Management Approaches

Classical Humanistic Management Science Recent Trends

Systems Theory Contingency View

3 Classical Approaches to Management

Classical Approaches
Assumption: People are rational

Scientific Management

Administrative Principles

Bureaucratic Orgnaization Max Weber

Fredrick Taylor The Gilbbreths

Henry Fayol Mary Parker Follett

1. Classical Perspective
Emerged during the 19th and 20th centuries Factory systems appearing in 1800s Problems:
Tooling the plants Organizing managerial structure Training employees (many immigrants) Scheduling complex manufacturing operations Increased labor dissatisfaction; strikes

Scientific Management

Frederick Taylor, Engineer Father of Scientific Management

Problem in labor productivity lies with poor management practices, not labor. Manner of change can be determined only by scientific study. Replace rules of thumb and tradition with precise procedures developed after careful study. Work with Bethlehem Steel plant in 1898

Bureaucratic Organizations
Classical Perspective

 Max Weber was the major contributor to bureaucratic management. Bureaucratic management focuses on the ideal form of organization. Weber concluded that many early organizations were inefficiently managed, with decisions based on personal relationships and loyalty.

 He proposed that a form of organization, called a bureaucracy, characterized by division of labor, hierarchy, formalized rules, impersonality, and the selection and promotion of employees based on ability, would lead to more efficient management. Weber also contended that managers' authority in an organization should be based not on tradition or charisma but on the position held by managers in the organizational hierarchy

Max Weber, German Theorist

Envisioned organizations managed on an impersonal, rational basis. An organization based on rational authority would be more efficient and adaptable to change. Employee selection and advancement based on competence. Rely on rules and written records for continuity.

BEHAVIORAL SCHOOL

Human Relation (1930)

Behavioral Science (1950)

 The behavioral school focused on trying to understand the factors that affect human behavior at work.

HUMAN RELATIONS
The Hawthorne Experiments began in 1924 and continued through the early 1930s. A variety of researchers participated in the studies, including Clair Turner, Fritz J. Roethlisberger, and Elton Mayo One of the major conclusions of the Hawthorne studies was that workers' attitudes are associated with productivity.

Another was that the workplace is a social system and informal group influence could exert a powerful effect on individual behavior. Another was that the workplace is a social system and informal group influence could exert a powerful effect on individual behavior. According to the human relations school, the manager should possess skills for diagnosing the causes of human behavior at work, interpersonal communication, and motivating and leading workers.

BEHAVIORAL SCIENCE
Behavioral science and the study of organizational behavior emerged in the 1950s and 1960s. The behavioral science school was a natural progression of the human relations movement. It focused on applying conceptual and analytical tools to the problem of understanding and predicting behavior in the workplace.

 The study of behavioral science was also a result of criticism of the human relations approach as simplistic and manipulative in its assumptions about the relationship between worker attitudes and productivity. The behavioral science school has contributed to the study of management through its focus on personality, attitudes, values, motivation, group behavior, leadership, communication, and conflict, among other issues.

Administrative Principles
Classical Perspective

Henri Fayol, French Engineer

General and Industrial Management Proposed 14 general principles of management
Unity of command (one supervisor) Division of work (specialization) Unity of direction (group similar activities) Scalar chain (chain of authority)

Behavioral Sciences Approach

Humanistic Perspective

Behavioral Sciences Approach

Develops theories about human behavior based on scientific methods and study. Draws from sociology, psychology, anthropology, economics and other disciplines to understand employee behavior and interaction in an organizational setting. Impacts motivation, communication, leadership and human resource management.

Third Perspective: Mgt Science

Management Science Perspective

World War II created sophisticated tools for modern global warfare. Applies mathematics, statistics and other quantitative techniques to management decision-making and problem-solving. Operations Research Operations Management Management Information Systems Queuing Theory

 This is a modern extension of Scientific Management Theory in this approach describes how precise quantitative techniques can be used in order to make the best use of organizational resources.

Quantitative Management

Management Information Systems

Management Science Theory

Operations Management

Total Quality Management

 Quantitative management emphasises on how arithmetic can be manipulated to achieve best practises in inventory and financial capital control. Operations management presents a set of techniques that can be utilized to improve production efficiency Total quality management focuses on the art of how the whole can be managed to achieve excellence. Management information systems provide the managers with adequate information about internal and external events of an organization to effective decision making.

Systems Theory
A set of interrelated parts that function as a whole to achieve a common purpose.
Inputs Transformation process Outputs Feedback Environment

 Defines a system as a set of interrelated and interdependent parts arranged in a manner that produces a unified whole Closed system : a system that is not influenced by and does not interact with its environment Open system: a system that dynamically interacts with its environment Stakeholders: any group that is affected by organizational decisions and policies

The Organization and its Environment

Contingency View
Universalist View (classical perspective) management concepts are universal Case View Each situation is unique. Contingency View A managers response depends on identifying key variables in an organizational situation. What works in one setting may not work in another. Contingencies include the environment, industry, technology and international cultures.

 It discloses that there is no best way to organize therefore characteristics of the environment affect an organizations ability to obtain resources.

Types of structures

 In conclusion managers in a Mechanistic structure can obtain inputs at a lower cost preferably in a stable environment and managers in an organic environment can react more quickly in a rapidly changing environment.