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MANAGEMENTAND ORGANISATIONALBEHAVIOUR

Visitthe Managementand Organisational Behaviour, Seventh Edition CompanionWebsiteat www.booksites.net/mullins tofindvaluable student learning materialincluding:

■ Multiplechoiceandshortanswerquestionstohelptestyourlearning

■ TechnologySolutions–shortwebarticleswhichexplorefurtherthe managerialimplicationsoftechnology

■ Weblinkstorelevantsitesontheweb

■ Anonlineglossarytoexplainkeyterms

Aboutthe author

Laurie J. Mullins wasformerlyprincipallectureratTheBusinessSchool,University ofPortsmouth.Beforetakingearlyretirement,Lauriespecialisedinmanagerial andorganisationalbehaviour,andmanagingpeopleatwork,andwassubject leaderforthebehaviouralandhumanresourcemanagementgroup.

Lauriehadpreviousexperienceofbusiness,localgovernmentanduniversity administrationandhumanresourcemanagement.Foranumbrofyearshewas alsoamemberof,andaninstructorin,theTerritorialArmy.

Hehasundertakenarangeofconsultancywork;servedasavisitingselector forUNAISandVSO;actedasadvisorandtutorforanumberofprofessionaland educationalbodiesincludingUNISONEducation;andservedasanexternal examinerforuniversitydegreeandpostgraduatecourses,andforprofessional organisations.

Lauriehasundertakenayear’sacademicexchangeintheManagement Department,UniversityofWisconsin,USA,andavisitingfellowshipattheSchool ofManagement,RoyalMelbourneInstituteofTechnology(RMIT)University, Australia,andgiveninvitedlecturesinTheNetherlandsandSouthAfrica.Laurie isalsoauthorof HospitalityMangementand Organisational Behaviour.

Aboutthe contributors

Linda Hicks isaCharteredOccupationalPsychologistwhospecialisesin managementdevelopmentandcoachingwithinherconsultancy‘ZestforChange’.

David Preece isProfessorofTechnologyManagementandOrganisationStudiesin TheBusinessSchool,UniversityofTeesside.

Seventh Edition

MANAGEMENTAND ORGANISATIONAL BEHAVIOUR

Formerly,PrincipalLecturer

TheBusinessSchool

UniversityofPortsmouth

ToPamela AndforKerrieandTracey, andPaul

PearsonEducationLimited

EdinburghGate

Harlow

EssexCM202JE

England andAssociatedCompaniesthroughouttheworld VisitusontheWorldWideWebat: www.pearsoned.co.uk

Firstpublishedin1985inGreatBritainunderthePitmanimprint Fiftheditionpublishedin1999byFinancialTimesPitmanPublishingimprint Sixthedition2002

Seventh edition 2005

©LaurieJMullins1985,1989,1993,1996,1999,2002,2005

©Chapter9LindaHicks1993,1996,1999,2002,2005 ©Chapter10LindaHicks1999,2002,2005 ©Chapter17DavidPreece1999,2002,2005

TherightofLaurieJMullinstobeidentifiedasauthorofthisworkhasbeenasserted byhiminaccordancewiththeCopyright,DesignsandPatentsAct1988.

Allrightsreserved.Nopartofthispublicationmaybereproduced,storedinaretrieval system,ortransmittedinanyformorbyanymeans,electronic,mechanical, photocopying,recording,orotherwise,withouteitherthepriorwrittenpermissionofthe publisher,oralicencepermittingrestrictedcopyingintheUnitedKingdomissuedbythe CopyrightLicensingAgencyLtd,90TottenhamCourtRoad,LondonW1T4LP.

Alltrademarksusedhereinarethepropertyoftheirrespectiveowners.Theuseofany trademarkinthistextdoesnotvestintheauthororpublisheranytrademarkownership rightsinsuchtrademarks,nordoestheuseofsuchtrademarksimplyanyaffiliationwith orendorsementofthisbookbysuchowners.

ISBN0273688766

British Library Cataloguing-in-Publication Data AcataloguerecordforthisbookisavailablefromtheBritishLibrary.

Library of Congress Cataloging-in-Publication Data Mullins,LaurieJ. Managementandorganisationalbehaviour/LaurieJ.Mullins.--7thed. p.cm

Includesbibliographicalreferencesandindex. ISBN0–273–68876-6(pbk.) 1.Organizationalbehavior.I.Title

HD58.7.M852004 658--dc22

1098765432 0908070605

Typesetby30inStoneSerif PrintedandboundbyMateu-Cromo,ArtesGraficas,Spain

2004046919

The publisher’s policy is to use paper manufactured from sustainable forests.

CONTENTSINBRIEF

‘OH,GREATSPIRIT, GRANTTHATIMAYNOT

CRITICISEMYNEIGHBOURS

UNTILIHAVEWALKEDAMILE INTHEIRMOCCASINS.’

TraditionalNative-American saying

CONTENTSINDETAIL

Exhibits, Managementin Action, Case Studiesand BusinessPress xiv

In acknowledgement and appreciation xvii

Publisher’sacknowledgements xviii

Guided tour ofthe book xx

Guided tour ofthe Companion Website xxii

Part1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR

1 Introduction 3

Aboutthisbook4

Theaimsofthisbook4

Theseventhedition6

Yourstudyofthebook16

Thechangingnatureofworkorganisation17

Thestudyofmanagementandorganisational behaviour19

Theuseofcasestudies20

2 The Nature ofOrganisational Behaviour

25

Themeaningoforganisationalbehaviour26

Influencesonbehaviourinorganisations27

Behaviouralscience–amultidisciplinaryapproach29

Theimportanceofpeopleandorganisational behaviour30

Organisationalmetaphors32

Orientationstoworkandtheworkethic33

Managementasanintegratingactivity34

Thepsychologicalcontract37

Changingnatureofthepsychologicalcontract39

Organisationalpractices40

ThePeterPrinciple40

Parkinson’sLaw41

Theneedforacross-culturalapproach42

Isorganisationalbehaviourculture-bound?43

Modelsforunderstandingtheimpactofculture44

Fivedimensionsofculture:thecontributionof Hofstede47

Culturaldiversity:thecontributionofTrompenaars49

Summary:convergenceorculture-specific organisationalbehaviour51

Case study2.1: EricandKipsy:complexitiesof managementandorganisationalbehaviour56

3Approachesto Organisation and Management 65

Managementtheory66

Developmentsinmanagementandorganisational behaviour66

Theclassicalapproach67 Scientificmanagement69

Relevanceofscientificmanagement71 Bureaucracy74 Criticismsofbureaucracy75

Evaluationofbureaucracy76

Structuralism78

Thehumanrelationsapproach78

Evaluationofthehumanrelationsapproach80

Neo-humanrelations81

Thesystemsapproach82

Thecontingencyapproach84

Otherapproachestothestudyoforganisations84

Thedecision-makingapproach85 Socialaction85

Anumberofdifferentapproaches87

Postmodernism87

Relevancetomanagementandorganisational behaviour89

Japanesemanagement90

Towardsascientificvalueapproach?91

Benefitstothemanager93

Managementin Action 3.1:Japanesemanagement95

Case study3.1: HelgatonLtd:organisationaltheory inpractice102

Part2

4 The Nature ofOrganisations 113

Thecontextoftheorganisation114

Theformalorganisation115

Basiccomponentsofanorganisation117

Privateandpublicsectororganisations118

Productionandserviceorganisations120

Typesofauthorityandorganisations121

Theclassificationoforganisations122

Primebeneficiaryoftheorganisation122

Primaryactivityoftheorganisation123

Theorganisationasanopensystem124

Interactionswiththeenvironment126

Thecomparativestudyoforganisations127

Organisationalsub-systems128

Theanalysisofworkorganisations129

Contingencymodelsoforganisation131

Theinfluenceoftechnology132

Informationtechnology133

Managingtechnicalchange134

Theinformalorganisation134

Theorganisationofthefuture137

Organisationalgoals137

5OrganisationalGoals, Strategyand Responsibilities 144

Thenatureoforganisationalgoals145

Thefunctionsofgoals146

Integrationofgoals147

Classificationoforganisationalgoals148

Alterationofgoals149

Organisationalideologiesandprinciples150

Missionstatements151

Objectivesandpolicy152

Theprofitobjective154

Fallacyofthesingleobjective155

Theneedforstrategy157

Theconceptofsynergy158

SWOTanalysis159

Themanagementofopportunitiesandrisks160

Socialresponsibilitiesoforganisations161

Codesofconduct162

Organisationalstakeholders163

Valuesandethics166

Corporatesocialresponsibility167

Businessethics168

Relatedlegislation170

Anintegratedapproach171

Managementin Action 5.1:IBMCodeofConduct177

Case study5.1:Mergersandacquisitions:the consequencesofexpansionatSquareDealplc182

Case study5.2:Welcometotheparty:homeselling withTop-to-Toe183

Principlesofmanagement197

Managementasasocialprocess199

Thetasksandcontributionofamanager199

Essentialnatureofmanagerialwork200

Theeffortsofotherpeople202

Managementinserviceindustries203

Managementinprivateenterpriseandpublic sectororganisations203

Theworkofamanager206

Managerialroles207

Behaviourpatternofgeneralmanagers209

Determiningwhatrealmanagersdo210

Patternsofmanagerialworkandbehaviour210

Theattributesandqualitiesofamanager211

Managersofthefuture?214

Managementin Action 6.1:Therolesofthe managerandtheIndividualManagementModel217

Case study6.1:Whatismanagement?Defining themanager’srole227

7ManagerialBehaviour and Effectiveness

236

Managerialstyleandbehaviour237

Managers’attitudetowardspeople238

Japanese‘TheoryZ’environment240

TheManagerial/LeadershipGrid®241 Frameworkforpatternsofbehaviour243

Managementsystems245

System4management246

ManagementbyObjectives(MBO)249

EvaluationofMBO250

Managingpeople251

Basicmanagerialphilosophies252

Choiceofmanagerialstyle256

Managerialeffectiveness259

Measuresofeffectiveness261

3-Dmodelofmanagerialbehaviour261

Generalcriteriaofmanagerialeffectiveness264

Themanagementoftime265

Case example:Chemicalcompany274

Case study7.1:Bringingmanagementtobook: howtomanagealibrary275

Case study7.2:Assafeashouses:branch managementinabuildingsociety276

8 The Nature ofLeadership

6 The Nature ofManagement 189

Themeaningofmanagement190

Managementandadministration194

Theprocessofmanagement195

280

Themeaningofleadership281

Theimportanceofleadership282

Leadershipandmanagement283

Approachestoleadership285

Thequalitiesortraitsapproach287

Thefunctional(orgroup)approach287

Leadershipasabehaviouralcategory289

Stylesofleadership291

Continuumofleadershipbehaviour292

Thesituationalapproach294

Contingencytheoriesofleadership295

Fiedler’scontingencymodel295

VroomandYettoncontingencymodel297

TheVroomandJagoreviseddecisionmodel298

Path–goaltheory299

Readinessofthefollowersorgroup300

Transformationalleadership301

Inspirationalleadership304

Powerandleadershipinfluence306

Theleadershiprelationship307

Noonebestformofleadership309

Nationalculturaldimensionsofleadership310

Effectivenessofleadershipstyles312

Variablesaffectingleadershipeffectiveness313

Leadershipdevelopment314

Leadersofthefuture315

Managementin Action 8.1:Autoglass:Leadership successfactors317

Managementin Action 8.2:IBMLeadership DevelopmentCentre(LDC)318

Case study8.1: TheparadoxofPimFortuyn:astudy incharismaticleadership327

PART 4

THEINDIVIDUAL

9 IndividualDifferences

ByLinda Hicks

335

Thechangingnatureandscopeofmanaging individualsatwork336

Personality339

Nomotheticandidiographicapproaches342

Theoreticalapproaches:nomothetic343

Theoreticalapproaches:idiographic346

Othertheoreticalapproaches347

Cognitivetheory:Kelly’spersonalconstructtheory350

Applicationswithintheworkorganisation352

Stressandtheindividual354

Ability355

Testing360

Attitudes362

Genderandorganisations366

Understandingwomen’spositionandstatus368

Economictheories369

Psychologicalsexdifferences369

Thesocialisationprocess370

Orientationsandmotivationstowardswork370

Workingpractices371

Careerdevelopment372

Leadership,managementandwomen376 Positiveapproaches378

10The Nature ofLearning

389

Themeaningandnatureoflearning390

Organisationsandthemanagementoflearning394

Knowledgemanagement395

Thelearningorganisation399

Howdopeoplelearn?402 Behaviourism403

Theoutcomesoflearning405

Operantconditioning405

Sociallearning408

Limitationsofthebehaviouristschool408

Cognitivetheories409

Learningstyles413

Complexmodelsoflearning414

Creativity415

Facilitatinglearning417

Learningtheoryappliedtostudyskills420

Applicationsoflearningtheorytoorganisations420 Case study10.1: Springboardtosuccess:staff developmentinpractice425 Case study10.2: Willthemailgetthrough: managingchangeattheRoyalMail427

11The ProcessofPerception

434

Theperceptualprocess435

Selectivityinattentionandperception435

Meaningtotheindividual437

Internalfactors437

Externalfactors440

Organisationandarrangementofstimuli441

Perceptualillusions442

Perceivingotherpeople445

Transactionalanalysis448

Selectionandattention450

Organisationandjudgement452

Theimportanceofbodylanguage453

Attributiontheory455

Perceptualdistortionsanderrors456

Stereotyping457

Thehaloeffect458

Perceptualdefence459 Projection459

Illustrativeexample:perceptionofwomen459

12WorkMotivation and Rewards 470

Themeaningofmotivation471

Needsandexpectationsatwork472

Motivationandorganisationalperformance474

Frustration-inducedbehaviour475

Moneyasamotivator477

Theoriesofmotivation478

Contenttheoriesofmotivation480

Maslow’shierarchyofneedstheory478

Alderfer’smodifiedneedhierarchymodel484

Herzberg’stwo-factortheory485

McClelland’sachievementmotivationtheory487

Processtheoriesofmotivation489

Vroom’sexpectancytheory490

ThePorterandLawlerexpectancymodel492

Lawler’srevisedexpectancymodel494

Implicationsformanagersofexpectancytheories495

Equitytheoryofmotivation496

Goaltheory498

Attributiontheory499

Relevanceoftheoriesofmotivation499

Cross-culturaldimensionsofmotivation500

Themotivationofknowledgeworkers500

Managementin Action 12.1:Developingreward strategiestomotivateandcompensate knowledgeworkers504

Case study12.1: Staffmotivation:notsomucha motivationalpyramid,moreaslipperyslope510

PART 5 GROUPSAND TEAMWORK

13The Nature ofWorkGroups and Teams

517

Themeaningandimportanceofgroupsandteams518

Thedifferencebetweengroupsandteams518

Groupvaluesandnorms520

Theimportanceofteamwork521

Formalandinformalgroups525

Reasonsforformationofgroupsorteams527

Groupcohesivenessandperformance528

Membership529

Workenvironment530

Organisationalfactors531

Groupdevelopmentandmaturity531

Potentialdisadvantagesofstrong,cohesivegroups532

Characteristicsofaneffectiveworkgroup533

Theeffectsoftechnologyonworkgroups534

Rolerelationships536

Roleconflict538

Rolestress540

Managementin Action 13.1:Teamworkinasmall company543

Managementin Action 13.2:Remotecontrol–a casestudy545

Case study13.1: Floatingonair:theimportance ofteamworkatHovertec550

14 Working in Groupsand Teams 554

Interactionsamongmembers555

Belbin’steam-roles556

Patternsofcommunication559

Analysisofindividualbehaviour562

Sociometry562

Interactionanalysis563

Frameworksofbehaviouralanalysis565

Anessentialfeatureofworkorganisations566

Individualcomparedwithgrouporteamperformance569

Therisky-shiftphenomenon569

‘Groupthink’570

Brainstorming570

Groupdynamics573

T-groups574

Effectiveteamworking575

Managementin Action 14.1:Profilingofmanagersfor leadershipdevelopmentinacross-sectionofSouth Africanorganisations579

Managementin Action 14.2:Barrierscomedown tobuildupteamspirit585

PART 6 ORGANISATIONALSTRUCTURES

15 Organisation Structure and Design 595

Themeaningandnatureoforganisationstructure596

Theimportanceofgoodstructure597

Levelsoforganisation598

Theimportanceofthehierarchy600

Thedesignoforganisationstructure601

Clarificationofobjectives603

Taskandelementfunctions604

Thedivisionofwork605

Centralisationanddecentralisation608

Principlesoforganisation609

Spanofcontrol610

Thechainofcommand611

‘Flatter’organisationstructures612

Formalorganisationalrelationships613

Lineandstafforganisation615

Theinvertedorganisation617

Projectteamsandmatrixorganisation617

Effectsofadeficientorganisationstructure619

Organisationcharts621

Structureandorganisationalbehaviour622

Case study15.1: Asmallcoginabigwheel: companyrestructuringatZeton629

Case study15.2: Loudandclear:leadershipin telecommunications630

16PatternsofStructure and Work Organisation

633

Variablesinfluencingorganisationstructure634

Thecontingencyapproach634

Sizeoforganisation635

Technology638

TheWoodwardstudy638

Majordimensionsoftechnology:theworkofPerrow640 Environment641

TheBurnsandStalkerstudy642

‘Mixed’formsoforganisationstructure643

TheLawrenceandLorschstudy644

Evaluationofthecontingencyapproach646

Contributionofcontingencytheory648

Cultureasacontingentfactor649

Alternativeformsofstructure649

Thedemandforflexibility651

Telecommuting652

Theshamrockorganisation652

Thenatureofdelegationandempowerment654

Case study16.1: Bureaucracycouldseriouslydamage yourhealth:staffempowermentatCityHospital658

Case study16.2: CouldIhaveanestimate?

OrganisationalstructureatFabriqueDécor658

17Technologyand Organisations

662

Theorisingtechnology663

Usingasocio-technicalensembleperspective: thecaseofButlerCo.669

Technologicalchangeandorganisations672

Adoptingandintroducingnewtechnology674

Casestudiesintechnological/organisational change679

Case study17.1: Athirstfortechnology:newsystems atthebarsofTawnyTaverns679

Case study17.2: Webpagenotfound:internal communicationsatRedstartComputers682

Organisationalcontexts,socialandpolitical processesandtechnologicalchange685

ICTs,networks,organisationsandsociety686

PART 7

MANAGEMENT OFHUMAN RESOURCES

18Job Satisfaction and Work Performance

Stressatwork706

Rolerelationshipsandconflict708

Levelsofstress709

Copingwithstress710

Workorganisationandjobdesign713 Individualjobredesign714

Acomprehensivemodelofjobenrichment715

Broaderorganisationalapproachestoimproved jobdesign717

Thework/lifebalance720

Employeeinvolvement722

Empowermentandjobsatisfaction723

Self-managedworkgroups723

Flexibleworkingarrangements724

Qualitycircles727

Managementstyleandculture728

Contextualfactorsinjobdesign728

Thehappy/productiveworker729

Managementin Action 18.1:Jobsatisfaction:the fitbetweenexpectationsandexperiences732 Managementin Action 18.2:Anelusivebut expensiveconcept:stress733 Managementin Action 18.3:Work-LifeBalance casestudies735

Managementin Action 18.4:Beyondthe nine-to-five736

Case study18.1: Thewideopenspaces:linking jobsatisfactionandworkperformance741 Case study18.2: Thechangingroleofsupervisors: demonstratingtheeffectofcommunication andtrainingonmorale742 Case study18.3: Flyinglikethewind:motivation, jobdesignandcultureatFalconCarCompany743

19 Human Resource Management 746

Thenatureofhumanresourcemanagement(HRM)747

HRMpolicies,activitiesandfunctions749

OrganisationoftheHRMfunction751

HRM:asharedresponsibility752

TheimportanceofHRM755

Traininganddevelopment756

Themanagementoftraining758 InvestorsinPeople761

Performanceappraisal762

Questionstobeaddressed764

360°feedbackandupwardappraisal765

Establishingtheappraisalsystem766

Methodsofappraisal767

Potentialproblemareas769

Employmentrelations771

699

Themeaningandnatureofjobsatisfaction700

Dimensionsofjobsatisfaction700

Frameworkofstudy703

Informationcommunicationstechnology703

Unitaryandpluralisticperspectives773

Regulatingtheemploymentcontract774

Responsibilityforemploymentrelations777

InternationaldimensionsofHRM778

IndustrialdemocracyinEuropeancountries779

TheGermansystem779

EffectivenessoftheHRMfunction780

Managementin Action 19.1:TheInvestorsinPeople Standard783

Managementin Action 19.2:Performance

managementatAutoglassLimited786

Case study19.1: Beerandsandwiches:personnel

managementatLondonTaverns790

Case study19.2: Nothingsucceedslikesuccess: acceleratingperformanceatSissonSystems791

20Resourcing the Organisation 795

Theconcernofallmanagers796

Humanresourceplanning796

Thevalueofhumanresourceplanning798

Recruitmentandselectionofstaff800

Jobanalysis802

Personspecifications804

Difficultiesanddistastesofthejob804

Theimportanceofjobanalysis806

Attractingsuitableapplicants806

Theselectionprocess808

Selectiontestsandquestionnaires810

Groupexercises810

Theselectioninterview812

Interviewingstyle813

Competency-basedapproachtorecruitmentand selection814

Theselectiondecision815

Inductionandfollow-up816

Costsoftheselectionprocess817

Effectivenessoftherecruitmentandselection process817

Managementin Action 20.1:Marks&Spencer PLC’sgraduateselectionprocess821

Case study20.1:Pleaseenteryourpassword: effectiveresourcemanagementatWessex Computers825

Case study20.2:Inkyfingers:HRMfailureat SumprintLtd826

PART 8

IMPROVING ORGANISATIONAL PERFORMANCE

21OrganisationalControland Power 831

Themeaningofcontrol832

Assumptionsoforganisationandmanagement834

Elementsofanorganisationalcontrolsystem835

Formsofcontrol837

Classificationofcontrolsystems838

Strategiesofcontrolinorganisations840

Characteristicsofaneffectivecontrolsystem842

Powerandmanagementcontrol843

Perspectivesoforganisationalpower845

Pluralisticapproachestopower846

Thebalancebetweenorderandflexibility848

Delegationandempowerment849

Themanager–subordinaterelationship850

Benefitsofdelegation852

Reasonsforlackofdelegation853

Asystematicapproachtodelegation854

Theartofdelegation857

Theconceptofempowerment859

Doesempowermentdeliver?863

Behaviouralfactorsincontrolsystems864

Overcomingresistancetomanagementcontrol865

Financialandaccountingsystemsofcontrol867

Managementin Action 21.1:Empowerment873

Case study21.1:Theenthusiasticdelegator: theconsequencesofpromotingbeyondability?880

Case study21.2:AlphatoOmega:theeffects offinancialmanagementoncompany performance883

22 Organisation Development (Culture, Conflictand Change) 887

Themeaningoforganisationdevelopment888

TopicsassociatedwithOD888

Organisationalculture891

Typesoforganisationalculture892

Influencesonthedevelopmentofculture894

Theculturalweb895

Theimportanceofculture896

Organisationalclimate899

Employeecommitment901

Organisationalconflict903

Contrastingviewsofconflict904

Thesourcesofconflict906

Strategiesformanagingconflict908

Thenatureoforganisationalchange909

Plannedorganisationalchange910

Resistancetochange913

Themanagementoforganisationalchange915

Humanandsocialfactorsofchange916

Responsibilitiesoftopmanagement920

Managementin Action 22.1:Organisationalculture, changeandITinanSME923

Managementin Action 22.2:SiemensNixdorf’s newdynamism924

Case study22.1:It’stoughatthetop:managing conflictintheWakewoodorganisation933

Case study22.2:Gettingpolitical:management inlocalgovernment934

Case study22.3:Amatteroflifeordeath:managing knowledgeatanNHSTrust935

23ManagementDevelopmentand OrganisationalEffectiveness 941

Theimportanceofeffectivemanagement942

Themeaningandnatureofmanagement development942

Anintegratedmodelofmanagementdevelopment944

Managementdevelopmentprocess949

Continuingprofessionaldevelopment(CPD)953

Managementeducation,traininganddevelopment954

TheManagementCharterInitiative(MCI)955

LeadershipandManagementModel956

Thenatureoforganisationaleffectiveness959

ThePetersandWatermanstudy960

Heller’sstudyofEuropeanexcellence961

TheGoldsmithandClutterbuckstudy962

Thelearningorganisation962

TotalQualityManagement(TQM)964

Businessprocessre-engineering(BPR)968

BuildingTomorrow’sCompany971

TheEFQMexcellencemodel971

Assessingorganisationalperformance975

Organisationaudit976

Benchmarking976

Performanceindicatorsinthepublicsector977

Gapanalysis977

Arangeofdifferentcriteria977

Thetwenty-firstcenturyorganisationandpeople980

Managementin Action 23.1:ExtractsfromAbbey PerformanceDevelopmentProgramme982

Managementin Action 23.2:Acureforgrowing pains–CostaCoffee985

Managementin Action23.3:Componentsofthe ManagementStandards987 Managementin Action 23.4:Buildingorganisational competence988 Case study23.1:Chipswitheverything:managing culturalchangeatEurasiaElectronics997 Case study23.2:Holdingthefrontpage:expansion atRudmorePress997

Companion Website resources

VisittheCompanionWebsiteat www.booksites.net/mullins

For students:

■ Multiplechoiceandshortanswerquestionstohelptestyourlearning

■ TechnologySolutions–shortwebarticleswhichexplorefurtherthemanagerial implicationsoftechnology

■ Weblinkstorelevantsitesontheweb

■ Anonlineglossarytoexplainkeyterms

For lecturers:

■ Complete,downloadableInstructor’sManualwhichincludes: –Teachingtips –Extracases

–Solutions/examplestodiscussionandotherquestions

■ PowerpointslidesthatcanbedownloadedandusedasOHTs

■ Testbankofquestionmaterial

Also: Thissitehasasyllabusmanager,searchfunctions,andemailresultsfunctions.

Note: Aprintedversionofthe Instructor’sManual isalsoavailablefreetoadopters of Managementand Organisational Behaviour.Pleasecontactyourlocalsales representativewhosedetailscanbelocatedonourwebsite www.pearsoned.co.uk

EXHIBITS,MANAGEMENTINACTION,CASESTUDIES ANDBUSINESSPRESS

Exhibits

3.1NHSpays£30.96justtosharpenpencils76

3.2Toolsthatdothebusiness:managementtheories91

5.1Businessethics:what’sinitforyou?171

6.1Theinfantschoolheadteacherasamanager191

7.1It’sapeoplething258

8.1DevelopingleadershipintheNHSofthe21stcentury305

8.2Firstclasscoach312

9.1Whyusepsychologicaltests?362

10.1Learningnewskills:theimportanceoffeedback410

11.1Hospitalssettoplayitbyethnicbook454

11.2JudyOwenwinsbattleagainstProfessionalGolfers’Associationto460 weartrousers

13.1Teamwork’sowngoal524

14.1Management:brainstorminarainstorm573

18.1Ifyouwantpeopletodoagoodjob,givethemagoodjobtodo719

18.2Havealifeandkeepyourjob725

21.1Empowermentandthecustodyofficer861

23.1Developingmanagers:applyingthetheoryinpractice950 23.2Managementsuccession:developingleadershipat3M952 23.3Qualitycounts:TQMinanNHStrust968

Managementin Action

3.1Japanesemanagement95

5.1IBMCodeofConduct177

6.1TherolesofthemanagerandtheIndividualManagementModel217

8.1Autoglass:Leadershipsuccessfactors317

8.2IBMLeadershipDevelopmentCentre(LDC)318

12.1Developingrewardstrategiestomotivateandcompensateknowledge workers504

13.1Teamworkinasmallcompany543

13.2Remotecontrol–acasestudy545

14.1Profilingofmanagersforleadershipdevelopmentinacross-sectionof579 SouthAfricanorganisations

14.2Barrierscomedowntobuildupteamspirit585

18.1Jobsatisfaction:thefitbetweenexpectationsandexperiences732

18.2Anelusivebutexpensiveconcept:stress733 18.3Work-LifeBalancecasestudies735 18.4Beyondthenine-to-five736

19.1TheInvestorsinPeopleStandard783

19.2PerformancemanagementatAutoglassLimited786

20.1Marks&SpencerPLC’sgraduateselectionprocess821

21.1Empowerment873

22.1Organisationalculture,changeandITinanSME923 22.2SiemensNixdorf’snewdynamism924

23.1ExtractsfromAbbeyPerformanceDevelopmentProgramme982

23.2Acureforgrowingpains–CostaCoffee985 23.3ComponentsoftheManagementStandards987 23.4Buildingorganisationalcompetence988

Case studies

2.1EricandKipsy:complexitiesofmanagementandorganisationalbehaviour56

3.1HelgatonLtd:organisationaltheoryinpractice102

5.1Mergersandacquisitions:theconsequencesofexpansionatSquareDealplc182

5.2Welcometotheparty:homesellingwithTop-to-Toe183

6.1Whatismanagement?Definingthemanager’srole227 Chemicalcompany274

7.1Bringingmanagementtobook:howtomanagealibrary275 7.2Assafeashouses:branchmanagementinabuildingsociety276

8.1TheparadoxofPimFortuyn:astudyincharismaticleadership327 10.1Springboardtosuccess:staffdevelopmentinpractice425 10.2Willthemailgetthrough:managingchangeattheRoyalMail427 12.1Staffmotivation:notsomuchapyramid,moreaslipperyslope510 13.1Floatingonair:theimportanceofteamworkatHovertec550 15.1Asmallcoginabigwheel:companyrestructuringatZeton629 15.2Loudandclear:leadershipintelecommuncations630 16.1Bureaucracycouldseriouslydamageyourhealth:staffempowermentatCityHospital658 16.2CouldIhaveanestimate?OrganisationalstructureatFabriqueDécor658 17.1Athirstfortechnology:newsystemsatthebarsofTawnyTaverns679 17.2Webpagenotfound:internalcommunicationsatRedstartComputers682 18.1Thewideopenspaces:linkingjobsatisfactionandworkperformance741 18.2Thechangingroleofsupervisors:demonstratingtheeffectofcommunication andtrainingonmorale742 18.3Flyinglikethewind:motivation,jobdesignandcultureatFalconCarCompany743 19.1Beerandsandwiches:personnelmanagementatLondonTaverns790 19.2Nothingsucceedslikesuccess:acceleratingperformanceatSissonSystems791 20.1Pleaseenteryourpassword:effectiveresourcemanagementatWessexComputers825 20.2Inkyfingers:HRMfailureatSumprintLtd826 21.1Theenthusiasticdelegator:theconsequencesofpromotingbeyondability?880 21.2AlphatoOmega:theeffectsoffinancialmanagementoncompanyperformance883 22.1It’stoughatthetop:managingconflictintheWakewoodorganisation933 22.2Gettingpolitical:managementinlocalgovernment934 22.3Amatteroflifeordeath:managingknowledgeatanNHStrust935

23.1Chipswitheverything:managingculturalchangeatEurasiaElectronics997

23.2Holdingthefrontpage:expansionatRudmorePress997

BusinessPress

1Asafewaytoholdontostaff1006

2BusinessschoolsshareEnronblame1007

3Recruitment:facingthenextbraindrain1008

4Companiespressedtoadopthigherstandards1010

5Forgethowthecrowflies1012

6Publicsector:gohomeandpreparefore-government1017

7Employeesasinvestors1019

8Leaderofthebandwholikestoruntheshow1020

9Greatleaders:pioneerandashrewdstrategist1022

10Endangeredspecies1023

11Mentoringmovesintoaleadingrole1025

12Drivingyouremployeesupthewall1027

13Afocusonworkers’individualneeds1028

14Advantagesofpromotingaboutiquemindset1029

15Avoidingthemadnessofgroupthink1030

16Endto‘departmentalism’avisionofthingstocome1031

17Along-distancerelationship1032

18Networkprotectionisakeystroke1034

19Relentlessriseofthepleasureseekers1035

20EU&US:Wherearethebestworkplaces?1037

21Marryingperformancewithreward1038

22Humancapital:isit‘personnel’withyetmoremake-up?1040

23Newlearningmodelsareunderscrutiny1041

24Patternscanshowifyouareuptothejob1043

25MassiveUSefforttosetupcontrolsystems1044

26Asda:thelisteningstore1045

27Organisations,too,canbeputonthecouch1047

28Swissgroupattopoflearningtree1048

29Theriseandriseofthecorporatelearningofficer1049

INACKNOWLEDGEMENTANDAPPRECIATION

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

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

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

I gratefully acknowledge the help and support received from: Managers who kindly provided information from their own organisations and gave permission to reproduce material in the book

Aileen Cowan, Assistant Director, The Institute of Chartered Secretaries and Administrators

Liz Harris, Marketing Communications Manager, The Institute of Administrative Management

Rebecca Hoar, Section Editor, Management Today

Sue Mann, Editor, Professional Manager

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

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

Reviewers

Special thanks are due to the following reviewers, approached by the publishers, for their valued insightful and constructive comments that have helped shape the contents of this present edition:

Ann Norton, Sheffield Hallam University, UK

Brian Stone, Manchester Metropolitan University, UK

Kim Parker, University of Kent, UK

Bob Smale, Brighton University, UK

Alasdair Maclean, University of Abertay, UK

Peter Falconer, Glasgow Caledonian University, UK

Hugo Misselhorn, Management & Organisation Development Consulting, South Africa

Marijek Dielman, Hotel Management School, Maastricht, The Netherlands

David Wilson, Wethouder Koniglaan, The Netherlands.

Laurie J Mullins

PUBLISHER’SACKNOWLEDGEMENTS

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

Chapter 2 – Assignment 1 is reprinted with permission from Rowe, C., The Management Matrix: The Psychology of Interaction, Alfred Waller Ltd (1992), p. 1, with permission from Patricia Rowe.

Personal awareness and skills exercise ‘So What’s Your Work Ethic?’ is reprinted with permission from Professional Manager , published by the Chartered Management Institute, May 2003, p. 38, and Walmsley, C. J., Your Future Looks Bright, Preston Beach (2002), p. 98.

Case study 2.1 ‘Eric and Kipsy’ is reprinted with permission from Porter, L. W., Lawler, E. E. and Hackman, J. R., Behavior in Organizations, McGraw-Hill, New York (1975), pp. 3–14.

Chapter 3 – Assignment 1 is reprinted with permission from DuBrin, A. J., Human Relations: A Job-Oriented Approach , Reston Publishing/Prentice Hall/Pearson Education Inc. (1978), pp. 296–7.

Case study 3.1 ‘Applications of Organisation Theory in Helgaton Ltd’, is reprinted with permission from Mullins, L. and White, I., in Adam-Smith, D. and Peacock, A. (eds), Cases in Organisational Behaviour , Pearson Education (1994), pp. 19–29.

Chapter 4 – Assignment ‘Our Organizational Society: Your Association with Organizations’ is reprinted with permission from Kast, F. E. and Rosenzweig, J. E., Experiential Exercises and Cases in Management, McGraw-Hill, New York (1976), pp. 13–15.

Chapter 5 – Personal awareness and skills exercise ‘Assessing your Work Values’ is reprinted with permission from Misselhorn, A., The Head and Heart of Management , Management and Organization Development Consultants (SA) (2003), p. 36.

Case study 5.1 ‘Square Deal plc’ is reprinted with permission from the Institute of Administrative Management, Diploma in Administrative Management Examination Paper, Summer 1983.

Case study 5.2 ‘Top to Toe’ is reprinted with permission from the Chartered Institute of Secretaries and Administrators, Management Principles Examination Paper, June 2003.

Chapter 6 – Assignment 2 ‘Have YOUGot What it Takes to be a CEO?’ is reprinted with permission from Gwyther, M., Management Today, November 2001, pp. 56–9.

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

Chapter 7 – Assignment 1 ‘Principle of Supportive Relationships Questionnaire’ is reprinted with permission from Likert, R., The Human Organization – Its Management and Value, McGraw-Hill, New York (1976), pp. 48–9.

Personal awareness and skills exercise ‘Your Management Style’ is reprinted with permission from Osland, J. S., Kolb, D. A. and Rubin, I. M., Organizational Behavior: An Experimental Approach , seventh edition, Prentice Hall (2001), pp. 24–5.

Case study 7.1 ‘Library Management’ is reprinted with permission from the Institute of Chartered Secretaries and Administrators, Management Principles Pilot Paper, Administrator, December 1993. (Administrator is now published under the title Chartered Secretary.)

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

Assignment 2 ‘T-P Leadership Questionnaire: An Assessment of Style’ by Sergiovanni, T., Metzcus R. and Burden, L. adapted from their article ‘Leadership Behavior Description Questionnaire’, in the American Educational Research Journal 6, 1969, is reprinted by permission of the publisher, the American Educational Research Association.

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

Case study 8.1 ‘The Paradox of Pim Fortuyn: A Study in Charismatic Leadership’. I am grateful to my colleague Karen Meudell for providing this case study.

Chapter 10 – Case study 10.2 ‘Royal Mail: Making your life easier by helping you do a better job’. Thanks to Yasmin Ahmed and Royal Mail Group plc.

Chapter 11 – Personal awareness and skills exercise ‘Inference–observation’ exercise is reprinted with permission from Haney, W. V., Communications and Interpersonal Relations: Text and Cases , sixth edition, Irwin, Illinois (1992), p. 213.

Chapter 12 – Personal awareness and skills exercise contributed by Sheila Ritchie of Elm Training and derived from the full 12-factor Motivation to Work Profile . It is reprinted with permission.

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

Chapter 13 – The copyright of case study 13.1 ‘Hovertec plc’ rests with my colleague Tom McEwan, and is reprinted with permission.

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

Chapter 15 – Assignment 2 is reprinted with permission from the Institute of Chartered Secretaries and Administrators, Management Principles Examination Paper, June 1999.

Case study 15.1 ‘Zeton Ltd’ is reprinted with permission from Administrator, The Institute of Chartered Secretaries and Administrators, April 1996, p. 36. ( Administrator is now published under the title Chartered Secretary.)

Case study 15.2 ‘Direct Telecommunications PLC(DT)’ is reprinted with permission from the Institute of Chartered Secretaries and Administrators, Organisation and the Human Resource Examination Paper, May 2002.

Chapter 16 – Case study 16.1 ‘The City Hospital: Bureaucracy and Empowerment’ is reprinted with permission from the Institute of Chartered Secretaries and Administrators, Organisation and the Human Resource Examination Paper, November 2002.

Case study 16.2 ‘Fabrique Décor’ is reprinted with permission from the Institute of Administrative Management, Advanced Diploma Examination Paper, December 2000.

Chapter 18 – Case study 18.1 ‘The Wide Open Spaces’ from Chilver, J., People, Communication and Organisation, Pergamon Press (1984), pp. 118–19.

Case study 18.2 ‘Managing Supervisors’ is reprinted with permission from the Institute of Chartered Secretaries and Administrators, Management: Principles and Policy Examination Paper, June 1985.

Case study 18.3 ‘The Falcon Car Company’ is reprinted with permission from the Institute of Chartered Secretaries and Administrators, Organisation and the Human Resource Examination Paper, June 2003.

Chapter 19 – Case study 19.1 ‘London Taverns Ltd’ has been prepared jointly with, and from original material supplied by, my colleague Karen Meudell.

Case study 19.2 ‘Accelerating the performance momentum at Sisson Systems’ is reprinted with permission from the Institute of Chartered Secretaries and Administrators, Organisation and the Human Resource Examination Paper, June 1999.

Chapter 20 – Case study 20.1 ‘Wessex Computers’ is reprinted with permission from the Institute of Administrative Management, Certificate in Administrative Management Examination Paper, Summer 1983.

Case study 20.2 ‘Sumprint Ltd’ is reprinted with permission from the Institute of Administrative Management, Case Study Examination Paper, June 2002.

Chapter 21 – ‘The Organisational Politics Questionnaire’ is reprinted with permission from DuBrin, A. J., Human Relations: A Job-Oriented Approach , fifth edition, Prentice Hall/Pearson Education Inc. (1992), pp. 306–7.

Case study 21.2 ‘The Omega organisation’ is reprinted with permission of the Institute of Chartered Secretaries and Administrators, Management: Principles and Policy Examination Paper, June 1987.

Chapter 22 – Assignment ‘Rate Your Readiness to Change’ is reprinted with permission from Stewart, T. A., Fortune, 7 February 1994, pp. 63–4, Time Inc. All rights reserved.

Case study 22.1 ‘The Wakewood organisation’ is reprinted with permission from the Institute of Chartered Secretaries and Administrators, Management: Principles and Policy Examination Paper, December 1986.

Case study 22.2 ‘Gremby County Council’ is reprinted with permission from Bowman, C. and Jarrett, M. G., Management in Practice, third edition, Butterworth-Heinemann (1996), pp. 209–11, with permission from Elsevier Ltd.

Case study 22.3 ‘Managing Knowledge at an NHS Trust’. I am grateful to Rajeev K. Bali and Ashish N. Dwivedi for providing this case.

Chapter 23 – Assignment 2 ‘Assessing your Organisation’ is reprinted with permission from BBC, Building Tomorrow’s Company – Supporting Notes and the Centre for Tomorrow’s Company and William Tate, 1999.

Personal awareness and skills exercise is adapted from material prepared by John Bourn for a UNISON distance learning course and is used with permission of the Education Officer.

Case study 23.1 ‘Eurasia Electronics’ is reprinted with permission from the Institute of Chartered Secretaries and Administrators, Professional Administration Examination Paper, December 1999.

Case study 23.2 ‘Rudmore Press Limited’. This case was prepared jointly with, and from original material provided by, my colleague Karen Meudell.

DOGBERT character drawings copyright © 1991 United Feature Syndicate, Inc.

Please note: we are all influenced by the thoughts and ideas of other people that tend to drift into the subconscious and are not always distinguished clearly from one’s own. I have attempted to give references for sources of work by other writers but apologise to any concerned if acknowledgement has inadvertently not been recorded. Should there by any queries, errors or omissions please contact the publisher.

Chapter openers: provideabrief introductiontokey themesofthe chapter

Learning outcomes: summarisewhat studentswilllearn inthechapter

GUIDEDTOUROFTHEBOOK

Anessentialpartofmanagementisco-ordinating theactivitiesofpeopleandguidingtheirefforts towardsthegoalsandobjectivesofthe organisation.Thisinvolvestheprocessof leadershipandthechoiceofanappropriateform ofactionandbehaviour.Leadershipisacentral featureoforganisationalperformance.The managermustunderstandthenatureof leadershipinfluenceandfactorswhichdetermine relationshipswithotherpeople,andthe effectivenessoftheleadershiprelationship.

LEARNING OUTCOMES

Aftercompleting thischapteryou should be able to: explainthemeaningandimportanceofleadershipin workorganisations; contrastpatternsofmanagerialleadershipandmain approachestoandstudiesofleadership; detailthenatureofmanagerialleadershipandthe exerciseofleadershippowerandinfluence; examineleadershipasanaspectofbehaviour,and differentstylesofleadership; assesscontingencytheoriesofleadershipand siuationalfactorswhichdeterminethecharacteristicsof leadership; evaluatethenatureandmaincomponentsof transformationalleadershipandinspirationalleadership; reviewthevariableswhichdetermineeffective managerialleadershipanddevelopment.

Notable quotes:provide insightintomanagerial thinking,pastandpresent

Technologysolutions:linkstoweb-based resourceswhichencourageevaluationoftechnologyinsolvingproblems

Managementin action: real-worldexamples ensurethatstudents identifyandengage withmanagerial challenges

Exhibits:shortvignettesbring managerialtheoryandpractice tolife

Case studies:integratearangeof themestoencourageanalysisof morecomplexsituations

Photo: Rajesh Jantilal/AFP/Getty Images

Criticalreflections: motivatestudentsto thinkcriticallyabout keythemes

Review and discussion questions:assess students’understandingandprogress

Assignments:imaginativeactivities enablestudentstolearnthrough personalapplicationoftheory

BusinessPress:FinancialTimesarticles demonstratecontemporaryrelevanceof theoryinjournalisticstyle

Personalawareness and skillsexercises: practiseanddevelop students’interpersonal andwork-basedskills

Part 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR

Part 7 MANAGEMENT OF HUMAN RESOURCES

Part 2

THE ORGANISATIONAL SETTING

Part 8 IMPROVING ORGANISATIONAL PERFORMANCE

Part 3 THE ROLE OF THE MANAGER

Part 6 ORGANISATIONAL STRUCTURES

Part 5 GROUPS AND TEAMWORK

Part 4 THE INDIVIDUAL

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