Chapter 3 Motivating Environment Chapter Overview The intent of this chapter is to examine what motivates people. Included are discussions of theoretical literature, empirical research, and some frameworks for integrating both. Important topics discussed are the Hawthorne Studies, McGregor's Theory X and Theory Y, Homans' Informal Groups, Argyris' Immaturity-Maturity Theory, Herzberg's Motivation-Hygiene Theory, and Maslow's Hierarchy of Needs. Chapter Learning Objectives After studying this chapter, each student should be able to: 1. State three key ideas from the Hawthorne Studies 2. Explain McGregor's Theory X and Theory Y 3. Explain Homans' elements of a social system and how they are interrelated 4. Discuss Argyris' Immaturity-Maturity Theory 5. Explain Herzberg's Motivation-Hygiene Theory 6. Explain the relationship between Herzberg's Theory and Maslow's Theory Key Terms and Concepts Hawthorne Studies Elton Mayo and his associates were called in to assist with worker productivity experiments at Hawthorne after initial results of the experiments were found to be unexplainable. Originally, the tests were intended to study optimum physical work conditions, but productivity of subjects tended to improve regardless of whether work conditions were enhanced or made worse. Mayo's group discovered that the feelings of importance experienced by testing subjects resulted in their belief that what they did and how they performed was important to the company. In addition, members of the experimental groups, even when they were simply control groups, developed a sense of camaraderie with their peers and the groups became dynamic work units in which members viewed their goals as being the same as the company's goals. The Hawthorne studies also indicated that unstructured interviews with employees about work conditions and their feelings about work resulted in increased morale. This was not the case when the interviews were structured and consisted of predetermined questions. The Hawthorne experiments led Mayo to apply the term anomie to the feelings of workers in standard industrial environments. Anomie refers to the tension, anxiety, and frustration experienced by people whose jobs satisfy only physiological and safety needs 17 but provide little satisfaction of esteem and self-actualization needs. Theory X and Theory Y Mayo developed the Rabble Hypothesis in his work at Hawthorne. The Rabble Hypothesis proposes that many managers view all workers as a contemptible group of disorganized individuals who work only in order to receive money and who will avoid as much labor as possible. Douglas McGregor expanded on the Rabble Hypothesis in his development of Theory X - Theory Y. According to McGregor, Theory X organizations and managers subscribe to a set of assumptions about human nature. Theory X managers believe that most people prefer to be directed, that people are not interested in assuming responsibility, and that people want safety above all. Theory Y is a set of assumptions that states that people are not by nature lazy and unreliable; people can, when properly motivated, be self-directed and creative at work. Theory X managers closely supervise their employees and impose a great deal of external structure and control on their actions. Managers who are behaving in a Theory Y manner generally rely more on supportive and facilitating behaviors. It is important to understand that Theory X and Theory Y refer to basic assumptions about human nature and not to managerial styles. A manager may hold Theory Y beliefs but be in a situation where it is appropriate to manage in a directive and controlling way, as if the person were a Theory X manager. Increasing Interpersonal Competence Management under Theory X assumptions is still widely practiced even though McGregor and others believe that the level of education and experience in this country indicate that Theory Y is more appropriate. Homans' Informal Work Groups Homans explored the power of informal work groups and how they influence the behavior of workgroup members, which in turn influences the level of productivity. Homans developed a social systems model to help explain the power of informal workgroups. The social system is made up of three elements: 1. Activities: the tasks that people perform 2. Interactions: the behaviors that occur between people performing those tasks 3. Sentiments: the attitudes that develop between individuals and within groups These concepts are separate but related. They are, in fact, mutually dependent on each other. For example, if a change occurs in the interactions between people, changes will also occur in the activities and sentiments of the people and vice versa. In an organization, jobs are the activities; interactions are the people working together; and the 18 sentiments are the people's attitudes toward their jobs; they need to be satisfied with their jobs in order for them to continue doing them. Sentiments towards the job become more developed over time and the more positive they are, the more people will tend to interact with each other. Group members also become more alike over time and develop norms and expectations about how the group should behave. These norms and expectations, if positive, can have strong positive effects on the activities and interactions of the group members. If a group member does not follow these norms and expectations, however, they will often be sanctioned by the group. The power of these informal work groups plays a significant role in impacting the success of organizations as a whole - they generate and perpetuate positive or negative attitudes (sentiments) as well as the norms and expectations of the members which interact highly with the activities and interactions in which they engage. Argyris' Organization Value System Argyris compares bureaucratic/pyramidal values (Theory X-type organizations) with humanistic/democratic values (Theory Y-type organizations). He maintains that bureaucratic, pyramidal values lead to an organization that breeds mistrust, intergroup conflict, rigidity, and so on, which in turn lead to a decrease in organizational success in problem solving. Humanistic, democratic values, however, lead to trusting and authentic relationships among people which result in increased interpersonal competence, intergroup cooperation, and flexibility. Immaturity-Maturity Theory Argyris postulates that as people develop from infancy to adulthood they move along a continuum in seven variables: Passive _____________________________Active Dependent __________________________Independent Few behaviors _______________________Many behaviors Shallow interests _____________________Deeper interests Short time perspective ________________Longer time perspective Subordinate position __________________Equal or superior position Lack of self-awareness ________________Awareness and control of self Argyris maintains that most formal organizations encourage and reward immaturity rather than maturity in people. He contends that workers in most organizations are encouraged to be passive, subordinate, and dependent. In many school systems we see the same pattern. 19 Theory into Practice Argyris submits examples that support his belief that classical (Theory X) management creates childlike roles for employees. In particular, he quotes a manager unknowingly supervising people with mental retardation doing unskilled work as reporting that they were better behaved than any previous workers who had done the job. Management was surprised learn that the workers they were so pleased with were people clinically diagnosed with mental retardation. In contrast, Argyris found that when workers of normal intellect have their jobs enriched, thus providing them an opportunity to satisfy esteem and self-actualization needs, one finds the results can be astonishingly positive with regard to performance. Herzberg's Motivation-Hygiene Theory McGregor and Argyris in part inspired Herzberg's studies. He set out to discover what kinds of things made workers unhappy or dissatisfied and what things made them happy or satisfied. He found that there are two distinct categories of needs that operate independently and affect behavior in different ways - hygiene factors and motivators. Hygiene Factors These are also called maintenance factors because they are never completely satisfied and must continue to be maintained. Hygiene factors refer to the work environment and include such things as: policy, administration, supervision, work conditions, pay, status, and security. These factors don't improve productivity but prevent losses in worker performance due to dissatisfaction. Motivators Motivators are factors that involve feelings of achievement, professional growth, and recognition. They seem to be capable of having a positive effect on job satisfaction. Motivators include: achievement, recognition for accomplishment, challenging work, increased responsibility, growth, and development. Herzberg and Maslow Maslow provides help in identifying needs (motives), while Herzberg provides insight into incentives (goals). Therefore, in a motivating situation when a manager knows what the high strength needs of followers are, the manager should be able to identify the goals that can be provided in the environment that should tend to motivate them. Conversely, when the goals of individuals are known, the manager should be able to predict the individual's high strength needs. Essentially, Maslow's physiological, safety, social, and some esteem needs can be categorized as hygiene factors, for when they aren't met, an individual is dissatisfied. The 20 portions of Maslow's esteem needs that are met by recognition or self-actualization, however, can be classified by Herzberg's model as motivators in that when they are met, an individual is satisfied. McClelland's concept of achievement motivation can be brought into play here as well; people with high achievement motivation tend to be interested in the motivators (job itself), while people with low achievement motivation tend to be more interested in the hygiene factors (environment). Suggested Teaching Approaches Assignments 1. There are many pros and cons regarding the well-known theories of motivation cited in this chapter. Have students prepare a written or oral report or do research for class discussion on evidence supporting or rejecting one or more of the theories. 2. Are the motivation theories discussed in this chapter exclusive to the United States or are they more widespread? If you have international students, take advantage of this learning/teaching opportunity by asking some culturally specific questions like: What are the popular motivational theories in different countries? Are they the theories discussed in this chapter (in many countries they are) or are there other theories of motivation? How do these other theories, if any, compare to the traditional motivation theories? 3. Synthesizing the first three chapters: With a basic understanding of how leadership and management are different terms, have students discuss the difference between the two terms in regards to how they may lead to different behaviors and how these behaviors may play a role in followers' motivation and reaching organizational and group goals. Online Activities 1. Activity Have students go online to complete the activity applying McGregor's Theory X and Theory Y and Herzberg's Motivation and Hygiene Factors. In this exercise, the students explain a situation based on these two theories. 2. Case Study Have students read and answer the questions to the case study for Chapter 3. Students are asked to identify and apply motivational theories that were introduced in Chapters 2 and 3 to the treatment of employees at Listo Systems. 21 3. Quiz Request that students log onto the text's companion website and take the quiz designed to review Chapter 3. 4. Resources The additional online resources section contains links to websites that provide additional information regarding content and sources discussed in the chapter. Exam Questions 1. Discuss the original purpose of the Hawthorne studies, as opposed to what they ended up showing. Make a list of points illustrated by the Hawthorne studies. Answer: The Hawthorne studies were originally intended to isolate superior physical working conditions. The first variable manipulated was lighting strength. When lighting was improved, productivity in the experimental group went up. Other factors were manipulated and as each was changed, productivity increased again, but productivity increased in the control group as well. The Hawthorne studies ended up showing the importance of paying attention to employees and treating them as vital parts of the enterprise. The experiments also illustrated the importance of properly setting up studies so that there is a control as well as an experimental group. Had there been no control group at Hawthorne, the experimenters would have thought that they had stumbled onto wonderful improvements in physical working conditions. 2. Discuss McGregor's Theory X - Theory Y. What are the important limitations of each? Answer: Theory X and Theory Y refer to two different sets of assumptions about human nature. Theory X managers believe that most people are: lazy, prefer to be directed, best motivated by physiological and safety needs, and incapable of being leaders. Theory Y managers believe that most people are: not by nature lazy, capable of being self-directed, best motivated by higher level needs, and capable of being leaders. The limitations of each theory are confining someone to only one theory when motivating factors can change throughout a lifetime. Individuals change their reasons for doing things. A person who fully employs only Theory X or Theory Y runs a high risk of mislabeling others and their true needs or interests for doing something. 22 3. Using Argyris' Organizational Value system and Immaturity-Maturity Theory, discuss business organizations with which class members are familiar. In what ways do these organizations support Argyris' theories? In what ways do they disprove them? Answer: Argyris' Organizational Value system maintains that there are Theory X-type organizations (those that subscribe to bureaucratic/pyramidal values), and Theory Y-type organizations (those that subscribe to humanistic/democratic values). Argyris believes that Theory X-type organizations breed mistrust, intergroup conflict, rigidity, etc., and are not very effective at problem solving. He believes that Theory Y-type organizations lead to trusting and authentic relationships among people, which result in increased interpersonal competence, intergroup cooperation, and flexibility. In his Immaturity-Maturity Theory, Argyris maintains that most formal organizations (Theory X-type) encourage and reward immaturity rather than maturity in people. 4. Identify the hygiene factors and motivators (Herzberg) in the following examples. Predict whether the individuals are likely to be dissatisfied, neutral, or satisfied. Margaret works for a small company that makes advanced, high-tech widgets. Margaret is one of the company's most highly regarded widget designers, and as such, is included in planning sessions and is often consulted about the direction of the company. In comparison to many of her peers in larger companies, Margaret doesn't make very much money, although she is able to afford a comfortable lifestyle. David is a clerk in a large insurance office. His job is repetitive and boring and requires quite a bit of attention to detail. The company pays well and provides excellent health benefits. In addition, David's work section consists of seven other people who he finds congenial. They often get together for lunch and sometimes meet for cocktails after work. Much of their conversation involves the supervisor and the supervisor's latest outrageous request for greater accuracy or more speed. Mark is employed in a challenging job that requires that he be mentally on his toes all day long. He acts as both buyer and seller of a product, and if he makes an error in either function, it shows up on his budget almost immediately. The workload is tremendous and the pace frantic. Mark is not paid particularly well for the responsibility of the position, but it is more than he has ever earned before. His peers are also relatively young and inexperienced for their jobs. Top management of the company is constantly changing policy in an attempt to improve profits. Major procedural changes are instituted several times a year, and people at Mark's level are blamed if the changes aren't implemented smoothly. 23 Answer: According to Herzberg, hygiene or maintenance factors are such things as: pay, policy, administration, supervision, work conditions, status, and security. These factors can be also referred to as dissatisfiers, as employees are apt to be dissatisfied at the absence or unsatisfactory nature of these factors. Motivators are factors that involve feelings of achievement, professional growth, and recognition. To include Maslow in this discussion consider that physiological, safety, social, and some esteem needs are hygiene factors while the portion of esteem needs that is met by recognition or self-actualization needs are motivators. In the examples given, Margaret is probably quite satisfied because she receives recognition (esteem needs) for her work and is meeting her self-actualization needs as well. She is probably not particularly dissatisfied even though she could be making more money because her physiological and safety needs are being met. David is probably neutral, neither satisfied nor dissatisfied. His physiological, safety, and social needs are met by his job, but he has no opportunity to achieve recognition or self-actualization. Mark probably started his job feeling satisfied (motivated). He probably felt good about the salary and the responsibility of the position, and his peer group met his social needs. After a certain amount of time, though, he probably has become quite dissatisfied. 24 Chapter 4 Leadership: Trait and Attitudinal Approaches Chapter Overview The major attribute that differentiates successful from unsuccessful organizations is dynamic and effective leadership. There are several approaches for examining leadership. This chapter concentrates on the Trait and Attitudinal Approaches. In this chapter we define leadership, discuss the Vision into Performance and the ACHIEVE models of performance, consider the historical schools of organizational theory, examine the research that has been done to attempt to isolate specific traits or behaviors common to successful leaders and review specific attitudinal approaches. These approaches include the Ohio State leadership studies, the Michigan leadership studies, Group Dynamic studies, Likert's leadership model, and Blake and McCanse's Leadership Grid model. The chapter concludes with the question, is there a best style of leadership? Chapter Learning Objectives After studying this chapter, each student should be able to: 1. Define leadership 2. Describe and explain the Vision into Performance Model and the challenges leaders face moving through the model 3. Describe and explain the ACHIEVE model of performance 4. Describe the historical schools of organizational theory such as the scientific management movement and the human relations movement 5. Discuss the trait approach to leadership 6. Diagram and explain the Ohio State leadership model 7. Diagram and explain the Michigan leadership model 8. Describe Likert's leadership theory 7. Discuss and diagram the leadership grid 9. Discuss the question: is there a best style of leadership? Key Terms and Concepts Leadership Defined For our purposes, leadership is defined as the process of influencing the activities of an individual or a group in efforts toward goal achievement in a given situation. Thus, leadership is a function of the leaders, the follower(s), and other situational variables. It is important to note that leadership does not just take place in business settings. Also, 25 the terms leader and follower are relative to the situation. Whoever is trying to influence behavior is the leader in that situation, while whoever is being influenced is the follower. Vision into Performance Effective performance is the result of predictable, planned actions that can be learned and applied by almost anyone in any organization. To be successful in achieving one's purpose, leaders must first know where they are going; they must be visionaries. Key \"pattern\" words for tomorrow's success are: vision, change, implementation, and results. These terms are fundamental to the Vision into Performance model, which is composed of: vision, business idea-organizational environment, strategy-culture, goalteams, task-people, and results. Vision creates the potential for success and turns potential into actual performance. Focusing on the model, in the top left we identify a strategic vision because every organization has a driving vision, whether articulated or not, that determines its direction. In the lower right corner is the desired outcome of the vision - performance. This component tells us day to day how we are doing. The left side of the model focuses on planning and decision-making. Managers make decisions that spell out the business ideas, strategies, mission, key results or success factors, goals, objectives, and tasks required to move the organization in the desired direction. Moving from top left to lower right of the model, we see that the Vision into Performance model moves through five levels: Level one: implementing business ideas in the internal and external environment is affected by the stakeholders - those persons, key players, or factors whose helping or hindering roles determine success or failure to the organization. Level two: strategic initiatives are carried out within the corporate culture. Essentially, it's the way we do things around here. Level three: key results and success factors are communicated to the organizational units and department divisions. Level four: goals are achieved by teams. Level five: tasks are performed by people. The business issues along the right side of the model represent a decision process spelling out the \"what\" and \"how\" looking down and defining the \"why\" and \"what\" looking up. The human issues along the top of the model represent the influence process of leading the organization, regardless of level, toward accomplishment of the left side. The leadership challenges at each level as we move diagonally from left (vision) to right, top to bottom (performance) are: 1. Establishing, refining, and monitoring the stated vision to the synchronization of stakeholders and key players with the business ideas and purpose of the organization. 26 2. Defining, shaping (publicizing), and energizing the stated vision to the synchronization of the corporate culture and the organizational individual entities with the strategies and mission. 3. Involving, facilitating, and communicating the stated vision to the synchronization of the organizational units and department divisions with the key results and success factors. 4. Focusing, unifying, and connecting the stated vision to the synchronization of the groups and teams with the goals and objectives. 5. Enabling, engaging, and empowering the stated vision to the synchronization of the people and individuals with the tasks and jobs. The ACHIEVE Model Paul Hersey and Marshall Goldsmith designed the ACHIEVE model to assist managers not only in determining why performance problems may have occurred but also in developing change strategies aimed at solving those problems. There are two goals to keep in mind when analyzing human performance problems: (1) to determine the key factors that can influence staff members' performance, and (2) to present these factors in a way that can be used and remembered by practicing managers. Hersey and Goldsmith isolated seven variables related to effective performance management: ability, clarity, help, incentive, evaluation, validity, and environment. In using the ACHIEVE model, the manager evaluates how each factor will affect the current or potential performance of followers for a given task. Then the manager should take the steps that \"fit\" the unique cause(s) of the performance problem. The seven factors in the ACHIEVE model, along with the typical problem-solving alternatives, are: Ability (Knowledge and Skills) Ability refers to the follower's knowledge, experience, and skill - the ability to complete the specific task successfully. Key components of ability include task-relevant education, task-relevant experience, and task-relevant skills. If the person has an ability problem, solutions may include specific training, coaching, formal educational courses, or reassignment of specific duties and responsibilities. Clarity (Understanding or Role Perception) Clarity refers to an understanding and acceptance of what to do, when to do it, and how to do it. To have a thorough understanding of the job, the follower needs to understand clearly what the major goals and objectives are, how they should be accomplished, and their priority. If the follower has a problem in clarity, or understanding, there may well be a problem in the performance-planning phase. In many cases, verbal agreement on objectives is not 27 enough. The manager should ensure that all objectives are formally recorded. The follower should be encouraged to ask questions for further clarification. Help (Organizational Support) Help refers to the organizational help, or support, that the follower needs to effectively complete the task. Some organizational support factors include adequate budget and personnel, suitable equipment and facilities, and necessary support from other departments. If there is a lack of help, or organizational support, managers should clearly identify where the problem exists. If the problem is lack of money, human resources, equipment or facilities, the manager should see whether the necessary resources can be acquired in a cost-effective manner. If the resources cannot be acquired, the manager may have to revise objectives to avoid holding followers responsible for circumstances beyond their control. Incentive (Motivation or Willingness) Incentive refers to the follower's task-relevant incentive - the motivation to complete the specific task under analysis in a successful manner. In evaluating incentive, one must remember that people are not equally motivated to complete all tasks. If the follower has an incentive problem, the first step is to check the use of rewards and punishment. The follower should clearly understand that performance on this task is related to pay, promotion, recognition, and job security. Rewards can be tangible or intangible; feedback on performance like recognition or a pat on the back can be an important part of the overall incentive system. Evaluation (Coaching and Performance Feedback) Evaluation refers to informal day-to-day performance feedback as well as formal periodic reviews. An effective feedback process lets followers know, on a regular basis, not only how well they are doing the job but also attempts to assist and guide them in planning how to improve their performance. If there is an evaluation problem, it may be caused by a lack of day-to-day feedback on both effective and ineffective performance. Many managers tend to focus on the bad news and forget to recognize when things are going well. Recognition for a job well done is a vital part of the ongoing evaluation process. It can increase motivation, and it costs the organization very little. Validity (Procedures, Practices, Rules, and Regulations) Validity refers to the appropriateness and legality of human resource decisions made by the manager. Managers need to make sure that decisions about people are appropriate in 28 light of laws, regulations, and company policies. If there is a validity problem, managers should know that personnel decisions need to be documented and justified on the basis of performance-oriented criteria. Managers uncertain about validity issues should discuss them with human resources or the organization's legal office. Environment (Environmental Fit) Environment refers to the external factors that can influence performance even if the individual has all the ability, clarity, help, and incentive needed to do the job. Key elements of environmental factors include competition, changing market conditions, government regulations, and suppliers. If there is an environmental problem beyond their control, followers should not be rewarded or reprimanded for performance. Schools of Organizational Theory The two major leadership concerns are accomplishment of the task and human relationships. These concerns are a reflection of two of the earliest schools of thought in organizational theory. Scientific Management Frederick Winslow Taylor developed his technologically-based Scientific Management theory in the early 1900s. Taylor believed that the best way to increase output was to streamline procedures used by workers in completing their tasks. He initiated time and motion studies to determine the most effective way to do each segment of a task and then imposed upon workers the requirement that they do their work exactly as instructed. The needs of the organization were separated from the needs of the individual. Human Relations Movement Elton Mayo and his associates (Hawthorne studies) initiated the Human Relations Movement in the 1920s and early 1930s. Mayo believed that the real power centers in any organization were the interpersonal relations that developed in the working unit. The most important consideration for management was the study of these relations. The needs, wants, and feelings of workers were the focus with the assumption that organizational goals would be met if the human relations were satisfactory. Trait Approach to Leadership Prior to 1945, the most common approach to studying leadership was to look at the personal characteristics (energy, friendliness, etc.) of successful leaders. The assumption 29 was that there were certain traits essential for effective leadership and that these traits were inborn. The hope was to identify these attributes and then simply find the people who had these traits and make them leaders. While it is true that certain traits may hinder or facilitate leadership, no one set of traits has been identified that clearly predicts success or failure. (See Table 4-2 in the text for a list of traits most likely to be associated with successful leadership.) In general, it appears that successful leaders (Bennis) usually have the ability to communicate goals or directions to followers (Management of Attention); the ability to communicate clearly and understandably (Management of Meaning); are reliable and consistent (Management of Trust); and know themselves and their strengths and weaknesses (Management of Self). Geier noted that people who do not move successfully toward leadership positions seem to produce the impression of being at least one of the following: uninformed, non-participatory, or rigid. He also noted that of managers who seemed headed to the top but failed to make it all the way, there seemed to be a list of fatal flaws, and each had at least one of them. The most commonly cited flaw was insensitivity to others, but the one mentioned as unforgivable was a betrayal of trust. Attitudinal Approaches of Leadership Attitudinal approaches to leadership concentrate on the relationship between leader behaviors, follower performance, and satisfaction. Ohio State Leadership Studies In these studies, initiated in 1945, the description of leader behavior was focused on two dimensions: Initiating Structure and Consideration. Initiating Structure refers to the leader's structuring of the superior-subordinate relationship, patterns of organization, channels of communication, and procedures for doing the work. Consideration refers to friendly, trusting, warm, and respectful behaviors. These studies used the Leader Behavior Description Questionnaire (LBDQ), which was completed by followers. The LBDQ was the first to find that leader behavior could be plotted on two axes. The Ohio State staff discovered that a particular leader could have a high score in one or both dimensions; one did not rule out the other. Michigan Leadership Studies The University of Michigan studies began by attempting to locate clusters of characteristics that seemed related both to each other and to various indicators of effectiveness. The studies isolated two concepts of managerial orientation: employee orientation and production orientation. Employee-oriented managers stress the human relations aspect of their jobs. 30 Production-oriented managers concentrate on technical aspects of the job and consider employees tools for accomplishing organizational objectives. Group Dynamics Studies A number of studies conducted at the Research Center for Group Dynamics, at the University of Michigan established that the objectives of groups fall into two categories: (1) the achievement of some specific group goal, or (2) the maintenance or strengthening of the group itself. Rensis Likert's Management Systems Likert's work, based on the early Michigan studies, indicated that high producing work sections were most likely to be managed by supervisors who engaged in general rather than close supervision of subordinates. These supervisors also tended to communicate clearly to their people what the objectives were and what needed to be accomplished to reach these objectives. In his studies, Likert found that styles of organizations can be depicted on a continuum from System One through System Four. System One - Management is seen as having no trust in subordinates; most decisions are made at the top and issued down the chain of command. Fear, coercion, and occasional rewards are primary employee motivators, and the few superior-subordinate interactions that take place are occasions of fear and mistrust. System Two - Management maintains a hierarchical relationship with employees. Most decisions are still made at the top, but some are made, within strict guidelines, at lower levels. Employee motivators are rewards and some actual or potential punishments. Employees exhibit fear and caution in interactions with superiors. The informal organization that will probably develop will frequently resist formal organizational goals. System Three - Management has substantial but not complete trust in subordinates. Broad decisions are made at the top with more specific issues handled at lower levels. Information flows both up and down the hierarchy and superiors and subordinates interact with greater frequency, often in a relatively trusting and confident manner. An informal organization may develop, but it is unlikely to be completely resistant to organizational goals. System Four - Management has complete trust in subordinates and decision making is widely dispersed throughout the organization. Information flows up, down, and sideways with superiors and subordinates interacting often in a friendly and trusting way. Employee motivators include participating in goal setting, developing economic rewards, improving methods, and appraising progress. The informal organization is often synonymous with the formal organization with both sharing identical goals. The Leadership Grid The Leadership Grid, formerly the Management Grid created by Blake and Mouton, 31 establishes five types of leadership that are based on concern for production (task) and concern for people (relationship). The five leadership types are: Authority-Obedience type (high on production, low on people), the \"Country Club\" type (high on people, low on production), the Impoverished type (low on people, low on production), the Team type (high on people, high on production) and the Organizational Man type (middle of the road on people, middle of the road on production). Recent research has supported that there is no one best leadership style to use. Suggested Teaching Approaches In-Class Activities 1. Have students come up with 5 characteristics that are the most critical to an organization's success. 2. Vision into Performance (VIP): Have the students form groups. What are 2 or 3 challenges of linking Vision into Performance to make sure that the two are in alignment? Have each person in the group come up with at least one challenge. After each member has come up with at least one challenge, have them discuss the challenges of aligning or linking the 2 or 3 challenges that the group came up with. Discussion Questions Are there traits that have been identified with successful leaders? Have students do research in popular business periodicals and identify traits that seem to be associated with managerial success. Are these traits applicable in all situations? Can a person's future success be predicted by knowing that person's traits? Why or why not? Fred Smith, a noted management consultant, has said that, \"we must work to reduce or eliminate our destructive weaknesses and to enhance our productive strengths.\" Ask students to list, personally and confidentially, some of their destructive weaknesses as well as some of their productive strengths. Online Activities 1. Activity This first activity provides the student with a greater understanding of the Vision into Performance process by having them rate Listo Systems and determine what the current needs for improvement are. The second activity has the students gain better insight into where they fall in a linking pin model. Students are asked to describe their organizational role as a linking pin with respect to the relationship they have with their work group, their role in their relationships with peers, and the linking relationship between them and their boss. 32 2. Case Study Have students read and answer the questions to the case study for Chapter 4. Students are asked to identify and apply different theories presented in Chapter 4 and previous chapters that help explain the current challenges facing Listo Systems. 3. Quiz You can request that students log onto the text's companion website and take the quiz designed to review Chapter 4. 4. Resources The additional online resources section contains links to websites that provide additional information regarding content and sources discussed in the chapter. Exam Questions 1. Compare and contrast Scientific Management and the Human Relations Movement. Answer: Scientific Management considered workers as tools for the achievement of organizational goals. Frederick W. Taylor believed that with the aid of time and motion studies he could determine the one best way for a job to be done - and that workers should be very happy to do exactly as they were told. The Human Relations Movement, on the other hand, was predicated on the belief that the organization revolves around workers, and that the interpersonal relationships that develop in a work unit were the real power centers of the organization. Elton Mayo felt that if the needs, wants, and feelings of workers were met, then organizational goals would also be met as a matter of course. 2. Discuss three out of the seven factors that together make up the ACHIEVE model. How can a manager use these factors to approach problems? Answer: Ability (Knowledge and Skills) refers to the follower's knowledge, experience and skill - the ability to complete the specific task successfully. Key components of ability include task-relevant education, task-relevant experience, and taskrelevant skills. Clarity (Understanding or Role Perception) refers to an understanding and acceptance of what to do, when to do it, and how to do it. To have a thorough understanding of the job, the follower needs to understand clearly what the major goals and objectives are, how they should be accomplished, and their priority. 33 Help (Organizational Support) refers to the organizational help, or support that the follower needs to effectively complete the task. Some organizational support factors include adequate budget and personnel, suitable equipment and facilities, and necessary support from other departments. Incentive (Motivation or Willingness) refers to the follower's task-relevant incentive - the motivation to complete the specific task under analysis in a successful manner. In evaluating incentive, one must remember that people are not equally motivated to complete all tasks. Evaluation (Coaching and Performance Feedback) refers to informal day-to-day performance feedback as well as formal periodic reviews. An effective feedback process lets followers know, on a regular basis, not only how well they are doing the job but also endeavors to assist and guide them in planning how to improve that performance. Validity (Procedures, Practices, Rules, and Regulations) refers to the appropriateness and legality of human resources decisions made by the manager. Managers need to make sure that decisions about people are appropriate in light of laws, regulations, and company policies. Environment (Environmental Fit) refers to the external factors that can influence performance even if the individual has all the ability, clarity, help, and incentive needed to do the job. Key elements of the environmental factors include competition, changing, market conditions, government regulations, and suppliers. Managers can use the ACHIEVE model by first evaluating how each factor will affect the current or potential performance of followers for a given task. The manager can then take steps that \"fit\" the unique cause(s) of the performance model. 3. What were the general conclusions of the trait approach to leadership? Answer: In general, the trait approach could not find a set of traits that clearly predicts success or failure, although it is now recognized that certain traits increase the likelihood that a leader will be effective. Warren Bennis isolated four common traits that were shared by each of ninety outstanding leaders he studied: Management of Attention - the ability to communicate a sense of outcome, goal, or direction to followers Management of Meaning - the ability to create and communicate meaning with clarity and understanding Management of Trust - the ability to be reliable and consistent so people can count on them 34 Management of Self - the ability to know oneself and to use one's skills within limits of strengths and weaknesses McCall and Lombardo identified a list of ten fatal flaws for leaders. The most commonly mentioned reason for a leader failing to continue to the top was insensitivity to others, while the one unforgivable sin was betrayal of trust. Any comparison of leaders should indicate that not all successful leaders have either the same strengths or the same weaknesses. For example, some leaders have a very difficult time communicating accurate information to followers (Management of Meaning) and yet are still able to communicate a sense of goal (Management of Attention), while other leaders are valued for the extreme accuracy of the information they convey even when it is delivered in a less than stirring style. 4. Discuss the similarities and the differences in the findings of the Ohio State Leadership Studies and the Michigan Leadership Studies. Answer: In the Ohio State Leadership Studies, the descriptors of leader behavior were focused on two dimensions: Initiating Structure and Consideration. Initiating Structure concerns the leader's ability to communicate the superior/subordinate relationship, the patterns of organization, the channels of communication, and the procedures for doing the work. Consideration concerns friendly, warm, trusting, and respectful behaviors. The Michigan Leadership Studies intended to locate clusters of characteristics that seemed related both to each other and to various indicators of effectiveness. In the end, they isolated two concepts: Employee Orientation and Production Orientation. Employee-oriented leaders stress the human relations aspect of their jobs Production-oriented leaders concentrate on technical aspects of the job and consider employees as tools for accomplishing organizational objectives. Both of the studies narrowed descriptors of leaders to two characteristics. In both cases, one of the descriptors concerned relationship skills and the other task skills; however, in the Ohio State studies, the descriptors were concerned only with leader behavior, while the Michigan State descriptors were based on orientation, which is an attitudinal measure. This distinction is important because people can have the same attitude toward something and behave in completely different ways. For instance, most parents don't want their children to lie but one parent might spank their child for doing so while another may take away a favorite toy. Additionally, the Ohio State researchers concluded that a leader could have a high score in one or both of the dimensions while the Michigan studies seem to suggest 35 their dimensions are inversely related - a leader scoring highly in one dimension would score low in the other. 5. Consider Rensis Likert's Management Systems. What were the general conclusions? Answer: Likert's work indicated that in a System One management system subordinates saw management as lacking in trust with the decision making occurring at the top. System One is a coercive, fear-based system which has the tendency to generate informal organizations of employees opposed to the formal goals of the organization. System Two is one in which management looks down upon subordinates and has very limited trust in them. Most decisions are made at the top. It is a manipulative but somewhat less fear-based system. An informal organization will probably develop, but it will not always resist formal organizational goals. System Three is one in which management has substantial trust in employees. Broad policy decisions are made at the top with more specific issues being handled at lower levels. Superiors and subordinates interact in a trusting and confident manner. An informal organization may develop, but it is unlikely to be completely resistant to organizational goals. System Four is one in which management has complete trust in subordinates. Decision making is dispersed throughout the organization. Employees participate in goal setting, developing economic rewards, improving methods and appraising progress. The informal organization is often synonymous with the formal organization with both sharing identical goals. Note that Likert's work seems to indicate that when a management system includes group maintenance behavior as part of the formal organizational goals, as in Systems Three and Four, then the informal organization tends to include goal achievement behavior as part of its own goals. 36