Horizons Management. A Guide to Leadership

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1 Horizons Management A Guide to Leadership 0

2 Introduction Hello and welcome to our management handbook. We have been helping people just like you learn how to hone their management skills since We hope we can be a resource for you as you learn the ropes and a guide for you throughout your time as a manager. This handbook is divided into two sections. The first describes human nature and human motivation so you can know more about those you will manage. The second teaches you different management styles that, if applied, will not affect your team but also determine your effectiveness as a manager. We are pleased to be with you as you begin your managing career and wish you all the best. Sincerely, The Horizons Management Team 1

3 Table of Contents Table of Contents...2 Introduction: Elements of Leadership...3 Part I: Human Motivation Chapter 1: Management and Human Nature.5-7 Chapter 2: How Do Needs Affect People? 8-12 Chapter 3: What Motivates People? Part II: Leadership Chapter 4: How Do Leaders Influence Teamwork? Chapter 5: Highly Effective Groups Chapter 6: The Management Grid Index 34 References.37 2

4 The Elements of Leadership All organizations have the following elements in common. What do the elements mean? Decision Making: Both solo and delegated decisions to maximize resources Conflict Resolution: Constructively and creatively resolve problems Advocacy: Take a stand Inquiry: Learn as much as possible about work activities Initiative: Concentrated effort to start, stop, and shift direction of activity Critique: See alternative possibilities for improving performance Characteristics of Organizations 1. Purpose 2. People 3. Power: Hierarchy, rank 4. Organization Culture: Norms, values 3

5 Part I: Human Motivation 4

6 Chapter 1: Management and Human Nature How should managers supervise their employees? What assumptions should they have about how employees work? What is the relationship between managers and employees? To be successful, managers must be able to predict and control their employees behavior. Sometimes we try to control behavior in direct violation of human nature. When that doesn t work, we tend to blame others rather than our own inappropriate methods of control. Human behavior is predictable, but only with the correct underlying assumptions. Two theories developed by Douglas McGregor present contrasting models of workplace motivation. Theory X: the Traditional View of Control According to the traditional view: The average person dislikes work and responsibility and avoids them if possible; prefers to be directed; has little ambition People have to be directed, controlled or threatened with punishment to get them to work Individuals needs have a negative impact on the organization 5

7 The traditional view does not explain human nature! Theory Y: the Integration of Individual and Organizational Goals According to the integration view: Work comes as naturally to people as play or rest If people are committed to an objective, they will self-motivate The average person learns not only to accept but to seek responsibility The capacity for creativity and ingenuity is the rule in the population, not the exception The average person s intellectual abilities are very underused The integration view is much more accurate picture of human nature 6

8 Key Points to Remember Integration helps individuals achieve their goals by directing their efforts toward the success of the organization People will exercise self-direction to achieve organizational objectives to the degree that they are committed to them Theory Y is an invitation to innovation Basically: Theory Y supports the principle of integration: the needs of both the organization and the individual are recognized. Anything that goes badly in an organization is not because of the limits of human nature, but because managers cannot effectively use their employees potential. Check Your Understanding What are McGregor s two theories of human motivation? Which theory describes human nature more accurately? How can this theory help you empower your employees to be more innovative and committed to the organization s goals? 7

9 Chapter 2: How Do Needs Affect People? Why do people work hard? What does every human want to achieve? What makes a person feel fulfilled in life? A psychologist named Abraham Maslow set out to find the answers to these same questions. As he studied, he found there were several basic needs all humans had in common: These needs build on one another with the most basic and necessary need being biological and physiological needs and the most complex being selfesteem. They form rungs of a ladder and a person must climb this ladder by satisfying each need sequentially to reach self-actualization. 8

10 The Basic Needs Biological and Physiological Needs: The bottom rung of the ladder includes the basic necessities of life, such as: food, water, air, warmth, sleep, etc. Safety Needs: The next rung of the ladder are the needs that are a little less basic than biological and physiological and include the need to feel safe and unanxious or the need to feel the person s environment is orderly. Belonging and Love Needs: Next is the need to feel loved and part of a group. This is met through relationships with others. Esteem Needs: This rung of the ladder is right under self-actualized needs and includes the need to have the respect of the self and others. Self-esteem fits under this need. Maslow found that these needs seemed to build on each other and that if a person did not have one need satisfied, they spent most of their energy trying to satisfy that need. Once this need was met, the person could focus on satisfying the next need. If a person has all of these needs satisfied, they become, what he called, self-actualized. A self-actualized person lives up to their fullest potential and does things that require his or her own unique skill set. In other words, they are living up to their fullest potential because they have a strong foundation to build from. 9

11 Self-actualization The ultimate goal of human existence is to become self-actualized. These people: k Accept themselves and others as they are with all their faults Perceives situations and people as they really are, not how they would like them to be Are autonomous and efficient in work and other settings Have excellent interpersonal skills Are more creative because they can see problems from different perspectives Very few people actually become self-actualized. However, as people strive to become so, they are free to pursue their full potential. Why Does This Matter? As a manager, you will be placed over people whose needs may not be fully satisfied. Although you cannot control their personal lives, you can create an environment that allows their needs to be met inside the operation. Basically: A person whose needs are not satisfied is motivated by the possibility of achieving these needs. They are often so focused on achieving these needs that they fail to work as effectively or feel as at peace as someone who has all of these needs met. 10

12 Apply these principles in the following example: IMAGINE THIS: You noticed that many of your employees seem to be unproductive and are unfriendly to you and to visitors. What can you do as a manager to improve your employees attitude and increase productivity? Check to see if the needs of your employees are being met: Physiological Needs: Are your employees taking enough breaks, especially lunch breaks? Do they have access to water at your facility? Do you not have enough employees for the work that needs to be accomplished? Security Needs: Is the work environment of your employees secure? Are they over-worried about losing their jobs? Are the punishments in your facility too lax or too harsh? Belonging and Love Needs: Are there cliques in your employees? Does anyone feel excluded or picked on? Is there a problem with gossip, segregation, or hazing at your workplace? Does your facility harbor team work and goodwill? Esteem Needs: Are employees recognized for the hard work they have done? Do your employees feel their input and opinions are important? Do your employees know how essential they are to the organization s success? The needs of your employees are extremely important. If they are not met, your employees cannot focus on becoming self-actualized people. They then are motivated by their needs and are less productive, less creative, less accepting, and less autonomous as a result. 11 Basically:

13 Key Points: Every human has basic needs: physiological, security, belonging and love, and esteem. Although it is not common, it is possible to fulfill all of these needs and become self-actualized. People who are self-actualized are creative, efficient, accepting of themselves and others, perceptive, and autonomous. People who do not have their needs met are motivated by those needs and cannot focus on becoming self-actualized. As a manager, you can help. Check Your Understanding What is the ultimate goal of all humans? What are the 4 basic needs of all humans? How can you help your employees to become self-actualized? 12

14 Chapter 3: What Motivates People? Every manager must master one concept- how to motivate their employees. The Harvard Business review laid down the law for the dos and don ts of motivation. Kick In The Pants! Negative Physical Kick in the Pants Manipulation Words Gossip Negative Psychological Kick in the Pants Positive Kick in the Pants Pull instead of push Movement is a function of fear of punishment of failure to get extrinsic rewards. Motivation is a function of growth from getting intrinsic rewards out of Basically: interesting and challenging work. Movement stresses short term results. Motivation is based on growth needs and long term benefits. The ultimate reward in motivation is internal personal growth. 13

15 Job enrichment Provides the opportunity for the employee s psychological growth. Horizontal Job Loading Reduce employee contribution, add meaningless tasks to workload VS. Vertical Job Loading Provide motivating factors that lead to human satisfaction. Increase accountability. Principles of Vertical Job Loading Principle Motivators Involved Removing some controls while retaining Responsibility and personal achievement accountability Increasing the accountability of Responsibility and recognition individuals for own work Giving a person a complete natural unit Responsibility, achievement, and of work (module, division, area, and so recognition on) Granting addition authority to employees Responsibility, achievement, and 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 Assigning individuals specific or specialized tasks, enabling them to become experts recognition Internal recognition Growth and learning Responsibility, growth, and advancement 14

16 Key Points: If you have employees on a job, use them. If you can t use them on the job, get rid of them, either via automation or by selecting someone with lesser ability. If you can t use them and you can t get rid of them, you will have a motivation problem. Opposite of Job Satisfaction is NO job satisfaction NOT Job dissatisfaction which is the opposite of NO job dissatisfaction. Check Your Understanding What are the three Kick in the Pants methods for motivation? Why is Kick in the Pants not considered a form of motivation? What are some vertical job loading methods that you could implement in your company? 15

17 Chapter 4: How Do Leaders Influence Teamwork? Leadership is a necessary and desirable skill needed in the work field. Determining leadership effectiveness begins by exploring The Contingency Model. Let s first get familiar with important concepts related to this theory. Leader: An individual in a group that is given the task of directing and coordinating task relevant group activities. Group: A set of individuals interacting to achieve a common goal. Leader effectiveness: An evaluation of group performance from a group s primary tasks. How does a person become a leader? What determinants are involved in attaining a leadership position? Experience Seniority Intelligence Appointed Personality 16

18 What personality traits, attributes or behaviors determine a leader s effectiveness? Decisive Director Coordinator Evaluator Creative Considerate Authoritative Task-oriented Permissive Equalitarian Autocratic Democratic Grouporiented The Theory of Leadership Effectiveness This theory hypothesizes that different leadership styles may contribute to group effectiveness. The success of a group can be initiated by a leader s personality traits and the favorableness of group situations. 17

19 Leadership Personality Styles The Contingency Model explores two leadership personality styles. These leadership personality traits are determined on the ratings of how well leaders worked with their coworkers. These two behavior traits are categorized as High LPC (Least Preferred Coworker) and Low LPC. These two traits determine where leaders emphasize their priorities. Low LPC Task Oriented Interested in the performance of a task Works well by themselves Become more impatient: micromanages Specific to directions Direction of the group is needed Evaluates co-workers personalities and work as the same High LPC Relationship Oriented Works well with other people Considers other worker s opinions Interacts more intensely with group members Facilitates discussion Group Input needed Evaluates co-workers personalities and work separately 18

20 Favorableness of Group Situations Favorableness is defined as the degree of a situation that allows a leader to influence his team members. High favorableness in a group determines good influence by a leader. Low favorableness in a group shows resistance of leader influence. The contingency model associates the leadership personality traits (Relationship Oriented and Task Oriented) with the degrees of favorableness to increase group effectiveness. The degrees of favorableness include: leader-group relationships, task structures and position power. 19

21 Organizational Engineering It is important to know that different leadership situations require different leadership styles The Contingency Model explains that task oriented leaders promote group success at extreme ends of group favorableness situations. On the other hand, relationship oriented leaders promote group success in a moderate favorableness situations. Why is this theory important? The use of both styles determines the effectiveness of team members. The leader s behavior, actions and personality can greatly affect their employee relationships and can increase productivity in a work place. 20

22 Key Points: The Contingency Model determines how leadership styles contribute to successful teamwork. Two concepts of the theory are leadership personality traits and favorableness of group situations. A leader s priorities are based on relationship oriented and task oriented traits. A leader s style can affect productivity and relationships in an organization. Check Your Understanding What is the definition of leader effectiveness? What is the difference between relationship oriented and task oriented personality styles? What is the main idea of the Contingency Model? 21

23 Chapter 5: Highly Effective Groups Have you ever wondered how to help employees be happy and still achieve the goals of your organization? This chapter will help you to do just that. Employees in some of the most productive companies form highly effective groups. These groups are characterized by supportive relationships between employees and managers. Supportive Relationships Supportive relationships in a work environment make it possible for each employee s experience in the organization to build and maintain his sense of personal worth and importance. Managers in high-producing organizations have been found to have certain traits that can help foster supportive relationships. In general, such managers are: Unselfish Cooperative Sympathetic employees are human beings, not cogs in a machine Democratic and Just serve both the company and its employees Helpful, not Critical Honest Kind but Firm Confident in employees abilities, integrity, and motivations Enthusiastic about Goals - but they don t apply unreasonable pressure By developing the above characteristics and genuinely caring about employees wellbeing, managers will create the perfect environment for highly effective groups to form. 22

24 About Highly Effective Groups What is a highly effective group? It is one in which members have the right mix of qualities regarding relationships, values, communication, and work ethic to be highly productive. The following table highlights these key qualities. j Remember that managers are members of groups, so these qualities apply to them too! Members of Highly Effective Groups: Relationships Values Have supportive relationships support is offered and sought Have confidence and trust in each other Are helpful and loyal Are attracted to the group Have high expectations for each other without setting them so high that fear of failure exists Have high goals and high productivity Value the organization s objectives View their roles as difficult, important, and meaningful Are flexible and adaptable Communication Work Ethic Communicate fully to members Do NOT withhold information from each other or managers Welcome communication and critique from others Are involved in goal setting and decision-making Create an open, sharing atmosphere where creativity flows Are effective in leadership and membership roles leaders lead, and followers follow Accept goals and decisions of group Help implement group goals and decisions Conform to procedures Are personally motivated to achieve 23

25 Managing a Highly Effective Group How does the manager help create highly effective groups among employees? What is the manager s role in these groups? The manager can t force highly effective groups to form, but he or she can make the process easier and more likely by fostering and exhibiting supportive relationships, giving group assignments instead of individual ones, and developing employees into working teams. The manager fills the vitally important role of being a linking pin in the organization. This means that he or she ensures communication occurs between all parts of the organization. The manager is a: Representative of the group to higher and lateral levels of management Messenger from the other levels of management to the group The manager must also be a leader of group communication and decisionmaking. This requires involving everyone in regular meetings where the manager listens to employees ideas and tries to implement those ideas. Managers need to obtain feedback from employees to ensure that his or her expectations match employees expectations regarding what is reasonable. Employees must feel free to report obstacles and challenges to their leaders instead of hiding problems and giving a falsely positive report. As much as possible, decisions should be made as a group. When members can t agree, the manager makes the ultimate decision, but that decision should be consistent with what most people approve in order to preserve loyalty. Communicating well and involving everyone in the decision-making process increases quantity and quality of output. 24

26 A Word on Organization The manager can make a vast difference by ensuring that an overlapping groups system forms rather than a man-to-man system. It all comes back to supportive relationships - highly effective groups form, work together, and interact with top levels of management by way of the linking pin lower levels of management. Overlapping groups means open communication and cooperation instead of information hoarding and competition. With overlapping groups, it is impossible for one employee or group of employees to suggest an action that would be harmful to other employees because everyone is working with the goals of the organization in mind. Man-to-Man Overlapping Groups Although the manager should perform normal management functions of organizing, planning, staffing, and maintaining technical competence, it is important to minimize personal status throughout all of this. Employees should feel that the manager is listening to them, leading them, and helping them meet their needs. This is not achieved through intimidation or arrogance! When the manager takes full responsibility for performance of the group, then the employees feel secure to act and take initiative to accomplish goals. 25

27 Benefits If the title Highly Effective Groups isn t appealing enough, here are some demonstrated benefits resulting from the practices we have discussed. Less anxiety Fewer absences Better attitudes If groups aren t too large - lower rates of sickness, strikes, and accidents Less staff required because employees pitch in to help overburdened coworkers Try it, and see for yourself! KEY POINTS Productivity can increase when highly effective groups form. Members of these groups have supportive relationships with each other, have high goals, communicate well, and work to achieve the goals they set. Managers can help form and perpetuate these groups by being supportive and open, involving employees in decision-making, and acting as a linking pin. Highly effective groups are cooperative rather than competitive. Check Your Understanding What type of relationships should managers and employees have in an organization What does it mean for a manager to be a linking pin? What are some ideal qualities of the manager of a highly effective group? 26

28 Chapter 6: The Management Grid A manager needs to have a: 1. Concern for Production Your company needs results. You need to perform. Profit has to show. 2. Concern for People A concern for people (whether it comes through trust, respect, sympathy, support, understanding, etc.) is how an organization runs effectively. How can an organization have a concern for both people and production? If we were to plot the level of concern for people and production on a scale, we produce The Management Grid. Various managerial styles reflect a leader s concern for both factors. Most managers have a dominant and a back-up style, depending on the situation. 27

29 (1,1) Impoverished Style 1: Production 1: People Manager only does minimum required to remain within organization Description: Apathetic, delays, neglects responsibility, non-committal, withdrawn Cost: Low productivity, low creativity, low satisfaction, slow advancement 28

30 (9,1) Produce or Perish Style 9: Production 1: People Manager exercises power and authority to control others by dictating responsibilities and micro-managing. Description: Controlling, demanding, faultfinding, impatient, pushy Benefits: Higher productivity Costs: High turnover, low satisfaction, ignites frustration and rebellion 29

31 (5,5) Middle-of-the-Road Management 5: Production 5: People Manager conforms to the status quo. Go-along-to-get-along. Description: Accommodates, cautious, indirect, negotiates, tests the wind Benefits: Likely satisfied Costs: Low creativity, unlikely to advance above middle of organization, noncompetitive 30

32 (1,9) Country Club Management 1: Production 9: People Manager emphasizes good feelings among employees at the expense of production. Description: Agreeable, over-eager to help, over trusting, yields to gain approval Benefits: Low conflict and pressure, some may feel warm atmosphere, low turnover Costs: Low productivity, some may feel unchallenged and unsatisfied 31

33 (9,9) Team Management 9: Production 9: People Manager is goal-centered and team-oriented who emphasizes involvement, participation, commitment, and conflict resolution. Description: Confident, decisive, determined, follows through, has can do spirit, high standards, innovative, open-minded positive, reflective, speaks mind, spontaneous, unselfish Benefits: High productivity, high creativity, high satisfaction 32

34 Key Points: It is critical for a manager to have a concern for both the production and people of an organization. In an Impoverished Management style, only the minimum amount of work is done to keep an organization running. A manager who exercises power and control over his or her employees demonstrates a Produce or Perish Management style. Middle-of-the-Road Management conforms to the organization s pressures. Country Club Management focuses on good feelings at the expense of results. Team Management is an ideal style, where a manager maximizes both the employees and the production. Check Your Understanding What is the importance of having a concern for productivity? What is the importance of having a concern for people? What are 3 specific things you can do to become a (9,9) team manager? 33

35 Index A Advocacy, 3 B Belonging/ Love Needs, 8, 9 C Characteristics of Organizations, 3 Communication, 24, Conflict Resolution, 3 Critique, 3 D Decision Making, 3, E Esteem Needs, 8,9 G Groups, H Human Nature, 5,6 I Initiative, 3 Inquiry, 3 Integration, 5,6 J Job Enrichment, 14 Job Satisfaction, L Leadership Country Club, 29, 33 Effectiveness, Elements of Leadership, 3 Impoverished, Middle-of-the-Road, 29, 32 Produce or Perish, 29, 31 Team, 29, 34 Linking Pin, M Management Grid, Motivation, 10,13 Negative Physical, 13 Negative Psychological, 13 Positive, 13 P Physiological Needs, 8,9 S Safety Needs, 8,9 Self-actualization, 8,9,10 Supportive Relationships, 23 T Theory X, 5 Theory Y, 5,6 34

36 References Blake RR, Mouton JS. The Managerial Grid. 3 rd ed. Houston: Gulf Publishing Company; Fiedler FE. A Theory of Leadership Effectiveness. New York: McGraw-Hill, Inc.; Herzberg F. One more time: How do you motivate employees. Harvard Bus Rev. 1968;46(1): Likert R. New Patterns of Management. New York: McGraw-Hill Inc; Maslow AH. Motivation and Personality. New York: Harper & Row, Inc.; McGrergor D. The Human Side of Enterprise. New York: McGraw-Hill Book Company;