Behavioral management approachHarry Plumptre

Nick LloydEric Nguyen

Matthew MakhoulLuke Kyriazis

Lukas Mitterlechner

Behavioural ApproachScientific management did not always lead to a

productive workforce due to boredom and repetition

Harvard professor Elton Mayo (1880–1949), founder of the behavioural approach to management believed in a humanistic approach.

worker satisfaction to a large extent is non-economic; that is, workers have social needs in addition to economic needs

being made to feel part of a team increases job satisfaction and output.

Management as leading “You don’t manage people, you manage things.

You lead people.” Grace Hopper, Admiral, United States Navy.

Characteristics of a good leader: Keeps an open mind, seeks out new ideas and

freely shares information Shows confidence in people, shares credit and

recognition Builds and communicates a clear vision Sets an example and earns respect of employees Delegates tasks to suitable employees Demonstrates flexibility in dealing with situations

Management as motivating

Motivated workers are proved to be the most efficient

Motivated workers will always perform at a higher level than unmotivated workers despite abilities level

External factors that motivate employees: Increased pay rates Improved working condition

Human factors that motivate employees: Recognition Self-worth Positive reinforcement

Management as Communicating

Communicating: exchanging information between people; the sending and receiving of messages.

Effective communication – important for employees to understand and more importantly want to ACHIEVE business goals.

Communication is key in the success of business goals, plans, and overall financial success.

Having a common goal is important for business success.

“CEO’s should exude a passion and a vision of the business’s future.” Steve Jobs

Jobs’ charisma and comfortable persona is part of the reason Apple have seen such great success. In presentations when revealing new products he can be seen wearing casual jeans and a sweater – people all over the world can relate to him.

Communication Activity #1

Get in to pairs of two’s and have a sheet of paper.

Without talking, take it in turns to draw components of your drawing. (i.e. a horizontal line)

Try and draw a finished picture between you.

Is it difficult when you are not communicating? What problems occurred?

Teams• Teamwork involves people who interact regularly and coordinate

their work towards a common goal

• Managers require a good understanding of team/group dynamics

• The development of work teams has resulted in flatter organisational structures

• The role of managers is changing from controller to facilitator

• Reducing the levels of management gives greater responsibility to individuals in the business

• Businesses are adopting flatter management structures which results in: De-layering of traditional hierarchal structure Establishment of market focused work teams Each work team responsible for a wide range of production functions

Teams

Participative or democratic leadership

style A manager who asks employees for their suggestions and seriously

considers them.

They share their decision-making authority with their subordinates.

It is referred to as the WE APPROACH. Contribution of employees is valued and regular meetings are held.

Employees have a commitment to the businesses goals due to their own input into the firm.

This style of leadership is most effective in a business environment undergoing rapid change.

Employees can therefore implement changes through responsibility making the business more responsive to change.

Via activities such as brainstorming, a diverse range of ideas and opinions can be generated.

Participative or democratic leadership

style Advantages

1: communication is a 2 way process 2: Employee, employer relations are improved. 3: Motivation and job satisfaction are optimal due to satisfied

higher order (self actualisation needs) amongst employees. 4: Employees have greater opportunity to acquire more skills. 5: encourages team building.

Disadvantages 1: Reaching decisions and introducing tasks can be time consuming

due to increased opinions. 2: The role and control of the manager may be weakened. 3: Internal conflict due to conflicting views may arise. 4: Not all employees want to contribute. 5: Organisational structure may be minimised

Participative or democratic leadership

style Carlos Ghosn who is currently chairman and CEO of Paris based Renault. He is also chairman and CEO of the Renault – Nissan alliance, the strategic partnership overseeing the two companies through a unique cross-shareholding agreement. He is also president and chef executive officer of Nisan Japan. Ghosn believes in empowering his employees to take decision. He also believes that change in the organisational structure should come from the bottom level and not be forced from the top management. He was very reasonable whilst dealing with his subordinate, he provided them with challenges to perform better and also made them realise he trusted them and their capabilities. As a result of taking on a democratic leadership style, he gained the successful status amongst the 50 most famous men in business and politics.

The EndANY QUESTIONS?