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enough market to allow the business to grow and realize its potential。 You 
can always add a bit on later。 
In summary; the mission statement should explain: 
。 what business you are in and your purpose; 
。 what you want to achieve over the next one to three years; ie your 
strategic goal; 
。 how; ie your ethics; values and standards。 
Above all; mission statements must be realistic; achievable – and brief。 
Objectives 
The milestones on the way to realizing the vision and mission are measured 
by the achievement of business objectives。 These objectives ‘cascade’ 
through the organization from the top; where they are measures of profit; 
through to measures such as output; quality; reject rates; absenteeism and 
so forth。
146 The Thirty…Day MBA 
Objective se。。ing is a primary process in which clear performance measures 
are agreed with every employee。 The achievement of specific objectives is 
the ultimate measure of effective leadership。 
MANAGEMENT 
Leadership and management are not the same thing; but you need both。 A 
leader challenges the status quo; while a manager accepts it as a constraint。 
A boss usually has to be both a leader and a manager。 Dozens of catchy 
titles such as bo。。om…up; top…down; management by objectives and crisis 
management have been used to describe the many and various theories as 
to how to manage。 
Judy Lever and Vivienne Pringle started Blooming Marvellous over 20 
years ago when they were both pregnant。 After searching for the kind 
of fashionable clothes they used to wear and drawing a blank; they 
guessed they had found a gap in the market。 They stated their purpose 
and goals as follows: 
Arising out of our experiences; we intend to design; make and market 
a range of clothes for mothers…to…be that will make them feel they can 
still be fashionably dressed。 We aim to serve a niche missed out by 
Mothercare; Marks & Spencer; etc; and so bee a significant force 
in the mail order fashion for the mothers…to…be market。 
We are aiming for a 5 per cent share of this market in the Southeast; 
and a 25 per cent return on assets employed within three years of 
starting up。 We believe we will need about £25;000 start…up capital to 
finance stock; a mail order catalogue and an advertising campaign。 
They kept on their day jobs and would meet after work every day 
at Judy’s house to answer enquiries; send out leaflets and dispatch 
products in the post every day。 They outsourced work to a pattern 
cutter; a small factory; some fabric suppliers; and eventually a small 
distribution centre。 After a year or so of modest sales they felt confident 
enough to set up their first business premises – a 1;200 sq ft warehouse 
on a business park staffed by four of the women who had been working 
in their distribution centre。 
The pany now employs 150 people; has 14 shops and has 
extended its range to include nursery products; toys; themed bedroom 
accessories and a separate brand called Mini Marvellous that caters 
for children aged 2–8 years。 Over a third of sales e directly via their 
website (bloomingmarvellous。uk)。
Organizational Behaviour 147 
American engineer Frederick Winslow Taylor (circa 1911); who is credited 
with coining the phrase ‘time is money’; was one of the pioneers of the 
search for the ‘one best way’ to execute such basic managerial functions 
as selection; promotion; pensation; training and production。 Taylor 
was followed by Henri Fayol (1919); a successful managing director of a 
mining French pany; who developed what he called the 14 Principles 
of Management; recognizing that his list was neither exhaustive nor universally 
applicable。 He also set out what he saw as the five primary functions 
of a manager。 Nearly a decade later; Luther Gulick; an American; 
and Lydnall Urwick; a founder of the British management consultancy 
profession; expanded Fayol’s list to seven executive management activities 
summarized by the acronym POSDCORB: 
。 Planning: determine objectives in advance and the methods to achieve 
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 flo

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