- •Basic principles of management
- •Figure 2-1 Management Principles and Techniques for Applying Principles
- •Principle 1: Define Objectives
- •In progressive firms, top management is responsible for setting quantifiable (measurable), attainable objectives and then directing the organization toward meeting these objectives.
- •Principle 2: Accept Responsibility
- •Principle 3: Unify Functions
- •Principle 4: Utilize Specialization
- •Principle 5: Delegate Authority
- •Individuals in the organization must be delegated authority in keeping with the responsibility assigned them so that they can be held accountable for properly performing their duties.
- •Principle 6: Report to One Supervisor
- •Principle 7: Limit Span of Control
- •Autocratic Leadership Style
- •Bureaucratic Leadership Style
- •Diplomatic Leadership Style
- •Participative Leadership Style
- •Free-Rein Leadership Style
- •Formal Organization
- •Informal Organization
- •Informal organization - those personal relationships and self-groupings of employees that do not appear on the organization chart; also known as unwritten organization.
- •Case 2-1 Developing a Problem-Solving Attitude—a7
- •Case 2-2 Developing a Problem-Solving Attitude—в
Autocratic Leadership Style
An autocratic leader, or authoritarian leader, rules with unlimited authority. This is the OM who "tells" rather than "sells" or "consults." The autocratic OM keeps the bulk of the power and influence in the decision-making process to himself or herself. Thus, the autocrat's subordinates are provided little, if any, motivation to engage in problem solving or in decision making at their levels.
When decisions must be made quickly, such as during emergencies, the "telling" style of leadership is effective and efficient. Such a style is workable when dealing with office employees who do not seek freedom of action on their jobs and who are very secure working under close supervision. On the other hand, this style of management emphasizes one-way communication; there is little, if any, feedback from the office workers. As a result, misunderstanding may occur often and result in costly mistakes and wasteful office practices.
Bureaucratic Leadership Style
The bureaucratic leader sets and follows fixed rules; a hierarchy of authority; and narrow, rigid, formal routines. The OM viewed as a bureaucrat "tells" the office workers what to do. The bases for the OM's orders are the policies, procedures, and rules of the organization rather than the force of the leader's personality, as is true of the autocratic leader.
Office workers who report to a bureaucratic OM understand that the firm's policies and procedures will be consistently interpreted for them and that the OM will be fair and impartial. However, the bureaucratic style is marked by inflexibility when exceptions to the rules must be made to meet the needs of a particular situation. Also, when situations arise that are not covered by a policy or a rule or when the rules may be ambiguous, the workers may become annoyed and frustrated as a result of not knowing what to do. Consequently, office workers may become resentful and resist later attempts by the OM to lead them.
Diplomatic Leadership Style
The diplomatic leader is skillful in helping people to solve their problems or to meet the needs of a particular situation. This manager is expert in employing tact and conciliation and rarely arouses hostility among the workers. The diplomatic OM, who prefers "selling" rather than "telling" people, manages by persuasion and individual motivation. The office workers are usually provided some freedom to react, to question, to discuss, and even to present arguments that support their views.
The diplomatic OM gains the cooperation and enthusiasm of his or her subordinates by taking time to give them explanations and reasons for particular procedures to be followed. When this style of leadership fails to sell the workers on the "why" of decisions that have been made, a diplomatic manager must resort to giving orders ("telling"). As a result, the workers may then see the diplomat's style as hypocritical and weak.
Participative Leadership Style
The participative leader openly invites the workers to join in and take part in making decisions, setting policies, and analyzing methods of operation. Some participative OMs are democratic and let their workers know in advance that the group's decision, usually arrived at by consensus or majority vote, will be binding.
When office workers are given the freedom to participate and help form a plan of action, they tend to support it and strive harder to make the plan work. The participative OM, in turn, benefits by obtaining the best information, ideas, and experiences from the subordinates. As a result, better worker attitudes are created and productivity increases. The office workers are encouraged to develop, grow, and rise in the organization; and they have a feeling of personal satisfaction and accomplishment. On the other hand, because of the time spent in meetings between the OM and the workers, participative leadership can be time-consuming; and some OMs may use this style as a means of avoiding responsibility. Further, when the workers' ideas and recommendations are consistently rejected or ignored, as a result of the OM's misuse of the participative style, a breakdown of managerial control may occur.