Category Archives: Management Models

Robert Blake & Jane Mouton: Managerial Grid

If you are looking for one simple model that can more than pull its weight in understanding management, then look no further. Robert Blake and Jane Mouton developed their Managerial Grid in the 1950s and early 1960s. Its simplicity captures vital truths about management styles and their implications.

Every manager should understand the basics of the Managerial Grid. Even if you are not familiar with it, there’s a good chance you will recognise its organising principle. And if you don’t, then read on. This is fundamental stuff.

Robert Blake & Jane Mouton

Robert Blake & Jane Mouton

Robert R Blake

Robert Blake was born in Massachusetts, in 1918. He received a BA in psychology and philosophy from Berea College in 1940, followed by an MA in psychology from the University of Virginia in 1941. His studies were broken by the war, where he served in the US Army. On his return, he completed his PhD in psychology at the University of Texas at Austin in 1947.

He stayed at the University of Texas as a tenured professor until 1964, also lecturing at Harvard, Oxford, and Cambridge Universities. In the early 1950s, he began his association with his student, Jane Mouton, which led to their work together at Exxon, the development of the Managerial Grid, and co-founding of Scientific Methods, Inc in 1964. The company is now called Grid International.

Robert Blake died in Austin, Texas, in 2004.

Jane S Mouton

Jane Mouton was born in Texas, in 1930. She got a BSC in Mathematical Education in 1950, and an MSc from Florida State University in 1951. She then returned to the University of Texas, completing her PhD in 1957. She remained there until 1964 in research and teaching roles.

It was at the University of Texas that she met Robert Blake. They were hired by Exxon to study management processes after Blake collaborated with Exxon employee, Herbert Shepard. The work led to their development of the Managerial Grid and, in 1961, to the founding of Scientific Methods, Inc (now Grid international).

Jane Mouton died in 1987.

The Managerial Grid

In many ways, Blake and Mouton’s Managerial Grid is a development of the Theory X, Theory Y work of Douglas McGregor. The two researchers were humanists, who wanted to represent the benefits of Theory Y management.

They did so by defining two primary concerns for a manager:

  1. Concern for People
  2. Concern for Production
    (sometimes referred to as Concern for Task)

Although their work is often simplified to a familiar 2 x 2 matrix formulation, it was a little more subtle. They created two axes and divided each into nine levels, to give a 9 x 9 grid. It was the extreme corners, and the centre, of this grid that they labelled and characterised. They recognised that most managerial behaviours fall within the grid, rather than at the extremes.

Robert Blake & Jane Mouton - Managerial Grid

Robert Blake & Jane Mouton – Managerial Grid

The Five Styles on the Grid

The five styles they originally identified are at the corners and in the centre. They are still best known by the first labels Blake and Mouton published for them (shown in italics in our illustration). Blake did later refine those labels, as well as define two additional styles. This was after Jane Mouton died, in 1987.

Indifferent
Impoverished Management | Low Results/Low People

This is an ineffective management style, in which an indifferent manager largely avoids engaging with their people or the needs of the job at hand. Such managers reason (wrongly) that if you don’t do much, little can go wrong, and you won’t get blamed. The Peter Principle suggests managers rise to their level of incompetence, and here is the style we may see as a result.

This style is only suitable as a calculated decision to be hands off and delegate to a highly capable and strongly motivated team. Even then, a retreat into the very corner is not appropriate.

Dictatorial
Produce-or-Perish Management | High Results/Low People

Authoritarian managers want to control and dominate their team – possibly for personal reasons, or an unhealthy psychological need. They don’t care about their people, they just want the results of their endeavours. Away from the extreme, this Theory X-like approach can be suitable, in a crisis.

The theory X origin of this behaviour mean managers here prefer to enforce rules, policies and procedures, and can view coercion, reprimands, threats and punishment as effective ways to motivate their team. Short term results can be impressive, but this is not a sustainable management style. Team morale falls rapidly and compromises medium and long-term performance.

Status Quo
Middle-of-the-Road Management | Medium Results/Medium People

This is a compromise and, like all compromises, it is characterised as much by what the manager gives up as by what they put in. A little attention to task and a bit of concern for people sounds like balance, but it also reflects a level of impoverishment – not much concern for either.

This is neither an inspiring, nor developmental approach to management and can only be effective where the team itself can meet the leadership deficits it leaves behind. A good manager could only legitimately use this approach where this one team is a low priority among other competing demands, and the manager is confident they can manage themselves to a large degree. If not, mediocrity will be the best result the manager will achieve from this strategy.

 

Accommodating
Country Club Management | High People/Low Results

Sometimes, you need to rest your team, take your foot off the accelerator, and accommodate their needs. These may be for a break, for team-building, or for development, perhaps.

However, as a long term strategy, it is indulgent, and leads to complacency and laziness among team members. There is little to drive them, yet we know pride in achievement, autonomy, and development are principle workplace motivators. Without a sufficient focus on production, the team will get little of any of these.

The work environment may be relaxed, fun, and harmonious, but it won’t be productive,. The end point will also be a lack of respect, among team members, for the manager’s leadership.

Sound
Team Management | High Production/High People

According to Blake and Mouton, the Team Management style is the most effective approach. This is routed in McGregor’s Theory Y. It is the most solid leadership style, with a balance of strong concern for both the means and the end.

A manager using this style will encourage commitment, contribution, responsibility, and personal and team development. This builds a long-term sustainable and resilient team.

Peaks and troughs in workload and team needs will mean a flexible manager with stray away from the corner from time to time, either towards accommodating or dictatorial styles. But this flexibility and their general concern for both dimensions will prevent them from an unhealthy move right into the corners.

When people are committed to both their organisation and a good leader, their personal needs and production needs overlap. This creates an environment of trust, respect, and pride in the work. The result is excellent motivation and results, where employees feel a constructive part of the company.

Two Additional Styles

After Mouton’s death, Blake continued to refine the model, adding two additional styles.

Opportunistic Management

Some managers are highly opportunistic, and are prepared to exploit any situation, and manipulate their people to do so. This style does not have a fixed location on the grid. Managers adopt whichever behaviour offers the greatest personal benefit. It is the ultimate in flexibility, and is highly effective.

What matters is motivation. Some managers are highly flexible for reasons of great integrity others for purely self-serving reasons.

Paternalistic Management

The loaded label represents a flip-flopping between accommodating ‘Country Club management’ and dictatorial ‘Produce-or-Perish management’. At each extreme, this managerial style is prescriptive about what the team needs and how they will supply it.

The subtlety of sound team management adapting to the team’s needs is not present. Such managers rarely welcome a team trying to exercise its own autonomy. They will feel it as an unwelcome challenge.

 

 

Robert Tannenbaum & Warren Schmidt: Leadership Continuum

Among many types of model of leadership is one that is particularly useful to practical day-to-day managers: situational leadership. And by far the best version of this idea was developed by two UCLA professors, Robert Tannenbaum and Warren Schmidt. Their 1958 article (reprinted in 1973) is one of the most reprinted from Harvard Business Review.

Robert Tannenbaum & Warren Schmidt

Robert Tannenbaum & Warren Schmidt

Robert Tannenbaum

Robert Tannenbaum was born in 1916, in Colorado. He studied at The University of Chicago, gaining an AB in Business Administration in 1937, and his MBA in 1938. The following year, he started his PhD in Industrial Relations also at Chicago, but his studies were interrupted by the war.

After serving as a Lieutenant in the US Navy, he returned to his PhD, which he defended in 1948. From there, he went to teach at the UCLA’s Anderson School of Management, where he remained until his retirement in 1977.

Warren H Schmidt

Warren Schmidt was born in 1920, in Detroit, and took a Bachelor’s degree in Journalism at Wayne State University. He then became ordained as a Lutheran minister.

He changed direction again, and after gaining his PhD in Psychology at Washington University, he went to teach at the University of Southern California and UCLA’s Anderson School of Management, where he met Tannenbaum.

By the by, Schmidt is the first of our Management Thinkers and Doers who has won an Oscar. In 1969, he wrote an Op Ed piece for the LA times, titled ‘Is it Always Right to be Right’. This was well received and turned into a short animated movie, narrated by Orson Welles. It won the Academy Award for Best Short Animated Film in 1970.

The Leadership Behaviours Continuum

In what is regarded as a classic 1958 Harvard Business Review article, ‘How to Choose a Leadership Pattern‘, Robert Tannenbaum and Warren H Schmidt set out a range of leadership behaviours.  They set out seven distinct stages on a continuum, which vary from telling team members their decision, through selling their idea and consulting on the problem, to handing over decision-making.

Tannenbaum & Schmidt - Leadership Behaviour Continuum

Tannenbaum & Schmidt – Leadership Behaviour Continuum
A range of behaviours from the purely authoritarian ‘Manager makes a decision and announces it’ through five intermediate styles, to the most democratic ‘Manager allows group to make a decision’ within appropriate constraints.

Equally valuable is their assessment of how a manager can decide how to lead and choose which of the styles will work best.  They argue you must consider three forces:

  • Forces in the manager
    Your values and style, and your assessment of the risk
  • Forces in the team-members
    Your assessment of their readiness and enthusiasm to assume responsibility
  • Forces in the situation
    Time pressure, the group’s effectiveness, organisational culture

This article is a foundation for what is now known as ‘Situational Leadership, and the two trademarked models developed by Paul Hersey and Kenneth Blanchard.

The Seven Leadership Behaviours

1. Manager makes the decision and announces it
This is a purely authoritarian style of leadership, with no consideration given to other points of view. Most appropriate in a crisis, the manager sets clear instructions and expectations.

2. Manager ‘sells’ their decision
The manager takes  the role of decision-maker but advocates their decision, appealing to  benefits to the group. Valuable when you need the group’s support.

3. Manager presents their decision and invites questions
The manager is still in control, but allows the group to explore the ideas to better understand the decision. The manager answers to their team, without committing to honour their opinions.

4. Manager presents a tentative decision, subject to change
Now the group’s opinions can count. The manager identifies and resolves the problem, but consults their team before making their own decision.

5. Manager presents the problem, gets suggestions and then makes a decision
Still the manager retains ultimate decision-making authority. But now, they share responsibility for finding the solution with the group, who can influence the final decision.

6. Manager defines the limits within which the group makes the decision
Now decision-making sits with the team. The manager defines the problem and sets boundaries within which the group can operate, which may constrain the final decision.

7. Manager allows group to make decision, subject to organisational constraints
The group has as much freedom as the manager is able to grant them. The manager may help the group and again, commits to respect the decision the group arrives at.

For More Information

This model is fully described, with analysis, in The Management Models Pocketbook.

 

GAC RIP 2/5/2010

David Merrill & Roger Reid: Social Styles

Social Styles are a model of personality that focuses on our outer behaviour, rather than the inner you. Its founders described it as ‘the you that’s on display’.

In the early 1960s, two industrial psychologists, David Merrill and Roger Reid wanted to understand whether they could predict managerial, leadership and sales performance. To do this, they explored how people behave in social situations. They chose not to concern themselves with why.

Starting with BF Skinner’s ideas of behaviourism and James Taylor’s structured list of behavioural descriptions, Merrill and Reid discovered that people’s behaviour follows two continua, which they labelled: assertiveness and responsiveness.

Assertiveness and Responsiveness

Assertiveness styles range from ‘asking’ behaviours to ‘telling’ behaviours, while our responsiveness varies from ’emoting’, or displaying our feelings, to ‘controlling’ our emotions.

From these two dimensions, they defined four behavioural styles that we each display. As with other models, we each have our preferences, but can display all of the styles from time to time.

The value of the model lies in using it to assess the people around you, and knowing how to get the best from people with each preference.

Merrill and Reid labelled our ability to adapt to other people’s styles as ‘versatility’.

Four Quadrants: The Social Styles

David Merrill & Roger Reid - Social Styles

David Merrill & Roger Reid – Social Styles

The four quadrants that the two dimensions of assertiveness and responsiveness create, give the four social styles.

Analytical

The analytical style of interaction asserts itself by asking, rather than telling. It is also characterised by a high level of emotional control. It values facts, logic and accuracy, presenting a disciplined and unemotional – some would say cold – face to the world. This manifests in a deep need to be right about things, and therefore a highly deliberative, data-driven approach to decisions. As with all styles, there is a weakness, which is a lack of willingness to state a position until the analytical person is certain of their ground.

Driving

The driving style is the typical task-oriented behaviour that prefers to tell rather than ask and shows little concern for feelings. It cares more about results. This is a fast-paced style, keen to make decisions, take power, and exert control. Often unco-operative, this is an efficient, results-driven behaviour, the inevitable compromise of which is to sacrifice personal relationships in the short term and, in extremis, in the long term too. The weakness of this style is evident: a frequent unwillingness to listen and accommodate the needs of others.

Expressive

The expressive style is also assertive, but uses feelings to achieve its objectives. The behaviour is highly spontaneous and demands recognition and approval, and favours gut instinct in decision-making. At its best, this style comes across as charismatic, enthusiastic and idealistic. At its worst, however, the expressive style can be seen as impulsive, shallow and even manipulative.

Amiable

The amiable style expresses concern for people above all else. Keen to share emotion and not to assert itself over others, building and maintaining relationships dominate behaviour. These concerns manifest a slow, deliberate pace, coming across as sensitive, supportive and dependable. The corollary is a certain nervousness about, and even a resistance to, change. This arises from a deep need for personal security. The weaknesses of this style are the reverse of the strengths of the opposite quadrant: a low willingness to initiate change, and take action.

Assessment of Merrill and Reid’s Social Styles

Is this just another four box model?

Well, yes and no. In its current form, the company that David Merrill formed, Tracom, uses the model with a third, fully-integrated dimension: versatility. This is about how the four styles manifest in the real world, to meet other people’s needs. It is  closely related to ideas of Emotional Intelligence.

Even as ‘just another four box model’, it’s a good one. As a result, it has been widely emulated. A very similar model by Tony Alessandra uses the styles of Thinker, Director, Socialiser and Relater to replace Merrill and Reid’s four social styles, and dimensions of relationship and task orientation, to replace responsiveness and assertiveness.

Both models have considerable power in helping managers understand their behaviours and those of other people around them. And by adapting their style, the models allow managers to get the best from any social situation. And work is, of course, if nothing else… social.

Rensis Likert: Participative Management

Rensis Likert made an important contribution to management in the 1960s, which was to influence many large corporations in the US and Japan. Do you:

a. Strongly Disagree – b. Disagree – c. Neither Agree nor Disagree – d. Agree – e. Strongly Agree

Almost all of us have, at some time, had to use this type of simple perceptual scale. It is called a Likert Scale, after Rensis Likert, who invented it early in his career. But there is more to him than that, as we shall see.

Rensis Likert, 1903 - 1981

Rensis Likert, 1903 – 1981

Short Biography

Rensis Likert was born in 1903, in Cheyenne, Wyoming. In 1922, he went to study Civil Engineering (following his father) at the University of Michigan. However, during a Sociology class in his senior year, he realised he was more interested in people than in things, so switched subject and won his bachelors degree in Sociology and Economics, in 1926. In 1932, he was awarded a PhD for research in the new field of Social Psychology, by Columbia University. As a part of his research he developed a simplified scale for gauging opinions, which bears his name today. His research demonstrated that, despite its simplicity, it was able to achieve equally reliable results, when compared with more sophisticated approaches.

Likert then took on a series of increasingly important roles: lecturer in psychology at New York University, Director of Research at the Life Insurance Agency Management Association, and then  in 1939, he became a Director responsible for surveys at the U.S. Department of Agriculture. Gradually his role in Government surveys expanded, and during the US involvement in the Second World War, he headed up a part of the Office of War Information.

After the war, Government contracted and surveys were no longer mandated by Congress. So Likert, along with his colleagues sought to establish a centre for reseach into surveys at one of the universities. In 1946, they settled at the University of Michigan and founded the Survey Research Center with Likert as its first Director. The centre changed its name in 1949 to the Institute for Social Research (ISR) and has grown and thrived ever since. Likert remained Director until his retirement in 1970, when his co-founder, Angus Campbell, became the second ISR Director.

During the 1950s and 60s, Likert directed his research interest towards management. His 1961 book, New Patterns of Management, proved highly influential. It introduced his four systems of management and articulated his advocacy for ‘System 4‘. He followed this, in 1967, with Human Organization: Its Management and Value. This further detailed System 4, and contains his most widely quoted statement:

‘…the greater the loyalty of the members of a group toward the group, the greater is the motivation among the members to achieve the goals of the group, and the greater is the probability that the group will achieve its goals.’

In 1970, he established his consulting business, Rensis Likert Associates, to capitalise on his thinking, and he also continued to develop and publish his ideas. His 1976 book, New Ways of Managing Conflict, was also very successful.

Rensis Likert died in September 1981.

Likert’s Four Management Systems

Likert articulated four styles of management. We can easily see these as an extension of the Theory X / Theory Y approaches that Douglas McGregor articulated.

Rensis Likert - the Four Systems of Management

Rensis Likert – the Four Systems of Management

The four systems are:

System 1. Exploitative-Authoritative

Decision-making takes place at the top of the organization and these decisions are imposed on others without consultation. There is little sense of teamwork and not much communication, other than threats, which form the primary means of driving performance (motivation). Consequently, it is only upper management who feel any sense of responsibility for the organisation’s goals.

System 2. Benevolent-Authoritative

This is a patriarchal, patronising system based on a master-servant relationship between management and employees. Rewards are the  motivators and teamwork, communication, and a sense of ownership of the organisation’s goals are still minimal.

System 3. Consultative

In this style, managers trust subordinates but not wholly. They motivate with both rewards and involvement, and expect a higher level of responsibility for meeting goals. There is  a moderate amount of teamwork and some communication across and between levels.

System 4. Participative

Participative management is based on trust and confidence in employees. Goals are determined collectively and form a basis for motivation and rewards. This fosters a collective sense of responsibility for meeting company goals, and incentivises collaborative teamwork and open communication.

The Characteristics of Likert’s System 4

Likert felt strongly that System 4 was the optimum system for managing an organisation, as McGregor argued for Theory Y as a means of motivating individuals.

He set out four principal characteristics of successful System 4 management:

  1. Supportive group relationships, both within the group and between the group members and the leader. A sense of care and collaboration.
  2. Each person’s individual contribution, needs, value, and development needs to be equally respected.
  3. The group undertakes problem solving together, and aligns behind their eventual consensus solution.
  4. Different groups overlap, with certain individuals playing the role of ‘linking pin’ between them. These are people whom Karen Stephenson refers to as ‘Gatekeepers’.

This all has a very modern feel to it and it is hard to feel the sense of novelty Likert’s ideas had in the 1960s. This, I suggest, is a measure of the importance of Likert’s ideas. So I choose Option e. Strongly Agree.

Rosemary Stewart: Practical Management

Rosemary Stewart studied management extensively, in the UK. Rather than revolutionary, her ideas serve to underpin the day-to-day challenges real managers face in the real world.

Rosemary Stewart

Rosemary Stewart

Short Biography

Rosemary Stewart was born in London, England, in 1924, and grew up first in Sussex, and then moved to Saskatoon, Canada, where she finished her secondary education. She studied economics at the University of British Columbia and then returned to England in 1945, after graduation (and after the war), to study Social Psychology at the London School of Economics, where she also won her doctorate in Management Studies.

She joined the Acton Society Trust as a researcher, and rose to become its director. There, she researched the challenges of large organisations and, in particular, of the newly nationalised British industries. Her interest persisted and she is best known for her studies into and analysis of Britain’s National Health Service. While at the Acton Society Trust, she worked with Joan Woodward, and Reg Revans was also a researcher there.

After seven years, she joined the new Oxford Centre for Management Studies, which became Templeton College, where she was made a Fellow and then, in 1992, upon her retirement, an Emeritus Fellow. Her long-time interest in healthcare management matured when, in 1996, she became the first Director of the newly founded Oxford Health Care Management Institute.

Rosemary Stewart died in 2015.

The Reality of Management

Rosemary Stewart was a prolific author, although most of her books have fallen out of print. Her three most notable books are still available:

All of her books have a focus on real, day-to-day management challenges, pitched firmly at middle managers. They help managers navigate the choices they need to make and the structures within which they work.

They are neither heavy-weight academic tomes, nor lightweight populist handbooks, and so are ideal for the interested, thinking manager, who wants ideas to help her or him to be effective at work.

Choices for the Manager

In the latest of Stewart’s three classic books, she fully articulates the model with which she is most closely associated. She suggested that management effectiveness arises from dealing well with demands and constraints, and, as a result, making good choices.

Demands, Constraints, & Choices - Rosemary Stewart

Demands, Constraints, & Choices – Rosemary Stewart

The diagram sums up 15 years of Stewart’s research.

Demands

Demands on a manager set out what they must do; their responsibilities or duties. But they also  include the demands we make upon ourselves, alongside those imposed by your organisation, manager, peers, and external players, like customers, suppliers and other stakeholders.

Constraints

These are the factors that will also limit a manager’s scope for choices. If anything, they have grown in number since Stewart originally wrote her list. Whilst we arguably have more technology choices, and more choices of where to outsource work to, she did not account these as constraints. Rather, using the one technology available, in the one location it was sited was something she took as a given.

Choices

What everyone in a creative role knows is that constraints don’t just limit choices, they make them clear and give us scope for innovation. But managers do have a lot of freedom about how they work with the resources they have. How well you exercise these choices will dictate your performance as a manager.

Charles Handy Part 2: The Nature of Organisations

In last week’s Pocketblog, we surveyed the life of Charles Handy, and referred to some of the big ideas in his many books. Now it’s time to look at those ideas.

The Gods of Management

In Handy’s first book, Understanding Organisations, he set out to collate and understand a wide variety of management and organisational thinking. In his second, The Gods of Management, he presented his own ideas. He perceived that organisational cultures can be classified into four broad types, according to how formal their structure is, and how centralised power is, within them. He drew the analogy with the characters of four of the olympian gods, from Greek mythology. He was, after all, an Oxford classics scholar.

The Gods of Management - Charles Handy

The Gods of Management – Charles Handy

Zeus – The Club Culture

Zeus presides over a highly centralised ‘Club’ culture, where one dominant executive holds all the reigns of power, making all of the important decisions themselves. They control al the important resources and can have low acceptance of what they perceive as under-performance. This culture tends to arise under a dominant and successful founder, or with the ascendancy of a charismatic leader. Political parties, start-ups, and crime families often share this culture.

Apollo – The Roles Culture

Mature, bureaucratic organisations adopt a solid, stable, rule-based culture, where everyone has a specific role. People know what is expected of them and will rarely step beyond those boundaries. Reporting lines are well-defined and decisions follow set procedures. Job positions confer authority to make those decisions, and processes can be long-winded and inflexible. Apollo cultures struggle to adapt to a changing environment

Athena – The Task Culture

The Athena culture is a meritocracy, where ability to think and get things done is highly valued, and rewarded well. Talent is well rewarded, and teams are fluid, with people coming together to work on projects and solve problems. Authority is less important here than knowledge, expertise and the ability to influence and persuade. You can see this culture in consultancies, research organisations, and in agile business units of larger, forward thinking businesses that may be stuck with an Apollo or Zeus culture.

Dionysus – The Existential Culture

The Dionysus culture is all about me, me, me. It serves the individuals and can lead to both creative freedom and equally internal discord and unproductive competition. The organisation is little more than the home and resource for a set of self-motivated individuals who often care more about their own position than that of the organisation. Accounting and law firms are good examples, because of the partnership nature of the businesses. So too are pressure groups.

New Organisations

In his 1989 book, The Age of Unreason, Handy started to foresee some of the changes we now take for granted. As technological and commercial realities were shifting, Handy built on his earlier book, The Future of Work, to develop new models of how we would work in the future. He further developed those ideas in The Empty Raincoat, and The Elephant and the Flea. Two of the characteristics of Handy’s books are

  • That they often take management and organisation as their starting point, but then extend their ideas outwards to reflect on the impact of society
  • Each book seems to build on and develop further, the ideas of its predecessor

Here are four of the trends and ideas that most appeal to me as both relevant to our readers, and accurate as forecasts. Inevitably, they interlink into a coherent idea-set.

Portfolio Workers

Handy’s concept of a portfolio career, with lots of components, rather than one single ‘job’ is a reality for many professionals nowadays (including me). The concept of a flexible labourer able to turn his hand to anything from agricultural work to general making and mending, to selling goods at market, to working in a tavern, is ancient. What Handy foresaw (and embraced for himself) was the emergence of this lifestyle for white collar, knowledge workers.

The Shamrock Organisation

This trend will enable what Handy describes as a Shamrock Company.

The Shamrock Organisation - Charles HandyThe Shamrock Organisation - Charles Handy

The Shamrock Organisation – Charles Handy

In the The Age of Unreason, Handy originally described three leaves, but four seems to be a fuller model: the first is the professional core of managers, technocrats, vital support staff, and a minimum of specialists. Together, they define the core competence of the business, and provide and manage its infrastructure. Everything else is provided by contracted workers: outsourced services from specialist providers, contracted independent professionals with highly specialised skills, and a flexible, lower-paid  workforce that can be brought in on short contracts and day-rates.

The Federal Organisation

Berkshire Hathaway seems to me to be the epitome of Handy’s Federal Organisation. Here, there is a tiny core business, managing a large number of highly independent businesses, all of whom have complete autonomy to manage their affairs, and succeed on their own terms. When you see the success that Warren Buffett and Charlie Munger have created, you have to wonder why other large federal multinationals spend so much effort trying to control their subsidiaries, impose processes and functional verticals upon them, and generally over-manage the local talent.

The Triple-I Company

The astonishing rise of internet-based software companies, web-based news aggregators, digital information providers (increasingly, Management Pocketbooks is transitioning to becoming one of these), and the high-tech consultancies that serve them, seems to me to be ample evidence of the prescience of Handy’s third kind of new organisation: one that capitalises, above all, on:

  • Ideas
  • Intelligence
  • Information

Discontinuous Thinking

Handy foresaw our current period of discontinuous change, and suggested that incremental ‘continuous’ thinking was not going to solve the problems it throws up. He doesn’t require us all to have the genius-level intellects of Einstein or Marx, but instead implies we need to build a capacity for curiosity, reframing situations, and constant learning. It seems inevitable that, once again, Pocketblog returns to the thinking of Carol Dweck, on Growth Mindset.

Victor Vroom: Motivation and Decision-making

Why do people make the choices they do at work, and how can managers and leaders make effective decisions? These are two essential questions for managers to understand. They were both tackled with characteristic clear-thinking and rigour by one man.

Victor Vroom

Short Biography

Victor Vroom was born in 1932 and grew up in the suburbs of Montreal. Initially, he was a bright child with little academic interest – unlike his two older brothers. Instead, his passion was big-band jazz music and, as a teenager, he dedicated up to 10 hours a day to practising Alto Sax and Clarinet.

Leaving school, but finding the move to the US as a professional musician was tricky, Vroom enrolled in college and learned, through psychometric testing, that the two areas of interest that would best suit him were music (no surprise) and psychology. Unfortunately, whilst he now enjoyed learning, his college did not teach psychology.

At the end of the year, he was able to transfer, with a full year’s credit, to McGill University, where he earned a BSc in 1953 and a Masters in Psychological Science (MPs Sc) in 1955. He then went to the US to study for his PhD at the University of Michigan. It was awarded to him in 1958.

His first research post was at the University of Michigan, from where he moved to the University of Pennsylvania in 1960 and then, in 1963, to Carnegie Mellon University. He remained there until receiving a second offer from Yale University – this time to act as Chairman of the Department of Administrative Sciences, and to set up a graduate school of organisation and management.

He has remained there for the rest of his career, as John G Searle Professor and, currently, as BearingPoint Professor Emeritus of Management & Professor of Psychology.

Vroom’s first book was Work and Motivation (1964) which introduced the first of his major contributions; his ‘Expectancy Theory’ of motivation. He also collaborated with Edward Deci to produce a review of workplace motivation, Management and Motivation, in 1970. They produced a revised edition in 1992.

His second major contribution was the ‘Vroom-Yetton model of leadership decision making’. Vroom and Philip Yetton published Leadership and Decision-Making in 1973. He later revised the model with Arthur Jago, and together, they published The New Leadership: Managing Participation in Organizations in 1988.

It is also worth mentioning that Vroom had a bruising experience while pursued through the courts by an organisation he had earlier collaborated with. They won their case for copyright infringement so I shall say no more. The judgement is available online. Vroom’s account of this, at the end of a long autobiographical essay, is an interesting read. It was written as part of his presidency of the Society for Industrial and Organizational Psychology in 1980-81.

Vroom’s Expectancy Theory of Motivation

Pocketblog has covered Vroom’s expectancy theory in an earlier blog, and it is also described in detail in The Management Models Pocketbook. It is an excellent model that deserves to be far better known than it is. Possibly the reason is because Vroom chose to express his theory as an equation: bad move! Most people are scared of equations. That’s why we at Management Pocketbooks prefer to use the metaphor of a chain. Motivation breaks down if any of the links is compromised. Take a look at our short and easy to follow article.

The Vroom-Yetton-Jago Model of Leadership Decision-making

This one is  a bit of a handful. Vroom has expressed some surprise that it became a well-adopted tool and, more recently, noted that societies and therefore management styles have changed, rendering it less relevant now than it was in its time. That said, it is instructive to understand the basics.

Decision-making is a leadership role, and (what I shall call) the V-Y-J model is a situational leadership model for what style of decision-making a leader should select.

It sets out the different degrees to which a manager or leader can involve their team in decision-making, and also the situational characteristics that would lead to a choice of each style.

Five levels of Group Involvement in Decision-making

Level 1: Authoritative A1
The leader makes their decision alone.

Level 2: Authoritative A2
The leader invites information and then makes their decision alone.

Level 3: Consultative C1
The leader invites group members to offer opinions and suggestions, and then makes their decision alone.

Level 4: Consultative C2
The leader brings the group together to hear their discussion and suggestions, and then makes their decision alone.

Level 5: Group Consensus
The leader brings the group together to discuss the issue, and then facilitates a group decision.

Choosing a Decision-Making Approach

The V-Y-J model sets out a number of considerations and research indicates that, when a decision approach is chosen that follows these considerations, leaders self-report greater levels of success than when the model is not followed. The considerations are:

  1. How important is the quality of the decision?
  2. How much information and expertise does the leader have?
  3. How well structured is the problem or question?
  4. How important is group-member acceptance of the decision?
  5. How likely is group-member acceptance of the decision?
  6. How much do group members share the organisation’s goals (against pursuing their own agendas)?
  7. How likely is the group to be able to reach a consensus?

A Personal Reflection

I have found both of Vroom’s principal models enormously helpful, both as a project leader and as a management trainer. I find it somewhat sad that, in Vroom’s own words, ‘the wrenching changes at Yale and the … lawsuit have taken their emotional and intellectual toll.’ Two major events created a huge mental and emotional distraction for Vroom in the late 1980s. At a time when he should still have been at the peak of his intellectual powers, he was diverted from his research. I think this is sad and wonder what insights we may have lost as a result.


 

Pocketbooks you might Like

The Motivation Pocketbook – has a short introduction to Vroom’s Expectancy Theory, which it refers to as ‘Valence Theory. It also has a wealth of other ideas about motivation.

The Management Models Pocketbook – has a thorough discussion of Expectancy Theory, and also Motivational Needs Theory, alongside eight other management models.