MANAGEMENT ANDORGANISATIONAL BEHAVIOUR

Visit the Management and Organisational Behaviour, SeventhEdition Companion Website atwww.booksites.net/mullins to find valuable student learningmaterial including:

Multiple choice and short answer questions to help test your learning

Technology Solutions short web articles which explore further themanagerial implications of technology

Weblinks to relevant sites on the web

An online glossary to explain key terms

About the author

Laurie J. Mullins was formerly principal lecturer at The Business School, Universityof Portsmouth. Before taking early retirement, Laurie specialised in managerialand organisational behaviour, and managing people at work, and was subjectleader for the behavioural and human resource management group.

Laurie had previous experience of business, local government and universityadministration and human resource management. For a numbr of years he wasalso a member of, and an instructor in, the Territorial Army.

He has undertaken a range of consultancy work; served as a visiting selectorfor UNAIS and VSO; acted as advisor and tutor for a number of professional andeducational bodies including UNISON Education; and served as an externalexaminer for university degree and postgraduate courses, and for professionalorganisations.

Laurie has undertaken a years academic exchange in the ManagementDepartment, University of Wisconsin, USA, and a visiting fellowship at the Schoolof Management, Royal Melbourne Institute of Technology (RMIT) University,Australia, and given invited lectures in The Netherlands and South Africa. Laurie is also author of Hospitality Mangement and Organisational Behaviour.

About the contributors

Linda Hicks is a Chartered Occupational Psychologist who specialises in management development and coaching within her consultancy Zest for Change.

David Preece is Professor of Technology Management and Organisation Studies inThe Business School, University of Teesside.

MANAGEMENT ANDORGANISATIONALBEHAVIOUR

Laurie J. MullinsFormerly, Principal Lecturer

The Business School

University of Portsmouth

Seventh Edition

PPeeaarrssoonn EEdduuccaattiioonn LLiimmiitteedd

Edinburgh GateHarlow Essex CM20 2JEEngland

and Associated Companies throughout the world

Visit us on the World Wide Web at:www.pearsoned.co.uk

First published in 1985 in Great Britain under the Pitman imprintFifth edition published in 1999 by Financial Times Pitman Publishing imprintSixth edition 2002Seventh edition 2005

Laurie J Mullins 1985, 1989, 1993, 1996, 1999, 2002, 2005 Chapter 9 Linda Hicks 1993, 1996, 1999, 2002, 2005 Chapter 10 Linda Hicks 1999, 2002, 2005 Chapter 17 David Preece 1999, 2002, 2005

The right of Laurie J Mullins to be identified as author of this work has been assertedby him in accordance with the Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this publication may be reproduced, stored in a retrievalsystem, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without either the prior written permission of the publisher, or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP.

All trademarks used herein are the property of their respective owners. The use of anytrademark in this text does not vest in the author or publisher any trademark ownershiprights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners.

ISBN 0 273 68876 6

British Library Cataloguing-in-Publication DataA catalogue record for this book is available from the British Library.

Library of Congress Cataloging-in-Publication DataMullins, Laurie J.

Management and organisational behaviour / Laurie J. Mullins.--7th ed.p. cm

Includes bibliographical references and index.ISBN 027368876-6 (pbk.)1. Organizational behavior. I. Title

HD58.7.M85 2004658--dc22

2004046919

10 9 8 7 6 5 4 3 209 08 07 06 05

Typeset by 30 in Stone SerifPrinted and bound by Mateu-Cromo, Artes Graficas, Spain

The publishers policy is to use paper manufactured from sustainable forests.

To PamelaAnd for Kerrie and Tracey,and Paul

Part 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR 1

1 Introduction 32 The Nature of Organisational Behaviour 253 Approaches to Organisation and Management 65

Part 2 THE ORGANISATIONAL SETTING 111

4 The Nature of Organisations 1135 Organisational Goals, Strategy and Responsibilities 144

Part 3 THE ROLE OF THE MANAGER 187

6 The Nature of Management 1897 Managerial Behaviour and Effectiveness 2368 The Nature of Leadership 280

Part 4 THE INDIVIDUAL 333

9 Individual Differences 33510 The Nature of Learning 38911 The Process of Perception 43412 Work Motivation and Rewards 470

Part 5 GROUPS AND TEAMWORK 515

13 The Nature of Work Groups and Teams 51714 Working in Groups and Teams 554

Part 6 ORGANISATIONAL STRUCTURES 593

15 Organisation Structure and Design 59516 Patterns of Structure and Work Organisation 63317 Technology and Organisations 662

Part 7 MANAGEMENT OF HUMAN RESOURCES 697

18 Job Satisfaction and Work Performance 69919 Human Resource Management 74620 Resourcing the Organisation 795

Part 8 IMPROVING ORGANISATIONAL PERFORMANCE 829

21 Organisational Control and Power 83122 Organisation Development (Culture, Conflict and Change) 88723 Management Development and Organisational Effectiveness 941

CONTENTS IN BRIEF

OH, GREAT SPIRIT,

GRANT THAT I MAY NOT

CRITICISE MY NEIGHBOURS

UNTIL I HAVE WALKED A MILE

IN THEIR MOCCASINS.

Traditional Native-American saying

Exhibits, Management in Action, Case Studies andBusiness Press xivIn acknowledgement and appreciation xviiPublishers acknowledgements xviiiGuided tour of the book xxGuided tour of the Companion Website xxii

Part 1MANAGEMENT AND ORGANISATIONALBEHAVIOUR

1 Introduction 3About this book 4The aims of this book 4The seventh edition 6Your study of the book 16The changing nature of work organisation 17The study of management and organisational

behaviour 19The use of case studies 20

2 The Nature of OrganisationalBehaviour 25

The meaning of organisational behaviour 26Influences on behaviour in organisations 27Behavioural science a multidisciplinary approach 29The importance of people and organisational

behaviour 30Organisational metaphors 32Orientations to work and the work ethic 33Management as an integrating activity 34The psychological contract 37Changing nature of the psychological contract 39Organisational practices 40The Peter Principle 40Parkinsons Law 41The need for a cross-cultural approach 42Is organisational behaviour culture-bound? 43Models for understanding the impact of culture 44Five dimensions of culture: the contribution of

Hofstede 47Cultural diversity: the contribution of Trompenaars 49Summary: convergence or culture-specific

organisational behaviour 51Case study 2.1: Eric and Kipsy: complexities of

management and organisational behaviour 56

3 Approaches to Organisation andManagement 65

Management theory 66Developments in management and organisational

behaviour 66The classical approach 67Scientific management 69Relevance of scientific management 71Bureaucracy 74Criticisms of bureaucracy 75Evaluation of bureaucracy 76Structuralism 78The human relations approach 78Evaluation of the human relations approach 80Neo-human relations 81The systems approach 82The contingency approach 84Other approaches to the study of organisations 84The decision-making approach 85Social action 85A number of different approaches 87Postmodernism 87Relevance to management and organisational

behaviour 89Japanese management 90Towards a scientific value approach? 91Benefits to the manager 93Management in Action 3.1: Japanese management 95Case study 3.1: Helgaton Ltd: organisational theory

in practice 102

Part 2THE ORGANISATIONAL SETTING

4 The Nature of Organisations 113The context of the organisation 114The formal organisation 115Basic components of an organisation 117Private and public sector organisations 118Production and service organisations 120Types of authority and organisations 121The classification of organisations 122Prime beneficiary of the organisation 122Primary activity of the organisation 123

CONTENTS IN DETAIL

The organisation as an open system 124Interactions with the environment 126The comparative study of organisations 127Organisational sub-systems 128The analysis of work organisations 129Contingency models of organisation 131The influence of technology 132Information technology 133Managing technical change 134The informal organisation 134The organisation of the future 137Organisational goals 137

5 Organisational Goals, Strategy andResponsibilities 144

The nature of organisational goals 145The functions of goals 146Integration of goals 147Classification of organisational goals 148Alteration of goals 149Organisational ideologies and principles 150Mission statements 151Objectives and policy 152The profit objective 154Fallacy of the single objective 155The need for strategy 157The concept of synergy 158SWOT analysis 159The management of opportunities and risks 160Social responsibilities of organisations 161Codes of conduct 162Organisational stakeholders 163Values and ethics 166Corporate social responsibility 167Business ethics 168Related legislation 170An integrated approach 171Management in Action 5.1: IBM Code of Conduct 177Case study 5.1: Mergers and acquisitions: the

consequences of expansion at Square Deal plc 182Case study 5.2: Welcome to the party: home selling

with Top-to-Toe 183

Part 3THE ROLE OF THE MANAGER

6 The Nature of Management 189The meaning of management 190Management and administration 194The process of management 195

Principles of management 197Management as a social process 199The tasks and contribution of a manager 199Essential nature of managerial work 200The efforts of other people 202Management in service industries 203Management in private enterprise and public

sector organisations 203The work of a manager 206Managerial roles 207Behaviour pattern of general managers 209Determining what real managers do 210Patterns of managerial work and behaviour 210The attributes and qualities of a manager 211Managers of the future? 214Management in Action 6.1: The roles of the

manager and the Individual Management Model 217Case study 6.1: What is management? Defining

the managers role 227

7 Managerial Behaviour and Effectiveness 236

Managerial style and behaviour 237Managers attitude towards people 238Japanese Theory Z environment 240The Managerial/Leadership Grid 241Framework for patterns of behaviour 243Management systems 245System 4 management 246Management by Objectives (MBO) 249Evaluation of MBO 250Managing people 251Basic managerial philosophies 252Choice of managerial style 256Managerial effectiveness 259Measures of effectiveness 2613-D model of managerial behaviour 261General criteria of managerial effectiveness 264The management of time 265Case example: Chemical company 274Case study 7.1: Bringing management to book:

how to manage a library 275Case study 7.2: As safe as houses: branch

management in a building society 276

8 The Nature of Leadership 280The meaning of leadership 281The importance of leadership 282Leadership and management 283Approaches to leadership 285The qualities or traits approach 287The functional (or group) approach 287Leadership as a behavioural category 289

viii CONTENTS IN DETAIL

Styles of leadership 291Continuum of leadership behaviour 292The situational approach 294Contingency theories of leadership 295Fiedlers contingency model 295Vroom and Yetton contingency model 297The Vroom and Jago revised decision model 298Pathgoal theory 299Readiness of the followers or group 300Transformational leadership 301Inspirational leadership 304Power and leadership influence 306The leadership relationship 307No one best form of leadership 309National cultural dimensions of leadership 310Effectiveness of leadership styles 312Variables affecting leadership effectiveness 313Leadership development 314Leaders of the future 315Management in Action 8.1: Autoglass: Leadership

success factors 317Management in Action 8.2: IBM Leadership

Development Centre (LDC) 318Case study 8.1: The paradox of Pim Fortuyn: a study

in charismatic leadership 327

PART 4THE INDIVIDUAL

9 Individual Differences 335By Linda Hicks

The changing nature and scope of managingindividuals at work 336

Personality 339Nomothetic and idiographic approaches 342Theoretical approaches: nomothetic 343Theoretical approaches: idiographic 346Other theoretical approaches 347Cognitive theory: Kellys personal construct theory 350Applications within the work organisation 352Stress and the individual 354Ability 355Testing 360Attitudes 362Gender and organisations 366Understanding womens position and status 368Economic theories 369Psychological sex differences 369The socialisation process 370Orientations and motivations towards work 370Working practices 371

Career development 372Leadership, management and women 376Positive approaches 378

10 The Nature of Learning 389By Linda Hicks

The meaning and nature of learning 390Organisations and the management of learning 394Knowledge management 395The learning organisation 399How do people learn? 402Behaviourism 403The outcomes of learning 405Operant conditioning 405Social learning 408Limitations of the behaviourist school 408Cognitive theories 409Learning styles 413Complex models of learning 414Creativity 415Facilitating learning 417Learning theory applied to study skills 420Applications of learning theory to organisations 420Case study 10.1: Springboard to success: staff

development in practice 425Case study 10.2: Will the mail get through:

managing change at the Royal Mail 427

11 The Process of Perception 434By Laurie Mullins and Linda Hicks

The perceptual process 435Selectivity in attention and perception 435Meaning to the individual 437Internal factors 437External factors 440Organisation and arrangement of stimuli 441Perceptual illusions 442Perceiving other people 445Transactional analysis 448Selection and attention 450Organisation and judgement 452The importance of body language 453Attribution theory 455Perceptual distortions and errors 456Stereotyping 457The halo effect 458Perceptual defence 459Projection 459Illustrative example: perception of women 459

12 Work Motivation and Rewards 470The meaning of motivation 471Needs and expectations at work 472Motivation and organisational performance 474

CONTENTS IN DETAIL ix

Frustration-induced behaviour 475Money as a motivator 477Theories of motivation 478Content theories of motivation 480Maslows hierarchy of needs theory 478Alderfers modified need hierarchy model 484Herzbergs two-factor theory 485McClellands achievement motivation theory 487Process theories of motivation 489Vrooms expectancy theory 490The Porter and Lawler expectancy model 492Lawlers revised expectancy model 494Implications for managers of expectancy theories 495Equity theory of motivation 496Goal theory 498Attribution theory 499Relevance of theories of motivation 499Cross-cultural dimensions of motivation 500The motivation of knowledge workers 500Management in Action 12.1: Developing reward

strategies to motivate and compensate knowledge workers 504

Case study 12.1: Staff motivation: not so much a motivational pyramid, more a slippery slope 510

PART 5GROUPS AND TEAMWORK

13 The Nature of Work Groupsand Teams 517

The meaning and importance of groups and teams 518The difference between groups and teams 518Group values and norms 520The importance of teamwork 521Formal and informal groups 525Reasons for formation of groups or teams 527Group cohesiveness and performance 528Membership 529Work environment 530Organisational factors 531Group development and maturity 531Potential disadvantages of strong, cohesive groups 532Characteristics of an effective work group 533The effects of technology on work groups 534Role relationships 536Role conflict 538Role stress 540Management in Action 13.1: Teamwork in a small

company 543Management in Action 13.2: Remote control a

case study 545Case study 13.1: Floating on air: the importance

of teamwork at Hovertec 550

14 Working in Groups and Teams 554Interactions among members 555Belbins team-roles 556Patterns of communication 559Analysis of individual behaviour 562Sociometry 562Interaction analysis 563Frameworks of behavioural analysis 565An essential feature of work organisations 566Individual compared with group or team performance 569The risky-shift phenomenon 569Groupthink 570Brainstorming 570Group dynamics 573T-groups 574Effective teamworking 575Management in Action 14.1: Profiling of managers for

leadership development in a cross-section of SouthAfrican organisations 579

Management in Action 14.2: Barriers come down to build up team spirit 585

PART 6ORGANISATIONAL STRUCTURES

15 Organisation Structure and Design 595The meaning and nature of organisation structure 596The importance of good structure 597Levels of organisation 598The importance of the hierarchy 600The design of organisation structure 601Clarification of objectives 603Task and element functions 604The division of work 605Centralisation and decentralisation 608Principles of organisation 609Span of control 610The chain of command 611Flatter organisation structures 612Formal organisational relationships 613Line and staff organisation 615The inverted organisation 617Project teams and matrix organisation 617Effects of a deficient organisation structure 619Organisation charts 621Structure and organisational behaviour 622Case study 15.1: A small cog in a big wheel:

company restructuring at Zeton 629Case study 15.2: Loud and clear: leadership in

telecommunications 630

x CONTENTS IN DETAIL

16 Patterns of Structure and WorkOrganisation 633

Variables influencing organisation structure 634The contingency approach 634Size of organisation 635Technology 638The Woodward study 638Major dimensions of technology: the work of Perrow 640Environment 641The Burns and Stalker study 642Mixed forms of organisation structure 643The Lawrence and Lorsch study 644Evaluation of the contingency approach 646Contribution of contingency theory 648Culture as a contingent factor 649Alternative forms of structure 649The demand for flexibility 651Telecommuting 652The shamrock organisation 652The nature of delegation and empowerment 654Case study 16.1: Bureaucracy could seriously damage

your health: staff empowerment at City Hospital 658Case study 16.2: Could I have an estimate?

Organisational structure at Fabrique Dcor 658

17 Technology and OrganisationsBy David Preece 662

Theorising technology 663Using a socio-technical ensemble perspective:

the case of Butler Co. 669Technological change and organisations 672Adopting and introducing new technology 674Case studies in technological/organisational

change 679Case study 17.1: A thirst for technology: new systems

at the bars of Tawny Taverns 679Case study 17.2: Web page not found: internal

communications at Redstart Computers 682Organisational contexts, social and political

processes and technological change 685ICTs, networks, organisations and society 686

PART 7MANAGEMENT OF HUMAN RESOURCES

18 Job Satisfaction and WorkPerformance 699

The meaning and nature of job satisfaction 700Dimensions of job satisfaction 700Framework of study 703Information communications technology 703

Stress at work 706Role relationships and conflict 708Levels of stress 709Coping with stress 710Work organisation and job design 713Individual job redesign 714A comprehensive model of job enrichment 715Broader organisational approaches to improved

job design 717The work/life balance 720Employee involvement 722Empowerment and job satisfaction 723Self-managed work groups 723Flexible working arrangements 724Quality circles 727Management style and culture 728Contextual factors in job design 728The happy/productive worker 729Management in Action 18.1: Job satisfaction: the

fit between expectations and experiences 732Management in Action 18.2: An elusive but

expensive concept: stress 733Management in Action 18.3: Work-Life Balance

case studies 735Management in Action 18.4: Beyond the

nine-to-five 736Case study 18.1: The wide open spaces: linking

job satisfaction and work performance 741Case study 18.2: The changing role of supervisors:

demonstrating the effect of communication and training on morale 742

Case study 18.3: Flying like the wind: motivation, job design and culture at Falcon Car Company 743

19 Human Resource Management 746The nature of human resource management (HRM) 747HRM policies, activities and functions 749Organisation of the HRM function 751HRM: a shared responsibility 752The importance of HRM 755Training and development 756The management of training 758Investors in People 761Performance appraisal 762Questions to be addressed 764360 feedback and upward appraisal 765Establishing the appraisal system 766Methods of appraisal 767Potential problem areas 769Employment relations 771Unitary and pluralistic perspectives 773Regulating the employment contract 774Responsibility for employment relations 777International dimensions of HRM 778Industrial democracy in European countries 779

CONTENTS IN DETAIL xi

The German system 779Effectiveness of the HRM function 780Management in Action 19.1: The Investors in People

Standard 783Management in Action 19.2: Performance

management at Autoglass Limited 786Case study 19.1: Beer and sandwiches: personnel

management at London Taverns 790Case study 19.2: Nothing succeeds like success:

accelerating performance at Sisson Systems 791

20 Resourcing the Organisation 795The concern of all managers 796Human resource planning 796The value of human resource planning 798Recruitment and selection of staff 800Job analysis 802Person specifications 804Difficulties and distastes of the job 804The importance of job analysis 806Attracting suitable applicants 806The selection process 808Selection tests and questionnaires 810Group exercises 810The selection interview 812Interviewing style 813Competency-based approach to recruitment and

selection 814The selection decision 815Induction and follow-up 816Costs of the selection process 817Effectiveness of the recruitment and selection

process 817Management in Action 20.1: Marks & Spencer

PLCs graduate selection process 821Case study 20.1: Please enter your password:

effective resource management at WessexComputers 825

Case study 20.2: Inky fingers: HRM failure atSumprint Ltd 826

PART 8IMPROVING ORGANISATIONALPERFORMANCE

21 Organisational Control and Power 831The meaning of control 832Assumptions of organisation and management 834Elements of an organisational control system 835Forms of control 837Classification of control systems 838Strategies of control in organisations 840

Characteristics of an effective control system 842Power and management control 843Perspectives of organisational power 845Pluralistic approaches to power 846The balance between order and flexibility 848Delegation and empowerment 849The managersubordinate relationship 850Benefits of delegation 852Reasons for lack of delegation 853A systematic approach to delegation 854The art of delegation 857The concept of empowerment 859Does empowerment deliver? 863Behavioural factors in control systems 864Overcoming resistance to management control 865Financial and accounting systems of control 867Management in Action 21.1: Empowerment 873Case study 21.1: The enthusiastic delegator:

the consequences of promoting beyond ability? 880Case study 21.2: Alpha to Omega: the effects

of financial management on companyperformance 883

22 Organisation Development(Culture, Conflict and Change) 887

The meaning of organisation development 888Topics associated with OD 888Organisational culture 891Types of organisational culture 892Influences on the development of culture 894The cultural web 895The importance of culture 896Organisational climate 899Employee commitment 901Organisational conflict 903Contrasting views of conflict 904The sources of conflict 906Strategies for managing conflict 908The nature of organisational change 909Planned organisational change 910Resistance to change 913The management of organisational change 915Human and social factors of change 916Responsibilities of top management 920Management in Action 22.1: Organisational culture,

change and IT in an SME 923Management in Action 22.2: Siemens Nixdorfs

new dynamism 924Case study 22.1: Its tough at the top: managing

conflict in the Wakewood organisation 933Case study 22.2: Getting political: management

in local government 934Case study 22.3: A matter of life or death: managing

knowledge at an NHS Trust 935

xii CONTENTS IN DETAIL

23 Management Development andOrganisational Effectiveness 941

The importance of effective management 942The meaning and nature of management

development 942An integrated model of management development 944Management development process 949Continuing professional development (CPD) 953Management education, training and development 954The Management Charter Initiative (MCI) 955Leadership and Management Model 956The nature of organisational effectiveness 959The Peters and Waterman study 960Hellers study of European excellence 961The Goldsmith and Clutterbuck study 962The learning organisation 962Total Quality Management (TQM) 964Business process re-engineering (BPR) 968Building Tomorrows Company 971The EFQM excellence model 971Assessing organisational performance 975Organisation audit 976

Benchmarking 976Performance indicators in the public sector 977Gap analysis 977A range of different criteria 977The twenty-first century organisation and people 980Management in Action 23.1: Extracts from Abbey

Performance Development Programme 982Management in Action 23.2: A cure for growing

pains Costa Coffee 985Management in Action23.3: Components of the

Management Standards 987Management in Action 23.4: Building organisational

competence 988Case study 23.1: Chips with everything: managing

cultural change at Eurasia Electronics 997Case study 23.2: Holding the front page: expansion

at Rudmore Press 997

Conclusion 1003Business Press 1005Glossary 1051Index 1065

CONTENTS IN DETAIL xiii

Companion Website resources

Visit the Companion Website at www.booksites.net/mullins

For students: Multiple choice and short answer questions to help test your learning Technology Solutions short web articles which explore further the managerial

implications of technology Weblinks to relevant sites on the web An online glossary to explain key terms

For lecturers: Complete, downloadable Instructors Manual which includes:

Teaching tips Extra cases Solutions/examples to discussion and other questions

Powerpoint slides that can be downloaded and used as OHTs Testbank of question material

Also: This site has a syllabus manager, search functions, and email results functions.

Note: A printed version of the Instructors Manual is also available free to adoptersof Management and Organisational Behaviour. Please contact your local salesrepresentative whose details can be located on our website www.pearsoned.co.uk

Exhibits

3.1 NHS pays 30.96 just to sharpen pencils 763.2 Tools that do the business: management theories 915.1 Business ethics: whats in it for you? 1716.1 The infant school headteacher as a manager 1917.1 Its a people thing 2588.1 Developing leadership in the NHS of the 21st century 3058.2 First class coach 3129.1 Why use psychological tests? 36210.1 Learning new skills: the importance of feedback 41011.1 Hospitals set to play it by ethnic book 45411.2 Judy Owen wins battle against Professional Golfers Association to 460

wear trousers13.1 Teamworks own goal 52414.1 Management: brainstorm in a rainstorm 57318.1 If you want people to do a good job, give them a good job to do 71918.2 Have a life and keep your job 72521.1 Empowerment and the custody officer 86123.1 Developing managers: applying the theory in practice 95023.2 Management succession: developing leadership at 3M 95223.3 Quality counts: TQM in an NHS trust 968

Management in Action

3.1 Japanese management 955.1 IBM Code of Conduct 1776.1 The roles of the manager and the Individual Management Model 2178.1 Autoglass: Leadership success factors 3178.2 IBM Leadership Development Centre (LDC) 31812.1 Developing reward strategies to motivate and compensate knowledge

workers 50413.1 Teamwork in a small company 54313.2 Remote control a case study 54514.1 Profiling of managers for leadership development in a cross-section of 579

South African organisations14.2 Barriers come down to build up team spirit 58518.1 Job satisfaction: the fit between expectations and experiences 73218.2 An elusive but expensive concept: stress 73318.3 Work-Life Balance case studies 73518.4 Beyond the nine-to-five 73619.1 The Investors in People Standard 78319.2 Performance management at Autoglass Limited 78620.1 Marks & Spencer PLCs graduate selection process 82121.1 Empowerment 87322.1 Organisational culture, change and IT in an SME 92322.2 Siemens Nixdorfs new dynamism 924

EXHIBITS, MANAGEMENT IN ACTION, CASE STUDIESAND BUSINESS PRESS

23.1 Extracts from Abbey Performance Development Programme 98223.2 A cure for growing pains Costa Coffee 98523.3 Components of the Management Standards 98723.4 Building organisational competence 988

Case studies

2.1 Eric and Kipsy: complexities of management and organisational behaviour 563.1 Helgaton Ltd: organisational theory in practice 1025.1 Mergers and acquisitions: the consequences of expansion at Square Deal plc 1825.2 Welcome to the party: home selling with Top-to-Toe 1836.1 What is management? Defining the managers role 227

Chemical company 2747.1 Bringing management to book: how to manage a library 2757.2 As safe as houses: branch management in a building society 2768.1 The paradox of Pim Fortuyn: a study in charismatic leadership 32710.1 Springboard to success: staff development in practice 42510.2 Will the mail get through: managing change at the Royal Mail 42712.1 Staff motivation: not so much a pyramid, more a slippery slope 51013.1 Floating on air: the importance of teamwork at Hovertec 55015.1 A small cog in a big wheel: company restructuring at Zeton 62915.2 Loud and clear: leadership in telecommuncations 63016.1 Bureaucracy could seriously damage your health: staff empowerment at City Hospital 65816.2 Could I have an estimate? Organisational structure at Fabrique Dcor 65817.1 A thirst for technology: new systems at the bars of Tawny Taverns 67917.2 Web page not found: internal communications at Redstart Computers 68218.1 The wide open spaces: linking job satisfaction and work performance 74118.2 The changing role of supervisors: demonstrating the effect of communication

and training on morale 74218.3 Flying like the wind: motivation, job design and culture at Falcon Car Company 74319.1 Beer and sandwiches: personnel management at London Taverns 79019.2 Nothing succeeds like success: accelerating performance at Sisson Systems 79120.1 Please enter your password: effective resource management at Wessex Computers 82520.2 Inky fingers: HRM failure at Sumprint Ltd 82621.1 The enthusiastic delegator: the consequences of promoting beyond ability? 88021.2 Alpha to Omega: the effects of financial management on company performance 88322.1 Its tough at the top: managing conflict in the Wakewood organisation 93322.2 Getting political: management in local government 93422.3 A matter of life or death: managing knowledge at an NHS trust 93523.1 Chips with everything: managing cultural change at Eurasia Electronics 99723.2 Holding the front page: expansion at Rudmore Press 997

Business Press

1 A safe way to hold on to staff 10062 Business schools share Enron blame 10073 Recruitment: facing the next brain drain 10084 Companies pressed to adopt higher standards 10105 Forget how the crow flies 10126 Public sector: go home and prepare for e-government 10177 Employees as investors 10198 Leader of the band who likes to run the show 10209 Great leaders: pioneer and a shrewd strategist 1022

LIST OF FIGURES xv

10 Endangered species 102311 Mentoring moves into a leading role 102512 Driving your employees up the wall 102713 A focus on workers individual needs 102814 Advantages of promoting a boutique mindset 102915 Avoiding the madness of groupthink 103016 End to departmentalism a vision of things to come 103117 A long-distance relationship 103218 Network protection is a key stroke 103419 Relentless rise of the pleasure seekers 103520 EU & US: Where are the best workplaces? 103721 Marrying performance with reward 103822 Human capital: is it personnel with yet more make-up? 104023 New learning models are under scrutiny 104124 Patterns can show if you are up to the job 104325 Massive US effort to set up control systems 104426 Asda: the listening store 104527 Organisations, too, can be put on the couch 104728 Swiss group at top of learning tree 104829 The rise and rise of the corporate learning officer 1049

xvi LIST OF FIGURES

A warm and special tribute is paid to my wife Pamela, children and family for theircontinuing support and encouragement for this seventh edition.

Particular acknowledgements and thanks are due for the contributions from myfriends and colleagues Linda Hicks, David Preece and Sara Lamond.

Thanks and appreciation also to Derek Adam-Smith, Rajeev Bali, Martin Brunner,Richard Christy, Ray French, Karen Meudell, Anne Riches, Amanda Stevens, LynnThomson, Cheryl Walmsley.

I gratefully acknowledge the help and support received from:

Managers who kindly provided information from their own organisations and gavepermission to reproduce material in the book

Aileen Cowan, Assistant Director, The Institute of Chartered Secretaries andAdministrators

Liz Harris, Marketing Communications Manager, The Institute of AdministrativeManagement

Rebecca Hoar, Section Editor, Management TodaySue Mann, Editor, Professional Manager.

A special debt of appreciation is due to members of the team at Pearson Educationincluding Matthew Walker, Colin McDougall, Karen McLaren, Janey Webb, Colin Reed,Jacqueline Senior and Simon Lake for their invaluable professionalism and guidance.Thank you all for a pleasant and rewarding partnership.

I wish to acknowledge and thank a number of people who may be unaware howmuch their friendship, interest and support has in a variety of ways helped in the com-pletion of this seventh edition, including: Stephen Darvill; Philip Voller; KateBrackenbury; Valerie and Peter Hallam; Di and Mike Blyth; Julie and John Bradley;Jenny and Tony Hart; Vilma and Will Hemsley; Lynn and Wayne Miller; Christine andDavid Paterson; Ann Ward.

Reviewers

Special thanks are due to the following reviewers, approached by the publishers, fortheir valued insightful and constructive comments that have helped shape the con-tents of this present edition:

Ann Norton, , UKBrian Stone, Manchester Metropolitan University, UKKim Parker, University of Kent, UKBob Smale, Brighton University, UKAlasdair Maclean, University of Abertay, UKPeter Falconer, Glasgow Caledonian University, UKHugo Misselhorn, Management & Organisation Development Consulting, South AfricaMarijek Dielman, Hotel Management School, Maastricht, The NetherlandsDavid Wilson, Wethouder Koniglaan, The Netherlands.

Laurie J Mullins

IN ACKNOWLEDGEMENT AND APPRECIATION

Chapter 1 Introductory assignment is reprinted with per-mission from Von Oech, R., A Whack On The Side Of TheHead, Warner Books Inc. (1998), p. 20. Copyright 1983,1990, 1998 by Roger Von Oech.

Chapter 2 Assignment 1 is reprinted with permissionfrom Rowe, C., The Management Matrix: The Psychology ofInteraction, Alfred Waller Ltd (1992), p. 1, with permissionfrom Patricia Rowe.

Personal awareness and skills exercise So Whats YourWork Ethic? is reprinted with permission from ProfessionalManager, published by the Chartered ManagementInstitute, May 2003, p. 38, and Walmsley, C. J., Your FutureLooks Bright, Preston Beach (2002), p. 98.

Case study 2.1 Eric and Kipsy is reprinted with permissionfrom Porter, L. W., Lawler, E. E. and Hackman, J. R., Behaviorin Organizations, McGraw-Hill, New York (1975), pp. 314.

Chapter 3 Assignment 1 is reprinted with permissionfrom DuBrin, A. J., Human Relations: A Job-OrientedApproach, Reston Publishing/Prentice Hall/PearsonEducation Inc. (1978), pp. 2967.

Case study 3.1 Applications of Organisation Theory inHelgaton Ltd, is reprinted with permission from Mullins,L. and White, I., in Adam-Smith, D. and Peacock, A. (eds),Cases in Organisational Behaviour, Pearson Education(1994), pp. 1929.

Chapter 4 Assignment Our Organizational Society: YourAssociation with Organizations is reprinted with permis-sion from Kast, F. E. and Rosenzweig, J. E., ExperientialExercises and Cases in Management, McGraw-Hill, New York(1976), pp. 1315.

Chapter 5 Personal awareness and skills exerciseAssessing your Work Values is reprinted with permissionfrom Misselhorn, A., The Head and Heart of Management,Management and Organization Development Consultants(SA) (2003), p. 36.

Case study 5.1 Square Deal plc is reprinted with permis-sion from the Institute of Administrative Management,Diploma in Administrative Management ExaminationPaper, Summer 1983.

Case study 5.2 Top to Toe is reprinted with permissionfrom the Chartered Institute of Secretaries andAdministrators, Management Principles ExaminationPaper, June 2003.

Chapter 6 Assignment 2 Have YOU Got What it Takes tobe a CEO? is reprinted with permission from Gwyther, M.,Management Today, November 2001, pp. 569.

Case study 6.1 What Is Management? from Doswell, R.and Nailon, P., Case Studies in Hotel Management, thirdedition, Barrie & Jenkins (1976).

Chapter 7 Assignment 1 Principle of SupportiveRelationships Questionnaire is reprinted with permissionfrom Likert, R., The Human Organization Its Managementand Value, McGraw-Hill, New York (1976), pp. 489.

Personal awareness and skills exercise Your ManagementStyle is reprinted with permission from Osland, J. S., Kolb,D. A. and Rubin, I. M., Organizational Behavior: AnExperimental Approach, seventh edition, Prentice Hall(2001), pp. 245.

Case study 7.1 Library Management is reprinted with per-mission from the Institute of Chartered Secretaries andAdministrators, Management Principles Pilot Paper,Administrator, December 1993. (Administrator is now pub-lished under the title Chartered Secretary.)

Chapter 8 Assignment 1 Least Preferred Co-worker (LPC)Scale is reprinted from A Theory of Leadership Effectiveness,McGraw-Hill (1976), p. 41, with the permission of theauthor, Professor F. E. Fiedler, University of Washington.

Assignment 2 T-P Leadership Questionnaire: AnAssessment of Style by Sergiovanni, T., Metzcus R. andBurden, L. adapted from their article Leadership BehaviorDescription Questionnaire, in the American EducationalResearch Journal 6, 1969, is reprinted by permission of thepublisher, the American Educational Research Association.

Assignment 4 Your Leadership Style is reprinted with per-mission from Schermerhorn Jr, J. R., Hunt, J. G. and Osborn,R. N., Managing Organizational Behavior, fourth edition, usedby permission of John Wiley & Sons Inc. (1991), p. 484.

Case study 8.1 The Paradox of Pim Fortuyn: A Study inCharismatic Leadership. I am grateful to my colleagueKaren Meudell for providing this case study.

Chapter 10 Case study 10.2 Royal Mail: Making your lifeeasier by helping you do a better job. Thanks to YasminAhmed and Royal Mail Group plc.

Chapter 11 Personal awareness and skills exerciseInferenceobservation exercise is reprinted with permis-sion from Haney, W. V., Communications and InterpersonalRelations: Text and Cases, sixth edition, Irwin, Illinois(1992), p. 213.

Chapter 12 Personal awareness and skills exercise con-tributed by Sheila Ritchie of Elm Training and derivedfrom the full 12-factor Motivation to Work Profile. It isreprinted with permission.

Case study 12.1 Not so Much a Motivational Pyramid,More a Slippery Slope. I am grateful to Linda Fleming forproviding this case.

Chapter 13 The copyright of case study 13.1 Hovertecplc rests with my colleague Tom McEwan, and is reprintedwith permission.

PUBLISHERS ACKNOWLEDGEMENTS

Chapter 14 Personal awareness and skills exercise isreprinted with permission from Woodcock, M., 50Activities for Teambuilding, Gower, Aldershot (1988), withpermission from Ashgate Publishing Limited.

Chapter 15 Assignment 2 is reprinted with permissionfrom the Institute of Chartered Secretaries andAdministrators, Management Principles Examination Paper,June 1999.

Case study 15.1 Zeton Ltd is reprinted with permissionfrom Administrator, The Institute of Chartered Secretariesand Administrators, April 1996, p. 36. (Administrator isnow published under the title Chartered Secretary.)

Case study 15.2 Direct Telecommunications PLC (DT) isreprinted with permission from the Institute of CharteredSecretaries and Administrators, Organisation and theHuman Resource Examination Paper, May 2002.

Chapter 16 Case study 16.1 The City Hospital:Bureaucracy and Empowerment is reprinted with permis-sion from the Institute of Chartered Secretaries andAdministrators, Organisation and the Human ResourceExamination Paper, November 2002.

Case study 16.2 Fabrique Dcor is reprinted with permis-sion from the Institute of Administrative Management,Advanced Diploma Examination Paper, December 2000.

Chapter 18 Case study 18.1 The Wide Open Spaces fromChilver, J., People, Communication and Organisation,Pergamon Press (1984), pp. 11819.

Case study 18.2 Managing Supervisors is reprinted withpermission from the Institute of Chartered Secretaries andAdministrators, Management: Principles and PolicyExamination Paper, June 1985.

Case study 18.3 The Falcon Car Company is reprintedwith permission from the Institute of Chartered Secretariesand Administrators, Organisation and the HumanResource Examination Paper, June 2003.

Chapter 19 Case study 19.1 London Taverns Ltd hasbeen prepared jointly with, and from original material sup-plied by, my colleague Karen Meudell.

Case study 19.2 Accelerating the performance momentumat Sisson Systems is reprinted with permission from theInstitute of Chartered Secretaries and Administrators,Organisation and the Human Resource Examination Paper,June 1999.

Chapter 20 Case study 20.1 Wessex Computers isreprinted with permission from the Institute ofAdministrative Management, Certificate in AdministrativeManagement Examination Paper, Summer 1983.

Case study 20.2 Sumprint Ltd is reprinted with permis-sion from the Institute of Administrative Management,Case Study Examination Paper, June 2002.

Chapter 21 The Organisational Politics Questionnaire isreprinted with permission from DuBrin, A. J., HumanRelations: A Job-Oriented Approach, fifth edition, PrenticeHall/Pearson Education Inc. (1992), pp. 3067.

Case study 21.2 The Omega organisation is reprinted withpermission of the Institute of Chartered Secretaries andAdministrators, Management: Principles and PolicyExamination Paper, June 1987.

Chapter 22 Assignment Rate Your Readiness to Changeis reprinted with permission from Stewart, T. A., Fortune, 7February 1994, pp. 634, Time Inc. All rights reserved.

Case study 22.1 The Wakewood organisation is reprintedwith permission from the Institute of Chartered Secretariesand Administrators, Management: Principles and PolicyExamination Paper, December 1986.

Case study 22.2 Gremby County Council is reprinted withpermission from Bowman, C. and Jarrett, M. G., Managementin Practice, third edition, Butterworth-Heinemann (1996),pp. 20911, with permission from Elsevier Ltd.

Case study 22.3 Managing Knowledge at an NHS Trust. Iam grateful to Rajeev K. Bali and Ashish N. Dwivedi forproviding this case.

Chapter 23 Assignment 2 Assessing your Organisation isreprinted with permission from BBC, Building TomorrowsCompany Supporting Notes and the Centre for TomorrowsCompany and William Tate, 1999.

Personal awareness and skills exercise is adapted frommaterial prepared by John Bourn for a UNISON distancelearning course and is used with permission of theEducation Officer.

Case study 23.1 Eurasia Electronics is reprinted with per-mission from the Institute of Chartered Secretaries andAdministrators, Professional Administration ExaminationPaper, December 1999.

Case study 23.2 Rudmore Press Limited. This case wasprepared jointly with, and from original material providedby, my colleague Karen Meudell.

DOGBERT character drawings copyright 1991 UnitedFeature Syndicate, Inc.

Please note: we are all influenced by the thoughts andideas of other people that tend to drift into the sub-conscious and are not always distinguished clearly fromones own. I have attempted to give references for sourcesof work by other writers but apologise to any concerned ifacknowledgement has inadvertently not been recorded.Should there by any queries, errors or omissions pleasecontact the publisher.

xx PART 1 PART TITLE

GUIDED TOUR OF THE BOOK

In the twenty-first century, leaders must create

an atmosphere in which people believe in

strategy, believe in management decisions, and

believe in their work. Once people believe in

management decisions, there is an excitement

within an organization. Such an atmosphere

makes an organization prosper. Successful

leaders create this sort of environment both

inside and outside the organization.

Subir ChowdhuryManagement 21C, Financial Times Prentice Hall (2000)

THE NATURE OF LEADERSHIP

An essential part of management is co-ordinating

the activities of people and guiding their efforts

towards the goals and objectives of the

organisation. This involves the process of

leadership and the choice of an appropriate form

of action and behaviour. Leadership is a central

feature of organisational performance. The

manager must understand the nature of

leadership influence and factors which determine

relationships with other people, and the

effectiveness of the leadership relationship.

LEARNING OUTCOMES

After completing this chapter you should be able to:

explain the meaning and importance of leadership inwork organisations;

contrast patterns of managerial leadership and mainapproaches to and studies of leadership;

detail the nature of managerial leadership and the exercise of leadership power and influence;

examine leadership as an aspect of behaviour, and different styles of leadership;

assess contingency theories of leadership andsituational factors which determine the characteristics ofleadership;

evaluate the nature and main components oftransformational leadership and inspirational leadership;

review the variables which determine effective managerial leadership and development.

8

Photo: Rajesh Jantilal/AFP/Getty Images

sensori-motor period: birth to 2 years; pre-operational thought: 2 years to 7 years; concrete operations: 7 years to 11 years; formal operations: 11 years to 15 years.

Piagets theory offers a tight coherent perspective of the maturation of intellectualthought and development. His studies introduced the notion of the cyclical nature oflearning and the ways in which children and adults adjust to and accommodate totheir environment.

For many cognitive theorists learning is viewed as a sequence, a sequence whichprocesses information in three distinct stages:

an active perception stage which gives attention to stimuli from the environment; a second mentally active stage which makes sense of the information; finally, a restructuring and storage phase.

Although it is beyond the scope of this book to consider the relationship betweenthinking and learning some researchers have shed insight on the mental constructs thatmay form. Glaser65 for instance has described these as scaffolds. This metaphor suggests

410 PART 4 THE INDIVIDUAL

Yoga is one of the six systems of Indian philosophy. Thereare a number of different interpretations of yoga and one ofthese is taught by Yogacharya B.K.S Iyengar.64

Learning a physical skill such as Iyengar yoga privides agood illustration of

the continual cycle of learning; the importance of stages in learning; the significance of information and feedback; the importance of support structures both physical,

social and mental.

The yoga poses are challenging and require the completeinvolvement of the senses and total concentration of themind. Otherwise a fall to the floor is likely! The teacher pro-vides clear information about the positioning of the bodyand the class tries to assimilate this information and imitatethe teacher. Initally it is hard to connect to muscles thathave been lying dormant for some considerable time!

The final pose is reached after a series of sub poseshave been practised. Each sub pose is gradually devel-oped and becomes more complex. At each stage studentshave to remember what it felt like in the previous subpose to be sure that they are building on and pushingthemselves into a more challenging posture. Learning theposes therefore requires active perception and attention tothe teacher as well as attention to internal feedback aboutthe positioning of the body.

Striving for excellence and gaining the benefits fromeach posture is the goal of Iyengar yoga for all students.Therefore no matter the physical limitations of the body or

the inflexibility of the limbs all students are able to achievemaximum gain from each posture with the help of physicalsupports. Perhaps a belt to support the legs, perhaps achair to support the back, Each student develops at theirown pace, and with their own props. A teacher will alsoprovide information about whether a students postureneeds modifying; perhaps a brick under the hand will getthe posture closer to perfection. Creativity will be used inidentifying the particular needs of certain students. A learn-ing environment is created in which the group supportsindividuals, information at critical times is provided, individ-uals are totally engaged in their pursuit of perfection andthe teacher encourages, supports and leads by example.Reprinted with permission from Judith Jones and Carol Batterson, IyengarYoga Teacher, Hampshire

Learning new skills: the importance of feedback

EXHIBIT 10.1

Photo: Jose Luis Pelaez, Inc./Corbis

While the importance and responsibility of management is still widely recognisedthere is a need for new managers, and new methods for a changed environment andnature of work organisations. Europes new breed of managers need to focus attentionon key strategies including the importance of values and behaviours. Important issuesfor the future include managing change; leadership and motivation of staff; managingdiversity; the development of human resources; and demands for alternative organisa-tional practices.

The jobs of individual managers differ widely. Empirical studies have concentratedon the diversity of management and differences in the nature of managerial work.These studies have drawn attention to such features as: managerial roles; agenda-setting and network-building; what real managers do; and demands, constraints andchoices in a managerial job.

CHAPTER 6 THE NATURE OF MANAGEMENT 217

MANAGEMENT IN ACTION 6.1

The roles of the manager and the IndividualManagement Model

THE INDIVIDUAL MANAGEMENT MODEL (IMM)

IBM is a large and diverse company. IBM managers do manydifferent things. It can be difficult to define core-and-commonmanager roles relevant to managers throughout such a highlycomplex organization. The Individual Management Model(IMM) was developed as an aid to managers to help themunderstand their roles in context.

The manager gets work done through other people.IBM has used that simple definition for years. There are twokey parts to the definition: getting work done and throughother people.

The Individual Management Model (IMM) was developedas an aid to managers to visualize how their roles are similarto other managers and how they may differ.

Quick overview of the Individual ManagementModel (IMM)All managers are responsible for producing results. They dothat primarily through other people. The influence that a man-ager has on direct reports is reflected in the OrganizationalClimate that he or she creates. Every manager faces slightlydifferent factors that help or hinder the achievement of busi-ness results. And every manager is different in terms ofpersonality, thinking style, competencies, etc. Its this mix ofconditions and personal characteristics that make managers'behaviors different

COMPONENTS OF THE IMM

ObjectivesObjectives are the intended business results and are reflectedin managers PBCs (Personal Business Commitments).Managers are either given objectives or they define their own,hopefully aligned with the goals and objectives of their largerorganizations.

Personal characteristicsManagers take actions to achieve those objectives. Everymanager has unique personal characteristics, and these char-acteristics will influence his or her behavior. Personalcharacteristics include:

background skills knowledge thinldng style competencies personality

Do

Manage

Lead

PersonalcharacteristicsCompetencies,thinking styles,

experience,personality,

etc.

Climate

Businessresults

Objectives

ConditionsStaffing,

processes,time,legal,

ethics,etc.

The Individual Management Model (IMM)

182 PART 2 THE ORGANISATIONAL SETTING

CASE STUDY 5.1

Mergers and acquisitions: the consequences of expansion atSquare Deal plc

Square Deal plc is a newly formed subsidiary companyof Square Deal International Inc. The intention is touse it to unify the efforts and improve the profitabilityof the hitherto separate UK subsidiaries of Arnold plc,Carlton plc and Foodrich plc. At present it has a man-aging director, an administrative/ financial controllerand a typist all sharing a large temporary office incentral London.

Arnold plc has 69 food stores, all within a radius of30 miles from London. Most of them contain either asmall restaurant or a snack bar and occupy high streetor suburban shopping centre locations. It owns onesmall bakery whose total production supplies tenstores with bread and cakes. Perishables for both re-sale and restaurant use are bought locally but all otherproducts are bought centrally and distributed fromone large warehouse. These products are charged tothe stores at selling price on computer-printed internalinvoices. Store managers are judged solely on revenue.Accounts for each store are produced on the batchcomputer system at head office which is an old build-ing on the edge of a dockland redevelopment site inEast London. The company owns the freehold, as itdoes of about half of its food stores.

Carlton plc has joint managing directors, one incharge of 21 restaurants and one in charge of prop-erty development. To date it has built four shoppingcentres and has plans for three more, all as part ofschemes to regenerate old city centres in the northof England, around 150 miles from London. It leasesout the shops with the exception of one per centrewhich it operates as a restaurant. Both MDs rigidlypursue a 15 per cent annual return on investment astheir measure of achievement.

Foodrich plc was, until last year, a family firmwhich canned fruit and vegetables from its one fac-tory situated about 100 miles from London, in thewest of England. It was bought by Square DealInternational Inc with the idea that it would supplyown label products to Arnold plc and large cateringpacks to both Arnolds and Carltons restaurants. Todo this, Foodrich was obliged to deny supplies tosome of its regular customers and re-equip part of itsplant to handle the large catering packs. The MD, sonof the founder, has worked there for nearly 40 yearsand runs the company, making all decisions, bothlong term and operational, using his experience andintuition. He is furious to learn that Arnold has notput all its own label business in his direction andCarlton is still buying most catering packs fromFoodrichs competitors while its new plant is grossly

YOUR TASKS

(a) Discuss the benefits and drawbacks of judgingperformance on a single criterion such as:(i) revenue, in the case of the store managers;(ii) return on investment, in the case of Carltons

MDs.

(b) Explain to what extent Arnolds head buyer andCarltons head chef are justified in buying cateringpacks from other companies.

(c) Describe how further computerisation might help inthis quest for unification and profit improvement.

(d) After you have finished this task, the MD tells you heis toying with the idea of regrouping the companyunder the name of Square Deal plc and dividing itinto the following divisions, each operating as aprofit centre:

Square Deal plc

Restaurants Property Food retail Canning Bakerydivision division division division division

He is concerned about the effects of such achange on the morale of the managers and otheremployees so he asks you for a further statement.Discuss ideas that should maintain or improvemorale if this regrouping were to take place.

(e) Highlight any other advantages or difficulties thatyou foresee in the regrouping idea.

Pho

to: R

ober

t Law

son/

Ant

hony

Bla

ke P

ictu

re L

ibra

ry

Chapter openers:provide a briefintroduction to keythemes of thechapter

Learning outcomes:summarise whatstudents will learnin the chapter

Notable quotes: provideinsight into managerialthinking, past and present

Exhibits: short vignettes bringmanagerial theory and practiceto life

Technology solutions: links to web-basedresources which encourage evaluation of tech-nology in solving problems

Management in action:real-world examplesensure that studentsidentify and engagewith managerialchallenges

Case studies: integrate a range ofthemes to encourage analysis ofmore complex situations

GUIDED TOUR OF THE BOOK xxi

Critical reflections:motivate students tothink critically aboutkey themes

Review and discussion questions: assessstudents understanding and progress

Assignments: imaginative activitiesenable students to learn throughpersonal application of theory

Personal awarenessand skills exercises:practise and developstudents interpersonaland work-based skills

Business Press: Financial Times articlesdemonstrate contemporary relevance oftheory in journalistic style

GUIDED TOUR OF THE COMPANION WEBSITE

GUIDED TOUR OF THE COMPANION WEBSITE xxiv

xxv GUIDED TOUR OF THE COMPANION WEBSITE

MANAGEMENT ANDORGANISATIONALBEHAVIOUR

Part 1

Part 2THE

ORGANISATIONALSETTING

Part 3THE ROLE OF

THE MANAGER

Part 6ORGANISATIONAL

STRUCTURES

Part 7MANAGEMENT

OF HUMANRESOURCES

Part 8IMPROVING

ORGANISATIONALPERFORMANCE

Part 5GROUPS ANDTEAMWORK

Part 4THE

INDIVIDUAL

Part 1MANAGEMENT ANDORGANISATIONAL

BEHAVIOUR

Dogberts Theory of Delegation

Unlike technological and financial capital, people

have a soul. We have hopes and aspirations, we

can trust and feel committed, and the trust and

commitment we feel profoundly influence our

propensity to give beyond the call of duty.

Lynda GrattonLiving Strategy: Putting People at the Heart of Corporate Purpose, FinancialTimes Prentice Hall (2000)

Management is efficiency in climbing the ladder

of success; leadership determines whether the

ladder is leaning against the right wall.

Stephen CoveyThe 7 Habits of Highly Effective People, Simon and Schuster (1989)

The concepts and ideas presented in this book

provide a basis for the critical appraisal of

contrasting perspectives on the structure,

operation and management of organisations,

and interactions among people who work in

them. It is hoped that this will encourage a

greater level of awareness of, and sensitivity to,

the organisational factors and management

processes influencing the behaviour and

performance of people at work.

LEARNING OUTCOMES

After completing this chapter you should be able to:

explain the main features, aims and scope of this book;

detail the main features of the seventh edition;

outline the main contents of the book and explain yourstudy of the book;

comment on the changing nature of work organisations;

summarise the study of management and organisational behaviour;

explain the nature, use and value of case studies.

INTRODUCTION1

Photo: NASA

However much of a clich it may sound, it is still an inescapable fact that people are themain resource of any organisation. Without its members, an organisation is nothing; anorganisation is only as good as the people who work within it. In todays increasingly globaland competitive environment the effective management of people is even more importantfor organisational survival and success. According to Alderman Sir Roger Cork, former LordMayor of London, eighty per cent of business failures are down to bad management.1

As a recent report from the London Business School points out: Human Capital (HC)is increasingly recognised as a key competitive advantage for companies. As well as akey indicator of a companys success. 3

However, despite the frequent protestations by organisations that our employees areour greatest assets there is invariably a noticeable failure to measure their value to theorganisation or to include their value in financial statements. In 2003 the Secretary ofState for Trade and Industry established a task force on human capital managementcharged with looking at how organisations could measure the quality of their humancapital management and report on its impact on business performance.

The way an organisation manages its people impacts on its performance. Few would deny thissimple statement and numerous company reports and studies have confirmed a link betweenpossession of effective human resource strategies and organisational performance. Researchover the past few years has clarified the features of good people management practices associ-ated with high performance and how these can be used strategically, in combination.4

The aims of this book are to:

relate the study of organisational behaviour to that of management; provide an integrated view embracing both theory and practice; point out applications of behavioural science within work organisations and

implications for management action; indicate ways in which organisational performance may be improved through

the better use of human resources and the effective management of people.

PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR4

ABOUT THIS BOOK

It has become acceptable in some areas to regard the academic study of management as atbest esoteric and at worst irrelevant. Mastering Management is based on the belief that anacademic approach to the study of management has much of real relevance for practisingmanagers.

Financial Times Mastering Management Series2

This is the moment when HCM takes its place in the Boardroom. Directors need to trans-form the airy clich about people being their greatest asset into a guiding principle ofbusiness strategy.

Denise Kingsmill, Chair of Task Force on Human Capital Management5

THE AIMS OF THIS BOOK

Human capitalmanagement(HCM)

The book is written with a minimum of technical terminology and the format is clearlystructured. Each chapter is fully supported with illustrations and contains:

a short introduction and learning outcomes; a set of contemporary critical reflections; a synopsis of key points; review and discussion questions; personal awareness and skills exercises; assignment(s) and/or case(s); detailed notes and references.

While a prior knowledge of behavioural science would prove useful to the reader, it isnot assumed. Neither is such knowledge a necessary prerequisite for an understandingof the concepts and ideas discussed in this book. Broader social science perspectivesform an integral part of the explanation and discussion of management and organisa-tional behaviour.

It is hoped that the comprehensive coverage and progressive presentation of contentswill appeal to students at undergraduate, graduate or post-experience level in business ormanagement, or on related professional courses. It is also hoped that the book willappeal not only to those aspiring to managerial positions, but to practising managers andsupervisors who wish to expand their views and knowledge of the subject area.

The study of organisational behaviour

There are a number of alternative approaches to the study of organisational behaviour.For example, in addition to a managerialist approach, Drummond refers to two otherintellectual standpoints, interpretative and critical.

The interpretative standpoint views ambiguity, paradox and contradictions as partof the natural experiences of organisations, and with an emphasis upon understandingthe subtleties and dynamics of organisational life.

The critical standpoint believes that reality is very real and people have only a mar-ginal amount of freedom, and regards management science as bogus, a means oflegitimising economic exploitation.6

While acknowledging the existence and potential contributions of both these stand-points, the main thrust of this book is to present a managerial approach toorganisational behaviour. It is concerned with interactions among the structure andoperation of organisations, the process of management and the behaviour of people atwork. The underlying theme of the book is the need for organisational effective-ness and the importance of the role of management as an integrating activity.

No single book could hope to cover adequately all aspects of what is a wide and essen-tially multidisciplinary field of inquiry, and it is not the intention to attempt to coverall aspects of individual or social behaviour. It is regrettable but inevitable thereforethat some topics are excluded or given only limited coverage and it is not possible tomeet fully the preferences of all readers. In order to attain a reasonable depth, thisbook concentrates on selected topics of particular relevance to problems of organisa-tion and the management of people in work situations, and which meet the needs ofthe intended audience.

The nature of organisational behaviour and the practice of management should beconsidered not in a vacuum but within an organisational context and environment.The activities of a work organisation and the management of people are directedtowards an end, towards certain goals. Chapters 4 (The Nature of Organisations) and 5(Organisational Goals, Strategy and Responsibilities) help to provide an integrated, bal-anced setting for this book and for your studies of the subject area.

CHAPTER 1 INTRODUCTION 5

The scope ofthis book

There are, of course, related areas of specialisms such as human resource management(HRM) which also bear upon management action and organisational effectiveness.However, this book is not about employment law and neither is it the intention toattempt to compete with specialist HRM books. Rather, Chapters 19 and 20 serve torecognise the importance of the context in which the process of management and organ-isational behaviour takes place and to provide an overview and signpost some main HRMareas of interest. Together with Chapters 4 and 5, these chapters aim at broadening thescope of the subject matter beyond the concerns of traditional organisational behav-iour texts a distinctive feature of this book.

The consistently supportive and positive feedback from reviewers and users of previouseditions has been very much appreciated. Accordingly this edition retains the sameunderlying theme, aims and approach that have been a hallmark of the success of thebook. Continuing attention has been given to the overall layout, style and appearance.

Readers familiar with the previous edition may wish to note the following featuresof this seventh edition.

The opportunity has been taken for a comprehensive and detailed review of all con-tents, including attention to chapter titles and introductions; the organisation, flowand coherence of all material; and restructuring both within and between chapters.

Significant changes include Organisational Practices brought forward to Chapter 2from Chapter 16; and delegation and empowerment removed from Chapters 6 and16 and consolidated and expanded in Chapter 21.

Changes have been made to the titles of a number of chapters in order to reflectmore closely the nature of their contents.

There is considerable new material including greater attention to topical issues such asthe changing nature of organisations and management, cultural influences and organ-isational behaviour, business ethics, diversity, leadership, management development,flexible working, stress, human resource management and work/life balance.

There are a number of additional and replacement appendices (now calledManagement in Action), assignments and case studies.

There are in excess of 450 new or revised references. Each chapter now includes opening quotations which helps focus attention on an

underlying feature of that chapter. The section on About the Contents on pages 815 now includes a note of main

links with other chapters. In order to accommodate the additional and updated contents, careful attention has

been given to the deletion of older and possibly outdated material and references,unless believed to be clearly of continuing relevance today. This has demandedmany hard choices but has been influenced by the overriding consensus to maintainthe book at a reasonable and manageable size.

Together these changes hopefully provide not only a sharper and fresher approachbut also a more contemporary and robust focus of attention as well as enhancedreadability.

In addition to the above there are three significant new features in the book:

Personal awareness and skills exercisesEach chapter now includes an exercise designed specifically to help further thedevelopment of your personal awareness, and your social and work-based skills. Theunderlying basis of management and organisational activity is human behaviourand the interactions of people. However, we need to remind ourselves that people

PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR6

THE SEVENTH EDITION

bring their own perceptions, feelings and attitudes towards the organisation, sys-tems and styles of management, their duties and responsibilities, and the conditionsunder which they are working. An important first step in understanding the behav-iour of other people is to know and understand yourself. Enhancing your personalawareness and skills should make study and learning more fulfilling, improve yourconfidence and augment your ability to work well with other people. It should alsohelp boost your employment opportunities. Increasingly, graduate recruiters areplacing greater emphasis on key personal and social skills, and attitudes. To this endit is recommended that you maintain a log of the skills attained during yourcourse of study that you can show in future job interviews.

Technology onlineTechnology impacts on almost all aspects of management and organisational behav-iour. Technology solutions are interactive web exercises which encourage students toexplore how technology might be used to solve specific managerial problems.

Business PressA new Business Press section provides contemporary articles relating to business andmanagement situations featured in the Financial Times, including links with othermost relevant chapters. There are also questions for each article allowing you to crit-ically discuss the issues raised in the articles.

Key integrative features of this book

Underlying key issues of management and organisational behaviour have always beenan important integrative feature of this book, and continue to be addressed in this edi-tion. These include attention to:

organisational democracy with, for example, greater attention to employee partici-pation and empowerment, and the personal touch;

structures of people, concerns for the re-evaluation of work/life balance includingdemands for flexible working arrangements;

the importance of the context of culture and the impact of external environmentalinfluences;

ethical and social values, the need for organisations to be more transparent and formore open relationships;

strategic approaches to human resource management and the effective managementof people;

renewed focus on effective organisational performance including primary objectivesof survival, growth and development, and profitability;

interrelationships among management, organisational behaviour, goals and strategy,human resource management and organisational effectiveness.

CHAPTER 1 INTRODUCTION 7

FT

About the contents

The book is divided into eight interrelated Parts, see Figure 1.1, and 23 chapters.

This chapter explains the nature, aims and main features about this book, and intro-duces you to the changing nature of the work organisation, and to the study ofmanagement and organisational behaviour.

Chapter 2: The Nature of Organisational Behaviour looks at the nature of organisa-tional behaviour and the importance of the peopleorganisation relationship. Chapter2 draws attention to main influences on the behaviour and performance of people inthe work situation, and the central focus of management.

PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR8

Links with other chapters

Chapter 5 debates the idea of a social responsibility of managementChapter 7 discusses Theory X and Theory Y strategies of managerial behaviourChapter 11 identifies the concept of selective perceptionChapter 14 explains the Johari Window framework of behaviourChapter 16 includes reference to culture as a contingent factorChapter 18 discusses applications of quality circles and the nature of the work/life

balanceChapter 23 explores the nature of organisational effectiveness

Part 1ManagementandOrganisationalBehaviour

Part 2THE

ORGANISATIONALSETTING

Part 3THE ROLE OF

THE MANAGER

Part 6ORGANISATIONAL

STRUCTURES

Part 7MANAGEMENT

OF HUMANRESOURCES

Part 8IMPROVING

ORGANISATIONALPERFORMANCE

Part 5GROUPS ANDTEAMWORK

Part 1MANAGEMENT ANDORGANISATIONAL

BEHAVIOUR

Part 4THE

INDIVIDUAL

Figure 1.1 Interrelated parts of the book

Chapter 3: Approaches to Organisation and Management contrasts major trends inthe development of management thinking and provides a basis for considerationof topics discussed in following chapters. Chapter 3 reviews different approachesto organisation and management, and the relationship between theory and manage-ment practice.

Chapter 4: The Nature of Organisations recognises the importance of the organisa-tional setting and external environment within which the process of managementtakes place. Chapter 4 examines the organisation as a complex social system, and inter-relationships among its operations, structure and management.

Chapter 5: Organisational Goals, Strategy and Responsibilities draws attention tothe importance of organisational goals and strategy for the operations and manage-ment of the organisation. Chapter 5 considers organisational ideologies and objectives,the concept of social responsibilities of management and business ethics.

CHAPTER 1 INTRODUCTION 9

Links with other chapters

Chapter 4 examines the organisation as an open systemChapter 6 sets out principles of management to help general discussion on

management theoryChapter 13 discusses the importance of group norms and social relationshipsChapter 15 details common principles of organisation applicable to all situationsChapter 16 explains contingency models of organisation and managementChapter 19 discusses the unitary and pluralistic perspectives of organisationsChapter 22 reviews the nature of organisational conflict

Links with other chapters

Chapter 1 draws attention to the changing nature of work organisationsChapter 3 reviews developments in management thinking and organisational behaviour Chapter 5 discusses the significance of organisational goals and objectivesChapter 6 discusses management in private and public sector organisationsChapter 13 explains the importance and nature of groups and teamsChapter 16 refers to contingency models of organisation and managementChapter 17 explores the nature of technology and organisationsChapter 23 includes a discussion of the learning organisation

Links with other chapters

Chapter 2 discusses the new psychological contract including responsibilities to employees

Chapter 4 explains the context of the organisational setting including a systems view oforganisations

Chapter 7 examines the approach of Management by Objectives (MBO)Chapter 15 reviews the nature of organisation structure and designChapter 21 looks at the concepts of power, involvement and complianceChapter 22 examines the nature and management of organisational change

Part 2TheOrganisationalSetting

Chapter 6: The Nature of Management examines the process of management as thecornerstone of the peopleorganisation relationship and fundamental to effective per-formance. Chapter 6 reviews the essential nature of managerial work, the nature andmain activities of management, and the execution of work.

Chapter 7: Managerial Behaviour and Effectiveness recognises the responsibility ofmanagers to manage and to achieve results through the efforts of other people.Chapter 7 considers different systems and styles of managerial behaviour, the effectiveutilisation of human resources and managerial effectiveness.

Chapter 8: The Nature of Leadership explores the process of managerial leadership asa central feature of improved organisational performance. Chapter 8 looks at the exer-cise of leadership power and influence, leadership as an aspect of behaviour, and theimportance of situational variables.

PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR10

Links with other chapters

Chapter 6 discusses management as getting work done through the fforts of other peopleChapter 7 examines managerial behaviour and effectivenessChapter 12 includes an account of expectancy theory of motivationChapter 13 examines the nature of work groups and teamsChapter 14 discusses task functions and maintenance functions of leader-member

behavioursChapter 23 refers to the Leadership and Management Model as a framework for effective

role model leadership

Part 3The Role of theManager

Links with other chapters

Chapter 4 distinguishes between production and service organisations, and explainsthe systems approach to organisations

Chapter 7 examines managerial behaviour and effectivenessChapter 15 sets out Urwicks principles of organisation and also different levels of

organisationChapter 21 discusses the nature of delegation and empowermentChapter 22 explores the nature of organisational culture and climateChapter 23 examines management development including Management Standards, and

the Leadership and Management model

Links with other chapters

Chapter 2 refers to successful management as the ability to handle people effectively, and also to the psychological contract

Chapter 6 examines the nature of managementChapter 8 discusses the nature of managerial leadershipChapter 12 explains Maslows hierarchy of needs modelChapter 13 refers to role expectations and self-established role prescriptionsChapter 19 discusses the Investors in People Standard for training and development

Chapter 9: Individual Differences draws attention to the importance of the individ-uals contribution to the performance of work organisations. Chapter 9 focuses onindividual differences, the significance of personality and attitudes, and the recogni-tion of individual talent and potential.

Chapter 10: The Nature of Learning explores the significance of learning to organisa-tional behaviour, and as an important factor in managing change and motivatingemployees. Chapter 10 explains the nature of the learning process, knowledge manage-ment, the learning organisation and evaluates theories of learning.

Chapter 11: The Process of Perception considers the nature of the perceptual processand the importance to the manager of the study of perception. Chapter 11 explainsfactors influencing perception and draws particular attention to an understanding ofproblems regarding the perception of other people.

CHAPTER 1 INTRODUCTION 11

Links with other chapters

Chapter 3 refers to the sex power differential in the Hawthorne experimentsChapter 10 examines an understanding of the ways in which people learnChapter 11 discusses the process of perception and the impact of gender differencesChapter 12 explores the nature and causes of frustration-induced behaviourChapter 14 explains the Johari Window framework of behaviourChapter 18 examines the nature, causes and consequences of stress at workChapter 20 details procedures for the recruitment and selection of staff, and the use

of tests

Part 4The Individual

Links with other chapters

Chapter 9 examines the nature of individual differencesChapter 12 discusses the motivation of knowledge workersChapter 13 refers to possible stress from situations of role ambiguityChapter 15 looks at the impact of organisation structures on behaviour at workChapter 17 examines the impact of technology on organisationsChapter 22 explains the learning organisation as a feature of organisation developmentChapter 23 discusses management development as an essential feature of organisational

effectiveness

Links with other chapters

Chapter 2 introduces the concept of the psychological contractChapter 7 discusses Theory X and Theory Y strategies of managerial behaviour Chapter 9 explains the Myers-Briggs Type IndicatorChapter 10 explores an understanding of the nature of learning and the ways in which

people learnChapter 12 examines process theories of motivationChapter 14 refers to perception of self and how people see and think of themselves

Chapter 12: Work Motivation and Rewards examines those areas that influence themotivation of staff and which elicit their willing co-operation and improved perform-ance. Chapter 12 reviews different theories and ideas about motivation and rewards,and evaluates their relevance to particular work situations.

Chapter 13: The Nature of Work Groups and Teams looks at the nature and signifi-cance of work groups and teams as a major feature of organisational life. Chapter 13considers those factors which influence group formation and cohesiveness and theimportance of groups and role relationships for organisational performance.

Chapter 14: Working in Groups and Teams reviews the importance of understandingthe nature of working in groups and teams, and interactions among members. Chapter14 gives attention to the analysis of behaviour of individuals in group or team situa-tions, and the assessment of performance and effectiveness.

PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR12

Links with other chapters

Chapter 7 refers to the Blake and Mouton Managerial Grid seminars for reviewing patterns of behaviour

Chapter 8 discusses leadership development and effectivenessChapter 12 explains achievement motivationChapter 13 examines the nature of work groups and teamsChapter 18 discusses a group of people in quality circles, and also self-managed work

groupsChapter 19 draws attention to training in people skills and teamworking

Links with other chapters

Chapter 2 introduces the concept of the psychological contract and also refers to culture and motivating factors

Chapter 3 discusses the ideas of scientific management and the rational-economicconcept of motivation

Chapter 6 refers to management as getting work done through other peopleChapter 7 examines the approach of Management by Objectives (MBO)Chapter 11 explains Attribution theory as part of process theories of motivationChapter 18 discusses work organisation and job design, and job enrichment

Links with other chapters

Chapter 3 refers to the power of group membership and the Hawthorne experiments, and also to the effects of changing technology

Chapter 4 explains social processes and the informal organisationChapter 8 examines the process of leadership linked to the activities of groupsChapter 14 examines working in groups and teamsChapter 15 looks at formal organisational relationships and the matrix form of

organisationChapter 18 discusses role stress as an influence on job satisfaction and performance

Part 5Groups andTeamwork

Chapter 15: Organisation Structure and Design provides an overview of the natureand importance of structure for effective management and organisational performance.Chapter 15 details key factors to be considered in the design of structure, and considersthe relationships between organisation structure and people.

Chapter 16: Patterns of Structure and Work Organisation recognises the situationalvariables that influence the most appropriate organisation structure and systems ofmanagement. Chapter 16 examines the importance of alternative forms of structure,the demand for flexibility.

Chapter 17: Technology and Organisations explains the pervasive nature of technol-ogy within contemporary organisations and a variety of perspectives. Chapter 17considers the importance of organisational and human dimensions of the adoptionand implementation of new technology.

CHAPTER 1 INTRODUCTION 13

Links with other chapters

Chapter 3 discusses the idea of common sets of principles on organisationChapter 4 looks at the informal organisation and also refers to information technology

as a dimension of structural designChapter 5 explains the importance of organisational goals and objectivesChapter 7 refers to the changing nature of the work organisation and the hierarchyChapter 13 discusses role relationships and interactions, and role incongruenceChapter 16 examines patterns of structure and work organisation

Part 6OrganisationalStructures

Links with other chapters

Chapter 2 draws attention to national culture and principles of contingency theoryChapter 4 discusses types of organisations and their purposeChapter 5 refers to the fallacy of the single business objectiveChapter 15 examines organisation structure and designChapter 18 considers the influence of flexibility on job satisfaction of staffChapter 21 discusses the nature and importance of delegation and empowermentChapter 22 examines the significance of the culture of the organisation

Links with other chapters

Chapter 2 explains the nature of organis