2.2 Behavioural management approach

Behavioral management theory places the person rather than the process at the heart of business operations. It examines the business as a social system as well as a formal organization. Therefore, productivity depends on proper motivation, group dynamics, personal psychology, and efficient processes.
Behavioral management theory humanizes business. Feelings have a practical impact on operations. Team spirit, public recognition, and personal pride encourage employees to perform better. Individual relationships also play a role. Employees are more likely to go the extra mile for a boss they respect and who respects them.

Shortcomings of behavioral management theory include:

• The difficulty of balancing personal relationships with professional conduct
• An inclination toward socially motivated hiring practices that can be unjust
• The danger of assuming that all individuals respond the same way to the same situations and for the same reasons