Management Theories

Blake Mouton's Theory

Blake Mouton’s grid classifies styles according to whether a manager or leader places more emphasis on concern for people or concern for task completion.

Blake Mouton's Theory

Country club leadership

With country club leadership, there is a real focus on the business’s employees, though this may be an enjoyable place to work, it can be detrimental to the business’s levels of production.
- For example, some Virgin employees have the right to unlimited holidays, which may ensure employee satisfaction, though come at a cost in terms of production and efficiency.

Team leader

A team leadership approach is one that values highly both the importance of task completion but also the importance of people: people are satisfied, as they feel valued, and production is a focus, too.

Produce/Perish leadership

Produce or perish leadership focusses completely on task completion and lacks any focus on the concern for employees (people); the business is so focussed on production that the effect of this on employees is of no concern to the business in any way. For example, some call centres have been accused of focussing heavily on the number of outbound calls made per hour, with no concern for staff wellbeing.

Impoverished leadership

Impoverished leadership lacks any focus whatsoever on either task completion or concern for people and is therefore ineffective. It is often difficult to find examples for this type of leader as leaders in this category usually fail and do not, therefore, become well known.

Middle of the road

Middle of the road leadership provides some focus on both task completion and concern for people, though neither gains the advantage of a full focus so there will be a poorer performance in each area.

Tannenbaum and Schmidt's Theories on Management

Theorists Tannenbaum and Schmidt also propose their own theory about different styles of management & leadership. They show this on their 'management continuum'.

The management continuum

Left of the continuum

At the far left of the continuum, managers maintain full authority and decision making power.
At the far left of the continuum, managers communicate such decisions to employees who have to comply.
The left of the continuum is similar to an approach of autocratic leadership.

Right of the continuum

At the far right of the continuum, employees are given authority and decision making power.
The right of the continuum is similar to an approach of democratic leadership.

Stages on the continuum

Towards the left of the continuum, employees are still informed of decisions, though will be involved in discussions to provide employee buy-in.
Towards the centre-left of the continuum, employees are invited to question and debate ideas, though overall authority is still maintained by the manager.
Towards the centre of the continuum, employees are given an opportunity to inform and challenge decisions and their views may be considered and taken into consideration.
Towards the centre-right of the continuum, employees are actively asked questions and are encouraged to make contributions.
Towards the right of the continuum, employees are given defined freedom to contribute and make decisions.

Changing styles of leadership

If there is a state of emergency, managers and leaders may prefer to retain all decision making and authority.
If managers and leaders require communication to be fast, for example in cases of emergency, like BP’s Deepwater Horizon oil spill which killed 11 people in 2010, a position on the left of the continuum may be appropriate.
If employees’ views are valued, managers and leaders may adopt a position on the right of the continuum so that these views can be gathered from employees.

1Business Organisation & Environment

1.1Introduction to Business Management

1.1.1Why Businesses Exist & Sectors

1.2Types of Organisation

1.2.1Sole Traders

1.2.2Limited Liability

1.2.3Non-Profit

1.2.4Franchising

1.2.5End of Topic Test - Franchising

1.3Organisational Objectives

1.3.1External Environments

1.3.2Business Mission & Corporate Objective

1.3.3Mission, Corporate Objectives & Strategy

1.3.4SWOT Analysis

1.3.5End of Topic Test - SWOT Analysis

1.4Stakeholders

1.4.1Stakeholders

1.5External Environment

1.5.1Social & Technological Environment

1.5.2Lifestyle & Technological Environment

1.5.3Corporate Social Responsibility

1.5.4Economic Environment

1.5.5Political & Legal Change

1.6Growth & Evolution

1.6.1Growth & Retrenchment

1.6.2Challenges of Growth

1.6.3Growth Models

1.6.4End of Topic Test - Diseconomies of Scale

1.6.5Internationalisation

1.6.6Sourcing Resources & Entering Markets

1.6.7End of Topic Test - Internationalisation

1.6.8Managing Internationalisation

1.6.9Impact of Internationalisation

1.7HL Only: Organisational Planning Tools

1.7.1Organisational Planning Tools

2Human Resource Management

2.1Functions & Evolution of Human Resource Management

2.1.1Setting Human Resource Objectives

2.1.2Human Resource Management

2.1.3Labour Turnover & Retention

2.1.4Labour Productivity

2.2Organisational Structure

2.2.1Organisational Structures

2.3Leadership & Management

2.3.1Managers

2.3.2Management Theories

2.3.3End of Topic Test - Management

2.4Motivation

2.4.1Motivating & Engaging Employees

2.4.2Taylor's Theory

2.4.3Maslow's Theory

2.4.4Herzberg's Theory

2.4.5Different Incentives

2.4.6Evaluating Incentives

2.5Organisational (Corporate) Culture

2.5.1Managing Organisational Culture

2.5.2Organisational Structures

2.6HL Only: Industrial/Employee Relations

2.6.1Improving Employer-Employee Relations

2.6.2Case Study - The Winter of Discontent

3Finance & Accounts

3.1Sources of Finance

3.1.1Internal Sources of Finance

3.1.2External Sources of Finance

3.1.3Factors for Financing

3.1.4End of Topic Test - Debt

3.2Costs & Revenues

3.2.1Costs & Revenues

3.3Break-Even Analysis

3.3.1Profit

3.3.2Break-Even Analysis

3.4Profitability & Liquidity Ratio Analysis

3.4.1Profitability Analysis

3.5Cash Flow

3.5.1Cash Flow

3.5.2Solutions to Cash Flow Problems

3.5.3Improving Cash Flow & Profits

3.6HL Only: Investment Appraisal

3.6.1Investment Appraisal

3.7HL Only: Budgets

3.7.1Cash-Flow & Budgets

4Marketing

4.1The Role of Marketing

4.1.1Setting Marketing Objectives

4.1.2Market Calculations

4.2Marketing Planning

4.2.1Marketing Mix

4.2.2Segmentation

4.2.3Niche & Mass Markets

4.3Market Research

4.3.1Market Research

4.3.2Market Mapping

4.3.3Methods of Market Research

4.4The 4 Ps

4.4.1Product Decisions

4.4.2Pricing Decisions & Price Skimming

4.4.3Pricing Decisions & Price Penetration

4.4.4End of Topic Test - Pricing & Competition

4.4.5Promotional Decisions

4.4.6Promotional Decisions 2

4.4.7Promotional Decisions 3

4.4.8Digital Marketing

4.4.9Evaluating Digital Marketing

4.4.10Case Study - The Marketing Mix & Promotion

4.4.11Place & Distribution

4.5HL Only: The Extended Marketing Mix

4.5.1The Extended Marketing Mix

4.6HL Only: International Marketing

4.6.1International Marketing

4.7E-Commerce

4.7.1E-Commerce

5Operations Management

5.1The Role of Operations Management

5.1.1Setting Operational Objectives

5.2Production Methods

5.2.1Production Processes Overview

5.2.2Production Processes

5.2.3Production Efficiency

5.2.4Technology & Production

5.3HL Only: Lean Prodution & Quality Management

5.3.1Importance of Quality

5.3.2Measuring & Identifying Quality

5.3.3Total Quality Management

5.3.4Evaluating Total Quality Management

5.3.5Case Study - Toyota Production System

5.4HL Only: Production Planning

5.4.1Capacity

5.4.2Productivity & Efficiency

5.4.3Technology & Efficiency

5.4.4Improving the Supply Chain

5.4.5Inventory

5.4.6Outsourcing

5.5HL Only: Research & Development

5.5.1Organisational Planning Tools

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