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BS3916 Thinking about Management

5: Contemporary management thought

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BS3916 Thinking about Management5: Contemporary management thought

Leadership [1]• Former models of leadership conceptualised

leadership as authoritarian, command-driven, charismatic, with ‘strong’ personalities.

• Likert identifies 4 management styles– Exploitative authoritarian– Benevolent autocracy– Consultative– participative

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BS3916 Thinking about Management5: Contemporary management thought

Leadership [2]• In ‘new leadership’ it is necessary to give up

control to get results• The ‘new leader’ facilitates coordination and

integration in order to get work done [Sayles]• Bennis argues that leaders have 4 vital skills

– Management of attention– Management of meaning– Management of trust– Management of self

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BS3916 Thinking about Management5: Contemporary management thought

New ways of Managing people [1]

• Note that Human Resource Management can mean a radically different conception than Personnel Management

• HRM can be seen as…– A facilitator of change– An integrated approach to management– A mediator

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BS3916 Thinking about Management5: Contemporary management thought

New ways of Managing people [2]

• Employment Law increasingly complex

• What motivates ? And demotivates ?

• Personal development and organisational needs

• Impact of ITC (email,’audit’ trails)

• Stress and its management

• Every manager their own personnel dept ?

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BS3916 Thinking about Management5: Contemporary management thought

Empowerment [1]

• Organisations are now flatter and wider

• Delegation is now a necessity

• Empowerment implies not just delegation but an increase in worker autonomy

• Does one delegate to the least competent, thus ensuring that they learn?

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BS3916 Thinking about Management5: Contemporary management thought

Empowerment [2]

• Rosabeth Moss Kanter‘by empowering others a leader does not decrease his own’

• Businesses need to be flexible but not too free-wheeling

• Relationships and communication more important than structure

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BS3916 Thinking about Management5: Contemporary management thought

Reinventing Marketing [1]

• Market driven, not just marketing driven!

• Marketing departments may have been too concerned with process and effectiveness was not properly measured

• Relationship marketing is concerned with retaining customers, not just attracting them(given the costs of getting new customers)

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BS3916 Thinking about Management5: Contemporary management thought

Reinventing Marketing [2]

• Creation of customer loyalty an important concept (e.g. a family may spend £40k in a supermarket over 10 years)

• Brand management implies targeting the right section of a fragmented market

• New products and services have to developed constantly

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BS3916 Thinking about Management5: Contemporary management thought

Global Management [1]

• Rise of homogenous markets (in cars, cosmetics,tobacco, drink]

• Globalisation can..– Enable R&D to develop a product range– Respond quickly in purchasing– Economies of scale for a mass market– Distribution and sales need to match

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BS3916 Thinking about Management5: Contemporary management thought

Global Management [2]

• Rise of the internet has maximised markets and accentuated competition

• Global companies need efficient communication networks to be able to respond quickly to market change

• Global companies can and do switch production to lower cost/tax regimes