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
