bright ideas: a whisper from the past · mcgregor’s theories douglas mcgregor’s most...
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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
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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.
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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.
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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.
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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.
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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?
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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…
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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
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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.
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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?
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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.
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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