Business studies

1. Behavioral management
approach
Harry Plumptre
Nick Lloyd
Eric Nguyen
Matthew Makhoul
Luke Kyriazis
Lukas Mitterlechner

2. Behavioural Approach
 Scientific management did not always lead to a productive
workforce due to boredom and repetition
 Harvard professor Elton Mayo (1880–1949), founder of the
behavioural approach to management believed in a
humanistic approach.
 worker satisfaction to a large extent is non-economic; that is,
workers have social needs in addition to economic needs
 being made to feel part of a team increases job satisfaction
and output.

3. Management as leading
 “You don’t manage people, you manage things. You
lead people.” Grace Hopper, Admiral, United States
Navy.
 Characteristics of a good leader:
 Keeps an open mind, seeks out new ideas and freely
shares information
 Shows confidence in people, shares credit and
recognition
 Builds and communicates a clear vision
 Sets an example and earns respect of employees
 Delegates tasks to suitable employees
 Demonstrates flexibility in dealing with situations

4. Management as motivating
 Motivated workers are proved to be the most efficient
 Motivated workers will always perform at a higher level than
unmotivated workers despite abilities level
 External factors that motivate employees:
 Increased pay rates
 Improved working condition
 Human factors that motivate employees:
 Recognition
 Self-worth
 Positive reinforcement

5. Management as
Communicating
 Communicating: exchanging information between
people; the sending and receiving of messages.
 Effective communication – important for employees to understand and
more importantly want to ACHIEVE business goals.
 Communication is key in the success of business goals, plans, and overall
financial success.
 Having a common goal is important for business success.

6. “CEO’s should exude a passion and a vision of the
business’s future.” Steve Jobs
Jobs’ charisma and
comfortable persona is part of
the reason Apple have seen
such great success. In
presentations when revealing
new products he can be seen
wearing casual jeans and a
sweater – people all over the
world can relate to him.

7. Communication Activity #1
 Get in to pairs of two’s and have a sheet of paper.
 Without talking, take it in turns to draw components of your
drawing. (i.e. a horizontal line)
 Try and draw a finished picture between you.
 Is it difficult when you are not communicating?
What problems occurred?

8. Teams
• Teamwork involves people who interact regularly and coordinate their work
towards a common goal
• Managers require a good understanding of team/group dynamics
• The development of work teams has resulted in flatter organisational
structures
• The role of managers is changing from controller to facilitator
• Reducing the levels of management gives greater responsibility to individuals
in the business
• Businesses are adopting flatter management structures which results in:
 De-layering of traditional hierarchal structure
 Establishment of market focused work teams
 Each work team responsible for a wide range of production functions

9. Teams

10. Participative or democratic
leadership style
 A manager who asks employees for their suggestions and seriously considers
them.
 They share their decision-making authority with their subordinates.
 It is referred to as the WE APPROACH. Contribution of employees is valued
and regular meetings are held.
 Employees have a commitment to the businesses goals due to their own input
into the firm.
 This style of leadership is most effective in a business environment
undergoing rapid change.
 Employees can therefore implement changes through responsibility making
the business more responsive to change.
 Via activities such as brainstorming, a diverse range of ideas and opinions can
be generated.

11. Participative or democratic
leadership style
 Advantages
 1: communication is a 2 way process
 2: Employee, employer relations are improved.
 3: Motivation and job satisfaction are optimal due to satisfied higher order
(self actualisation needs) amongst employees.
 4: Employees have greater opportunity to acquire more skills.
 5: encourages team building.
 Disadvantages
 1: Reaching decisions and introducing tasks can be time consuming due
to increased opinions.
 2: The role and control of the manager may be weakened.
 3: Internal conflict due to conflicting views may arise.
 4: Not all employees want to contribute.
 5: Organisational structure may be minimised

12. Participative or democratic
leadership style
Carlos Ghosn who is currently chairman and CEO of Paris based
Renault. He is also chairman and CEO of the Renault – Nissan
alliance, the strategic partnership overseeing the two companies
through a unique cross-shareholding agreement. He is also president
and chef executive officer of Nisan Japan. Ghosn believes in
empowering his employees to take decision. He also believes that
change in the organisational structure should come from the bottom
level and not be forced from the top management. He was very
reasonable whilst dealing with his subordinate, he provided them with
challenges to perform better and also made them realise he trusted
them and their capabilities. As a result of taking on a democratic
leadership style, he gained the successful status amongst the 50
most famous men in business and politics.

13. The End
ANY QUESTIONS?