Theories

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Chapter 2 Theories of Managing People
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Objectives

• Describe seven theories of management and their
  ideal manager
• Explain the competing values framework and what
  constitutes a master manager
• Explain why its important to identify your
  personal theories about management and
  organizational behavior

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Objectives

• Describe your personal theory of management
• Identify the managerial skills you need in
  todays global business environment

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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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Administrative Theory
Basic Functions of Managers
Fayol
Plan
Control
Organize
Command
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Administrative Theory

• Bureaucracy as a solution to nepotism,
  favoritism and unprofessional behavior

Weber
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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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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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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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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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Successful Organizations
Systems
Strategy
Structure
Skills
Staff
FIT
Shared Values
Style
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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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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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Competing Values Framework
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The Positive and Negative Zones
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Mental Maps

• The first step in managing the paradoxes of
  organizational effectiveness is understanding
  ones 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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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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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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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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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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Effectiveness Criteria Most Rapidly and Most
Often PromotedHow Do They Spend Their Time?
Traditional Management
Communication
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Human Resource Development
Networking
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Effectiveness Criteria Highest Performers
(Results and Satisfied, Committed Employees)How
Do They Spend Their Time?
Traditional Management
Communication
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Human Resource Development
Networking
27
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Criteria of Effectiveness Both Promotions and
PerformanceHow Do They Spend Their Time?
Traditional Management
Communication
Balanced use of time
Human Resource Development
Networking
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Lessons for Todays 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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