TOPIC 2:

MANAGEMENT THEORIES
A theory: Is a set of ideas or set of ideas that is intended to explain facts or events. It is a system
of ideas intended to explain something, especially one based on general principles independent
of the thing to be explained. A formal statement of ideas that are suggested to explain a fact or
event or how something works.

Management theories are a collection of ideas that recommend general rules for how to manage
an organization or business.

1) Systems Theory

At its creation, Systems Theory (or The Systems Approach) had nothing to with business
management and everything to do with biology. That’s because Ludwig von Bertalanffy (1901-
1972) a biologist at the time founded general systems theory (GST) in an attempt to refute
reductionism and revive the unity of science.

The premise of general systems theory is that a system is composed of interacting elements that
are affected by their environment. Because of this interaction, the system as a whole can evolve
(develop new properties) and self-regulate (correct itself).

When applied to business, experts shorten “general systems theory” to just Systems Theory. In
actual fact, Systems Theory is more a perspective than a fully formed practice. Systems Theory
encourages you to realize that your business is a system and is governed by the same laws and
behaviors that affect every other biological organization.

This introduces such concepts as:

 Entropy. The tendency for a system to run down and die (a thing to be avoided in
business)
 Synergy. Working together, the parts can produce something greater than those same
parts could produce on their own
 Subsystem. The whole (your business) is built on subsystems, which themselves are built
on yet more subsystems

Because it is a way of looking at your business rather than a concrete management process, you
can use Systems Theory in concert with the other management theories on this list.

2) Principles of Administrative Management

Miner and engineer Henri Fayol (1841-1925) developed his principles of

administrative management as a top-down approach to examining a business. He put himself in
his manager’s shoes and imagined what situations they might encounter when dealing with their
team.

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From this, he concluded that his managers and indeed management in general had six
responsibilities when it came to managing employees:
 Organize
 Command
 Control
 Coordinate
 Plan
 Forecast
With those responsibilities in mind, Fayol developed 14 principles of administration that
influence how managers should lead their teams. These principles, which range from the
importance of maintaining a clean facility to the value of initiative and teamwork, are the
foundation for many of today’s most successful businesses.

HENRI FAYOL'S PRINCIPLES OF ADMINISTRATIVE MANAGEMENT

Henri Fayol (1841-1925), a mining engineer and senior executive in France, is considered to be
one of the most influential contributors to modern management theory. Unlike Taylor, who
improved productivity by analyzing workers' actions, Fayol took a top-down approach.

Fayol examined an organization through the lens of the managers and the situations they might
encounter. He believed that management has six paramount functions: to forecast, plan, organize,
command, coordinate and control.

Fayol developed 14 principles of administration that outline how managers should organize and
interact with employees.

His comprehensive principles, which have become foundational guidelines in many of today's
workplaces, cover topics ranging from the importance of maintaining an orderly and clean
facility to the value of promoting employee initiative and teamwork.

14 MANAGEMENT PRINCIPLES BY HENRI FAYOL

Henri Fayol, a French industrialist, is now recognized as the Father of Modern Management. In
the year 1916 Fayol wrote a book entitled “Industrial and General Administration”. In this book,
he gave the 14 Principles of Management.

14 management principles by Henri Fayol are universally accepted guidelines for managers to do
their job according to their responsibility. 14 management principles are;

1. Division of Work.
2. Balancing Authority and Responsibility.
3. Discipline.
4. Unity of Command.
5. Unity of Direction.

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 6. Subordination of Individual Interests to the General Interest.
7. Remuneration.
8. Centralization.
9. Scalar Chain.
10. Order.
11. Equity.
12. Stability of Tenure of Personnel.
13. Initiative.
14. Esprit De Corps.

1. Division of Work. Dividing the full work of the organization among individuals and
creating departments is called the division of work. Division of work leads to specialization,
and specialization helps to increases efficiency and efficiency which results in improvements in
the productivity and profitability of the organization.

2. Balancing Authority and Responsibility. Authority must be equal to Responsibility.

According to Henri Fayol, there should be a balance between Authority (Power) and
Responsibility (Duties). The right to give orders should not be considered without reference to
responsibility.

If the authority is more than responsibility then chances are that a manager may misuse it. If
responsibility is more than authority then he may feel frustrated.

3. Discipline

Outward mark of respect in accordance with formal or informal agreements between a firm and
its employees.

Discipline means respect for the rules and regulations of the organization. Discipline may be
Self-discipline, or it may be Enforced discipline.

No slacking or bending of rules, not allowed in any organization. The works must respect the
rules that run the organization. To establish discipline, good supervision and impartial judgment
are needed.

4. Unity of Command

According to this principle, a subordinate (employee) must have and receive orders from only
one superior (boss or manager).

To put it another way, a subordinate must report to only one superior. It helps in preventing dual
subordination. This decreases the possibilities of “Dual subordination” which creates a problem
is a function of managers.

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5. Unity of Direction

One head and one plan for a group of activities with the same objective. All activities which have
the same objective must be directed by one manager, and he must use one plan.

This is called the Unity of Direction.

For example, all marketing activities such as advertising, sales promotion, pricing policy, etc.,
must be directed by only one manager.

He must use only one plan for all the marketing activities. Unity of direction means activities
aimed at the same objective should be organized so that there are one plan and one person in
charge.

6. Subordination of Individual Interests to the General Interest

The interest of one individual or one group should not prevail over the general good. The
individual interest should be given less importance, while the general interest should be given the
most importance.

If not, the organization will collapse. The interest of the organizational goal should not be
sabotaged by the interest of an individual or on the group.

7. Remuneration

Remuneration is the price for services received. Pay should be fair to both the employee and the
firm.

If an organization wants efficient employees and best performance, then it should have a good
remuneration policy.

This policy should give maximum satisfaction to both employers and employees. It should
include both financial and non-financial incentives.

Compensation should be based on a systematic attempt to reward good performance.

8. Centralization

It is always present to a greater or lesser extent, depending on the size of the company and the
quality of its managers. In centralization, the authority is concentrated only in a few hands.

However, in decentralization, the authority is distributed to all the levels of management. No

organization can be completely centralized or decentralized.

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If there is complete centralization, then the subordinates will have no authority (power) to carry
out their responsibility (duties). Similarly, if there is complete decentralization, then the superior
will have no authority to control the organization.

Therefore, there should be a balance between centralization and decentralization.

The degree to which centralization or decentralization should be adopted depends on the

specific organization, but managers should retain final responsibility but should give
subordinates enough authority to do the tasks successfully.

9. Scalar Chain

The chain of command, sometimes called the scalar chain, is the formal line of authority,
communication, and responsibility within an organization.

The chain of command is usually depicted on an organizational chart, which identifies the
superior and subordinate relationships in the organizational structure.

Or it is the line of authority from top to bottom of the organization. This chain implements the
unity-of-command principle and allows the orderly flow of information.

Under the unity of command principle, the instructions flow downward along the chain of
command and accountability flows upward.

More clear-cut the chain of command, the more effective the decision-making process and the
greater the efficiency.

10. Order

A place for everything and everything in its place’ the right man in the right place. There should
be an Order for material/things and people in the organization.

Order for things is called Material Order and order for people is called ‘Social Order’. Material
Order refers to “a place for everything and everything in its place.”

Social Order refers to the selection of the “right man in the right place”.

There must be an orderly placement of the resources such as Men and Women, Money,
Materials, etc. Human and material resources must be in the right place at the right time.
Misplacement will lead to misuse and disorder.

11. Equity

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While dealing with the employees a manager should use kindliness and justice towards
employees equally. Equity is a combination of kindness and justice.

It creates loyalty and devotion in the employees toward the organization. The equity principle
suggests that the managers must be kind as well as equally fair to the subordinates.

12. Stability of Tenure of Personnel

Although it could take a lot of time, Employees need to be given fair enough time to settle into
their jobs. An employee needs time to learn his job and to become efficient.

The employees should have job security because instability leads to inefficiency. Successful
firms usually had a stable group of employees.

13. Initiative

Without limits of authority and discipline, all levels of staff should be encouraged to show
initiative. Management should encourage initiative.

That is, they should encourage the employees to make their own plans and to execute these
plans. This is because an initiative gives satisfaction to the employees and brings success to the
organization.

It allows the subordinates to think out a plan and do what it takes to make it happen.

14. Esprit De Corps

Esprit de Corps means “Team Spirit”. Therefore, the management should create unity, co-
operation, and team-spirit among the employees.

They should avoid dividing and rule policy. Harmony, cohesion among personnel. It’s a great
source of strength in the organization. It is a quality in every successful business.

These principles are guidelines for every management function. The manager must act according
to the 14 principles of management; in order to reach the goal and create a surplus.

These 14 management principles of Henri Fayol are universally accepted. they work as a
guideline for managers to do their job according to their responsibility.

3) Bureaucratic Management.

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Max Weber (1864-1920) took a more sociological approach when creating his bureaucratic
management theory. Weber’s ideas revolve around the importance of structuring your business
in a hierarchical manner with clear rules and roles.

According to Weber, the ideal business structure (or bureaucratic system) is based on:
 Clear division of labor
 Separation of the owner’s personal and organizational assets
 Hierarchical chain of command
 Accurate record keeping
 Hiring and promotion based on qualifications and performance, not personal relationships
 Consistent regulations

Many today see Bureaucratic Management as an impersonal style that can become overwhelmed
by rules and formalities. That said, it can be very useful for new businesses that are in need of
standards, procedures, and structure.

Max Weber's Bureaucratic Management

Max Weber (1864-1920) was a German sociologist who developed the bureaucratic management
theory, which focuses on structuring organizations in a hierarchical fashion with clear rules of
governance.

Weber's principles for creating an ideal bureaucratic system include a clear division of labor, a
hierarchical chain of command, separation between the personal and organizational assets of the
owner, meticulous record keeping and documentation, strict and consistent regulations and rules,
and the selection and promotion of employees based on qualifications and not personal
relationships or personalities.

Although Weber recognized that bureaucracy was a threat to individual freedoms, he still saw it
as the most efficient and rational way of establishing organizations. Today, the bureaucracy
management approach is often perceived as impersonal and overwhelmed by red tape, but it
played a key role in universalizing the establishment of standards and procedures, which are at
the core of most modern organizations.

4) Scientific Management
Toward the end of the 19th century, Frederick Taylor (1856-1915) conducted controlled
experiments to optimize his workers’ productivity. The results of these experiments helped him
form the belief that the scientific method — not judgment or discretion — is the best determiner
of efficiency in the workplace.

Scientific Management promotes standardization, specialization, assignment based on ability,

and extensive training and supervision. Only through those practices can a business achieve
efficiency and productivity. This management theory attempts to find the optimal way to
complete a given task, often at the expense of the employees’ humanity.

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The theory as a whole isn’t used much anymore, but parts of it — workplace efficiency, training,
and cooperation — are the foundation of some of the most successful businesses on the planet.

Frederick Taylor's Scientific Management

Frederick W. Taylor (1856-1915) was among the first to study worker productivity and how best
to optimize it. Taylor, who had a background in mechanical engineering, conducted controlled
experiments that led him to develop four principles of scientific management known as
"Taylorism." These principles recommend that the scientific method be used to determine the
most efficient way to perform a task in the workplace instead of simply relying on the judgment
or personal discretion of workers.

Taylor promoted standardization and specialization by suggesting that workplace tasks be broken
down into a sequence of smaller steps. He concluded that managers should assign workers to a
job that best matched their ability, train them thoroughly and supervise them to ensure that they
worked efficiently.

However, Taylor's focus on achieving workplace efficiency ignored the humanity of the
individual in favor of finding the optimal way to complete any given task. Taylor's theory in its
purest form isn't practiced much today; however, it did shine a light on workplace efficiency, the
value of training procedures, and the need for cooperation between workers and managers.

How did current management theories develop?

People have been managing work for hundreds of years, and we can trace formal management
ideas to the 1700s. But the most significant developments in management theory emerged in the
20th century. We owe much of our understanding of managerial practices to the many theorists
of this period, who tried to understand how best to conduct business.

Historical Perspective

One of the earliest of these theorists was Frederick Winslow Taylor. He started the Scientific
Management movement, and he and his associates were the first people to study the work
process scientifically. They studied how work was performed, and they looked at how this
affected worker productivity. Taylor's philosophy focused on the belief that making people work
as hard as they could was not as efficient as optimizing the way the work was done.

In 1909, Taylor published "The Principles of Scientific Management." In this, he proposed that
by optimizing and simplifying jobs, productivity would increase. He also advanced the idea that
workers and managers needed to cooperate with one another. This was very different from the
way work was typically done in businesses beforehand. A factory manager at that time had very
little contact with the workers, and he left them on their own to produce the necessary product.

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There was no standardization, and a worker's main motivation was often continued employment,
so there was no incentive to work as quickly or as efficiently as possible.

Taylor believed that all workers were motivated by money, so he promoted the idea of "a fair
day's pay for a fair day's work." In other words, if a worker didn't achieve enough in a day, he
didn't deserve to be paid as much as another worker who was highly productive.

With a background in mechanical engineering, Taylor was very interested in efficiency. While
advancing his career at a U.S. steel manufacturer, he designed workplace experiments to
determine optimal performance levels. In one, he experimented with shovel design until he had a
design that would allow workers to shovel for several hours straight. With bricklayers, he
experimented with the various motions required and developed an efficient way to lay bricks.
And he applied the scientific method to study the optimal way to do any type of workplace task.
As such, he found that by calculating the time needed for the various elements of a task, he could
develop the "best" way to complete that task.

These "time and motion" studies also led Taylor to conclude that certain people could work more
efficiently than others. These were the people whom managers should seek to hire where
possible. Therefore, selecting the right people for the job was another important part of
workplace efficiency. Taking what he learned from these workplace experiments, Taylor
developed four principles of scientific management. These principles are also known simply as
"Taylorism".

Four Principles of Scientific Management

Taylor's four principles are as follows:

 Replace working by "rule of thumb," or simple habit and common sense, and instead use
the scientific method to study work and determine the most efficient way to perform
specific tasks.

 Rather than simply assign workers to just any job, match workers to their jobs based on
capability and motivation, and train them to work at maximum efficiency.

 Monitor worker performance, and provide instructions and supervision to ensure that
they're using the most efficient ways of working.

 Allocate the work between managers and workers so that the managers spend their time
planning and training, allowing the workers to perform their tasks efficiently.

Critiques of Taylorism

Taylor's Scientific Management Theory promotes the idea that there is "one right way" to do
something. As such, it is at odds with current approaches such as MBO (Management By

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Objectives), Continuous Improvement initiatives, BPR (Business Process Reengineering),
and other tools like them. These promote individual responsibility, and seek to push decision
making through all levels of the organization.

The idea here is that workers are given as much autonomy as practically possible, so that they
can use the most appropriate approaches for the situation at hand. (Reflect here on your own
experience – are you happier and more motivated when you're following tightly controlled
procedures, or when you're working using your own judgment?) What's more, front line workers
need to show this sort of flexibility in a rapidly-changing environment. Rigid, rules-driven
organizations really struggle to adapt in these situations.

Teamwork is another area where pure Taylorism is in opposition to current practice. Essentially,
Taylorism breaks tasks down into tiny steps, and focuses on how each person can do his or her
specific series of steps best. Modern methodologies prefer to examine work systems more
holistically in order to evaluate efficiency and maximize productivity. The extreme specialization
that Taylorism promotes is contrary to modern ideals of how to provide a motivating and
satisfying workplace.

Where Taylorism separates manual from mental work, modern productivity enhancement
practices seek to incorporate worker's ideas, experience and knowledge into best practice.
Scientific management in its pure form focuses too much on the mechanics, and fails to value the
people side of work, whereby motivation and workplace satisfaction are key elements in an
efficient and productive organization.

Key Points
The Principles of Taylor's Scientific Management Theory became widely practiced, and the
resulting cooperation between workers and managers eventually developed into the teamwork
we enjoy today.

While Taylorism in a pure sense isn't practiced much today, scientific management did provide
many significant contributions to the advancement of management practice. It introduced
systematic selection and training procedures, it provided a way to study workplace efficiency,
and it encouraged the idea of systematic organizational design.

5) Theories X And Y- Douglas McGregor's Theories X and Y

Douglas McGregor (1906-1964) was an American social psychologist who introduced his X and
Y theories in his 1960 book "The Human Side of Enterprise." He concluded that there are two
fundamentally different styles of management that are guided by managers' perceptions of their
team members' motivations. Theory X is authoritarian in nature and is used by managers who
assume that employees are apathetic or dislike their work. Theory Y is a participative
management style used by managers who believe that workers are self-motivated, responsible
and committed to taking ownership of their work.

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While Theory X leads to micromanaging, Theory Y gives rise to a more collaborative and
decentralized workplace. Theory Y, favored by McGregor, tends to be adopted by smaller
businesses and startups where employees at all levels are part of the decision-making process and
where creativity is encouraged. Large organizations or those with many staff members may rely
more on Theory X in order to keep everyone focused on meeting organizational goals.

In 1960, social psychologist Douglas McGregor (1906-1964) published his book The Human
Side Of Enterprise. In it, he outlined two drastically different styles of management (theories X
and Y). Each style is guided by a manager’s perceptions of their employees’ motivations.

Theory X posits that employees are apathetic or dislike their work. Managers who adhere to.
Theory X are often authoritarian and will micromanage everything because they don’t trust their
employees.

Theory Y posits that employees are self-motivated, responsible, and want to take ownership of
their work. Managers who adhere to Theory Y include their employees in the decision-making
process and encourage creativity at all levels.

In practice, small businesses tend to operate on Theory Y while large businesses tend to operate
on Theory X.

6) Human Relations Theory

In the first quarter of the 20th century, psychologist Elton Mayo (1880-1949) was tasked with
improving productivity among dissatisfied employees. Mayo attempted to improve worker
satisfaction by changing environmental conditions like lighting, temperature, and break time. All
of those changes had a positive effect.

Mayo then tried changing variables that he perceived would have a negative effect on
satisfaction, like the length of the workday and quotas (he increased both). What he observed
was that regardless of the change — good or bad — worker satisfaction always increased.

This led Mayo to conclude that performance was a result of the attention the researchers paid to
the workers. In other words, the attention made the workers feel valuable.

These findings gave rise to Mayo’s Human Relations Theory, in which he states that employees
are more motivated by social factors — like personal attention or being part of a group — than
environmental factors, such as money and working conditions.

Elton Mayo's Human Relations theory

Elton Mayo (1880-1949) was an Australian born psychologist and Harvard researcher who
helped lay the foundation for the human relations movement. Mayo conducted experiments
aimed at improving productivity among dissatisfied employees at the Hawthorne plant in
Chicago in the 1920s.

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He changed working conditions, including lighting, temperature, break times, and the length of
the workday but observed that regardless of the change, there was always an increase in
productivity. This led Mayo and his team to conclude that increases in workers' performance
weren't due to changes in their environment but a result of the researchers paying attention to
them and of feeling valued as part of a unified group collaborating in the study.

Mayo's work led to the recognition of the importance of psychological and social factors in
creating productive organizations. This gave rise to the Human Relations Theory, which
concluded that employees are more motivated by factors, such as being part of a group and
personal attention, than money or even working conditions. This people-oriented management
approach requires managers to acknowledge the complexity of human nature and the value of
social ties in the workplace.

Although the validity of the Hawthorne experiments has been questioned in recent years, Mayo's
contributions to management theory are the underpinning of today's focus on group dynamics
and the use of team-building efforts to strengthen work cultures.

7) Classical Management

Classical Management Theory is predicated on the idea that employees only have physical needs.
Because employees can satisfy these physical needs with money, Classical Management Theory
focuses solely on the economics of organizing workers.

Due to this narrow view of the workforce, Classical Management Theory ignores the personal
and social needs that influence employees’ job satisfaction. As a result, Classical Management

Theory advocates seven key principles:

 Profit maximization
 Labor specialization
 Centralized leadership
 Streamlined operations
 Emphasis on productivity
 Single-person or select-few decision making
 Priority to the bottom line

When these seven principles are put into practice, they create an “ideal” workplace based on a
hierarchical structure, employee specialization, and financial rewards.

Control of the business is held by a select few who exercise exclusive control over the decisions
and direction the company takes. Underneath those select few, middle managers govern the day-
to-day activities of the employees who are at the bottom of the pecking order.

And all of this revolves around the idea that employees will work harder and be more productive
if they are rewarded in larger and larger increments (via wages or benefits).

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While this may not sound like an “ideal” management theory by today’s standards, it worked
well for many years prior to the early 20th century. And even though the system isn’t applied
lock-stock-and-barrel as it once was, there are several strong points that managers can use in the
21st century. They include:
 Clear managerial structure
 Division of labor
 Clear definition of employee roles
These three principles, combined with other management theories on this list, can improve the
way your employees — and your business — works in this modern age.

8) Contingency Management
Fred Fiedler and others conceived of Contingency Management Theory in the 1950s and 60s.
Fiedler based his theories on the idea that effective leadership was directly related to the traits the
leader displayed in any given situation.

From that idea sprang the belief that there exist a set of traits that are effective for every situation
and that different situations demand different leadership traits. As such, leaders must be flexible
and adapt to change as the market, the business, and the team demands.

Fiedler then extended that concept from an individual, management focus to a much broader
organization-focused theory. Fiedler’s theory suggests that there is no one management approach
that suits every situation and every organization.

Instead, three general variables determine business management and structure. They are:
 The size of the organization
 The technology employed
 The leadership at all levels of the business
What that means for the individual manager who subscribes to Contingency Management Theory
is that they must be able to identify the particular management style suitable for every given
situation. They must also be willing and able to apply that management style quickly and
effectively whenever necessary.

In a larger sense, businesses and managers who adhere to Contingency Management Theory —
whether intentionally or unintentionally — will be concerned, above all else, with maintaining
the alignment of their team and achieving a good fit in all projects and situations.
Ultimately, according to Contingency Management Theory, there is no one best way to do
things. The way a business chooses to organize will depend on the environment in which they
operate.

9) Modern Management

Modern Management Theory developed as a direct response to Classical Management Theory.

Modern-day businesses are faced with navigating rapid change and complexities that seem to
grow exponentially overnight.

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Technology is both the cause of and the solution for this dilemma. As such, businesses that
incorporate the Modern Management Theory into their operations seek to meld technology and,
to some extent, mathematical analysis with the human and traditional elements of their
organization.

This combination of scientific and social variables creates a dual-pronged approach to

management, organization, and decision-making. Modern Management Theory emphasizes:
 Using mathematical techniques to analyze and understand the relationship between
managers and employees.

 That employees don’t work for money alone (in contrast to Classical Management
Theory). Instead, they work for happiness, satisfaction, and a desired lifestyle.

Modern Management Theory embraces the idea that people are complex. Their needs vary over
time, and they possess a range of talents and skills that the business can develop through on-the-
job training and other programs.

At the same time, management can use mathematical techniques such as statistical, cost,
revenue, and return-on-investment (ROI) analysis to make rational decisions unaffected by
emotion.

Though Modern Management Theory isn’t perfect by itself, it does, like Classical Management
Theory, offer some useful points that you can combine with other theories to create a structure
that is just right for your business.

10) Quantitative Management

Quantitative Management Theory is an offshoot of Modern Management Theory developed

during World War II in response to managerial efficiency.

Quantitative Management Theory brought together experts from scientific disciplines to address
staffing, materials, logistics, and systems issues for the U.S. military. The clear-cut, numbers-
oriented approach to management (which applies to business as well) helped decision makers
calculate the risks, benefits, and drawbacks of specific actions.

This shift toward pure logic, science, and math is tempered by the belief that these mathematical
results should be used to support, not replace, experienced managerial judgment.

11) Organizations as Learning Systems

Organizations As Learning Systems Management Theory is fairly new when compared to many
of the other theories on this list. Organizations As Learning Systems Management Theory —
sometimes called Integral or Holistic Management Theory — developed as a postmodern
response to many of the older management theories that are still in use today.

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It starts with the idea that the business is a system that is built on a succession of subsystems. In
order for the business to run smoothly and efficiently, each subsystem must also work smoothly
and efficiently within itself, but also with the other subsystems around it.

In this theory, managers are responsible for coordinating the cooperation necessary to ensure the
larger “organism” continues to function successfully.

Learning and change are major components of this theory, and learning is encouraged and made
available to everyone — not just middle and upper-management. The emphasis in this theory is
on teamwork, participation, information sharing, and individual empowerment.

BEHAVIORAL THEORIES:

Behavioral Theories: the history of psychology is the history of a field struggling to define itself
as a separate and unique scientific discipline. (Hockenbury, 3) While the roots of psychology
date back to the philosophers of Ancient Greece, it wasn’t until 1879, when German psychologist
Wilhelm Wundt created the first laboratory completely devoted to the study of psychology.
(Kleinman, 7)

The history (of the study of behavior) is built upon the theories and discoveries of successive
generations, with many of the older theories remaining relevant to contemporary psychologists.
The behaviorists felt that it was impossible to study mental processes objectively, but found it
relatively easy to observe and measure behavior. (Collin, 10) Editor’s note - behaviorism,
cognitivism, and psychoanalytic theory are considered ‘grand theories of psychology.’ This
means they are comprehensive theories which have traditionally inspired and directed
psychologists’ thinking. Psychology's grand theories also refer to 'psychology schools' and
'psychology therapies’ and behavioral theories are also referred to as ‘psychology theories.’

Behaviorism: grand theory of human development that studies observable behavior. Describes
the laws and processes by which behavior is learned. (Berger, 38) School of psychology and
theoretical viewpoint that emphasizes the study of observable behaviors, especially as they
pertain to the process of "learning." Rejected the emphasis on “consciousness” promoted by
structuralism and functionalism. Also flatly rejected ”Freudian” notions about unconscious
influences. (Hockenbury, 7-8) Insists that only observable behavior should form the object of
study, as this can be witnessed, described, and measured in objective terms. (Collin, 340)
Editor’s note - developed by John Watson and later championed by B.F. Skinner. Also referred
to as 'behavior theory.'

Behaviorist: a person who believes in behaviorism. (Marshall, 11/3/2011)

Cognitivism: grand theory of human development that focuses on changes in how people think
over time. According to this theory, our thoughts shape our attitudes, beliefs, and behaviors.
(Berger, 43) Focuses on the mental processes involved in learning and knowing, and how the
mind actively organizes experiences. (Collin, 340) Emphasizes the importance of "observational

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learning," conscious cognitive processes, social experiences, “self-efficacy” beliefs, and
“reciprocal determinism.” (Hockenbury, 416) Editor's note - developed by Albert Bandura. Also
referred to as ‘cognitive theory,' ‘cognitive objectivism’ and 'social cognitivism.’

Cognitivist: a person who believes in cognitivism. (Marshall, 11/3/2011) Also referred to as

‘cognitivist objectivist.’

Reciprocal Determinism: a model that explains human functioning and personality as caused by
the interaction of behavior, cognitive, and environmental factors. (Hockenbury, 416)

Emergent Theories of Psychology: theories that bring together information from many
disciplines in addition to psychology and that are becoming comprehensive and systematic in
their interpretations of development. (Berger, 34)

Evolutionary Psychology: the application of principles of "evolution," including "natural

selection," to explain psychological processes and phenomena. (Hockenbury, 11) Some cognitive
psychologists have claimed that … we inherit certain psychological characteristics they are also
subject to the same sort of natural selection as our physical characteristics. (Collin, 211)

Functionalism: the view that mental processes and behaviors of living organisms help them
adapt to their environments. (Schunk, 22) Concerned with investigating the adaptive functions of
the mind in relation to its environment. (Collin, 341) Early school of psychology that emphasized
studying the purpose, or function, of behavior and mental experiences. Functionalists also
examined how psychology could be applied to areas such as "education," child rearing, and the
work environment. (Hockenbury, 5) Editor's note - developed by William James.

Humanistic Psychology: school of psychology and theoretical viewpoint that emphasizes each
person’s unique potential for psychological growth and self-direction. (Hockenbury, 9) Approach
that emphasizes the importance of free will and self-actualization in determining good mental
health. (Collin, 341) View that emphasizes the importance of psychological and “cognitive"
factors in motivation, especially the notion that people are motivated to realize their personal
potential. (Hockenbury, 302) A paradigm/philosophy/pedagogical approach that believes
learning is viewed as a personal act to fulfill one's potential. Key proponents include Abraham
Maslow, Carl Rogers, Malcolm Knowles. (LearningTheories, 17) Editor's note - developed by
Craig Rogers.

Conditional Positive Regard: the sense that you will be valued and loved only if you behave in
a way that is acceptable to to others. (Hockenbury, 414) Also referred to as ‘conditional love.’

Unconditional Positive Regard: the sense that you will be valued and loved even if you don’t
conform to the standards and expectations of others. (Hockenbury, 414) Also referred to as
‘unconditional love.’

Jung’s Theory: people are motivated by a more general ‘psychological energy’ that pushes them
to achieve psychological growth, self-realization, ‘psychic wholeness’ and harmony.
(Hockenbury, 407) Jung believed every person’s purpose in life was to have his or her conscious

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and unconscious become fully integrated, so that they could become their ‘true self.’ (Kleinman,
134) Editor's note - developed by Carl Jung.

Archetypes: in Jung’s theory, the inherited mental images of universal human instincts, themes,
and preoccupations that are the main components of the collective unconscious. (Hockenbury,
408) Jung believed that the archetypes are layers of inherited memory, and they constitute the
entirety of the human experience. (Collin, 105)

Collective Unconscious: in Jung’s theory, the hypothesized part of the unconscious mind that is
inherited from previous generations and that contains universally shared ancestral experiences
and ideas. (Hockenbury, 407)

Extroverts: personality type that turns its attention toward the outside world. (Hockenbury, 408)

Introverts: personality type that focuses attention inward. (Hockenbury, 408)

Rationalism: the idea that knowledge derives from reason without recourse to the senses. Can be
traced to Plato, who distinguished knowledge acquired via the senses, from that gained by
reason. (Schunk, 5)

Structuralism: early school of psychology that emphasized studying the most basic components,
or ‘structures,’ of “conscious” experiences. Held that even our most complex conscious
experiences could be broken down into elemental structures, or component parts, of sensations
and feelings. In the end, the methods and goals of structuralism were simply too limited to
accommodate the rapidly expanding interests of the field of psychology. (Hockenbury, 4-5)
Editor's note - developed by Edward Titchener.

Psychoanalytic Theory: a grand theory of human development that holds that irrational,
unconscious drives and motives, often originating in childhood, underlie human behavior.
(Berger, 35) Developed by Sigmund Freud. Freud believed that human behavior was motivated
by unconscious conflicts that were almost always sexual or aggressive in nature. Also form of
psychotherapy that emphasizes the role of unconscious factors in personality and behavior.
(Hockenbury, 7) Also referred to as ‘contemporary psychoanalysis.’

Dream Analysis: the content of dreams is analyzed for disguised or symbolic wishes, meanings,
and motivations. (Hockenbury, 551) Also referred to as ‘dream interpretation.'

Eros: in Freud’s theory, the self-preservation or life instinct, reflected in the expression of basic
biological urges that perpetuate the existence of the individual and the species. (Hockenbury,
401)

Free Association: therapeutic mechanism that emphasizes the resolution of unconscious

conflicts. Requires the patient to rapidly respond to a list of trigger words with the first word that
comes to mind. (Bamford, 11/1/10)

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Freudian Defense Mechanisms: the denials, repressions, confabulations (imaginary
experiences) and other forms of self-delusion that govern our daily lives. (Ramachandran, 134)
Also referred to as ‘ego defense mechanisms.’

Displacement: emotional impulses redirected to a substitute object or person, usually one less
threatening or dangerous. (Hockenbury, 403)

Sublimation: (re-channeling) sexual urges into nonsexual activities. Does not take place on a
single occasion. Demands a continuous expenditure of effort. (Hockenbury, 403)

Projection: the attribution of one’s own unacceptable urges or qualities to others. (Hockenbury,
403)

Rationalization: justifying one’s actions or feelings with socially acceptable explanations rather
than consciously acknowledging one’s true motives or desires. (Hockenbury, 403)

Reaction Formation: thinking or behaving in a way that is the extreme opposite of urges or
impulses (perceived to be unacceptable). (Hockenbury, 403) Editor's note - occurs when a person
feels an urge to do or say something and then actually does or says something that is effectively
the opposite of what they really want.

Regression: retreating to a behavior pattern characteristic of an earlier stage of development.

(Hockenbury, 403)

Repression: the exclusion from consciousness of anxiety-producing thoughts, feelings, or

impulses. Pushed out of conscious awareness into the unconscious. Most fundamental defense
mechanism. (Hockenbury, 403)

Freudian Personality Structures: according to Freud, 'psychological energy' evolves to form

three basic structures of personality - the "id," the "ego," and the "superego." (Hockenbury, 401)

Ego: in Freud’s theory, the ‘partly conscious’ rational component of personality that regulates
thoughts and behavior and is most in touch with the demands of the external world.
(Hockenbury, 401)

Id: in Freud’s theory, the completely unconscious, irrational component of personality that seeks
immediate satisfaction of instinctual urges and dies; ruled by the “pleasure principal.”
(Hockenbury, 401)

Superego: in Freud’s theory, the partly conscious, self-evaluative, moralistic component of

personality that is formed through the internalization of parental and societal rules. (Hockenbury,
402)

Freudian Psychosexual Stages: in Freud’s theory, age-developmental periods in which the

child’s sexual urges are focused on different areas of the body and are expressed through the
activities associated with those areas. Includes the oral (birth to 1 year), anal (ages 1 to 3), phallic
(3 to 6), latency (7 to 11), and genital (adolescence) stages. (Hockenbury, 404)

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Libido: in Freud’s theory, the psychological and emotional ‘energy’ associated with expressions
of sexuality. (Hockenbury, 401) Also referred to as 'sex drive.'

Oedipus Complex: in Freud’s theory, a child’s unconscious sexual desire for the opposite-sex
parent, usually accompanied by hostile feelings toward the same-sex parent. (Hockenbury, 404)

Pleasure Principle: in Freud’s theory, the motive to obtain pleasure and avoid tension or
discomfort; the most fundamental human motive and the guiding principle of the id.
(Hockenbury, 401)

Reality Principle: in Freud’s theory, the capacity to accommodate external demands by

postponing gratification until the appropriate time or circumstances exist. (Hockenbury, 401)

Resistance: a patient’s unconscious attempts to block the revelation of repressed memories

and conflicts. (Hockenbury, 551) The patient resists recovery and deliberately undermines
the therapeutic process. (Bamford, 11/1/10)

Thanatos: in Freud’s theory, the death instinct, reflected in aggressive, destructive, and self-
destructive actions. (Hockenbury, 401)

Transference: the process by which emotions and desires originally associated with a
significant person in the patient’s life, such as a parent, are unconsciously transferred to the
psychoanalyst. (Hockenbury, 551)

BEHAVIORAL THEORY OF LEADERSHIP

Behavioral Theory of Leadership is a leadership theory that considers the observable actions and
reactions of leaders and followers in a given situation. Behavioral theories focus on how leaders
behave and assume that leaders can be made, rather than born, and successful leadership is based
on definable, learnable behavior. Behavioral theories of leadership are classified as such because
they focus on the study of specific behaviors of a leader. For behavioral theorists, a leader
behavior is the best predictor of his leadership influences and as a result, is the best determinant
of his or her leadership success.

These theories concentrate on what leaders actually do rather than on their qualities. Different
patterns of behavior are observed and categorized as 'styles of leadership'. This area has
probably attracted the most attention from practicing managers.

Overview of Behavioral Theory of Leadership:

Behavioral Theory of leadership is a big leap from Trait Theory, in that it assumes that
leadership capability can be learned, rather than being inherent. This theory is based on the
principle that behaviors can be conditioned in a manner that one can have a specific response

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to specific stimuli. Rather than seeking inborn traits this theory looks at what leaders actually
do by studying their behaviors in response to different situations, assessing leadership
success by studying their actions, and then correlating significant behaviors with success.

The practical application of the theory is that leader’s behavior affects their performance and
different leadership behaviors could be appropriate at different times. The best leaders are those
who have the adaptability to flex their behavioral style and choose the right style suitable for
each situation.

According to this theory, people can learn to become leaders through teaching and
observation and certain behavioral patterns may be identified as leadership styles.

Advantages of Behavioral Theory of Leadership:

Behavioral theory promotes the value of leadership styles with an emphasis on concern for
people and collaboration. It promotes participative decision making and team development by
supporting individual needs and aligning individual and group objectives.

It helps managers evaluate and understand how their behavioral style as a manager affects
their relationship with the team and promotes commitment and contribution towards
organizational goals.

This theory helps managers find the right balance between different styles of
leadership, and helps them decide how to behave as a leader, depending on concerns for people
and for productivity.

Criticism / Arguments against - Behavioral Theory of Leadership:

As there were inherent limitations with the Trait approach to leadership, when early researchers
ran out of steam in their search for traits, they turned to what leaders did, how they behaved,
and came with behavioral theory of leadership. This became the dominant way of
approaching leadership within organizations in the 1950s and early 1960s but this theory too had
its own limitations.

Behavioral Theory of Leadership proposes leadership styles but a specific leadership style may
not be best in all circumstances. When researchers really got to work on this it didn’t seem
to validate their assumptions. While behavioral theories may help managers develop particular
leadership behaviors but they provide little guidance as to what constitutes effective
leadership in different situations.

There were lots of differences and inconsistencies between studies. It was difficult to
say which style of leadership was significant in enabling one group to work better than another.

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The styles that leaders can adopt are far more affected by those they are working with, and the
environment they are operating within than had been originally thought. Most researchers today
conclude that no one leadership style is right for every manager under all circumstances.

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 TOPIC 3:

TYPES OF MANAGEMENT

1). Management by Objectives (MBO)

Management by Objectives (MBO) is a strategic approach to enhance the performance of an

organization. It is a process where the goals of the organization are defined and conveyed by the
management to the members of the organization with the intention to achieve each objective.

An important step in the MBO approach is the monitoring and evaluation of the performance and
progress of each employee against the established objectives. Ideally, if the employees
themselves are involved in setting goals and deciding their course of action, they are more likely
to fulfill their obligations.

Management by objectives (MBO) is a strategic business model designed to improve the

performance of an organization. It is a strategy with clearly defined objectives which is agreed
by both the management and the employees.

MBO helps managers to systemically update and delegate tasks to employees with mutual
understanding and keeping the goals aligned with the organizational mission. A definite set of
task is set for each employee and also their work is monitored. The strategy is quite simple. It to
plan, design, and execute objectives with transparency and complete it at a definite time frame.

A critical part of MBO is also to check employee performance through monitoring the
performance. It is also widely practiced as an employee appraisal method for promotion and
also giving other monetary and non-monetary bonuses.

The term 'Management By Objectives' was first termed by management guru Peter Drucker in
his 1954 book, The Practice of Management.

MBO follows the mnemonic S.M.A.R.T while setting objectives. ‘SMART’ objectives are-

 Specific - Target a specific area for improvement.

 Measurable- Quantify or suggest an indicator of progress.
 Assignable - Specify who will do it.
 Realistic - State what results can realistically be achieved, given available resources.
 Time-bound - Specify when the result(s) can be achieved.

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Steps in Management by Objectives Process

1. Define organization goals

Setting objectives is not only critical to the success of any company, but it also serves a variety
of purposes. It needs to include several different types of managers in setting goals. The
objectives set by the supervisors are provisional, based on an interpretation and evaluation of
what the company can and should achieve within a specified time.

2. Define employee objectives

Once the employees are briefed about the general objectives, plan, and the strategies to follow,
the managers can start working with their subordinates on establishing their personal objectives.
This will be a one-on-one discussion where the subordinates will let the managers know about
their targets and which goals they can accomplish within a specific time and with what resources.
They can then share some tentative thoughts about which goals the organization or department
can find feasible.

3. Continuous monitoring performance and progress

Though the management by objectives approach is necessary for increasing the effectiveness of
managers, it is equally essential for monitoring the performance and progress of each employee
in the organization.

4. Performance evaluation

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Within the MBO framework, the performance review is achieved by the participation of the
managers concerned.

5. Providing feedback

In the management by objectives approach, the most essential step is the continuous feedback on
the results and objectives, as it enables the employees to track and make corrections to their
actions. The ongoing feedback is complemented by frequent formal evaluation meetings in
which superiors and subordinates may discuss progress towards objectives, leading to more
feedback.

6. Performance appraisal

Performance reviews are a routine review of the success of employees within MBO
organizations.

Benefits of Management by Objectives

 Management by objectives helps employees appreciate their on-the-job roles and

responsibilities.
 The Key Result Areas (KRAs) planned are specific to each employee, depending
on their interest, educational qualification, and specialization.
 The MBO approach usually results in better teamwork and communication.
 It provides the employees with a clear understanding of what is expected of them.
The supervisors set goals for every member of the team, and every employee is
provided with a list of unique tasks.
 Every employee is assigned unique goals. Hence, each employee feels
indispensable to the organization and eventually develops a sense of loyalty to
the organization.
 Managers help ensure that subordinates’ goals are related to the objectives of the
organization.

Limitations of Management by Objectives

 Management by objectives often ignores the organization’s existing ethos and working
conditions.
 More emphasis is given on goals and targets. The managers put constant pressure on the
employees to accomplish their goals and forget about the use of MBO for involvement,
willingness to contribute, and growth of management.
 The managers sometimes over-emphasize the target setting, as compared to operational
issues, as a generator of success.
 The MBO approach does not emphasize the significance of the context wherein the goals
are set. The context encompasses everything from resource availability and efficiency to
relative buy-in from the leadership and stakeholders.

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  Finally, there is a tendency for many managers to see management by objectives as a
total system that can handle all management issues once installed. The overdependence
may impose problems on the MBO system that it is not prepared to tackle, and that
frustrates any potentially positive effects on the issues it is supposed to deal with.

2). MANAGEMENT BY WALKING AROUND

Management by Walking Around. MBWA basically refers to managers spending some part of
their time listening to problems and ideas of their staff, while wandering around an office or
plant.

Management by Walking Around is a term coined by management guru Tom Peters. Apparently,
from his study of successful companies and their practices, Tom Peters noticed that good
managers tend to communicate a lot better with their team. And they do that in informal ways,
like just hanging around in the office and chatting with them, rather than having formal
interaction sessions in their cabins or boardrooms. Sam Walton, the founder of the largest
company in the world, Walmart, was a great exponent of this practice. He believed in visiting as
many of his stores as many times as possible and talking to frontline staff. The idea of this
practice is to listen. You must also respond to ideas or problems voiced and take effective action
about them.

The history of the method

Before we examine the definition of the theory, it’s auspicious to consider its history. After all,
walking is part of the function of being a human, so how did it become a noticeable part of
management? Although the concept of having management walk amongst subordinates and talk
to them face-to-face, had been used by managers and organizations for decades, the term
‘Management by Walking Around’ was popularized in the 1980s.

In 1982, management consultants Tom Peters and Robert H. Waterman proposed the concept in
their book In Search of Excellence: Lessons from America’s Best Run Companies. In the book,
Peters and Waterman examined the successful companies, realizing a common nominator
between the most successful. According to them, the successful companies had CEOs and
managers who spent much of their time in the field instead of being confined to their office.
Peters and Waterman noticed these managers were more aware of the operations and in general,
had better ability to solve problems. Peters went on to write a book A Passion for Excellence in
which he continued to assert the style as the core element of excellent leadership.

The idea gained further attention when William Hewlett and David Packard, the founders
of Hewlett Packard, mentioned the theory to be part of the “HP Way”. The lessons learned from
the technology company were, in fact, examined and presented by Peters and Waterman.

The up-close-and-personal style of management became a popular option for organizations and
other big companies soon followed the teachings of Peter and Waterman. Disney has
implemented management by walking, having its managers work shifts along with subordinates.

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 Apple’s Steve Jobs was another big believer in the style, putting himself in situations where he
had to deal directly with the customers.

THE KEY COMPONENTS OF MBWA

 Managers listen to people – You can’t just walk around and talk, but you have to
listen to what subordinates are telling you. As a manager, you have to become good at reading
the subtle signs people are telling you. Your subordinates might not feel comfortable being very
honest with you, especially right at the start of implementing the new method.

 Managers use discussion as an opportunity to transmit the company’s values – The

walks and discussions provide you the possibility to strengthen the subordinate’s understanding
of the company’s values and vision.

 Managers are willing to provide on-the-spot assistance and support – If your

subordinates require help, you must be willing to lead by example and provide support on the
spot. The method has a sense of urgency to it and it isn’t about “looking into it”, but getting
problems fixed quickly.

THE STRENGTHS AND WEAKNESSES OF THE METHOD

How did management by walking around become such a popular technique? Much of its
popularity is down to the positive benefits companies and management teams have experienced
as a result of the strategy. While the benefits are numerous, the strategy doesn’t come without a
few pitfalls.

THE BENEFITS OF MBWA

There are three core benefits to using the method as a management strategy: improvements in
communication and employee-superior relationships, effective operational focus, and enhanced
efficiency. The table below outlines the benefits in more detail.

a) Creating stronger communication channels and improving employee-

superior relationships

 The strategy forces the management to improve the way it communicates

with the subordinates. It emphasizes the importance of good communication
throughout the organization. The managers teach the practice of listening
effectively and talking efficiently to the subordinates.

 The enhanced level of communication helps create an environment of

openness. The discussions are based on positive exchange of ideas and not

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 enforcement. The managers are not enforcing communication, but make it
part of the fabric of the organization.

 The relaxed and regular communication has been shown to improve

relationships and make subordinates feel more motivated about their work.

 The above breeds understanding within the organization, as people feel

listened to. Feeling like you are part of the organization and valued by your
managers can help boost employee motivation and loyalty. If you are treated
well by your organization, you most likely won’t want to leave elsewhere in
the immediate future.

b) Helping everyone focus on the correct operational aspects with work

 The manager meets subordinates in the actual work situation and

environment and therefore, gets a first-hand experience of what is going on.
This allows him or her to have a better sense of the things that are happening
around him and it will result it enhanced understanding of the strengths and
weaknesses of the organization.

 MBWA strengthens an environment of feedback, in which the subordinates

can provide the manager with ideas, tips and suggestions to act upon.

 The ‘management bubble’ is removed and managers don’t just see what they
want to see or what the employees want to present them, but get a realistic
idea of what is going on.

c) Improving the organization’s efficiency

 Both of the above points can lead to enhancing operational efficiency. The
positive work environment increases work motivation and the managers
have a better understanding of the correct operations decisions that must be
made.

 The management will be able to clear problems quicker by meeting people

face-to-face, rather than relying on writing a string of e-mails. Instead of
waiting for a reply, a manager can simply go and ask about the situation.

 This also means the feedback on problems and ideas is instant, resulting in
faster actions. The subordinate or the manager doesn’t have to wait for the
‘right’ moment, but can make adjustments immediately when things arise
and are solved. If clarification is required, it can be dealt with on the spot.

THE DANGERS OF MBWA

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What about the dangers of MBWA? Like any other management theory, the strategy can have its
pitfalls. The three problems managers need to keep in mind revolve around the time-consuming
nature of the strategy, its emphasis on subordinate opinion, and the difficulties organizations
might have implementing the strategy.

a) Time-consuming strategy

 MBWA can take a lot of time from the manager’s diary. The actual act of
walking from your office to be among the employees can be a timely affair,
which can hinder your ability to work on other issues. Even when the
discussion results in a benefit, you are still taking time away from other
tasks.

 The time-consuming element can be especially detrimental when you

consider the fact that not every conversation is going to lead to an
immediate benefit. The unstructured nature means you will talk to
subordinates without gaining any new insight into the organization’s
operations. Insights are rather random in terms of the immediate benefit.

b) Emphasizing the importance of employee opinion

The focus of the strategy is to listen to subordinates and use their insights into the
business as a way to improve operations. Although this can be highly beneficial, as
subordinates always have the closest view on day-to-day operations, the emphasis
can be overemphasized. By focusing on the insights and opinions of the
subordinate, the management won’t pay as much attention to other insights, such as
those by the customers or other stakeholders.

c) Implementing can be difficult

 Getting the strategy right can be difficult. As mentioned previously, some

managers might treat the method simply as a strategy to ‘wander around’. If
enough emphasis is not placed on the value of the conversation and
communication, the manager will simply spend time talking to people. The
strategy is not just about being physically present amongst the subordinates,
but gaining information from these real situations and conversations.

 If you simply walk around and engage in conversation, you are forgetting
the key takeaway of the strategy: information. You can’t just sit on the
information and insights you gain, you need to be able to use the
information as part of your overall management strategy.

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HOW TO BEST USE THE MANAGEMENT STYLE
How can you best avoid the pitfalls of management by walking around? To ensure you don’t end
up walking aimlessly or find yourself in a situation where “I’ll do it later” becomes the
catchphrase. If you want to make the most out of the management method, you need to focus on
the following key points.

Strike a balance
The most important, and perhaps the most difficult, thing to get right with MBWA is striking a
balance. The method requires systematic use and it has to be made part of the manager’s routine.
The system doesn’t work appropriately if you just do it when you have time, as this can easily
lead down the route of inaction. The method should become a thing you take time to do instead
of considering it of a second importance.

Maintain a positive body language

MBWA is built around communication. As a manager, you need to focus on improving
your communication skills – to become better at getting your message across and to hear what
the other person has to say. You should definitely check out the tips by Julian Treasure for
effective communication from the TedTalk.

But communication isn’t just about how good you are at talking or listening to other people; you
also need to be mindful about the body language. We don’t just speak with our words and the
tone, our bodies are also telling a story. Understanding body language is especially important for
MBWA because you are putting yourself and other people in an unexpected situation – a
situation, where reading between the lines can often be the key to improving.

How can you maintain positive body language? First, you need to relax. If you are casual about
the situation and you treat it as an opportunity to have a chat and not a formal conversation, you
can make the situation less daunting. Ensure the conversations take place in neutral spaces
(outside of your office) and in a relaxed environment. Over lunch is a good example or while the
other person is getting a cup of coffee.

Observe the other person and learn to read their body language. You don’t want to jump in on
them when they seem clearly busy. Check first with questions like “How are you doing?” or
“Oh, you are assembling the new product?” If the person becomes timid, try to diffuse the
situation with something casual (perhaps they like football or you just heard good news about a
supplier). Don’t push the conversation forward if the person’s body language is negative. Move
on and return later.

Focus on positive recognition

The final element to guarantee effective use of the method is about using it for positive
recognition. You don’t want to come across as a manager who is like an inquisitor walking

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around interrogating people. MBWA is an approach to learning about the work environment and
sharing positive feedback.

Use the conversations for sharing successes, not failures. Provide the subordinates with positive
feedback and only critique when the situation calls for it. If you encourage people with positive
feedback, give credit for the ideas you hear and share the success stories with everyone, you
strengthen subordinates’ motivation to work hard and to share their concerns and ideas.

The other point about positive recognition deals with inclusion. It’s crucial to ensure the MBWA
strategies include everyone within the organization and that you don’t have a situation where the
management only talks to certain people. Some people will always be more talkative and open
than others, but you can’t pick favorites as a manager, especially when it comes to a strategy of
listening to opinions.

You need to ensure everyone’s voices are heard, even when they might not be openly sharing
them. Furthermore, the inclusion aspect also means you need to provide positive feedback for
everyone, not just a few people. It’s important to provide everyone with positive messages to
maintain a positive work environment.

THE BOTTOM LINE

Management by walking around is another management method you should consider. It has been
popular, with small and large companies vouching for the strategy. MBWA can help you better
understand what is happening in the organization and to create an environment of authentic and
open communication.

It can help create a more meaningful relationship between the management and the subordinates,
which can lead to enhancing the organizational efficiency. But to fully benefit from the method,
you must understand how to implement it correctly and to avoid the pitfalls of having the
management just walk around without gaining relevant information or knowing how to use it.

3). RESULT ORIENTED MANAGEMENT

The "Reddin Result Orientated Management System" aims to achieve maximum results based on
clear and measurable agreements made earlier. Result Orientated Management is a management
method, based on the idea that people will work with more enthusiasm and fun, if:
 People clearly know what is expected of them.
 People are involved in establishing such expectations.
 People are allowed themselves to determine how they are going to meet these
expectations.
 People obtain feedback about their performance.

In Result Orientated Management, the manager sets goals and determines priorities and makes
available resource that are needed: time, money and capacity. The employee offers his time,
knowledge and talents and sets out the conditions against which he or she can deliver the
required result. In doing so, he or she takes personal responsibility for achieving those results.

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Result Orientated Management is a management system that works with so called Result
Orientated Agreements. Parties have equal expectations about their targets and may discuss with
one another the results. Agreements must always be "SMARTER": Specific, Measurable,
Achievable, Relevant, Testing, Exciting and Recordable. Within the boundaries of the
agreements that are being made, employees are at liberty to determine how they want to achieve
their targets.

Result Orientated Management helps to translate corporate goals into Strategic Business Unit
goals and individual goals. The process of Result Orientated Management is preferably top down
as well as bottom up and consist of the following steps:
 To set the target. Long-term corporate goals;
 To translate corporate goals into Strategic Business Unit goals and individual goals;
 To define Result Orientated Agreements about goals;
 To implement self-steering and management reporting;
 To periodically make appraisals, monitor progress and make adjustments;

Results-Oriented Management

It is important to note that performance standards for teleworking employees must be the same as
performance standards for non-teleworking employees. Management expectations for
performance should be clearly addressed in the employee's performance plan, and the
performance plan should be reviewed to ensure the standards do not create inequities or
inconsistencies between teleworking and non-teleworking employees. Like non-teleworking
employees, teleworkers are held accountable for the results they produce. Good performance
management techniques practiced by the manager will mean a smoother, easier transition to a
telework environment. Performance management is the systematic process by which an agency
involves its employees, as individuals and members of a group, in improving organizational
effectiveness in the accomplishment of agency mission and goals. For more information,
visit OPM's Performance Management (external link) page

A results-oriented performance culture system focuses on having a diverse, results-oriented,

high-performing workforce, as well as a performance management system that effectively plans,
monitors, develops, rates, and rewards employee performance. In a telework environment,
managing by results and not by physical presence becomes even more critical. Managers should
establish a clear definition of objectives and performance indicators, and ensure close monitoring
of those indicators. For more information, visit OPM's Performance Culture (external link) page.

In addition to guidance issued by OPM, managers may also benefit from a tool developed by the
Arizona State Telework Program that suggests the following RESULTS steps:

 Review current job tasks and responsibilities.

 Establish measurable outcomes and deliverables.

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  Specify who receives or monitors the outcomes and deliverables, and when interim
checkpoints and due dates will occur.

 Use language that avoids subjectivity, vagueness and interpretation. Be clear and specific
to avoid misunderstanding about what is required.

 Link outcomes and deliverables to organizational goals. It is important that employees

understand the importance of our work functions in relationship to the organization’s
goals, mission, products and services.

 Track performance results. Tracking results allows you to compare from review period to
review period how you are doing.

 Schedule ongoing evaluation and revise as necessary. This applies to both ongoing,
formal evaluation of your job performance and the results-oriented management process.
Make changes to each of these as appropriate.

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