Theories of Management By: Jeff Koch Todd Devenburgh Kate McDermott.

Theories of Management

By: Jeff Koch

Todd Devenburgh

Kate McDermott

Scientific ManagementScientific management is a method in

management theory that determines changes to improve labor productivity.

The idea was first coined by Frederick Winslow Taylor in The Principles of Scientific Management in 1911

Frederick Winslow TaylorDeveloped the theories of Scientific

ManagementHis innovations in industrial

engineering, particularly in time and motion studies, paid off in dramatic improvements in productivity.

Theory of Scientific ManagementCareful specification and measurement

of all organizational tasks.Tasks are standardized as much as

possible. Workers are rewarded and punished This approach worked well for

organizations with assembly lines and other mechanistic activities

Criticism of Scientific Management

That humans are not inherently alike. What might be the most efficient way for one person may not be for someone else.

Ignores the fact that economic interest are different for management and employees.

Operations ManagementHenri Fayol is described as the father of

operations managementProposed five functions of management

Planning Organizing Commanding Coordinating Controlling

Difference between Henri Fayol and Frederick Winslow Taylor Taylor viewed management processes from the

bottom up, while Fayol viewed it from the top down. Fayol wrote that "Taylor's approach differs from the

one we have outlined in that he examines the firm from the "bottom up." he starts with the most elemental units of activity -- the workers' actions -- then studies the effects of their actions on productivity, devises new methods for making them more efficient, and applies what he learns at lower levels to the hierarchy.

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

Application of the 14 Principles

Change and OrganizationDecision-makingSkills can be used to improve the

effectiveness of a managerUnderstanding the management can be

seen as a variety of activities which can be listed and grouped

Behavioral Approach to Management

Focused on Human beings and their individual rights

Arose after the following were observed: low productivity lack of modern machinery limited horsepower availability anachronistic trade union practices poor management

Human Relations Theory

Focused on motivation and employee care

Found if employees were satisfied with their work, they were more apt to perform better

1880-1949

Conducted Hawthorne Studies

Mayo’s ConclusionsWork is a group activity

The social work of an adult is based on their work experiences

Workers need recognition, security, and a sense of belonging

Mayo’s Conclusions, Cont. A complaint is usually due to an employee’s

dissatisfaction with his or her status

A worker’s attitude is shaped from forces inside and outside of the work environment

Informal groups in the workplace improve employees’ attitudes and productivity

Mayo’s Conclusions, Cont.The change from an established society

at home to an adaptive society at work can create disturbances in the workforce

Group work must be planned and implemented

Human Resources Theory

Focused on how an employee viewed their position and work experiences.

Found that manager’s ways of managing largely contributed to how an employee viewed their work.

1906 – 1964

Theory X and Theory Y

Theory X Average human being dislikes work:

Most employees must be controlled and threatened before they will perform to the expectations

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

This lead to most organizations using “tough” management

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

This led employees to dislike their work

Theory Y Physical and mental effort at work are very

natural Employees will be proactive if they are committed

to the company and if the job is satisfying 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

Conclusions on Theory X and Y

These two theories are impractical at the workforce and are very different

McGregor suggested that managers look at the theories to start their view of management

MBO MBO=Management by Objectives

Top management teams along with employees together 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

MBOPopularized by Peter Drucker in 1954. “Management by objectives works if you

know the objectives. Ninety percent of the time you don’t.”-Peter F. Drucker

MBOWorks well within the U.S. culture, but

often fails in others due to different styles in management Ex. French because of their high power

distance

MBOWorks well because all levels are

involved in achieving the ultimate goal

Path-Goal TheoryDeveloped by Robert House

Remove obstacles Clarify the path to the goal Offer rewards

4 Types of Leaders Achievement Oriented

Leader sets high goals

High performance levels

Confident in expectations being met

DirectiveTells them

how to perform tasks

What is expected

Types of Leader (cont.) Participative

Consults with others before making decisions

Uses others suggestions to make the final decision

SupportiveApproachableFriendlyNeeded when

the follower lacks confidence

Questions

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