Managing people and organization

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However according to Kotler (1990), both has different function. For example, The management produces order & consistency while leadership produces change & movement. The management concentrate on controlling and solving problem whilst leadership focus on inspiration and motivation.

Bennis and Nanus (1985) also made the difference very clear in their frequently quoted sentence: "Manager are people who do things right and leaders are people who do things right"

Zalzenik (1977) emphasized that managers are reactive and prefer to work with people to solve problmes. They do so with low emotional involvement, Leader, on the other hand, seek to shape ideas rather than respond to them and act to expand the available options to solve long-standing problems. they do so with high emotional involvement.

Despite these difference, Leaders and Managers perform each other's role. For example, If the manager try to achieve goal by influencing people he/she involved in leadership and when leader do organizing and staffing he/she involved in management.

PART 1 Contingency Theory

There are several approaches of contingency theory, the most widely accepted is Fieldler's (1964, 1967, Fieldler &  Garcia, 1987) contingency theory.

Contingency approach suggests that leaders match their leadership style to the appropriate situation or context. This theory is called contingency because it stresses that leader's effectiveness depends on how well the leader's style fits the context.

Fieldler and his colleagues studied different leaders and their style, based on that empirical study they recommended about which styles of leadership were best and which styles were worst for different organizational contexts or situations.

Contingency theory is generally about matching leadership styles with the situation in which leaders lead.

The two main variables in contingency theory are

  1. Leadership style
  2. Situational variables

Leadership Style

This involves the way a leader attempts to influence employees or subordinates in order too achieve goals or get the job done.

Leadership styles in this context can be describes as:

Task motivated leaders are concerned mainly with achieving a goal while Relationship motivated leaders are more concerned with developing and maintaining close interpersonal relationships with subordinates.

Fieldler developed a framework for measuring leader styles, it is called, the Least Preferred Coworker (LPC) scale. Leaders who score high on this scale are referred to as relationship motivated leaders while those who score low are referred to as task motivated leaders.

Situational variables

  1. Leader-member relations
  2. Task structure
  3. and Position power

Leader-member relation is based on the followers behavior towards their leader, it includes loyalty, degree of confidence, influence and acceptance . This could either be good/positive or poor/negative.

Task structure is concerned with the degree of which the task is structured and spelled out. The task should have clear goals and procedures. Well structured tasks give more control or leaders while vague and unclear tasks lessen the leader's control and influence. For example, a structured task would have the following characteristics:

  1. Clearly stated requirements which should be known by people required to perform such task.
  2. Few alternatives available for the path of finishing the task.
  3. Demonstrate the completion of the task clearly. .

On the other hand, an unstructured task has no clear set of rules through which it can be accomplished. There is no best way of accomplishing such task and the correctness of the execution of such task cannot be verified, for example, fund raising.

Position power, this is otherwise known as legitimate power. It is the third characteristics of situations where the leader has power to punish or reward its staff. It is the authority leaders drive from the position they hold in an organization. Position power of a leader is strong when he has the power to fire and hire or to give raises in rank or pay. While it is weak if a leader does not have the right to do these things.

The above situational variables or factors determine the favorableness of situations in organizations. Favourable situations have good leader-follower relations, defined or structured task, and strong leader position power while situations that are rated poor have poor leader-follower relations, undefined or unstructured tasks, and weak leader position power.

Least Preferred Coworker (LPC)

This could be described as a colleague or co-worker an employee least like to work with or with whom an employee had most difficulties with an accomplishing tasks.

Leadership instrument

Leadership instrument is used to measure a leader's leadership style. In order to do this, the person being measured is asked to describe a co-worker he least likes to work with (LPC) on 18 sets of adjectives questionnaire.

After the questionnaires have been analysed, the results can be grouped  into three:

  1. Low LPCs
  2. Middle LPCs
  3. and High LPCs

Low LPCs are task motivated leaders whose primary need are to get the job done while they Middle LPCs are socio-independent leaders who are less concerned with the task and how people perceive them (interpersonal relationship)

High LPCs are motivated by relationships in organisations. They are concerned about tasks only after they ensure that relationships between people in the organisation are good.

Working on Leadership theory

According to the findings of the contingency approach researchers, different leadership style would be effective in different organizational contexts or situations, i.e. leaders who are task motivated (low LPC score) will be effective in both very favourable and very unfavourable situations, that is, in situations that are going along very smoothly or ones that are out of control. While leaders who are relationship motivated (high LPC score) are effective in moderately favourable situations, that is, in situations in which there is some degree of certainty but things are neither completely under their control nor out of their control.

PART 2 Application of Contingency theory in Case study

Key issues in Twilight Burgers and Pizzas

  • The infrastructure, equipments and menu are out of trend
  • The staff problems are common
  • The business have been threatened because of 'healthy eating' trends and concern over environmental impact on fast food sector
  • The night managers are not trained and no extra bonus apart from basic salary
  • The students occupied to filling the vacancy of staff, so the training investment was not considered vital
  • Frequent replacement of the employee
  • In spite of the standardized procedure managers find the informal practices and behaviors
  • Operation regulation has been issued to all managers though there were deterioration of service and product quality in most of the branches.
  • The relevant bonus system to reduce wasted food was failed
  • As the night managers were young or same age than other employee, they were not earned respect unlike Managers or Assistant Managers
  • There was an 'after hour' culture in the restaurants
  • The management decision of withdrawal of formal benefits of employee's, created 'us' and 'them' atmosphere in the business.
  • The established staff were influencing new staff and waste food had been increased.

Recommendations

Fieldler suggested that it is easier to change the favorableness of the situation rather than changing the leader's style.

In the given case study the leader-member relations and leader position power is weak however the task structure has been well defined by providing manual.

Leader style

According to Fieldler contingency theory in this context, task oriented leader are more effective to overcome the problems

The management must hire the night managers those are task oriented and give position power to execute the task effectively by rewarding or punishing the established staff.

The operation manual has been given to the managers, so that the task oriented managers can effectively communicate the requirement to maintain the standards of service and product quality.

Situational variables

Another approach is to make the situational variables to match the leaders.

The management must work on the manager-members relations. the following are the way to improve this relations

  1. Treat the employee as a human rather than cogs
  2. Give concessions with regards to wages, health benefits
  3. Provide them proper training to execute the operation tasks
  4. Keep continue the formal benefits of the employee however that should be monitored
  5. Retained the staff by providing some benefits or healthy atmosphere in work place.
  6. The management must develop the trendy infrastructure to motivate the employee to work in the restaurant.

The management has hired the Night Managers that have same or younger age than some employees. It would be difficult for these managers to deal with established employee without position power. There was increase pressure on them not to report any informal practices. The strong position power can help Night managers to control these situation by punishments

Task structure of reducing wasted food must be clearly spell out and provide guidance how to achieve it. The management must provide formal training to the Night managers so that they can effectively execute the task.

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