ndfs 458 management theories handbook

MANAGEMENT THEORIES:

THE HANDBOOK

by XENITH GROUP Innovation to Uncharted Waters

Shannon Adair, Rebecca Clyde, Jillayne Gee, Stacey James, Lauren Olsen, Daniel Sandberg

TABLE OF CONTENTS

Introduction………………………………………………………………………. 1 Personality & Motivation…………………………………………………… 2 Personality Syndrome Theory…………………………………… 3 Motivation Theory……………………………………………………. 4 Employee Motivation………………………………………………………… 5 Motivation-‐Hygiene Theory………………………………………. 6 Job Enrichment…………………………………………………………. 7 The Human Side of Enterprise…………………………………………… 8 Applying Theory Y…………………………………………………….. 9 Leadership Effectiveness Theory……………………………………….. 10 Leadership……………………………………………………………….. 11 Leadership Modification…………………………………………… 12 The Managerial Grid Theory……………………………………………… 13 Grid Styles Defined………………………………………………….. 14 Individual and Group Management…………………………. 15 New Patterns of Management…………………………………………. 16 Leadership-‐Positive Traits……………………………………….. 17 Communication Leads to Productivity…………………….. 18 Integration to Organizational Performance…………….. 19

Management Theories Handbook • Xenith Group

INTRODUCTION Management is comprised of a skill set that must be learned and practiced to be truly effective. Most managers must spend significant time studying the various aspects of management. Even those born with a natural predilection towards managing can benefit from researching and applying management theories. Good managers know how to motivate their employees and create a positive working environment. They focus on the people who work for them rather than solely improving processes in a scientifically calculated way. They understand their own needs and also regard employees as whole people with complex needs and lives. In return, they are well loved by employees and rewarded with increased productivity. This handbook compiles several management theories that are at the forefront of the managerial world today. Key concepts it will present include theories on personality, how to motivate employees, characteristics of good managers and leaders, and new patterns of management. Let Xenith group take you sailing into uncharted waters of managerial innovation.

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PERSONALITY AND MOTIVATION

In the 1950’s, Abraham Maslow did extensive research about personality and motivation. Understanding these components of human enables management teams to motivate employees effectively.

An organized variety of different behaviors can belong to the same syndrome. Even though the behaviors are different, they originate from the same source. What do temper tantrums and nighttime bed-‐wetting have in common? Both have the same psychological flavor. Psychological flavor refers to the idea that two separate symptoms, when viewed as part of the whole, can mean the same thing because they belong to the same syndrome. In the example above, both behaviors might be coping mechanisms for the child to deal with parental rejection. Psychological flavor means that elements of a syndrome are interchangeable. When viewed holistically rather than reductively, the main quality that characterizes the whole of the syndrome can be seen in each of the parts or manifestations of that syndrome.

Holistic-Dynamic Point of View:

People, relationships, and motivations are too complex to define in terms of atomic composition or one cause. External influences change people as a whole, not just in part.

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personality syndrome theory Each act is an expression of the integrated personality. The most important relationships between the syndrome and behavior are those most related to the person’s individual goals. It is impossible to look at specific behaviors individually, because isolating the behavior forces you to omit much of the information that could help identify the syndrome.

Characteristics of Personality Syndromes: • Interchangeability: Any behavioral symptom is as good a predictor of the syndrome as any other because they have the same psychological flavor.

• Circular determination: Every part of the syndrome affects and is affected by every other part so that A and B both cause each other and are effects of each other.

• Syndromes tend to resist change and maintain themselves, causing people to have the same personality regardless of environment.

• It is possible to change, but shifts are temporary because syndromes tend to reestablish themselves after change. People usually recover nearly wholly even after traumatic life events such as the death of a child or financial ruin. If any part of the syndrome changes, other parts change as well.

• Fears and attitudes inconsistent with the personality are easily removed, whereas fears and attitudes consistent with it are tenacious.

• Syndromes bring out extremeness in personality. Secure people tend to become extremely secure, whereas insecure people tend to become extremely insecure.

• All syndromes are responsive to environmental situation. • Syndrome level: Syndromes are classified as high, middle, or low in areas like security or self-‐esteem.

• Dominance is seen in all species with different manifestations. Secure people with high self-‐esteem tend to be kind and compassionate whereas insecure people with high self-‐esteem tend to be domineering and cruel.

• Culture affects manifestations of the same syndrome.

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MOTIVATION THEORY 16 PROPOSITIONS FOR MOTIVATION THEORY: 1. The individual is an integrated, organized

whole. 2. Using hunger as a paradigm for all other

motivation states is unwise and unsound. 3. Most desires are means to an end rather than

ends in themselves. 4. Fundamental human desires do not differ

nearly as much as conscious, everyday desires (self-‐esteem achieved by hunting well vs. having lots of money).

5. Multiple motivations: conscious desire or motivated behavior is often a channel through which other purposes express themselves.

6. Any state of being is also a motivating state. 7. Man rarely achieves complete satisfaction, and when

he does it’s only for a short time because a new desire crops up to take the satisfied one’s place.

8. Listing drives or needs is theoretically unsound. 9. Only fundamental goals and needs can be used to

classify motivational life. 10. Animal data cannot accurately predict human

motivation and behavior. 11. The environment plays a role in motivation. 12. Usually the organization behaves as an integrated

whole, but sometimes it doesn’t. 13. Not all behaviors or reactions are motivated by seeking gratification. 14. We yearn for what can conceivably be attained. 15. Reality can influence unconscious impulses. 16. We lack knowledge of healthy motivation because most of the studies we do are on

patients being treated for disorders.

The Hierarchy of Needs The pyramid below represents Maslow’s hierarchy of needs. Each need builds on the other, with needs toward the top of the pyramid more likely to be fulfilled if the lower level needs have been satisfied. However, basal needs do not need to be 100% fulfilled to achieve higher needs. Other desires include the desire to know and understand and the desire for aesthetic beauty.

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THE MANAGERIAL GRID THEORY

Developed by Robert Blake and Jane Mouton, The Managerial Grid theory models 5 different styles of leadership. By using the Grid, managers can identify their leadership style and the strengths and weaknesses of it. Your Grid style is based on several factors. The organization, values, personal history, and dominant preferences play a role in determining where your leadership style falls. The Grid is a helpful visual and can be beneficial as managers strive to develop more effective leadership styles.

Benefits • Can be applied to any situation • Identifies major approaches to leadership

• Allows for easy comparison of management styles

• Management styles can be better evaluated

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GRID STYLES DEFINED

CHARACTERISTICS OF THE GRID MANAGER STYLES: • 1, 1 Impoverished Management: This manager is uninvolved and withdrawn. Their motto is, “The less I know, the better.” 1, 1’s avoid the center of attention. They are noncommittal, indifferent, and act as bystanders in the workplace. These managers have low productivity, creativity, and satisfaction in their careers.

• 1, 9 Country Club Management: These managers have almost no concern for production. They are focused on people and promoting friendship. 1, 9 managers are eager to be accepted. They do this by avoiding conflict, yielding to other viewpoints, and making promises. This style is characterized by avoiding decisions and being forgetful.

• 5, 5 Organization Management -‐ The Middle Man: This manager is balanced between concern for people and concern for production. 5, 5’s want to help the company progress in order to gain a sense of belonging. These managers are known for being cautious and accommodating. They are responsive leader, acting only in response to situations. They are rule makers and conformists. While 5, 5’s lack creativity and efficient production, they are generally satisfied in their careers.

• 9, 1 Authority Obedience: This manager is completely focused on production. They feel that production objectives are achieved by tightly controlling their employees. These managers are known as the taskmasters and interrogators. In the workplace, conflict is unacceptable and the manager is quick to blame and find fault with employees. Punishments and threats are frequent. This style leads to resentful employees and absenteeism. Managers are demanding and impatient.

• Theory 9,9 described on the following page.

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9, 9 TEAM MANAGEMENT STYLE This style should be a model for which all managers aspire to. These managers recognize the connection between productivity and giving people rewarding work experience. Managers are confident and determined. They set goals, share ideas, and promote teamwork. 9, 9’s aren’t afraid to be open and honest. They enjoy work and follow through on projects. These managers have long-‐term job satisfaction, are highly productive, and have high creativity among employees.

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YOUR MANAGEMENT STYLE After learning the characteristics of each management style, determine where you best fit on the grid. Most managers fit in between two styles or have characteristics of more than one style. The purpose of the grid is for managers to recognize where they fall on the grid and work on improving to become a more successful, efficient manager.


individual & group management

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THE HUMAN SIDE OF ENTERPRISE

How can a manager’s view of human nature impact the productivity of subordinates? Douglas McGregor, author of The Human Side of Enterprise, identifies two common views about human nature in management, theories X and Y.

Theory X: • Primary principles: Direction and control through the use of authority

• View humans as lazy, irresponsible, and unconcerned

• Use strict rewards and punishments to control human behavior

• Use the “Carrot and Stick Approach”—management can give or withhold physiological or safety needs

Theory Y: • Primary principle: Integration or creating an environment that allows both the subordinates and the organization to achieve their objectives.

• Humans are capable, responsible, and dynamic • Managers create a work environment that facilitates employee achievement • Subordinates egotistic and social needs are fulfilled

X & Y manager characteristics Manager X Manager Y

Does not team build Honest Devious Fair Haughty Genuine Condescending Competent Poor listener Supportive Does not take blame Encourages innovation

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Applying Theory Y Theory-‐Y managers create conditions that allow employees to reach their goals while simultaneously helping the organization reach their goals. How can managers create this type of environment?

STEPS FOR Utilization: 1. Show genuine concern for subordinates. 2. Be honest with subordinates. Don’t use

manipulation to persuade subordinates. 3. Be competent. Familiarize yourself with the

details of every job under you. 4. Don’t show favoritism or discrimination 5. Show confidence in subordinates. Discuss

together solutions to relative organizational problems. If able, implement solutions.

6. Use delegation.

Real World Application General Mills is experimenting with Theory Y approaches to management. One approach involves subordinates setting self-‐objectives and annually self-‐evaluating whether or not they met those objectives. Management acts as a supporter rather than a judge or inspector. As a result, subordinates egoistic and social needs are fulfilled.

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LEADERSHIP EFFECTIVENESS

THEORY This theory is based off on needs the leader seeks to satisfy in the leadership situation. A leader can be threatened by unfavorable leadership situations, which cause a less favorable leadership situation. The favorableness of a leader and the executive’s leadership style directly influence the performance of interacting groups and organizations. Therefore, there are people who are better leaders in certain situations. However, the environment in which a leader is in can change or be altered to allow him to perform better.

Prediction of Effective Leadership

The leader’s personality determines to a large extent how well he can influence the behavior of his group. Task oriented leadership: If the group favors their leader, the leader’s need to gain satisfaction from performing the task better if the group favors the leader. Attaining a position of prominence: This leads to achieving good interpersonal relations. A leader who is neither well favored nor unfavorable has a better opportunity to attain a position of prominence in leadership.

Leadership and Trust:

A leader who is well liked will be more likely to be trusted and they have greatest deal of influence. He has: • Expert power • Attraction power • Coercive power

Because of their influence, their group members will be glad to follow them. There are various degrees to which a leader has power over their group. One who is in a favorable position has more power over his group and is better respected.

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EMPLOYEE MOTIVATION

Motivation is a complex psychology. In the case of managers, the driving question in regard to motivation is: how do you instill sustainable motivation in your employees? Real motivation is developed by fulfillment of intrinsic rewards.

Motivating with KITA The most common way of getting someone else to do something is to ask. But, what happens if he doesn’t want to? Or agrees but drags his feet or fails to follow through? Motivating others to accomplish something you want them to do, but they don’t want to do might be achieved successfully by administering a “kick in the pants,” or KITA. Understand, however, that KITA is not motivation because it is not sustainable. Rather, it is used solely to complete a task.

Positive vs. Negative KITA: Positive KITA is seduction. People respond to incentives. If you agree to reward the individual if he completes some task for you, this creates some motivation. For example, a dog is trained to roll over when presented the owner holds up a dog biscuit. Who is motivated here? The dog wants the biscuit, but the owner wants the dog to roll over. Let’s break down motivation and movement: In this case, the owner is motivated and the dog is the one who moves. Rather than pushing the dog to move, the dog is being pulled to move. Negative KITA only leads to movement, not motivation.

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Motivation-Hygiene Theory Motivation vs. Hygiene Studies examining employee motivation have concluded that the factors creating job satisfaction are completely distinct and separate from those factors leading to job dissatisfaction. From these, the motivation-‐hygiene theory has been developed. Hygiene refers to those factors that cause job dissatisfaction, such as: company policy and administration, supervision, relationship with supervisor, work conditions, salary, relationships with peers, and relationships with subordinates. Motivation refers to those factors contributing to extreme job satisfaction, namely: achievement, recognition, work itself, responsibility, advancement, and growth.

9 Myths about Motivation Unfolded:

These practices fail to instill sustainable motivation. Why? If a dog is kicked, he moves. But in order to get him to move again, he must be kicked again. The same principle can be applied in the workplace to employees. 1. Reducing time spent at work does not increase

workplace effectiveness. 2. Progressively spiraling wages, either up or down does

not motivate. 3. Increased fringe benefits lead to a feeling of

entitlement. 4. Extensive human relations policy training fails to nail

employee motivation. 5. Sensitivity training is not well-‐appreciated by

employees, thus its gains are temporary. 6. No communications or propaganda describing the great

benefits provided by a company to employees increases their motivation.

7. Two-‐way communications including morale surveys and suggestion plans negligibly affects motivation.

8. Job participation giving employees a “feeling” of contributing to the big picture only provides a fleeting sense of achievement, rather than actual substantive achievement.

9. Employee counseling does not lessen the demands of determining how to motivate workers.

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JOB ENRICHMENT

Job Enrichment Development of job enrichment projects is a continuous management function. The real motivators are those that increase job satisfaction as outlined previously: achievement, recognition, responsibility, growth, and advancement. Job enrichment provides opportunities for growth in the employee’s current job. This applies vertical loading rather than horizontal loading, promoting a real sense of achievement. The effects of implementing these projects should last a long time because (a) the changes instituted should bring the level of work up to the standard the employee was hired at, (b) those with more ability will go on to gain further recognition and promotions, and (c) the very nature of motivation, as opposed to hygiene factors, intrinsically has a more long-‐term effect on employee motivation.

Why External Rewards are Unsustainable

If an employee is given a $1,000 bonus one year, and a $500 dollar bonus the next year, psychologically he has had a $500 pay cut, although he has received more money than his salary both years. For this reason, external rewards do not satisfy the needs of motivation. It is impossible to keep up with the demands that are developed in the minds of employees when they feel they are entitled to external rewards.

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LEADERSHIP Defining Leadership Leadership is an interpersonal relationship when one person holds more power and influence within a group. This uneven distribution of power allows whomever in that position to direct and control the actions and behaviors of others to a greater extent than they direct and control his.

EVALUATING LEADER

EFFECTIVENESS:

1. The group’s output 2. Group morale 3. Satisfaction of the

members of their group

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LEADERSHIP MODIFICATION Contingency Model The group’s performance will be contingent upon the appropriate matching of leadership style and the degree of favorableness of the group situation for the leader. Group performance can be improved by either modification of the leader’s style or of the group task situation. Leadership effectiveness depends equally on the group and the leader. Choosing a Leader Successful leaders tend to be involved, structuring, and directive in relatively favorable situations, but are described as uninvolved in unfavorable situations. Choosing a leader after considering the situation in which they will be leading is beneficial for creation of a successful group dynamic. Based on personality types, certain individuals will be very successful in certain situations, and fail in others. The best way to choose a leader is to match a personality type and skill to the situation.

Modifying Leadership Situations:

1. Change the individual’s task

assignment 2. Change the leader’s position power:

Give them a promotion, recognition, or subordinates

3. Change the leader-‐member relationship in the group: Have a leader work with groups whose members are either very similar or different to them in attitude, opinion, technical background, race or cultural background.

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NEW PATTERNS OF MANAGEMENT

Social research by R. Likert reveals management that is highly productive often follows similar patterns in group work, communication, leadership, and organizational performance.

Productive Management

Leadership

Communication

Group Organizational Performance

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Leadership-Positive Traits

Employee-centered: • Management that focuses on individual and group feelings and thoughts about performing the task rather than the task itself has higher productivity results.

• Management that is employee-‐centered as opposed to job-‐centered has 50% higher production value.

Clear Objectives & Standards: • As management determines clear objectives, the employee knows what is expected and moves forward with confidence.

• Understanding that small mistakes are not punitive by set standards, employees increase productivity and learn from mistakes.

Interactive: • Managers that are seen as part of the group bring stimulation to group work and foster creative group work and new insights.

• As management interacts with groups they allow understanding between supervision and subordinate.

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Communication Leads to Productivity

Circle of Communication

The circle of communication establishes cohesive and effective group work. In this model there is information sharing between management and subordinates. Loyalty among employees connected with leadership of management brings about desired changes and increases productivity.

Supervisor shows genuine interest in employee or employee

generated idea

Creativity, trust, and loyalty is established

between supervisor and group

Peer Group Loyalty

established among group

More favorable attitude towards supervision and company by group

Increased Productivity and Desired Change from group

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Integration to Organizational Performance

Organizalonal Performance & Increased Produclvity

Group Work

Communication

Leadership

Performance and Productivity

When all tools in management come together there is synergy of production. Therefore productivity increases via information sharing/communication, supervisor-‐subordinate understanding and group loyalty, and increased organizational performance. These new patterns of management bring about positive change and productivity.

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ndfs 458 management theories handbook

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