MANAGEMENT THEORIES

Figure 2.1

Chronological Development of Management Perspectives

Figure 2.2

Subfields of the Classical Perspective on Management

Focuses on the individual workers productivity

Focuses on the functions of management

Focuses on the overall organizational system

Scientific Management: Taylor

Frederick W. Taylor (1856-1915)
Father of Scientific Management.

attempted to define the one best way to perform every task through systematic study and other scientific methods. believed that improved management practices lead to improved productivity.

Three areas of focus:

Task Performance

Supervision
Motivation

Task Performance
Scientific management incorporates basic expectations of management, including:
Development of work standards Selection of workers

Training of workers
Support of workers

Supervision
Taylor felt that a single supervisor could not be an expert at all tasks.
As a result, each first-level supervisor should be

responsible only workers who perform a common function familiar to the supervisor.
This became known as Functional Foremanship.

Motivation
Taylor believed money was the way to motivate workers to their fullest capabilities.
He advocated a piecework system in which workers

pay was tied to their output.

Workers

who met a standard level of production were paid a standard wage rate. whose production exceeded the standard were paid at a higher rate for all of their production output.

Workers

Scientific Management: The Gilbreths

Frank Gilbreth
Specialized in time and motion studies to determine

the most efficient way to perform tasks. Used motion pictures of bricklayers to identified work elements (therbligs) such as lifting and grasping.

Lillian Gilbreth
A strong proponent of better working conditions as a

means of improving efficiency and productivity. Favored standard days with scheduled lunch breaks and rest periods for workers. Strived for removal of unsafe working conditions and the abolition of child labor.

Administrative Management: Fayol

Henri Fayol (18411925)
First recognized that successful managers had to

understand the basic managerial functions.

Developed a set of 14 general principles of

management.
Fayols managerial functions of planning, leading,

organizing and controlling are routinely used in modern organizations.

Table 2.1

Fayols General Principles of Management

1. Division of work 2. Authority and responsibility 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interest to the common good 7. Remuneration of personnel

8. 9. 10. 11. 12. 13. 14.

Centralization Scalar chain Order Equity Stability Initiative Esprit de corps

Source: Based on Henri Fayol, General and Industrial Management, trans. Constana Storrs (London: Pittman & Sons, 1949).

Bureaucratic Management
Focuses on the overall organizational system. Bureaucratic management is based upon:
Firm rules Policies and procedures A fixed hierarchy A clear division of labor

Bureaucratic Management: Weber

Max Weber (18641920)
A German sociologist and historian who envisioned a

system of management that would be based upon impersonal and rational behaviorthe approach to management now referred to as bureaucracy.
Division of labor Hierarchy of authority Rules and procedures Impersonality Employee selection and promotion

Webers Forms of Authority

Traditional authority
Subordinate obedience based upon custom or

tradition (e.g., kings, queens, chiefs).

Charismatic authority
Subordinates voluntarily comply with a leader

because of his or her special personal qualities or abilities (e.g., Martin Luther King, Gandhi).

Rational-legal authority
Subordinate obedience based upon the position held

by superiors within the organization (e.g., police officers, executives, supervisors).

Table 2.2

Webers Three Types of Authority

Type
Traditional Charismatic

Description
Subordinate obedience based upon custom or tradition Subordinate obedience based upon special personal qualities associated with certain social reformers, political leaders, religious leaders, or organizational leaders Subordinate obedience based upon the position held by superiors within the organization

Rationallegal

Figure 2.3

Bureaucratic Hierarchical Power Structure

Classical versus Behavioral Perspective

vs.

Classical Perspective
Focused on rational behavior

Behavioral Perspective
Acknowledged the importance of human behavior

Behavioral Perspective
Followed the classical perspective in the development of management thought.
Acknowledged the importance of human behavior in

shaping management style Is associated with:

Mary Parker Follett Elton Mayo Douglas McGregor Chester Barnard

Mary Parker Follett

Concluded that a key to effective management was coordination. Felt that managers needed to coordinate and harmonize group effort rather than force and coerce people. Believed that management is a continuous, dynamic process. Felt that the best decisions would be made by people who were closest to the situation.

Elton Mayo
Conducted the famous Hawthorne Experiments.
Hawthorne Effect
Productivity increased because attention was paid to the workers in the experiment. Phenomenon whereby individual or group performance is influenced by human behavior factors.

His work represents the transition from scientific management to the early human relations movement.

Douglas McGregor
Proposed the Theory X and Theory Y styles of management.
Theory X managers perceive that their subordinates

have an inherent dislike of work and will avoid it if at all possible.

Theory Y managers perceive that their subordinates

enjoy work and that they will gain satisfaction from performing their jobs.

Table 2.3 Factor

Employee attitude toward work Management view of direction

Comparison of Theory X and Theory Y Assumptions Theory X Assumptions

Employees dislike work and. will avoid it if at all possible. Employees must be directed, coerced, controlled, or threatened to get them to put forth adequate effort. Employees wish to avoid responsibility; they prefer to be directed and told what to do and how to do it. Authoritarian style of management

Theory Y Assumptions
Employees enjoy work and will actively seek it. Employees are self-motivated and self-directed toward achieving organizational goals. Employees seek responsibility; they wish to use their creativity, imagination, and ingenuity in performing their jobs. Participatory style of management

Employee view of direction

Management style

The Quantitative Perspective

Characterized by its use of mathematics, statistics, and other quantitative techniques for management decision making and problem solving. This approach has four basic characteristics:
1. A decision-making focus 2. Development of measurable criteria 3. Formulation of a quantitative model

4. The use of computers

The Quantitative Perspective (contd)

Decision-Making Focus
The primary focus of the quantitative approach is on

problems or situations that require direct action, or a decision, on the part of management.

Measurable Criteria
The decision-making process requires that the

decision maker select some alternative course of action. The alternatives must be compared on the basis of measurable criteria.

The Quantitative Perspective (contd)

Quantitative Model
To assess the likely impact of each alternative on the

stated criteria, a quantitative model of the decision situation must be formulated.

Computers
Computers are quite useful in the problem-solving

process.

Figure 2.4

Basic Structure of Systems

Systems Perspective
An approach to problem solving based on an understanding of the basic structure of systems.
Environmental interaction

Open systems must interact with the external environment to survive.

Closed systems do not interact with the environment.

Synergy: when all subsystems work together making

the whole greater than the sum of its parts.

Implications of the Systems Approach

Coordination of the organizations parts is essential for proper functioning of the entire organization. Decisions and actions taken in one area of the organization will have an effect in other areas of the organization. Organizations are not self-contained and, therefore, must adapt to changes in their external environment.

The Contingency Approach

Contingency Approach Defined
Also sometimes called the situational approach. There is no one universally applicable set of

management principles (rules) by which to manage organizations.

Organizations are individually different, face different

situations (contingency variables), and require different ways of managing.

The Contingency Perspective

A view that proposes that there is no one best approach to management for all situations.
Asserts that managers are responsible for

determining which managerial approach is likely to be most effective in a given situation.

This requires managers to identify the key

contingencies in a given situation.

Figure 2.5

Blending Components into a Contingency Perspective

Management in the 21st Century

William Ouchis Theory Z
Japanese-style approach to management developed

by William Ouchi
Advocates

trusting employees and making them feel like an integral part of the organization. on the assumption that once a trusting relationship with workers is established, production will increase.

Based

Future Leaders Must:

Be thoroughly schooled in the different management perspectives.

Understand the various influences that will have a continuing effect on management thinking Be aware of how key business environment variables relate to their organization. Know which elements to select from the various management perspectives that are appropriate for their situation. Be adaptable to change such that future conditions and developments do not quickly render their chosen approaches obsolete.

Theory A (American)
Short-Term Employment Individual Decision Making Individual Responsibility Rapid Evaluation and Promotion Explicit Control Mechanisms Specialized Career Path Segmented Concern for Employee as a Person

Theory J (Japanese)
Lifetime Employment Collective Decision Making Collective Responsibility Slow Evaluation and Promotion Implicit Control Mechanisms Nonspecialized Career Path Holistic Concern for Employee as a Person

A Comparison of American, Japanese, and Theory Z Organizations

.

Theory Z (Modified American)

Long-Term Employment Collective Decision Making Individual Responsibility Slow Evaluation and Promotion Implicit, Informal Control with Explicit, Formalized Measures Moderately Specialized Career Paths Holistic Concern, Including Family