1. Chapter 2
Theories of
Managing
People

2. 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
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3. …Objectives Describe your personal theory of management
Identify the managerial skills you need in today’s global business environment
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4. 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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5. Administrative Theory
Basic Functions of Managers
Fayol
Plan
Control
Organize
Command
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6. Administrative Theory
Bureaucracy as a solution to nepotism, favoritism and unprofessional behavior
Weber
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7. 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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8. 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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9. 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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10. 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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11. Successful Organizations
Systems
Strategy
Structure
Skills
FIT
Staff
Shared
Values
Style
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12. 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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Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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13. 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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14. …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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Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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15. The Positive and Negative Zones
Human Relations
Internal Process
Open Systems

16. 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
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17. 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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18. …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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19. 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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Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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20. 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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Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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21. 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%
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Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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22. 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
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23. 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
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Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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24. 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
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