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Management is really a generic term and can be subject
to many interpretations which helps us to understand
why different types of organisations approach it in
different ways. Over time, a number of different ideas have contributed to
the meaning of management and to the work of a manager (see Appendix). In
certain respects and from An individual/personal perspective almost everyone in
a modern organization could be regarded as a manager to some extent because
virtually everyone has some choice about whether or not to do something, and
some control, however slight, over the planning and organisation of their
work !ut from an organisational perspective, management is
concerned with being responsible for the attainment of organizational
ob"ectives, usually taking place within a structured organisation and with
prescribed roles #his usually involves people looking beyond themselves and
exercising formal authority over the activities and performance of other people
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MANAGE A! A "#$ %&%'E
$ven within a work organisation you cannot easily identify, necessarily, a
manager by what a person is designated as or by his or her "ob title In some
organisations, %&uite often those that find it difficult for whatever reason to offer
higher levels of pay such as small retail outlets', there can be &uite a liberal use
of the title (manager( in an apparent attempt to enhance the status and morale of
staff As a result there are a number of people whose "ob title includes the term
manager but who, in reality, are not performing full activities of a manager that
would be recognised by any analytical approach or by other professional
managers beyond that organisation
(o how do we recognise managers)
In most organisations there is a *hierarchy* %a power structure' which assigns
roles and responsibilities to each person #he people in organisations can be
divided into those who actually produce the goods or service %the
production line operatives, shop assistants, bank clerk etc' and those who
organise the production of the goods or service #he latter are
often classed as managers.
%It is important to realise that a manager is "ust another employee with particular
skills like any other employee #hey are employed to perform certain tasks and
can be disciplined if they fail to perform to the re&uired standard In most
companies they are not actually the employer although they may own shares in
the company or possibly sit on the board of directors'
In addition, there are many people whose "ob title does not include the term
manager %for example within engineering they may be recognised as overseers,
charge hands, foremen, supervisors, managers, executives etc and beyond
engineering maybe named ,roup Accountant, -ead .hef, .hief Inspector,
.aptain, -ead #eacher, /roduction .ontroller, 0istrict 1ursing Officer, .ompany
(ecretary', but who, in terms of the activities they undertake and the authority
and responsibility they exercise may be very much a manager
Drucker %in the first instance consult the Appendix and then try visiting
searching the internet and checking out the library', sees the term management
as denoting a function as well as the people who discharge the duties #o him it
represents social position and authority, and also a discipline and field of study
3anagement is fundamentally about managing tasks 3anagement is also a
discipline but management is also about people $very achievement of
management is the achievement of a manager somewhere and e&ually every
management failure is a failure of a manager
Other writers, however, take the view that management is not a discipline that
is separate to other functions #he problem is identifying a single discipline
which encompasses the work of a manager, or agreeing the disciplines that a
manager needs in order to carry out effectively this work
#here is often confusion over different interpretations of the two terms
(management( and (administration( One of the main reasons for this confusion
would seem to result from the early translation of 5ayol6s book Administration
industrielle et generale %see Appendix, the website
http2//wwwonepineinfo/fayolhtm and the internet and library sources generally'
from the 5rench into $nglish An early %17+7' $nglish edition contained a direct
translation of administration, but in the wider re8publication of the book in 1797
the term 6management6 replaced 6administration6 in the title #his has meant that
some people have interpreted administration is a specific function which enters
all tasks involving supervision of the work of others and is not concerned with
the status of those who exercise this function #here has also been some
concern at the possible division between management being seen to apply only
to business organisations and %public' administration as applying to the same
functions in public service organisations 0ictionary definitions often tend to see
the two words as synonymous
#hus, Management is sometimes referred to as
6administration of business concerns6 and administration as
6management of public affairs6 #here is clearly an overlap between
the two terms and they tend to be used, therefore, in accordance with the
convenience of individual writers #his confirms the feeling that although most
people perceive a difference between the two terms this difference is not easy to
Administration is still used sometimes to refer to the highest level of
management %top management as in the American Administration %,overnment',
the .hinese Administration etc' and to the functions of establishing the overall
aims and formulating policy for the organisation as a whole #he use of the term
administration has been associated more popularly, however, with public sector
organisations !ut even in the public sector the term management is now used
increasingly #his can be seen for example, in local government with the
publication in the 17:;<s of the !ains report of the study group appointed to
6examine management principles and structures in local government at both
elected member and officer levels6 #he report includes a chapter on 6=ocal
government management 8 its nature and purpose6 and makes fre&uent
reference to corporate management, the management process, and the
management team #here appears, therefore, to be growing acceptance of the
term management as the general descriptive label and administration as relating
to the more specific function of the operation of procedures used by
management Administration can be seen as taking place in accordance with
some sort of rules or procedures, whereas management implies a greater
degree of discretion
5or our purposes administration is interpreted as part of the management
process and concerned with the design and implementation of systems
and procedures to help meet stated objecti*es.
#here is fre&uent debate about whether managers are born or made> or whether
management is an art or a science !riefly, the important point is that neither of
these is a mutually exclusive alternative %he answer to either -uestion is
surely a combination of both E*en if there are certain innate -ualities
which ma.e for a potentially good manager these natural talents must be
encouraged and de*eloped through proper guidance/ education and
training/ and planned experience.
.learly, management must always be something of an art, especially in so far as
it involves personal "udgement and dealing with people both of which are highly
sub"ective -owever, it still re&uires knowledge of the fundamentals of
managernent, and competence in the application of specific skills and
techni&ues 8 as illustrated, for example, with developments in information
%0E 1#,E!! #2 MANAGEMEN%
#he nature of management is variable as 3anagement relates to almost all
activities of the organisation and is undertaken at almost all levels of the
organisation 3anagement is not really a separate, discrete function and as
such it cannot be easily departmentalised or centralised An organisation cannot
have a department of management in the same way as a department for other
functions such as, for example, production, marketing, accounting or personnel
Management is seen best/ therefore/ as a process common to all other
functions carried out within the organisation. Management is essentially
an integrating acti*ity.
%he o*erall responsibility of management can be seen as the attainment of
the gi*en objecti*es of the organisation. #bjecti*es are the desired 3end4
results5 that the organisation is stri*ing to achie*e. ?ithin the framework of
organisational ob"ectives, policy provides the guidelines for the operations and
activities of the organisation
/olicy determines the manner in which the affairs of the organisation are to be
conducted #he establishment of ob"ectives and the formulation of policy rest
with the board of directors %or their e&uivalent' and it is part of their
responsibility for determining the direction of the organisation as a whole and for
its survival, development and profitability .larification of ob"ectives and policy is
a prere&uisite if the process of management is to be effective !ut what does the
process of management actually involve, and what activities does it encompass)
3anagement is a complex and discursive sub"ect 0espite the widespread use of
the term @management< and the large amount written about the sub"ect, it is not
easy to find agreement on a simple yet comprehensi*e definition of
management or of a manager. &n addition/ (management( is not
homogeneous. &t place in different ways and at different le*els of the
organisation. #ne approach/ especially fa*oured by classical writers/ is to
analyse the nature of management and to search for common acti*ities (or
functions/ or elements) applicable to managers in all organisations.
,#MM#N A,%&6&%&E! #2 MANAGEMEN%
One of the first, and most widely &uoted, analysis of management is that given
by -enri 5ayol %1B91817+A' 5ayol was a french mining engineer who later
became a senior manager in a large metallurgical company -e studied the
activities of managers in industrial companies, analysed the activities of
industrial undertakings and drew up his 19 general principles of management
-e suggested that *all activities to which industrial undertakings give rise can be
divided into six groups* #hese six groups are 2
7) technical %production, manufacture and adaption'>
8) commercial %buying,selling, exchange and market information',
9) financial %obtaimng capital and making optimum use of available funds',
:) security %safeguarding property and persons'>
;) accounting %information on the economic positions stock8taking, balance
sheet, costs, statistics'> and
<) managerial. %#he term 6management6 is a translation of the 5rench term
#he last activity group managerial is divided into five elements of management,
which are defined as, (to forecast and plan/ to organise/ to command/ to co4
ordinate and to control5 5ayol describes these elements as2
1lanning %translated from the 5rench prevoyance C to foresee, and taken to
include forecasting' examining the future, deciding what needs to be achieved
and developing a plan of action
#rganising 8 providing the material and human resources and building the
structure to carry out the activities of the organisation
,ommand 8 maintaining activity among personnel, getting the optimum return
from all employees in the interests of the whole organisation
,o4ordination 8 unifying and harmonising all activities and eftort of the
organisation to facilitate its workmg and success
,ontrol 8 verifying that everything occurs in accordance with plans, instructions,
established principles and expressed command
1rinciples of management
5ayol also suggests that a set of well8established principles would help
concentrate general discussion on management theory 5ayol never claimed
that these principles could be applied in e*ery situation in e*ery organisation or
that they were 3fixed for all time< !ut he emphasises that these principles must
be flexible and adaptable to changing circumstances (ince they were first
published however, they have unfortunately been interpreted too rigidly by
successive generations of managers irrespective of any differences between
companies or changes in society and industry over the years (ome are still
extremely valid today but others have become outmoded or unacceptable to
today6s workforces
Although 5ayol recognised that there was no limit to the principles of
management his writing advocated fourteen points which are2
(i) )i*ision of wor. 8 the ob"ect is to produce more and better work from the
same effort, and the advantages of specialisation -owever, there are limits to
division of work which experience and a sense of pro8portion tell us should not
be exceeded
(ii) Authority and responsibility 8 responsibility is the corollary of authority
?herever authority is exercised responsibility arises #he application of
sanctions is essential to good management, and is needed to encourage useful
actions and to discourage their opposite #he best safeguard against abuse of
authority is the personal integrity of the manager
(iii) )iscipline 8 is essential for the efficient operation of the organisation
0iscipline is in essence the outward mark of respect for agreements between the
organisationn and its members #he manager must decide on the most
appropriateo form of sanction in cases of offenses against discipline
(i*) =nity of command 8 in any action an employee should receive orders from
one superior only> if not, authority is undermined and discipline, order and
stability threatened 0ual command is a perpetual source of conflicts
(*) =nity of direction 8 in order to provide for unity of action, co8ordination and
focusing of effort, there should be one head and one plan for any group of
activities with the same ob"ective
*i) !ubordination of indi*idual interest to general interest 8 the interest of the
organisation should dominate individual or group interests
(*ii) emuneration of personnel 8 remuneration should, as far as possible,
satisfy both employee annd employer 3ethods of payment can influence
organisational performance and the method should be fair, encourage keenness
by rewarding well8directed effort, but not lead to over8payment
(*iii) ,entralisation 8 is always present to some extent in any organisation #he
degree of centralisation is a &uestion of proportion and will vary in particular
(ix) !calar chain 8 the chain of superiors from the ultimate authority to the
lowest ranks Eespect for line authority must be reconciled with activities which
re&uire urgent action, and with the need to provide for some measure of initiative
at all levels of authority
(x) #rder4 includes material order and social order. #he ob"ect ot material
order is avoidance of loss #here should be an appointed place for each thing,
and each thing in its appointed place (ocial order involves an appointed place
for each employee, and each employee in his or her appointed place (ocial
order re&uires good organization and good selection
(xi) E-uity 8 the desire for e&uity and for e&uality of treatment are aspirations to
be taken into account in dealing with employees throughout all levels of the
scalar chain
(xii) !tability of tenure of personnel 8 generally, prosperous organisations
have a stable managerial personnel !ut changes of personnel are inevitable
and stability of tenure is a &uestion of proportion
(xiii) &nitiati*e 8 represents a source of strength for the organisation and should
be encouraged and developed #act and integrity are re&uired to promote
initiative and to retain respect for authority and discipline
(xi*) Esprit de corps (%eam spirit) 8 should be fostered as harmony and unity
among members of the organisation is great strength in the orgamsation #he
principle of unity of command should be observed It is necessary to avoid the
dangers of divide and rule of one6s own team, and the abuse of written
communication ?herever possible verbal contacts should be used
MANAGEMEN% A! A !#,&A' 1#,E!!
Another analysis is given by $ 5 = !rech who defines management as2
@A social process entailing responsibility for the effective and economical
planning and regulation of the operations of an enterprise, in fulfillment of given
purposes or tasks, such responsibility involving2
%a' "udgment and decision in determining plans and in using data to control
performance and progress against plans
%b' the guidance, integration, motivation and supervision of the personnel
composing the enterprise and carrying out its operations<
!rech Identifies four main elements of management2
1lanning 8 determining the broad lines for carrying out operations, preparing
methods bv which they are carried out and setting standards of performance
,ontrol 8 checking actual performance against standards to ensure satisfactory
progress and performance, and recording as a guide to possible future
,o4ordination 8 balancing and maintaining the team by ensuring a suitable
division of work and seeing that tasks are performed in harmony
Moti*ation 8 or inspiring morale ,etting members of the team to work
effectively, to give loyalty to the group and to the task, to carry out properly their
tasks, and to play an effective part in the activities of the organisation ?ith this
general inspiration is a progess of supervision or leadership to ensure the teams
are carrying out their activities properly
#%0E ANA'>!E!
3any other writers have provided an analysis of the elements of management
At first sight these analyses may appear to differ in certain aspects, but on closer
study they show a basic similarity 0ebate on the inclusion or exclusion of a
particular element of management tends to revolve round the use and
interpretation of different terms, and the emphasis which is placed upon them
5or example, what 5ayol calls command 8 maintaining activity among personnel
and getting optimum return from employees 8 might be taken to mean what
!rech refers to as motivation 8 getting members ot the team lo work effectively
and to carry out properly the activities allocated to them !rech does not use the
term organising but this appears to be covered under the headings of planning
and co8ordination
A=%0#&%> #6E !=$#)&NA%E !%A22
!ased on his experience as chief executive of the ,lacier 3etal .ompany
?ilfred %who became =ord' !rown defines the concept of a 6manager6 in terms of
someone who has more work than he or she can perform personally, who
arranges for some of this work to be carried out by others, and who is
accountable to a higher authority for the manner in which all of this work is
carried out !rown gives a boundary definition of a managerial role as2
@a role from which some work has to be delegated to subordinate roles #he
occupant of the managerial role is accountable for his subordinates6 work and
must at least have authority to veto the appointment of persons to the
subordinate roles, to insist that they be removed from these roles if they are
unsatisfactory, and to determine which portions of his own work shall be carried
out by each subordinate<
#his is a very demanding definition and to a certain extent idealistic (trict
adherence to these re&uirements, and in particular the authority to veto the
appointment of subordinates and to insist that they be removed if unsatisfactory
would probably rule out the ma"ority of people who actually carry the title of
manager in modern organisations #he definition does, however, remind us of
the changing nature of the extent of the manager6s individual authority over
subordinate staff
%0E %A!?! AN) ,#N%&$=%&#N #2 A MANAGE
Another approach to describing management is given by 0rucker who identifies
three tasks, e&ually important, but essentially different, that have to be
1' 5ulfilling the specific purpose and mission of the institution whether business
enterprise, hospital, or university
+' 3aking work productive and the worker achieving,
4' 3anaging social impacts and social responsibilities
#hese categories re&uire a combination of analytical ability, synthesising ability,
integrity human perception and insight, and social skill
0rucker argues that the traditional definition of management based on the
responsibility for the work of other people is unsatisfactory and too narrow and
emphasises a secondary rather than a primary characteristic #here are people,
often in responsible positions who are clearly 6management6 but who do not have
responsibility for the work of other people A person6s function and contribution
may be unaffected by the number of subordinate staff A (manager( is someone
who performs the tas.s of management whether or not he or she has
power o*er others.
) also suggests that just exactly who is a manager can be defined
only by that person(s function and by the contribution he or she is
expected to ma.e. And the function that distinguishes the manager abo*e
all others is the function no one but the manager can perform. %he one
contribution a manager is uni-uely expected to ma.e is to gi*e others
*ision and ability to perform. &t is *ision and moral responsibility that in the
last analysis define the manager.
%here are numerous other definitions of management. 3any of these
definitions reflect the influence of a particular approach to management thinking
- A (imon for example, sees management as synonymous with decision #ther examples include such definitions as (management is
delegation( or (the tas. of management is to create teams out of indi*iduals
#here are other definitions such as (the responsibility of management is to
achie*e results(/ or (management is the ordering and co4ordination of
functions to achie*e a gi*en purpose(, which tell us little about the actual
process of management #hese definitions may all be correct as far as they go,
but #N %0E& #@N AE %## NA#@ # %## 6AG=E %# 1#6&)E AN
A)EA=A%E )E!,&1%&#N #2 MANAGEMEN%.
E!!EN%&A' NA%=E #2 MANAGE&A' @#?
#he essential nature of managerial work is not easy to describe, therefore, as
aspects which are common in many applications escape us in others -owever,
if we look at how people at work actually spend their time, we should be able to
distinguish between those whose main occupation is the carrying out of discrete
tasks and the actual doing of work themselves, and those who spend
proportionally more of their time in determining the nature of work to be
undertaken by other people, the /lanning and organising of their work, issuing
them with instructions and giving advice, and checking on their performance
(Managing( and (doing(
!y distinguishing 6managing6 from 6doing6 in this way we can see management as
clarifying ob"ectives and the planning of work, organising thedistribution of
activities and tasks to other people, direction of subordinate staff and controlling
the performance of other people<s work #his provides us with a convenient
description and summary of managerial work as clarification of ob"ectives,
planning, organising, directing and controlling %(ee fig 1'
2ig. 7) summary of essential nature of managerial wor.
!oard of 0irectors %or e&uivalent'
0etermination of ob"ectives and formulation of policy for the organisation as a
Implementation of policy decisions and execution of work
.larification of ob"ectives
Attainment of given ob"ectives within policy guidelines
%he degree of emphasis gi*en to these different acti*ities may *ary widely/
howe*er/ from one manager to another. !ome managers are li.ely to spend
more time on certain acti*ities than other managers. %he application of
these acti*ities reflects a wide range of management practice and
managerial style.
#here are, of course many other ways of conceptualising the nature of
managerial work, and relying on the 6classical6 activities %or functions' of
management might, to some people, appear outdated -owever, in an
evaluation of the usefulness of the classical functions perspective for describing
managenal work, ( F .arroll and 0 F ,illen conclude2
#here seems to be some confusion about what managers do #he classical
functions still represent the most useful way of conceptualising the manager6s
"ob, especially for management education, and perhaps this is why it is still the
most favoured description of managerial work in current management textbooks
#he classical functions provide clear and discrete methods of classifying the
thousands of different activities that managers carry out and the techni&ues they
use in terms of the functions they perform for the achievement of organisational
#he setting of ob"ectives and formulation of policy takes place at different levels
in the organisation, but as part of the same process #he board of directors, or
similar body, establish ob"ectives and formulate policy %direction' for the
organization as a whole
3anagement is responsible for the implementation of policy decisions and the
execution of work designed to meet these ob"ectives -owever, as mentioned in
the discussion on levels of Organization in, it is not easy to distinguish between
policy and its execution in the same way that the board of directors are
concerned with planning, organisation and control as part of their responsibility
for the operations of the organisation as a whole, so the execution of policy will
involve the manager in decision making and the clarification of ob"ectives for
subordinate staff
)irection and moti*ation
-aving already identified direction %of the organisation as a whole' as a
responsibility of the board of directors it is tempting to use the term 6motivating6
instead of 6directing6 in our definition of the activities of management #his would
avoid possible confusion over terminology !ut is motivating an ade&uate
description) it is certainly part of the manager<s "ob to motivate staff but it
involves more than this (ubordinate staff also need development and guidance
#hey need to be motivated to perform well in the right areas #he manager has a
responsibility to see that subordinate staff are effective as well as efficient #heir
efforts must be directed towards the achievement of given ob"ectives in
accordance with stated policy
As we have seen, 6co8ordination is often included as one of the activities of
management !ut the harmonising of effort to meet ob"ectives %co8ordination' is
not so much a separate activity> it is of a more general nature and involves all
the activities of management .o8ordination, like communication and decision
making, is inherent in the process of management it permeates all the activities
of management and is descriptive more of how the work of the manager is
carried out
A popular *iew of management
0espite the view expressed by 0rucker, one of the most popular ways of
defining management is that it in*ol*es getting wor. done second4hand/
that is through the efforts of other people. 3anagers are "udged not "ust on
their own performance but on the results achieved by subordinate staff #here
are, then, many ways of looking at the meaning of management #he basic
criteria must be a compromise between the ideas of some of the more lucid
writers on the sub"ect !tewart attempts to integrate the *arious definitions
of management and summarises the manager(s job/ broadly defined asB
deciding what should be done and then getting other people to do it. A
longer definition would be concerned with how these two tasks are to be
accomplished #he first task comprises setting ob"ectives, planning %including
decision8making', and setting up formal organisation #he second consists of
motivation, communication, control %including measurement', and the
development of people
%he definition of management as (getting wor. done through the
efforts of other people( may not perhaps meet all criteria/ or
satisfy e*eryone(s perception of the nature of managerial wor.. &t
does/ howe*er/ ha*e the ad*antage of simplicity and focuses on
what in reality is at the heart of effecti*e management
%he importance of management
-owever the essential nature of managerial work is said to be, the importance
and responsibility of management are widely, and rightly recognised
Among the many writers emphasising this is 0rucker2 #he responsibility of
management in our society is decisive not only for the enterprise itself but for
management s public standing, its success and status, for the very future of our
economic and social system and the survival of the enterprise as an
autonomous institution
One means of describing and evaluating different styles of management is the
Blake and Mouton Managerial Grid/ first published in17D9, and restated in
17:B and 17BA #he managerial grid provides a basis for comparison of
managerial styles in terms of two principal dimensions2
i) ,oncern for production 4 that is the amount of emphasis which the manager
places on achieving production, getting results or profits, is represented along
the horiContal axis of the ,rid
ii) ,oncern for people 4 that is subordinates and colleagues as individuals, is
represented along the *ertical axis of the ,rid
$ach axis is on a scale of 1 to 7 indicating varying degrees of concern that the
manager has for either production or for people #he manner in which these two
concerns are linked together depends upon the use of the hierarchy, the (boss
aspect(, and assumptions that the manager makes about how to achieve
production with and through people, and the use of power
Management as an integrating acti*ity (%0E MANAGE&A' G&))
9 C2=,.08 C7=9 M+,+3)5),. T)+5 M+,+3)5),.
Thoughtful attention to needs of - Work accomplishment is from
8 people for satisfying relationships committed people, interdependence
leads to a comfortable friendly through a'common stake" in
7 organization atmosphere and- organization purpose leads to
ork tempo! relationships of trust and respect!
O03+,:6+.:2, M+, M+,+3)5),.
#de$uate organization performance
% is possible through balancing the
necessity to get out ork ith
maintaining morale of
& people at a satisfactory le'el!
I5A2@)0:6/)4 M+,+3)5),. A=./20:.8-O9)4:),*)
) *+ertion of minimum effort to get *fficiency in operations results
re$uired ork done is appropriate from arranging ork in such a ay
, from arranging conditions of that human elements interfere to a
Low to sustain organisation membership! minimum degree
, ) ( & % " 7 8 9
Low Concern for Production High
2ig. 8 %he managerial grid
2i*e basic combinationsB
!lake and 3outon define 6concern for6 not as how much concern, but as
indicating the character and strength of assumptions which underlie the
manager6s own basic attitudes and style of management #he significant point is
(how( the manager expresses concern about production or about people #he
four &uadrants of the ,rid provide five basic combinations of degree of concern
for production coupled with degree of concern for people2
7) the country club manager (7/D rating)/ low concern for production and
high concern for peopleE #he 1,7 rating managers believe that a contented
staff will undertake what is re&uired of them and achieve a reasonable level of
output /roduction is secondary to the avoidance of conflict and maintenance of
harmony among the staff 3anagers will seek to find compromises between staff
and solutions acceptable to everyone Although innovation may be encouraged,
they tend to re"ect good ideas if likely to cause difficulties among the staff
8) the team manager (D/D rating)/ high concern for production and high concern
for people 3anagers with a 7,7 rating believe in the integrating of the task needs
and concern for people #hey believe in creating a situation whereby people
can satisfy their own needs by commitment to the ob"ectives of the organisation
3anagers will discuss problems with the staff, seek their ideas and give them
freedom of action 0ifficulties in working relationships will be handled by
confronting staff directly and attempting to work out solutions with them
9) the organisation nian for middle4of4the4road) manager (;/; rating)/
moderate concern for production and moderate concern for people, #he A,A
rating is the middle8of8the8road management with the approach of 6live and let
live6 and a tendency to avoid the real issues #his style of management is the
6dampened pendulum6 with managers swinging between concern for production
and concern for people Gnder pressure, this style of management tends to
become task management %7,1' !ut where this strains relations and causes
resentment from staff, pressure is eased and managers adopt a compromise
approach If there is a swing too much the other way %towards 1,7' managers are
likely to take a tighter and more hardened approach
:) the impo*erished manager (7/7 rating)/ low concern for production and low
concern for people> 3anagers with a 1,1 rating tend to be remote from their
subordinates and believe in the minimum movement from their present position
#hey do as little as they can with production or with people #oo much attention
to production will cause difficulties with staff and too much attention to the needs
of staff will cause problems with production
and ;) the authority4obedience (or tas.) manager (D/7 rating)/ high concern
for production and low concern for people, 3anagers with a 7,1 rating are
autocratic #hey tend to rely on a centralised system and the use of authority
(taff are regarded as a means of production and motivation is based on
competition between people in order to get work done If staff challenge an
instruction or standard procedure they are likely to be viewed as uncooperative
!lake and 3outon then go on to provide a comprehensive analysis of each of
the ma"or ,rid styles in terms of2 motivations> managing conflict,8 behavioural
elements> management practice, conse&uences> recognising behaviour of the
,rid style> suggestions for change
2ramewor. for patterns of beha*iour
#hese five styles of management represent the extremes of the managerial ,rid
?ith a nine point scale on each axis there is a total of B1 different , @mixtures6 of
concern for production and concern for people 3ost people would come up with
a score somewhere in an intermediary position on the managerial ,rid
Although the managerial ,rid is a simplified concept it does provide a
framework in which managers can identify, study and review their patterns of
behaviour Instead of viewing management styles as a dichotomy of @either/or6,
!lake and 3outon claim the managerial ,rid illustrates that the manager can
gain the benefits of maximising, simultaneously, methods which are both
production8oriented and people8oriented !lake and 3outon maintain that the
7,7 position, although an ideal, is worth working for
!ased on their experience of using the original ,rid, !lake and 3outon give
three reasons why it is important to consider which style of management is used
to achieve production through people
7,7 style of management correlates positively with bottom line productivity
7,7 oriented managers en"oy maximum career success
#here is now greater knowledge about the correlation between extreme grid
styles of management, and mental and physical health
!lake and 3outon provide a self8assessment &uestionnaire in two parts 5irst,
there are five different descriptions of managerial behaviour which are to be
ranked A to 1 as most to least typical (econd, there is a series of five
statements relating to the different descriptions, under each of six headings2
%1' decisions,
%+' convictions,
%4' conflict,
%9' temper,
%A' humour and
%D' effort
5rom each heading is selected the one statement which describes best the
person6s behaviour Eesults obtained from the &uestionnaire give an indication
of the person6s likely dominant style of management Eesponses to the
&uestionnaire can be compared with those of typical managers who are
generally successful
)ominant style of management
5rom their research, !lake and 3outon found that managers tend to have one
dominant style of management which they use more often than any other #hey
found also that many managers have a 6back8up6 style which they adopt if their
dominant style does not work in a particular situation !lake and 3outon
suggest that the dominant style of management is influenced in any particular
situation by any of four conditions
#rganisation 8 the nature of the organisation in which the manager is employed,
and the extent to which there are rigid rules and regulations
6alues 8 the personal values, beliefs or ideals which the manager holds
concerning how to treat people or to manage results
1ersonal history 8 the deep8rooted personal history of the manager may be an
important factor, and lead to a preference for a particular approach because that
style may have been experienced fre&uently in the past
,hance 8 the manager may not have been confronted with, or had personal
experience of, alternative sets of assumptions about how to manage 6.hance6
has not provided the manager with an opportunity to learn
#rganisation de*elopment programme
!lake and 3outon have designed an organisation development programme
based on group dynamics which is aimed at bringing about a style of
management with a 7,7 concern for production and concern for people #he
programme consists of six phases divided into two parts /art one involves
management development through2
%i' laboratory8seminar training and introduction to the concepts of the ,rid> and
%ii' team building /art two involves helping managers work towards
organisation development through2
%iii' intergroup development>
%iv' designing organisational strategy>
%v' implementing development> and
%vi' consolidation and stabilising progress made during the earlier phases
@0A% MANAGE! A,%=A''> )#
%he first responsibility of any manager is to his employer %the shareholders'
but, unlike operatives, he has important responsibilities to other groups inside
and outside the company As a holder of some authority over subordinates he
must ensure that he uses that power lawfully and "ustly and that his subordinates
are not treated badly in any respect -e has a responsibility to customers in
terms of the &uality, reliability, delivery and cost of the product/service -e is
also responsible to the local community from whom the company draws its
resources and to which it provides wealth 5or example Hickers (hipbuilding
$ngineering =td %H($=' is the largest employer in !arrow #ens of thousands of
people rely on H($= for their income through employment or company pensions
If, through incompetent management, H($= were to go bankrupt or close down
operations in !arrow the town would be economically devastated
(imilarly company management is responsible to the national and local
communities for ensuring that the company doesn6t break any laws #hese days
that is an enormous responsibility because of the large number of laws which
affect companies employment, health and safety, pollution, financial etc
#here are several ways to describe managerial work ?e will use two
approaches ?e will deal ?ith managers in general 8 or general managers 8
recognising that in particular situations %eg different functions, levels of
seniority, etc' &uite different work patterns will exist
,A%EG#&E! #2 A,%&6&%>
#ypical categorisations are as follows2
/lan, Iplanning
Organise Eesource, Istaffing/organising
.oordinate, Idirecting/controlling
or 3anagers2 undertake certain functions, ie
&n more detail the beha*iour of managers (or leaders) can be categorised
J; /lanning/co8ordinating
J1 (taffing
J+ #raining/developing others
J4 0ecision making/problem solving
J9 /roviding information
JA $xchanging information
JD 3onitoring/controlling performance
J: 3otivadng/reinforcing
JB 0isciplining
J7 Interacting with outsiders
J1; 3anaging conflict
J11 (ocialising
.learly there are overlaps between categorisations
=!E #2 %&ME
#aking the eight @functions6 the following relative use of time might apply for a
typical general manager
F time used
1 /lanning +;
+ Eepresent 4
4 Investigate +A
9 1egotiate :
A .oordinate +;
D $valuate 1;
: (upervise 1;
B (taff A
#he above are 6sketches6 of what managers do It is appropriate now to ask
whether this is what should be happening 8 ie is this what good effective
managers do) ?e will see later that how a manager acts, leads, etc is a
function of many things personalities, circumstances, need, etc Any comments
here therefore can only be general -owever, some evidence suggests that
successful managers may devote more time/effort to these behaviours2
3anaging conflict
Interaction with outsiders
0ecision making
Gsing somewhat different terminology successful managers, it might seem, have
a bias towards or place an emphasis on2
Leeping close to customers
Interpersonal behaviour
lnvolvement ie 6hands8on<
?orking through people
Leeping things simple
Again, it is not appropriate to see these as recipes for success, or sufficient in
themselves for success, but rather as things often associated with the activities
ofsuccessful managers whose success is also dependent on many other
%0E MANAGE(! "#$
(imply analysing time or categorising behaviours does not tell us about the life
of a manager any more than a diary can tell us about the feelings of its owner
#he classical analytical approach
says something about management, but it is appropriate to take a different
perspective in order to say more #his was the approach of 3intzberg, who
contrasted 6folklore6 with 6fact6, and suggested2
3anagers are not primarily 6systematic6, but rather they work fast, on a
series of brief, often interrupted tasks #heir activities are fre&uently
3anagers do not have regular roles, rather they focus on exceptions,
interventions, etc, alongside certain 6ritual6 activities
3anagers do not rely on detailed, regular, documented, analysed
information, rather they favour verbal information and act intuitively
3anagement is not a clearly defined science, or even profession, as it relies
too much on "udgement, intuition, etc
(uch observations suggest a different @feel< for the manager6s "ob, with more of a
focus on action and less on analysis, more emphasis on intervention than on
organization, and more concern with interpretation than with planning #hus a
different model of managing is now available based on certain key roles, eg
&nterpersonal roles
&nformational roles
)ecision roles
Eesource allocator
%0E ,0ANG&NG "#$
3anagerial work is changing, because of the influence of2
7 New technology
8 ,hanging mar.ets
9 ,hanging culture
?ithin organisations there are2
M 3ore ways and means to take action and influence things
M 5ewer levels 8 ie organisations are becoming flatter
M #he distance between managers and non8managers is disappearing
M $xternal links are more important
M =ong careers %career routes, etc' are disappearing
(oon it may be difficult to identify those whose primary role is to manage, as
more people will have devolved authorities, and flexibility will be vital #his will
have implications for6managers6 who will need to2
5ind different sources of power
5ind different ways to motivate people
5ind different ways to 6add value6
5ind different ways to develop themselves
5urther information2 Eosemary (tewart, 3anagers and their Fobs, +nd edn,
3acmillan, =ondon %17BB'
%>1&,A' MANAGEMEN% !%=,%=E
#he diagram below is a general one which could probably be applied to many
types of reasonably large organisations from plc6s to state owned enterprises
#he essential difference between different organisations lies in the ownership
!elow that level the differences between, for example, a large plc and a state
enterprise such as #he /ost Office are fairly minimal #he number of levels in
the hierarchy shown is average =arge organisations such as (hell, I.I or ,$.
will probably have more levels %sometimes as many as ten or more' while small
ones, such as one8man businesses, may have as few as three
!ee notes below
O?1$E( 1
0IE$.#OE( +
,$1$EA= 3A1A,$E 4
($1IOE 3A1A,$E( 9
3I00=$ 3A1A,$E( 5
O/$EA#IH$( :
#he following diagram shows the detailed structure for a particular function, in
this case
-*.*/#0 1#.#-*/
2*.34/ 1#.#-*/2 5/4678T34. 1#.#-*/
21#00 14T4/ 6*5T! 1#.#-*/
#/1#T7/* W3.63.- 2*8T34.
45*/#T39*2 45*/#T39*2
"B T/) 2<,)06/:A 5+8 9) 98 +, :,4:@:4=+7 C627) .0+4)0;- 302=A6 21 A)2A7)
CA+0.,)06/:A6- 7:5:.)4 *25A+,:)6; 20 2./)0 203+,:6+.:2,6 20 :,6.:.=.:2,6 C/274:,3
*25A+,:)6- 32@)0,5),.;B 3n the case of a public limited company :plc; the oners are
shareholders :)<, no limit;! 1ost large 7= companies are plc's, ell-knon e+amples
being >ords, -*8, 1arks and 2pencer, 383, 2hell, #mstrad, 2ainsbury, There are se'eral
thousand such companies in the 7=!
The shareholders, ho may be indi'iduals or other companies, number many thousands :,
a large company! They share the profits and supposedly ha'e a say in the ay the
company operates through their 'oting rights :one 'ote per ordinary share;! 3n theory the
shareholders decide the policy of the company, - ho profits shall be distributed,
in'estment, products, mergers and takeo'ers - as ell as electing the directors! 3n
practice, most shareholders do not participate in such decisions, being content to lea'e
such important matters to the directors! 3n most companies a ma?ority of the shares are
oned by a small group of people ho therefore effecti'ely control the company!
This group may consist of the original founders of the company :often a family as in
2ainsbury's; or a group of directors or another company!
2B T/) 4:0)*.206 +0) =6=+778 6/+0)/274)06B There is no la to say that this should
be the case but most companies' internal rules stipulate it! 6irectors are usually one of
four kinds of people@
i; members of the original founding familyA
ii; e+perts in 'arious aspects of business - technology, finance, marketingA
iii; people ith "connections" - politicians :particularly e+-cabinet ministers;, famous
people in public lifeA
i'; senior managers of the company!
1ost 15's are company directors, including many :if not 'irtually all; Tories and some
0abour, but go'ernment ministers are forbidden by la from holding directorships for
ob'ious reasons! *+-o'errnnent ministers are much sought after by large companies
because of their e+perience, knoledge of go'ernment and contacts at a high le'el! They
may not ha'e any particular e+pertise in the companies business field but are 'ery 'aluable
in gi'ing prestige and respectability to a company! #n e+ample of this as the
appointment of 0ord 8arrington to the 8hairmanship of -*8, one of BritainCs largest
companies, as soon as he resigned from the -o'ernment o'er the >alklands crisis in ,98)!
De had been >oreign 2ecretary in 1rs! Thatcher's -o'ernment and as such had a 'ery
deep knoledge of international affairs and had dealt ith the heads of many o'erseas
go'ernments! -*8 relies hea'ily on foreign contracts, particularly in the de'eloping
countries, and 0ord 8arrington had particular e+perience of #frican states through his
in'ol'ement in the independence of Eimbabe! Therefore, despite ha'ing no particular
e+pertise in electrical engineering, he as 'ery 'aluable to -*8 as its leader!
6irectors make important long-term :say , to ,F years; decisions about the company's
future sub?ect to the appro'al of the shareholders! They recei'e fees :not a salary; for
their ser'ices hich may consist of attending a meeting of the directors se'eral tines a
year! .on-e+ecuti'e directors are not employees and so recei'e only fees and share
*+ecuti'e directors ork full-time for the company and are paid a salary as ell as
directors fees! #n e+ecuti'e director is usually a senior manager in charge of a ma?or
function such as finance or marketing! 2ome e+ecuti'e directors, although entitled to fees,
do not accept them! 1any company directors, particularly non-e+ecuti'es ' hold se'eral
directorships in a range of companies! The fees from these can pro'ide a large income to a
person ho is in theory unemployed! 6enis Thatcher is not an employee of any company
but recei'es income from se'eral directorships as ell as share di'idends! #nother ell
knon "professional director" is .orman Tebbitt ho mo'ed on to British Telecom!
6irectors are collecti'ely called a board :committee; and the board has a chairman! De
controls meetings and acts as a figurehead and spokesman for the company!
>ees and salaries paid to directors can be 'ery large and since directors are usually ma?or
shareholders their total income can be enonnous!The biggest companies do not necessarily
pay the highest salaries and fees to their directors! 3n the 7= one of the highest fees plus
salary is around G),FFF,FFF! The chairman of 2ainsbury's, 6a'id 2ainsbury, has recei'ed a
total gross income before ta+ of about G)F million including o'er G,%,FFF,FFF in share
di'idends alone! Digh directors fees and salaries are paid for to main reasons! # person
ith e+perience, e+pertise and business contacts may be orth the money he is paid! But
sometimes a company ill pay large fees or salary to a person to keep him in the company
hen he is offered a ?ob ith another, ri'al company!
3B T/) 3),)0+7 5+,+3)0 :or managing director if he is a director as ell; is
appointed by the directors to run the company day to day! De is the "chief e+ecuti'e" and
must translate the directors decisions into actual plans and targets for the company! De is
responsible for ensuring that those plans and targets are carried out and achie'ed! De
usually has specialist knoledge and e+perience such as engineering or finance but as the
general manager he ill depend on the e+pertise of the senior management team of hich
he is the leader! The skills he needs as general manager are managerial skills - ./) +9:7:.8
.2 *255=,:*+.)- *2204:,+.)- 203+,:6)- 5+D) 4)*:6:2,6- *2,.027 +,4 52.:@+.)B 3n large
companies he ill be a professionally trained person ith a degree and many years
e+perience in industry! 3n small companies he ill probably be a practical man ho has
risen up the hierarchy from the "shop floor"! 2alary le'els may be anything from G)F,FFF
per year in a small company up to G),FFF,FFF in a multinational corporation, ith all the
usual "perks" such as a car, free meals, company house, e+ecuti'e ?et etc!
4B S),:20 5+,+3)06 +0) +AA2:,.)4 98 ./) 4:0)*.206B They are specialists in charge
of a ma?or aspect of the company's business - production, finance, marketing, personnel,
research and de'elopment etc! they ork as a team under the leadership of the chief
e+ecuti'e! 2ome senior managers in some companies sit on the board of directors! 2alary
le'els range from G,%,FFF in small companies here they are usually promoted from
loer don the company to G)FF,FFF in large companies here they are usually
professionals recruited from outside the company!
%! M:447) 5+,+3)06 are in charge of a particular department under a senior manager
and are responsible for ensuring that their department performs its allotted tasks in the
company plan efficiently! 3n the case of a production department that means achie'ing
production plans on time and at minimum possible cost! >or e+ample, under a marketing
manager there may be a sales manager, an ad'ertising and publicity manager, a distribution
manager and a market research manager! # senior manager in charge of production ill
ha'e se'eral middle managers orking for him in charge of 'arious production
departments - machine shop, foundry, assembly department, toolroom, maintenance
department etc! 1iddle managers are usually practical people ith much knoledge and
e+perience of the products, processes and machinery in their department!!
Doe'er, in some large companies these days middle managers are being recruited direct
from uni'ersities because practical e+perience is not considered to be as important as
specialist management skills and knoledge of techni$ues such as computing and decision
- making! 1anagerial skills are common to all businesses, irrespecti'e of the product or
the technology! This trend is likely to spread to much of industry and the days of the
manager ho has "come up through the ranks are numbered!
%B S=A)0@:6206 :foremen; are in charge of a group of operati'es perfonning similar
ork in a department! >or e+ample in the electric motor department of an electrical
engineering company there may be se'eral sections each doing a particular part of the ?ob
of making motors - an armature section, a field inding section, an assembly section and a
testing section! *ach section ill ha'e a super'isor orking under the departmental
The super'isor's ?ob is a 'ery important one because he acts as a link beteen the
company management and the operati'es! De is responsible for ensuring that "the ?ob gets
done" ithout actually doing the ?ob himself De needs to ha'e a ide range of skills and
e+perience of products, production processes and techni$ues, machinery and the "human
skills" of organisation and moti'ation! >or that reason super'isors are almost alays
people ho ha'e been promoted from operati'e le'el in the same company! That in itself
is a possible source of problems for a super'isor! De is no longer E2,) 21 ./) 9286E but
neither is he a manager in many compames! ffis first responsibility is to his superior, the
middle manager, but he is also the leader of a team of operati'es ho he as once one of
and in order to do his ?ob properly he needs their trust, respect and cooperation! De often
feels di'ided loyalties and a common e+pression is "the man in the middle", lo'ed by no-
one and blamed by e'eryone hen things go rong!
To make matters orse, many super'isors are not ell paid for the difficult ?ob they ha'e
to perform! They are often on fi+ed salaries ith no e+tra payment for orking o'ertime
and are not included in bonus schemes! #lthough their basic pay is more than that of the
operati'es they super'ise, o'ertime and bonus payments can bring operati'es' ages
abo'e the foreman's! #nother problem faced by super'isors is that it is often assumed by
managers that they do not need any special training, their practical e+perience and
knoledge being considered sufficient to $ualify them to perform the ?ob effecti'ely! The
result is that many super'isors are Hthron in at the deep endC and ha'e to learn the ?ob as
they go along!
7B OA)0+.:@)6 are at the loest le'el in the company hierarchy! They are responsible for
out the ?ob for hich they are employed as effecti'ely as possible and for obeying the
orders of their super'isor! 3n most companies they comprise more than half the total
orkforce although, as ne technology is introduced, the proportion is falling and in
many companies they are no less than half! They may be anything from unskilled
labourers to highly skilled craftsmen! They ha'e no official poer in the company and are
usually the loest paid because of their lo le'el of responsibility! >or this reason many
operati'es ?oin trade unions in order to ha'e some poer o'er hat happens to them at
DIRECTORS - high poer, responsibility, pay!
long time perspecti'e!
:,1205+.:2, *255+,46
CUP; :don;
OPERATIVES - lo poer, responsibility, pay!
There are differences beteen management in the pri'ate and public sectors! These
differences arise from particular features of public sector organisations, such as@
the aims are concerned ith pro'iding a ser'ice for! and for the ell-being of, the
community rather than ith ?ust a commercial natureA
the scale, 'ariety and comple+ity of their operationsA
the tendency for them to be sub?ect more to press reports on their acti'itiesA
the political en'ironment in hich they operate, and in the case of local go'ernment,
for e+ample, the relationship beteen elected members and permanent officersA
the generally high le'el of trade union in'ol'ementA
the difficulties in measuring standards of performance of ser'ices pro'ided compared
ith profitabilityA
the demand for uniformity of treatment and public accountability for their operationsA
the tendency for more rigid personnel policies, for e+ample specific limitations on
le'els of authority and responsibility, fi+ed salary gradings based on general pay scales,
long-terrn career structures and set promotion procedures!
A ,=59)0 21 ./)6) 1)+.=0)6 *259:,) .2 0)6=7. :, :,*0)+6)4 9=0)+=*0+*8 <:./:,
A=97:* 6)*.20 203+,:6+.:2,6B
G),)0+7 A0297)56 21 5+,+3)5),.
Both pri'ate enterprise and public sector organisations, hoe'er, face the same general
problems of management! Both are concerned ith the efficiency and effecti'eness of their
operationsA ith the clarification of aims and ob?ecti'esA ith the design of a suitable
structureA and ith carrying out essential administrati'e functions! Basic principles of
management apply in any series of acti'ities in any organisation! The common acti'ities of
management apply to a greater or lesser e+tent in both pri'ate enterprise and public sector
organisations! Based on an analysis of management de'elopment in central and local
go'ernment I Bourn suggests management as a set of interrelated acti'ities@
:i; forecasting, setting ob?ecti'es and planningA
:ii; the definition of problems that need to be sol'ed to achie'e these ob ?ecti'esA
:iii; the search for 'arious solutions that might be offered to these problemsA
:i'; the determination of the best or most acceptable solutionsA
:'; the securing of agreement that such solutions should be implementedA
:'i; the preparation and issue of instructions for carr+ ing out the agreed solutionsA
:'ii; the e+ecution of the solutionsA
:'iii; the de'ising of an auditing process for checking hether such solutions are properly
carried out and, if they are, that they do in fact sol'e the problems for hich they there
:i+; the design, introduction and maintenance of the organisational structures hich are
most appropriate for these acti'itiesA
:+; the selection, training, de'elopment and management of the appropriate staff!
8learly, this set of acti'ities is of e$ual rele'ance to management in business organisations,
and can be seen as an e+tension of the generalised definition of clarification of ob?ecti'es,
planning, organising, directing and controlling suggested abo'e! #lthough greater
emphasis might be placed on certain acti'ities this analysis helps demonstrate the degree of
commonality beteen the basic process of management in both pri'ate and public sector
>rom time to time o'er the past hundred or more years there ha'e been periods hen
particular 'ies on management ha'e gained some broad degree of interest or support - but
often not for 'ery long! 9ies, philosophies or e'en theories of ho to manage ha'e
emerged and faded - but not usually totally disappeared - as each has contributed something -
i!e! something has been left behind to influence or to be absorbed into later philosophies or
theories! 3n this ay, management 'thought' has built up and accumulated! The brief history
belo selects some of these "theories" from the past hundred years! They address different
aspects - depending upon hat as seen to be important or particularly problematic at the
AAA02FB D+.)6 T/)5) M+:, A02A2,),.6 M+:, A/:7262A/8G
,88F-,9)F >unctionalism D >ayol #uthority
AAA02FB D+.)6 T/)5) M+:, A02A2,),.6 M+:, A/:7262A/8G
7nity of command
7nity of direction
8hain of command
,89F-,9)% 2cientific
> W Taylor
> B -ilbreth
8 Bedeau+
Work design
Work measurement
Workplace design
,9FF-,9(F 6ynamic
1 5 >ollett Work groups
,9)%-,9&% Duman relations * 1ayo 2ocial relations at
,9(F-,9"F /ational management 0 > 7nick
* > 0 Brech
5rinciples dran from
scientific management
,9&F-,9"F 1oti'ation theories # 1aslo Dierarchy of needs
,9%F-,97F Duman resources 6 1c-regor Worker moti'ation
:theories J and K;
,9%F-,97% 2ocio-technical
* Iac$ues
> *mery
* Trist
Work and organisation
as structures
,9%%-,9"% 1anagement of
5 6rucker
I Dumble
- 4dieme
4b?ecti'esA risksA
integration of
de'elopment, planning
and control
,9%%-,97% 4rganisational
8 #rgyris The indi'idual and the
4rganisational learning
,9"F-,97F 1oti'ation theories > Derzberg To-factor theory of
,9"%-,97% Iob design 0 * 6a'ies Iob satisfaction
Iob enrichment
,9"%-,98% 0eadership and
management styles
I #dair
/ Blake L I
Types of leadership
AAA02FB D+.)6 T/)5) M+:, A02A2,),.6 M+:, A/:7262A/8G
,97F-,98F 1anagement
/ /e'ans
/ 8o'erdale
#ction-based learning
1anagement learning
,97F-,98F 8orporate strategy 0 #nsoff 2trategy formulation
L implementation
,97%-,98F 1anagerial roles D 1intzberg Three key roles of
,98F- Total $uality
W * 6eming 3ncremental $uality
throughout the
,98F- 8ompetiti'e strategy 1 5orter 8ompetiti'e ad'antage
of firms
9alue chains
,98F-,99F Iapanese
/ Days
B #bemathy
World class
>urther information
6a'id 8lutterbuck and 2tuart 8rainer, 1akes of 1anagement, 1acmillan, 0ondon :,99F;!
:8hairman, 24.K 8orporation; Iapan
1anagement really has ?ust to responsibilities, it seems to me! >irst it is the ?ob of
management to establish an atmosphere in hich people ho ha'e committed themsel'es
to the organisation can find a ?ob that e+cites them, that challenges their best efforts, so
they can flourish!
1anagement establishes this atmosphere in a 'ariety of subtle ays - by encouraging
people to e+plore the unob'ious, by being prepared to reard the craziness that is a 'ery
common guise of genius, but most fundamentally by letting people kno that they can
depend on management's support - not only on the ?ob but in e'ery aspect of their li'es!
The other important ?ob of management is to set out 'ery carefully <)77 4)1:,)4 *25A+,8
32+76! 3 belie'e this is the key to setting-off the creati'e spark that is in e'erybody! The
goals must be challenging but achie'able, and hen achie'ed they must contribute to the
company's competiti'e position - hich is not! so easy to see three or fi'e years ahead!
.e'ertheless, it is critical to set the right goals!
CM+0*/ "3> M+8 "8;
:8hairman, Toyota 1otor 8orp!; Iapan
1y grandfather, founder of the Toyota -roup, 2akichi Toyoda, and my father =iichiro
Toyoda, founder of Toyota 1otor 8orporation, had to characteristics in common@
P)06:6.),*) - *'en as failure after failure piled up, they ne'er lost their ultimate
'ision! The groundork of manufacturing is laid bit by bit, by one's on creati'ity
and planning!
L2@) 21 ./) 1+*.208 17220 - 1y father used to say '#ny engineer that doesn't need to
ash his hands at least three times a day is a failure!'
3 belie'e that this kind of spirit is essential to manufacturing, and should ne'er be
We make automobiles! #utomobiles help people lead richer li'eso and our strong ties ith
the parts and materials industries contribute to social prosperity! Therefore, the people
ho make automobiles are orking for the greater good of society!
The same is true for people ho ork in manufacturing in general! The problem is, do
these people actually feel that they're orking for the benefit of societyM 3f they do, it
shos in their ork! 3t makes them ant to make e'en better products! They build things
from their heart, like they ere making them for their on best friends!
3 think that manufacturing ill alays need this kind of attitude! .o manufacturing
company ill e'er do ell if they are concerned only ith calculating profits!
:Iune ,99(;