Download Name of presentation - KV Institute of Management and Information

UNIT - 4
ENVIRONMENTAL ISSUES IN MANAGERIAL
EFFECTIVENESS
Change is an important feature of modern organization.
Significant take place every day in social, technological, political and
other aspects of modern world. These changes create new challenges
and opportunities for the managers world.
The important environmental issues for the effectiveness of managers are
discussed below:
 Changes in social environment
 Changes in economic environment
 Changes in technological environment
 Changes in political environment
 Changes in International environment
Changes in social environment – Social factors which will shape future
management strategies are as follows:
 Population explosion
 Education level
 Leisure time
 Public opinion
Population explosion – population is increasingly rapidly. Increasing
population will require new jobs, new methods of production and
distribution and new modes of living.
Education level – The government of various countries are taking steps
to eradicate illiteracy and to increase the education level of their
citizens.
Leisure time – People will have more leisure time because of reduced
working hours, increased automation and quick means of transport
and communication. The effect of this trend are many and varied.
Public opinion – Public opinion about business will shape the attitudes of
future managers. If the people have distrust in the market system, they
will prefer government controls to growing competition.
Changes in economic environment – The degree of resource
exploitation will have a direct bearing on the economic environment
and through this on the business. As is obvious from the present
trends, environment will not remain confined to land only, but would to
oceans and space also.
Changes in technological Environment – Technological changes will
affect management in the future. In future all big organization will be
actively engaged in technological forecasting.
 Automation – Automation has created new problems. Job have
become routinized and unchallenging. Introduction of industrial
robots has created a feeling of job insecurity among workers.
 Information technology – There will be remarkable impact of
computerized information systems on management. The impact of IT
on management are as follows:
i.
There will be use of electronic equipment to collect and process
ii. Computers will help applications of quantitative techniques to
management problems.
iii. There will be simulation of higher order thinking through computer
programs.
Changes in political Environment – There will be greater government’s
interference in business to safeguard the interest of workers,
consumer and the public at large. The government may restrict the
scope of private sector in certain areas.
Changes in International Environment – Multilateral trade among the
nation will increase. The role of IMF, World Bank and other
international institutions will change and a new economic order will
take place leading to globalization of economics.
ORGANIZATIONAL PROCESSES
Organization
is
an
arrangement
for
an
internal
administration of the enterprise. It is mechanism of management by
which group performance is achieved for the realization of objectives
through definition and division of activities, responsibility and
authority.
According to Ralph C. Davis, “Organization is a group
of people who cooperate under the direction of leaderships, for the
accomplishment of a common end”
According to Jones D. Mooney, “Organization is the
form of every human association for the attainment of a common
Nature/characteristics of Organization :
The characteristics of organization are as follow
Division of Labor – Division of labor leads to specialization which
increases the efficiency of individual employees. Subdivision makes
each task simpler and results in greater efficiency.
Coordination – In any organization, different persons are assigned
different functions and yet all these functions have only one aim
ORGANIZATIONAL CLIMATE
Meaning :
Organizational climate is very important factor to be considered
in studying and analyzing organizations because it has profound
influence on the outlook, well-being and attitudes of organizational
members and, thus on their total performance. It affects the behavior
of people in three ways:
i.
Defining the stimuli that confront the individual
ii.
Placing constraints upon the individual’s freedom of choice.
iii. Providing source of reward and punishment
 Organizational climate should be viewed from total system point of
view. In organizations, there may be differences in climate in
different work units, as commonly observed.
 It is because one type of climate may be suitable to one particular
unit and the same may be unsuitable for another unit.
According to Abuhamdeh & Csikszentmihalyi “An organizational
climate of an organization is described by a certain set of
characteristics depicted in the organization”
According to Bowditch and Buono “organizational culture is with the
nature of belief and expectations life, while climate is an indicator of
whether those beliefs and expectations are being fulfilled”.
Characteristics of organizational climate
General perception – Organizational climate is a general expression of
what the organization is. It represents the summary perception,
which people have about an organization.
Qualitative concept – It is an abstract and intangible concept. It is
difficult to explain the components
of organizational climate in quantifiable units.
Enduring quality – It is built-up over a period time. It represents a
relatively enduring quality of the internal environment that is
experienced by the organizational members.
Multidimensional concept – There are several dimensions of the concept
of organizational climate such as individual autonomy, authority
structure, leadership style, pattern of communication, degree of
conflicts and cooperation, etc.
FACTORS INFLUENCING ORGANIZATIONAL CLIMATE
• Organizational values and norms – conformity, loyalty, impersonality and
reciprocity.
• Overt & Covert factors of Organization climate
– Open factor: Hierarchy, Goals of organisation, Skills and abilities of
employees
– Closed factor: Values, attitudes, Norms
FACTORS INFLUENCING ORGANIZATIONAL CLIMATE
• Organizational context – mission, goals and objectives,
function, etc.
• Organization structure – size, degree of centralization and
operating procedures.
• Leadership
process
– leadership
styles,
communication,
decision-making and related processes.
• Physical environment – employee safety, environmental
stresses and physical space characteristics.
APPROACHES TO LEADERSHIP
Early Approaches
Trait Theory
Behaviour
Theory
Situational Theory
Stogdill’s
Trait Factor
University
Iowa Studies
Fiedler’s Contingency Model
Leader
Continuum
Hersey and Blanchard’s
Situational Leadership
Ohio State
University
Studies
Leadership Participation
Michingan
Research
Tannenbaum & Schmidt’s
Situational Continuum
Managerial
Grid
Path Goal Theory
Ghiselli ‘s
Personal
Traits
Reddin’s Three Dimensional
Model
Contemporary Approaches
Transactional –
Transformational
Leaders
Charismatic
Leadership
Theory
STOGDILL’S TRAIT FACTORS
1. Intelligence
2. Physical Features
3. Inner Motivation Drive
4. Maturity
5. Vision and Foresight
6. Acceptance of Responsibility
7. Open-mind and Adaptability
8. Self-Confidence
9. Human Relations Attitude
10.Fairness of Objectivity
GHISELLI ‘S PERSONAL TRAITS
1. Very Important






Decisiveness
Intellectual capacity
Job achievement orientation
Self-actualization feelings
Self-confidence
Management ability – Team builder
2. Moderately Important





Affinity for working class
Drive and initiative
Need for a lot of money
Need for job security
Personal maturity
3. Almost No Importance
 Masculinity versus femininity
UNIVERSITY IOWA STUDIES
Behaviour Theories are based on
1. Employee-Centered
2. Job-Centered
University Iowa Studies
• Autocratic Leadership Style
• Democratic Leadership Style
LEADER CONTINUUM
• Autocratic
• Laissez – Faire
• Democratic
• Benevolent Autocrat
OHIO STATE UNIVERSITY STUDIES
• Initiating Structure
• Consideration
The findings of the study:
1. Initiating Structure: Positively related to
performance
and
negatively
related
to
absenteeism & Grievances.
2. Consideration: Negatively related to performance
and positively related to absenteeism &
Grievances.
3. Both: High performance and satisfaction
MICHINGAN RESEARCH
• Employee Centered Behaviour
• Production Centered Behaviour
Job
Centered
Employee
Centered
Leaders will not be able to have an employee centered
behaviour and production centered behaviour at the same
time.
MANAGERIAL GRID
• Concern for Production
• Concern for People
FIEDLER’S CONTINGENCY MODEL
• Task-oriented or controlling: Leader gains
satisfaction from seeing tasks performed
• Relationship-oriented
or
considerate:
Leader tries to achieve good interpersonal
relations with the subordinates.
HERSEY AND BLANCHARD’S SITUATIONAL
LEADERSHIP
LEADERSHIP PARTICIPATION
Leadership Styles
• Decide: Leader makes the decision alone and either announces or sells it to
the group.
• Consult Individually: Leader presents the problem to group members
individually and get their suggestions.
• Consult Group: Leader presents the problem to group in a meeting and
then makes a decision.
• Facilitate: Leader presents the group about the problem and the
boundaries within which a decision should be made.
• Delegate: Leader permits the group to make the decision within prescribed
limits.
TANNENBAUM AND SCHMIDT’S SITUATIONAL
CONTINUUM
PATH GOAL THEORY
The theory states that a leader's behavior is
dependent to the satisfaction, motivation and
performance of her or his subordinates.
REDDIN’S THREE DIMENSIONAL MODEL
Basic Style
Less Effective
Managerial Style
More Effective
Managerial Style
Separated
Deserter
Bureaucrat
Related
Missionary
Developer
Dedicated
Autocrat
Benevolent Autocrat
Integrated
Compromiser
Executive
• High relationship orientation & high task orientation is called
as INTEGRATED TYPE.
• High relationship orientation & low task orientation is called as
RELATED TYPE.
• Low relationship orientation & high task orientation is called as
DEDICATED TYPE.
• Low relationship orientation & low task orientation is called as
SEPARATED TYPE
TRANSACTIONAL –TRANSFORMATIONAL
LEADERS
• Transactional Leaders: Leaders who guide
or motivate their followers in the direction
of established goals by clarifying role and
task requirements.
• Transformational Leaders: Leaders who
inspire followers to transcend their own
self-interests and who are capable of
having a profound and extraordinary
effect on followers.
CHARISMATIC LEADERSHIP THEORY
• Followers make attributions of heroic or
extraordinary leadership abilities when they
observe certain behaviors.
• The leader Communicates an attractive vision.
• Charismatic leader is the one who use his
personal charm to get things done. This can be an
extremely powerful way to lead others.
• The leader then communicates high performance
expectations and expresses confidence that
followers can attain them.
GROUP INFLUENCES
• Group may be defined as two or more
individuals interacting and interdependent,
who have come together to achieve
particular objectives.
DIFFERENT TYPES OF GROUPS
• Formal group
• Informal groups
• Psychological groups– extension of informal
groups
• Virtual Groups
• Interacting, Co-acting, and Counteracting
Groups
• Open and Closed Groups
• Closed groups
• Membership and Referent Groups
• In and out groups: In
FACTORS INFLUENCING GROUP
EFFECTIVENESS
• Work Team Structure Issues:
–
–
–
–
Goals & Objectives
Guidelines
Performance measures
Role specification.
• Work Team Process Issues
–
–
Managing cooperative behaviors
Managing competitive behaviors
• Diversity in Teams
–
–
Plays a large role in groups’ effectiveness.
Members contribute to team in one of four styles:
•
•
•
•
•
Contributor
Collaborator
Communicator
Challenger
Integrator
• Dissimilarity in Teams
–
–
–
Demographic dissimilarity influences absenteeism, commitment, turnover intentions, beliefs,
workgroup relationships, self-esteem, and organizational citizenship behavior.
Can have positive or negative effects on teams
Value dissimilarity negatively related to team involvement
• Structural Diversity
JOB CHALLENGE
• Job Challenge refers to the opportunity for
professionals to make fullest use of their
Skills.
JOB CHALLENGES FACED BY MANAGERS
• Unfamiliar Responsibilities
• Inherited Problems
• High Stakes
• External Pressure
• Work Across Cultures
• New Directions
• Problems with Employees
• Scope and Scale
• Influence without authority
• Work Group Diversity
COMPETITIVENESS
The degree to which a country can, under
free and fair market conditions, produce
goods and services which meet the test of
international markets, while simultaneously
maintaining and expanding the real incomes
of its people over the long-term
FACTORS INFLUENCING COMPETITIVENESS
• Domestic economy
• Internationalization
• Government
• Finance
• Infrastructure
• Management
• Science and technology
• Quality of people
MANAGERIAL STYLES
•Democratic Style
•Affliative Style
•Pacesetting Style
•Authoritative Style
•Coercive Style
•Coaching Style