UNIT IV ENVIRONMENTAL ISSUES IN MANAGERIAL EFFECTIVENESS
Organisational Processes – Organisational Climate – Leader – Group Influences – Job
Challenge – Competition – Managerial Styles.
TABLE OF CONTENTS
4.1. ENVIRONMENTAL ISSUES IN MANAGERIAL EFFECTIVENESS---------------2
4.2. ORGANIZATIONAL PROCESSES-----------------------------------------------------------3
4.3. ORGANIZATIONAL CLIMATE--------------------------------------------------------------4
4.4. APPROACHES TO LEADERSHIP-----------------------------------------------------------5
4.5. GROUP INFLUENCES-------------------------------------------------------------------------12
4.6. JOB CHALLENGE------------------------------------------------------------------------------13
4.7. COMPETITIVENESS---------------------------------------------------------------------------14
4.8. MANAGERIAL STYLES-----------------------------------------------------------------------14
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Page 1
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.
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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 has become reutilized 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 data
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 purpose”.
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
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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
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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
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
Contemporary Approaches
Transactional –
Transformational
Leaders
Charismatic
Leadership
Theory
Reddin’s Three Dimensional
Model
STOGDILL’S TRAIT FACTORS
1. Intelligence
2. Physical Features
3. Inner Motivation Drive
4. Maturity
5. Vision and Foresight
6. Acceptance of Responsibility
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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
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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 Behavior
Production Centered Behaviour
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.
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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
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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.
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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.
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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 elationship 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
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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 selfinterests 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
•
Membership and Referent Groups
•
In and out groups
FACTORS INFLUENCING GROUP EFFECTIVENESS
Work Team Structure Issues:
Goals & Objectives
Guidelines
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Performance measures
Role specification.
•
Work Team Process Issues
Managing cooperative 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
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
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
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