Week 10: Management Types and Styles Flashcards
What is Theory X, Y (and Z) [McGregor] (and Maslow)?
Do you believe most people (X):
- are driven by monetary concerns
- will avoid work where possible
- lack ambition and dislike responsibility
- are indifferent to organisational needs
- lack creativity and resist change
Or do you believe that they (Y):
- are driven by job satisfaction
- actively seek work
- show ambition and seek responsibility
- are committed to organisational objectives
- are creative and welcome change
Maslow also recognised the need for self-fulfilment or transcendence
What is Maslow’s Hierarchy of Needs (1943, 1954)?
A pyramid where (bottom to top):
- psychological needs
- safety and security
- social needs
- esteem
- self actualisation
What is Locke and Lathams Goal Setting?
States that goal setting has beneficial effects on performance, more challenging the better, goals which are specific or quantitative are more effective, feedback should be given regularly, large monetary rewards further improve performance
What is supportive goal setting?
Where an employee can choose to accept a goal or renegotiate, they need to commit to it to achieve it
What is Management by Objectives / Results (MBO/MBR)?
It was popularised by Druckers Practice of Management. It is where objectives are set in appraisal meetings that occur say annually, and employee and manager discuss objectives, review performance and set new objectives. Bonuses and promotions depend on achieving / exceeding objectives, should be measurable.
What are performance appraisal meetings?
These should be constructive opportunities to reflect. Require a suitable time, place and duration.
Should summarise previous meetings objectives and if they have been met.
Objectives must be consistent with the role/job description
What should managers do should objectives not be met?
Let the employee explain the situation from their perspective, adjust targets, offer support (training and coaching)
What can happen to employees if appraisals are not run well?
They can gain negative perceptions if it is just tick box filling, subjective, overt criticisms.
Managers may be unwilling to give direct but constructive criticism
Frequent discussions may be better than annual appraisal meetings and future goals may be better separated from past performance reviews
What is 360 degree feedback?
To address subjective and inaccurate ratings, multiple raters can be used. You solicit feedback from all areas that the employee interacts with. Using such feedback in evaluation could be dubious, could be wide variety of different ratings, anonymous reviewers may harbour grudges
What is Scott Adams’ Company Model? (Dilbert Principle)
Companies with effective employers and good products usually do well. Any activity that is one level removed from people and products will eventually fail or have little benefit. The rule for one-off activities should be consistency (resist urge to tinker)
What does an out-at-5 manager do?
Stays out of the way Eliminates the assholes Ensures employees learn something new each day Creates a learning environment Teaches employees how to be efficient
What was Adams’ Equity Theory (1963)?
If rewards are not fair then staff lose motivation - staff compare their input/reward rations
What do Green & Haywood (2008) report?
Performance related pay schemes increase productivity, effort and earnings, but also increase pay variability, lowering the morale of less productive workers
Where is job satisfaction highest?
Where no performance pay/bonuses exists, job security actually declines where these schemes are in place although negatives disappear when accounting for worker fixed effects
What do high performance workplaces create?
Belong, esteem and commitment.
Paying workers piece rates are known to increase efforts more than time rates. Performance related pay does not have the same effect
What does job satisfaction tend to do with education level and company size?
It decreases, although public sector workers tend to be more satisfied
How related are pay and satisfaction?
Judge et al say that pay is only loosely correlated, and that better paid workers are less satisfied
What do Diener and Tay (2015) say about well being?
Seems to be increasing globally, as average income also rises, social support, freedom, water quality and income equality also matter
What are team based rewards?
These are rewards where the performance depends on a team rather than one person as individual rewards do not incentivise good team behaviour.
What does DeMatteo say about team based rewards?
An increase of between 28% and 76% cf previous measures, state it is unclear what conditions team rewards are effective
What is a concern with team based rewards?
Free riding
What does the Game theory simulation (Ladley 2015) suggest?
Group based systems outperform individual or mixed systems, they produce the most cooperative behaviour and best performing groups and individuals
What factors does DeMatteo say are worth studying further?
Reward characteristics
Team characteristics
Organisational characteristics
Individual differences
What are some approaches to team-based rewards?
Incentive pay
Recognition
Profit sharing
Gain sharing
What is incentive pay?
Where incentives are offered for certain things, can be combined with incentive pay per individual, may put employees averse to identifying as team members
What does recognition approach to team based rewards involve?
One off additional payment for exceptional performance, after the fact though so does not motivate in the beginning
What is the profit sharing appraoch to team based rewards?
Gives employees an incentive to monitor their employers results, profits may not be affected very much by the teams performance
What is the profit sharing appraoch to team based rewards?
Gives employees an incentive to monitor their employers results, profits may not be affected very much by the teams performance
What is the gain sharing approach to team based rewards?
It rewards employees for improvements in local production measures which hopefully the team is able to influence in positive ways
What is an employee share scheme?
It is where employees may have the right to buy shares at a discount or executives are granted shares based on company performance
How does an employee share scheme motivate workers?
It gives them a long term stake in the company and motivates them to act in the company’s best interests -psychologically, ownership is known to encourage them to stay with the firm, but if employees hold too many shares then other holders will lose out.
What may encourage an employee share scheme?
Tax breaks
What is a profit sharing scheme?
It rewards employees for a years results, safer as the bonus can be varied with profits, typical with City of London and John Lewis Partnership, can be demotivating if bonus is lower than before
What are some other types of incentive?
Overtime payments Company car Sabbatical leave Free coffee and drinks, subsidised canteen meals Christmas parties Continuing Professional Development T-shirts and other items with the company logo Long service awards
What is the theory of the New York taxi paradox when it rains?
When it rains, more people want taxis, yet less are available. It is theorised that they have a target for income and hours so once met they stop working.
What is the New York taxi paradox an example of?
Kahneman and Tversky’s (1979) prospect theory - losses hurt more than gains so they are avoided
What does Engineering UK report about inequality?
Continuing inequality among employment and pay for UK engineers
What is Drucker’s List of Management Functions?
Set the teams objectives
Provide and organise resources to achieve the objectives
Motivate staff to achieve the objectives
Monitor staff performance against the objectives
Improve performance by continually developing yourself and your staff
What is management by walking about?
It is going and seeing, known as the 3Gs in Japanese, it is better than getting a weekly status report, builds trust and understanding
What does management by walking around let you do?
Listen to staff, their ideas and problems, get to know them and motivations, answer questions directly. Share good practices, identify and deal with bad practices, observe inter-staff working relations
What are the 3Gs and their translation?
Gemba - Real Place
Gembutsu - Real Work
Genjitsu - Real Facts
What is John Boyds OODA Loop?
Observe
Orient
Decide
Act
What was the OODA loop developed for?
For military response - when a fast response is needed with one decision maker
Even in crisis, observe before acting
Why is OODA not used for strategic decisions?
These require longer deliberation
Involving more people
And more steps
What is Blake and Moutons Management/Leadership Style?
A matrix:
Low concern for tasks, high concern for staff - country club management
High concern for tasks, high concern for staff - team management
Low concern for tasks, low concern for staff - impoverished management
High concern for tasks, low concern for staff - task compliance management
What is French and Ravens Sources of Power?
Legitimate Charismatic Expert Coercive Reward
What must any manager be?
An administrator and a leader
What is a masterful inactivity approach to leadership?
Where change is cyclical and the current crisis is only temporary, but does not really work in modern business
What are the standard recognised approaches to leadership?
Transactional, transformational, charismatic, situational
What is transactional leadership?
Where effort and good performance is rewarded, including compliance with policies. It uses coercion to correct poor performance or compliance. A leader must deliver promises and threats. Uses both carrot and stick
What do Downton and Burns say about transformational leadership?
Proactively change culture to implement new business practices
It uses the four I’s
Has been found to enhance staff satisfaction with their leaders, but transactional leadership may boost staff performance more
What is charismatic leadership?
Skilled communicators who reach followers at an emotional level
Greater emphasis on vision cf transformational leaders
May also encourage risk taking behaviour among followers
Often associated with politics and religion
Risks include tunnel vision and excessive dependence among staff
What is situational leadership (Hersey and Blanchard)?
We map commitment against competence
High commitment, low competence - supporting
High commitment, high competence - delegating
Low commitment, high competence - coaching
Low commitment, low competence - directing
What is situational decision making?
It is where you assess the situation by asking questions about quality, commitment, leaders information, the problem, the goals, conflict, subordinate information
What are some possible leadership and decision making styles?
Autocratic I - leader solves problem using info available to them
Autocratic II - Leader obtains info from group members then makes decision alone
Consultative I - Leader shares problem with group members individually, asks for information and evaluates, group does not meet, leader makes decision alone
Consultative II - Leader shares problem with group members collectively but makes decision alone
Group II - Leader meets with group, discusses, focuses and directs discussion, group makes final decision
What do current charts show abut growth in the future?
Population and income growth is expected mainly in Africa and Asia
What does the future growth of Africa and Asia tell companies?
They should focus on these continents
Who were the top 3 car manufacturers?
Ford, General Motors, Toyota
What did Ford do with production?
Scientific management, reduced cost and made cars affordable - black paint dried the quickest, resulting in cheaper cars
What did Taylor argue about scientific management?
Argued that managers should match workers to jobs responsibly.
Determine each workers abilities and provide the right training
Determine the expected standard output for each worker on task
Provide workers with proper working methods, tools and routing sequences
Select and train supervisors, introduce incentive payments
What did Taylor publish in 1911?
Principles of Scientific Management
What improvements were recommended to Ford by Taylor?
Large components remain stationary, small components moved to these
Workers remain stationary, cars are pulled from one station to the next
Avoid delays by improve tooling
In 1913, introduce a power-driven assembly line
What was the result of the improvements introduced by Taylor and Ford?
Cars took 93 minutes of work and cost $575, Ford captured 48% of the US car market
What were the Hawthorne Experiments?
These were famous 1920s experiments involving manual workers at GE’s Hawthorne works, found no correlation between productivity and working conditions - but found belonging to a group creates status and boosts morale
What were the insights gained from the Hawthorne Experiments later behind?
Sociotechnical systems
Agile methods
Quality circles
What does statistical quality control rely on?
Repeatable processes and detailed measurements
What must you determine with statistical quality control?
An acceptable failure rate, and acceptable failure modes - measure and test to ensure failure rate is lower and failure modes do not occur
What is an example approach to quality?
Six Sigma Approach
What is the Six Sigma approach?
With a normal distribution, the probability of something 6 standard deviations away from the mean is 1 in a million - in practice the target varies depending on the product and market (safety critical should be better)
How many dissatisfied customers would service industries be happy with?
Less than 10^-3
What does reliable manufacturing depend on?
Precise measurement and statistics
What is the bathtub curve?
It is a curve showing how failure is time dependent. The observed failure rate may start high, drop and be constant for a period of time then as more time passes it increases again
What are the 3 types of failures that are observed and contribute to the observed failure rate?
Early “Infant Mortality” Failure
Constant (Random) Failures
Wear Out Failures
What are some definitions of quality?
Non-faulty systems (Deming)
Fitness for use (Juran)
Conformance to requirements (Crosby)
Customer determination based on experience with product or service (Feigenbaum)
What does Kaizen say about continuous improvement?
It is a philosophy of continuously improving working practices
What is Shewarts PDCA/PDSA?
Plan, Do, Check / Study , Act/ Adjust
What did Deming teach in Japan?
Better design of products to improve service
Higher level of uniform product quality
Improvement of product testing in the workplace and in research centres
Greater sales through global markets
What does Deming emphasise?
Profound knowledge - appreciating a system, understanding variation, psychology and epistemology
What are some approaches to quality?
Quality Control
Quality Assurance
Total Quality Management
Profound Knowledge
What is the quality control approach to quality?
Maintain standards by testing all or a sample of items
What is the quality assurance approach to quality?
Maintain standards by providing confidence that errors will be prevented by proper processes
What is the Total Quality Management approach to quality?
Everyone is responsible for maintaining standards
What is the Profound Knowledge approach to quality?
Focus on reducing waste Quality is free Trust workers to improve quality Trust workers to estimate their work Any system has a natural rate
What is the Profound Knowledge approach to quality?
Focus on reducing waste Quality is free Trust workers to improve quality Trust workers to estimate their work Any system has a natural rate
What are the five Gs?
Gemba Genbutsu Genjitsu Genri Gensoku
What are the 5gs roughly translated as?
Gemba - real place Genbutsu - go and see Genjitsu - data and facts Genri - principles Gensoku - standards
What does root cause analysis involve?
The 5 whys
What is muda?
It means waste and involves: transportation inventory motion waiting over-processing over-production defects
Besides the 5 whys, what else can be used for root cause analysis?
Ishikawa Fishbone Diagram
What does a check sheet do?
It counts the occurrences of events
What does a control chart do?
It checks that a process is within a range
What are some quality tools?
Histograms, Pareto charts, scatter diagrams, run charts, check sheets, control charts
What is the Pareto principle?
That 80 percent of outcomes are traced to 20 percent of principles
What can a run chart do?
It can be used to overlay runs to spot changes
What is poka yoke?
Mistake proofing
What is Heijunka?
It is levelling the workload
What is Quick Changeover?
Single minute exchange of dies
What is total productive maintenance?
Minimising downtime, worker generated plans
What are the 5Ss?
Sort out Set in order Sweep Standardise Sustain
What does lean thinking in the business process refer to?
Trying to avoid excessive reporting and duplicating data
What needs to be identified and avoided?
Excessive reports Multiple signatures Re-entering data Duplicated data Lack of standards Lack of visibility Demoralisation
What are process maps?
These are maps or flow charts that show how a process may happen - high level ones may use swim lanes
What can you do once you have mapped a process?
Measure and control it
What is ISO 9001?
It is a form of certification that states some level of quality is attained - some argue paperwork is excessive
What seven principles is ISO 9001 based on?
Customer focus Leadership Engagement of people Process approach Improvement Evidence based decision making Relationship management
What does DMAIC stand for?
Define Measure Analyse Improve Control
What is Six Sigmas version of PDCA/PDSA?
DMAIC
How may mature companies boost their life?
By a strategic inflection point
What is a strategic inflection point?
It is a point where growth has slowed down and can now go either way, it can either lead to exponential growth or catastrophic decline
What are some examples of strategic inflection points in technology?
Ollila divesting other businesses with Nokia and focusing on high value telecommunications
Steve Jobs returning to Apple by simplifying the line of products
What was Jobs’ Simplified Vision for Apple’s Product Line?
Home Desktop - iMac
Business Desktop - Power Mac G4
Home Laptop - iBook
Business Laptop - PowerBook G4
What happens with discontinuation and divestment?
Staff are laid off, no longer able to compete in certain markets, negative impact on finances, social, public relations
What can cost accounting show?
Whether it is worth continuing a product or not - some may not be profitable but may be compensating some unavoidable costs
What do you need to take into account with cost accounting?
The future and more research that needs to be carried out
What is projectification?
It is a claim that technology and business is driven by product development projects, and marketing is also driven by projects (campaigns), so it is claimed that both firms and the public sector have been ‘projectified’.
What is business and organisational change?
These are specific types of project that often fail. It is a way of enacting change. It is therefore vital to consider the affected people.
What do successful change projects require?
Trust that the change will be positive
A persuasive vision that people can buy into
Executive sponsorship / ownership
What is Kotter’s 8 Step Process?
Establish a sense of urgency Create a guiding coalition Develop a change vision Communicate the vision for buy-in Empower broad-based action Generate short-term wins Never let up Incorporate changes into culture
What is Kanter’s Change Masters?
Tune into the environment Use kaleidoscope thinking Communicate a clear vision Build coalitions Work through teams Persist and persevere Make everyone a hero
What is a crisis?
An unexpected threat to the organisation
What does Lerbinger suggest as crisis categories?
Natural disaster Technological crisis Confrontation Malevolence Organisational misdeeds Workplace violence Rumours Terrorism
What does Coombs propose about crisis?
A situational crisis communication theory is needed
Crisis responsibility, strategies, emotions, crisis history, prior relationship and organisational reputation drive behaviour
What is insolvency?
It is when a firm has insufficient cash inflows to meet its outflows
What may a firm do when faced with insolvency?
Re-negotiate with its creditors
Seek court relief through bankruptcy proceedings
Liquidate surplus assets to raise extra cash
Sell the whole firm to another
What is takeover risk?
It is that during a takeover there are some unknowns, it may not be successful, things may go wrong
What is due diligence?
It is researching and analysing a company prior to a business transaction. It should focus on the company situation, its operations, staff, other assets
What may be included when performing some analysis prior to a business takeover?
A due diligence questionnaire for the firm to complete and interviews of key personnel to identify their strengths
Why is due diligence important?
Because liability insurance does not cover everything!
What does professional indemnity insurance cover?
Cover for causing a financial loss or reputational damage for:
breach of contract, confidentiality agreement or copyright
Causing financial loss through negligence
Giving incorrect advice
Defamation acts
Who needs professional indemnity insurance?
Not every business but those who offer knowledge, skills or advice, maybe if you are a self employed consultant or accountant
