Management, Leadership & Organisations: Assignment 1

This assignment covers critical evaluation of three schools of thought, comparison of two organizational structures, formal and informal sources of organizational power, influence and authority, traditional and current perspectives of delegation, principles of vertical and horizontal coordination, and evaluation of two content theories and two process theories of motivation.

Course qualification NZ Diploma in Business (Level 7)
US/Prescription title: Management, Leadership & Organisations
Course/Paper number: 9735
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Teacher: Bushra
Assessment type: 1st assignment
Due date: 10/06/2018
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Table of Contents
1. Management...................................................................................................................................2
1 .1 Critical evaluation of three schools of thought.....................................................................2
1.2 Compare two organizational structures and explain their different design principles.....2
Functional structure vs Divisional structure.................................................................................2
1.3 Formal and informal sources of organizational power, influence and authority...............3
1.4 Compare and contrast traditional and current perspectives of delegation.......................3
1.5 Identify principles of vertical and horizontal coordination....................................................5
2.0 Motivation......................................................................................................................................6
2.1 Evaluating two content theories and two process theories of motivation.........................6
2.2 Comparing two managerial approaches to motivation........................................................9
2.3 Describing two management styles.....................................................................................11
2.4 Explaining relationship between job design and employee motivation...........................12
2.5 Describing impact of job design...........................................................................................13
2.6 Discussing and evaluating ways different social influences affect groups.....................14
3.0 Leadership...................................................................................................................................15
3.1 Comparing and contrasting differences between management and leadership............15
3.2 Describing two leadership styles..........................................................................................16
Reference..........................................................................................................................................17

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1. Management
1 .1 Critical evaluations of three schools of thought
The classical school of management is established on the premise that
employees have physical and economical needs that they need to satisfy
organization productivity and efficiency. This is through utilizing the ability of
employees to increase output by examining the work process and scrutinizing the
skills of the workforce (Gomez-Mejia, Balkin, & Cardy, 2008). The theories presented
under this school of thought are includes the scientific management based on the
rule of thumb by creating the most efficient way to perform work through the
principles of division of work, authority and responsibility, discipline, unity of
command, unity of direction, subordination of individual interest, remuneration,
degree of centralization, scalar chain, order, equity, stability of tenure, initiative and
striving for excellence. The administrative management theory with the core
elements of utilization of a formalized structure, a clear division of labor, and
delegation of power and authority to administrators relevant to their areas of
responsibilities and bureaucratic management which the efficient and rational way of
organizing human activity through a systematic process and organized hierarchies to
maintain order, maximize efficiency and eliminate favourism. The contribution of
these theories is the ability to find ways of managing work through increasing
efficiency in the workplace thus leading to better results. For these theories, the
output is what matters most. This is the strength that makes the theories more useful
since they focus on results. However, their major weakness is the ability to focus
more on the organization and forget the employees who create the output required
for the organization.
The second school is the behavioral school which arose as a critic to the
classical approach which ignored the interactions and motivation of employees.
Since the classical approach failed to consider the social issues that affect
employees and failed to explain the behavior of employees, the human relations
approach came up as a revolution to address the human dimension of work (Bose,
2012). The theorists propose the need to understand human factors like motivation,
expectations, conflict and group dynamics and how they affect individual productivity.
Such theories include, Maslow’s hierarchy of needs where is organizes the needs

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that employees have from the physiological needs to self-actualization. When an
employee satisfies one need, then they move to the next level of the hierarchy and
Herzberg’s two-factor which focus on motivators and hygiene factors. Motivators are
characteristics of the job that relate to job satisfaction and relate to other factors of
dissatisfaction while hygiene factors are those essential for existence of motivation
workplace. These theories have contributed to management thought through raising
awareness on the need to design open and flexible organizations that focus on the
growth of employees. This led to recognizing the role of employees within the
organization and developing ways that make the organization to accommodate
employee needs thus creating satisfaction. The strength of this school of thought lies
in the need to motivate employees thus through behavioral approaches that lead to
increased outputs. However, the theories have been criticized for lack of
communication on how ideas from employees reach managers thus making it
difficult for the theories to get top management attention.
Lastly, the systems school of thought views the organization as a whole
system with a set of subsystems that work together to achieve harmony. The
effectiveness of the organization depends on the coordination and efficiency
between the subsystems in the organization (Greenberg, 2011). Each part must
function well for the whole organization to work well. The organization can be an
open or closed system depending on the nature or management but the role of
leadership is to increase efficiency in the organization through creating harmony
between the different subsystems. This school contributed to management through
allowing managers to relate different specialties and parts of the organization to one
another and develop ways of coordinating them. One strength of the theory is its
ability to recognize the organization as a system and develop ways of linking
different system to make the organization run. Stability is achieved through proper
functioning of each part of the organization. However, it has been criticized for being
too abstract and complex in managing different elements of the organization.
1.2 Compare two organizational structures and explain their different design
principles.
Functional structure vs Divisional structure
The functional structure allows organizing work in common functions in
bottom-up manner in functional units controlled and coordinated from top level

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management (Robbins & Judge, 2008). Here, the tasks are organized in a technical
line more rather than product line. On the other hand, the divisional structure has
teams are organized in groups that correspond to the product that the department
benefits the organization. In this structure, a single product has its own line functional
divisions within it that relate to the whole organization (Jacobides., 2017). The
difference between the two structures is the fact that the functional structure
focusses on organizing work along functional areas of the organization while the
divisional structure organizes work along product lines. The number of products that
the organization produces determine the number of divisions that exist.
1.3 Formal and informal sources of organizational power, influence and
authority
Formal power refers to the authority that people have within the organization
that is listed in the organizational chart. On the other hand, informal power exists in
the relationships that people form with each other during their interaction. Such
power is defined by the experience and authority that people have (Lim, Griffiths, &
Sambrook, 2010).
The first source of formal power is the position that one holds which leads to
legitimate power. This is the common source of power and exists in hierarchies
within the organization.
The second source of formal power is coercion which leads to coercive
power. It’s the ability of an individual to influence others through threats, punishment
and sanctions.
Informal power can be acquired through expert power one uses the skills that
they have to influence the authority that they command. The second source of
informal power is referral which is acquired through relationships that people hold
with each other. In an organizational set up people have certain levels of respect that
they have acquired through experience, education or even status.
On the other hand, influence can be achieved through creating of change in
the organization to create the required influence in the organization.
This can also be achieved through personal motivation where the leader helps
employees to connect the sustainable behaviour that the leader wants and their own
personal values through motivation.

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Personal ability is also used to create influence by encouraging personal
sustainability by improving the ability of employees and teaching them new skills.
Another way is the use of social ability where employees are pooled together
to get the solutions to the issues around them and then the leader implements these
suggestions to make him acceptable.
Lastly, authority has several formal ways of gaining it that include contracts or
agency where the individual is given the authority to execute certain decisions in the
organization through and agency relationship with the organization. The contract
defines the level of authority that once can execute.
Another formal source of authority is individual competency which defines the
level of authority that one can hold. Competency goes with skills in executing tasks
which define the level of influence that one has in the organization.
An informal source of authority in an organization is acceptance where others
accept one to have the authority and thus choose to be superior to the one holding
the authority.
The last source of informal authority is environmental factors which create
conditions for increasing and decreasing authority situations in environment. This
makes the environment favourable or less favourable to the one holding authority.
1.4 Compare and contrast traditional and current perspectives of delegation
Traditional
perspective
Current perspective
Delegation
is the act of empowering
to act for another
The traditional
perspective of delegation
was centralized due to a
hierarchical system that
required coordination from
above to increase
decision making and
management of resources
(Gomez-Mejia, Balkin, &
Cardy, 2008). However, it
lacks flexibility and
individual empowerment.
The current perspective of
decentralization disperses
power by allowing open
communication and
knowledge sharing.

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Participation
is and act or instance of
participating
Structures specialization
was used as a system of
employee allocation of
duties thus each
employee was supposed
to work in a specialized
line where the only way
for an employee to
participate is through
improvement of efficiency
(Greenberg, 2011). The
system characterizes low
participation since most
decisions are made by top
management.
Current perspective
applies participation at all
levels through information
sharing, training and
development, rewards and
skills.
Decision-making
is a vital component of
small business success.
Decision making is a top-
bottom approach through
the hierarchy system. The
role of decision making is
to improve business
processes by evaluating
alternatives (Gomez-
Mejia, Balkin, & Cardy,
2008).
The current approach
focusses on evaluation of
the existing opportunities
and comparing alternative
solutions to determine the
best approach.
1.5 Identify principles of vertical and horizontal coordination
Coordination is horizontal when it has to be achieved between departments
on the same level in the managerial hierarchy. Vertical coordination is an
arrangement of network wellbeing medical caretakers who fill in as connections
between their levels in the association.
The principle of direct contact which deals with the ways in which activities are
coordinated between different individuals (Bose, 2012).

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The principle of continuity which means that coordination is a never ending activity
that keeps the organization going.
The principle of early start which that requires the coordination activity to be
included in the early phases of planning for organizational activities.
The principle of reciprocal relationships which suggests that all factors in a
reciprocal relationship are related.

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2.0 Motivation
2.1 Evaluating two content theories and two process theories of motivation
Content theories
Maslow’s hierarchy of needs
According to Lepper and Greene (2015), the motivation theory suggested by
Maslow is one of the most commonly applicable motivational theories in
management. The aim of the hierarchy theory is a systematic approach of
understanding the human needs and the manner in which people can achieve
ultimate satisfaction by fulfilling the needs. The hierarchy theory starts by meting the
basic needs of the people. Satisfying the physiological need in order to survive
should be the basic goal for people.
In the modern business world, with the meeting of every need people
gradually move up the hierarchy and try to satisfy the remaining needs such as the
security of the job and the physical safety of the people. Along with this people,
wants to be loved and recognised so that they can have a good professional career
and live a proper life in the society. At the next stage, people also need to release
the self-esteem by gaining recognition in the form of rewards and benefits. The self-
actualisation need provides people with an opportunity to realise the things they lack
and the manner in which people can improve in the organisation.
Figure 1: Maslow’s hierarchy need theory

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(Source: Lepper & Greene, 2015)
Herzberg’s two-factor theory
The two-factor theory proposed by Herzberg identifies two important features
that are required for the survival of an employee in an organisation. These include
the hygiene and the motivation factor. The hygiene factors are the job related factors
that are required for motivating people in an organisation. These factors include the
working condition, pay, fringe benefits and status. An employee does not always
require these factors, but the absence of these factors may cause dissatisfaction. As
stated by Reeve (2014) these factors are extrinsic to the work and include other
aspects that guide a company to success such as its policies, supervisory practises
and the amount of salary paid to the employees.
In the modern world, the application of the motivational factors provides
positivity among the people that arise from the type of job that is undertaken by the
employees. These can be related to the fourth and fifth stage of the hierarchical
theory of Maslow and include recognition, achievement and personal growth of the
employees. It can be difficult for employees to continue in an organisation for a long
time without these necessary factors. The motivation factors include recognition,
achievement, growth, promotion, development of skills and responsibility.
Figure 2: Herzberg’s two-factor theory
(Source: Reeve, 2014)
Process theories

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Reinforcement theory
According to Peters (2015), the reinforcement theory can assist in changing
the behaviour and perception of a person by applying reinforcement, punishment
and rewards. Operant condition can be used to dictate and guide the behaviour of
the people in a manner that is best suited for an organisation. For example, the
application of the theory in the modern world is that employers may want to be
negotiated in a positive manner by providing them with rewards and the same time
reprimanded for their actions by providing them with punishments. Extinction can
also be related with the theory as it helps in suppressing the behaviour of people.
Some of the common type of reinforcement methods that are used in modern
business world includes positive reinforcement rewards, which provides employees
with the motivation to continue work in an environment that can help them to remain
in a positive state of mind. At the same time, negative reinforcement is applied so
that employees can be reprimanded for the actions performed by them and the
manner in which these actions can be made into favourable sides for an
organisation. However, the application of the extinction method is not normally used
unless an employer aims to transform the behaviour of the employees completely.
Figure 3: Reinforcement theory

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(Source: Peters, 2015)
Expectancy theory
The expectancy theory provides choices that are related to the mental
assessment of an employee. The choice and behaviour made by an employee
promote the application of the expectancy theory and ensures that the goals and
objectives of an organisation are taken into account with the application of the
choices. According to Pinder (2014), the expectancy theory is a combination of the
goal setting theory and reinforcement theory that are the main drivers of motivation
among an employee. The process undertaken by an individual to make choices are
analysed with the application of the theories and consequently the motivational
factors are developed.
The expectancy theory allows people to act in manners that are dedicated to
act in a certain way, as the motivation to continue with behaviour is high among the
employees. The expectation of the results and the behaviour that can help in
achieving the result provides an idea about the factors that are involved in the
estimation of the desired results (Kanfer, Frese & Johnson, 2017). The application of
the theory in the modern world helps in understanding the behaviour of one people
over another and the decisions that result in the application of the behaviour.
Figure 4: Expectancy theory
(Source: Pinder, 2014)

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2.2 Comparing two managerial approaches to motivation
Managerial approaches
Traditional approach
Miner (2015) is of the opinion that the traditional approach combines the
theories preached by Taylor. The scientific management adopted by Taylor provides
an efficient economy and increases the productivity of the labours. In order to ensure
this Taylor had assumed that people are lazy and dislike work without proper money.
Hence, the application of the theory can help people to arrange their work in an
easier manner so that they get satisfaction out of the job and continue to help in the
development of the organisations.
One of the assumptions of this particularly approach is that people try to find
easier working methods so that they can continue to work in an environment that is
favourable for them. In modern world, the implication of the management service can
be attributed to the use of technology. With the aid of technology, employees find it
easier to continue with their work and be compensated for the same. This helps the
employees to work less under close supervision with the same amount of pay.
Therefore, the fair and rigid application of the managers helps in the development of
the employees in a proper manner.
Human relations approach
One of the earliest developments towards motivating employees is the
development of the human relations approach. With productivity being the focus of
business, it is necessary that the reactions of the employees in different
circumstances be taken into account. As stated by Nuttin (2014) the social needs of
the people are addressed and based on the needs the human element of motivation
is considered. In this regard, it can be said that certain studies and experiment help
in the application of the approach. These studies include the motivational theory
proposed by Herzberg and Maslow along with experiments such as Hawthorn’s
experiment and Elton Mayo’s experiment.

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In the modern world, the application of the human relations approach can help
in the useful and important approach in organisations. Every employee wants to
belong in a group or society that may be within an organisation or in the community.
At the same time, social factors and money are important for the development of an
employee. The employees and the employers need to be involved in the decision-
making activities so that motivation and trust on one another can be maintained.
2.3 Describing two management styles
Democratic
This particular management style deals with the fact that managers provide
the ultimate support for the employees. The decision-making activities are by the
employees and the employers. According to Botvinick and Braver (2015), the
democratic management style is considered as the most used management style in
an organisation particularly to gain the trust and loyalty of the employees. Start-up
organisations mainly employ the management style as it helps them to continue
gaining the loyalty of the employees and ensue that communication between the
employees and the employers are maintained in a proper manner.
Therefore, it can be said that the application of this management style can
help in motivating the employees by addressing the hygiene factors that help in the
continuation of work. In organisations related to the modern day, the application of
the democratic management style is considered as one of the flat organisational
models that may provide successful managers with an opportunity to develop a
competent workforce so that independence can be maintained within the
organisation. It helps in the creation of strong bonds among the employees and the
employers, which is pivotal towards the success of an organisation and attain its
growth.
Autocratic
The autocratic management style is considered as the opposite of the
democratic management style as it provides employees with the restriction to
participate in the decision-making activities of an organisation. The managers control
the thoughts of the employees and dictate every action that is undertaken by them.
The freedom to continue with the innovative strategies and creative attitudes are

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suppressed. The motivation of the employees is mostly based on the fear of
maintaining discipline within an organisation. The management provides clear and
concise rules about the manner in which the employees are to behave in the
organisations.
The application of the autocratic approach provides a notion that employees
are dependent on managing the jobs that are provided to them. The restriction of
new and innovative ideas provides a disadvantage for the employees as they fail to
provide their ideas based on a particular job or task. This causes de-motivation
among employees, which in the modern world may be subjected to loss of workforce
and an increase in the rate of turnover. However, certain benefits can be obtained for
example it can provide employees with an opportunity to understand the goal clearly
and the manner in which they can execute the goals. In the case of crisis, this
particular style can help in the making decisive judgements that can be beneficial for
the organisation as well as the employees involved in it.
2.4 Explaining relationship between job design and employee motivation
Job design can help employees to understand the type of motivational factors
that is required for retaining employees. The manner in which the employees can
apply their skills in an organisation provides for an explanation related to the job
satisfaction of the employees. According to Wigfield et al. (2015), job design is the
application of the motivational theories that exist that can help in improving
productivity as well as maintain the satisfaction of the employees. The characteristics
that can be considered with job design and employee motivation is that it is a simple
motivational technique that can be used by employees to ensure that employees
remain satisfied with the work that is done.
At the same time, the job design can help in the movement of employees from
one job to another. This is done so that the employees does not get bored at
continuing the same job and get to display their skills within an organisation in the
hopes of getting promotion and show case the flexible attitude related to the work
(Achtziger & Gollwitzer, 2018). These characteristics help in the designing of the jobs
in a manner that it helps the employees to remain focused and loyal to the task
provided to them.

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A personal outcome that can be gained from the job design is that the
motivation of the employees can be achieved in a proper manner. This is because
designing a proper job for the employee can be attributed with the safety need of an
employee. As per this particular need, employees prefer to undertake jobs that they
are capable of conducting and consequently improve the productivity of an
organisation. Hence, the personal outcome can be the fact that the skill of the
employee in a particular domain can be reached and based on this results can be
drawn that can help in the achievement of organisational success.
A work place outcome from the job design is that organisations can ensure
that the employees positioned for a particular job can complete it with efficiency.
According to Deckers (2018), such confidence among the employees can help in
increasing the productivity of an organisation and consequently its competitive
advantage. Thereby, job designing can not only help in the motivation of the
employees but also help in the development of an organisation.
2.5 Describing impact of job design
As stated by Cerasoli, Nicklin and Ford (2014) the job design can help in the
effective management of employees. The employees need to ensure that the job
design of an organisation can help in the effective management of the job and
ensure that it provides the organisations with opportunities to continue with its
improvement and growth. Therefore, it can be said that the job design may have a
positive impact on the managerial prowess of an organisation. The job design
consists of four options that can help in effective management of the employees.
For example, the job simplification provides employees with an easy way of
conducting the job. This particular job designing option seeks inspiration from the
scientific principle that simplifies the work undertaken by the employees. This
provides an opportunity for the employees reduce the number of tasks that are
performed by one person. As observed by Campbell (2018) one of the advantages
that managers may have with a simple job is the fact that employees with low skills
can be improved by providing them with the required training.
At the same time, job rotation provides a systematic movement of employees
from one department to another. It helps in providing variety and simulation among
the employees and provides them with an opportunity to develop their skills. This can

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help in the application and enhancement of skills of the employees and provide the
organisations with an opportunity for improvement. The management effectiveness
of the job design can help in attaining flexible working hours and ensure that workers
are trained to undertake several jobs. According to Gagné et al. (2015), this can help
in the development of skills of the employees and ensure that they remain motivated
with the possibility of gaining promotion in the future.
Job enlargement can also help in the effective application of the skills of the
employees. It provides employees with a new challenge that can help the employees
to continue with the changes that exist in the job. The managers ensembles a series
of tasks so that a broader task force can be developed that can help in the effective
application of the skills and knowledge of the employees. Managers also include job
enrichment that provides opportunities for high skilled workers to show case their
talents. This helps in providing opportunities for growth and provides learning
experience for the employees.
2.6 Discussing and evaluating ways different social influences affect groups
According to Peters (2015), social influence is considered as a process by
which individuals can make changes with respect to their thoughts and behaviours.
The perception of other people in the society is considered as they are perceived to
be similar, desirable and an expert in the manners related to being influenced by the
forces of society. The influence of society within teamwork includes influencing of
each member of the group by certain ways or another. Creative thinking may be
possible with the presence of a large number of groups as it can help them find an
overall solution during group tasks.
For example, influencing a team member to undertake a research on
leadership styles can be effectively done if the group members contribute with their
knowledge about the group members and the manner in which the group members
can evaluate the results. In this regard, the application of social impact theory can
help in analysing the likelihood of a person and the manner in which they can
respond to the social influence present at the work place (Bellemare et al., 2016).
One of the application of the theory is that information source is based on the
analysis of three functions.

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The functions can be attributed with individual work effectiveness and
motivation so that team members can maintain closeness among one another and
strengthen their policies within the organisation. In the modern world, people
possess abilities to influence others. This is considered as one characteristic that
lacked in the yesteryears and thereby, the manner in which people responded to
group work is different in the modern world. The motivational factors are related to
the leadership styles that help in analysing the effectiveness of the group that an
employee belongs. As stated by Bellemare (2016) workplace performance plays a
crucial role in the development of teams and its effectiveness in the organisations.
3.0 Leadership
3.1 Comparing and contrasting differences between management and
leadership
Comparison Management Leadership
Meaning According to Goleman
(2017), management is an
art of organising and
coordinating things so that
efficient practises within an
organisation is followed
Leadership can be considered as a
skill of leading others by providing
them with an example of the manner
in which a work can be done
(D’Innocenzo, Mathieu &
Kukenberger, 2016)
Basis The basis of maintaining
management in
organisations is by
influencing control
The basis by which leadership works
is solely on the trust of the
employees
Emphasis Managing activities are
important for the proper
dominance of work and for
getting the job done
The emphasis is on inspiring people
and ensuring that the people get to
learn new things about the manner in
which they can be effective in an
organisation
Power Managers rule over the
employees and dictate the
activities undertaken by
them
Leaders influence people to take up
challenging jobs by providing them
with proper guidance

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Focus Managers bring stability in
an organisation by
analysing the situation and
taking relevant decisions
Leaders encourage changes by
stating the need for change and its
importance in the organisations
Strategy Managers are normally
reactive and the reactions
can be attributed to the
current situation
Leaders also undertake proactive
strategies so that inspiration can be
provided to the employees (Bolman
& Deal, 2017)
Perspective Managers have a short
range of perspective
It requires good foresightedness
Table 1: Comparison between management and leadership
(Source: Created by author)
3.2 Describing two leadership styles
Basis Autocratic Democratic
Attributes Autocratic leadership is
centred on the boss as
the boss holds the
authority over the
employees (Antonakis &
Day, 2017)
Democratic leadership
provides freedom to the
employees to be involved
in managerial decision
making schemes
(Fairhurst &
Connaughton, 2014)
Skills Skills needed for this
leadership is a
dominating nature and
ability to control others
The skills required include
being communicative with
the employees and
understanding the
requirements of the
organisations
Strengths It can help in setting clear
expectations for the
employees
As observed by Covin
and Slevin (2017) it helps
in motivating the

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employees
Weakness Employees does not feel
motivated and feels
controlled
Excessive dependence
on employees
Effectiveness in
organisations
According to Johnston
and Marshall (2016),
application of this style
can help in maintaining
control in organisations
This style allows
employees remain
motivated and loyal
towards the organisations
Table 2: Leadership styles
(Source: Created by author)

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