Becoming a master manager a competing values approach pdf

BECOMING A MASTER MANAGER A COMPETING VALUES APPROACH

6TH EDITION

Robert E. Quinn University of Michigan

Sue R. Faerman State University of New York at Albany

Michael P. Thompson Brigham Young University

Michael R. McGrath Executive Education—University of Michigan Graduate School of Business

David S. Bright Wright State University

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Becoming a master manager: a competing values approach/Robert E. Quinn, University of Michigan, Sue R. Faerman, State University of New York at Albany, Micheal P. Thompson, Brigham Young University, Michael R. McGrath, Executive Education, University of Michigan Graduate School of Business, David S. Bright Wright State University.—Sixth edition.

pages cm Includes bibliographical references and index.

ISBN 978-1-118-58258-9 (paperback) 1. Leadership. 2. Executive ability. 3. Management. 4. Organizational behaviour. I. Quinn, Robert E. II. Title. HD57.7.Q8645 2014 658.4'092—dc23

2014038355

Printed in the United States of America 10 9 8 7 6 5 4 3 2 1

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iii

INTRODUCTION TO THE SIXTH EDITION With this sixth edition, nearly 35 years have passed since the competing values framework was first developed. Becoming a Master Manager was one of the first leadership development texts to emphasize, not only the importance of a conceptual understanding of managerial skills, but also the importance of the need to apply these skills through learning exercises. Over the intervening decades, much of leadership education has shifted decisively in the same direction, where the orientation is to learn by doing. The large number of skills-focused texts now attest to the value of our original approach.

Becoming a Master Manager is built on a solid conceptual foundation. The competing values framework is designed to help readers understand the complex and dynamic nature of the organizational world through and exploration of four meta-models. The rational goal model focuses on the need for productivity and profitability, summarized by the impera- tive to compete. Its opposite is the human relations model, which focuses on cohesion and commitment and can be sum- marized by the imperative to collaborate. The internal pro- cess model emphasizes the importance of establishing and maintaining stability and represents the imperative to con- trol. Its opposite is the open systems model, which stresses the importance of adaptability and innovation and represents the imperative to create. Together, these four models provide a holistic perspective on what is required to manage an organiza- tion effectively.

Indeed, one of the signature characteristics of the compet- ing values framework is its emphasis on embracing paradox. It first calls our attention to the fact that managers and leaders are constantly confronted with an array of choices that seem to require tradeoffs. Do we want higher quality OR lower costs? Better conditions for our employees OR faster response times for our customers? Take-charge leaders who have their own vision for the organization OR leaders who invite participation and value the ideas of others?

The framework next calls our attention to the fact that managers must integrate differences. It is difficult to be effec- tive without integrating multiple concerns. A sustainable competitive advantage is really only possible when we find ways to transcend paradox. The most admired organizations now find ways to satisfy the demands of both stakeholders AND shareholders. They find ways to both improve qual- ity AND lower costs, as well as to improve conditions for

employees AND increase customer satisfaction; and their leaders are both visionary AND participative. An understand- ing of the competing values framework shifts our thinking to a both–and approach to management. As a result, it can help current and future managers develop their capacity to act quickly, confidently, imaginatively, and ethically when faced with the paradoxes that are ubiquitous in organizations around the world.

Our approach has grown throughout several years of research and instructional experimentation. In addition to the papers and books we have written, we have also worked with these materials in our university classrooms with under- graduate and graduate students, as well as in management and executive development programs. We have also helped major organizations in both the public and private sectors design large-scale programs to improve the competencies of profes- sional managers. Hundreds of thousands of professional man- agers have completed programs that have used the competing values framework as an underlying foundation and integrat- ing theme. The results have been gratifying and instructive— gratifying because both our students and we were transformed in the process. We hope that the use of this textbook will lead to similar outcomes for you.

CHANGES FROM THE FIFTH EDITION One of the paradoxes we have had to manage is to balance the need for updating a text with the need for continuity. The fifth edition introduced a dramatic restructuring in the presentation of the competencies, and though our thinking continues to evolve, we have chosen to preserve those changes in the cur- rent edition. The changes in this edition are less substantial. Primarily, we have updated the presentation of theoretical ideas in light of emergent research findings. We present a sum- mary of these changes in the introduction to the competencies that follow. We have also revised the exercises for assessment, analysis, practice, and application to be more user-friendly and to reflect current events.

In terms of what remains the same, we have continued to use four modules, rather than eight roles, to encompass the skills associated with leading and managing from the com- peting values perspective. In addition, each module begins by emphasizing organizational goals, paradoxes, and the five competencies that translate the values of the quadrant into practice.

PREFACE

iv Preface

Thus, the key focus of this edition continues to emphasize the fundamental paradoxes that make the practice of manage- ment so complex. Our approach in this edition continues to emphasize competencies in terms of underlying theoretical value intentions, rather than on specific managerial roles. This approach accounts for the fact that in practice, master man- agers must be able to seamlessly navigate between and apply competencies at the same time. In fact, we recognize that the 21 competencies included in this version of the model are all important and complementary in helping a manager achieve the imperatives of any of the four management models. Our placement of the competencies in quadrants is based on find- ings from empirical research, based on the dominant value orientation that underlies them. However, we would never suggest that a competency such as “communicating honestly and effectively” is important only for organizations whose goal is to build and sustain employee commitment. Indeed, the key point of the competing values framework is that ALL these competencies contribute to positive and sustainable organizations.

Finally, with this edition, we also welcome a new coauthor, David Bright, to the team. David has received several teaching awards and has been recognized as an innovative new educa- tor by the Organizational Behavior Teaching Society. We are pleased to have his contribution and insight as we continue to work on the competing values framework in this edition and in the coming years.

INTRODUCTION: THE COMPETING VALUES APPROACH TO MANAGEMENT The introduction explains the competing values framework and how it integrates four contrasting perspectives on organiza- tional effectiveness by describing the evolution of management models. Together with references to the underlying models, we include the action imperative labels as used in previous edi- tions of the text (Collaborate, Control, Compete, and Create) when referring to the quadrants of the framework. However, our presentation strives to emphasize that these terms are a shorthand convenience and thus oversimplify what managers need to do to be successful. We want to encourage readers to remember the criteria of effectiveness and means-ends theories associated with each quadrant of the model. Our hope is that this approach will help readers to appreciate the subtle nuances of the framework as they strive to master, balance, and blend competencies in each area.

As in the prior edition, we briefly explain how the competing values framework relates to organizational culture. This infor- mation may be particularly useful for students who are currently employed. Instructors may wish to have students complete an

organizational culture assessment in Module 3, Competency 4 at the beginning of the course so that they think about how their skills fit with the culture of their current employer.

Next we explain the structured approach to learning used in the text. Each competency section follows the ALAPA approach to learning that has been used in all previous editions of the text. Competencies begin with a preliminary Assessment activity followed by the Learning material. Most competencies include separate exercises for Analysis, Practice, and Applica- tion, and conclude with a Reflection. To provide students with an example of the ALAPA approach, we conclude the Intro- duction with the Thinking Critically competency that was moved to the first chapter in the fourth edition.

MODULE 1—CREATING AND SUSTAINING COMMITMENT AND COHESION As with previous editions, we begin with the human relations model and the Collaborate action imperative. This perspective focuses on creating and sustaining commitment, cohesion, and positive morale.

Paradoxes. From the perspective of the competing values framework, the main paradox of seeking commitment and cohesion is the need to allow for individuals to express their individuality, while needing some level of cohesion in order for the organization to move forward. Whether seeking commit- ment and cohesion in work organizations, clubs, or voluntary organizations, leaders face a number of paradoxes. Three that are discussed in this module include:

Increasing our self-awareness and self-knowledge also increases our capacity to change, so in the process of learning who we are, we become someone new.

Involving people in decision-making processes can increase the effectiveness of the decision, but decrease the efficiency of the process.

Building an effective team may (temporarily) lead to reduced productivity or effectiveness as individuals are given the opportunity to develop new skills and abilities.

Competencies. The five competencies described in this module include understanding self and others, communicating honestly and effectively, mentoring and developing others, manag- ing groups and leading teams, and managing and encouraging constructive conflict. These correspond to the roles of mentor and facilitator as described in previous editions.

Notable updates to these sections include the following: Understanding self and others includes a new assessment

that focuses on positive habits, an updated description of the basic meaning of self-awareness as understood in the emo- tional intelligence literature, and a description of the difference

Preface v

between openness and defensiveness when exploring one’s self. The practice for this section has been changed to better help students to develop and maintain openness.

Mentoring and developing others includes stronger empha- sis on the need for a collaborative, developmental perspective when exercising performance management. We have also clari- fied the steps required to effectively conduct a performance management review, and we emphasize the need for continual, ongoing feedback in the manager–employee relationship.

MODULE 2—ESTABLISHING AND MAINTAINING STABILITY AND CONTINUITY Module 2 covers the internal process model and the Control action imperative. This perspective focuses on establishing and maintaining stability and continuity.

Paradoxes. From the perspective of the overarching com- peting values framework, the primary paradox of seeking stability and control is the need for adaptability and external support. Paradoxes that are especially salient in the internal process quadrant include:

Getting the details right by measuring and monitoring performance and keeping an eye on the big picture without getting bogged down in too many rules and procedures.

Working on cross-functional teams and special projects to help make improvements in organizational processes and still accomplishing day-to-day job objectives.

Following corporate policies and procedures and reinvent- ing policies and procedures to be more effective and efficient.

Competencies. Module 2 includes the competencies of organizing information flows, working and managing across func- tions, planning coordinating projects, measuring and monitoring performance and quality, and encouraging and enabling compli- ance. These correspond to the roles of monitor and coordinator as represented in previous editions. The section on organizing information flows has been updated to reflect some of the chal- lenges associated with digital communication.

MODULE 3—IMPROVING PRODUCTIVITY AND INCREASING PROFITABILITY Module 3 builds on the assumptions of the rational goal model and the Compete action imperative. It emphasizes the impor- tance of vision, goal setting, and execution for competing effectively.

Paradoxes. As noted earlier, the main tension for the rational goal model occurs because of the apparent opposition

between increasing productivity and profitability while creat- ing and sustaining employee commitment. Other paradoxes that hard-driving managers face include:

Expecting the leader to provide a clear vision for the or- ganization while wanting the vision to be based on participa- tive processes.

Making decisions and moving ahead while taking enough time to ensure that all the relevant facts have been appropri- ately analyzed.

Using performance measurement systems to align indi- vidual goals with organizational goals without spending too much time on setting goals and reviewing performance.

Competencies. The five competencies of this module include developing and communicating a vision, setting goals and objectives, motivating self and others, designing and organizing, and promoting change and encouraging adaptability. These cor- respond to the roles of director and producer as described in previous editions.

Notable updates to these sections include the following: The presentation about how to frame and define a vision

has been completely revised to better represent contemporary perspectives.

We now discuss more directly the connection between vision and strategy.

The discussion about organizational structure has been updated to incorporate discussion of both emergent and top- down forms of organizing.

The USPS practice has been updated to provide students with access to current information.

MODULE 4—PROMOTING CHANGE AND ENCOURAGING ADAPTABILITY The final module covers the open systems model, which focuses on change, adaptability, and external support, consist- ent with the Create action imperative.

Paradoxes. Promoting change and encouraging adapta- bility seems to run directly counter to the focus on stability and control identified as so critical by the internal process model, but we also consider more subtle paradoxes in this module. For example:

Expecting leaders to be powerful and at the same time being distrustful of powerful leaders.

Using routines and habits to improve creativity and in- novation.

Increasing resistance to change by increasing pressures to change.

Competencies. This module includes the competencies of using power and influence ethically and effectively, champi- oning and selling new ideas, fueling and fostering innovation,

vi Preface

negotiating agreement and commitment, and implementing and sustaining change. These correspond to the roles of innovator and broker as represented in previous editions.

Notable updates to these sections include the following: The competency, fueling and fostering innovation, has

been updated to provide more perspective on the conditions required to generate creative thinking.

The discussion on implementing and sustaining change now includes a broader perspective on the forces for or against change.

CONCLUSION—INTEGRATION AND THE ROAD TO MASTERY The conclusion returns to the overall competing values frame- work. We begin with a discussion of integration and behav- ioral complexity. We have included a discussion of “Negative Zones” to the text based on instructor feedback. The conclu- sion includes a discussion of the concept of “lift” as proposed by R. W. Quinn and R. E. Quinn (2009). Because the four psychological states that are required for “lift” to occur are consistent with the four quadrants of the competing values framework, this new model adds value without overwhelming students with a completely new approach at the end of the text. We conclude the text with a discussion of the steps in the devel- opmental process, the importance of lifelong learning, and an agenda for self-improvement. Our goal is to remind readers that becoming a master manager is a process that will continue as long as they open themselves to new growth experiences.

HOW TO USE THIS BOOK AND ONLINE ANCILLARIES This book may be used in several ways. It can be employed alone as the main text in a course that is specifically designed to develop competencies, or it can be used with a more traditional text to accomplish the same objective. It can accompany more traditional texts in either an organizational behavior or a man- agement principles course. The text has been used in schools of business, as well as in departments and programs of public and nonprofit management. In addition to the material available in the textbook, there are additional supporting materials avail- able online at (www.wiley.com/college/quinn):

Competing Values Competency Questionnaire Test Bank Instructor’s Manual and PowerPoint Slides

We encourage instructors and students to contact the authors with questions, comments, and suggestions about the text and ancillaries. The authors’ point of contact is David Bright (brightds@gmail.com).

ACKNOWLEDGMENTS Many of the ideas for this book were originally developed in conjunction with two professional development programs designed for New York State. Funding for those programs and for the first edition of this book was provided by the negotiated agreements between the state of New York and the Civil Service Employees Association, Inc., and the Pub- lic Employees Federation, AFL-CIO, and made available through New York State’s Governor’s Office of Employee Relations, Program Planning and Employee Development Division (now Division for Development Services). We par- ticularly thank Don Giek, former Director of the Division for Development Services. Don truly is a master manager, and we respect and appreciate the enormous efforts he made for us and for so many people in and outside of New York State. Laurie Newman DiPadova was also instrumental in the origi- nal development of the first edition of this text, coauthoring the innovator chapter and authoring the original instructor’s manual. We are most appreciative of her efforts. We also would like to thank people who contributed to the Instruc- tor’s Manual with creative and novel essays on alternative teaching methods: Alan Belasen, Meg Benke, and Andrew DiNitto, SUNY-Empire State College; Dan Denison, Uni- versity of Michigan; David Hart, Brigham Young University; Bill Metheny, Montana State University at Billings; Larry Michaelsen, The University of Oklahoma; and Deborah L. Wells, Creighton University.

We greatly appreciate the time and energy donated by all of the reviewers of Becoming a Master Manager. A number of people were asked to review earlier versions of the book, including Vijay Mathur, San Jose State University; Michael Shaner, St. Louis University; Robert Sosna, Golden Gate University; Arnon Reichers, Ohio State University; Meg G. Birdseye, University of Alabama; John D. Bigelow, Boise State University; David E. Blevins, University of Mississippi; Allen Bluedorn, University of Missouri; Kent D. Carter, Univer- sity of Maine at Orono; Paul D. Collins, Purdue University; Daniel Denison, University of Michigan; Laurie N. DiPa- dova, University of Utah; Dennis L. Dossett, University of Missouri–St. Louis; Stuart C. Freedman, University of Lowell; Walter Freytag, University of Washington at Bothell; Richard A. Grover, University of Southern Maine; Ester E. Hamilton, Pepperdine University; Steve Inian, California State Polytech- nic University; Richard B. Ives, Tarrant County Junior Col- lege; Marcia Kassner, University of North Dakota; Kimberlee M. Keef, Alfred University; Gerald D. Klein, Rider Univer- sity; Mark Lengnick-Hall, Wichita State University; David M. Leuser, Plymouth State College; William E. McClane, Loyola College; Edward J. Morrison, University of Colorado at Boulder; Paula C. Morrow, Iowa State University; Ralph

http://www.wiley.com/college/quinn):
mailto:brightds@gmail.com
Preface vii

F. Mullin, Central Missouri State University; Joseph Petrick, Wright State University; Gerald Schoenfeld, James Madison University; Tim Schweizer, Luther College; Gregory Stephens, Texas Christian University; William E. Stratton, Idaho State University; David Szczerbacki, Alfred University; Fred Tesch, Western Connecticut State University; Charles N. Toftoy, Golden State University; Barry L. Wisdom, Southwest Missouri State University; Joseph Weiss, Bentley College; and Mark Wellman, Bowling Green State University. We appreci- ate their many helpful comments and insights.

Many others also contributed to the work of this and/or the earlier editions, and we would like to thank Debbi Berg, Bill Bywater, Chris Dammer, Rachel Ebert, Pauline Farmer, Bruce Hamm, Bill LaFleur, Warren Ilchman, Kary Jablonka, Tom Kinney, Chuck Klaer, Katherine Lawrence, Vicki Marrone, David McCaffrey, Ted Peters, Norma Riccucci, Michael Roberto, Steven Simons, Onnolee Smith, Eugene Thompson, Ben Westery, Angela Wicks, and John Zanetich. All contrib- uted significantly and we are grateful.

Our publisher, John Wiley & Sons, has been an incredible partner through all six editions of this text. The publishing

team for this sixth edition has been especially patient with us as we struggled to balance the many competing demands on our time. We would like to express our sincere appreciation to Brian Baker and Kristen Watson for their assistance. They have our heartfelt gratitude. We also thank Marian Provenzano, Jacqueline Hughes, Christina Volpe, Amanda Dallas, Elle Wagner, and Sangeetha Rajan.

Finally, we thank our families for their continuous support.

Robert E. Quinn Sue R. Faerman Michael P. Thompson Michael R. McGrath David S. Bright

REFERENCE

Quinn, R. W., & Quinn, R. E. (2009). Lift: Becoming a positive force in any situation. San Francisco: Berrett–Koehler.

viii

CONTENTS

PREFACE iii

INTRODUCTION The Competing Values Approach to Management 1

THE EVOLUTION OF MANAGEMENT MODELS 2

Early Twentieth Century: The Emergence of the Rational Goal Model and the Internal Process Model 3

Early to Mid-Twentieth Century: The Emergence of the Human Relations Model 6

Late to Mid-Twentieth Century: The Emergence of the Open Systems Model 7

Late Twentieth Century: The Emergence of Complexity and Integrative Assumptions 9

Early Twenty-First Century: Paradox, Connectivity, and Sustainability 11

THE COMPETING VALUES FRAMEWORK 12

Integrating Ideas about Effectiveness 12 The Use of Opposing Models 14 Behavioral Complexity and the Effectiveness of

Managerial Leaders 15 Action Imperatives and Competencies for Managers 17

ORGANIZING THE LEARNING PROCESS—ALAPA 20

Core Competency: Thinking Critically 22 Assessment: Going Public with Your Reasoning 22 Learning: Thinking Critically 22 Analysis: Argument Mapping 27 Practice: Providing Warrants 29 Application: Reflected Best-Self Portrait 29

RECAP AND PRECOURSE ASSESSMENT 30

MODULE 1 Creating and Sustaining Commitment and Cohesion 33

UNDERSTANDING SELF AND OTHERS 35

Assessment 1: Anchors and Oars 35 Assessment 2: Develop Positive Habits 36 Learning: Understanding Self and Others 37 Analysis: Use the Johari Window to Analyze Behavior 45

Practice: How to Receive Feedback 45 Application: Solicit Feedback 46

COMMUNICATING HONESTLY AND EFFECTIVELY 47

Assessment: Communication Skills 47 Learning: Communicating Honestly and Effectively 48 Analysis: Using the Left-Hand Column to Develop Your

Communication Skills 55 Practice: Using Reflective Listening to Move Thoughts and

Feelings to the Right-Hand Column: The Case of Stacy Brock and Terry Lord 56

Application: Developing Your Reflective Listening Skills 57

MENTORING AND DEVELOPING OTHERS 58

Assessment: Assumptions about Performance Evaluations 58 Learning: Mentoring and Developing Others 59 Analysis: United Chemical Company 67 Practice: What Would You Include in the Performance

Evaluation? 69 Application: Developing Your Capacity to Develop Others 70

MANAGING GROUPS AND LEADING TEAMS 70

Assessment: Are You a Team Player? 70 Learning: Managing Groups and Leading Teams 72 Analysis: Stay-Alive Inc. 85 Practice: Ethics Task Force 86 Application: Team-Building Action Plan 87

MANAGING AND ENCOURAGING CONSTRUCTIVE CONFLICT 88

Assessment: How Do You Handle Conflict? 88 Learning: Managing and Encouraging Constructive

Conflict 90 Analysis: Zack’s Electrical Parts 100 Practice: Win as Much as You Can 101 Application: Managing Your Own Conflicts 102

MODULE 2 Establishing and Maintaining Stability and Continuity 108

ORGANIZING INFORMATION FLOWS 109

Assessment: Identifying Data Overload and Information Gaps 109

Learning: Organizing Information Flows 110

Contents ix

Analysis: Deciding What to Do with Data Inflows Using the Traffing Method 117

Practice: Making Messages Clear, Concise, and Complete 118 Application: Directing Your Own Data and Information

Traffic 118

WORKING AND MANAGING ACROSS FUNCTIONS 119

Assessment: Mapping Your Organization 119 Learning: Working and Managing Across Functions 120 Analysis: Errors in the Design? 126 Practice: Student Orientation 127 Application: Examining a Cross-Functional Team 128

PLANNING AND COORDINATING PROJECTS 128

Assessment: Project Planning 128 Learning: Planning and Coordinating Projects 129 Analysis: Planning a Training Course 141 Practice: The Job Fair 143 Application: Managing Your Own Project 143

MEASURING AND MONITORING PERFORMANCE AND QUALITY 144

Assessment: Identifying Appropriate Performance Criteria 144 Learning: Measuring and Monitoring Performance and

Quality 145 Analysis: Improving Performance in the Health Care

Industry 151 Practice: Developing Education Performance Metrics 152 Application: Developing Performance Metrics for

Your Job 153

ENCOURAGING AND ENABLING COMPLIANCE 153

Assessment: Reactions to Methods of Encouraging Compliance 153

Learning: Encouraging and Enabling Compliance 154 Analysis: Strategies Used by the United States to Increase

Compliance 164 Practice: Moving Compliance Outside the Workplace 164 Application: Your Organization’s Compliance Policies and

Practices 165

MODULE 3 Improving Productivity and Increasing Profitability 170

DEVELOPING AND COMMUNICATING A VISION 171

Assessment: How You Develop and Communicate Vision 171

Learning: Developing and Communicating a Vision 172 Analysis: Doug Fecher, Wright-Patt Credit Union 179 Practice: Crafting Your Leadership Story 181 Application: Envisioning Your Career 182

SETTING GOALS AND OBJECTIVES 183

Assessment: Identifying Your Personal Goals 183 Learning: Setting Goals and Objectives 183 Analysis: Objectives Don’t Work for Me 191 Practice: Creating an Implementation Plan 193 Application: Evaluating the Use of Goal Setting in Your

Organization 194

MOTIVATING SELF AND OTHERS 194

Assessment: When Are You the Most Motivated and Productive? 194

Learning: Motivating Self and Others 195 Analysis: From Motivated to Demotivated in 60 Seconds 206 Practice: Empowerment and Engagement 208 Application: When Are You and Your Colleagues the Most

Motivated and Productive? 210

DESIGNING AND ORGANIZING 211

Assessment: Assessing Organizational Culture 211 Learning: Designing and Organizing 212 Analysis: Responding to Environmental Challenges 225 Practice: USPS: Prescribe a Possible Future 226 Application: Understanding the Design of Your Company 226

MANAGING EXECUTION AND DRIVING FOR RESULTS 227

Assessment: Your Leadership Task Orientation 227 Learning: Managing Execution and Driving for Results 228 Analysis: Execution and Results in a Crisis Situation 235 Practice: Examining the Impact of a New CEO on

Execution and Results 236 Application: Know Your Time 236

MODULE 4 Promoting Change and Encouraging Adaptability 242

USING POWER AND INFLUENCE ETHICALLY AND EFFECTIVELY 243

Assessment: Who Is Powerful? 243 Learning: Using Power Ethically and Effectively 244 Analysis: “I Hope You Can Help Me Out”: Don Lowell

Case Study 253 Practice: The Big Move 254 Application: Building Your Power Base by Changing Your

Influence Strategy 256

x Contents

CHAMPIONING AND SELLING NEW IDEAS 256

Assessment: The Presenter’s Touch: You May Have It but Not Know It 256

Learning: Championing and Selling New Ideas 257 Analysis: Applying Communication Tools to Evaluate a

Presentation 268 Practice: Improving a Memo Requesting Additional

Personnel 269 Application: You Be the Speaker 270

FUELING AND FOSTERING INNOVATION 271

Assessment: Are You a Creative Thinker? 271 Learning: Fueling and Fostering Innovation 272 Analysis: Creativity and Managerial Style 281 Practice: Encouraging Creative Thinking 281 Application 1: Import an Idea 282 Application 2: New Approaches to the Same Old

Problem 283

NEGOTIATING AGREEMENT AND COMMITMENT 283

Assessment: How Effective Are You at Negotiating Agreement? 283

Learning: Negotiating Agreement and Commitment 284 Analysis: Your Effectiveness as a Negotiator 290 Practice: Standing on the Firing Line 291 Application: Negotiating at Work 293

IMPLEMENTING AND SUSTAINING CHANGE 294

Assessment: Changes in My Organization 294 Learning: Implementing and Sustaining Change 294 Analysis: Reorganizing the Legal Division 305 Practice: Understanding Your Own Influence 307 Application: Planning a Change 307

CONCLUSION Integration and the Road to Mastery 312

Assessment: Reexamining Your Personal Competencies 313 Learning: Integration and the Road to Mastery 315 Analysis: Looking for Behavioral Complexity and Lift 327 Practice: Generating Lift to Support a Planned Change 328 Application: Your Strategy for Mastery 328

INDEX 330

1

CONTROL

IN TE

R N

A L

FLEXIBILITY

EX

TER N

A L

CREATECOLLABORATE

CONTROL COMPETE

Commitment &

Cohesion

Change &

Adaptability

Stability &

Continuity

Productivity &

Profitability

COMPETING VALUES

FRAMEWORK

This book is about how to develop the competencies of an effective manager and leader, what we refer to in this text as a managerial leader. Managerial leaders are critical to the success of an organization. They establish a climate for the relationships that exist between people, they make sure that the right tasks are identified and accomplished, and they guide the organization’s efforts to adapt and change and grow.

Becoming a more effective manager and leader is a lifelong process of learning to tran- scend paradox. A paradox exists when two seemingly inconsistent or contradictory ideas are actually both true. For example, the claim that “to be a good leader, you must be a good follower” is paradoxical because leaders and followers are generally thought to be engaged in opposite types of behaviors.

The competing values approach to management outlined in this text is based on the idea that to be effective, managers must navigate a world filled with paradoxes. Managers are often called on to do things that at first glance appear to be mutually exclusive. For example, they must focus on the future at the same time that they pay attention to the present. Managers must meet the needs of their employees while pushing those same employees to do more with less to satisfy increasingly demanding customers ever more quickly. Managers must encourage innovation and risk taking while ensuring the stability and continuity of the organization. In short, managers must embrace a diverse set of values that often appear to be contradictory. The competing values approach to management looks for ways to transcend paradox and redefine what is possible.

For most people, transcending paradox requires some serious rethinking of existing beliefs. We all have beliefs, and we all make assumptions about the right way to do things. This is

THE COMPETING VALUES APPROACH TO MANAGEMENT

j FOUNDATIONS

Learning Objectives ■ The Evolution of Management Models j The Competing Values Framework j Organizing the Learning Process—ALAPA j Core Competency: Thinking Critically

2 The Competing Values Approach to Management

certainly true when it comes to managerial leadership. Although our beliefs and assumptions can make us effective, they can sometimes make us ineffective (House & Podsakoff, 1994). When they do make us ineffective, it often is hard to understand why—particularly when those beliefs seemed to work so well in the past.

For example, many new managers are promoted because they were highly successful as entry-level employees. Yet, they soon discover that the skill set they had mastered in their old position does not match what is required to be successful in their new position. In such moments, it is often difficult for people to understand why they are less effective. They will continue to struggle unless they learn how to step back and reflect on what is really happening, what the situation calls for, and how their assumptions and beliefs may be getting in the way of success.

Many people are not very experienced at examining their basic beliefs and assumptions. They have a hard time adopting new assumptions or learning skills and competencies that are associated with those new assumptions. Self-analysis is a skill that can be developed. Sometimes it takes a crisis to stimulate such change. Consider the following case.

I have always seen myself as a man who gets things done. After 17 years with a major pharmaceutical com- pany, I was promoted to general manager in the international division. I was put in charge of all Southeast Asian operations. The unit seemed pretty sloppy to me. From the beginning I established myself as a tough, no-nonsense leader. If someone came in with a problem, he or she knew to have the facts straight or risk real trouble. After three months I began to feel like I was working myself to exhaustion, yet I could point to few real improvements. After six months or so, I felt very uneasy but was not sure why.

One night I went home and my wife greeted me. She said, “I want a divorce.” I was shocked and caught off balance. To make a long story short, we ended up in counseling.

Our counselor taught me how to listen and practice empathy. The results were revolutionary. I learned that communication happens at many levels and that it’s a two-way process. My marriage became richer than I had ever imagined possible.

I tried to apply what I was learning to what was going on at work. I began to realize that there was a lot going on that I didn’t know about. People couldn’t tell me the truth because I would chop their heads off. I told everyone to come to me with any problem so that we could solve it together. Naturally, no one believed me. But after a year of proving myself, I am now known as one of the most approachable people in the entire organization. The impact on my division’s operation has been impressive.

The man in the preceding case had a problem of real significance. The lives of many people, including subordinates, superiors, customers, and even his family members, were being affected by his actions. He was less successful than he might have been because of his beliefs about what a leader is supposed to do. For him, good management meant tight, well-organized operations run by tough-minded, aggressive leaders. His model was not all wrong, but it was inadequate. It limited his awareness of important alternatives and, thus, kept him from performing as effec- tively as he might have. Fortunately, this man was able both to rethink his beliefs and to alter his behavior to reflect a more complex and effective approach to management.

THE EVOLUTION OF MANAGEMENT MODELS

It turns out that nearly everyone has beliefs or viewpoints about what a manager should do. In the study of management, these beliefs are sometimes referred to as models. There are many different kinds of models. Although some are formally written or otherwise explicit, others,

The Evolution of Management Models 3

like the assumptions of the general manager, are informal. Because models affect what happens in organizations, we need to consider them in some depth.

Models are representations of a more complex reality. A model airplane, for example, is a physical representation of a real airplane. Models help us represent, communicate ideas about, and better understand more complex phenomena in the real world.

A model that attempts to describe a social phenomenon represents a set of assumptions about what is happening and why. By giving us a general way of seeing and thinking about that phenomenon, the model provides us with a particular perspective about a more complex reality. Although models can help us see some aspects of a phenomenon, they can also blind us to other aspects. The general manager mentioned previously, for example, had such strongly held beliefs about order, authority, and direction that he was unable to see some important aspects of the reality that surrounded him.

Unfortunately, our models of management are often so tied to our identity and emotions that we find it very difficult to learn about and appreciate different models. Because of the complexity of life, however, we often need to call upon more than one model. When we can see and evaluate more alternatives, our degree of choice and our potential effectiveness can be increased (Senge, 1990).

The models held by individuals often reflect models held by society at large. During the twentieth century, a number of management models emerged. Understanding these models and their origins can give managers a broader understanding of behavior in organizations and a wider array of choices.

Our models and definitions of management keep evolving. As societal values change, existing viewpoints alter, and new models of management emerge (Fabian, 2000). These new models are not driven simply by the writings of academic or popular writers; or by managers who introduce an effective new practice; or by the technical, social, or political forces of the time. These models emerge from a complex interaction among all these factors. In this sec- tion, we will look at four major management models and how they evolved from the changing conditions of the twentieth century. Table I.1 at the end of this section provides a summary of all four models. The following discussion draws on the historical work of Mirvis (1985). The time periods represented in this section are inexact, though each model appears to have been prominent for the highlighted period of time. Moreover, keep in mind that although new models typically emerge in response to problems with earlier models, the emergence of each new model does not mean that old models were completely wrong and were forgotten. Rather, some aspects of earlier models are still very relevant. Just as important, many people continue to hold onto the beliefs and assumptions they developed using an earlier model, so their deci- sions continued to reflect the assumptions of that earlier model.

EARLY TWENTIETH CENTURY: THE EMERGENCE OF THE RATIONAL GOAL MODEL AND THE INTERNAL PROCESS MODEL

The first 25 years of the twentieth century were a time of exciting growth and progress that ended in the high prosperity of the Roaring Twenties. As the period began, the economy was characterized by rich resources, cheap labor, and laissez-faire policies. In 1901, oil was discov- ered in Beaumont, Texas. The age of coal became the age of oil and, soon after, the age of inexpensive energy. Technologically, it was a time of invention and innovation as tremendous advances occurred in both agriculture and industry. The workforce was heavily influenced by

4 The Competing Values Approach to Management

immigrants from all over the world and by people leaving the shrinking world of agriculture. The average level of education for these people was 8.2 years. Most were confronted by serious financial needs. There was little, at the outset of this period, in terms of unionism or govern- ment policy to protect workers from the demanding and primitive conditions they often faced in the factories.

One general orientation of the period was social Darwinism: the belief in “survival of the fittest.” Given this orientation, it is not surprising that Acres of Diamonds, by Russell Conwell, was a very popular book of the time. The book’s thesis was that it was every man’s Christian duty to be rich. The author amassed a personal fortune from royalties and speaking fees.

These years saw the rise of the great individual industrial leaders. Henry Ford, for exam- ple, not only implemented his vision of inexpensive transportation for everyone by producing the Model T, but also applied the principles of Frederick Taylor to the production process. Taylor was the “father” of scientific management (see Theoretical Perspective I.1). He intro- duced a variety of techniques for “rationalizing” work and making it as efficient as possible. Using Taylor’s ideas, in 1914 Henry Ford introduced the assembly line and reduced car assembly time from 728 hours to 93 minutes. In six years, Ford’s market share went from just under 10 percent to just under 50 percent. The wealth generated by the inventions, produc- tion methods, and organizations themselves was an entirely new phenomenon.

Rational Goal Model. It was in this historical context that the first two models of man- agement began to emerge. The first is the rational goal model. The symbol that best repre- sents this model is the dollar sign, because the ultimate criteria of organization effectiveness are productivity and profit. The basic means-ends assumption in this approach is the belief that clear direction leads to productive outcomes. Hence, there is a continuing emphasis on processes such as goal clarification, rational analysis, and action taking. The organizational cli- mate is rational economic, and all decisions are driven by considerations of “the bottom line.” If an employee of 20 years is producing at only 80 percent efficiency, the appropriate decision is clear: Replace the employee with a person who will contribute at 100 percent efficiency. In the rational goal model, the ultimate value is achievement and profit maximization. To ensure that those goals are met, managers are expected to be decisive and task oriented.

Stories abound about the harsh treatment that supervisors and managers inflicted on employees during this time. In one manufacturing company, for example, a toilet was placed in the center of the shop floor and was surrounded by glass windows, so that the supervisor could see who was inside and how long the person stayed.

THEORETICAL PERSPECTIVE I .1

TAYLOR’S FOUR PRINCIPLES OF MANAGEMENT 1. Develop a science for every job, which replaces the old rule-of-thumb method.

2. Systematically select workers so that they fit the job, and train them effectively.

3. Offer incentives so that workers behave in accordance with the principles of the science that has been developed.

4. Support workers by carefully planning their work and smoothing the way as they do their jobs.

Source: Adapted from Frederick W. Taylor, The Principles of Scientific Management (New York: Harper and Brothers, 1911), 44.

The Evolution of Management Models 5

Internal Process Model. The second model is called the internal process model. While its most basic hierarchical arrangements had been in use for centuries, during the first quarter of the twentieth century, it rapidly evolved into what would become known as the “profes- sional bureaucracy.” The basic notions of this model would not be fully codified, however, until the writings of Max Weber and Henri Fayol were translated in the middle of the next quarter century (see Theoretical Perspectives I.2 and I.3). This model is highly complementary

THEORETICAL PERSPECTIVE I .2

FAYOL’S GENERAL PRINCIPLES OF MANAGEMENT 1. Division of work. The object of division of work is to produce more and better work with the same effort. It is

accomplished through reduction in the number of tasks to which attention and effort must be directed.

2. Authority and responsibility. Authority is the right to give orders, and responsibility is its essential counterpart. Whenever authority is exercised, responsibility arises.

3. Discipline. Discipline implies obedience and respect for the agreements between the firm and its employees. These agreements are arrived at by discussion between an owner or group of owners and worker’s associations. The establishment of such agreements should remain one of the chief preoccupations of industrial heads. Discipline also involves sanctions judiciously applied.

4. Unity of command. An employee should receive orders from one superior only.

5. Unity of direction. Each group of activities having one objective should be unified by having one plan and one head.

6. Subordination of individual interest to general interest. The interest of one employee or group of employees should not prevail over that of the company or broader organization.

7. Remuneration of personnel. To maintain their loyalty and support, employees must receive a fair wage for ser- vices rendered.

8. Centralization. Like division of work, centralization belongs to the natural order of things. The appropriate degree of centralization, however, will vary with a particular concern, so it becomes a question of the proper proportion. It is a problem of finding the measure that will give the best overall yield.

9. Scalar chain. The scalar chain is the chain of superiors ranging from the ultimate authority to the lowest ranks. It is an error to depart needlessly from the line of authority, but it is an even greater one to adhere to it when detriment to the business could ensue.

10. Order. A place for everything, and everything in its place.

11. Equity. Equity is a combination of kindliness and justice.

12. Stability of tenure of personnel. High turnover increases inefficiency. A mediocre manager who stays is infinitely preferable to an outstanding manager who comes and goes.

13. Initiative. Initiative involves thinking out a plan and ensuring its success. This gives zeal and energy to an organization.

14. Esprit de corps. Union is strength, and it comes from the harmony of the personnel.

Source: Abridged from Henri Fayol, General and Industrial Administration (New York: Pitman, 1949), 20–41.

6 The Competing Values Approach to Management

to the rational goal model. Here the symbol is a pyramid, and the criteria of effectiveness are stability and continuity. The means-ends assumption is based on the belief that routinization leads to stability. The emphasis is on processes such as definition of responsibilities, measure- ment, documentation, and record keeping. The organizational climate is hierarchical, and all decisions are colored by the existing rules, structures, and traditions. If an employee’s effi- ciency falls, control is increased through the application of various policies and procedures. In this model, managers are expected to be technically expert and highly dependable, focusing on coordinating and monitoring workflows for efficiency and effectiveness.

EARLY TO MID-TWENTIETH CENTURY: THE EMERGENCE OF THE HUMAN RELATIONS MODEL

The second quarter of the century brought events of enormous proportions. The stock market crash of 1929, the Great Depression, and World War II would affect the lives and outlook of generations to come. During this period, the economy would boom, crash, recover with the war, and then, once again, offer bright hopes. Technological advances would continue in all areas, but particularly in agriculture, transportation, and consumer goods. The rational goal model continued to flourish. With the writings of Henri Fayol, Max Weber, and others, the internal process model would be more clearly articulated. In fact, some of the greatest atroci- ties of this era have been attributed to an excessive dependence on the values of the rational goal model. For example, the Nazis’ killing of the Jews and other minorities was justified as a rational extension of Darwinist logic that was carried out in a very systematic, orderly manner. It became clear that the rational goal and internal process models created significant problems if left unchecked by other values.

Soon, fundamental changes began to appear in the fabric of society during the second quarter of the century. Unions, now a significant force, adhered to an economic agenda that

THEORETICAL PERSPECTIVE I .3

CHARACTERISTICS OF WEBERIAN BUREAUCRACY Elements of Bureaucracy

1. There is a division of labor with responsibilities that are clearly defined.

2. Positions are organized in a hierarchy of authority.

3. All personnel are objectively selected and promoted based on technical abilities.

4. Administrative decisions are recorded in writing, and records are maintained over time.

5. There are career managers working for a salary.

6. There are standard rules and procedures that are uniformly applied to all.

Source: Adapted from Max Weber, The Theory of Social and Economic Organizations, ed. A. M. Henderson and Talcott Parsons (trans.) (New York: Free Press, 1947), 328–337.

The Evolution of Management Models 7

brought an ever-larger paycheck into the home of the American worker. Industry placed a heavy emphasis on the production of consumer goods. By the end of this period, new labor- saving machines were beginning to appear in homes. There was a sense of prosperity and a concern with recreation as well as survival. Factory workers were not as eager as their par- ents had been to accept the opportunity to work overtime. Neither were they as likely to give unquestioning obedience to authority. Hence, managers found that the rational goal and internal process models did not equip them to be as effective as they once were. They began to realize the need to pay attention, not only to efficiency and production, but also to the needs of the people who worked for them.

Not surprisingly, one of the most popular books written during this period was Dale Carnegie’s How to Win Friends and Influence People. It provided much-desired advice on how to relate effectively to others. In the academic world, Chester Barnard pointed to the significance of the “informal” organization and the fact that informal relationships, if man- aged properly, could be powerful tools for the manager. Also during this period, Elton Mayo and Fritz Roethlisberger carried out their work in the famous Hawthorne studies. One well- known experiment carried out by these two researchers concerned levels of lighting. Each time they increased the levels of lighting, employee productivity went up. However, when they decreased the lighting, productivity also went up. They eventually concluded that what was really stimulating the workers was the attention being shown them by the researchers. The results of these studies were also interpreted as evidence of a need for an increased focus on the power of relationships and informal processes in the performance of human groups.

Human Relations Model. By the end of the second quarter of the century, the emerging orientation was the human relations model. In this model, the key emphasis is on commit- ment, cohesion, and morale. The means-ends assumption is that involvement results in com- mitment, and the key values are participation, conflict resolution, and consensus building. Because of an emphasis on equality and openness, the appropriate symbol for this model is a circle. The organization takes on a clan-like, team-oriented climate in which decision-making is characterized by deep involvement. Here, if an employee’s efficiency declines, managers take a developmental perspective and look at a complex set of motivational factors. They may choose to alter the person’s degree of participation or opt to examine a host of other social psy- chological variables. Managers are expected to be empathetic and open to employee opinions; key activities include mentoring individuals and facilitating group and team processes.