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The Evolution of Management Theory
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Theories of Management
Scientific
Management
Bureaucratic
Management
Administrative
Management
Classical
Theories
Behaviourist
Theories
Hawthorne
Studies
Human
Relations
Behavioural
Science
Behavioural
Theories
Management
Science
Operations
Management
Management
Information
Systems
Quantitative
Theories
Systems
Theory
Contingency
Theory
Emerging
Views
Contemporary
Theories
Management
TheoryCLASSICAL
THEORI
ES SCIENTI
FIC
MANAG
EMENT
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Frederick Taylor
Developed the specific principles of ScientificManagement
Scientific Management
The systematic study of the relationships betweenpeople and tasks for the purpose of redesigningthe work process for higher efficiency.
Defined by Frederick Taylor in the late 1800’s to replaceinformal rule of thumb knowledge.
Taylor sought to reduce the time a worker spent oneach task by optimizing the way the task was done.
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Taylor’s 4 Principles of
Scientific Management • Scientifically study each part of a task and
develop the best method for performing
the task
• Carefully select workers and train them to
perform the task by using the scientificallydeveloped method
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Taylor’s 4 Principles of
Scientific Management • Cooperate fully with workers to ensure
that they use the proper method
• Divide work and responsibility so thatmanagement is responsible for planning
work methods using scientific principlesand workers are responsible for executingthe work accordingly
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Problems with Scientific Management
• Managers frequently implemented only the increasedoutput side of Taylor’s plan.
– Workers did not share in the increased output.
• Specialized jobs became very boring, dull.
– Workers ended up distrusting the Scientific Management
method.• Workers could purposely “under-perform.”
– Management responded with increased use of machines andconveyors belts.
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Administrative Management
Theory• Administrative Management
–The study of how to create an organizational
structure that leads to high efficiency andeffectiveness.
•Max Weber
–Developed the concept of bureaucracy as aformal system of organization andadministration designed to ensure efficiencyand effectiveness.
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Weber’s Principles of Bureaucracy
Figure 2.2
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Weber’s Five Principles of
Bureaucracy• Authority is the power to hold people
accountable for their actions.
• Positions in the firm should be held based onperformance, not social contacts.
• Position duties are clearly identified so thatpeople know what is expected of them.
• Lines of authority should be clearly identifiedsuch that workers know who reports to who.
• Rules, standard operating procedures (SOPs),
and norms guide the firm’s operations.
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Fayol’s Principles of Management
• Division of Labor: allows for jobspecialization.
– Fayol noted jobs can have too much
specialization leading to poor quality andworker dissatisfaction.
• Authority and Responsibility
– Fayol included both formal and informalauthority resulting from special expertise.
• Unity of Command
– Employees should have only one boss.
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Fayol’s Principles of Management (cont’d)
• Line of Authority
– A clear chain of command from top to bottom of thefirm.
• Centralization
– The degree to which authority rests at the top of theorganization.
• Unity of Direction – A single plan of action to guide the organization.
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Fayol’s Principles of Management(cont’d)
• Equity
– The provision of justice and the fair andimpartial treatment of all employees.
• Order
– The arrangement of employees where theywill be of the most value to the organization
and to provide career opportunities.
• Initiative
– The fostering of creativity and innovation by
encouraging employees to act on their own.
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Fayol’s Principles of Management(cont’d)
• Discipline
– Obedient, applied, respectful employees arenecessary for the organization to function.
• Remuneration of Personnel – An equitable uniform payment system that motivates
contributes to organizational success.
• Stability of Tenure of Personnel
– Long-term employment is important for thedevelopment of skills that improve the organization’sperformance.
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Fayol’s Principles of Management(cont’d)
• Subordination of Individual Interest to theCommon Interest
– The interest of the organization takesprecedence over that of the individualemployee.
• Esprit de corps – Comradeship, shared enthusiasm fosterdevotion to the common cause (organization).
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Theories of Management
Scientific
Management
Bureaucratic
Management
Administrative
Management
Classical
Theories
Behaviourist
Theories
Hawthorne
Studies
Human
Relations
Behavioural
Science
Behavioural
Theories
Management
Science
Operations
Management
Management
Information
Systems
Quantitative
Theories
Systems
Theory
Contingency
Theory
Emerging
Views
Contemporary
Theories
Management
Theory
BEHAVIO
URAL
THEORIE
S
AWTHORNE
TUDIES
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Behavioural Theories
Emphasise the importance of
attempting to understand thevarious factors that affecthuman behaviour in
organisations.
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The Hawthorne Studies
A group of studies conducted atthe Hawthorne plant of the
Western Electric Company duringthe late 1920’s and early 1930’s
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Hawthorne Studies
Researchers monitored the productivity of fivewomen who assembled electrical relays for
several years.
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Theories of Management
Scientific
Management
Bureaucratic
Management
Administrative
Management
Classical
Theories
Behaviourist
Theories
Hawthorne
Studies
Human
Relations
Behavioural
Science
Behavioural
Theories
Management
Science
Operations
Management
Management
Information
Systems
Quantitative
Theories
Systems
Theory
Contingency
Theory
Emerging
Views
Contemporary
Theories
Management
Theory
BEHAVIOURAL
THEORIES
HUMAN
RELATI
ONS
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Maslows
Hierarchyof Needs
Basic Needs Safety & Security
Needs
Social
Needs
Self Esteem
Self Actualisation
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Theory X & Theory Y
Theory X • The average person dislikes work and will try
to avoid it.
• Most people need to be coerced, controlled,directed, and threatened with punishment toget them to work towards organisationalgoals.
• The average person WANTS to be directed,shuns responsibility, has little ambition, andseeks security above all.
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Theory X & Theory Y
Theory Y • Most people do not inherently dislike work; it
is seen as natural as recreation and rest.
• People will exercise self-direction and self-control to reach goals to which they arecommitted.
• Commitment to goals is a function of therewards available; particularly esteem andself-actualisation needs.
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Theory X & Theory Y
Theory Y • When conditions are favourable, the average
person learns not only to accept
responsibility, but also to seek it.• Many people have the capacity to exercise a
high degree of creativity and innovation insolving organisation problems.
• The intellectual potential of most individualsis only partially utilised in most organisations.
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Theories of Management
Scientific
Management
Bureaucratic
Management
Administrative
Management
Classical
Theories
Behaviourist
Theories
Hawthorne
Studies
Human
Relations
Behavioural
Science
Behavioural
Theories
Management
Science
Operations
Management
Management
Information
Systems
Quantitative
Theories
Systems
Theory
Contingency
Theory
Emerging
Views
Contemporary
Theories
ManagementTheory
QUANTITATIVE
THEORIES
MANAGEMENT
INFORMATION
SYSTEMS
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Management InformationSystems
Focuses on designing andimplementing computer-basedinformation systems for use bymanagement.
These systems turn raw data intoinformation that is useful to variouslevels of management.
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Theories of Management
Scientific
Management
Bureaucratic
Management
Administrative
Management
Classical
Theories
Behaviourist
Theories
Hawthorne
Studies
Human
Relations
Behavioural
Science
Behavioural
Theories
Management
Science
Operations
Management
Management
Information
Systems
Quantitative
Theories
Systems
Theory
Contingency
Theory
Emerging
Views
Contemporary
Theories
ManagementTheory
CONTEMPORARY
THEORIES SYSTEMS
THEORY
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Systems Theory
Based on the idea thatorganisations can bevisualised as systems
System
A set of interrelated partsthat operate as a whole inpursuit of common goals
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Systems Theory
Developedthrough the
sciences of Biology andPhysical
Science
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Inputs Transformation
Processes
Outputs
Feedback from Environment
Resources
•Human
•Materials
•Equipment
•Finance
•Information
Abilities
•Planning
•Organising
•Leading
•Control
•Technology
Outcomes
•Products
•Services
•Profit & Losses
•EmployeeGrowth &
Satisfaction
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Open vs. Closed Systems
Closed System A system that does little or no
interacting with its
environment and receiveslittle feedback
Open System
A system that operates incontinual interaction with its
environment
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Theories of Management
Scientific
Management
Bureaucratic
Management
Administrative
Management
Classical
Theories
Behaviourist
Theories
Hawthorne
Studies
Human
Relations
Behavioural
Science
Behavioural
Theories
Management
Science
Operations
Management
Management
Information
Systems
Quantitative
Theories
Systems
Theory
Contingency
Theory
Emerging
Views
Contemporary
Theories
ManagementTheory
CONTEMPORARY
THEORIES
CONTINGENCY
THEORY
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Contingency Theory
A viewpoint that argues thatappropriate managerial action dependson the circumstances of the situation.
In other words ………..
there is no single right way to manage
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Contingency Theory
UniversalManagement
Principals
Contingency ViewAppropriate
managerial
action depends on
situation
Situation A
Situation B Situation C
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Contingency Theory
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