Realize. The Theories Behind Management

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1 Realize The Theories Behind Management 2

2 Table of Contents Introduction... 5 Ch. 1: Employee-Centered Management... 6 Ch. 2: Managerial Grid Ch. 3: Motivation Ch. 4: The Contingency Model Ch. 5: Maslow s Hierarchy of Needs Bibliography Index

3 Introduction Chapter I Employee-Centered Management The Realize handbook is designed to provide a brief overview of management theories in a short and concise format. Within it is are simple descriptions to help managers better understand the multiple aspects of management. This handbook can be referenced to in multiple management circumstances to provide insight into the world of managing and show examples of different approaches to take in an organization. This handbook will help leaders at any position realize their full potential as successful managers. Employee-Centered Management focuses on the employee and his or her well-being versus jobcentered supervision, when the focus is on what tasks need to be completed. Think of your employees as human beings, not just people to get the job done. Make clear to your subordinates what the objectives are and what needs to be accomplished and then give them the freedom to do the job. The focus here is on the quality of leadership. There are three ways to achieve this: promoting social systems, having effective communication, and instilling group loyalty. 5 6

4 Social Systems The Principle of Supportive Relationships says that if relationship needs are met, attitudes about work improve. You may not be able to control all of your subordinates relationships, but you can create an environment where supportive relationships can be formed and sustained. Communication There is a lot that goes into communication, which means there is a great chance for misinterpretation. Careful communication will liberate yourself and your subordinates from unnecessary problems. Effective communication will yield higher performing employees. Often, the manager thinks he understands his employees, but employees don t feel that the manager does. You want to create an organization of a tightly knit social system because this is a mark of a successful manager. A good superior is supportive, friendly, kind but firm, confident, trusts subordinates instead of being suspicious, and allows for proper social interaction between coworkers. A little pressure in the workplace is okay, but research shows if you decrease the amount of unreasonable pressure, your subordinates will trust you more, and be more willing to come to you for problems. 7 8

5 Group Loyalty Chapter 2 The Managerial Grid Group methods of supervision increase productivity and job satisfaction. Work groups which have high peer-group loyalty and common goals are effective in achieving those goals and yield higher productivity. As a supervisor, if you promote high peer-group loyalty, you will get the greatest output. Increased group loyalty leads to greater identification within and a sense of belonging, more friends, a favorable attitude toward work, increased production goals as well as increased production. According to the Managerial Grid Theory, there are six elements of leadership that are evident in all kinds of managers: Initiative Inquiry Advocacy Conflict Resolution Decision Making 9 10

6 Concern for Production and Concern for Results Not every manager has the same style of leadership, nor do they exercise the six elements of leadership the same way that others do. The managerial grid helps explain the different styles of leadership by classifying managers as being high or low in concern for production and high or low in concern for people. Each of these leadership styles gives a different response to the same situation. Case Study: You re a manager of a foodservice facility in a hospital. In your facility you have twenty subordinates who all report to you. You are having problems with low productivity and insubordinate employees. Using the different theories of management, we will address how to solve this issue, giving both good and bad examples. 9,1: High concern for production, Low concern for people. Response: Who is responsible for this problem? This is completely unacceptable and whoever is misbehaving and not being productive will pay for it. To illustrate this theory, let us look at a case study involving all five types of leaders and their corresponding responses to the situation

7 1,9: Low concern for production, High concern for people. Response: It s ok, sometimes these things happen. It will get better in time. 5,5: Intermediate concern for production, Moderate concern for people. Response: Insubordination is not tolerated in this workplace. You must try to work it out yourselves, but if it happens again, disciplinary action will be taken. 1,1: Low concern for production, Low concern for people. Response: I don t care. It s not my problem, it s theirs. 9,9: High concern for production, High concern for people Response: Let s discuss this problem together so that we can correct it and prevent it from happening in the future

8 Conclusion to the Managerial Grid Case Study: In the case of the three extremes 9,1, 1,9, and 1,1, they avoid the real problem of the situation and instead focus on how to most help themselves. The 9,1 manager wants to put blame on someone else and to protect himself instead. The 1,9 manager doesn t want his insubordinates to hate him and so he tries to please them and ignores the problem. The 1,1 manager only cares about himself and nothing else, and doesn t want to put any effort into fixing the problem. The 9,9 manager is the ideal, and where every manager should aim. Chapter 3 Motivation Motivation in the workplace can be more difficult and complicated than originally thought for many new managers. There are many different theories and approaches to increasing motivation among employees in an organization. There is no one theory that works best in every situation. Each manager must assess his or her organization and determine the motivational approach they want to take

9 McGreggor s The Human Side of Enterprise There are many different ideas about the best ways to motivate employees and this section will address just a few of the motivational theories. Theory X, assumes that people dislike work and that they will only be motivated to do it if punishment is involved. Theory Y, on the other hand, focuses on the idea that there is huge potential for human growth and that it is management s failure to realize human potential that holds back group collaboration in the work place. Therefore, mangers should learn how to be good leaders and motivators while giving employees freedom to work and develop on their own. Theory X: The Traditional View of Direction and Control Theory X presents assumptions about what motivates people. These assumptions include: 1. Man is a wanting animal 2. Human needs are organized in a series of levels 3. A satisfied need is not a motivator of behavior 4. When physiological needs are reasonably satisfied, needs at the next higher level begin to dominate. This theory does not try to explain or describe human nature, instead it focuses on the consequences of certain managerial strategies. This theory fails to take a lot of variables into account and is limited in its view of human behavior

10 Theory Y: The Integration of Individual and Organizational Goals Theory Y focuses on human nature and how that affects motivations. It presents six assumptions which are: 1. The expenditure of physical and mental effort in work is as natural as play or rest 2. Man will exercise self-direction and selfcontrol in the service of objectives to which he is committed 3. Commitment to objectives is a function of the rewards associated with their achievement 4. The average person learns to accept and seek responsibility Theory Y has managers focus on the nature of relationships rather than control. This means allowing employees to sometimes make mistakes, rather than controlling every situation. This provides opportunities for people to grow and develop so that they can achieve their potential and help the company. When employees have personal needs and goals that they are allowed to connect with and work towards in their jobs, they are more likely to be truly motivated to help the organization be successful. 19 One more time: How do you motivate employees? If you have someone on a job, use him. If you can t use him on the job, get rid of him, either via automation or by selecting someone with lesser ability. If you can t use him and you can t get rid of him, you will have a motivation problem. A good kick in the pants has often times been thought to motivate employees to do better and worker harder. But kicking a dog will only make him move in that moment; it will not motivate him to continue moving. So how do you move away from traditional incentives or threats and truly motivate your employees? Despite what you think, yelling will not motivate them 20

11 Opposite of Satisfaction = lack of satisfaction Opposite of Dissatisfaction = lack of dissatisfaction There are many things that managers often think are motivators, when in reality they are not. Incentives (pay raises, benefits, etc.) do not motivate an employee to go above and beyond. They simply take away the dissatisfaction in the job. Eternal Triangle Efficient operation will obtain the optimal organization and proper work attitudes Just because a job is not dissatisfying does not make it satisfying. Items that are used to avoid dissatisfaction are considered hygiene items. The items that truly motivate and encourage employees are considered motivators. HYGIENE ITEMS MOTIVATORS Proper attitudes will lead to most efficient job and organizational structure Organized jobs will result in most efficient job structure and favorable job attitudes Company Policy Supervision Interpersonal relationships Working conditions Salary Status Security Achievement Recognition Work itself Responsibility Growth Advancement There are many different approaches one can take when evaluating and creating job organization, increased job attitude, and efficiency. There is no right answer on how to approach it, but it is important to realize that all are connected and interrelated

12 Job Enlarging vs. Job Enriching Some think in order to motivate employees they need to make responsibility more simple or easy. Instead of giving more responsibility with more accountability, they increase the number of assignments, but decrease the difficulty and creativity needed. This does not motivate employees to do better this only encourages them to People are truly motivated by improvement and growth. Not temporary raises or nicer supervisors. Examples of Job Enriching Removing some controls while retaining accountability Increasing accountability Giving a person a complete natural unit of work Granting additional authority to an employee Making periodic reports available to employee directly Introduce new/more difficult tasks not previously handled Assign individuals specific/specialized tasks enable them to become experts Steps to Job Enrichment When you have decided that there needs to be a change in the organization to increase efficiency, organization, or attitude then these steps are important to keep in mind. STEP 1: Select job to enrich When selecting a job to change, make sure that it is a job in which it is not too costly to change, where attitudes are poor, where hygiene is costly, and where motivation will make a difference in performance STEP 2: Believe that the job can change Do not get caught up in the tradition of the job. Be willing to look outside of the normal responsibilities. STEP 3: Brainstorm changes without concern for practicality STEP 4: Eliminate suggestions that involved hygiene instead of actual motivation STEP 5: Eliminate suggestions that are too broad or easily rationalized STEP 6: Eliminate suggestions that are job loading 24

13 STEP 7: Avoid employee involvement in changes If employees suggest something that you end up doing, then they will get a false sense of participation and credit Chapter 4 The Contingency Model Theory STEP 8: Set up a control experiment By changing part of the job, then you will be able to track if the changes that have been made are actually worthwhile. Compare the changed job to the original job in efficiency, organization, and attitude. Leader s Personality + Situation Performance STEP 9: Be prepared for a drop in performance the first few weeks on implementation STEP 10: Expect first-line supervisors to show anxiety and hostility Supervisors will feel that others are doing their jobs, until they realize the supervisory functions that they had been neglecting. 25 The Basics The Contingency Model says that both the leader s personality and the managerial situation determine the performance of the group. There are two main leadership styles: task-oriented and relationshiporiented. Certain managerial situations are more favorable for each. No situation will be exactly the same as another; therefore, it is difficult to predict how effective a leader will be. The theory says that every person can be the most effective leader. The stereotypical, directive, managing leader will not always be optimal for every situation. Based on the theory, optimal group dynamics can and should be attained by organizational engineering, or by changing the leadership situation that the organization provides. 26

14 The Theory Leadership Styles Task-oriented Relationship-Oriented Obtains satisfaction and Obtains satisfaction and reinforcement through: reinforcement through: Achievement Assigned tasks Intrinsic satisfaction of performing work The theory suggests that training leaders in hopes of changing personality requires time, money, and usually doesn t work. In fact, changing personality can take up to three years and may not be long-term. An organization has limited resources and usually needs to make quick, swift changes in management functions. The theory suggests these reasons for why situation is an important part of group performance. Interpersonal relations Positions of prominence Situation The individual s task assignment, the leader s position power, and leader-member relations classify the managerial situation. All of these relate to how favorable a situation is for the leader. Favorableness is defined as the degree to which the situation enables the leader to exert influence over the group. In a very unfavorable situation the leader would have more nebulous or vague tasks, would not have high position power, and would not be liked or trusted. A situation is classified as very favorable if the task assignment is structured rather than nebulous or vague, the leader has high position power, and if the leader enjoys good leader-member relations. The theory proposes that task-oriented leaders experience greater group performance in either very favorable or very unfavorable situations while the relationship-oriented leader experiences better group performance with intermediate favorableness. In order to attain better group performance, situations can be changed to match the leadership style

15 Matching Situation and Training Leadership Style Because it can be so difficult to change personality or leadership style, the theory focuses on ways to change the situation to match the leadership style. Organizations often change leaders and experience management turnover far too frequently. The following sections discuss the changes that can be Recruitment and Selection Issues: Hard to predict future leadership from past leadership experience because the situation won t be identical. Recruiters often times don t know what the leadership situation will be like and therefore, may not know how to predict leadership performance. A single leadership test may not provide enough information to make a stable decision. Solution: The components of the situation for which the leader is being recruited should be identified and used in the recruiting process. Most leadership training programs are designed to change the trainee s attitudes and behaviors to be more directive and task-oriented or more relationshiporiented, permissive, and non-directive. If these programs are effective, and if the Contingency Model is accurate, half would be trained to have an inappropriate leadership style for the situation they are in. Solution: What the leader should be trained to do is diagnose the favorableness of situation and how to adapt the situation to his/her style

16 Organizational Engineering Poor performance can be explained by the leadership situation that the organization provides along with the individual s personality structure. Organizational engineering discusses the ways in which leadership situations can be changed. These can be essential in developing alternative solutions to removing a leader every time group performance decreases. Chapter 5 Maslow s Hierarchy (Ladder) of Needs Change Individual s Task Assignment. Task assignments can be structured or more nebulous and vague. Change the Leader s Position Power. The leader can be given final say in all decisions affecting his/ her group, or it can be required that decisions are made with subordinates. Change Leader-Member Relations. The leader can be assigned to work with members of similar attitudes, opinions and background, or to members whom differ in one of these important In 1943, the psychologist Abraham Maslow created a theory behind human motivation and desires. He hypothesized that there are 5 basic needs that drive all human motivation. These drives occur in levels, similar to a ladder, the first needs being the most pre-potent and basic in nature, the later more social or psychological in nature and very potent but to a lesser degree then lower needs. As each need is fulfilled, the next need or equivalent rung up on the ladder manifests itself and the desire to fulfill it grows. Humans are constantly trying to meet one need or another and this drives much of our behavior. The levels, from bottom to top, are: Physiological Needs, Safety Needs, Belonging and Loving Needs, Esteem Needs, and Self Actualization

17 The 5 Needs The Physiological Needs: These needs include those things related to the physiological necessities of the body. These include food, water, and sleep. Such needs are the strongest of all the needs and need to be satisfied in order for an individual to desire to do anything else. These needs are not commonly left unfulfilled, especially in the United States where starvation is a much less prominent issue. Safety Needs: Safety needs include things such as security, stability, protection, freedom from fear and anxiety, and structure. These needs are nearly as powerful as the basic needs and are much more common. Belonging and Loving Needs: These needs are not well understood as they are hard to study scientifically. However, it is apparent that the human species has an innate need to identify itself with a group and give/receive love to and by others. Self-Actualization This is the highest wrung on Maslow s ladder of needs. Most people never fulfill this need, but achieving self-actualization allows an individual to better be at peace with themselves. Self-actualization refers to an individual s potential to be all they are capable of becoming. Self-actualization is different for each individual and is a life-long process. The clear emergence of this need usually rests upon some prior satisfaction of the aforementioned needs. Self-actualized individuals have been studied informally and display many personality traits that would be of value to a manager. People who are self-actualized are perceptive, have a strong sense of ethics and moral rights and wrongs, are creative, and are comfortable with change. Having all lower and prior needs relatively satisfied, they are able to focus on problems outside of themselves and focus on solutions rather than problems. Esteem Needs: These needs can appear in many different forms, such as the need for strength, competence, approval, recognition, importance, and appreciation. When these needs are met, we feel self-confident and of worth. If left unfulfilled, we feel weak and helpless

18 How Does this Relate to Management? Take the following case study: You re a manager of a foodservice facility in a hospital. In your facility you have twenty subordinates who all report to you. You are having problems with low productivity and insubordinate employees. Using the different theories of management, we will address how to solve this issue. Using s Maslow s ladder of needs model, we are able to apply a psychological theory to management. A good manager would be able to look at the situation and notice possible gaps in filling the lower four needs of the people under his jurisdiction. Though what happens outside of the workplace is mostly out of the manager s control, a manager could ask himself the following questions addressing these needs, along with many others. Physiological Are all my employees receiving breaks such as lunch breaks? Am I working them overtime, all holidays, or do I have too few employees for the amount of work that needs to be done? Safety Is there organization and guidance in the workplace? Do my employees feel that they have job security? Do they understand what is expected of them? Do they have the proper training necessary for them to know how to fulfill their duties? Are the punishments in the workplace too harsh or too lax? Do employees know who to report to or who to ask questions? Belonging and Loving Needs Do new employees feel welcomed in our organization? Is there a behavioral problem such as gossip or hazing that is taking place among the employees? Do the employees feel united and desire to work together? Does the workplace foster unity or segregation? Esteem Needs Do employees feel valued? Are employees treated like individuals? Are employees input and opinions considered important? Do they receive constructive feedback on their work? If a manager recognizes the importance of fulfilling these lower needs, then their employees will be better able to focus on fulfilling self-actualization needs. An organization full of self-actualized employees is, by nature, bound to be more efficient, creative, and driven. Self-actualized workers can focus on problems outside of themselves (as all their needs are satiated) and instead focus on improving the world around them and becoming more competent individuals. Such employees are invaluable to the successful running of any operation. Hence, it is vitally important for any manager to understand the basics behind Maslow s theory of human needs and behavior

19 Bibliography Index Belonging and loving needs Blake W, Mouton J. The Managerial Grid, Houston, TX: Gulf Publishing Company; Fiedler FE. A Theory of Leadership Effectiveness. New York, NY: McGraw-Hill Inc; Herzberg F. One more time: How do you motivate employees? Harvard Bus rev. Jan-Feb Likert R. New Patterns of Management. New York, NY: McGraw-Hill; Maslow AH. Motivation and Personality. New York, NY: Harper & Row Inc; McGregor D. The Human Side of Enterprise. New York, NY: McGraw-Hill Inc; Communication... 8 Esteem needs Eternal triangle Group loyalty... 9 Hygiene items Motivators Organizational engineering Physiological needs Principle of Supportive Relationships... 7 Recruitment and selection Relationship-oriented Safety Needs Self-actualization Situation

20 Task-oriented Theory X... 17, 18 Theory Y... 17, 19 Training

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