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

BRIGHT IDEAS: A WHISPER FROM

THE PAST

1

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

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

OBJECTIVES

4

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.

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

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.

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.

Key Terms

6

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 self-satisfying 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 self-edification 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 self-improvement.

7

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

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

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 self-actualization. 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.

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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.

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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 self-

improvement opportunities

while offering guidance is

vital to productivity

12

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

ANSWERS

14

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.

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.

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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.

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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

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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.

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

Percentage of employees who

said their manager should be

promoted and their reasons for

their manner of thinking Manager pulls for the

company and

employeesManager pulls for

himself

Manager pulls for the

company and

employees

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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

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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

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FOSTER GROUP LOYALTY

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.

• 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.

Calling All Managers…

21

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:

68

78

88

98

108

68-77 78-82 83-87 88-92 93-97 98

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

y-a

xis

= m

ea

n r

ea

son

ab

le p

rod

uc

tivity

fig

ure

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

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

ANSWERS

24

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

CHAPTER 3:

MASLOW’S HIERARCHY OF NEEDS

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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.

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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. “

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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.

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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.

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

Note to Managers:

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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.

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

Note to Managers:

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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

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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

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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 self-actualization in the workplace: • All other needs must be met

33

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

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EVALUATION

Name the 5 needs in Maslow’s

hierarchy of needs:

1.

2.

3.

4.

5.

List examples of each

1.

2.

3.

4.

5.

35

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

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

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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

CHAPTER 4: HERZBERG’S THEORY ON

MOTIVATION

39

Biographical Sketch

Frederick Irving Herzberg (1923-2000) 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.

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

HYGIENE VS. MOTIVATION

41

• Company policy

and administration

• Supervision

• Relationship with

supervisor

• Work conditions

• Salary

• Relationship with

peers

• Personal life

• Relationship with

subordinates

• Status

• Security

• Achievement

• Recognition

• Work itself

• Responsibility

• Advancement

• Growth

Hygiene Factors Motivation Factors

VS.

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.

• Responsibility

• Personal Achievement

Removing some controls while

retaining accountability

• Responsibility

• Recognition

Increasing the accountability of

individuals for own work

• Responsibility

• Achievement

• Recognition

Giving a person a complete natural

unit of work (module, division, area, and so

on

• Responsibility

• Achievement

• Recognition

Granting additional authority to

employees in their activity; Job

Freedom

• Internal Recognition

Making periodic reports directly available to the

workers themselves rather than to

supervisors

• Growth

• Learning

Introducing new and more difficult tasks

not previously handled

• Responsibility

• Growth

• Advancement

Assigning individuals specific or

specialized tasks, enabling them to be

experts

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.

42

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.

9. Be prepared that the experimental group may not perform as well in the beginning as they are adjusting to the new job.

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.

7.Avoid direct participation in the brainstorming by employees whose jobs are to be enriched.

6.Screen the list to remove any horizontal loading suggestions.

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”.

4.Eliminate suggestions from the list that involve hygiene rather than actual motivation.

3.Brainstorm ways to enrich jobs, whether or not they are practical.

2.Approach the jobs with determination that they can be changed.

1.Select jobs in which attitudes are poor, hygiene is very costly, and motivation will make a difference in performance.

Practical Ways to Apply Herzberg’s Theory of Motivation

43

SUMMARY

44

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.

EVALUATION

45

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?

ANSWERS

46

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.

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 20th

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

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

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

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

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

LEADERSHIP STYLE DATA

52

Task-oriented style Relationship-oriented style Task-oriented style

Low Assumed Similarity or Least-preferred Coworker scores

High Assumed Similarity or Least-preferred Coworker scores

Low Assumed Similarity or Least-preferred 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. Relationship-

oriented leadership is more effective in

situations which are intermediate in

favorableness.

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

CREATING EFFECTIVE ORGANIZATIONAL

LEADERSHIP

Leadership Training Problems:

• 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 humane-

relations 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

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

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

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

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.

3. 1. Change the individual’s task

assignment. 2. Change the leaders

position power. 3. Change the leader-

member relations in the group.

58

CHAPTER 6: THE MANAGERIAL GRID

59

LEARNING OBJECTIVES

60

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.

BLAKE AND MOUTON

61

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.

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.

INTRODUCTION

62

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.

LEADERSHIP ELEMENTS

63

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

64

9,1 PRODUCE OR PERISH STYLE

65

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.

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.

9,1-oriented manager characterized as “taskmaster”.

EFFECT OF ASSUMPTIONS ON MANAGEMENT STYLE

66

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.

CONSEQUENCES

67

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.

1,9 COUNTRY CLUB STYLE

68

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.

EFFECT OF ASSUMPTIONS ON MANAGEMENT STYLE

69

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.

CONSEQUENCES

70

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.

1,1 IMPOVERISHED STYLE

71

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.

EFFECT OF ASSUMPTIONS ON MANAGEMENT STYLE

72

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.

CONSEQUENCES

73

Impact on productivity

• “Inertia”

• Organization performance drifts toward less and

less. Necessary actions are not taken and long-

term 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.

5,5 MIDDLE-OF-THE-ROAD STYLE

74

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”.

EFFECT OF ASSUMPTIONS ON MANAGEMENT STYLE

75

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.

CONSEQUENCES

76

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.

9,9 TEAM STYLE

77

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.

EFFECT OF ASSUMPTIONS ON MANAGEMENT STYLE

78

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.

CONSEQUENCES

79

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.

CONCLUSION

80

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.

EVALUATION

81

List the five components of the managerial grid.

1.

2.

3.

4.

5.

Define the five components of the managerial grid.

1.

2.

3.

4.

5.

EVALUATION

82

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.

ANSWERS

83

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-get-

along” 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.

EVALUATION

84

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.

BIBLIOGRAPHY

1. Blake W, Mouton J. The Managerial Grid.

Houston: Gulf Publishing Company; 1985.

2. Fiedler FE. A Theory of Leadership Effectiveness. New York: McGraw-Hill Inc;

1967.

3. Herzberg F. One more time: How do you

motivate employees. Harvard Bus Rev.

1968.

4. Likert R. New Patterns of Management. New

York: McGraw-Hill; 1961.

5. Maslow AH. Motivation and Personality.

New York: Harper & Row Inc; 1954.

6. McGregor D. The Human Side of Enterprise. New York: McGraw-Hill Inc; 1960.

85

INDEX

Advocacy……………………………. 51,54,57,60,63,66

Blake, R …………………………………………………..49

Communication………………………………………..19

Conflict Resolution ……………….…51,54,57,60,63,66

Contingency Model …………………………………..75

Country Club Style……………………………………..56

Critique ……………………………..…51,54,57,60,63,66

Decision Making…………………….. 51,54,57,60,63,66

Elements of Leadership………………………………..51

Employee-Centered Focus…………………………..14

Esteem Needs ………………………………………….29

Fostering Group Loyalty……………………………...18

Fiedler, F …………………………………………………73

Hezberg, F ………………………………………………39

Hygiene Factors ……………………………………….37

Hierarchy of needs…………………………………….22

Holding Meaningful Group Meetings ……………..17

Human Resources …………………………………….5

Impoverished Style…………………………………….59

Initiative………………………………. 51,54,57,60,63,66

Inquiry……………………………….…51,54,57,60,63,66

Leadership Style ……………………………….73, 77-78

Likert, R …………………………………………………..12

86

Love and Belonging Needs…………………………..28

Managerial Grid …………………………………...47, 52

Maslow, A .………………………………………..…….24

McGregor, D …………………………………………...3

Middle-of-the-Road Style……………………………..62

Motivation factors ……………………………………...37

Motivation Theory …………………………………..….36

Produce or Perish Style………………………………..53

Psychological Needs…………………………………..26

Pulling and Trusting …………………………………….15

Organizational Leadership………………………...79-81

Safety needs……………………………………………..27

Self-actualization ……………………………..…….7, 30

Team Style……………………………………….………65

Theory X ………………………………………………….5,6

Theory Y …………………………………………........7-10

Types of Leaders ………………………………………16

Vertical loading ……………………………………….38

87