Chapter 2 Theories of Managing People

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 2 -1 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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

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

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

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

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

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

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

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

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

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

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

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

15. Open Systems Human Relations Internal Process Internal Process The Positive and Negative Zones

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 2 -15 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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

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

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

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

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

22. 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% 2 -21 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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

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