TMA 2

Course Title Course Code Class ID Tutor Name Class Code Name Student ID I/C No No of Pages

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MANAGEMENT IN ORGANISATIONS BMG 501/03 6037144 LIEW ENG SIONG 7MIO1 PRIYASHREE TILAKA 071130116 720718-10-5676 16 pages (excluding cover page)

Part AQuestion 1(a): Empowerment can be defined as giving someone the skills, knowledge, motivation, opportunity and power to encourage them to take initiative, responsibility and accountability over their actions and decisions. To empower a person is to give them an opportunity to challenge themselves to make effective decisions, learn from mistakes, solve problems and gain confidence within themselves. It basically is to pass authority and power to another person. Empowerment and power only exist between people. When power is given to an individual, that person will hold that power until it has been taken away by another person. However, empowerment is slightly different. Once empowerment is given to an individual, it becomes more of an internal characteristic and will still remain within the personality of a person. A person who has been empowered by his superior and peers will behave positively towards his work and empower himself to accomplish anything that has been put forward to him regardless of his position in the company. A good manager can even empower a dispatch clerk to have confidence and be effective enough to handle any problems that is related to his line of work.

Empowerment is resented and rejected because:Rejected by Management because: a) Management may feel that the employees lack the skill to have an insight like them to make intelligent decisions for the company. b) Employees are not qualified enough to decide on beneficial conclusion. c) A bad decision made by an employee may cost the company a minor loss of revenue or disruption to the work process. d) Lack of trust in the employees because of fear of abuse of companys confidential information. e) Insecurity or fear of the Manager of losing his position of authority if he hands over the decision making authority to them.

Resented by employees because: a) Some are not interested because they will be reprimanded for making wrong decisions. b) Fear of criticism in case of failure or if objectives are unrealistic and unachievable. c) Employees feel they may not be given proper information or knowledge to make a proper decision. d) Lack of confidence because they have been trained to ask the managers permission for every small minor issue. e) Fear of carrying the burden of blame from teammates should something go wrong. In my opinion, making mistakes is part and parcel of a learning process and it is a managers duty is to empower the staff and give them opportunities to enhance their skills and knowledge. They should be developed to have the confidence to overcome obstacles and handle problems effectively. All this can only be mastered with practice and hands-on experience.

Question 1b) I would choose legitimate power over expert power. I would choose legitimate power over expert power because it allows a certain degree of freedom when it comes to making decisions. I prefer decisions to be made collectively along with my peers. A formation of a good coalition with my department staff and coworkers will empower everyone under my jurisdiction to work hard and this will reinforce the staff honesty, confidence and involvement in the companys objectives. If I was given legitimate power I would delegate tasks effectively and value feedback sharing this power with my subordinates as long as I have their trust, respect and it benefits the company as a whole.

Legitimate power is power of authority given by the company to an individual to make effective decisions based on achieving the company goals and objectives. It gives the individual added advantage to hold legitimate power as it allows them to do their job effectively and confidently. This comes from the companys chain of command and given by someone whom is of higher authority.

Legitimate power can be increased, decreased or removed totally depending on the persons performance and abilities to handle the position and the responsibilities that come along with it. The advantages of legitimate power: A person with legitimate power can assign a task and responsibility to a surbordinate due to the authoritative role that has been accorded to him by the top management. Can influence another person to carry out a task because of current position of authority Can exert their power to offer rewards in cases of salary increments, promotions and bonuses for deserving staff. The disadvantage of legitimate power This type of power can be removed totally and just as fast as it was given to the individual.

Expert power lies within an individual who is specialized in that particular field of interest and they hold exceptional knowledge and experience from others who are not related to that job scope. For example : doctors or surgeons hold expert power over their patients. They hold a certain level of expertise and added knowledge to be able to make decisions to save a life. Another example is that a long time employee will also have more expert power over the newer staff due to historical experiences and the vast amount of knowledge on that function of the job. The advantage of expert power The individual holds expert knowledge in their specific field and the subordinate will regard him as the sole decision maker. The individuals authority will usually not be questioned or challenged by anyone else due to his expertise. People who hold expert power have the ability to influence other when making decisions. The disadvantage about expert power Decision making can be rather stressful because everyone will tend to depend on the person holding the expert power to make a decision.

 It is more stressful for the expert person especially if certain outcomes are unclear and the burden of blame will lie upon this person, something should go wrong. It is difficult to a whole department or unit of people based on expert power alone because it only specializes in one area of expertise.

Question No. 2a) Delegation of authority means the act of assigning certain roles and responsibilities by a manager to his/ her subordinates. Delegation is not a total surrender of authority but it is a means to allow subordinates to oversee added value roles and responsibilities and to engage them to work more efficiently and productively. Effective delegation is basically an important skill in a managerial role. A manager should delegate the day to day routine jobs for subordinates to administer. This will enable the manager to use his legitimate power and expert skills to plan and oversee other more important decisions. When a manager has too many functions to oversee it is only appropriate that he delegates and assign appropriate job roles to all his subordinates accordingly. This process gives them the opportunity to enhance their morale, knowledge and skills with hands on experience on the job. However this does not mean that the manager will have less authority. In my opinion the statement above is not true if the delegation is carried out following the proper guidelines. There are many companies that have drawn up LOA (Limits of Authority). Having limits of authority defines the authority of each managerial position and ensures there is no abuse of power because of its restrictive guidelines. LOA policies basically outline accountability and responsibilities of each managerial post and with such policies in place, the managers may still retain their authority while delegating job roles to their subordinates. The main advantage of delegation of authority is: To reduce the work load and burden of the manager, so that he or she may have more time to do planning, budgeting and other more important functions.

To enable the subordinate concerned to make quick decisions in the event the manager is not available. Due to well defined guidelines and protocols, the subordinate will have the knowledge and skills to handle problematic situations efficiently. This reduces time wastage and increases productivity.

To provide appropriate training as a means for personal growth and self improvement for future promotions. To encourage subordinates to be a team player. It motivates them to give their best effort especially when they hold the responsibility of that job. Engaging the employee in a responsible role will further encourage loyalty and dedication from them. Delegation further encourages an effective chain of communication with other staff. The subordinate will also be able to relate to previous situations and make decisions and minor changes if the need arises.

However the manager must also be aware of certain issues before he decides to delegate any kind of task to a chosen subordinate. The manager must be mindful that total authority should not be given. The subordinate must not hold the right to make major important decisions. The following must be done to ensure there is no misuse of authority. A manager must clarify and communicate the job assignment properly to the subordinate. If not this will cause confusion and miscommunication. Choose the right person for the right job:- Parity. If the manager chooses a wrong person who is incompetent to handle the job, this may lead to financial loss in the project. Additionally this will increase the Managers fear of delegating authority again as he is ultimately accountable for everything under his jurisdiction. Be clear and precise on the delegated tasks to ensure that the subordinate does not overstep the boundaries of authority. Some managers may feel fear of losing their authority once the job is delegated. Likewise there are also indeed some subordinates whom will take advantage of the situation to gain power to override the managers authority. In view of this the manager must be absolutely certain of the subordinates ability before delegating any task.
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In view of fear of abuse of private and confidential information, the manager must ensure that the subordinate knows the rules of reprimand and suspension from work.

For example: in my companys scenario. My HR manager who was previously in charge of Training and Development and Performance appraisal was targeted for a promotion. She was then delegated more job functions that had jurisdiction over payroll and staff compensation and medical benefits. In view of that she delegated more authority to me to oversee the Training and Development function. I was given the role to meet up with external corporate trainers, draw up a TNA (Training Needs Analysis) plan that met with the requirements of our Corporate Strategy and evaluate Staff Appraisal feedback. These new jobs functions of designing a Training Needs Analysis and the customization of a Corporate Training plan was something that was never attempted before by myself. This opened up a whole new world of opportunity and responsibilities for me. I stood to gain additional knowledge and skills and it further motivated me to take these added value roles to further improve my confidence in speaking and writing. This did not make make my HR manager have lesser authority, It made her more important and available to do oversee more functions like planning, budgeting and setting new corporate goals.

Question No. 2b) Structure is a type of framework used in companies to determine a hierarchy and develop and communication structure so that there is a smooth flow of work processes. Mechanistic structure and organistic structure are two types of structure in certain organizations Mechanistic system is when a company has a very rigid structure and a stable environment. Mechanistic companies are very similar to a bureaucracy type of organization and it is not able to adapt to the external changing environment. Such companies maintain loyalty and practices centralized authority. Examples of such companies are semi governmental bodies like EPF and institutions like University Malaya or USM. To gain entrance into a mechanistic organization, a long selection process is required and upon entrance, strict obedience and loyalty is required at all times. Innovation and creativity is not needed in such an environment. Demand of its product and pricing structure need not change.
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If such company was to adapt to a more organic approach there would be major restructuring and changes that the whole institution would have to go through.

Organic structure in the other hand is on the other extreme end. It has a fluid structure and is able to change and adapt to the environment. Such structure can handle unexpected circumstances when situations arise. Its roles are usually not strictly defined by the book.

For example if a University that practices mechanistic structure has to adopt an organic structure, it would have to go through major internal structural change. The change to organic design structure would have to benefit the organization as a whole. As universities are becoming more competitive these days, the old concept of rigidness would have to change. The university must change to become a competitive player to sustain its number of students and its quality of education. If the organizational structure is outdated, the University may not be able to sustain its high standards of practice. The following steps would have to be undertaken by the University if it needs to adopt an organic structure. The management would have to be creative, innovative and develop new business models. There must be an effective chain of communication at all levels within the administration. Authority would have to be decentralized and decision making process must be carried out collectively within the top management. Employee empowerment needs to be carried out via training and development programs. Provide opportunities for staff to upgrade their skills and knowledge. Allow different functions to work together to encourage a more diverse environment.

Question No. 3a) There are basically two types or organizational change

1st Order change This type of change in normally known as continuous improvement change and it is a more linear type of adjustment. Such change does not cover fundamental structural change that will affect major business processes. 2nd Order Change This of is more of an overall transformational change and involves dramatic transition to the company. This can be classified as a revolutionary change as it may affect the company as a whole. 2nd order radical change occurs when: a) New Structure to systems and procedures:- major changes in technology as IT takes over many job functions and leave many workers redundant. b) New Management:- New top management and board of directors with different set of ideas and ways of doing business c) New interaction patterns:- Internal communication structure and job roles changes that refines and modifies job functions and processes. d) Power Redistribution:- redistribution of power and control on the top management level due to new investments and acquisitions. e) Restated mission:- changing or diversifying the business to a new market with new goals and objectives.

In my company there have been both types of changes recently. 1st order change: There has been an internal restructuring which resulted in the shuffling of regional managers all over our offices in Malaysia. After getting the new Manager for the Southern Region office, minor changes and existing work responsibilities have been taken place. From the organizations point of view this restructuring will bring added benefits and changes to the Southern Region. With a younger and more dynamic Manager to oversee the southern office business, the top management anticipates that he will bring about new ideas, increase sales and implement a a fresh new approach to the style of management. This type of change is more of a linear change as it still maintains business processes and job roles of all the staff. There are some whom may resist this

change initially but with proper communication and managing styles, these new changes can be seen as minor step but a very necessary action to sustain growth. 2nd order change In 2010, my company had been bought over by another corporation and this had brought about dramatic changes to our organization and business structure . Downsizing some departments and eliminating certain managerial posts was the first step to restructuring the organization hierarchy. The new management had also held countless negotiations on staff issues and business process reengineering. They then reorganized various managerial posts with added responsibilities and new objectives. Our existing managers and heads of departments had to overcome organization inertia and it became a necessity for all staff to adapt to the new management and the changing business environment. Fortunately the change had not been so impactful on the lower level staff. The transition period stretched to 1 year. During that time there were a few resignations and internal restructuring. From the board of directors perspective new acquisitions would always bring about risks. However with effective and smooth transition policies in place, the take- over process was smooth and less costly.

The new board of directors had to oversee the following factors to withstand a successful 2nd order change: Changes in Business Process Re-engineering (BPR), ERP(Enterprise Resource Planning) and Customer Relationship Management (CRM) methods. Balancing continuity and environmental change Reducing take over costs Employee retention and freeze recruitment. Power restructure Communication channels restructure.

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Question No. 3b) A manager must use personal assessment and communication tools to asses a change in employees behavior. Change cannot be prevented in any company and signs of resistance must not be ignored by the manager. An employee who is resistance to change will show the following systems: Unexplained illness or injury:- the employee will complain of sickness or take frequent medical leave. Increased absenteeism:- there will be incidences of increased emergency leave or absenteeism due to avoidable personal issues. Breakdown in communication: The employee will remain aloof and distant and may not respond to enquiries and questions. No team spirit:- there will be lack of team work among staff or the employees may be left out of discussions due to unethical behavior. (for example: always starting an argument during discussions). Low productivity: there seems to be low morale and employees seem to be dragging their time to get the job completed. Or alternatively they may look busy but the work has not been completed. Silent, sulky, withdrawal and resentment towards colleagues and

Managing employees that are resistant to change will take a considerable amount of effort from the Manager. Change Mangers must have the skill to observe behavioral changes and reserved attitudes of the employees. An employee who exerts overt behavior shows his feelings and voices his dissatisfaction in the open. His change is attitude can be observed. A person who has covert behavior is more discrete and does not show emotions easily. He will bottle up the emotions and stress within themselves and this could lead to more problems in the future. A manager who manages both types of of people would need to look into the following factors in order to stabilize the new environment Constant communications - the manager must constantly communicate

through intranet system on current changes, clarify issues and notify everyone of the information or any change according. The manager must not let rumors or untruth spread around the departments.
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 Manager must have face to face meetings and rationalize and understand the viewpoint of the affected employees and make them understand the important and the necessity of change. They must eventually learn to adapt or be left behind as the company moves ahead. Change is inevitable so proper training programs or induction courses should be customized to upgrade and update the knowledge of the workers. Every employee should be given the opportunity to talk about how impactful the change is on them. Counseling sessions should be provided until everyone has fully adapted to the change. Counselors should be employed to engage the employees in conversations to gather feedback via emails or surveys. This will help collect vital information about problematic issues from the lower level employees while maintaining their confidence in the system. PART B CASE STUDY Q No. 1 A charismatic and transformational leader is similar because both traits inspire, energizes and motivates team players in the industry. So in my opinion, yes, both Mulcahy and Burns have shown charismatic traits and exemplified transformational leadership qualities because they have lead the employees of Xerox exceptionally well by changing practices and influencing attitudes and beliefs of staff and top management. They have given inspiration for employees to achieve targets and to be fully involved and focused in the right approach. Their leadership has been proven to be a huge success through the soaring profits of Xerox over the years. When Mulcahy took over, she quickly enlisted Burns to oversee Xeroxs economic loss. Burns had shown exemplary leadership qualities and fearlessness when it came to taking matters into her own hands. The key factor for the business turnaround was the research and development. Burns was responsible for product development, design, marketing, sales and services, while Mulcahy travelled the country to reassure Xeroxs shareholders and investors on the positive changes. Burns changed many things in Xerox like automating invoices, accounting sheets, business processes and creating digital document sharing functions. This brought

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massive profits to the company. Both Burns and Mulcahy showed that they had the courage to set new goals and the determination to see it through to the final stages of implementation. According to Burns she believes there are four basic approaches to being a great leader: Fearlessness Confidence Specialization in one particular field Being a leader for others

Burns has had countless interviews on many talk shows about her success and leadership style. Below are several key points from Burns from her various TV interviews about `Leadership that speaks the truth. Reiterates that leaders must place their subordinates as a priority. It is all about being associated with greatness and nothing about being great yourself Her famous quote WHERE YOU ARE IS NOT WHO YOU ARE Says that competitors are not rivals but are business partners to use as a learning platform to help solve bigger and greater problems. Encourages critics to speak against her so that she can further improve and act quickly to rectify mistakes. Encourages teamwork and brainstorming because she believes that it takes more than one brain to solve a problem.

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Always keep your eye focused on the right approach and dont get blinded by success and luxury. Be fearless in making decisions (not reckless). Finding a problem is easy but deciding what to do is more difficult.

Because of both Mulcahy and Burns leadership styles, Xerox today has evolved from its old image and one of the few companies that have Digital Document Sharing and has won many awards such as the 2011 Green IT Awards for sustainable IT process and the 2011 BLI Winter Pick Award for outstanding document management solutions.

Section B - Q No.2

The Dynamic Duo

There is a high probability that Ursulas leadership style would be similar to Mulcahy. As Burns was working her way up the ranks in Xerox, she had earlier stated the Mulcahy was her idol. When a leader like Mulcahy is idolized there is a strong possibility that Burns would try to emulate Mulcahys concepts and values. When Mulcahy selected Burns and when they started working together, they were known by many people as The Dynamic Duo. According the Burns, both she and Mulcahy hold a strong partnership, same vision and similar working traits. It would seem that they had similar mind sets too. Apart from that, they were also comfortable with criticizing one another constructively. Burns would listen to Mulchays criticism while giving out her own as well. They are both headstrong and strongly opinionated when it came to complex issues and in my opinion they made a perfect pair to lead Xerox to success.
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Section B - Q. No 3 Burns is from a poor family whose mother had worked hard to get her a good education. She has indeed come a long way from her grassroots to be currently ranked No. 17 on the most powerful women on Forbes list. She has been quoted, saying that she has learned to appreciate the finer things in life apart from just making dollars. This is probably due to the hard lifestyle where she had come from. Her sense of personal meaning came from both, her mother and her mentors. She also has other important values that defines herself, such as fearless leadership, sound business ethics and good self governance. She has said that trust is important between peers and co-workers. She has also advised that everyone should lead a balanced lifestyle and define their personal values and work matters accordingly. After gaining employment in Xerox in 1980, she worked through the ranks through sheer hard work while gaining loyalty and trust from superiors and subordinates. After being promoted by Mulchay, she expanded Xeroxs boundaries to digital documentation within a few years. She simplified work processes so that staff can focus on bigger and broader matters. As a leader she also had to make some unfavorable decisions in order to save Xerox from incurring losses In the process of simplifying job processes and outsourcing certain functions, Xerox had to cut 2,500 service related jobs just to cut companys costs. Burns then started diversifying into digital documentation business processes. With such exceptional values, personality and sucess, she became the 1st African American woman to run a Fortune 500 Company. She is also a board of director in Exxon Mobil and American Express and other companies. She is also the founding board of director for Change of Equation which supports and improves the US education system in `STEM (Science, Technology, Engineering and Maths)

Section B - Q. No 4

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A charismatic leader is similar to a transformational leader as they are very committed to the job and have high expectations of themselves and those reporting to them. A charismatic leader is high on the Blake and Moutons managerial grid which is strongly `employee orientated and `production orientated. According to Fiedlers structural chart, the characteristics of such a leader would usually favour strong relations with surrounding people. Trust and loyalty from subordinates are an important part of the job whenever such a leader is in a position of power. A charismatic leader will practice the delegating style of leadership. He will exert his influential power to show you that he has full confidence and will trust you to complete the task that has been delegated. Additionally a charismatic leader influences followers through dynamic personality, charm and grace. They inspire and energize the surrounding people. They have the ability to make people look upon them as idols and role models. They get people to carry out a task through influence and not through legitimate authority. Charismatic leaders are also good at observing the people and the environment. They have the ability to listen attentively and provide well defined answers to any questions. Many politicians hold charismatic leadership power over their followers. They have influential power to make you feel important. They will clearly state their goals and objectives and their passion to fulfill it. Charismatic leaders are very devoted and emotional towards achieving their goals and many followers find this motivating and energizing. They would also have the need for achievement (nAch) characteristics within them. According to Conger and Kanungo (1998) charismatic leaders show 5 basic qualities: i. ii. iii. iv. v. Great vision and very articulate to details Sensitive to the working environment Sensitive to the surrounding people Take personal risk to see the job done Behaviour that is unconventional

The downside about charismatic leaders is that they hold such high believe in themselves and their team, that they take costly risks in uncertain situations.
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References: Gretchen M Spreitzer (1995). Physiological empowerment in the workplace: Dimension, measurement and validation. Academy of Management Journal Vol 38. No.5, 1442-1465. http://webuser.bus.umich.edu/spreitze/psychempowerment.pdf. (Accessed: 20 April 2013) Kalyan City Life (n.a) Meaning of Delegation of Authority. http://kalyan-city.blogspot.com/2010/07/delegation-of-authority-principles-and.html. (Accessed: 20 April 2013) SunnyKwantlen (2011).Mechanistic and Organic Organizational Structure. http://sunnykwantlen.wordpress.com/2011/06/28/mechanistic-and-organic-organizationalstructure/. (Accessed: 22 April 2013) Ian Palmer, Richard Duntford, Gib Akin (2009). Managing Organizational Change. 2 Ed. Chapter 7. McGraw Hill/ Irwin. Boston US. IMA. (n.a). Change Management Methodology: Resistance can be overt or covert. http://www.imaworldwide.com/blog/bid/171893/Change-Management-Methodology-ResistanceCan-Be-Overt-or-Covert. (Accessed: 22 April 2013) President Beverly Daniel Tatum. (19 Nov, 2009). CEO Conversation: Emerging Leaders Globally Interview at Spelman College USA. http://www.youtube.com/watch?v=XOx4fVwlwJU. (Accessed: 22 April, 2013) Wobi(n.a). Ursula Burns. Leadership that speaks the truth. http://www.youtube.com/watch?v=x3B9dGprDvg. (Accessed: 23 April 2013) Wobi (n.a.) Ursula Burns. Where you are not who you are. http://www.youtube.com/watch?v=u-jSsm-uZa0. (Accessed: 23 April 2013) Bennet J Loudon and Steve Sink (Nov 2012). Xerox will lay off 2,500 employees. USA Today. http://www.usatoday.com/story/money/business/2012/11/14/xerox-layoffs/1704365/. (Accessed: 23 April, 2013) Mind tools (n.a) Leadership Styles: Leadership skills from Mindtools http://www.mindtools.com/pages/article/newLDR_84.htm Changing Minds (2002-2013).Charismatic Leadership. http://changingminds.org/disciplines/leadership/styles/charismatic_leadership.htm. (Accessed: 23 April 2013).
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