Chapter 2 Theories of Managing People

Objectives Describe seven theories of management and their “ideal” manager Explain the competing values framework and what constitutes a master manager Explain why it’s important to identify your personal theories about management and organizational behavior Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -1

…Objectives Describe your personal theory of management Identify the managerial skills you need in today’s global business environment Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -2

Scientific Management Taylor Efficient division of labor Small standardized jobs Matched to the capabilities of trained workers who received wage incentives Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -3

Administrative Theory Basic Functions of Managers Fayol Plan Control Organize Command Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -4

Administrative Theory Bureaucracy as a solution to nepotism, favoritism and unprofessional behavior Weber Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -5

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 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -6

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 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -7

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 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -8

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” Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -9

Successful Organizations Systems Strategy Structure Skills FIT Staff Shared Values Style Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -10

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) Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -11

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 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -12

…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 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -13

The Positive and Negative Zones Human Relations Internal Process Open Systems

Mental Maps The first step in managing the paradoxes of organizational effectiveness is understanding one’s own theories of management Our theories or mental maps determine what we see when we look at situations and determine the roles we perform Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -15

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 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -16

…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 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -17

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 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -18

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 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -19

Human Resource Development Effectiveness Criteria: Most Rapidly and Most Often Promoted How Do They Spend Their Time? Traditional Management Communication 28% 13% Human Resource Development Networking 11% 48% Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -20

Human Resource Development Effectiveness Criteria: Highest Performers (Results and Satisfied, Committed Employees) How Do They Spend Their Time? Traditional Management Communication 45% 15% Human Resource Development Networking 27% 12% Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -21

Human Resource Development Criteria of Effectiveness: Both Promotions and Performance How Do They Spend Their Time? Traditional Management Communication Balanced use of time Human Resource Development Networking Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -22

Lessons for Today’s 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 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 2 -23