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Chapter 2
Theories
of
Managing
People
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 -1Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
…Objectives
Describe your personal theory of
management
Identify the managerial skills you need
in today’s global business environment
2 -2Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
Scientific Management
2 -3
Small standardized jobs
Matched to the capabilities of
trained workers who received wage incentives
Efficient division of labor
Taylor
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
Administrative Theory
2 -4
Plan
Control
Organize
Command
Basic Functions of Managers
Fayol
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
Administrative Theory
Bureaucracy as a solution to nepotism,
favoritism and unprofessional behavior
Weber
2 -5Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
Human Relations School
2 -6
 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
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
Assumptions about
Human Nature
2 -7
Theory X
Inherently lazy
Dislike responsibility
Prefer to be led
Theory Y
Responsible
Motivated to work hard
Capable of self-direction
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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
2 -8
March & Simon
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
Contingency Approach
There is no one best way to manage in
every situation
Managers must find the appropriate
method to match a given situation
2 -9
“It depends”
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
Successful Organizations
2 -10
Shared
Values
Systems
Structure
Style
Skills Staff
Strategy
FIT
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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 -11Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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
2 -12
Human Relations
Model
Open Systems
Model
Internal Process
Model
Rational Goal
Model
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
…Competing Values Framework
2 -13Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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
The Positive and Negative
Zones
Human
Relations
Internal
Process
Internal
Process
Open
Systems
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 -15Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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
2 -16
Buckingham
& Coffman
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
…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 -17Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
What Do Managers Do?
2 -18
Networking:
Socializing, dealing
with outsiders, hand-
ling organizational
politics
Traditional
Management:
Planning, budgeting,
decision making
Human Resource
Development:
Motivating, reinforcing,
training, developing
employees
Communication:
Paperwork, passing on
information
Luthans et
al.
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
What Constitutes
an Effective Manager?
Depends on the measure of effectiveness
used and the outcomes to be achieved
2 -19
Networking
Traditional
Management
Human Resource
Development
Communication
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
Effectiveness Criteria:
Most Rapidly and Most Often
Promoted
How Do They Spend Their Time?
2 -20
Networking
Traditional
Management
Human Resource
Development
Communication
28% 13%
11% 48%
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
Effectiveness Criteria:
Highest Performers (Results and
Satisfied, Committed Employees)
How Do They Spend Their Time?
2 -21
Networking
Traditional
Management
Human Resource
Development
Communication
45% 15%
27% 12%
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
Criteria of Effectiveness:
Both Promotions and
Performance
How Do They Spend Their Time?
2 -22
Networking
Traditional
Management
Human Resource
Development
Communication
Balanced use
of time
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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 -23Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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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 -1Organizational 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 -2Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
  • 4. Scientific Management 2 -3 Small standardized jobs Matched to the capabilities of trained workers who received wage incentives Efficient division of labor Taylor Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
  • 5. Administrative Theory 2 -4 Plan Control Organize Command Basic Functions of Managers Fayol 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 -5Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
  • 7. Human Relations School 2 -6  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 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 2 -7 Theory X Inherently lazy Dislike responsibility Prefer to be led Theory Y Responsible Motivated to work hard Capable of self-direction 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 2 -8 March & Simon 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 2 -9 “It depends” Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
  • 11. Successful Organizations 2 -10 Shared Values Systems Structure Style Skills Staff Strategy FIT 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 -11Organizational 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 2 -12 Human Relations Model Open Systems Model Internal Process Model Rational Goal Model 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 -13Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 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
  • 15. The Positive and Negative Zones Human Relations Internal Process 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 2 -15Organizational 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 2 -16 Buckingham & Coffman 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 -17Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
  • 19. What Do Managers Do? 2 -18 Networking: Socializing, dealing with outsiders, hand- ling organizational politics Traditional Management: Planning, budgeting, decision making Human Resource Development: Motivating, reinforcing, training, developing employees Communication: Paperwork, passing on information Luthans et al. 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 2 -19 Networking Traditional Management Human Resource Development Communication 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 Promoted How Do They Spend Their Time? 2 -20 Networking Traditional Management Human Resource Development Communication 28% 13% 11% 48% 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? 2 -21 Networking Traditional Management Human Resource Development Communication 45% 15% 27% 12% 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 Performance How Do They Spend Their Time? 2 -22 Networking Traditional Management Human Resource Development Communication Balanced use of time 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 -23Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner