Management and Organisational Behaviour
7th Edition
CHAPTER 7
Managerial Behaviour and
Effectiveness
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.2
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.3
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.4
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.5
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.6
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.7
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.8
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.9
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.10
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.
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.11
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.12
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.13
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.14
Likert’s management system
1. Exploitive authoritative – decisions imposed on staff
& motivation is based on threats
2. Benevolent authoritative – condescending form of
leadership with motivation based on system of
rewards
3. Consultative – some trust in staff, motivation based
on rewards & also some involvement
4. Participative – involves trust & confidence in staff
with motivation based on rewards for achievement of
agreed goals
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.15
Supportive relationships
These relationships are intended to enhance selfesteem and ego building. They contribute to
subordinates’ sense of personal worth,
significance and dignity.
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.16
Supportive relationships
A superior’s behaviour is supportive when there is:
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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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.17
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.18
Figure 7.4
The cycle of MBO activities
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.19
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.20
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.21
Figure 7.5
The effective management of people
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.22
The golden rule management philosophy
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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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.23
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.24
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.25
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.26
Figure 7.9
The 3-D model of managerial effectiveness
Source: Reddin, W.J. Managerial Effectiveness, McGraw-Hill (1970) p.206
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.27
The 3-D model of managerial effectiveness
Less effective are the –
Missionary
Compromiser
Deserter
Autocrat
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.28
The 3-D model of managerial effectiveness
More effective are the –
Developer
Executive
Bureaucrat
Benevolent autocrat
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 7.29
General criteria of managerial effectiveness
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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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005