Learning objective 5
Describe various management styles and know when they are appropriate. (Text pages 194-199)
A.There are several leadership styles by which to achieve goals.
1.No one style is better than another.
2.It depends on the situation.
B.AUTOCRATIC LEADERSHIP involves making managerial decisions without consulting others.
C.PARTICIPATIVE (DEMOCRATIC) LEADERSHIP consists of managers and employees working together to make decisions.
1.Research shows that employee participation usually increases job satisfaction.
2.Organizations that have successfully used this style include Ascentium, IBM, FedEx, and most smaller firms.
3.Employees discuss management issues and resolve those issues together in a democratic manner.
D.Free-Rein Leadership
1.FREE-REIN (laissez-faire) LEADERSHIP involves managers setting objectives and then employees being relatively free to do whatever it takes to accomplish those objectives.
2.This style can be used when employees know the job well and management-employee trust exists.
3.It is often successful when dealing with technical workers or other professionals
4.The personal traits needed include warmth, friendliness, and understanding.
E.Theory X
1.Douglas McGregor observed that managers’ attitudes generally fall into one of two different sets of managerial assumptions: Theory X and Theory Y.
2Theory X managers believe:
a.The average person dislikes work and will avoid it if possible.
b.Because of this dislike, workers must be forced, controlled, directed, or threatened with punishment to be motivated to put forth the effort to achieve the organization’s goals.
c.The average worker prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security.
d.Primary motivators are fear and money.
3.The consequence of such attitudes is a manager who watches people closely.
a.Motivation is more punishment for bad work, rather than reward for good work.
b.Theory X managers give workers little responsibility, authority, or flexibility.
c.This type of motivation may work in the short term, but is unlikely to work in the long term.
F.Theory Y
1.THEORY Y manager make entirely different assumptions about people:
a.Most people like work; it is as natural as play or rest.
b.Most people naturally work toward goals to which they are committed.
c.The depth of a person’s commitment to goals depends on the perceived rewards for achieving them.
d.Under certain conditions, most people not only accept, but seek responsibility.
e.People are capable of using a high degree of imagination, creativity, and cleverness to solve problems.
f.In industry, the average person’s intellectual potential is only partially realized.
g.People are motivated by a variety of rewards; each worker is stimulated by a reward unique to that worker.
2.Theory Y emphasizes a relaxed managerial atmosphere in which workers are free to set objectives and be flexible.
G.Theory Z
1.In the 1980s William Ouchi developed Theory Z, a management theory that focuses on trust and intimacy within the work group.
2.This style combines characteristics from Japanese and American management styles.
3.Managers implementing Theory Z believe in:
a.long-term employment;
b.collective decision making;
c.individual responsibility for the outcome of decisions;
d.slow evaluation and promotion;
e.moderately specialized career path;
f.holistic concern for employees.
H.Leadership is actually a continuumwith varying amounts of employee participation.
1.The best leadership style to use depends on:
a.the goals and values of the firm;
b.who is being led;
c.in what situations.
2.Any one manager can use a variety of leadership styles.
3.Successful leaders use the leadership style that is appropriate to the situation and the employees involved.
SELF Check Questions(Text page 199)
- Do you think you would work well under free-rein leadership? Why or why not?
- Have you had a Theory X, Y, or Z manager? Describe your experience working for that person.
Management Styles
(Refers to text pages 194-196)
TEXT FIGURE 6.12
Leadership Styles(Box in text on page 194)
TEXT REFERENCE
Thinking Critically:
Chess, Not Checkers
(Box in text on page 196-197)“Average managers play checkers, while great managers play chess.” This quote illustrates that great managers value the unique abilities of their employees and learn how to integrate them into a coordinated plan.
lecture link 6-6
Beware of Bad Bosses
Bad bosses have always been with us. This lecture link explains how to handle them. (See complete lecture link on page 6.34 of this manual.)
PowerPoint 6-12
Management Styles
(Refers to text pages 196-199)
Bonus Case 6-4
The Supermarket Manager
A new employee develops some creative suggestions for improving performance, but her boss reacts badly. (See complete case, discussion questions, and suggested answers on page 6.54 of this manual.)
TEXT FIGURE 6.13
A Comparison of Theories X, Y, and Z(Box in text on page 199)
critical thinking
exercise6-7
Leadership Situation
Different situations call for different leadership styles. This exercise asks students to identify specific situations. (See complete exercise on page 6.47 of this manual.)