Managerial Behaviour and Effectiveness Management and Organisational Behaviour 7th Edition CHAPTER 7 Managerial Behaviour and Effectiveness

Managerial style & behaviour The successful manager has the ability to handle people effectively People respond according to the manner in which they are treated The behaviour of managers & their style of management will influence the level of performance achieved by subordinate staff

Assumptions about human nature Theory X Theory X assumes that – The average person is lazy & has an inherent dislike of work Most people must be coerced, controlled, directed & threatened with punishments if the organisation is to achieve its objectives The average person avoids responsibility, preferring to be directed Motivation occurs only at the physiological & security levels

Assumptions about human nature Theory Y Theory Y assumes that – For most people work is as natural as play or rest People will exercise self-direction & self-control Commitment to objectives is a function of rewards associated with their achievement Given the right conditions, the average worker can accept and seek responsibility

Assumptions about human nature Theory Y Theory Y assumes that - The capacity for creativity in solving organisational problems is distributed widely The intellectual potential of the average person is only partially utilised Motivation occurs at the affiliation, esteem & self-actualisation levels

As situations demands Theory X and Y represent extremes of the natural inclination of managers towards a particular style of behaviour In practice the actual management style adopted is influenced by the demands of the given situation

Japanese Theory Z Characteristics of a Theory Z organisation – Long-term employment, often for a lifetime Relatively slow process of evaluation and promotion Development of company-specific skills & moderately specialised career path Ouchi

Japanese Theory Z Characteristics of a Theory Z organisation – Implicit, informal control mechanisms supported by explicit, formal measures Participative decision-making but individual ultimate responsibility Broad concern for the welfare of subordinates & co-workers as a natural part of a working relationship & informal relationships among people Ouchi

Blake & Mouton Managerial / leadership grid The grid provides a basis for a comparison of managerial styles in terms of – A concern for production A concern for people

Managerial / leadership grid Figure 7.1 Managerial / leadership grid Source: Blake, R.R. and McCanse, A.A. (1991) Leadership Dilemmas – Grid Solutions, Gulf Publishing Co., Houston (1991), Grid Figure, p.29. Reproduced by permission of Grid International, Inc.

Managerial / leadership grid combinations 9,1 – autocratic, relying on centralised systems & authority 1,9 – hold a belief that contented staff will undertake what is required of them & achieve a reasonable level of output 5,5 – middle-of-the-road, live & let live approach with a tendency to avoid the real issues 9,9 – integrate task needs & concern for people

Managerial / leadership grid Additional styles Opportunistic management - organisational performance occurs according to a system of exchanges Paternalistic /maternalistic management - reward & approval are granted to people in return for loyalty & obedience; punishment is threatened for failure to comply

Dominant style of management The dominant style of management is influenced in any particular situation by: Organisation - the nature of the organisation in which a manager is employed Values - the personal values, beliefs or ideals of the manager Personal history - the deep rooted personal history of the manager Chance - chance has not provided the manager with an opportunity to learn

Likert’s management system Exploitive authoritative – decisions imposed on staff & motivation is based on threats Benevolent authoritative – condescending form of leadership with motivation based on system of rewards Consultative – some trust in staff, motivation based on rewards & also some involvement Participative – involves trust & confidence in staff with motivation based on rewards for achievement of agreed goals

Supportive relationships These relationships are intended to enhance self- esteem and ego building. They contribute to subordinates’ sense of personal worth, significance and dignity.

Supportive relationships A superior’s behaviour is supportive when there is: Mutual confidence & trust Opportunity to maintain a good income An understanding of work problems & help in doing the job Genuine interest in personal problems Help with training to assist promotion A sharing of information

Management by objectives (MBO) A management style or system that relates organisational goals to individual performance & development through involvement of all levels of management The basis for MBO is – The setting of objectives & targets Participation by individual managers in agreeing unit objectives & criteria of performance The continual review & appraisal of results

The cycle of MBO activities Figure 7.4 The cycle of MBO activities

MBO advantages & constraints Provides the opportunity for staff to accept greater responsibility & make higher level of personal contribution Modern form of scientific management Places too much emphasis on individual job definition & management authority structure Assumes no conflict between individual & organisational goals Not always easy to set specific targets or figures for senior jobs

Five essential principles Successful management of people is based on: honesty, trust, openness, mutual respect, co-operation & support a perception of employees as an essential asset to be invested in a clearly established set of principles applied in daily tasks fundamental leadership relating to vision, charisma & ability to gain team commitment & co-operation the establishment of essential practices such as setting high standards & achieving them

The effective management of people Figure 7.5 The effective management of people

The golden rule management philosophy Trust people fairly but according to merit Make others feel important Motivate people by praise Encourage feedback Sandwich every bit of criticism between two layers of heavy praise Have an open-door philosophy Help other people get what they want Never hide behind policy or pomposity

Managerial effectiveness A study by Proudfoot Consulting reported that – Poor planning & inadequate management are still the key reasons for the majority of time wasted globally in the workplace

Effective & successful managers Luthans makes the following distinction: Effective managers – defined in terms of the quantity & quality of standards of performance & the satisfaction & commitment of subordinates Successful managers – defined operationally in terms of the speed of their performance within the organisation

Assessing a manager’s effectiveness A manager’s effectiveness can be assessed using the following: The strength of motivation & the morale of staff The success of their training & development The creation of an organisational environment in which staff work willingly & effectively Meeting important deadlines Accuracy of work Level of complaints Adherence to quality standards Productivity Adhering to budgets set

The 3-D model of managerial effectiveness Figure 7.9 The 3-D model of managerial effectiveness Source: Reddin, W.J. Managerial Effectiveness, McGraw-Hill (1970) p.206

The 3-D model of managerial effectiveness Less effective are the – Missionary Compromiser Deserter Autocrat

The 3-D model of managerial effectiveness More effective are the – Developer Executive Bureaucrat Benevolent autocrat

General criteria of managerial effectiveness The manager’s work The manager him/herself The manager’s relationship with other people The manager as part of the organisation Criterion of general effectiveness