Behavioural Management Theories

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Behavioural Management Theories

• BOH4M

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McGregors Theory X/Y

• The Theory X approach
• Employees are naturally lazy/avoid work, dont
  want responsibility, and fear changes and
  challenges
• The Theory Y approach
• Employees like work, seek responsibility, show
  initiative and creativity, are excited by changes
  and challenges

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McGregors Theory X/Y

• Theory X Managers Authoritarian, repressive,
  exert tight control, no employee involvement,
  pessimistic
• Theory Y Managers Liberating, empowering, gives
  employees responsibility and freedom to develop,
  optimistic

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McGregor and the Self-Fulfilling Prophecy

• Whether a manager has Theory X assumptions, or
  Theory Y assumptions about their employees,
  theyre right
• Your assumptions dictate how you manage, and the
  employees will respond accordingly
• Workers in a Theory X environment are
  unmotivated, lazy, rebellious, and work poorly
• Workers in a Theory Y environment are motivated,
  loyal/committed, productive, take pride in their
  work and respect managers

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Argyriss Theory of Adult Personality

• Based heavily on Maslow and the Hawthorne Studies
• Argues that classical management approaches are
  inappropriate for mature adults, and can be
  counter-productive

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Critiques

• Scientific management states that tasks should be
  defined as specifically as possible, but Argyris
  believes this may inhibit self-actualization
• Webers bureaucratic organization had a clear
  hierarchy in which people follow orders from
  above, but Argyris argues that this will create
  dependent workers who feel they have no control
  over their environment
• Fayols administrative principles assume
  productivity is maximized when an employees work
  is planned and supervised by a superior, but
  Argyris suggests that its much better for people
  to define their own goals

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Argyriss Theory of Adult Personality

• Also a believer in the self-fullfilling
  prophecy of management that if a manager
  believes workers are willing workers who want to
  do a good job, then they will treat them as such,
  and will see positive results
• Called for expanded job responsibilities,
  variety, and the opportunity for more
  participation in decision-making

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Modern Management Theories
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Systems Thinking

• Views an organization as a system
• A system is a group of people working together
  for a common purpose
• An organization can contain subsystems (smaller
  groups working together for a common purpose that
  serves the overall goals of the larger system)
• Important to recognize an organization as an open
  system, one that is affected by, and can affect,
  its environment

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Contingency Thinking

• There is no one single style of management that
  suits all organizations/situations
• The most effective management style will vary
  depending on the type of organization, its size,
  its environment, and the particular
  situation/problem it faces at the time
• Sometimes a bureaucratic organization is most
  effective, sometimes a more loosely structured
  one sometimes a more classical approach is best,
  sometimes a more modern one

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Total Quality Management

• Known as TQM
• A management philosophy that demands a commitment
  to quality in all aspects of an organization and
  at every step in the value chain, from suppliers,
  through to manufacturing and customer service

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The Learning Organization

• Similar to continuous improvement
• Focuses on enhancing the systems (including
  people) within an organization to continually
  increase the organization's capacity for
  performance
• Basically learn from your mistakes and never be
  satisfied with your current level of performance

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Theory Z

• Developed by Dr. William Ouchi
• Not necessarily an offshoot of McGregors Theory
  X/Y, Ouchis theory blends modern western
  management approaches with Japanese management
  techniques
• Ironically, many so-called Japanese management
  techniques such as Kaizen are based on American
  Edward Demings 14 Points For Management
• Theory Z focuses on increasing employee loyalty
  to the company by providing a job for life with a
  strong focus on the well-being of the employee,
  both on and off the job
• This means stable employment, and high employee
  morale and satisfaction by creating opportunities
  for collaboration, lateral job movements, and
  mulit-level participation in decision-making

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Others.

• There are many, many different management
  theories developed by business profs, former
  executives, consultants, and authors
• Some popular are really just recycling old ideas

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For Example

• Sun Tzus The Art of War
• Written around 500 BCE
• Highly influential book of military strategy that
  contains insights relevant to the world of
  competitive business
• Many Japanese companies make it required reading
  for their executives
• It has been the subject of at least 3 business
  strategy books