The Main Theories of Organizational Management and Leadership - Essay Example

Management and Leadership Table of Contents Table of Contents 2 Management 3 Leadership 5 References 8 Management The term management de s an arrangement of various functions that are carried out to accomplish a task or a work successfully. In other words, it can be defined as getting things done by others. Management can be considered as both science and art. In today’s world management combines creative, business or organisational, analytical and other skills to fabricate effective and goal oriented outcome (Indian Child, n.d.). According to the management scholar, F.W. Taylor, management can be defined as the “Art of knowing what you want to do and then seeing that it is done the best and cheepest way”. Management comprised of the following functions namely planning, organising, directing, staffing, co-ordinating, reporting and budgeting (Thenmozhi, n.d.). There are various theories and models in management. A few of them are analysed as follows: X-Y Theory The X-Y theory was first conceptualised by Douglas McGregor, an American social psychologist, in the year of 1960. It refers the statutory and simple rules of managing people. There are two theories X and Y. In X theory, the nature of the persons are lazy. Mostly they dislike work and try to avoid it therefore most of the employees are subject to negative reinforcement and threatened by it. Such persons avoid responsibility and prefer to be directed. The exactly opposite picture can be shown in Theory Y. Here, people accept and seek responsibility. To achieve the organisational objective people usually apply self control and direction. Even, they are also rewarded for their commitment (Business Ball, n.d.). Z Theory William Ouchi had developed Z theory in 1981. Basically this theory is referred to as ‘Japanese’ management style. This theory advocates the combination of theory Y along with the modern Japanese management. It indicates a large amount of freedom and trust with worker and it has been assumed that workers have a strong interest and loyalty (Business Ball, n.d.). Elton Mayo’s Hawthorn Studies A series of studies had been conducted at the Western Electronic Hawthorn Works from 1927 to 1932. Here, the professor Elton Mayo had experienced the impact of work conditions in the employees’ productivity. He had started this through examining the environmental and physical influence of the work place and then he moved towards the psychological aspects and its impact on the employee motivation. The outcome of the study exhibits that the employee productivity is fuelled by the psychological stimulus. It can be applied in the practical life also. Suppose, a management trainee has joined in an organisation and the management provide him training, separate work code etc. Thus, silently the organisation was able to make him understand his importance as they spent time and money on him. It will definitely motivate him and the effect can be measured from his productivity (Envision, n.d.). Hierarchy of Needs Theory Abrahm Maslow, in 1940 had propagated HR and Motivational theories. He identified 5 needs. Those are needs, safety, love, esteem and self-actualisation. This theory has a greater importance in corporate also. It started with basic requirements of job and end up with the higher designation. For each and every employee, these motivational theories should apply to understand their requirements and the management should reward them accordingly (Business Ball, n.d.). Two Factor Hygine & Motivation Theory This theory was proposed by Fredrick Herzberg. Both the hygiene and motivation factor should be carried together simultaneously. The employers should treat the employee as most valuable resources as they should be provided with certain opportunities, such as recognition, growth, advancement, etc. The environment, company policy, work condition, salary and security are few of the important things that should be properly available in good condition to fulfil the hygiene factor (ACCEL, 2010). Leadership The term leadership refers to the ability to influence a group for achieving the goals. The sources of the influence are basically formal. There are huge contradiction regarding the leadership and management. It can be said that a strong leadership and strong management can bring optimal effectiveness in the organisation. In the following section, the different theories can be analysed along with the practical examples. Trait Theories This theory differentiates the non-leaders from leaders through focusing on personal characteristics and qualities. Personality, socials, physical and intellectual traits has sought out in this theory. Trait view possesses a very little predictive and analytical value. It is important to mention that the latest studies indicate another trait that is called emotional intelligence. The trait theory can be exemplified with the case of CEO of American Express, Kenneth Cheneault. He was usually regarded as an energetic, articulate, intelligent and ethical person (Robbins & Judge, 2007). Behavioural Theories Failure of trait theories led the researchers to move on to another theory which proposed that leadership quality changes due to the behavioural factor. Basically this theory is based upon three models. Those are ‘Ohio State Studies’, ‘University of Michigan Studies’, and ‘The Managerial Grid’. The first theory is based upon initiating structure and consideration where the second theory compares the employee orientation with production orientation. Managerial grid is basically concerned with exhibiting the 81 leadership styles through its nine-by-nine grid. This can be analysed with a real life example. Thomas Siebel, CEO and Chairman of the Siebel Systems, focus on the initiating structure. Emphasising on the cost cutting the company was able to achieve the profitability goals (Robbins & Judge, 2007). Contingency Theories Contingency theory is also famous as the Fiedler Contingency Model, as the first comprehensive contingency model was developed by Fred Fielder. This style proposes that the effective group depended upon the proper combination between a leader’s styles of interacting with his or her subordinates. It also exhibits the degree to which the critical situation provides the influence and control to the leader. Carly Fiorina was asked to resign, by the HP board of directors as she was lacking in the leadership skill that is required to move the company ahead which can be regarded as the application of the theory (Robbins & Judge, 2007). References ACCEL, 2010. Frederick Herzberg. Human Relations Contributors. [Online] Available at: http://www.accel-team.com/human_relations/hrels_05_herzberg.html [Accessed 3 August, 2010]. Business Ball, No Date. Abraham Maslows Hierarchy of Needs motivational model. Maslow’s hierarchy of needs. [Online] Available at: http://www.businessballs.com/maslow.htm [Accessed 3 August, 2010]. Envision, No Date. Elton Mayos Hawthorne Studies. The Hawthorne Effect - Mayo Studies in Employee Motivation. [Online] Available at: http://www.envisionsoftware.com/articles/Hawthorne_Effect.html [Accessed 3 August, 2010]. Indian Child, No Date. Definition of Management. What is Management. [Online] Available at: http://www.indianchild.com/management/what-is-management.htm [Accessed 3 August, 2010]. Robbins, S. P. & Judge, T. A. Organisational Behavior. Prentice Hall India, 2007. Thenmozhi, M., No Date. Characteristics of Management. Management Concepts and Fundamentals. [Online] Available at: http://nptel.iitm.ac.in/courses/IIT-MADRAS/Management_Science_I/slides/1_1s.pdf [Accessed 3 August, 2010]. William Ouchis Theory Z. Douglas Mcgregor - Theory x y. [Online] Available at: http://www.businessballs.com/mcgregor.htm [Accessed 3 August, 2010]. Read More