BRIGHT IDEAS: A WHISPER FROM THE PAST A H A N D B O O K O N M A N A G E M E N T T H E O R Y T U R L E Y A N D C O. M A N A G E M E N T

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1 BRIGHT IDEAS: A WHISPER FROM THE PAST A H A N D B O O K O N M A N A G E M E N T T H E O R Y T U R L E Y A N D C O. M A N A G E M E N T 1

2 INTRODUCTION The Bright Ideas handbook is an overview of six classical theorists and theories of management. The purpose of the handbook is to help managers to broaden their understanding of management practices in order to improve the productivity of their organizations. Managers can learn from the wisdom of previous generations while implementing their own creative innovations from the information presented. The Bright Ideas handbook uses clear objectives to guide readers in obtaining a greater understanding of the six represented classical theories. Evaluations are provided at the end of each chapter for the readers benefit, as well as the answers to those evaluations. 2 2

3 CHAPTER 1: DOUGLAS MCGREGOR THEORY X AND THEORY Y A Biographical Sketch Douglas McGregor was a successful businessman and an educator. He earned a MA and PhD psychology at Harvard University. He taught psychology and industrial management at MIT for many years. His book The Human Side of Enterprise was foundational to the development of human relationship focused management processes. He was a believer in maintaining authority in a management position while allowing for an environment where workers could grow and better themselves as well as their organizations. The ingenuity of the average worker is sufficient to outwit any system of controls devised by management. Douglas McGregor 3

4 OBJECTIVES By the end of this chapter managers will be able to: 1. Identify the major components of McGregor s Theory X. 2. Identify the major components of McGregor s Theory Y. 3. Apply components of both Theory X and Theory Y to real life management situations. 4

5 AN INTRODUCTION TO MCGREGOR S THEORIES Douglas McGregor s most influential theories are those expressed in The Human Side of Enterprise, namely Theory X and Theory Y. Theory X and Theory Y are contradictory to one another, but together they explain many of observations made between managers and their subordinates. Theory X proposes that management should be authoritative and can control subordinates through threat of punishment. Theory Y suggests that management should create an environment where subordinates can grow and develop while management guides the process. Understanding these classical theories will help managers to expand their understanding of how working with and through human relations is beneficial. 5

6 THEORY X Human Resource Perception of Theory X Theory X proposes that humans inherently dislike work and seek to avoid it whenever possible. Not only does Theory X suggest that humans are inherently lazy, but that they desire to avoid responsibility altogether. Humans wish instead to be directed in what they should be doing. The ambitious individual does exist in Theory X, but these people are few and far between. Key Terms A Manager s Primary Roles in Theory X Theory X insists that human resources must be controlled and constantly compelled to advance their work. The manager is responsible for the totality of productive innovation and decision making. A manager should: Coerce Direct Control Threaten with punishment Provide structure and compel compliance Human Resource: A person who is employed by an organization to do a specific job. 6

7 THEORY X Strengths of Theory X Theory X grants the necessary authority to managers so that they can do their jobs successfully. It also helps managers realize that their human resources will need direction and discipline to do their jobs successfully. The theory also provides a model for some aspects of individuals that will be employed that have not been provided a challenging work experience previously. In this situation managers may resort to the application of theory X while introducing the worker to a more challenging and selfsatisfying environment. Weaknesses of Theory X The major weakness of Theory X is that it does not see the full potential of human resources. Since managers basing their management style on Theory X assume that their workers inherently lack ambition, these managers never give their subordinates an opportunity to demonstrate ambition. Workers come to feel that work is a place where they must exchange their time and effort for monetary gain. This often results in low worker productivity and zero selfedification in the work place. Workers quickly become bored with their jobs and only seek to do the minimum that is required of them. In this situation, ridged guidelines set by an authoritative management style smooth creativity and selfimprovement. 7

8 THEORY Y Human Resource Perception of Theory Y Theory Y proposes that humans are both ambitious and productive in their jobs when they are allowed to grow and develop. Humans are naturally ambitious but often lose perspective of their ambitions when placed in an environment where those ambitions are not allowed to develop. Work and play require the same amount of effort from a human and work can become more like play when work provides meaningful rewards. Humans need to fulfill sophisticated needs the greatest and last of which is self-actualization, which is in most cases a meaningful reward. The theory also suggests that when given the opportunity humans will often rise to a challenge and exceed expectations. When a human lacks ambition and is unproductive, it is likely because his or her needs are not fulfilled. Self-actualization: A person s endeavor to become her or his best self. 8

9 THEORY Y A Manager s Primary Roles in Theory Y A manager using Theory Y will accomplish the goals of the organization by integrating managerial and workers efforts. In Theory Y managers supply workers with ample opportunity to grow and develop. This is done through delegation of responsibility, praising while directing, and providing a constant challenge. The manager should: Trust and instill commitment Delegate Provide meaningful rewards Provide a challenging but not overly stressful work environment. Evaluate and provide effective guidance. Integrate worker and managerial effort. 9

10 THEORY Y Strengths of Theory Y Theory Y inspires human resources to become the best that they can become. The theory promotes productivity through self-improvement and the aligning of individual worker s goals with the organization s goals. Theory Y provides opportunities that foster creative problem solving at every level of employment, creating an explosion of creative solutions to real life problems. Workers are often more committed and eventually view their work as satisfying. Light discipline is required and reassuring guidance replaces harsh punishment. This allows managers to redirect their efforts from threatening punishment to creating an environment where their subordinates can reach selfactualization. Therefore, Theory Y creates better working conditions for managers who will ultimately find greater satisfaction with their jobs as well. Weaknesses of Theory Y Theory Y does not provide an adequate model for managers to deal with workers that do not take initiative or abuse the authority they are given. Authority is essential to a manager s success, and Theory Y suggests that manager s expression of absolute authority can be damaging. Although in some cases, punishment and absolute managerial authority might be an appropriate response to a worker s behavior. Theory Y also fails to capture every individual s specific needs. It does not provide a method of identifying an individual s needs but it proposes that the needs of an individual are vital to generating ambition in that individual. 10

11 A COMBINATION OF THEORY Y AND THEORY X Conclusion Ultimately a combination of Theory X and Theory Y will create the best results in the productivity of human resources and management. Here are five tips for combining these contradictory theories in real world managerial applications. 1. Create an environment where employees can develop themselves while appropriately maintaining policies and procedures that outline the manager s authority. 2. Delegation is essential to the success of a manager and a manager must trust those with delegated responsibility. 3. Decisions should be made as a group but the manager should always have the final authority on decision making. 4. Punishment should be reserved for those who show no ambition to be productive, otherwise discipline with reassuring guidance. 5. Manager s and workers goals should reflect the organization s goals. 11

12 EVALUATION Match the responses on the right hand side with the theories on the left hand side. 1. Theory X 2. Theory Y A. People inherently dislike work. B. Promotes the integration of managerial and workers efforts. C. People find work enjoyable when they receive meaningful rewards. D. Managers should maintain absolute authority. E. Threats of punishment are the most effective control. F. Providing selfimprovement opportunities while offering guidance is vital to productivity 12

13 CASE STUDY A manager of a thriving foodservice is met with a decision to make when an employee shows an immense lack of productivity. The employee has worked for the company for several years and has been trained effectively in his position. The employee was very effective in the first year of his occupation and had even made some improvements in the company s procedures. The manager decides to observe the less productive employee, and sees the employee appears bored with his position. The manager also observes the less productive employee being reprimanded harshly by his supervisor. When the manager questioned the supervisor responsible for the less productive employee, the supervisor stated that there was no reason for the employee to be as slow at doing his task as he was in that moment. At the same time the supervisor reports that this employee has also been arriving to his post late during morning shifts. How could the manager in this situation use components of Theory X and Theory Y to help this employee improve his productivity? 13

14 ANSWERS Answer Key for Evaluation 1. Theory X matches with responses A, D, and E. 2. Theory Y matches with responses B, C, and F. Answer for Case Study In this situation the manager should consider giving the less productive employee room to grow. This can be accomplished by giving the employee new and more challenging responsibilities in the workplace. This would most likely be effective since the employee has shown ambition in the past. It will also be essential for the manager to assert his or her authority and warn the less productive employee of the consequences of disregarding company attendance policies. The manager will most likely wish to follow up reprimands with constructive guidance and reassurance towards the employee s ability to perform his tasks. 14

15 CHAPTER 2: EMPLOYEE-CENTERED FOCUS MANAGEMENT A Biographical Sketch Rensis Likert went to school to be an engineer, but because of a miscommunication experience, became interested in management. He was a professor at the University of Michigan for most of his life. He executed many research projects and is credited for the Likert Scale, used in surveys. He is also well known for his idea of the linking pin where one manager is part of more than one unit and links each together. He taught that management should be focused on the individuals being managed. 15

16 OBJECTIVES At the end of this chapter managers will be able to: 1. Differentiate between employee centered managing with normal managing. 2. Recall how to provide meaning for group meetings 3. Identify perceptions of employees within communication. 4. Summarize needed characteristics for a manager that is well-regarded by their employees. 16

17 EMPLOYEE-CENTERED FOCUS Focuses more on the employee than on what they do or accomplish. By implementing this focus an employee will be most productive because the employee enjoys their job. It includes a focus on correct communication skills and group dynamics. A manager with this focus will: Offer promotions Recommend pay increases Inform employees of the quality of their work Listen to complaints 17

18 PULLING AND TRUSTING The most satisfied and productive employees feel that their manager is pulling for them. This is not only for the good of the company, but also for the good of the individual. Percentage of employees who said their manager should be promoted and their reasons for their manner of thinking Manager pulls for the company and employees Manager pulls for himself Manager pulls for the company and employees Productive employees also are satisfied when they feel trusted in all aspects by their manager. Managers can build that trust by becoming a daily part of their employees work. Employees should feel trusted to Put in a full day of work Work at their own pace Work without supervision 18

19 3 TYPES OF LEADERS Underdirective Passive Leaves the employee alone Overdirective Gives direction for all the work Employees execute manager's ideas Participative Does not leave employee alone Does not dominate Encourages employee initiative 19

20 HOLDING MEANINGFUL GROUP MEETINGS Group meetings should be: Centered around company goals Within an open climate where all may participate Where the group is allowed to make high goals and is encouraged to share the responsibility of achieving them as a whole group Always DO SOMETHING with employee suggestions and ideas 20

21 FOSTER GROUP LOYALTY Calling All Managers Those with high group loyalty will be more productive and will achieve higher goals. Hold meaningful group meetings often. Encourage group unity and effort. Practice communication with employees. Managers can foster group loyalty by focusing on how they treat their subordinates. Employees like managers who Are friendly, supportive, helpful, non-threatening, kind, firm, just, considerate, generous, genuinely interested. Allow for them to have experiences that contribute to their self-worth and make them feel supportive. Assign work that is pertinent to the goals of the company and is a contribution. Show confidence and have high expectations for their performance. 21

22 y-axis= mean reasonable productivity figure COMMUNICATION Be aware of communication. Unnecessary pressure from a manager can cause a break in the line of communication. When there is trust in the manager-employee relationship, communication can flow upward and downward. Recognize that different perceptions exist and be open to diminish them. One study shows the expectations and perceived expectations of workers as the work foreman expected of them a certain level of production while the workers perception of his expectations differed: Foreman's estimate of what management thinks is a reasonable figure Men's estimate of what foreman thinks is a reasonable figure Foreman's estimate of a reasonable figure Foreman's estimate of what men think is a reasonable figure x-axis= actual production in percentage of the standard Clearly, the perception of the amount of reasonable work of each of the workers towards their superiors is inaccurate. Through communication of the expected amount production can be increased. 22

23 EVALUATION 1. Explain Employee-Center Focused Management. 2. What are characteristics of a meaningful group meeting? 3. How can a manager diminish misperceptions that employees have in relation to their superiors? 4. What are characteristics of a manager that is favored by their employees? 23

24 ANSWERS 1. Explain Employee-Center Focused Management. Management focused on the employee and their needs rather than on the tasks that they accomplish. 2. What are characteristics of a meaningful group meeting? Open climate where all may feel free to participate, center your meetings around company goals, emphasis should be given to the group as a whole that together they are to accomplish their goals, employee suggestions are considered or implemented 3. How can a manager diminish misperceptions that employees have in relation to their superiors? Avoid placing unnecessary pressure upon subordinates, use clear communication to diminish misperceptions. 4. What are characteristics of a manager that is favored by their employees? Friendly, supportive, helpful, assign tasks that give them experiences that build their self-esteem, show confidence in them 24

25 CHAPTER 3: MASLOW S HIERARCHY OF NEEDS 25

26 LEARNING OBJECTIVES By the end of this chapter managers will be able to: 1. List the five basic needs of Maslow s hierarchy of needs. 2. Define the five basic needs. 3. Apply Maslow s hierarchy of needs in the workplace with employees. 26

27 ABRAHAM MASLOW Abraham Maslow was an American psychologist in the mid 1900 s. Maslow was a professor of psychology at Cornell University, Brooklyn College, and Brandeis University. He is best known for his theory of motivation defined as Maslow s Hierarchy of Needs. A musician must make music, an artist must paint, a poet must write, if he is to be ultimately at peace with himself. What a man can be, he must be. This need we may call self-actualization the desire to become more and more what one is, to become everything that one is capable of becoming. 27

28 INTRODUCTION Maslow s Hierarchy of Needs is a well known theory of management and motivation. Maslow believed that individuals needed to be treated as a dynamic whole when dealing with traits or attributes that needed to change, as opposed to picking apart unwanted traits and treating them as symptoms. In this theory of motivation, Maslow suggests that motivation is instigated by need. Once all needs were met, an individual would be left with the need of self-fulfillment, which is to become everything that one is capable of becoming. In the workplace, managers must have the ability to see when needs are not being met for employees. A worthy goal for all managers is to help employees reach this self-fulfillment when an employee is doing what he is fitted for. 28

29 PHYSIOLOGICAL NEEDS The base of Maslow s hierarchy of needs is physiological needs. This includes adequate water, proper nutrition, constant temperature, and sufficient oxygen. An individual s physical homeostasis must be maintained. If something is disrupted, all other needs and motivations fall into the background and become unimportant. The individual s focus and motivation are aimed at meeting the physiological needs. Other and higher needs will only emerge after physiological needs have been met. Note to Managers: Meeting physiological needs in the workplace: Consistent lunch breaks No working over time Reasonable Holiday time off Pleasant temperatures to work in Easy access to vending machines Easy access to water fountains Sufficient employees to complete the task 29

30 SAFETY NEEDS Once an individual s physiological needs have been met, he or she will be focused on satisfying needs of safety. Safety needs are met by securing an organized and structured environment. A secure atmosphere is a peaceful, consistent, fair, and predictable one. Things must run smoothly and threat must be very distant if present at all. Note to Managers: Meeting safety needs in the workplace Proper training Job expectation is known Job security is felt Work flow is organized and consistent Employees know who to ask questions Employees know who to report to Employees know work schedule Employees work schedule are consistent 30

31 LOVE & BELONGING NEEDS Once an individual feels safe, he or she will naturally be motivated to meet the needs of feeling belonged and loved. This need involves both giving and receiving. To meet this need, an individual must feel that he or she has a place in the group. An individual needs to feel the support, affection, and approval of others. Also, an individual needs others to express love and affection. Note to Managers: Meeting needs of belonging and love in the workplace: Unity is present amongst employees New employees feel welcomed Group activities outside of work or during work are provided to encourage amiable feelings Gossip is discouraged Team building activities are implemented 31

32 ESTEEM NEEDS After finding a place in the group and feeling loved, an individual will move to needing esteem. All individuals need self-respect or good self-esteem, and they need the support or the esteem of others. Individuals must know their worth, strength, capability and adequacy of being useful. Individuals must also know that others recognize their worth and abilities. This esteem must be built upon the deserved respect from others. Note to Managers: Meeting employees needs of esteem in the workplace: Employee evaluations Employee appreciation Employees must feel valued Comments, thoughts, and opinions of employees must be valued/heard Constructive feedback 32

33 SELF-ACTUALIZATION NEED Once physiological, safety, belongingness and love, and esteem needs are met, an individual will finally desire self-fulfillment. In other words, self fulfillment is becoming everything that one is capable of becoming or reaching one s full potential. This need is rarely met because too often, threats are imposed on needs lower in the hierarchy. With proper conditions, individuals can become self-actualized and becomes the best of whatever they are. Note to Managers: Meeting needs of selfactualization in the workplace: All other needs must be met 33

34 CONCLUSION Maslow s hierarchy of needs outlines the motivation of an individual. The hierarchy of needs is a journey to self actualization and self fulfillment. A self actualized individual has his or her needs met and begins to recognize the needs outside of his/her personal realm. Managers can do their part to ensure all basic needs are met. Once basic needs are met, employees will naturally be united in working as a whole with the goals and visions of the organization as their new objective. Personal growth and fulfillment Achievement, status, responsibility, reputation Family, affection, relationships, work groups Order, protection, law stability Oxygen, food, water, shelter 34

35 EVALUATION Name the 5 needs in Maslow s hierarchy of needs: List examples of each

36 EVALUATION CONTINUED You are a manager, and you notice one of your employees does not speak much during team meetings and does not participate in group conversations during coffee breaks. What need is not to be met? What could you do to help these employees satisfy this need? You are a manger, and you notice your employees are standing idle and not fulfilling duties. What need is not to be met? What could you do to help these employees satisfy this need? You are a manger, and you notice your employees seem tired and fatigued and as a result are not completing their daily quota. What need is not to be met? What could you do to help these employees satisfy this need? 36

37 ANSWERS Name the 5 needs in Maslow s hierarchy of needs: 1. Physiological needs 2. Safety needs 3. Love and belonging needs 4. Esteem needs 5. Self-actualization needs List examples of each 1. Food, water, constant temperature 2. Order, organization, policies 3. Family, friends, group acceptance 4. Praise, responsibility, reputation 5. Becoming one with oneself 37

38 ANSWERS You are a manager, and you notice one of your employees does not speak much during team meetings and does not participate in group conversations during coffee breaks. What need is needing to be met? The need of love and belonging is not being met. What could you do to help these employees satisfy this need? A manager should start implemented group activities and parties to help facilitate the feeling of belongingness. The manager should take note of any conflict or gossip that may be occurring in the workplace. Once the problem is identified, the manager can work to resolve it. You are a manger, and you notice your employees are standing idle and not fulfilling duties. What need is needing to be met? The need of safety is not being met. What could you do to help these employee satisfy this need? This employee must feel secure, he/she must know job expectations and policies. The manager can implement new training techniques to inform employees of duties. Managers can post contact information for employees to ask questions. Managers should also secure that employees have an organized work space and managers should ensure an organized work flow in the workplace. You are a manger, and you notice your employees seem tired and fatigued and as a result are not completing their daily quota. What need is needing to be met? Physiological needs are not being met. What could you do to help these employees satisfy this need? Managers should reevaluate the work load. They could also consider adding or lengthening breaks. Managers must ensure that nutritious snacks are available and access to water is close as well. 38

39 CHAPTER 4: HERZBERG S THEORY ON MOTIVATION Biographical Sketch Frederick Irving Herzberg ( ) was one of the biggest names in business management after his publication, One More Time, How Do You Motivate Employees? He attended City College of New York, but left to enlist in the army. While in the army, he witnessed concentration camps firsthand. He stated that he believes that experience is initially was got him interested in motivation. He later taught at Case Western Reserve University, teaching psychology and researching motivation. 39

40 INTRODUCTION The difference between motivation and movement is an important distinction for a manager to make. Employees can be moved to do their job by incentives, consequences, or force, but that will not necessarily mean they are motivated. Employees need to have a desire to do their job well, and only then are they truly motivated. This chapter will explore how to create an environment in which employees will motivate themselves. LEARNING OBJECTIVES: 1. The manager will be able to identify hygiene vs. motivation factors. 2. The manager will understand principles of vertical loading. 3. The manager will be able to implement techniques aimed to increase motivation in employees. 40

41 HYGIENE VS. MOTIVATION Man has two different types of needs. Studies have shown that successful motivators typically lead to job satisfaction, and problems with hygiene factors lead to job dissatisfaction. So, in order to increase motivation in employees, you need to increase motivation. Hygiene Factors Company policy and administration Supervision Relationship with supervisor Work conditions Salary Relationship with peers Personal life Relationship with subordinates Status Security VS. Motivation Factors Achievement Recognition Work itself Responsibility Advancement Growth 41

42 Vertical Loading Job will need to be enriched in order to motivate employees because it allows for psychological growth. In order to enrich a job, you need to practice principles of vertical loading because it will allow for the development of motivation in employees. Below are some examples of vertical loading and the motivation factors they develop. Removing some controls while retaining accountability Responsibility Personal Achievement Increasing the accountability of individuals for own work Responsibility Recognition Giving a person a complete natural unit of work (module, division, area, and so on Granting additional authority to employees in their activity; Job Freedom Making periodic reports directly available to the workers themselves rather than to supervisors Introducing new and more difficult tasks not previously handled Responsibility Achievement Recognition Responsibility Achievement Recognition Internal Recognition Growth Learning Assigning individuals specific or specialized tasks, enabling them to be experts Responsibility Growth Advancement 42

43 Practical Ways to Apply Herzberg s Theory of Motivation 1.Select jobs in which attitudes are poor, hygiene is very costly, and motivation will make a difference in performance. 2.Approach the jobs with determination that they can be changed. 3.Brainstorm ways to enrich jobs, whether or not they are practical. 4.Eliminate suggestions from the list that involve hygiene rather than actual motivation. 5.Remove ideas that are general and rarely followed in practice. Examples of this are ideas that include the words responsibility, growth, achievement, and "challenge. 6.Screen the list to remove any horizontal loading suggestions. 7.Avoid direct participation in the brainstorming by employees whose jobs are to be enriched. 8.When beginning job enrichment in your organization, make it an experiment. Use a control group and an enriched group in order to see the differences in your employees. Use pre and post assessments to evaluate effectiveness. 9. Be prepared that the experimental group may not perform as well in the beginning as they are adjusting to the new job. 10. Expect that your first-line supervisors may experience some hostility in the beginning of the new job enrichment, as they will sense initial decreased effectiveness with the beginning of job enrichment. 43

44 SUMMARY So, in order to motivate employees, it is important to recognize the importance of hygiene vs. motivation factors, practice principles of vertical loading, and implement Herzberg s practical suggestions for increasing motivation. It is also important to recognize that job enrichment is not a one-time thing, but a continuous process and the initial changes should last for a long time. This is because: 1. The changes should bring the job up to the level of challenge proportionate to the skill that was hired. 2. Those who have can improve further will be able to demonstrate it eventually and win promotion to higher level jobs. 3. The nature of motivators, as opposed to hygiene factors, is that they have a much longer-term effect on employees attitudes. 44

45 EVALUATION 1. What is the difference between hygiene and motivation factors? 2. Vertical Loading is important because it helps develop which type of factors? 3. When enriching a job, it is important to choose which type of jobs to enrich? 45

46 ANSWERS 1. Hygiene deals with built-in drives to provide for basic biological needs, and motivation factors are the ability to experience psychological growth. 2. Motivation Factors 3. It is important to choose jobs in which attitudes are poor, hygiene is costly, and motivation could make a big difference. 46

47 CHAPTER 5 FIEDLER S CONTINGENCY MODEL THEORY A Biographical Sketch Fred E. Fiedler is one of the leading researchers in industrial and organizational psychology of the 20 th century. At the University of Washington, he was a business and management psychologist. He is on of the leading experts leadership styles and behaviors. In 1967, he introduced the contingency modeling of leadership and published a book entitled, A Theory of Leadership Effectiveness. 47

48 OBJECTIVES By the end of the chapter, managers will be able to: 1. Define basic terms used in the Contingency Model Theory. 2. Identify the differences between the two leadership styles. 3. Recall ways to change the situation to match the leadership style. 48

49 THE CONTINGENCY MODEL Basic Overview Group s performances will be dependent upon the appropriate matching of leadership style and the degree of favorableness of the group situation for the leader. Hence, group performance can be improved either by modifying the leader s style or by modifying the group-task situation.. 49

50 DEFINITIONS The Group: A set of individuals who share a common fate, who are interdependent in the sense that an event which affects one member is likely to affect all. The Leader: The individual in the group given the task of directing and coordinating task-relevant group activities, or who carries the primary responsibility for performing these tasks in a group. Leader Effectiveness: Evaluated in terms of group performance on the group s primary assigned task. Favorableness: The degree to which the situation enables the leader to exert influence over his group. 50

51 LEADERSHIP STYLES The contingency model theory focuses on two major leadership styles: Task-oriented and relationship-oriented. Task-oriented Obtains satisfaction and reinforcement through Achievements Assigned Tasks Intrinsic fulfillment of performing work Relationship-oriented Obtains satisfaction and reinforcement through Interpersonal Relationships Positions of Importance 51

52 LEADERSHIP STYLE DATA Task-oriented style Relationship-oriented style Task-oriented style Low Assumed Similarity or Leastpreferred Coworker scores High Assumed Similarity or Least-preferred Coworker scores Low Assumed Similarity or Leastpreferred Coworker scores Favorable leadership situation Situation intermediate in favorableness for leader Unfavorable leadership situation Data shows that the task-oriented leadership style is more effective in group situations which are either very favorable or unfavorable for the leader. Relationshiporiented leadership is more effective in situations which are intermediate in favorableness. 52

53 CREATING EFFECTIVE ORGANIZATIONAL LEADERSHIP Leadership Recruitment and Selection Problems: Previous leadership experience is only likely to predict future leadership performance if the situations are nearly identical. Recruiter often time know very little about the leadership situation that the person will encounter. Cannot predict how a leader will perform with only on leadership test Theory: States that the recruitment and selection of leaders can only be effective when the relevant components of the situation are specified. 53

54 Problems: CREATING EFFECTIVE ORGANIZATIONAL LEADERSHIP Leadership Training Expensive and time consuming with no evaluation to confirm its value. Most programs are designed to either change the trainee s attitude and behaviors in the direction that will make him/her more task-oriented, managing, and directive or make him/her more humanerelations oriented, permissive and non-directive. Since some situations call for task-oriented and others relationship-oriented, about half the employees will have a leadership style inappropriate for their situation. Theory: For leadership to be successful, it should focus on providing the individual with methods for determining the favorableness of the leadership situation and how to adapt the situation to his/hers leadership style. 54

55 CREATING EFFECTIVE ORGANIZATIONAL LEADERSHIP Organizational Engineering It is almost always easier to change a man s work environment than it is to change his personality or his style of relating to others. A person who performs poorly in one area might be excellent in another. The theory states three ways to modify leadership situations. 1. Change the individual s task assignment. Assignments can be very structures or vague. 2. Change the leader s position power. The leader can be given power to make the final decision or make decisions with subordinates. 3. Change the leader-member relations in the group. Have members in the group with the same attitudes and opinions or have the group member s differ. 55

56 CONCLUSION According to Fiedler s Contingency Model Theory, the stereotypical, directive, managing leader will not always be most effective for every situation. One style is not in itself better than the other. Almost everyone should be able succeed in some situations and fail in other. Anyone can be a potential leader. 56

57 EVALUATION Chapter 5 Quiz 1. What is the definition of favorableness? 2. Name and describe the two leadership styles. 3. Name the three ways to modify leadership situations. 57

58 EVALUATION Chapter 5 Quiz Answers 1. The degree to which the situation enables the leader to exert influence over his group. 2. Task-oriented gain satisfaction from achievements, assigned tasks, and intrinsic fulfillment of performing work. Relationship-oriented gain satisfaction from interpersonal relationships and positions of importance Change the individual s task assignment. 2. Change the leaders position power. 3. Change the leadermember relations in the group. 58

59 CHAPTER 6: THE MANAGERIAL GRID 59

60 LEARNING OBJECTIVES By the end of this chapter, managers will be able to: 1. List the five components of the managerial grid. 2. Define the five components of the managerial grid. 3. Apply principles of the managerial grid in the workplace. 60

61 BLAKE AND MOUTON In 1955, Blake and Mouton founded Scientific Methods Inc. to provide consultant services based on the workplace application of ideas from behavioral science. The company was formally incorporated in 1961, and later renamed Grid International Inc. Robert Blake and Jane Mouton worked together at the psychology department of the University of Texas during the 1950s and 1960s. They are known primarily for the development of the Managerial Grid as a framework for understanding managerial behavior. 61

62 INTRODUCTION In order to provide a framework for describing management behaviors, the two variables of concern for production and concern for people were plotted on a grid showing nine degrees of concern for each, from 1 indicating a low level of concern, to 9 indicating a high level of concern. Five positions on the grid represent five differing managerial behavior patterns. The Managerial Grid: Helps to examine assumptions about leadership. Evaluates elements of leadership in terms of management styles. Most managers have a dominant Grid style and a backup style, or the style a leader reverts to when under pressure, tension, or in situations of conflict that can t be solved in a characteristic way. 62

63 LEADERSHIP ELEMENTS According to the Managerial Grid Theory, there six elements of leadership that are evident in every manager. Initiative effort to start or stop something from occurring, or shift direction and character of effort Inquiry gain access to facts and data from people or other information sources Advocacy to take a position Conflict Resolution disruptive and destructive or creative and constructive depending on how it s handled Decision Making leadership applied to performance Critique stepping away from or interrupting an activity to study it, see alternative possibilities, and improve performance 63

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65 9,1 PRODUCE OR PERISH STYLE High concern for production and low concern for people. Maximize production by exercising power and authority, and achieving control over people by dictating what they should do and how they should do it. Assumptions about leadership: There is an inevitable contradiction between the organization s needs for productivity and the needs of people. People need to be directed and controlled to compel them to complete necessary tasks. Close supervision prevents mistakes and increases production. 9,1-oriented manager characterized as taskmaster. 65

66 EFFECT OF ASSUMPTIONS ON MANAGEMENT STYLE Initiative Questionable assumptions: 1. Telling others what to do is strong 2. Asking for suggestions is weak 3. People want to be led. Inquiry Just give me the facts. Thoughts, opinions, feelings, or recommendations are not acceptable contributions. Advocacy Straightforward with respect to convictions. Absolute statements all, never, or impossible. Conflict Resolution Communicates precise, step-by-step instructions. Suppress conflict by forcing views, rejecting counterarguments. Undermine other person s sense of confidence, use of threat and punishment. Decision Making High value on making own decisions and rarely influenced by others. Regarded as rigid and heavy-handed rather than confident and self-reliant. Planning retained, doing delegated. Division of labor between planning and doing is vital. Critique Checking on performance crucial. One-way, judgmental evaluation. 66

67 CONSEQUENCES Impact on productivity May go through motions of being productive, but failure to maintain quality. Withhold initiative. Impact on creativity Anti-organizational creativity, or to undermine an organization in the name of production. Impact on satisfaction Subordinates comply because easier than disagreeing. High rates of absenteeism. 67

68 1,9 COUNTRY CLUB STYLE Low concern for production, high concern for people. Primary attention is placed on good feelings among colleagues and subordinates even at the expense of achieving results. Assumptions about leadership: Production requirements often interfere or conflict with the needs and desires of people. People are not human commodities and their attitudes and feelings are of primary importance. 1,9-oriented manager has a fear of disapproval or rejection. 68

69 EFFECT OF ASSUMPTIONS ON MANAGEMENT STYLE Initiative Alert to initiatives taken by others, wanting to respond to gain. approval, but reluctant to exercise initiative in their own responsibility. Inquiry So many ways for questions to be misunderstood. Tend to ask what others want, or what may be expected. Advocacy Reluctant to speak up, particularly on controversial issues. Lacks force and when undertaken likely to be nonspecific or indirect. Conflict Resolution Difficult for 1,9-oriented person to distinguish between idea being rejected and personal rejection. Let others express themselves first, yield point of view. Smooth over differences, downplay pressures. Decision Making Group discussion encouraged. Manager perceived as a good delegator, but relieves him or her of potentially unpleasant actions. Critique Tendency to look on positive or bright side, avoid disturbing aspects. Negative feedback is attributed to someone else. 69

70 CONSEQUENCES Impact on productivity Pricing decisions favor customer rather than company, loyal customers but reduced profit margins. Impact on creativity Creativity and innovation may suffer because these are stimulated by and thrive on challenge and controversy. Impact on satisfaction Reactions of subordinates range from friendly atmosphere to feeling smothered and unchallenged. 70

71 1,1 IMPOVERISHED STYLE Low concern for production, low concern for people. The manager does only the minimum required to remain within the organization. Assumptions about leadership: Little or no contradiction between production requirements and needs of people since concern for both is low. The degree to which 1,1- oriented managers are uninvolved and withdrawn depends on the minimum that others are prepared to tolerate without a disturbance. 71

72 EFFECT OF ASSUMPTIONS ON MANAGEMENT STYLE Initiative Apathetic, unlikely to develop or initiate new ideas. Delegate or get out of situation. Inquiry Rarely well enough informed to be able to respond effectively. Attitude of the less I know about it the better. Advocacy Noncommittal and reticent. When required, convictions expressed in terms that do not hold manager to fixed point of view. Conflict Resolution Recede into background. Gives up easily, yet avoids appearance of backing off. Ignores complaints or implies displeasure has been noted. Decision Making Defer rather than decide. Good delegation helps them grow. May subscribe to teamwork when others expect it. Critique Feedback unlikely. Subordinates figure actions are endorsed by manager. 72

73 CONSEQUENCES Impact on productivity Inertia Organization performance drifts toward less and less. Necessary actions are not taken and longterm outcome is failure. Impact on creativity Creativity demands involvement and commitment, thoroughness and inquiry. Impact on satisfaction Unlikely to feel gratified or disheartened with situation. 73

74 5,5 MIDDLE-OF-THE-ROAD STYLE Medium concern for production, medium concern for people. This is the middle of the road theory or the go-along-to-get-along assumptions, which are revealed in conformity to the status quo. Assumptions about leadership: Solution to production-people dilemma is to trade off, to give up half of one in order to get the other half. People needs are realistic but that some effort is expected and must be exerted. Extreme positions promote conflict and should be avoided. Unlikely to seek best position for either production or people, but find an equilibrium. 5,5-oriented managers tend to keep up with the Joneses in management. There is an Inclination to embrace the corporate way. 74

75 EFFECT OF ASSUMPTIONS ON MANAGEMENT STYLE Initiative Status quo defines arena of action. Experimental approaches risky, exercise of initiative limited. Inquiry Informal communication, gossip and rumor. Alert to clues to stay in the know. Advocacy Strong manner when speaking in the name of the top person or on behalf of company. Not determined by convictions but by what is politically safe, salable, or workable. Conflict Resolution Adhere to established routine, protocol, and hierarchy. Agree to disagree, easier to avoid disagreements than identify underlying causes. Compromise, find middle ground not necessarily best solution. Decision Making Easy, quick based on precedent or job descriptions. Group think, popularity instead of objective evidence. Responsive leadership. Critique Positive reinforcement. Sandwich criticism between two compliments; not straightforward. 75

76 CONSEQUENCES Impact on productivity Buildup of bureaucracy. Impact on creativity Lack of spontaneity and self-expression. Unlikely to lead in a way that inspires creativity or innovation. Impact on satisfaction Conformity is key to advancement. When based on merit, others in same rank may advance more rapidly. 76

77 9,9 TEAM STYLE High concern for production, high concern for people. It is a goal-centered, team approach that seeks to gain optimum results through participation, involvement, commitment, and conflict solving of everyone. Assumptions about leadership: There is no inherent contradiction between organizational purposes of production and needs of people. There is a necessary connection between organizational needs for production and needs of people for full and rewarding work experiences The aim of 9,9 orientation is to promote participation, involvement, and commitment to teamwork. 9,9-oriented managers have a genuine desire to help others reach their highest potential of creativity, commitment, and cohesion. They deal with their boss the same way would with subordinates. 77

78 EFFECT OF ASSUMPTIONS ON MANAGEMENT STYLE Initiative Strong, pro-organizational manner. Arouses involvement and commitment of others. Inquiry Comprehensive; pre-work is a prerequisite for participation. Clear separation between fact and opinion. Listening is open and active, understanding that assumptions can distort interpretations. Advocacy Self-assured and strong-willed in convictions, but open to alternative viewpoints. Conflict Resolution Early involvement provides additional information, exchange viewpoints and perspectives. Full-disclosure. Confrontation-as-comparison-through-contrast means to solve conflict by focusing on differences, discrepancies reviewed and removed by understanding. Decision Making Based on understanding and agreement. Everyone is involved in making decisions all of the time. Critique Continuous examination and reexamination not only of decisions but also the how and why. Double-loop approach to feedback permits learning from experience. 78

79 CONSEQUENCES Impact on productivity Positive environment, clear goals, thorough knowledge, and strong convictions. Impact on creativity High level with respect to synergy from effective teamwork. Deep inquiry Advocacy for open ideas. Impact on satisfaction Many opportunities to make a difference. 79

80 CONCLUSION The 9,9 orientation offers the best of both worlds when managers are concerned for both production of an organization and the wellbeing of people. The 9,9 orientation gains optimum results through participation, involvement, commitment, and conflict solving of everyone. Every manager has a dominant Grid style, but the style of management may change depending on the situation. This is referred to as situational management and requires flexibility. The 9,9 orientation involves management by principles. Principles are applied in tactfully different ways depending on the circumstance. In an effort to maintain 9,9 orientation tendencies, it s important to remember that managers have the ability to change their management style. This is done by understanding the assumptions they have about leadership and adjusting accordingly. 80

81 EVALUATION List the five components of the managerial grid Define the five components of the managerial grid

82 EVALUATION Apply principles of the managerial grid in the workplace. 1. You are a manager, and your employees come to you with a conflict. You have Country Club tendencies, but you want to resolve the conflict using a Team management style. 2. You are a manager, and you heard through the grapevine that some employees have ideas to improve the conditions of the workplace. You have Produce or Perish tendencies, but you have noticed the need to improve conditions and want to incorporate their ideas using a Team management style. 82

83 ANSWERS List the five components of the managerial grid. 1. Produce or Perish style 2. Country Club style 3. Impoverished style 4. Middle-of-the-Road style 5. Team style Define the five components of the managerial grid. 1. Maximize production by exercising power and authority, and achieving control over people by dictating what they should do and how they should do it. 2. Primary attention is placed on good feelings among colleagues and subordinates even at the expense of achieving results. 3. The manager does only the minimum required to remain within the organization. 4. This is the middle of the road theory or the go-along-to-getalong assumptions, which are revealed in conformity to the status quo. 5. It is a goal-centered, team approach that seeks to gain optimum results through participation, involvement, commitment, and conflict solving of everyone. 83

84 EVALUATION Apply principles of the managerial grid in the workplace. 1. You are a manager, and your employees come to you with a conflict. You have Country Club tendencies, but you want to resolve the conflict using a Team management style. It s important to assume that conflict is inevitable. Differences can be examined without creating tensions or risking personal rejection. Realize that smoothing over a difference doesn t solve the conflict, but does cause others to see you as weak. If others disagree with you, restate your position and ask them to explain their reservations. 2. You are a manager, and you heard through the grapevine that some employees have ideas to improve the conditions of the workplace. You have Produce or Perish tendencies, but you have noticed the need to improve conditions and want to incorporate their ideas using a Team management style. Try promoting others advocacy by getting them to say what they think before stating your own position. After you have presented your position, ask others to react to it rather than demanding they accept any of it as final. Listen for understanding when others are advocating a position. When advocating a position, you can help others understand and support it by expressing your own reservations about It. 84