IAT 3 – PART B (UNIT 4 & 5)

1. Discuss about the different modes of communication along with their merits
and demerits. Also highlight role of IT in today’s communication. (N 20)

Managers have a wide variety of communication methods from which to choose. These include
face-to-face, telephone, group meetings, formal presentations, memos, traditional mail, fax
machines, employee publications, bulletin boards, other company publications, audio- and
videotapes, hot lines, electronic mail, computer conferencing, voice mail, teleconferences, and
videoconferences. All of these communication channels include oral or written symbols, or
both.

Managers have a wide variety of communication methods from which to choose and can use 12
questions to help them evaluate these methods.

1. Feedback: How quickly can the receiver respond to the message?

2. Complexity capacity: Can the method effectively process complex messages?

3. Breadth potential: How many different messages can be transmitted using this method?

4. Confidentiality: Can communicators be reasonably sure their messages are received only by
those intended?

5. Encoding ease: Can sender easily and quickly use this channel?

6. Decoding ease: Can receiver easily and quickly decode messages?

7. Time-space constraint: Do senders and receivers need to communicate at the same time and in
the same space?

8. Cost: How much does it cost to use this method?

9. Interpersonal warmth: How well does this method convey interpersonal warmth?

10. Formality: Does this method have the needed amount of formality?

11. Scanability: Does this method allow the message to be easily browsed or scanned for relevant
information?

12. Time of consumption: Does the sender or receiver exercise the most control over when the
message is dealt with?
An important part of interpersonal communication is nonverbal communication—that is,
communication transmitted without words. Some of the most meaningful communications are
neither spoken nor written.

Among these various forms of nonverbal communication, the best-known types are body
language and verbal intonation.

Body language refers to gestures, facial expressions, and other body movements that convey
meaning. Hand motions, facial expressions, and other gestures can communicate emotions or
temperaments such as aggression, fear, shyness, arrogance, joy, and anger.

Verbal intonation refers to the emphasis someone gives to words or phrases in order to convey
meaning.

Role of IT in today’s communication

How Technology Affects Managerial Communication

Two IT developments that are most significant for managerial communication are networked
systems and wireless capabilities.
NETWORKED SYSTEMS. In a networked system, an organization’s computers are linked.
Organizational members can communicate with each other and tap into information whether
they’re down the hall, cross town, or halfway across the world. Some of its communication
applications include e-mail; instant messaging; social media such as blogs, wikis, and Twitter;
webinars; voice-mail; fax; teleconferencing and videoconferencing; and intranets.
WIRELESS CAPABILITIES.
wireless communication technology has the ability to improve work for managers and
employees. Even Internet access is available through Wi-Fi and WiMax hot spots, which are
locations where users gain wireless access. The number of these hot spot locations continues to
grow. And the number of mobile communication users keeps increasing. As wireless technology
continues to improve, it is a way to collaborate and share information.
How Information Technology Affects Organizations
Communication and the exchange of information among organizational members are no longer
constrained by geography or time. Collaborative work efforts among widely dispersed
individuals and teams, sharing of information, and integration of decisions and work throughout
an entire organization have the potential to increase organizational efficiency and effectiveness.
Communication Issues in Today’s Organizations
Methods of Communicating Interpersonally

E-mail is the instantaneous transmission of written messages on computers that are linked together.
Messages wait at the receiver's computer and are read at the receiver's convenience. E-mail is fast
and cheap and can be used to send the same message to numerous people at the same time. It's a
quick and convenient way for organizational members to share information and communicate.
Some organizational members who find e-mail slow and cumbersome are using instant messaging
(IM). This is interactive real-time communication that takes place among computer users who are
logged onto the computer network at the same time. IM first became popular among teens and
preteens who wanted to communicate with their friends online. Now, it's moving to the workplace.
With IM, there's no waiting around for a colleague to read e-mail. Whatever information needs to be
communicated can be done so instantaneously. However, there are a couple of drawbacks to instant
messaging. It requires groups of users to be logged on to the organization's computer network at the
same time. This leaves the network open to security breaches. Also, IM software is currently
incompatible with important business applications software. However, as new versions of IM
software are created, these drawbacks are likely to be addressed.
A voice-mail system digitizes a spoken message, transmits it over the network, and stores the
message on disk for the receiver to retrieve later. This capability allows information to be
transmitted even though a receiver may not be physically present to take the information. Receivers
can choose to save the message for future use, delete it, or route it to other parties.
Fax machines allow the transmission of documents containing both text and graphics over ordinary
telephone lines. A sending fax machine scans and digitizes the document. A receiving fax machine
reads the scanned information and reproduces it in hard copy form. Information that is best viewed
in printed form can be easily and quickly shared by organizational members.
Electronic data interchange (EDI) is a way for organizations to exchange standard business
transaction documents, such as invoices or purchase orders, using direct computer-to-computer
networks. Organizations often use EDI with vendors, suppliers, and customers because it saves time
and money. How? Information on transactions is transmitted from one organization's computer
system to another through a telecommunications network. The printing and handling of paper
documents at one organization are eliminated as is the inputting of data at the other organization.
Meetings—one-on-one, team, divisional, or organization-wide—have always been one way to share
information. The limitations of technology used to dictate that meetings take place among people in
the same physical location.
Teleconferencing allows a group of people to confer simultaneously using telephone or e-mail
group communications software. If meeting participants can see each other over video screens, the
simultaneous conference is called videoconferencing. Work groups, large and small, which might be
in different locations, can use these communication network tools to collaborate and share
information.
Networked computer systems have allowed the development of organizational intranets and
extranets. An intranet is an organizational communication network that uses Internet technology and
is accessible only by organizational employees. Many organizations are using intranets as ways for
employees to share information and collaborate on documents and projects from different locations.

2. Describe the stages in group development process. (N 19)

Group is defined as two or more interacting and interdependent individuals who come
together to achieve specific goals. Formal groups are work groups that are defined by the
organization’s structure and have designated work assignments and specific tasks directed
at accomplishing organizational goals. Informal groups are social groups. These groups
occur naturally in the workplace and tend to form around friendships and common interests.
Groups develop through five stages. These five stages are forming, storming, norming,
performing, and adjourning.
The forming stage has two phases. The first occurs as people join the group. In a formal
group, people join because of some work assignment. Once they’ve joined, the second
phase begins: defining the group’s purpose, structure, and leadership. This phase involves a
great deal of uncertainty as members “test the waters” to determine what types of behavior
are acceptable. This stage is complete when members begin to think of themselves as part
of a group.
The storming stage is appropriately named because of the intragroup conflict. There’s
conflict over who will control the group and what the group needs to be doing. During this
stage, a relatively clear hierarchy of leadership and agreement on the group’s direction
emerge.
The norming stage is one in which close relationships develop and the group becomes
cohesive. There’s now a strong sense of group identity and camaraderie. This stage is complete
when the group structure solidifies, and the group has assimilated a common set of
expectations (or norms) regarding member behavior.
The fourth stage is the performing stage. The group structure is in place and accepted by
group members. Their energies have moved from getting to know and understand each
other to working on the group’s task. This is the last stage of development for permanent
work groups. However, for temporary groups—project teams, task forces, or similar groups
that have a limited task to do—the final stage are adjourning. In this stage, the group
prepares to disband. The group focuses its attention on wrapping up activities instead of
task performance. Group members react in different ways. Some are upbeat, thrilled about
the group’s accomplishments. Others may be sad over the loss of camaraderie and
friendships.

3. What is effective communication? Identify barriers to effective interpersonal

communication and how to overcome them. (N 19, M 18)
The importance of effective communication for managers can’t be overemphasized for one
specific reason: Everything a manager does involve communicating. A manager can’t make
a decision without information. That information has to be communicated. Once a decision
is made, communication must again take place. Otherwise, no one would know that a
decision was made. The best idea, the most creative suggestion, the best plan, or the most
effective job redesign can’t take shape without communication. Communication is the
transfer and understanding of meaning. If information or ideas have not been conveyed,
communication hasn’t taken place.
Barriers to Communication
FILTERING. Filtering is the deliberate manipulation of information to make it appear
more favorable to the receiver. Filtering tends to be a function of the number of vertical
levels in the organization and the organizational culture. The more vertical levels in an
organization, the more opportunities there are for filtering. As organizations use more
collaborative, cooperative work arrangements, information filtering may become less of a
problem. In addition, e-mail reduces filtering because communication is more direct.
Finally, the organizational culture encourages or discourages filtering by the type of
behavior it rewards. The more those organizational rewards emphasize style and
appearance, the more managers may be motivated to filter communications in their favor.
EMOTIONS. A receiver feels when a message is received influences how he or she
interprets it. Extreme emotions are most likely to hinder effective communication. In such
instances, disregard rational and objective thinking processes and substitute emotional
judgments.
INFORMATION OVERLOAD. Information overload, means when information
exceeds our processing capacity. The demands of keeping up with e-mail, text messages,
phone calls, faxes, meetings, and professional reading create an onslaught of data. When
individuals have more information than they can process means they tend to ignore, pass over,
forget, or selectively choose information. Or they may stop communicating. Regardless, the
result is lost information and ineffective communication.
DEFENSIVENESS. When people feel they’re being threatened, they tend to react in ways
that hinder effective communication and reduce their ability to achieve mutual
understanding. They become defensive — verbally attacking others, making sarcastic
remarks, being overly judgmental, or questioning others’ motives.
LANGUAGE. The language each uses is vastly different. Words mean different things to
different people. Age, education, and cultural background are three of the more obvious
variables that influence the language a person uses and the definitions he or she gives to
words.
In an organization, employees come from diverse backgrounds and have different patterns
of speech. Even employees who work for the same organization but in different
departments often have different jargon—specialized terminology or technical language
that members of a group use to communicate among themselves.
NATIONAL CULTURE. For technological and cultural reasons, this general tendency
illustrates how communication differences can arise from national culture as well as
different languages. Communication is more formal and is clearly spelled out. Managers
rely heavily on reports, memos, and other formal forms of communication. More
interpersonal contact takes place, and face-to-face communication is encouraged.
Overcoming the Barriers
USE FEEDBACK. Many communication problems are directly attributed to
misunderstanding and inaccuracies. These problems are less likely to occur if the manager
gets feedback, both verbal and nonverbal. A manager can ask questions about a message to
determine whether it was received and understood as intended. Or the manager can ask the
receiver to restate the message. If the manager hears what was intended, understanding and
accuracy should improve. Feedback can also be more subtle, and general comments can
give a manager a sense of the receiver’s reaction to a message. Feedback also doesn’t have
to be verbal.
SIMPLIFY LANGUAGE. Because language can be a barrier, managers should consider
the audience to whom the message is directed and tailor the language to them. Remember,
effective communication is achieved when a message is both received and understood.
LISTEN ACTIVELY. When someone talks, too often we don’t listen. Listening is an
active search for meaning, whereas hearing is passive. In listening, the receiver is also
putting effort into the communication. Many of us are poor listeners. Because it’s difficult,
and most of us would rather do the talking. Listening, is often more tiring than talking.
Unlike hearing, active listening, this is listening for full meaning without making
premature judgments or interpretations, demands total concentration.
CONSTRAINT EMOTIONS. It would be naïve to assume that managers always
communicate in a rational manner. A manager who’s upset over an issue is more likely to
misconstrue incoming messages and fail to communicate outgoing messages clearly and
accurately. The simplest answer is to calm down and get emotions under control before
communicating.
WATCH NONVERBAL CUES. If actions speak louder than words, then it’s important to
make sure actions align with and reinforce the words that go along with them. An effective
communicator watches nonverbal cues to ensure that they convey the desired message.

4. Illustrate and explain the process of control with a flow diagram. (N 20, 19, M 19, M
18)
The control process is a three-step process of measuring actual performance, comparing
actual performance against a standard, and taking managerial action to correct deviations
or to address inadequate standards.
Step 1. Measuring Actual Performance
To determine what actual performance is, a manager must first get information about it.
Thus, the first step in control is measuring.
HOW WE MEASURE. Four approaches used by managers to measure and report actual
performance are personal observations, statistical reports, oral reports, and written reports.
Most managers use a combination of these approaches.
WHAT WE MEASURE. What is measured is probably more critical to the control process
than how it’s measured. Why? Because selecting the wrong criteria can create serious
problems. Besides, what is measured often determines what employees will do. What
control criteria might managers use?
Some control criteria can be used for any management situation. All managers deal with
people, so criteria such as employee satisfaction or turnover and absenteeism rates can
be measured. Keeping costs within budget is also a fairly common control measure. Other
control criteria should recognize the different activities that managers supervise. Most work
activities can be expressed in quantifiable terms. However, managers should use subjective
measures when they can’t. Although such measures may have limitations, they’re better than
having no standards at all and doing no controlling.
Step 2. Comparing Actual Performance Against the Standard
The comparing step determines the variation between actual performance and the standard.
Although some variation in performance can be expected in all activities, it’s critical to
determine an acceptable range of variation. Deviations outside thisrange need attention.
Step 3. Taking Managerial Action
Managers can choose among three possible courses of action: do nothing, correct the actual
performance, or revise the standards. Because “do nothing” is self-explanatory.
CORRECT ACTUAL PERFORMANCE
Depending on what the problem is, a manager could take different corrective actions. For
instance, if unsatisfactory work is the reason for performance variations, the manager could
correct it by things such as training programs, disciplinary action, changes in compensation
practices, and so forth. One decision that a manager must make is whether to take immediate
corrective action, which corrects problems at once to get performance backon track, or to use
basic corrective action, which looks at how and why performance deviated before correcting
the source of deviation. Effective managers analyze deviations and if the benefits justify it, take
the time to pinpoint and correct the causes of variance.
REVISE THE STANDARD. It’s possible that the variance was a result of an unrealistic
standard—too low or too high a goal. In that situation, the standard needs the corrective action,
not the performance. If performance consistently exceeds the goal, then a manager should look at
whether the goal is too easy and needs to be raised. On the other hand, managers must be
cautious about revising a standard downward. It’s natural to blame the goal when an employee or
a team falls short.

Managerial Decisions in Controlling

The standards are goals that were developed during the planning process. These goals provide
the basis for the control process, which involves measuring actual performance and comparing it
against the standard. Depending on the results, a manager’s decision is to do nothing, correct the
performance, or revise the standard.

5. Discuss the various types of tools used to monitor and measure organizational
performance. (M 18)
All managers need appropriate tools for monitoring and measuring organizational performance.
Feedforward/Concurrent/Feedback Controls
Managers can implement controls before an activity begins, during the time the activity is going
on, and after the activity has been completed. The first type is called feedforward control; the
second, concurrent control; and the last, feedback control.

FEEDFORWARD CONTROL. The most desirable type of control—feedforward control—

prevents problems because it takes place before the actual activity. The key to feedforward
controls is taking managerial action before a problem occurs.
That way, problems can be prevented rather than having to correct them after any damage (poor-
quality products, lost customers, lost revenue, etc.) has already been done. However, these
controls require timely and accurate information that isn’t always easy to get. Thus, managers
frequently end up using the other two types of control.
CONCURRENT CONTROL. Concurrent control, as its name implies, takes place while a
work activity is in progress. The best-known form of concurrent control is direct supervision.
Another term for it is management by walking around, which is when a manager is in the work
area interacting directly with employees. All managers can benefit from using concurrent control
because they can correct problems before they become too costly.
FEEDBACK CONTROL The most popular type of control relies on feedback. In feedback
control, the control takes place after the activity is done. The damage had already occurred even
though the organization corrected the problem once it was discovered. And that’s the major
problem with this type of control. By the time a manager has the information, the problems have
already occurred, leading to waste or damage. However, in many work areas, financial being one
example, feedback is the only viable type of control.
Feedback controls do have two advantages. First, feedback gives managers meaningful
information on how effective their planning efforts were. Feedback that shows little variance
between standard and actual performance indicates that the planning was generally on target. If
the deviation is significant, a manager can use that information to formulate new plans. Second,
feedback can enhance motivation. People want to know how well they’re doing and feedback
provides that information.
Financial Controls
Every business wants to earn a profit. To achieve this goal, managers need financial controls. For
instance, they might analyze quarterly income statements for excessive expenses. They might
also calculate financial ratios to ensure that sufficient cash is available to pay ongoing expenses,
that debt levels haven’t become too high, or that assets are being used productively.
Managers might use traditional financial measures such as ratio analysis and budget analysis.
Liquidity ratios measure an organization’s ability to meet its current debt obligations. Leverage
ratios examine the organization’s use of debt to finance its assets and whether it’s able to meet
the interest payments on the debt. Activity ratios assess how efficiently a company is using its
assets. Finally, profitability ratios measure how efficiently and effectively the company is using
its assets to generate profits. These ratios are calculated using selected information from the
organization’s two primary financial statements (the balance sheet and the income statement),
which are then expressed as a percentage or ratio.
Budgets are planning and controlling tools. When a budget is formulated, it’s a planning tool
because it indicates which work activities are important and what and how much resources
should be allocated to those activities. But budgets are also used for controlling because they
provide managers with quantitative standards against which to measure and compare resource
consumption. If deviations are significant enough to require action, the manager examines what
has happened and tries to uncover. With this information, necessary action can be taken.
Balanced Scorecard
The balanced scorecard approach is a way to evaluate organizational performance from more
than just the financial perspective. A balanced scorecard typically looks at four areas that
contribute to a company’s performance: financial, customer, internal processes, and
people/innovation/growth assets. According to this approach, managers should develop goals in
each of the four areas and then measure whether the goals are being met. Although a balanced
scorecard makes sense, managers will tend to focus on areas that drive their organization’s
success and use scorecards that reflect those strategies.
Information Controls
Managers deal with information controls in two ways: (1) as a tool to help them control other
organizational activities, and (2) as an organizational area they need to control.
HOW IS INFORMATION USED IN CONTROLLING? Managers need the right information
at the right time and in the right amount to monitor and measure organizational activities and
performance. In measuring actual performance, managers need information about what is
happening within their area of responsibility and about the standards in order to be able to
compare actual performance with the standard. They also rely on information to help them
determine if deviations are acceptable. Finally, they rely on information to help them develop
appropriate courses of action. Information is important! Most of the information tools that
managers use come from the organization’s management information system.
A management information system (MIS) is a system used to provide managers with needed
information on a regular basis. The term system in MIS implies order, arrangement, and purpose.
Further, an MIS focuses specifically on providing managers with information (processed and
analyzed data), not merely data (raw, unanalyzed facts). The issue is not a lack of data; instead,
the issue is whether an organization has the ability to process that data so that the right
information is available to the right person when needs it. An MIS collects data and turns them
into relevant information for managers to use.
CONTROLLING INFORMATION. Managers must have comprehensive and secure controls
in place to protect that information. Such controls can range from data encryption to system
firewalls to data backups, and other techniques. Problems can lurk in places that an organization
might not even have considered, like blogs, search engines, and Twitter accounts. Sensitive,
defamatory, confidential, or embarrassing organizational information has found its way into
search engine results.
Benchmarking of Best Practices
Managers in industries as health care, education, and financial services are discovering what
manufacturers have long recognized—the benefits of benchmarking, which is the search for the
best practices among competitors or non competitors that lead to their superior performance.
Benchmarking should identify various benchmarks, which are the standards of excellence
against which to measure and compare. Benchmarking means learning from others. As a tool for
monitoring and measuring organizational performance, benchmarking can be used to identify
specific performance gaps and potential areas of improvement.

6. Compare and contrast early theories of motivation. (M 18)

In Maslow’s hierarchy, individuals move up the hierarchy of five needs (physiological, safety,
social, esteem, and self-actualization) as needs are substantially satisfied. A need that’s
substantially satisfied no longer motivates.
A Theory X manager believes that people don’t like to work or won’t seek out responsibility so
they have to be threatened and coerced to work. A Theory Y manager assumes that people like to
work and seek out responsibility, so they will exercise self-motivation and self-direction.
Herzberg’s theory proposed that intrinsic factors associated with job satisfaction were what
motivated people. Extrinsic factors associated with job dissatisfaction simply kept people from
being dissatisfied.
Three-needs theory proposed three acquired needs that are major motives in work: need for
achievement, need for affiliation, and need for power.
Maslow’s Hierarchy of Needs Theory
The best-known theory of motivation is probably Abraham Maslow’s hierarchy of needs
theory. Maslow was a psychologist who proposed that within every person is a hierarchy of five
needs:
1. Physiological needs: A person’s needs for food, drink, shelter, sex, and other physical
requirements.
2. Safety needs: A person’s needs for security and protection from physical and emotional harm,
as well as assurance that physical needs will continue to be met.
3. Social needs: A person’s needs for affection, belongingness, acceptance, and friendship.
4. Esteem needs: A person’s needs for internal esteem factors such as self-respect, autonomy,
and achievement and external esteem factors such as status, recognition, and attention.
5. Self-actualization needs: A person’s needs for growth, achieving one’s potential, and self-
fulfillment; the drive to become what one is capable of becoming.
Maslow separated the five needs into higher and lower levels. Physiological and safety
needs were considered lower-order needs; social, esteem, and self-actualization needs were
considered higher-order needs. Lower-order needs are predominantly satisfied externally while
higher-order needs are satisfied internally.
McGregor’s Theory X and Theory Y:
Douglas McGregor is best known for proposing two assumptions about human nature:
Theory X and Theory Y. Theory X is a negative view of people that assumes workers have little
ambition, dislike work, want to avoid responsibility, and need to be closely controlled to work
effectively. Theory Y is a positive view that assumes employees enjoy work, seek out and
accept responsibility, and exercise self-direction.

Herzberg’s Two-Factor Theory

Frederick Herzberg’s two-factor theory (also called motivation-hygiene theory) proposes that
intrinsic factors are related to job satisfaction, while extrinsic factors are associated with job
dissatisfaction. Herzberg wanted to know when people felt exceptionally good (satisfied) or bad
(dissatisfied) about their jobs.
He concluded that the replies people gave when they felt good about their jobs were significantly
different from the replies they gave when they felt badly. Certain characteristics were
consistently related to job satisfaction (factors on the left side of the exhibit), and others to job
dissatisfaction (factors on the right side). When people felt good about their work, they tended to
cite intrinsic factors arising from the job itself such as achievement, recognition, and
responsibility. On the other hand, when they were dissatisfied, they tended to cite extrinsic
factors arising from the job context such as company policy and administration, supervision,
interpersonal relationships, and working conditions.
Herzberg believed that the factors that led to job satisfaction were separate and distinct from
those that led to job dissatisfaction. Therefore, managers who sought to eliminate factors that
created job dissatisfaction could keep people from being dissatisfied but not necessarily motivate
them. The extrinsic factors that create job dissatisfaction were called hygiene factors. When
these factors are adequate, people won’t be dissatisfied, but they won’t be satisfied (or
motivated) either. To motivate people, Herzberg suggested emphasizing motivators, the intrinsic
factors having to do with the job itself.
Three-Needs Theory
David McClelland and his associates proposed the three-needs theory, which says there are
three acquired (not innate) needs that are major motives in work. These three needs include the
need for achievement (nAch), which is the drive to succeed and excel in relation to a set of
standards; the need for power (nPow), which is the need to make others behave in a way that
they would not have behaved otherwise; and the need for affiliation (nAff), which is the desire
for friendly and close interpersonal relationships.
McClelland showed that employees can be trained to stimulate their achievement need by being
in situations where they have personal responsibility, feedback, and moderate risks. All three of
these needs can be measured by using a projective test (known as the Thematic Apperception
Test or TAT).

7. Define leadership and discuss about behavioral theories of leadership.

A leader is someone who can influence others and who has managerial authority. Leadership is a
process of leading a group and influencing that group to achieve its goals. Managers should be
leaders because leading is one of the four management functions.
UNIVERSITY OF IOWA STUDIES: The University of Iowa studies explored three leadership
styles to find which was the most effective. The autocratic style described a leader who dictated
work methods, made unilateral decisions, and limited employee participation. The democratic
style described a leader who involved employees in decision making, delegated authority, and
used feedback as an opportunity for coaching employees. Finally, the laissez-faire style leader
let the group make decisions and complete the work in whatever way it saw fit. The researchers’
results seemed to indicate that the democratic style contributed to both good quantity and quality
of work.
THE OHIO STATE STUDIES. The Ohio State studies identified two important dimensions of
leader behavior. The first was called initiating structure, which referred to the extent to which a
leader defined his or her role and the roles of group members in attaining goals. It included
behaviors that involved attempts to organize work, work relationships, and goals. The second
was called consideration, which was defined as the extent to which a leader had work
relationships characterized by mutual trust and respect for group members’ ideas and feelings. A
leader who was high in consideration helped group members with personal problems, was
friendly and approachable, and treated all group members as equals.
UNIVERSITY OF MICHIGAN STUDIES: The Michigan group also came up with two
dimensions of leadership behavior, which they labeled employee oriented and production
oriented. Leaders who were employee oriented were described as emphasizing interpersonal
relationships. The production-oriented leaders, in contrast, tended to emphasize the task aspects
of the job. Leaders who were employee oriented were able to get high group productivity and
high group member satisfaction.
THE MANAGERIAL GRID. The behavioral dimensions from these early leadership studies
provided the basis for the development of a two-dimensional grid for appraising leadership
styles. This managerial grid used the behavioral dimensions “concern for people” (the vertical
part of the grid) and “concern for production” (the horizontal part of the grid) and evaluated a
leader’s use of these behaviors, ranking them on a scale from 1 (low) to 9 (high). Although the
grid had 81 potential categories into which a leader’s behavioral style might fall, only five styles
were named: impoverished management (1,1 or low concern for production, low concern for
people), task management (9,1 or high concern for production, low concern for people), middle-
of-the-road management (5,5 or medium concern for production, medium concern for people),
country club management (1,9 or low concern for production, high concern for people), and team
management (9,9 or high concern for production, high concern for people).