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them。 
。 Organizing: establish a structure of authority for all work。 
。 Staffing: recruit; hire and train workers; maintain favourable working 
conditions。 
。 Directing: make decisions; issue orders and directives。 
。 Coordinating: interrelate all sectors of the organization。 
。 Reporting: inform hierarchy through reports; records and inspections。 
。 Budgeting: depend on fiscal planning; accounting and control。 
By 1973 Canadian academic Henry Mintzberg; now professor of organizations 
at INSEAD in France; had further expanded the manager’s tasks 
and responsibilities into 10 areas: 
1。 Figurehead: performs ceremonial and symbolic duties as head of the 
organization。 
2。 Leader: fosters a proper work atmosphere and motivates and develops 
subordinates。 
3。 Liaison: develops and maintains a network of external contacts to 
gather information。 
4。 Monitor: gathers internal and external information relevant to the 
organization。 
5。 Disseminator: passes factual and value…based information to 
subordinates。 
6。 Spokesperson: municates to the outside world on performance and 
policies。 
7。 Entrepreneur: designs and initiates change in the organization。 
8。 Disturbance handler: deals with unexpected events and operational 
breakdowns。 
9。 Resource allocator: controls and authorizes the use of organizational 
resources。 
10。 Negotiator: intermediates with other organizations and individuals。
148 The Thirty…Day MBA 
All of these a。。empts at formulating an overarching and universal approach 
to arriving at a single best definition of the role of management foundered 
on the limitations of the information flow from the front line upwards。 
Two management theorists; Tom Peters and Nancy Austin; suggest that 
managers in effective panies get the information they need by ge。。ing 
out of their offices and talking with people – employees; suppliers; other 
managers; and customers。 They coined the approach as ‘management by 
walking around’; or ‘MBWA’ (Peters and Austin; 1985)。 
Today; the view of the role of a manager is best described as being contingent 
on the internal and external circumstances they find themselves 
in。 Expanded into the rather grandiose title of ‘contingency theory’; its 
exponent Fred Fiedler; a business and management psychologist at the 
University of Washington; first introduced what he called the contingency 
modelling of leadership in 1967。 
Management styles and processes 
Despite the near…universal acceptance that there are no absolutes in management; 
the search for a tool or technique for helping managers understand 
and improve on their role as a manager goes on。 These are some of 
the more practical of those a。。empts。 
The Management Grid 
Robert R Blake and Jane Srygley Mouton; who worked together at the 
psychology department of the University of Texas during the 1950s and 
1960s; developed the ‘Managerial Grid’ as a framework for understanding 
managerial styles。 Their grid (see Figure 4。9) had two dimensions; concern 
for task and concern for people; with management styles being described 
by their position on the grid: 
。 Country Club operates on the belief that as long as the people are happy 
the results will follow。 
。 Produce or Perish states that we are only here to deliver results。 It’s an 
authoritarian style that subjugates people and their concerns to ge。。ing 
tasks performed at all costs。 This is very much a Theory X (see above) 
method of operating。 
。 Impoverished Manager is equally disinterested in both output and 
people。 
。 Team Manager has a parallel concern for people and results。 This is 
considered the optimal role。 
。 Middle of the Road is an a。。empt to balance the concern for output 
with a parallel concern for people。 In promising; neither of the 
peting needs is met satisfactorily。 This style can also occur when 
a manager alternates between pu。。ing people first at one stage then if 
Organizational Behaviour 149 
results aren’t ing through swinging the other way: this is known as 
the Pendulum approach to management。 
Your position on the grid is arrived at by answering a ba。。ery of questions 
that can be obtained from Chartwell Learning and Development ( 
chartwell…learn。uk/teleometrics_instrument/management_leadership_ 
style)。 Alternatively; download a questionnaire from (leadership…andmotivation…
training/support…files/blake…mouton…questionnaire。pdf)。 
Management by objectives 
Peter Drucker first described this system in his book; The Practice of Management 
(1954)。 Drucker’s proposition was that managers should sidestep 
what he called the ‘activity trap’ where managers got involved in the minutiae 
of day…to…day activities and set them SMART objectives: 
。 Specific – relate to specific tasks and activities; not general statements 
about improvements。 
。 Measurable – it should be possible to assess whether or not they have 
been achieved。 
Figure 4。9 The management grid
Concern for task 
Concern for people 
or Pendulum 
(1。9) 
Country Club 
(1。1) 
Impoverished 
(9。1) 
Produce or Perish 
(9。9) 
Team 
(5。5) 
Middle…of…the…road 
High 
Low High
150 The Thirty…Day MBA 
。 A。。ainable – it should be possible for the employee to achieve the 
desired oute。 
。 Realistic – within the employee’s current or planned…for capability。 
。 Timed – to be achieved by a specific date。 
Objectives; Drucker claimed; should cascade throughout the organization; 
interlocking so that the overall business objectives would be achieved。 
Value…based management 
The value…based management (VBM) model is the management approach 
that goes a stage beyond objectives and introduces the idea that organizations 
are run consistently for long…term shareholder value。 That doesn’t mean 
ignoring other stakeholder groups。 The three guiding principles of VBM 
are: 
。 Creating value: actively seeking ways to increase or generate maximum 
long… term value。 
。 Managing for value: colleagues; customers; munity and shareholders。 
。 Measuring value: validating that long…term real value has been created 
by using appropriate financial techniques such as discounted cash flow 
(see Chapter 2; ‘Investment decisions’)。 
Balanced score card 
The balanced scorecard (Figure 4。10); developed by Robert Kaplan and 
David Norton and published in a Harvard Business Review article in 1992; 
is a management process that sets out to align business activities to the 
vision and strategy of the organization; improve internal and external 
munications; and monitor organization performance against strategic 
goals。 Its uniqueness was to add non…financial performance measures to 
traditional financial targets to give managers and directors a more ‘balanced’ 
view of organizational performance。 Although Kaplan and Norton are 
credited with coining the phrase; the idea of a balanced scorecard originated 
with General Electric’s work on performance measurement reporting in the 
1950s and the work of French process engineers (who created the Tableau de 
Bord – literally; a ‘dashboard’ of performance measures) in the early part of 
the 20th century。 
Four perspectives are included in the management process; which in 
effect extends the range of management by objectives and value…based 
management into areas beyond purely financial target se。。ing。 A number 
of objectives; measures; targets and initiatives can be set to achieve specific 
key performance indicators (KPIs) for each perspective in terms of:
Organizational Behaviour 151 
。 Financial: These include KPIs for return on investment; cash flow; profit 
margins and shareholder value。 
。 Customer: Here the KPIs can be for customer retention rates; satisfaction 
levels; referrals and plaints。 
。 Internal business processes: These can include stock turn; accident 
rates; defects in production; reduction in the number of processes and 
improvements in munications。 
。 Learning and growth: Employee turnover; morale levels; training and 
development achievements and internal promotions vs new recruits 
are all KPIs to use here。 
The four perspectives are linked by a double feedback loop whose purpose 
is to ensure that KPIs 

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