Management Theories
Business Management: IB Diploma, topic 2.3.2
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.
Test yourself on Management Theories
What does produce leadership focus on?
When will democratic leaders switch to an autocratic style of leadership?