Organizational Behavior
Module 5: Comparative Management Styles & Approaches
Study Notes — Quick Reference Guide
1. Management Styles
The management style you choose shapes the managerial climate — your attitude and approach to
working with others. The right style (or combination) complements company structure and drives
performance.
Style Key Focus Strengths Weaknesses
Controlling Production & bottom line; Effective in military/crisis Short-term cooperation
(Authoritarian) enforces rules settings only; erodes loyalty
Supporting Employee welfare & Builds rapport; addresses Production suffers;
concerns problems empathetically employees may take
advantage
Leadership Balance of control + Boosts morale, innovation Requires skill and
(Recommended) support + vision & long-term productivity adaptability
Leadership Style — 4 Stages of Employee Development
Stage 1 — Delegation: Experienced staff; high ability + motivation. Leader delegates and steps back.
Stage 2 — Supporting: Capable but lacking confidence. Leader provides encouragement and
validation.
Stage 3 — Coaching: Still learning; needs guidance. Leader coaches repeatedly until confident.
Stage 4 — Directing: New employees. Leader gives full training, detailed instructions, and close
supervision.
Management by Walking Around (MBWA): Leaders stay visible, accessible, and connected to employees
— gathering feedback and addressing concerns firsthand. Example: Sam Walton at Walmart.
2. Unique Features of Japanese Management
Core Focus: Human resources over financial/physical resources.
Three Key Strategies:
i. Lifetime Employment — Employees are rarely laid off; promotions come from within; seniority is
rewarded. Benefits: low turnover, low training costs, high cohesion.
ii. Organizational Philosophy — Each company has a unifying "superordinate goal" emphasizing
cooperation and teamwork. Employees are treated as family.
iii. Intensive Socialization — New hires undergo thorough onboarding to deeply identify with the
company culture.
Key Techniques:
• Job Rotation & Slow Promotion — Lateral movement; seniority-based promotions.
• Complex Appraisal — Evaluates creativity, honesty, maturity, cooperation — not just output.
• Emphasis on Work Groups — Tasks assigned to autonomous teams; members decide the best
approach.
• Open Communication — Open-plan offices; informal networks foster face-to-face interaction.
• Consensus Decision-Making — Decisions are discussed widely before formal ratification.
• Concern for Employees — Managers spend time on employees' personal needs; this is part of their
performance appraisal.
Employee Benefits: Cultural/athletic/recreational activities, subsidized housing, dormitories, nurseries,
scholarships, and mortgage loans.
3. Creativity and Innovation
Creativity = generating a new idea. Innovation = translating that idea into a product, service, or process.
Both functions require different skill sets — organizations need people strong in each.
The Creativity Process (5 Stages):
1. Idea Generation: Recognizing a problem or market gap — the starting point.
2. Preparation: Deep immersion in the problem; gathering information without judgment.
3. Incubation: Subconscious processing; appears idle but the mind is organizing patterns.
4. Illumination: The 'aha!' moment — insights flash suddenly; must be recorded immediately.
5. Verification & Application: Testing the idea logically/experimentally; feasibility assessment for
commercialization.
Climate for Organizational Creativity:
Accept Change | Encourage New Ideas | Permit More Interaction | Tolerate Failure | Freedom to
Achieve | Offer Recognition
Factors That Hamper Innovation (Kanter's 10 Attitudes): Suspicion of new ideas, excessive approval
layers, fear culture, secrecy in decisions, over-controlling, withholding information, and arrogance at the top.
4. Entrepreneurship vs. Management
Entrepreneurship Management
Creates a new organization Coordinates an existing business
Initiates change innovatively Maintains stable, routine operations
Exploits new opportunities Optimizes existing processes
High risk tolerance Risk-managed decision-making
Characteristics of Entrepreneurial Managers:
• High activeness
• Possess a distinct idea or approach
• Greater openness to experience
• Internal focus of evaluation
• Tendency to experiment with concepts
• Willingness to take risks
• Need for psychological autonomy
5. Benchmarking
Definition: A systematic method of measuring an organization's performance against best-in-class
companies, then implementing changes to close the gap. It is a tool for continuous improvement.
Type Focus Example
Performance Pricing, quality, features of Reverse engineering competitor
(Operational) products/services products
Process Work processes like billing, training, order Xerox adopted [Link]'s
(Functional) entry warehousing practices
Strategic Competitive strategies that lead to market Key Success Factor (KSF) analysis
success
6. Management of Diversity
Diversity exists when group members differ along key dimensions (gender, age, ethnicity, etc.). It is a
continuum, not an absolute state. Managing it effectively is now essential as workplaces become
increasingly diverse.
4 Reasons for Increasing Diversity:
Changing Demographics: Spread of education, rise in women in workforce, younger professionals,
distance learning.
Competitive Advantage: Diverse perspectives fuel creativity, innovation, and new market exploration.
Legal & Regulatory Requirements: Constitutional obligations mandate inclusion of minorities,
women, and marginalized groups.
Globalization: Cross-border operations, mergers, and international staffing increase workforce
diversity.
Individual Strategies for Managing Diversity:
Understanding: Recognize that people are different; treating everyone identically ignores real cultural
differences.
Empathy: View situations from others' perspectives to build effective working relationships.
Tolerance: Accept that you may not always enjoy others' behaviors; avoid letting intolerance grow into
conflict.
Willingness to Communicate: Openly address diversity-related tensions before small issues escalate
into larger ones.
D Y Patil University Online — Organizational Behavior | Module 5 Study Notes