Leadership

Difference between management and leadership:

“Leadership is not about the leader, it is about he or she builds the confidence of everyone else.”(Kanter, 2004)

The two terms managers and leaders to some may not seem as two different concepts, in fact there is a distinction between them. In definition, a leader is someone who people naturally follow through their own choice. (See, 2009) Leadership involves guiding staff towards the aims and objectives of the organisation. This includes motivating and encouraging work members and enabling their followers to function properly. Leaders adopt a more personal and active attitude towards potential goals.

Whereas a manager is someone who controls and resources. A manager must be obeyed at all times. The main aim of a manager is to maximise the output of the organisation through directorial implementation organisation. Managers involves co-ordinating the activities and assigning roles of members of staff. They are more concerned with planning and controlling to achieve the results they desire. They tend to adopt an impersonal attitude towards goals with a low emotional level. (Mullins, 2007)

Blake and Mouton ‘Managerial grid’

A well-known structure for thinking about a leader's 'task versus person' orientation was developed by Robert Blake and Jane Mouton in the early 1960s. It is called the Managerial Grid, and it plots the degree of task-centeredness versus person-centeredness and identifies five combinations as distinct leadership styles.

The Managerial Grid is built on two behavioural dimensions:
Concern for People - This is the degree to which a leader considers the needs of team members and their interests.

Concern for Production - This is the degree to which a leader highlights existing objectives, organizational efficiency and high productivity when deciding how best to accomplish a task.

Using the axis to plot leadership 'concerns for production' versus 'concerns for people', Blake and Mouton defined the following five distinctive leadership styles:

Impoverished Leadership - Low Production/ Low concern for PeopleThis type of leader is mostly unsuccessful as he/she has neither a high concern for productivity and for getting the job done, nor for creating a work environment that is pleasing and motivating. This results in de-motivated staff and a disorganised workplace. Objectives are not completed.

Country Club Leadership - High concern for People/Low ProductionThis style of leadership is most concerned about the needs and feelings of members within the business. These people operate under the theory that as long as team members are happy and satisfied then they will work hard and continue to be motivated. However production suffers due to lack of direction and management.

Middle-of-the-Road Leadership- Medium Production/Medium concern for PeopleThis style is a balance of meeting the requirements of a steady production as well as keeping a concern for the employees within the firm. Their production level is average and so is the concern for people making either side partial. The problem with this type of management is that the production needs and the people needs are not fully met and settle for a standard performance.

Produce or Perish Leadership - High Production/Low concern for PeopleAlso known as Authoritarian Leaders, managers in this category believe strict rules and procedures should be applied to employees for the need of efficient production. Punishment is considered the most successful way to motivate staff. High production is achieved at the end but causes dissatisfaction of employees.

Team Leadership - High Production/High concern for PeopleAccording to the Blake Mouton model, this is the ideal managerial style as both production needs and people needs are taken upon. The principle here is that employees are involved in understanding the needs for organisational production. When employees are devoted to their work, and have a trust in the organisation's success, their needs and production needs match. This creates a high-quality team environment, which leads to high satisfaction and motivation and, as a result, high production. (Mindtools, 2009)

During my work experience someone that I have worked for is the body shop. I feel that the store manager’s leadership style is Autocratic and suits the produce or perish leadership on Blake and Mouton's grid. I believe this because the manager mainly took power of every decision that was made and these decisions were influenced on whether it would generate worthy results for the production of the company. The manager has strict rules towards dressing appropriately with the Body shop uniform that was provided and made sure we were wearing the body shop member card hanging around our neck to promote this to the customers we were dealing with.

A Strong Leader in my Eyes...

In my opinion Barak Obama who is the current president of United States is a very powerful leader for numerous reasons. Being the first African American to be elected as president in January 2009 was quite an achievement in itself. Obama is described as someone who is convincing. His influential messages of hope and possibility grew from listening to what Americans want and have inspired the public into believing he can bring change. He has given America an exciting and optimistic vision of the future. Obama is aware of his image and of how he portrays himself, showing his values, his self-regard and his expressive self-awareness which is reflected in his speeches. Good leaders are usually good communicators. Like Lincoln and Churchill, Obama has been successful by his good communication skills and the way he delivers his highly dominant speeches which reaches out to the people of his country. Good leaders need to have the right individuals around them. Obama has been thought to have respect and reliability for those who work for him which makes him a likable person. Everything he has promised to do have been done which shows he is genuine in his words and actions and makes the public believe he is by their side. Another quality of a good leader is you have to be able to adapt quickly and stay flexible. Obama showed a respectable ability to act fast in response to the financial crisis and recession that struck suddenly and considered ways to overcome this. He maintains amazing composure when in a crisis keeps a cool mind and remains in control when under pressure. As I have explained, he has many qualities that support he is a strong leader

In Conclusion...

Overall, one of the things I have learnt is the difference between management and leadership. At first I thought they had the same meaning but even though they sound similar, they include different traits of controlling a team. The managerial grid explains the theory behind the different combinations of leadership styles and that there are different types of leaders. Finally I got an insight on who are strong leaders and why they are believed to be. I have gained knowledge about Barak Obama and the qualities he has that make him an excellent leader.

References:
Roseabeth Moss Kanter, Leadership and the psychology of turnarounds, Random house (2004), p.235-236.
See (2009). Difference between management and leadership. [Online]. Available from: http://www.see.ed.ac.uk/~gerard/MENG/ME96/Documents/Intro/leader.html
Mullins, L. (2007), Management and organisational behaviour, The nature of leadership, eighth edition, Chapter 10, page 365)

Mindtools (2009). Blake Mouton Managerial Grid. [online]. Available from: http://www.mindtools.com/pages/article/newLDR_73.htm

Organisational culture

Visible aspects of culture of The Body shop

The term ‘culture’ is the shared attitudes and behaviour that are features of a particular social group. In the same way within an organisation, societies build up on their own identity so people working within the organisations develop their own culture. There are two distinct aspects to organisations the first is the visible aspects- the structure of the physical and social environment. The second is hidden aspects and is what goes on despite the formal structure. (Mullins, 2007)

During my two week work experience at the Body shop I had noticed the main visible aspects that struck me are the main structure of the store and the colour theme. Throughout the store the colour green is publicised and this represents the image of nature. The body shop uses natural ingredients in their products to enhance natural beauty. As soon as you step into the shop a fresh satisfying aroma can be noticed which again gives the sense of natural feeling which portrays the body shop image. In addition another example is that the general atmosphere was very calm and a glow can be seen. The other staff members were all very friendly with the customers and would be willing to help under any circumstances. With just a smile to a customer as they would walk into the shop would make them very approachable. I had noticed that the staffs were incredibly helpful if any of the customers wanted to try out testers and also gave them advice of what ingredients the product contained and how useful it is to them. Another example is the dress code of the staff members. They all had a professional look to their appearance, similar to a pharmacist, and as they are the ones who are serving the customers, this appealed them and would make the customers ask advice from the staff. All staff as well as myself had to wear the body shop membership ‘love your body’ card around our necks to promote this discount card.

The hidden aspect of the culture of Body Shop are all the values the company supports such as no animal testing, community trade, human rights and protecting the planet are all traits in the culture of this business as well. It holds many campaigns and has its own charity foundation that raises funds for these causes. Community Trade has numerous benefits for the company, their customers and suppliers. Community Trade allows their suppliers to build better futures for themselves and their communities. Another hidden example is the importance of the customers. The body shop is seeking new ways to improve their business practices and reduce the amount carbon footprint produced. They have introduced energy-awareness training for all store staff members. Another example is the Body Shop has always believed keenly that animals should not be used for cosmetic testing. Holding campaigns and charities was an attribute I wasn’t aware of until I had completed my work experience. Generally every business wants to increase on its profit; however this wasn’t much of a concern to the business and helping provide the best for its customers and be fair to its suppliers was an unseen element to the culture. http://www.thebodyshop.com/_en/_ww/values-campaigns/index.aspx?

Four types of culture:

Power culture - This culture is all about one or two person being in charge, and being the main decision makers. This type of culture is normally in a small organisation. An example of this type of culture would be a partnership business such as a Hairdresser. The 2 business partners would be the boss of the business and would make most of the decisions in the business like the pay and what role should they do. There won't be any conflict as there will be only one person making final decisions. However the drawback of this type of culture is that it can de-motivate staff, as they have to do as they are told and don’t have much of a say.

Role culture - This culture is very similar to a style of corporate culture, where organisations are split into different departments’ delivering various functions and each individual within the function is assigned a particular role. An example of this type of culture is the Ealing council where they are different departments such as the finance department or HR department etc. Every department has a manager or director who is in control of the department. The benefit of a role culture is each department is specialised to carry out the specific roles of the company by their job description and this should increase efficiency for the company.

Task culture - A task culture refers to a team related approach to complete a particular task. They have certain goals and this has to be achieved within a certain time. For example the NASA organisation is part of this culture as they are put to work as a team and manage a mission. The advantages of this type of culture is that staff will fell motivated as they are allowed to make their own decisions within the team, and feel important having been given a huge responsibility.

Person culture - This type of culture is mostly adapted by self employed employees, where the individual makes decisions and the aim are the centre focus of the business. For example an architect belongs to this culture. An architect will serve himself within the job. He will be in control of the design work in the project. The advantage of this is that the individual is in charge of most of the decisions.

Problems trying to classify culture onto one of the four types...

In my opinion I think that the main problem of trying to classify culture into one of the four types as described earlier is that some organisations may have different features of different cultures inside the business. A business cannot be categorised in only 1 culture. For example an organisation such as House of Fraser, is large organisation and has several different departments and in their stores. One department may have a role culture as each individual has different roles; either working as a sales assistant on the shop floor or a supervisor. Power culture may be visible and they would be the top managers who are in control of maybe a chain of House of Fraser department stores. There may be team related jobs in which a group would need to carry out the tasks or projects for example the human resources department; this would fit in a task culture.
http://www.thebodyshop.co.uk/_en/_gb/index.aspx

In my opinion the company I feel that has a strong culture is The body shop. The reason for this is because it has a good reputation and is well known for its products. The body shop logo has become a brand in itself and is recognisable amongst consumers. It is known to sell a wide range of natural products that fits with the consumers requirements. It is known to be a trademark for natural and ethical beauty brand against other top hair and beauty brands such as Clinique and Dior. Not only does it sell a service but it is very passionate about living their values such as against cosmetic testing on animals, fair community trade and protecting our planet, which I think is very respectable.

“The business of business should not just be about money, it should be about responsibility. It should be about public good, not private greed.” Dame Anita Roddick, Human Rights Activist. Founder of The Body Shop.

In conclusion...

Overall culture is very important within an organisation because it gives an organisation its own identity and uniqueness. The culture of a business often occurs automatically as the way employees are treated. An organisation has to make sure that the visible aspect of culture is appealing which makes the business a success. The hidden aspect of culture is also important for the business because it affect the visible aspects. One of the findings I learnt was each business has a culture on the technique they run.

Reference:

Mullins, L. (2007), Management and organisational behaviour, organisational culture, eighth edition, chapter 19, page 719)

http://www.thebodyshop.com/_en/_ww/values-campaigns/index.aspx
Notes and my own understanding from Marys lecture on organisation culture, week 4.

Improving staff performance

Difference between content and process theories...

• Content theories- This explains what motivates individuals at work, emphasising on the nature of needs. This identifies the goals they want to follow in order to satisfy these needs. The main theories in this category are Maslow’s Hierarchy of Needs, Hertzberg’s two-factor theory, Alderfer’s ERG theory and McClelland’s achievement motivation theory. (Mullins, 2007)

• Process theories- This explains what goals the individual selects to have motivated them. Attempts to justify how the actions necessary influence the change in behaviour, which make up motivation. There are three main theories which covers the process theory and they are:

1. Expectancy theory- Vroom's Expectancy Theory is one of the most popular motivational theories. This theory suggests that the amount of effort that is put in will lead to the achievement of the performance. Vroom suggests that an individual is motivated by the outcome (Reward); the goals are also a vital part of the equation, as you want the reward to be your personal goal. This great motivational theory can be used in just about any circumstances, whether it is a group or a single person, huge company or small workplace. This model is influenced by certain personal and environmental factors. There are three variables that account for this. Expectancy being the first is about having the ability and the skills to get the job done. The more skilful the worker is the greater the performance. This leads to first-level outcomes. The second variable is the instrumentality which means to what extent you achieve the first level outcomes will lead to second-level outcomes. This says that if you perform well the higher the chance you are into getting to the outcome. This can be affected by having a clear knowledge between the performance stage and outcome stage. The final variable is Valence. The individual can then change their level of effort and choose different behaviour according to the value they place on the desired outcome. (Arrod, 2009)

2. Equity theory- This theory was established by John Stacey Adams. Equity Theory of motivation demonstrates the relationship between people’s feelings and how fairly an employee notices he is treated and how hard he is motivated to work. Adams called personal efforts and rewards as 'inputs' and 'outputs'. Inputs being the work employees put in and the skills they use. Outputs are everything employees get in return. Adams key idea behind the Equity Theory is that discovering workers need a balance of what they put in to their jobs and what they get from them will ensure positive impact. According to the Equity Theory, the most highly motivated employees are the ones who perceive their rewards are equal to their contributions. If he feels that he is working and being rewarded at about the same rate as his peers, then he will judge that he is being treated fairly. (Buzzle, 2009)

3. Goal theory- The goal theory was based mainly on the work of Dr Edwin Locke. The basic idea of this theory is that people’s goals and objectives play a big role in selecting behaviour. Locke suggests that the individual looks at the importance of the value and this adds emotion and desire. People attempt to achieve their goals so suit their desires.The level of the goal difficulty can influence the actions and work behaviour made which will consequently result in feedback and a greater level of motivation. (Mullins, 2007). Goal setting theory is generally accepted as among the most convincing and useful motivation theories in industrial and organizational psychology, human resource management, and organizational behaviour (Mindtools, 2009)

Company Examples:
Tesco plc; How do Tesco motivate their employees..?

"Tesco is a great place to work - whether you're planning the layouts of our aisles, sourcing products in Thailand or improving our supply chain in Turkey."
Tesco is one of the UK’s leading super markets and has expanded overseas across 12 different countries. The first thing you'll notice is that they have always said to ‘always put our customers first’ - which means treating the staff right, too. “We have become a market leader by doing the little things that really matter for our customers and staff.” Tesco believe in treating all staff members with respect and giving everyone equal opportunities to get on with the work.
Rewards and benefits when working for Tesco:

Being a staff member for Tesco is not all about just getting good pay but offering great opportunities such as a whole package of other ways to help you make more of your money, secure your future and look after your health. (Tesco-careers, 2009)
• Tesco give free shares to everyone who's worked with the company for one year at the end of the financial year. These Tesco shares are held in trust for 5 years, and after that you can take them, tax-free.
• Proportion of the profit is shared amongst the staff, based on salaries.
• As you earn savings can be made. Staff members who've been working a year get the option to save up to £50 every 4 weeks for either 3 or 5 years and receive a tax-free bonus at the end.
• Support flexible working, offering part-time roles and encouraging job-sharing opportunities and shift-swapping where possible.
• The staff loyalty card that gives you 10% discount and Clubcard points on most Tesco products.
• Staff cafe and restaurants.
• Training they need to do their job and to develop their careers at Tesco. Development programmes specifically designed to help them gain the experience and skills they need to move on to the next Tesco challenge. It aims to develop a combination of leadership, general and operating skills through 'on and off' the job experiences and a clear process that is designed to provide transparent feedback and coaching.
• As well as pension provision you have access to a life assurance scheme that will provide financial protection for your family.
• There are discounts on theme parks, holidays and gym membership that are available all year round for Tesco staff members.
• Great discounts with top healthcare companies.

British Airways; How do BA motivate their employees?

British Airways is all about bringing people together, and taking them wherever they want to go. This applies equally to their employees and the 36 million people who travel with BA every year. It's about offering greater diversity, more development, better training and more valuable experience. BA’s challenge is to invest in their employees and their futures. BA can only achieve their business goals when their employees realise their full potential. (British Airways Jobs, 2009)
Rewards and benefits for BA staff
British Airways offers highly attractive rewards packages such as:
• All training and development is built on a firm commitment to releasing and maximising the full potential of every British Airways employee.
• Opportunities for reduced air fare travel and travel discounts.
• Generous holiday entitlement.
• Contributory pension and private healthcare schemes.
• Profit share scheme.
• Bonuses
• Employee share scheme.
• Superb sports and social amenities & opportunity to join BA Clubs.
• Subsidised staff restaurants.

Tesco’s Motivation Model...

The main reason why motivation theories are useful is that they can be used to identify the main factors that help motivate an individual. This will mean that the business will perform better. Tesco has given emphasis on content theory particularly that of Hertzberg hierarchy of needs. The way Tesco motivates its employees it can be said that they satisfy the majority of the hierarchy.

• Physiological needs- By offering a competitive salary, pleasant working conditions, staff cafe, flexible working.
• Safety needs- pension provision ,life assurance scheme,
• Social needs- equal opportunities, friendly environment, discounts on theme parks, holidays and gym membership
• Ego/esteem needs- Tesco shares are held in trust for 5 years, option to save up to £50 every 4 weeks for either 3 or 5 years and receive a tax-free bonus
• Self- actualisation needs- Training they need to do their job and to develop their careers at Tesco
A process theory which Tesco appear to use is the Vroom’s expectancy theory. The amount of effort that is put it by working efficiently will lead to a high performance and achieve many staff benefits and rewards.

Conclusion:

In conclusion, both Tesco and BA have similar ways of motivating employees, either by content theory or process theory. Then again individuals can be classified into the separate categories identified in the various theories be a few individuals whose motivational factors will be hard to identify. As these two are large and well known organisations, clearly their methods of motivating employees is very successful.

References:

Management and organisational behaviour, Laurie J. Mullins, Eighth edition, 2007 Chapter 7, p.256

Arrod (2009) Expectancy theory of motivation [online]. Available from: http://www.arrod.co.uk/archive/concept_vroom.php [Assessed 10 October 2009].

Buzzle (2009) Equity Theory [online]. Available from: http://www.buzzle.com/editorials/6-24-2006-100325.asp [Assessed 10 October 2009]

Mindtools (2009) Goal setting theory [online] Available from: http://www.mindtools.com/pages/article/newHTE_87.htm [Assessed 10 October 2009]

Tesco-careers (2009) Rewards and benefits [online]. Available from: http://www.tesco-careers.com/home/working/rewards-and-benefits

British Airways jobs (2009) Careers [online]. Available from: http://www.britishairwaysjobs.com/baweb1/tpl_ba01.asp?newms=info3 [Assessed 13 October 2009]