Management Theories

for the
Manager in Training

Alex Melendez, Brynna Bangerter, Emma Beckstead, Stephanie Fenton

Contents
Likerts New Patterns of Management............................................................................................ 3
Leadership and Organizational Performance .............................................................................. 3
Group Processes and Organizational Performance..................................................................... 4
Communication, Influence, and Organizational Performance .................................................... 5
Supportive Relationships ............................................................................................................. 6
Highly Effective Groups ............................................................................................................... 7
Herzberg's Theory ........................................................................................................................... 8
Motivation ................................................................................................................................... 8
Personnel Management .............................................................................................................. 9
Job Enrichment ............................................................................................................................ 9
Blake and Moutons Managerial Grid............................................................................................ 10
Task Management (9, 1) ............................................................................................................ 10
Country Club Management (1, 9) .............................................................................................. 11
Impoverished Management (1, 1) ............................................................................................. 11
Middle-of-the-Road Management (5, 5) ................................................................................... 11
Team Management (9, 9) .......................................................................................................... 11
Fred E. Fiedlers Contingency Model ............................................................................................. 13
Maslows Theories on Motivation and Personality ....................................................................... 15
Preface to the Motivation Theory ............................................................................................. 15
The Theory of Human Motivation (Holistic-Dynamic Theory) .................................................. 16
Characteristics of Self-Actualizers ............................................................................................. 17
The Human Side of Enterprise - McGregor ................................................................................... 20
Management and Scientific Knowledge .................................................................................... 20
Methods of Influence ................................................................................................................ 21
Dependency Between Managers and Subordinates ................................................................. 21
Role of a Manager ..................................................................................................................... 21
Theories ..................................................................................................................................... 22
Comparison Between Theory X and Y ....................................................................................... 23
Interdependent Relationships ................................................................................................... 24
John C. Maxwells 21 Laws of Leadership...................................................................................... 25
The Law of Addition................................................................................................................... 25
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The Law of Solid Ground ........................................................................................................... 25

The Law of Magnetism .............................................................................................................. 26
The Law of Connection .............................................................................................................. 26
The Law of Empowerment ........................................................................................................ 26
The Law of Sacrifice ................................................................................................................... 26
The Law of Victory ..................................................................................................................... 27
Index .............................................................................................................................................. 28
Bibliography................................................................................................................................... 29

Likerts New Patterns of Management

Likert compiled the first chapters of his book based on research in three different areas: (1)
how leadership styles affect organizational performance, (2) how different group processes
affect performance, and (3) how communication affects performance. The following sections
outline the results of these studies.

Leadership and Organizational Performance

Employee-centered vs job-centered supervision
Studies have shown that managers focused on keeping employees busy completing different
aspects of their job tend to have relatively low productivity. In contrast, when supervisors
focus on their employees rather than the job create superior work environments. It is
important to allow employees make their own decisions and do their jobs the way they think
best.
Additionally, people perform better if you take a sincere interest in them and their success.
The employee-centered manager makes sure to take real interest in the wellbeing of his
employees and listens to their needs. Interestingly, absence is significantly lower in
organizations where employees feel free to express concerns with their supervisors than in the
opposite.

Supportive managerial behavior

Employees tend not to appreciate managers that are constantly breathing down their necks.
Supportive managers realize that productivity actually increases when subordinates are given
time and space to work, without undue pressure from supervisors.
Three Types of Scientific Leaders
Under-directive
Passive

Participative (IDEAL)
Active

Over-directive
Over-active

Assumes employees know Encourages employees to Assumes personal direction

what theyre doing
rely on their own initiative
for all work
Only gives help when asked

Uses group discussion rather Employees only purpose is

than one-on-one meetings to execute the leaders ideas
with employees

The manager should make clear to employees what the objectives of the organization are, and
what needs to be accomplished each week, then step back and allow some freedom in the
workplace. When an employee makes a mistake, the supervisor either ignores it or uses it to
teach a principle or skill. Punishment rarely improves performance. It is important to
recognize mistakes as part of the learning process.

Some general factors and productivity

Research found that positive attitudes towards a company were not necessarily correlated with
high productivity. However, higher employee satisfaction was correlated with reduced
absences and turnover.

Supervision and the general style of leadership throughout the organization are usually much
more important in influencing results than such general factors as attitudes toward the
company and interest in the job itself.

Group Processes and Organizational Performance

Research shows that managers who can effectively supervise employees as a group are likely
to have good productivity and job satisfaction. When group discussions are held more
frequently than not, employees feel that their supervisor cares about their ideas and actually
wants to act on them. However, if the supervisor does not genuinely care, group meetings
have little benefit.
Another factor related to group efficiency is peer-group loyalty, or loyalty among group
members. Researchers have not found a strong correlation between such loyalty and
productivity, however it is important for the goals of the group to be associated with the
objectives of the organization. The combination of high peer-group loyalty and common goals
appears to increase the likelihood of such goals being met.

Members of groups with greater peer loyalty are more likely to have:
Greater identification with group and feeling of belonging
More friends in group vs. outside group
Good relationships among group members
Favorable attitude toward job and company
Higher production goals and more actual production with less strain

Communication, Influence, and Organizational Performance

Communication involves several steps: (1) transmission of message, (2) reception, and (3)
acceptance or rejection. If any one of these steps is missing, the message has not been fully
communicated from the sender to the receiver.
There are different types of material that may need to be communicated, as outlined below.

Types of material to be transmitted

Cognitive Material
Information or facts
Ideas, suggestions, and experiences
Knowledge with regard to objectives, policies, and actions
Motivational and Emotional Material
Emotional climate or atmosphere
Attitudes and reactions
Loyalties and hostilities
Feelings of support, appreciations, or rejection
Goals and objectives

Even though a manager may have built his department into an organization with these
qualities his department will not achieve high productivity unless his leadership and the
decision making processes used by the organization result in the establishment of high
performance goals by the members for themselves.
Besides these types of information that may need to be transmitted, there are also different
directions of communication within a workplace. The two most common are downward
(supervisor to subordinate), and upward (subordinate to supervisor). Studies have shown that
there tends to be greater concern in the workplace for downward communication, though
upward communication is often just as inadequate. Often managers are more concerned with
getting their viewpoints across to their subordinates than hearing the viewpoints of these
employees.

Influence and performance

The amount of influence any individual or group exerts on an organization relies heavily on
effective communication, and is therefore correlated with performance. Researchers found
that when managers exert greater pressure on employees, the perception of their influence
actually decreases. Workers perform better and consider their managers more influential when
pressure to achieve is kept at a reasonable level.

Each of us wants appreciation, recognition, influence, a feeling of accomplishment, and a

feeling that people who are important to us believe in us and respect us.

Supportive Relationships
The concept of supportive relationships refers to the need to harness motives for the good of
an organization. In order for a company to reach maximum efficiency, its members need to
understand and feel the importance of its mission. Each employee needs to feel that his role
within the organization is vital to its success, and that the goals of the company contribute to
his own personal worth.

Two different models for company organization

There are two types of group structures outlined by Likert. The first is the traditional
organization, in which there is one superior in charge of several subordinates. Communication
takes place on an individual-to-individual bases most frequently. The overlapping group form,
otherwise known as the linking pin organization, consists of multiple levels of supervisors.

Traditional Company Organization

Overlapping Group From

The overlapping group form is considered the more effective

model for an organization. Within this model, each
supervisor is part of two different groups, one with his
subordinates and one with his own supervisors. This method
of organization effectively links all employees within a
company and allows for group discussion and decision
making.

CHARACTERISTICS OF
HIGHLY EFFECTIVE
GROUPS

The linking-pin function

Comfort working
together

Within the overlapping group model, employees should be

able to effectively communicate with both supervisors and
subordinates. One of the most important factors in allowing
this process to work is the amount of influence each
employee feels he or she has. Workers should feel that they
have sufficient influence that their suggestions will be acted
on by both supervisors and subordinates.

Leadership skills

Group loyalty
Confidence
Trust
Harmony
Satisfying goals

Highly Effective Groups

Motivation

Group task roles

These are roles related to dealing with finding solutions to
problems that arise within the group.

Supportive atmosphere
Helps group members
reach full potential

Initialization-contributing

Coordination

Information seeking

Orienting

Creativity

Opinion giving/seeking

Energizing

Information giving

Assisting on Procedure

Belief in achieving the

impossible

Elaborating

Evaluating and recording

Group building and maintenance roles

These roles deal with the efforts of the group to strengthen
group dynamics.
Encouraging

Gatekeeping

Harmonizing

Observing

Compromising

Following

Effective
communication
Secure decision making
Carefully selected
leader
Members have
influence and are
influenced

Herzberg's Theory
Herzberg developed the motivation-hygiene theory, which discusses factors that cause job
satisfaction or dissatisfaction. The factors that cause dissatisfaction are referred to as hygiene
factors because they are required for the basic maintenance of the organization, but do not
create lasting satisfaction. Herzberg refers to job satisfiers as motivators.

Motivators (satisfaction)

Hygiene factors (dissatisfaction)

Achievement

Company policy

Recognition

Supervision

The work itself

Interpersonal relationships

Responsibility

Working conditions

Growth

Salary and status

Advancement

Security

Motivation
KITA
KITA is a motivational theory that can be described as kicking employees to work. The
example Herzberg gives is that if you kick your dog, he will move. However, this is clearly not
the best form of motivation. The following are examples of using KITA:
Reducing time spent at work: this idea is flawed, because motivated people should seek
more hours at work, not less.
Spiraling wages: this only motivates employees to seek pay increases.
Fringe benefits: expensive and ineffective.
And there are several more examples of ways the KITA method has been ineffectively applied
in the workplace in an effort to motivate employees.

Based on samples from 1685 employees, the primary cause of satisfaction was motivators
while hygiene factors were the primary cause of unhappiness on the job.

Personnel Management
Three general philosophies of personnel management
Organizational Theory
Human needs are varied and adjustable to specific situations
If jobs are organized properly the result will be the most efficient job structure and
favorable job attitudes
Industrial Engineering
Human needs are met by using the most efficient process
Structuring jobs in a manner that leads to efficiency
Making the most efficient use of the human machine
Behavioral Science
Focus on group attitudes, along with the social and psychological climate of the
organization
Education on human relations

Job Enrichment
Job enrichment is not a one time proposition but a continuous management function.
Make the most of job enrichment by:
Selecting jobs where morale is low
Viewing these jobs in the light that they can be changed
Brainstorming ideas for changes and then screen them
Involving the employees that do this job
Having a controlled experiment to test out changes
Changes may lower performance in the short run but they will be worth it in the long run.

If time and money switched from hygiene to motivation then the return in human satisfaction
and economic gain would be one of largest dividends that industry and society have ever reaped
through their effects at better personnel management.

Blake and Moutons Managerial Grid

The Managerial Grid creates a visual representation of the efficacy of the mix of a leaders
concern for productivity and a leaders concern for people. Concern for production becomes
the x axis and concern for people becomes the y axis. A manager scores and plots their
motivations, which are influenced by their personal history, values, and environment.
Knowing where they fall on the grid can help the leader identify improvement strategies.

Task Management (9, 1)

This leader is highly focused on production and has a low concern for people. This may be
because the organizations needs and employees needs arent compatible. This leader likes to
feel powerful and hardworking. This leader usually gives step by step instructions, uses threats,
and uses defensive and straightforward communication. This leadership style can lead to initial
productivity but poor morale and high turnover over time.

Techniques for improvement

Increase employee involvement, be transparent, consult with others, encourage openness,
listen openly, and slow down the decision making process.
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Country Club Management (1, 9)

This leader is highly concerned for people but has a low concern for production. This leader
has a high need for acceptance and approval. Since they tend to avoid disagreeing or sharing
bad news, production can suffer. Employees may feel safe and happy or they may feel
smothered by the manager.

Techniques for improvement

Take more initiative, be willing to ask why others feel the way they do, share your opinion, be
concise, accept that conflict and difficult decisions are inevitable, and learn to give positive
feedback.

Impoverished Management (1, 1)

This leader has low concern both for production and people. This leader usually does the bare
minimum to maintain the organization. They may be uninvolved, bored, neutral, and tend to
avoid personal responsibility. This leader usually rationalizes their lack of productivity.

Techniques for improvement

Re-think commitment and motivation to keep your job, ask for more assignments, ask
questions of your employees, be straightforward, ask employees how you can help, ask how
you can improve

Middle-of-the-Road Management (5, 5)

This leader has a moderate amount of concern for both people and production. This leader
tends to do things the way theyve been done in the past, usually gives conflict some time in
case it resolves itself, and succeeds at compromise but struggles in in making unpopular
decisions.

Techniques for improvement

Speak your mind, be willing to solve problems in a new way, make decisions without delaying
too much, give rationale for decisions made, and accept feedback.

Team Management (9, 9)

This leader has a high concern for both people and production. This leader believes that
production is reliant upon people having their needs met. This leader does not push personal
interests, communicates clearly, utilizes production standards, is aware of personal needs of
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others, is a good listener, and is hard working. High levels of productivity, creativity, and
satisfaction are reached.

Techniques for improvement

Keep up the great work!

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Fred E. Fiedlers Contingency Model

Definitions for this model:
Group: interdependent set of people that would all be similarly impacted by a single event.
Leader: Individual in charge of directing the tasks and activities of a group.
Leaders effectiveness: measured by group performance

The question
Will a leaders management style be effective in a given situation?

The premise
The effectiveness of a leader depends on the favorableness of the group-task situation which
takes into account:
The degree a leader is liked or accepted
The degree a leaders tasks are clearly defined.
The level of authority or power a leader has attained.

The results
Leaders who are task-oriented tend to be more effective in highly favorable -task situations
and slightly unfavorable ones. Relationship-oriented leaders tend to be more effective in
group-task situations that are neither favorable nor unfavorable.
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Additional implications
Leaders with a high LPC (least preferred co-worker) score likely values a high position and
good relationships. When confronted with an unfavorable group-task situation, he or she will
likely increase their interaction with the group to feel satisfied with job performance. This will
be successful depending on whether the group-task situation thrives on task-oriented leaders
or relationship-oriented leaders.
Leaders with a low LPC score likely values accomplishment of tasks or work performed. When
confronted with an unfavorable group-task situation, he or she will likely focus on interactions
associated with tasks in order to feel satisfied with job performance. This will be successful
depending on whether the group-task situation thrives off task-oriented leaders or
relationship-oriented leaders.
Performance can be improved by changing the leaders style to suit his or her group-task
situation or changing the group-task situation to suit the leader. However, the leaders style
takes a few years to change because it is a result of the leaders inherent needs and reward
system. The group-task situation is more easily changed by shifting the distribution of
structured and ambiguous tasks, modifying a leaders position or level of recognition, or
shifting the groups that the leader will be responsible for.
Past leadership experience is only likely to predict future performance if the group-task
situation in both scenarios is almost the same.
Effective leadership training should focus on helping leaders assess whether their leadership
style is suited to their group-task situation and learning how to adapt their style to fit their
group-task situation.

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Maslows Theories on Motivation and Personality

Preface to the Motivation Theory
The individual is an integrated whole
The individual is an integrated, organized whole and in regards to the motivation theory, this
means that the whole individual is motivated, not just a part. When John is hungry, its not
just his stomach that feels the effects; the hunger affects his emotions, memories, perception,
thoughts, etc. Similarly, motivation also affects the whole individual.

Means to an end
If we take the average desires we have in a day, we will see that most are a means to an end
rather than an end in themselves. We can go back into them to find more fundamental goals
than the superficial value. For example, we want money to buy a car because our neighbor has
one. We do not want to be inferior to him, and such a purchase will help us retain our selfrespect. Therefore, the desires that pass through our conscious are not as important as what
they stand for and where they lead. If this is true, then the study of motivation must be in part
the study of the ultimate human being.

Desire and culture

Culture affects how we fulfill our desires. For example, the desire to be a good hunter or a
good medicine man both achieve the satisfaction of self- esteem so they both use the same
dynamics and the same fundamentals to reach their goal.

Important factors of the motivation theory

Humans are never satisfied except in a one step along the path fashion.
Wants arrange themselves into a hierarchy of prepotency (self-actualization ladder).

List of drives
We cannot make a list of drives because this is saying we all have the same drives and
motivations. It also implies you can isolate each drive into a category, but we must remember
each drive has an underlying drive that can be different from one person to another. If we say
we can list all drives then we are forgetting the dynamic nature of drives, their conscious and
unconscious aspect, and that one particular desire can be a channel for other desires.
Classification of motivations is constructed on goals or needs. It is only the fundamental set
of goals that stay constant rather than listing all drives. For example, we can all have the goal
for love but how we go about it differs.
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Possibility of attainment
We consciously desire things that are attainable rather than having our desires be unrealistic.
We want things that are within our reach and as we progress, we continue to strive for bigger
things. For example, a poor man wont strive for a private air plane, only maybe unconsciously,
but it will not be a priority.

The Theory of Human Motivation (Holistic-Dynamic Theory)

Physiological needs: These needs include homeostasis and appetite (food). Our body
maintains a normal state of blood stream and regains the missing elements it needs. It
is manifested by hunger. These drives are localized and independent of other
motivations and organism as a
whole. They serve as channels to
other needs. Someone who is
missing the basic physiological
needs will not worry about safety,
love, and esteem. Maslow said,
Man lives by bread alone when
there is no bread. Once the
stomach is satisfied then higher
needs
begin
to
emerge.
Gratification
becomes
more
important than deprivation.
Safety needs: Once physiological needs are met, we work towards meeting our need
for security, stability, order, dependency, protection, and freedom from fear, anxiety,
and chaos. It is not localized but rather requires the whole person. Sometimes safety,
if extreme, can dominate the physiological needs and man may be said to live for safety
alone. Adults may learn to suppress safety needs from surfacing or be seen visibly by
others. Sometimes we want an undisrupted routine or rhythm in our daily lives. We
prefer a safe, orderly predictable, lawful organized world. On an extreme level, the
threat of chaos from military rule or dictatorship, or war can disturb the safety need.
Belongingness and love: The individual will strive to win the love and affection from
people, mainly friends and family. We underestimate the need for belonging to ones
groups, clan, territory, culture. Moving frequently may hinder our sense of belonging
especially when introduced to a new group. Others include the breakdown of
traditional groups, scattering of families, generation gap, urbanization, and face-to-face
interaction. Love and affection needs are different from sexual needs in the sense that
it requires both giving and receiving.
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 Esteem: The need for high evaluation of oneself, for self-respect, self-esteem and the
esteem of others. There are two types of esteem. One is the desire for strength,
achievement, mastery, competence in the face of the world or recognition for oneself.
Second is the desire for reputation and prestige, recognition, glory, attention,
importance, appreciation from others. This leads to feelings of self-confidence, worth,
strength, capability and usefulness to the world. We tend to base our self-esteem on
the opinion of others (second type) rather than our own capacity to accomplish the
task. The most stable and healthy self-esteem comes from deserved respect from
others rather than fame and celebrity. That is the real self rather than an idealized
pseudo self.
Self-actualization: We are never satisfied as humans until we find what we are fitted
for. Maslow says, What a man can be he must be. It is a mans desire to obtain selffulfillment and to become everything that he is capable of becoming. More on this
topic will be discussed later.

Preconditions for basic needs satisfaction

One must have the freedom of speech, freedom to do what one wishes as long as it doesnt
harm another, freedom to express oneself, freedom to investigate, to defend oneself, to seek
information. Without these conditions, the basic satisfaction are quite impossible. Secrecy,
censorship, dishonesty, blocking of communication threaten all basic needs.

Characteristics of Self-Actualizers
As discussed previously, self-actualization can be described as an individual reaching their full
potential. Of course, no one is perfect and neither are self-actualizers, but there are several
qualities that these individuals possess that we can strive to imitate. The following qualities
display a range of emotional, moral, and interpersonal aspects of health.

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Acceptance
of nature

Creative
Problem
centered
Honest
emotions

Seltsufficient

Acceptance of
strengths and
shorcomings

Accurate
perception of
reality

SelfActualization
Ethics

Humble

Gratitude
Strong
relationships

Independant

Accurate perception of reality

Healthy people see the world as it is, rather than as distorted by their needs and beliefs. Maslow
writes, "The neurotic is not emotionally sick; he is cognitively wrong." Unhealthy persons fit
the world to fit the shapes of their fear, needs, and values.

Acceptance of nature
Self-actualizers have a general acceptance of nature, others, and oneself. They see reality more
clearly, as it is rather than as they would prefer it to be.

Honest emotions
They display their emotions honestly, but are also thoughtful and considerate of others. Their
behavior is marked by simplicity and naturalness, and by lack of artificiality or straining for
effect.

Ethics
Self-actualizers have a clear sense of ethics, rather than being governed by expediency. They
can distinguish clearly between means and ends, and between right and wrong.

Humble
Self-actualizers do not act superior toward anyone, but are ready to learn from anyone. They
are not authoritarian and do not want "power over" others or to be subjugated by others. In
other words they have democratic characteristics. Additionally, they can focus on problems
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outside themselves and are committed to their work. They are problem centered rather than
ego centered.

Independent
Self-actualizers are independent, meaning they are more comfortable with solitude than the
average person. They do not need the approval of others, but are motivated more by growth.
People are more likely to have the attribute of independence if they experienced love and
respect in childhood.

Strong relationships
They have the ability to maintain strong, rich relationships and have a feeling of kinship with
all people. They have deep and profound interpersonal experiences

Creative
They are creative, original, inventive, and innovative. Creativeness is more an attitude, an
expression of psychological health, and is concerned with how we perceive and react to the
world

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The Human Side of Enterprise - McGregor

Management and Scientific Knowledge
Managers rely on the knowledge of science, their colleagues, and on personal experience to be
able to perform their role as a manager.
The role of a manager is to organize human effort in the service of the economic objectives
of the enterprise. Therefore, a manger must know how to predict and control human behavior.
The goal is to attract people into the organization, and organize and direct their efforts
towards the production and sale of good or services at profit. Therefore, it is good to add
social sciences as one of the knowledges managers should rely on.

Every managerial act rests on theory

Management cannot be considered a science, because science involves advancement in
knowledge, whereas management is more concerned with the achievement of objectives.
However, managers can and should use science to reach such objectives.
Every action a manager takes relies on assumption, generalization, and hypothesis. For
example, when a manager gives an instruction to his employees, he assumes they can be trusted
to follow his orders. In this scenario, the manager is applying scientific principles to
management.

Effective prediction and control are vital

Human behavior is predictable only when the theoretical assumption is correct. All managerial
decisions and actions rely on assumptions about behavior.
Managers can improve their ability to control only when they recognize that control consists
in selective adaptation to human nature rather than trying to make human nature conform to
their wishes.
With control comes the concern about ethical values. Managers dont want to be manipulative
or exploitive. For example, managers cannot use medical information to decide whether they
will keep an employee or not after they have assimilated into the organization.

We must not try to fix the symptoms but the cause. We must change assumptions, and
understand human behavior.

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Methods of Influence
Authoritative
The basic principle of organizational theory is that authority is the central, indispensable means
of managerial control. In other words, it follows the unity of command principle. This is one
of several forms of social influence and control. The most powerful is direct physical coercion.
Although limited, it is used in certain forms of criminal behavior; it can occur in labor disputes
and maybe parents on small children.

Persuasion
Managers may also try to sell an idea or a course of action to someone to make it more
appealing.

Authority of knowledge
Managers can use their influence if they are perceived as the ultimate font of information and
instruction as seen in specific professions such as doctors. Professional help is conceived in
unilateral terms, but it is about placing the professionals knowledge and skill at the clients
disposal.

Dependency Between Managers and Subordinates

The success of any form of social influence or control depends on altering the ability of others
to achieve their goals or satisfy their needs. It may be minor such as product advertising in
mass media or major such as termination of a job. In either case, the influence can occur only
when there is some degree of dependence of one party on the other.
Every manager at every level is dependent upon those below him. The degree of dependence
is a determining factor for what methods of control will be effective. Authoritative dependence
may yield in indifference, low standards of performance, and refusal to accept responsibility.
Interdependence involves lateral dependence not just upward and downward as seen in
authoritative. It means working with many departments where ones output is the input of the
other. When dependence is approximately equal, authority is useless as a means of control.

Role of a Manager
The managerial role is not a single, invariant one but a complex of different roles (like a father
is a teacher, provider, protector, etc.) a manager may take on the role of leader, team member,
teacher, decision maker, disciplinarian, helper, consultant, or an observer. Because managerial
methods have shaped our belief that a boss is a boss and nothing more, it can be difficult for
subordinates to perceive him/her as someone else or see the shift in role.
21

Theories
Now that we have seen the role and influence of managers, we will look into the two main
theories/mindset a managers can have.

Theory X: The traditional view of direction and control

Behind every managerial action are assumptions about human nature and human behavior. A
manager who follows theory X assumes:
The average human being has an inherit dislike of work and will avoid it if he can.
Because of this, most people must be coerced (forced), controlled and directed to get
them to put forth effort to achieve objectives: only the threat of punishment will do
the trick not incentives because they will only ask for more every time.
The average human being prefers to be directed, wishes to avoid responsibility, has
little ambition, and wants security overall.

The mans whose needs for safety, association, independence or status are thwarted is sick
just as surely as is he who has a dietary deficiency and this will have behavioral consequences.
Theory Y: The integration of individual and organizational goals
A manager who follows theory Y assumes:
The expenditure of physical and mental effort in work is as natural as play or rest.
Depending on controllable conditions work can be satisfying and will be voluntarily
performed or a source of punishment and will be avoided.
External control and threat of punishment are not the only means for bringing about
effort toward organizational objectives. Man will be self-directed and controlled if they
are committed to the objectives.
Commitment to objectives serves as a function of reward associated with their
achievement, satisfies the ego, and self-actualization.
Humans learn under proper conditions, not only to accept but to seek responsibility.
Lack of this is consequence of experience not human characteristic.
The capacity for creativity in the solution of an organization is held in widely in the
population.
Intellectual potentialities of the average human are only partially utilized.
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Comparison Between Theory X and Y

Theory X

Theory Y

Blames human nature

Blames management methods

Scalar principle (control through exercise

of authority)

Integration (creation of conditions such

that the members of the organization can
achieve their goals best by directing their
efforts towards the success of the
enterprise)

Unless integration is achieved the

organization will suffer. Unilateral
administration will not create commitment
and commitment is necessary to make
available the full resources of those
affected.

Theory Y will stimulate self-direction and

control to the degree that employees are
committed to that goal.

Additional considerations
Promotions and rewards in the long run will not be enough if they do not meet the individuals
personal goals (satisfy the ego and self-actualization).
23

Managements implicit assumption is that working together means adjusting to the

requirements of the organization as management perceives them. This is not the case, for the
aim is to create conditions that members can perceive they can achieve their goals best by
directing their efforts towards the success of the enterprise. This means this alternative will be
more attractive to them than other alternatives available.
Application of theory Y will have to be tested in more limited ways and under favorable
conditions but this allows for innovations to discover new ways of organizing and directing
human effort.

Interdependent Relationships
(1) Managerial climate
The ability to achieve goals is materially affected by the attitudes of his superiors. The climate
is far more important the type of leadership or personal style of the superior. Subordinates
need to know they will receive a fair break. They need to have confidence in their manager in
that he not only knows his the jobs but is a competent and capable manager. Confidence rests
heavily in the subordinates belief in the integrity of the superior.
The climate of the superior-subordinate relationship is determined not by policy and
procedure or by the style of the superior, but by the unconscious manifestations of his
underlying conception of management and his assumption about people in general.
The subordinates attitudes also contribute to the climate of the relationship. A manager
cannot trust an incompetent or dishonest person. The dependence is greater upward than
downward, which means the superior exerts more control than the subordinate does over the
relationship.

(2) Staff line relationships

Staff groups see line managers as seeking to keep their power and authority. On the other
hand, line managers see staff groups as having their own agenda. The solution is delegation
and the freedom to give opportunities to learn and make mistakes.
Management by exceptions: the manager does not need a detailed report about the activities
of the subordinates; the staff can do this for him. The staff can become police officers,
exercising authority as if they were a proxy to the manager. Because the staff is neither feared
nor respected, they may be more effective in applying these countermeasures than the actual
manager.

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John C. Maxwells 21 Laws of Leadership

Leadership is certainly an important part of successful management. Therefore, we have
included principles taught by John C. Maxwell in his book The 21 Irrefutable Laws of
Leadership. The following chart displays each of the 21 laws, though we will only go into a
small handful of them in detail.

Law of the Lid

Law of Influence
Law of Process
Law of Navigation
Law of Addition
Law of Solid Ground
Law of Respect

The 21 Laws
Law of Intuition
Law of Magnetism
Law of Connection
Law of the Inner Circle
Law of Empowerment
Law of the Picture
Law of Victory

Law of Buy-In
Law of the Big Mo
Law of Sacrifice
Law of Explosive Growth
Law of Priorities
Law of Timing
Law of Legacy

The Law of Addition

Leaders add value by serving others.
Managers should focus less on advancing themselves and more on advancing others. Even
simple gestures such as knowing employees by name can have a huge impact on moral and
work ethic.
Costcos work environment provides a prime example of the Law of Addition. Jim Senegal,
the CEO of the company, has made a great effort to show respect to his employees and make
sure they are paid fair wages. He himself accepts a salary well below that of CEOs in similar
companies. As a consequence of these standards, Costco has a remarkably low employee
turnover rate and a highly successful business.

The Law of Solid Ground

Trust is the foundation of leadership.
As a manager, it is important that you have the trust of your employees. But how do you build
such trust? For one, do not try to hide your mistakes under lies. Rather, be willing to admit
when youre wrong and when youve made a mistake, then simply apologize to your employees
and correct the situation. Your honesty will be appreciated and admired and employees will
be more likely to avoid deception in their own work. So long as you are constant with your
good character and put forth honest, hard work, your employees will learn to respect and trust
you and will be more likely to follow your counsel.
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The Law of Magnetism

Who you are is who you attract.
Leaders have a tendency to attract followers with similar attributes and strengths as
themselves. Of course, as a manager (depending on the nature of your company), you may not
be one of the biggest factors in drawing employees to your company. However, it is useful to
keep in mind that if you wish to find and keep employees that are hardworking, honest, and
motivated, you must develop those qualities yourself.

The Law of Connection

Leaders touch a heart before they ask for a hand.
Connecting with your employees is an effective way of improving motivation and diligence in
the work place. People are much more likely to follow your direction if they feel you care
about them as a person. Connecting with employees can be done by communicating openly
and sincerely and getting to know them on an individual basis. Make sure to focus on the
employees and their needs, rather than your own hopes, and be encouraging and supportive
of each worker.

The Law of Empowerment

Only secure leaders give power to others.
This law is an interesting one. We see so many leaders and managers in our society today who
are so concerned about elevating themselves in rank and power that they begin to tear down
the value of others. Contrary to belief, however, bringing others down does not simultaneously
lift a leader but drags them downward as well. A successful leader is one who is confident in
their ability to lead and therefore can focus their efforts on supporting and lifting others.
It is vital that a manager is aware of the following three issues that can be destructive to their
leadership skills: (1) desire for job security, (2) resistance to change, and (3) lack of self-worth.

The Law of Sacrifice

A leader must give up to go up.
Whether you like it or not, you simply cannot have everything you want all at once. In order
to advance in position or advance your organization as a manager, you will have to sacrifice
time and resources. This may mean giving up your favorite TV show for a few months during
an important period of planning in your company, or perhaps you have to drop a second job
you are working to dedicate more time to your managerial position. Regardless of the situation,
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remember to put the needs of other ahead of your own and always do whats best for the
team.

The Law of Victory

Leaders find a way for the team to win.
Though you may run into several discouraging situations or downfalls in your career as a
manager, it is important to never accept defeat. A successful manager shakes off the mistakes
of the past and does whatever it takes to grasp victory. Despite any ruts in the road, you should
strive to unify your team of employees and strengthen their dedication to the organization.
Accept differences within the workplace and utilize the strengths of each individual to push
through rough patches in the road.

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Index
Acceptance, degree of13

Leader13, 25, 26

Authoritative21

Leadership style14

Authority, level of13

Leaders effectiveness13

Authority of knowledge21

Least preferred co-worker (LPC)14

Behavioral science9

Linking-pin function7

Belongingness and love16

Management style13

Communication5, 11

Managerial climate24

Country club management11

Middle-of-the-road management11

Culture15

Motivation8, 10

Employee-centered vs. job-centered

supervision3

Motivators8
Organizational theory9

Esteem17

Peer-group loyalty4

Group4, 13

Persuasion21

Group-task situation13

Physiological needs16

Hygiene factors8

Productivity3, 4, 10, 11

Impoverished management11

Relationship-oriented13, 14

Industrial engineering9

Safety needs16

Job enrichment9

Science20

KITA8

Self-actualization17

Law of addition25

Staff-line relationships24

Law of connection26

Task management10

Law of empowerment26

Task-oriented13, 14

Law of magnetism26

Team management11

Law of sacrifice26

Theory X22, 23

Law of solid ground25

Theory Y22, 23

Law of victory27

Traditional organization6

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Bibliography
Blake, W. & Jane Mouton. The Managerial Grid, Houston, Texas, Gulf Publishing Company
1985 (Chapters 1-8).
Fiedler, F.E. A Theory of Leadership Effectiveness. McGraw-Hill Inc., New York. 1967. Chapters
1, 9, 11, 15, 16
Herzberg, F., One More Time: How Do You Motivate Employees. in "Harvard Business
Review," Jan-Feb, 1968.
Likert, R., New Patterns of Management. New York: McGraw-Hill, 1961 (Chapters 1-4, 8, 11).
Maslow, A.H., Motivation and Personality. Harper & Row, Inc. New York, 1954 (Chapters 3-5,
11, Appendix A).
McGregor, D., The Human Side of Enterprise. McGraw-Hill Book Company, New York, 1960
(Chapters 1-4, 10, 11).

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