Behavioural Management
Theories
BOH4M
McGregor’s Theory X/Y
• The Theory X approach…
– Employees are naturally lazy/avoid work,
don’t want responsibility, and fear changes
and challenges
• The Theory Y approach…
– Employees like work, seek responsibility,
show initiative and creativity, are excited by
changes and challenges
McGregor’s Theory X/Y
• Theory X Managers: Authoritarian,
repressive, exert tight control, no
employee involvement, pessimistic
• Theory Y Managers: Liberating,
empowering, gives employees
responsibility and freedom to develop,
optimistic
McGregor and the Self-Fulfilling
Prophecy
• Whether a manager has Theory X
assumptions, or Theory Y assumptions
about their employees, they’re right
– Your assumptions dictate how you manage,
and the employees will respond accordingly
– Workers in a Theory X environment are
unmotivated, lazy, rebellious, and work poorly
– Workers in a Theory Y environment are
motivated, loyal/committed, productive, take
pride in their work and respect managers
Argyris’s Theory of Adult
Personality
• Based heavily on Maslow and the
Hawthorne Studies
• Argues that classical management
approaches are inappropriate for mature
adults, and can be counter-productive
Critiques
• Scientific management states that tasks should
be defined as specifically as possible, but
Argyris believes this may inhibit selfactualization
• Weber’s bureaucratic organization had a clear
hierarchy in which people follow orders from
above, but Argyris argues that this will create
dependent workers who feel they have no
control over their environment
• Fayol’s administrative principles assume
productivity is maximized when an employee’s
work is planned and supervised by a superior,
but Argyris suggests that it’s much better for
people to define their own goals
Argyris’s Theory of Adult
Personality
• Also a believer in the “self-fullfilling
prophecy” of management – that if a
manager believes workers are willing
workers who want to do a good job, then
they will treat them as such, and will see
positive results
• Called for expanded job responsibilities,
variety, and the opportunity for more
participation in decision-making
Modern Management
Theories
Systems Thinking
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Views an organization as a system
A system is a group of people working together
for a common purpose
An organization can contain subsystems
(smaller groups working together for a
common purpose that serves the overall goals
of the larger system)
Important to recognize an organization as an
open system, one that is affected by, and can
affect, its environment
Contingency Thinking
•
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There is no one single style of management
that suits all organizations/situations
The most effective management style will vary
depending on the type of organization, its size,
its environment, and the particular
situation/problem it faces at the time
Sometimes a bureaucratic organization is most
effective, sometimes a more loosely structured
one; sometimes a more classical approach is
best, sometimes a more modern one
Total Quality Management
•
•
Known as TQM
A management philosophy that demands
a commitment to quality in all aspects of
an organization and at every step in the
value chain, from suppliers, through to
manufacturing and customer service
The Learning Organization
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•
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Similar to “continuous improvement”
Focuses on enhancing the systems
(including people) within an organization
to continually increase the organization's
capacity for performance
Basically: learn from your mistakes; and
never be satisfied with your current level
of performance
Theory Z
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•
Developed by Dr. William Ouchi
Not necessarily an offshoot of McGregor’s Theory X/Y,
Ouchi’s theory blends modern western management
approaches with Japanese management techniques
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Ironically, many so-called “Japanese” management techniques
such as Kaizen are based on American Edward Deming’s 14
Points For Management
Theory Z focuses on increasing employee loyalty to
the company by providing a job for life with a strong
focus on the well-being of the employee, both on and
off the job
This means stable employment, and high employee
morale and satisfaction by creating opportunities for
collaboration, lateral job movements, and mulit-level
participation in decision-making
Others….
• There are many, many different
management theories developed by
business profs, former executives,
consultants, and authors
• Some popular are really just recycling old
ideas
For Example…
• Sun Tzu’s The Art of War
• Written around 500 BCE
• Highly influential book of military strategy
that contains insights relevant to the world
of competitive business
– Many Japanese companies make it required
reading for their executives
– It has been the subject of at least 3 business
strategy books