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The Evolution of Management Theories

Management Theories
Industrial Revolution (1700s 1800s)
- Moved from Agrarian to Manufacturing Society - Adam Smith The Wealth of Nations - Division of labor (pin factory example)

Scientific Management (1890s 1930s)


- Frederick Taylor - Time & Motion Studies - Fair days pay for a fair days work

Management Theories
Bureaucracy Max Weber (1930s 1950s)
- All activities follow the organizational hierarchy - Strong lines of authority & control - Formal selection, rules & regulations - Only qualified persons are employed (no nepotism)

Management Theories
Humanistic Management (1930s 1970s)
Hawthorne Studies - Elton Mayo Father of Human Relations - Western Electric Plant in Hawthorne, IL - Hawthorne Effect; Spotlight Effect

Management Theories
POSDCORB (1937) - Luther Gulick Management by Objectives (1954)
- Peter Drucker - Goals are set for employee to achieve - People end up working for themselves

Theory X & Theory Y (1960)


- Douglas McGregor

Theory X & Theory Y


Theory X

People do not really want to work. They are self-interested and prefer leisure over work. If managers relax, sloppiness sets in.

Theory Y

Workers find work enjoyable & satisfying Work is Play Workers will exercise self-direction and self-control. Workers can solve problems creatively.

Theory X

People do not really want to work. They are self-interested and prefer leisure over work. Managers have to structure work and give workers well specified tasks. If managers relax, sloppiness sets in. Most people prefer to be directed. They do not really want to carry the burden of responsibility. Workers have little ambition and prefer security

Theory Y

Workers find work enjoyable & satisfying Work is Play Workers will exercise self-direction and self-control. Workers will seek the intrinsic rewards associated with their achievement, not just extrinsic rewards. Workers can solve problems creatively. The intellectual potential of workers is only partially utilized. People are capable of handling more complex problems.

Management Theories
Total Quality Management

A system of continuous improvement employing participative management and centered on the needs of customers. W. Edwards Deming (1950s Japan) 14 Steps to TQM
- Cease dependence on mass inspection - Eliminate quotas and numerical targets

Management Theories
Theory Z
- William Ouchi (1981); Abraham Maslow (1968)

Japanese Management

- Cooperation and trust built on mutual respect

* Maslows Hierarchy of Needs


Long-term employment Collective decision making & shared responsibility Careful evaluation and slow promotion Involvement in the organization

Theory Z
Maslow (1968) & William Ouchi (1980s)

Employees driven by commitment to belong to something worthwhile Employees crave opportunities to advance and learn Manager believes that employees should work up through the ranks to build loyalty and have lifelong employment

Theory X vs. Y vs. Z

Management Theories
The One Minute Manager (1981) - Kenneth Blanchard
- One minute objectives; praising & reprimanding

The ABCs - Activators Managers pre-goal actions


- Behavior Effect on employee actions - Consequences Managers post-goal actions

Management Theories
Systems Approach Peter Senge (1990)
System A set of interdependent parts that work together to achieve a common goal Inputs

Processes

Outputs

(Feedback)

Look at the organization from a broader perspective Interrelationship of all of the parts (hotel front desk)

Management Theories
Empowerment
- Authorizing employees to do their work without the need to

seek approval from supervisors

- Sense of responsibility & achievement for employees - Reduces work-load on manager; Reduces delays in flow of work

The Federal Organization


Based Upon

Corporate headquarters is at the center not the top The power of the organization belongs to the units Organizations can be both large and small

Job Description and Duties Cross training Empowerment

Japanese Management
Kaizen

Continuous improvement

Jidoka

Defect detection system

Just-in-time inventory

Having just enough inventory on hand to complete the process

Other Theories
Peter Principle
Promotion

to a level of ignorance

Dilbert Principle
Promote

worst employees to management

Natural Capitalism
Rewards

energy and material efficiency