Management theories Ankita Prabhakar, Asst.Prof.

Figure 2.1 Chronological Development of Management Perspectives Ankita Prabhakar, Asst.Prof.

Focuses on the individual worker’s productivity Figure 2.2 Subfields of the Classical Perspective on Management Focuses on the individual worker’s productivity Focuses on the overall organizational system Focuses on the functions of management Ankita Prabhakar, Asst.Prof.

A) Scientific Management 1) Frederick W. Taylor (1856-1915) Father of “Scientific Management. Attempted to define “the one best way” to perform every task through systematic study and other scientific methods. Believed that improved management practices lead to improved productivity. Three areas of focus: Task Performance Supervision Motivation Ankita Prabhakar, Asst.Prof.

1. Task Performance Scientific management incorporates basic expectations of management, including: Development of work standards Selection of workers Training of workers Support of workers Ankita Prabhakar, Asst.Prof.

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. Ankita Prabhakar, Asst.Prof.

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. Ankita Prabhakar, Asst.Prof.

A) Scientific Management (contd.) 2) Lillian Gilbreth A strong proponent of better working conditions as a means of improving efficiency and productivity. Favored standard days with scheduled lunch breaks and rest periods for workers. Strived for removal of unsafe working conditions and the abolition of child labor. Ankita Prabhakar, Asst.Prof.

B) Administrative Management 1) Henri Fayol (1841–1925) First recognized that successful managers had to understand the basic managerial functions. Developed a set of 14 general principles of management. Fayol’s managerial functions of planning, leading, organizing and controlling are routinely used in modern organizations. Ankita Prabhakar, Asst.Prof.

Ankita Prabhakar, Asst.Prof.

3. Bureaucratic Management Focuses on the overall organizational system. Bureaucratic management is based upon: Firm rules Policies and procedures A fixed hierarchy A clear division of labor Ankita Prabhakar, Asst.Prof.

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.” Division of labor Hierarchy of authority Rules and procedures Impersonality Employee selection and promotion Ankita Prabhakar, Asst.Prof.

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). Ankita Prabhakar, Asst.Prof.

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: Mary Parker Follett Elton Mayo Douglas McGregor Ankita Prabhakar, Asst.Prof.

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 Ankita Prabhakar, Asst.Prof.

Follett Principles of Coordination Four principles of coordination to promote effective work groups: Coordination requires that people be in direct contact with one another. Coordination is essential during the initial stages of any endeavor. Coordination must address all factors and phases of any endeavor. Coordination is a continuous, ongoing process. Ankita Prabhakar, Asst.Prof.

2. Elton Mayo Conducted the famous Hawthorne Experiments. “Hawthorne Effect” Job satisfaction increases as workers were given more freedom to - a) determine condition of their working environment. b) set their own standards of output 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. Ankita Prabhakar, Asst.Prof.

3. Douglas McGregor Proposed the Theory X and Theory Y styles of management. Theory X managers perceive that their subordinates have an inherent dislike of work and will avoid it if at all possible. Theory Y managers perceive that their subordinates enjoy work and that they will gain satisfaction from performing their jobs. Ankita Prabhakar, Asst.Prof.

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-motivated of 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 Ankita Prabhakar, Asst.Prof.

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: A decision-making focus Development of measurable criteria Formulation of a quantitative model The use of computers Ankita Prabhakar, Asst.Prof.

The Quantitative Perspective (cont’d) 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. 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. Quantitative Model To assess the likely impact of each alternative on the stated criteria, a quantitative model of the decision situation must be formulated. Computers Computers are quite useful in the problem-solving process. Ankita Prabhakar, Asst.Prof.

Theory 4: Systems Perspective An approach to problem solving based on an understanding of the basic structure of systems Ankita Prabhakar, Asst.Prof.

Theory 4: Systems Perspective (contd.) Environmental interaction Open systems must interact with the external environment to survive. 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. Ankita Prabhakar, Asst.Prof.

Theory 5:The Contingency Perspective A view that proposes that there is no one best approach to management for all situations. Asserts that managers are responsible for determining which managerial approach is likely to be most effective in a given situation. This requires managers to identify the key contingencies in a given situation. Ankita Prabhakar, Asst.Prof.

Blending Components into a Contingency Perspective Ankita Prabhakar, Asst.Prof.

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: Small-batch technology Mass-production technology Continuous-process technology Ankita Prabhakar, Asst.Prof.

Production Technology Examples 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, manufacturer technology of refrigerators, manufacturer of hair dryers, manufacturer of pencils Continuous-process Oil refinery, flour mill, soft drink bottler, technology chemical processor Ankita Prabhakar, Asst.Prof.

Management in the 21st Century William Ouchi’s Theory Z Japanese-style approach to management developed by William Ouchi Advocates trusting employees and making them feel like an integral part of the organization. Based on the assumption that once a trusting relationship with workers is established, production will increase. Ankita Prabhakar, Asst.Prof.