armstrong hnbk man lead2 aw pb:Layout 1 26/5/09 11:49 Page 1 2ND “The definitive guide on the processes of management and leadership.” EDITION Commerce & Industry “A revealing book that will help readers to develop leadership skills in others and guide them towards personal excellence as a leader.” Business Executive OA “Provides a complete presentation of all that students need know to pass CIPD examinations.” FR M 2ND EDITION Management Services M A ARMSTRONG’S Armstrong’s Handbook of Management and Leadership is the definitive guide to the practice of NS management. It presents the key skills that will help all managers and aspiring managers to carry AT out their roles effectively and achieve results. Packed with essential information on key theories GR E and best practice it contains many checklists, diagrams and summaries. This second edition has O HANDBOOK M been updated to reflect new thinking and ideas in this area and includes: N E NG (cid:129) the practice of management – including (cid:129) enhancing customer relations –approaches T ’ management roles, leadership and strategic to customer service and achieving high AS OF MANAGEMENT management; levels of customer service; N H (cid:129) delivering change – the processes and (cid:129) enabling continuous improvement – D context of change; including quality management. A AND LEADERSHIP L EN A D The book is aligned to the Managing for Results module which is part of the Chartered Institute D A guide to managing for results of Personnel and Development’s Leadership and Management Standards. The text also serves EB as an ideal resource for those studying introductory management modules on business and HR RO programmes. S O H IK P The book is accompanied by additional online material for use by instructors as well as a set of questions and answers to help students test their learning. To access these resources go to www.koganpage.com/resources and under “Academic Resources” click on either “Student Resources” or “Lecturer Resources” as applicable. A Michael Armstrongis a Companion and former Chief Examiner of the Chartered Institute of R M Personnel and Development, joint managing partner of e-reward and an independent M management consultant. He has sold over 500,000 books on the subject of HRM (published with SIC Kogan Page). TH RA OE NL G £29.99 US $55.00 ISBN: 978-0-7494-5417-3 Kogan Page Kogan Page US 120 Pentonville Road 525 South 4th Street, #241 London N1 9JN Philadelphia PA 19147 9 780749 454173 United Kingdom USA Michael Armstrong www.koganpage.com Human resources i ARMSTRONG’S HANDBOOK OF MANAGEMENT AND LEADERSHIP ii This page is intentionally left blank iii ARMSTRONG’S HANDBOOK OF MANAGEMENT AND LEADERSHIP A guide to managing for results 2ND EDITION Michael Armstrong London and Philadelphia iv Publisher’s note Every possible effort has been made to ensure that the information contained in this book is accurate at the time of going to press, and the publishers and author cannot accept responsibility for any errors or omissions, however caused. No responsibility for loss or damage occasioned to any person acting, or refraining from action, as a result of the material in this publication can be accepted by the editor, the publisher or the author. First published in Great Britain and the United States in 2005 by Kogan Page Limited Second edition 2009 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or trans- mitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licences issued by the CLA. Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned addresses: 120 Pentonville Road 525 South 4th Street, #241 London N1 9JN Philadelphia PA 19147 United Kingdom USA www.koganpage.com © Michael Armstrong and Tina Stephens, 2005 © Michael Armstrong, 2009 The right of Michael Armstrong to be identifi ed as the author of this work has been asserted by him in accord- ance with the Copyright, Designs and Patents Act 1988. ISBN 978 0 7494 5417 3 British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Armstrong, Michael, 1928– Armstrong’s handbook of management and leadership : a guide to managing for results / Michael Armstrong. p. cm. Rev. ed. of: A handbook of management and leadership : a guide to managing for results / Michael Armstrong, Tina Stephens. 2005. Includes index. ISBN 978-0-7494-5417-3 1. Management--Handbooks, manuals, etc. 2. Leadership--Handbooks, manuals, etc. I. Armstrong, Michael, 1928- Handbook of management and leadership. II. Title. HD38.15.A76 2009 658.4’092--dc22 2009008237 Typeset by Saxon Graphics Ltd, Derby Printed and bound in India by Replika Press Pvt Ltd v Contents Preface to the Second Edition xi Part I The Practice of Management 1 1. The Processes of Management and Leadership 3 Management 3 Leadership 4 Management and leadership compared 7 Infl uences on management 10 2. The Role of the Manager 15 What is a manager? 15 What do managers do? 17 How do managers do it? 20 What is an effective manager? 25 What do line/middle managers contribute? 27 3. The Role of the Leader 31 What is a leader? 31 Types of leaders 32 What do leaders do? 33 How do leaders do it? 34 What makes a good leader? 36 What is the signifi cance of followers? 39 vi Contents Part II Approaches to Management 41 4. Managing for Results 43 Planning 44 Setting objectives and targets 45 Organizing 49 Making things happen 49 5. Managing Strategically 54 Strategy 54 Strategic management 55 Developing a shared vision 56 Developing strategic plans 57 Strategic capability 58 6. Managing for Performance 60 High-performance culture 60 High-performance work systems 62 Managing individual performance 66 Managing team performance 68 7. Managing the Business 71 On being business like 72 Preparing a business plan 74 Making a business case 75 Financial budgeting and control 77 Cost–benefi t analysis 78 8. Management Skills 79 Communicating 80 Report writing 82 Making presentations 85 Motivating 88 Coaching 89 Decision-making 91 Delegating 93 Facilitating 99 Contents vii Giving feedback 100 Networking 102 Problem-solving 103 9. Managing Systems and Processes 105 Managing systems 105 Managing processes 106 Examples of systems and process management 106 The confl ict and challenges of managing systems and processes 107 10. Managing Health and Safety 110 The importance of health and safety in the workplace 111 Health and safety policies 111 Conducting risk assessments 112 Health and safety audits 115 Health and safety inspections 116 The distinction between risk assessments, audits and inspections 117 Accident prevention 117 Occupational health programmes 118 The responsibility for health and safety 119 11. Self-development 121 The process of self-development 121 Other methods of management development 123 Self-management strategies 126 Part III Organizations 129 12. Understanding Organizations 131 Organizations and organizing 132 How organizations function 132 Organization structure 134 Types of organization 135 Organizational culture 141 Organizational processes 145 Understanding organizational policies 150 viii Contents 13. Designing Organizations 152 The process of organizing 153 Aim of organizational design 153 Conducting organization reviews 154 Organizational analysis 155 Organizational diagnosis 155 Job design 157 14. Organization Development 159 Organization development defi ned 159 Organization development strategies 160 Assumptions and values of organization development 160 Organization development activities 161 Part IV Delivering Change 165 15. The Process of Change 167 Types of change 167 How change happens 173 Organizational dynamics – how organizations grow and change 174 16. Change Management 176 Change models 177 The steps to effective change 178 How people change 179 Resistance to change 180 Developing and embracing a change culture 182 Identifying the need for change 182 The benefi ts of change 183 Risks of change 184 Planning the change programme 184 Requirements for success in managing change 186 Organizational transformation 188 Holding the gains 191 Contents ix Part V Enhancing Customer Relations 193 17. The Essence of Customer Relations 195 Developing a customer-centric culture 195 Customer relationship management 198 Customer service 200 Customer service activities 202 Elements of customer satisfaction 203 18. Delivering High Levels of Customer Service 206 Customer service strategy 208 Assessing customer needs 208 Identifying target customers 210 Communicating to customers 211 Measuring customer satisfaction 212 Developing products and services to meet customer needs 214 Providing the infrastructure for customer service 214 Models of customer service 214 Setting standards for customer service 216 Monitoring the delivery of service standards 217 Building satisfaction and keeping customers 218 Internal customers 218 Defi ning required attitudes, skills, knowledge, behaviours and competencies 219 Developing attitudes, skills and behaviours 224 World-class customer service examples 227 Part VI Enabling Continuous Improvement 229 19. Continuous Improvement 231 The nature of continuous improvement 231 The requirements for continuous improvement 234 The conditions and behaviour that promote continuous improvement 236 The framework for continuous improvement 238 Approaches to continuous improvement 239 Continuous improvement techniques 241 Continuous improvement programmes 244
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