interests

• Institutional procedures are not followed and yet;

• Such organizations are run by educated people-not peasants

• Things seems to be ‘falling apart’ in many organisations-organisations are sick

So what is the problem?• Leadership cannot escape these

problems• Those in management are grossly

responsible -The biggest problems come from those charged with Management (20/80 rule) at various levels

• Individuals in are part of the problem• Groups in organizations have further

increased the problem

Every organization has : • Managers, but few people know what these

managers really do or are expected to do. • Managers are supposed to have authority and

power, which implies the ability to coerce compliance by making subordinates carry out orders.

• Let us explore some key concepts from onset

Trade Union Leadership• The trade union, through its leadership, bargains

with the employer on behalf of union members and negotiates labour contracts (collective bargaining) with employers.

• The most common purpose of these associations or unions is "maintaining or improving the conditions of their employment“.

• This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, work

• place safety and policies.

• One of the key challenges facing trade union organizations today in Africa is that of leadership structure and the politics of succession.

• In its basic form, a trade union organization is not a democratic structure due to its methods of succession as far as leadership is concerned.

• Trade union organizations constitute integral part of the societies as representatives of the workers

Theories of Trade Union Management

Challenges in Trade Union Leadership

• Challenges of Democracy• The Political Factor• Union Government Relationship• Aristocratic Authority and the Leadership Question• Rank and File Question

An organization always has three characteristics:

Structurepurpose, and Activity

The word "goals" usually implies something that cannot be accomplished by individuals working at it alone or in separate ways, so in this sense, goals require synergy and synergy requires organization. 

The History of Organizational Management

• Management has not evolved today• There are several examples of management that

span the history of the human race• The history of management can be traced under the

following periods:▫ Ancient times▫ Medieval Times▫ Industrial period▫ 20th Century▫ 21st Century

Interest of Managers…• The ideal interest of every manager should be to

have an effective (as well as efficient) organization.• Effective organizations focus on (Hersey et al,

2001). :Quality and customer satisfaction;Respond quickly to environmental changesInnovate, develop and implement appropriate strategies;Have a global mindsetAre willing to network with strategic partnersCope with changes in management and are committed to

continuous learning

• It is those in management who will ensure that the organization either achieves its objectives OR it fails to do so.

• It is documented that it is managers who are responsible for the collapse of many organizations (80/20 Rule or the Pareto Principle).

Management is:Both an art and a scienceIs as Profession and Is an academic discipline .

• Mullins (2007) while quoting Watson(1986) considers Management from four angles:▫ Management as a science-Successful

managers are those who have learned the appropriate body of knowledge and have developed an ability to apply acquired skills and techniques

• Management as an art-Successful managers are those born with appropriate intuition, intelligence and personality which they develop through the practice of leadership

• Management as politics-Successful managers are those who can work out the unwritten laws of life in an organizational jungle and are able to play the game so that they win

• Management as Magic-successful managers are those who recognize that nobody really knows what is going on and who persuades others of their own powers by calling up the appropriate gods and by engaging in the expected rituals

Six Business Principles for every manager

• Value for customers▫ A business exists to create value of some kind. It takes

raw materials or activities and increases their value in some way, transforming them into products or services that customers will buy.

▫ Value is what customers pay for- customers buy things that they value.

• Organization▫ An organization must have goals and the

resources (human, material, and financial) to meet those goals.

▫ It must keep track of what it does and how well it does it.

▫ Each department has to perform its function properly.

▫ Employees must be assigned specific tasks that move the outfit toward its goals.

• Competitive advantage▫ To succeed in a particular market, a company

must do something better than other companies in that business.

▫ Doing something better creates a competitive advantage.

▫ That “something” may be only one aspect of the product or service, as long as customers value it highly.

• Control▫ After management decides how to create value, organize

the business, and establish a competitive advantage, it must control the outfit.

▫ This does not mean ruling with an iron fist (although some managers believe it does).

▫ Rather, it means that everyone must know the company’s goals and be assigned tasks that will move everyone toward those goals.

▫ Controls ensure that the right manager knows what’s going on at all times.

▫ These controls are based mostly on information. ▫ For example, every company needs financial controls. ▫ Managers have budgets so they can control their

department’s spending.

• Profitability▫ A business is set up to make money. The money a

business earns can be measured in various ways. But no matter how it is measured, a business has to make money—earn a profit—on its operations.

▫ If, during a certain period of time, a business takes in more money for its products than it spends making those products, it makes a profit for that period.

▫ If not, it has a loss for the period. Losses cannot continue for long or the company will go bankrupt.

• The most basic goal of management is to make money for the business owners.

• Regardless of how well they do anything else, managers who lose money for the owners will not keep their jobs for long.

• Whatever else a business does, its overall goal must be profitability

• Ethical practices▫ Today’s competitiveness and the drive for profits

have been blamed for an upswing in bad behavior in business.

▫ However, dishonesty and greed have been around as long as business itself—longer, in fact.

▫ Although the vast majority of businesspeople are honest, managers in particular must engage in and tolerate only completely ethical practices.

• This is true for three reasons: ▫ First, managers, especially senior managers, hold a

position of trust as stewards of the company for the stockholders, employees, customers, and community.

▫ Second, managers have the most opportunity to enrich themselves at the expense of the stockholders, employees, customers, and community.

▫ Third, managers set the standard for the entire company. If they are fudging their numbers, how can they expect honest numbers from their subordinates?

Management and Leadership• Leadership and management are two notions that

are often used interchangeably. However, these words actually describe two different concepts.

• Managing and leading are two different ways of organizing people.

• The manager uses a formal, rational method whilst the leader uses passion and stirs emotions.

• Leadership is the process of directing and influencing the task-related activities of group members.

• Leadership involves other people and an unequal distribution of power between leaders and group members, and it is the ability to use different forms of power to influence followers’ behaviour in a number of ways.

• This gives three implications namely that:▫ Leadership involves other people-subordinates or

followers▫ Leadership involves unequal distribution of power

between leaders and group members▫ Leadership is the ability to use the different forms of

power to influence follower’s behaviours in a number of ways.

• Although leadership is highly related to management, the two concepts are different. Managers perform functions in organizations and hold a particular formal title.

• Leaders on the other hand aim to influence and guide others into pursing particular objectives or visions of the future and to stimulate them into wanting to follow

• In a nutshell, the difference between leadership and management is:▫ Leadership is setting a new direction or vision for a

group that they follow, ie: a leader is the spearhead for that new direction

▫ Management controls or directs people/resources in a group according to principles or values that have already been established.

Differences summarized as….

Subject Leader Manager

Essence Change Stability

Focus Leading People Managing People

Have Followers Subordinates

Horizon Lon-term Short-term

Seeks Vision Objectives

Approach Sets direction Plans detail

Decision Facilitates Makes

Power Personal Charisma

Formal authority

Appeal Heart Head

Energy Passion Control

Dynamic Proactive Reactive

Persuasion sell Tell

Style Transformational

Transactional

Exchange Excitement for work

Money for work

Likes Striving Action

Wants Achievement Results

Risks Takes Minimizes

Rules Breaks Makes

Conflict Uses Avoids

Direction New Roads Existing Roads

Truth Seeks Establishes

Concern What is right Being Right

Credit Gives Takes

Blame Takes Blames

What Do Managers Do?• One of the first and most widely quoted analyses of

the activities of management is that given by Henry Fayol who analyzed the activities of industry undertaking into six groups (Mullins, 1999, p.170).

• The six groups include▫ Technical (Production, manufacture and adaptation); ▫ Commercial (buying, selling, exchange and market

information),▫ Financial (obtaining capital and making optimal use

of available funds);▫ Security (safeguarding property and persons),

▫ Accounting (information on the economic positions, stock taking, balance sheet, costs, statistics; and

▫ Managerial (management is a translation of the French term administration).

• According to Fayol, the managerial activity was divided into five elements of management which are:▫ Planning-translated from the French prevoyer-to

foresee and taken to include forecasting)-examining the future, deciding what needs to be achieved and developing a plan of action

▫ Organizing-providing the material and human resources and building the structure to carry out the activities of the organization

▫ Command-maintaining activity among personnel, getting the optimum return from all employees in the interest of the whole organization

• Co-ordination-unifying and harmonizing all activities and effort of the organization to facilitate its working and success

• Control-verifying that everything occurs in accordance with plans, instructions, established principles and expressed command

Fayol also suggested that a set of well established principles would help concentrate general discussion on management theory.

He emphasized that these principles must be flexible and adaptive to the changing environment.

This was probably one of his foresighted views about the continuous changing environment in which managers operate.

14 Principles of administrationDivision of WorkAuthority and responsibilityDisciplineUnity of commandUnity of directionSubordination of individual interest to general

interest• Remuneration of personnel

• Centralization is always present to some degree in any organization

• Scalar chain-The chain of superiors from the ultimate authority to the lowest ranks

• Order-Material order and social order• Equity• Stability of tenure of personnel• Initiative• Esprit de corps

According to Mullins (1999)

• Managers▫ manage and interact with people▫ coach low performers to improve their work▫ organizing job tasks▫ settling disputes, and ▫ developing career paths for individual employees

but these are only part of the managerial activities in which managers become heavily involved’.

Note • It must be noted that management is not a

systematic process. • The ‘real’ world of management is chaotic,

challenging and creative. • Managers have a heavy workload comprising

predominantly current, specific and ad hoc issues.

• Interpersonal roles- All managers are required to perform duties that are ceremonial and symbolic in nature.

• All mangers also have leadership roles-hiring, training, motivating and disciplining employees.

SKILLS OF MANAGERS• Most people are hired by organizations to initially

perform some tasks involving technical skills. • These skills provide an individual with expertise to

perform specialized tasks within a specific work domain (Perterson, 2004).

• Quite often; individuals are later promoted to managerial positions because they have shown themselves to be technically competent (Byrd et al, 2004).

• It has almost become a norm in organizations that to access managerial positions, individuals must demonstrate some recognized degree of technical competence in some area of specialization.

• This suggests that while they may have some technical skills, these individuals usually lack management skills.

• Therefore, such individuals need to have other skills other than the technical skills

• While the technical skills provide knowledge on specialized tasks, managerial skills provide expertise on managerial activities.

• That is why some managers may not do certain tasks of their jobs because they lack the abilities and skills to perform them effectively-they tend to avoid some management aspects of their jobs where they lack expertise

• This ‘trick’ may not be sustainable in the era of modern management world where managers are required to be ‘generalists’.

• At best, the manager’s current jobs can be described as being harshly chaotic.

• Managers now operate in turmoil and require skills to take them through this turmoil

• The literature of management is full of authoritative write ups on the managerial skills requirement.

• In 1955, the Harvard Business Review (HBR) published an article by Katz entitled ‘Skills of an effective administrator’.

• The framing of the title in itself suggest that there are two types of administrators namely effective and ineffective administrators.

• In that article, the author argued that what was important was not an executive’s traits or personality characteristics, but what that executive could accomplish.

• He argued that it is a set of core skills which are employed by managers in pursuit of organizational objectives that was important.

• Katz noted that the core managerial skills were not inborn personality traits but felt that these skills could and should be developed in managers by providing them with a set of managerial knowledge bases and methods for accessing this information

• Based on the above assumptions, Katz proposed that managers need three sets of skills namely technical, human and conceptual skills with each broad category having narrowly focused abilities.

• Katz also noted that there were a lot of interrelationships among the three skills although he had described each independently.

• Technical skills -defined as the understanding of, or proficiency in, specific activities that require the use of specialized tools, methods, processes, procedures, techniques or knowledge

• Accordingly, Katz noted that these skills required working with things not people

• Human skills-These are defined as the ability to cooperatively work with others, to communicate effectively, to resolve conflict, and to be a team player.

• Human skills are primarily concerned with people

• Conceptual skills-the ability to see the organization as a whole or to have a systemic view point.

• While technical skills focus on things and human skills focus on people, conceptual skills focus on ideas and concepts.

Ten years after Katz’s article, Mann (1965) conducted a series of studies to test the conceptualization of skills by Katz.

His studies found empirical support for the ideas of Katz that different amounts of the three skills categories are required at different levels within the organization

The author also provided evidence that the three skills were interrelated and that all levels of management needed the three sets of skills

• In 1974, the Harvard Business Review (HBR) republished the Katz article as an ‘HBR classic’.

• In introductory comments to the article, the Harvard Business Review Editorial staff said ‘the soundness of this approach is shown by enduring popularity of the article-nearly 4,000 reprints were sold in the first six months of 1974’.

• Many organizations have suffered because their managers usually lack these three sets of skills. Meanwhile, research in this area was not done

In 1978, Guglielmino conducted an empirical study on managerial skills where he surveyed a random sample of middle level managers from Fortune 500 companies, management professors in business schools, and training and development directors from Fortune 500 companies

All these three groups identified technical, human and conceptual skills as being important for managers of the future.

Also, a mix of the three skills was reported as being necessary at each level of management.

From the huge volumes of literature on managerial skills, it is clear that the message delivered by Katz in 1955 is still profound.

However, some additional skills have been added. There are now a round ten skills which are usually identified as critical for managerial work

According to Peterson (2004) an examination of the seven additional skill categories suggests that each category attempts to capture a group of specific tasks that the manager must perform to be effective.

• Technical• Analytic• Decision making• Human• Communication• Interpersonal• Conceptual• Diagnostic• Flexible• Administrative

CORPORATE GOVERNANCE

RESULTS –ORIENTED MANAGEMENT

• Trade unions are integral part of our industry and business life. But still none or few of them enjoy the confidence of employers.

• The vice-versa is also equally true