The concept of management style was introduced in Lecture 3
where Theory X, Theory Y and Theory Z styles were mentioned but not defined.
Now we define and contrast them in hopes that the advantages of the Theory Z
style are made clear. This lecture is short but the concepts are fundamental so
do the exercise carefully. Much of the material in this brief lecture is
shamelessly borrowed from Management in Action by William Hitt, See page 12.
Management styles can be grouped by the two parameters that
measure a manager’s concern for productivity and for people. A convenient way
to examine Theory X, Y, L and Z managers is to compare their concerns for
people and productivity as shown in figure 3.
Figure 3 Two Measures
of Managers’ Style are Their Concerns for Productivity and for People
Few managers fit in the same box all the time and for all
situations but examining managers with this simple approach is instructive. The
Theory L manager doesn’t need discussion as it should be obvious that a manager
that has little concern for either people or productivity isn’t an effective
manager. A simple view of Theory X managers is that they believe workers:
• Are lazy
• Must be
controlled and punished when things go wrong
• Prefer to
be directed
In contrast Theory Y managers believe workers:
• Accept and
seek responsibility
• Will
exercise self-direction and self-control
• Have
intellectual potentialities only partially utilized
Is either of these theories all right or all wrong? No, in
fact a few workers do fit the Theory X manger’s views. However, ~95% of workers
closer fit theory Y manager’s view and if saddled with a Theory X manager are
likely to respond with low effectiveness (even though their productivity may
appear acceptable) because their needs for safety, belongingness and
self-esteem aren’t being addressed. They may even change jobs, if that option
is available. This leaves the Theory X manager with more and more workers that
fit the 5% description, thereby making this manager’s organization less and
less effective over time.
A problem with Theory Y managers is that most workers, while
fitting the Theory Y expectations in general, need leadership to perform at the
level of their capability. The Theory Y manager’s lack of focus on objectives
allows his people to underperform.
According to Hitt Theory Z managers have as much focus on
productivity as Theory X managers but Theory Z managers believe teamwork is
essential to productivity and therefore their beliefs are:
• People are
basically good
• Treat
people as persons, not objects
• People are
“works in process”, not static
• Value
individual differences
• Value the
individual as a whole person
• Prize
openness and honesty
These beliefs lead
Theory Z managers to:
• Foster
trust
• Deal with
differences of viewpoints
• Take
planned risks with people
• Emphasize
cooperation
Thinking back to the previous lecture we see that the
behavior of a Theory Z manager helps workers move from left to right on
Maslow’s hierarchy because their needs for safety, belongingness and self-esteem
are being addressed. In time a Theory Z manager’s trust in people results in a
returned trust in the manager. When mutual trust is achieved the workers are
ready for being empowered by the manager to have more and more control over
their work processes. If the workers are properly trained for their jobs and in
process improvements techniques they can handle empowerment properly.
Empowerment facilitates self-actualization and results in the highly motivated
workforce needed for a highly productive organization.
Exercise
If you are familiar with well know business leaders of the
past 25 years answer the following questions. If not, Google the managers
mentioned below to see if you can learn their styles (X, Y, L, or Z) before
answering the questions.
1. Where would
you classify Jack Welch in the ‘70’s & 80’s? in the ‘90’s?
2. What
personnel practice of Jack Welch resulted in high organizational effectiveness
but introduced competition between employees that limited the effectiveness
from being as high as it could have been?
3. Where would
you classify the infamous Al “Chainsaw” Dunlap?
4. Where is
your boss?
5. Where are
you?
6. Where would
you like to be?
7. What actions
should you take to get to where you would like to be?
8. Compare
these steps to the draft plan you prepared in the previous exercise and modify
your plan as you believe necessary.
If you find that the pace of blog posts
isn’t compatible with the pace you would
like to maintain in studying this material you can buy the book “The Manager’s Guide for Effective
Leadership” at:
or hard copy or for nook at:
or hard copy or E-book at:
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