Theories

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Chapter 2 Theories of Managing People
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Objectives

• Describe seven theories of management and their
  ideal manager
• Explain the competing values framework and what
  constitutes a master manager
• Explain why its important to identify your
  personal theories about management and
  organizational behavior

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Objectives

• Describe your personal theory of management
• Identify the managerial skills you need in
  todays global business environment

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Scientific Management
Taylor
Efficient division of labor
Small standardized jobs
Matched to the capabilities of trained workers
who received wage incentives
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Administrative Theory
Basic Functions of Managers
Fayol
Plan
Control
Organize
Command
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Administrative Theory

• Bureaucracy as a solution to nepotism,
  favoritism and unprofessional behavior

Weber
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Human Relations School

• Acknowledged the effect of the informal social
  system with its norms and individual attitudes
  and feelings on organizational functioning
• Underlined the importance of employee morale and
  participation

Hawthorne Studies
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Assumptions about Human Nature
Theory X Inherently lazy Dislike
responsibility Prefer to be led
Theory Y Responsible Motivated to work
hard Capable of self-direction
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Decision-Making School

• Described organizations as social systems based
  on individual decisions
• Contributed the idea of bounded rationality
• Managers could control employee behavior by
  controlling the premises of decision making

March Simon
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Contingency Approach

• There is no one best way to manage in every
  situation
• Managers must find the appropriate method to
  match a given situation

It depends
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Successful Organizations
Systems
Strategy
Structure
Skills
Staff
FIT
Shared Values
Style
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Open Systems Theory

• Organizations and all subdivisions take in and
  transform resources into a service / product
  which is purchased / utilized by a larger system
• All parts are interdependent (including the
  larger environment in which the organization is
  embedded)

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Competing Values Framework

• Master managers balance the competing values of
  four different models based on the situation
• Too much emphasis on any one model will lead to
  failure

Human Relations Model
Open Systems Model
Internal Process Model
Rational Goal Model
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Competing Values Framework
Rational Goal Internal Process Human Relations Open Systems
Criteria of effectiveness Productivity, profit Stability, continuity Commitment, cohesion, morale Adaptability, external support
Means end theory Clear direction leads to productive outcomes Routinization leads to stability Involvement results in commitment Continual adaptation, lead to innovation acquiring, maintaining external resources
Emphasis Goal clarification, rational analysis, action taking Defining responsibility, measurement, documentation Participation, conflict resolution, consensus building Political adaptation, creative problem solving, innovation
Climate Rational economic Hierarchical Team oriented Innovative, flexible
Role of manager Director and producer Monitor and coordinator Mentor and facilitator Innovator and broker
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The Positive and Negative Zones
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Mental Maps

• The first step in managing the paradoxes of
  organizational effectiveness is understanding
  ones own theories of management
• Our theories or mental maps
• determine what we see when
• we look at situations and
• determine the roles we perform

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What Do Great Managers Do?

• Select for talent
• Not just for experience, intelligence and
  determination
• Define outcomes when setting expectations
• Not the steps to get to the goals

Buckingham Coffman
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What Do Great Managers Do?

• Focus on strengths when motivating
• Not on fixing weaknesses
• Find the right job that fits the individual
• Not just the next rung on the promotion ladder

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What Do Managers Do?
Luthans et al.
Traditional Management Planning, budgeting,
decision making
Communication Paperwork, passing on information
Networking Socializing, dealing with outsiders,
hand- ling organizational politics
Human Resource Development Motivating,
reinforcing, training, developing employees
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What Constitutes an Effective Manager?
Depends on the measure of effectiveness used and
the outcomes to be achieved
Traditional Management
Communication
Human Resource Development
Networking
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Effectiveness Criteria Most Rapidly and Most
Often PromotedHow Do They Spend Their Time?
Traditional Management
Communication
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Human Resource Development
Networking
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Effectiveness Criteria Highest Performers
(Results and Satisfied, Committed Employees)How
Do They Spend Their Time?
Traditional Management
Communication
45
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Human Resource Development
Networking
27
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Criteria of Effectiveness Both Promotions and
PerformanceHow Do They Spend Their Time?
Traditional Management
Communication
Balanced use of time
Human Resource Development
Networking
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Lessons for Todays Managers

• Learn to analyze complex situations using a
  variety of models or theories because no one
  theory is sufficient
• Develop a broad repertoire of behaviors and
  knowledge about when to use them
• Develop the self-control and self-discipline to
  go beyond your natural style and adapt to a
  rapidly changing environment

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