MANAGEMENT THEORIES Ankita Prabhakar, Asst.Prof

Ankita Prabhakar, Asst.Prof.

MANAGEMENT THEORIES


Figure 2.1 Chronological Development of Management Perspectives


Figure 2.2 Subfields of the Classical Perspective on Management

Focuses on the individual worker’s

productivityFocuses on the overall

organizational systemFocuses on

the functions of

management


A) Scientific Management

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

1. Attempted to define “the one best way” to perform every task through systematic study and other scientific methods.

2. Believed that improved management practices lead to improved productivity.

• Three areas of focus:

1. Task Performance

2. Supervision

3. Motivation


1. Task Performance

• Scientific management incorporates basic expectations of management, including:

1. Development of work standards

2. Selection of workers

3. Training of workers

4. Support of workers


2. 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.


3. Motivation

• Taylor believed money was the way to motivate workers to their fullest capabilities.

• He advocated a piecework system in which worker’s pay was tied to their output.

• Workers who met a standard level of production were paid a standard wage rate.

• Workers whose production exceeded the standard were paid at a higher rate for all of their production output.


A) Scientific Management (contd.)

2) Lillian Gilbreth1. A strong proponent of better working conditions as a

means of improving efficiency and productivity.2. Favored standard days with scheduled lunch breaks

and rest periods for workers.3. Strived for removal of unsafe working conditions and

the abolition of child labor.


B) Administrative Management

1) Henri Fayol (1841–1925)

1. First recognized that successful managers had to

understand the basic managerial functions.

2. Developed a set of 14 general principles of

management.

3. Fayol’s managerial functions of planning, leading,

organizing and controlling are routinely used in modern

organizations.



3. Bureaucratic Management

• Focuses on the overall organizational system.

• Bureaucratic management is based upon:

1. Firm rules

2. Policies and procedures

3. A fixed hierarchy

4. A clear division of labor


3. Bureaucratic Management (contd.)

Max Weber (1864–1920)

A German sociologist and historian who envisioned a

system of management that would be based upon

impersonal and rational behavior—the approach to

management now referred to as “bureaucracy.”

1. Division of labor

2. Hierarchy of authority

3. Rules and procedures

4. Impersonality

5. Employee selection and promotion


Weber’s 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).

© 2–14

Figure 2.3 Bureaucratic Hierarchical Power Structure


Theory 2: Neo Classical/ Behavioral

• Acknowledged the importance of human

behavior in shaping management style

• Is associated with:

1. Mary Parker Follett

2. Elton Mayo

3. Douglas McGregor


1. Mary Parker Follett

• An approach to solve the problems of power, authority,

conflict and control.

• Constructive Conflict

• Leader Vs. Boss

• Delegation of Authority

• Coordination needed at all the levels


Four principles of coordination to promote effective work

groups:

1. Coordination requires that people be in direct contact

with one another.

2. Coordination is essential during the initial stages of

any endeavor.

3. Coordination must address all factors and phases of

any endeavor.

4. Coordination is a continuous, ongoing process.

Follett Principles of Coordination

2. Elton Mayo


• Conducted the famous Hawthorne Experiments.

• “Hawthorne Effect”

1. Job satisfaction increases as workers were given

more freedom to -

a) determine condition of their working

environment.

b) set their own standards of output

2. Job satisfaction depend more on cooperation than

on physical working conditions.

• Criticized for lack of vigorous research, the experiments

were too narrow and small to generalization.


3. Douglas McGregor

• Proposed the Theory X and Theory Y styles of

management.

1. Theory X managers perceive that their subordinates

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

possible.

2. Theory Y managers perceive that their subordinates

enjoy work and that they will gain satisfaction from

performing their jobs.


Table 2.3 Comparison of Theory X and Theory Y Assumptions

Factor Theory X Assumptions Theory Y Assumptions

Employee attitude Employees dislike work and. Employees enjoy work and toward work will avoid it if at all possible. will actively seek it.

Management view Employees must be directed, Employees are self-motivatedof direction coerced, controlled, or threatened and self-directed toward achieving

to get them to put forth adequate effort. organizational goals. Employee view Employees wish to avoid responsibility; Employees seek responsibility; of direction they prefer to be directed and told what they wish to use their creativity, to do and how to do it. imagination, and ingenuity in performing their jobs.

Management style Authoritarian style of management Participatory style of management


Theory 3: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 (cont’d)

1. 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.

2. 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.

3. Quantitative Model

To assess the likely impact of each alternative on the stated criteria, a

quantitative model of the decision situation must be formulated.

4. Computers

Computers are quite useful in the problem-solving process.


Theory 4: Systems Perspective

An approach to problem solving based on an understanding of the basic structure of systems


Theory 4: Systems Perspective (contd.)

• Environmental interaction

1. Open systems must interact with the external

environment to survive.

2. Closed systems do not interact with the environment.

• Synergy: when all subsystems work together making the whole

greater than the sum of its parts.

• Entropy: the tendency for systems to decay over time.


Theory 5:The Contingency Perspective

• A view that proposes that there is no one best approach to

management for all situations.

1. Asserts that managers are responsible for determining

which managerial approach is likely to be most effective in

a given situation.

2. This requires managers to identify the key contingencies in

a given situation.


Blending Components into a Contingency Perspective


An Example of the Contingency Perspective

• Joan Woodward’s Research

• Discovered that a particular management style is

affected by the organization’s technology.

• Identified and described three different types of

technology:

1. Small-batch technology

2. Mass-production technology

3. Continuous-process technology


Production TechnologyExamples

Small-batch Custom fabrication machine shop,technology manufacturer of neon advertising signs,

print shop specializing in personal business

cards, trophy-engraving shop

Mass-production Manufacturer of automobiles, manufacturertechnology of refrigerators, manufacturer of hair dryers,

manufacturer of pencils

Continuous-process Oil refinery, flour mill, soft drink bottler,technology chemical processor


Management in the 21st Century

• William Ouchi’s Theory Z

• Japanese-style approach to management developed by

William Ouchi

1. Advocates trusting employees and making them feel

like an integral part of the organization.

2. Based on the assumption that once a trusting

relationship with workers is established, production

will increase.

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MANAGEMENT THEORIES Ankita Prabhakar, Asst.Prof