45437-30952Theories of Management Final

8/2/2019 45437-30952Theories of Management Final

1/29

Theories of Management

By: Jeff Koch

Todd Devenburgh

Kate McDermott


2/29

Scientific Management

Scientific management is a method inmanagement theory that determineschanges to improve labor productivity.

The idea was first coined by FrederickWinslow Taylor in The Principles ofScientific Managementin 1911


3/29

Frederick Winslow Taylor

Developed the theories of ScientificManagement

His innovations in industrialengineering, particularly in time andmotion studies, paid off in dramaticimprovements in productivity.


4/29

Theory of Scientific Management

Careful specification and measurementof all organizational tasks.

Tasks are standardized as much aspossible.

Workers are rewarded and punished

This approach worked well for

organizations with assembly lines andother mechanistic activities


5/29

Criticism of Scientific

Management

That humans are not inherently alike.What might be the most efficient way forone person may not be for someoneelse.

Ignores the fact that economic interestare different for management andemployees.


6/29

Operations Management

Henri Fayol is described as the father ofoperations management

Proposed five functions of managementPlanning

Organizing

Commanding

CoordinatingControlling


7/29

Difference between Henri Fayol

and Frederick Winslow Taylor

Taylor viewed management processes from thebottom up, while Fayol viewed it from the top down.

Fayol wrote that "Taylor's approach differs from theone we have outlined in that he examines the firm

from the "bottom up." he starts with the mostelemental units of activity -- the workers' actions --then studies the effects of their actions onproductivity, devises new methods for making themmore efficient, and applies what he learns at lowerlevels to the hierarchy.


8/29

14 Principles of Management Division of Work Authority Discipline Unity of control Unity of Direction

Subordination of individual interest Remuneration Centralization Scalar chain (Line of Authority) Order Equity

Stability of Tenure of Personnel Initiative Esprit de Corps


9/29

Application of the 14 Principles

Change and Organization

Decision-making

Skills can be used to improve theeffectiveness of a manager

Understanding the management can be

seen as a variety of activities which canbe listed and grouped


10/29

Behavioral Approach to Management

Focused on Human beings and theirindividual rights

Arose after the following were observed: low productivity

lack of modern machinery

limited horsepower availability anachronistic trade union practices

poor management


11/29

Human Relations Theory

Focused on motivation and employeecare

Found if employees were satisfied withtheir work, they were more apt to

perform better


12/29

1880-1949Conducted HawthorneStudies


13/29


14/29

Mayos Conclusions

Work is a group activity

The social work of an adult is based ontheir work experiences

Workers need recognition, security, anda sense of belonging


15/29

Mayos Conclusions, Cont.

A complaint is usually due to an employees

dissatisfaction with his or her status

A workers attitude is shaped from forces

inside and outside of the work environment

Informal groups in the workplace improveemployees attitudes and productivity


16/29

Mayos Conclusions, Cont.

The change from an established societyat home to an adaptive society at workcan create disturbances in theworkforce

Group work must be planned andimplemented


17/29

Human Resources Theory

Focused on how an employee viewedtheir position and work experiences.

Found that managers ways of

managing largely contributed to how anemployee viewed their work.


18/29

1906 1964Theory X and Theory Y


19/29

Theory X

Average human being dislikes work: Most employees must be controlled and

threatened before they will perform to theexpectations

Humans like to be directed, dislikes responsibility,and wants job security

This lead to most organizations using toughmanagement

Bad form of management because the employee needsthe opportunity to fulfill their goals

This led employees to dislike their work


20/29

Theory Y

Physical and mental effort at work are verynatural

Employees will be proactive if they are

committed to the company and if the job issatisfying

Most employees learn to seek out

responsibility Imagination, creativity, and ingenuity can be

used to solve work problems

Employees are not used to their full capacity


21/29

Conclusions on Theory X andY

These two theories are impractical atthe workforce and are very different

McGregor suggested that managerslook at the theories to start their view ofmanagement


22/29

MBO

MBO=Management by Objectives

Top management teams along with employeestogether define the company goals and direction

that the company is going. 3 Key components

Specific, achievable, measurable, realistic, time-specific

Goals are not unilateral within management

Managers give objective feedback


23/29

MBO

Popularized by Peter Drucker in 1954.

Management by objectives works if you

know the objectives. Ninety percent ofthe time you dont.-Peter F. Drucker


24/29

MBO

Works well within the U.S. culture, butoften fails in others due to differentstyles in management

Ex. French because of their high powerdistance


25/29

MBO

Works well because all levels areinvolved in achieving the ultimate goal


26/29

Path-Goal Theory

Developed by Robert House

Remove obstacles

Clarify the path to the goal

Offer rewards


27/29

4 Types of Leaders

Achievement Oriented

Leader sets highgoals

High performancelevels

Confident in

expectations beingmet

Directive

Tells them

how toperformtasks

What isexpected


28/29

Types of Leader (cont.)

Participative

Consults withothers before

making decisionsUses others

suggestions to

make the finaldecision

Supportive

Approachable

FriendlyNeeded when

the follower

lacksconfidence


29/29

45437-30952Theories of Management Final

Documents