Psychological Contract Theories of Managing

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Luiz, Bruno de Paula

Organization Behavior – Professor Joe Chevarlley

Page 1

Personal Application Assignment– Theories of Managing People A. What is your own theory of management? You can describe it in words or draw it as a model. First, I would like to define theory as “perspectives with which people make sense of their world experiences” and as “a systematic grouping of interdependent concepts (mental images of anything formed by generalization from particulars) and principles (generalizations or hypotheses that are tested for accuracy and appear to be true reflections or explanations of reality) that give a framework to, or tie together, a significant area of knowledge. (Stoner et. al. 1995, pp. 31-2)”. That said, I believe that a manager who makes an effort to translate theory into reality is assured to increase productivity more than a manager who chooses the “trial and error” approach. My own theory of management would be focused on: 1. Motivation. Everyone has a talent. A good manager needs to match the talent of the employee with the tasks in which the employee will utilize their talent, a competitive advantage. I believe that each individual using his/her best talent will feel motivated to do a good job, to achieve his/her personal goals, and to perform their best every day. A good manager provides, and makes sure that, every employee is provided with the guidance and support to achieve their full potential. 2. Development. Development is concerned with encouraging employees to identify ways in which they want to improve their careers and other aspects of their working lives and is concerned with helping people to fulfill themselves at work. 3. Responsibility. A manager must encourage his co-workers to take extra responsibilities within an existing job role to make the work more rewarding and to give a broader range of responsibility, plus extra knowledge as well as skills development. 4. Division of Work and Specialization. Specialization produces more and better work with the same effort. It focuses effort while maximizing employee efforts. It is applicable to all work including technical applications.

Luiz, Bruno de Paula

Organization Behavior – Professor Joe Chevarlley

Page 2

5. Unity of direction and Teamwork. A manager must clarify the outcomes expected, without the steps to achieve them. Team work is fundamentally important for an organization to accomplish its goals. “I not only all the brains that I have but all that I can borrow” Woodrow Wilson said. 6. Remuneration of Personnel. Salaries are the price of services rendered by employees. It should be fair and provide satisfaction both to the employee and employer. 7. Equity and Stability. Employees must feel that their manager treats them with equality, respect, and justice.

Motivation, Development, Responsibility, Division of Work and Specialization, Unity of direction and Teamwork, Remuneration of Personnel, Equity and Stability

Delivers

Engaged Employee

Delivers

Superior Performance Organizational and Individual Targets

Luiz, Bruno de Paula

Organization Behavior – Professor Joe Chevarlley

Page 3

B. Based on your theory of management and today’s environment, answer the following questions: a. What blind spots could your theory lead to have? The blind spots of my theory of managing people are related to Theory X and Theory Y. Douglas McGregor, in his 1960 book “The Human side of Enterprise”, stated a fundamental distinction between management styles. He assumed that workers, who behave as Theory X stated, “…dislike work and will avoid it to the extent possible, therefore they must be continually coerced, controlled and threatened with punishment to get the work done and that they have no ambition prefer to avoid responsibility and chose security above everything. Managers, who believe in theory-X assumptions, create stick-and-carrot approach based firms with restrictive discipline and pervasive controls...
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