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MGT 200 Management Theory
Required Reading:
Chapter 2 of textbook
Peter Senge Article
Meg Wheatly Interview Today’s Topic: History of Management
Theory
Learning Objectives
Know the basic premises of six management theories
Understand the context for the evolution and development of these theories
Know the basic concepts of several current trends in management
Explore three forces that are changing the context for managerial work today
Management Theories/Concepts
Division of Labor Scientific Management Administrative Theories Behavioral Theory Chaos Theory Contingency Theory
Division of Labor
Adam Smith: “The Wealth of Nations” Premise: Increase productivity by breaking
down jobs into narrow, repetitive tasks
Scientific Management
Management practices should be based on fact and observation
Focuses on the relationship between individual workers and their tools or machines
Scientific Management
Frederick Taylor– There is “one best way” to perform a task – Time and motion studies– Money motivates employees to do their best
Frank and Lillian Gilbreth– Followers of Taylor
Henry Gantt– Control systems for production scheduling
Assessing Scientific Management
Many aspects used today Misreads human side of work Simple tasks and clear rules don’t
guarantee results
Administrative Theories
Focus on managers and their behavior Henri Fayol, French industrialist
– Management is a discipline with principles that can be taught
Max Weber– Developed the concept of “bureaucracy”
as the ideal structure for an organization
Fayol’s Administrative Principles
1. Division of labor
2. Authority to give orders
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest
7. Remuneration: pay for work done
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability and tenure of staff
13. Initiative
14. Esprit de corps
Bureaucratic Management
Formal system of rules and procedures Impersonality Hierarchical structure with detailed
authority Clear division of labor Rationality Career commitment
Assessing Administrative Theories
Managers still use many of Fayol’s principles Overemphasizes the rational behavior of
managers Advantages & disadvantages of bureaucracy
– Benefits: efficiency, consistency– Costs: rigid, slow, difficult to adapt
Behavioral Theory
Focuses on the human aspects of organizations Mary Parker Follet
– Management is a dynamic process– Workers should be involved in decisions
Chester Barnard– Organizations are social systems– Managers need “buy-in” of employees
Hawthorne Studies
A “scientific theory” study that provided strong support for the behavioral viewpoint
The Hawthorne Effect: Productivity is likely to increase when employees are given special attention regardless of whether working conditions change
The social environment of employees also greatly influences productivity
Behavioral Theory
Basic Assumptions– Employees are motivated by social needs – Social forces exerted by peers is strong – Employees respond to managers who help them
satisfy their needs– Managers need to coordinate the work of
subordinates democratically to improve efficiency
Behavioral Theory Assessment
Adds greatly to the mechanistic view of managing people
But human relation skills alone won’t guarantee increased productivity or high quality work
Managing the human aspects of an organization is a very complex task
Chaos Theory
Margaret Wheatley, 1992 Look at an organization as a living
organism Learn management from natural systems Basic Premise: Self-organization
– the tendency of living systems to organize into structure without any externally imposed plan
Chaos Theory Principles
Information access– Everyone has easy access to all the information
they need to do their job Relationships
– Everyone has easy access to anyone they need to do their job
Self-reference– The organizations core identity or purpose
Chaos Theory Assessment
Goes against many traditional beliefs about role of managers
Requires educated, involved employees Requires change in communication
methods Clear vision/joint purpose is crucial
Contingency Viewpoint
There is no best way to manage in all situations
Use the different management viewpoints as appropriate to deal with various situations
Managers must be able to diagnose and understand a situation thoroughly
Contingency Viewpoint
Basic contingency variables:– External environment– Technology– Individuals
Importance of each variable depends on type of situation and problems being faced
Assessing the Contingency Viewpoint
Useful approach - makes sense to change viewpoint depending on situation
Most managers use intuitively Diagnosis very important to determine best
approach Many don’t consider to really be a “theory”
of management– just draws on other theories
Management Theories Summary
Division of Labor - Adam Smith
Scientific Management - Taylor, Gilbreths, Gantt
Administrative Theories - Fayol, Weber
Organizational Behavior - Follett, Barnard
Chaos Theory - Wheatley
Contingency Theory