Classical Viewpoint Management Theories 2. Bureaucratic Management Max Weber (German Sociologist 1864 – 1920) A form of organization characterized by: division of labor, clear define hierarchy, detailed rules and regulations, and impersonal relationships

Classical Viewpoint Management Theories 2. Bureaucratic Management Weber’s Ideal Bureaucracy i. Impersonality Rules, procedures and sanctions be applied uniformly regardless of individual personalities and personal consideration. ii. Formal Rules and Procedures Written rules should specify the work behavior desired from organization members and ensuring uniformity.

Classical Viewpoint Management Theories 2. Bureaucratic Management Weber’s Ideal Bureaucracy Well defined hierarchy Multiple levels of position with clear reporting relationships among levels with an ability to establish accountability of actions. iv. Specialization of Labor jobs are broken down into well defined tasks so members know what expected from them and hence they can become extremely competent at their tasks.

Management Theories Classical Viewpoint 2. Bureaucratic Management Weber’s Ideal Bureaucracy Career advancement on the basis of merit Selection and promotion is based on member's qualification and performance.

Management Theories Classical Viewpoint 2. Bureaucratic Management Weber’s Ideal Bureaucracy If we summarize Bureaucracy model we should know; Impersonal system Rational organization Clear and visible hierarchy Reporting relationship Accountability system People know if they come with such experience, knowledge, education and set of skill such and such incentives, placement level, benefits, salary, advancement and many other related benefits will be given on performing tasks

Management Theories Classical Viewpoint 3. Administrative Management Henry Fayol (France 1841- 1925) Being a top manager, Henry Fayol developed his Management theory so to be taught to individuals who have administrative responsibilities. Fayol isolated the main activity types in the industry or business! With in “Managerial Activities”, Fayol identify five following activities: Planning Organizing Commanding Coordinating Controlling

Administrative Management Henry Fayol Leading Planning Organizing Commanding Coordinating Controlling POLCA

Management Theories Classical Viewpoint 3. Administrative Management An approach focusing on principles used by managers to coordinate the internal activities of the organizations. Foyal published his 14 Principles of Management

Fayol’s 14 Principles of Management Division of work. Authority. Discipline. Unity of command. Unity of direction. Subordination of individual interest to the interests of the organization. Remuneration. Centralization. Scalar chain. Order. Equity. Stability of tenure of personnel. Initiative. Esprit de corps. Exhibit 2.3

Management Theories Classical Viewpoint 3. Administrative Management Henry Fayol 14 Principles of Management Division of work. Specialization increases output by making employees more efficient. Authority. Managers must be able to give orders. Authority gives them this right. Along with authority, however goes responsibility. Discipline. Employee must obey and respect the rule that govern the organization. Unity of command. Every employee should receive orders from only one superior.

Management Theories Classical Viewpoint 3. Administrative Management Henry Fayol 14 Principles of Management Unity of direction.The organization should have single plan of action to guide Managers and Workers. Subordination of individual interest to the general interest. The interest of any one employee or group of employees should not take procedure over the interest of the organization as a whole. Remuneration. Workers must be paid a fair wage for their services. Centralization. This term refers to the degree to which the subordinates are involved in decision making.

Management Theories Classical Viewpoint 3. Administrative Management Henry Fayol 14 Principles of Management Scalar chain. The line of authority from top management to the lowest ranks in the scalar chain. Order. People and material should be in the right place at the right time. Equity. Managers should be kind and fair to their subordinates. Stability of tenure of personnel. Management should provide orderly personal planning and ensure that replacements are available to fill vacancies. Initiative. Employees who are allowed to originate cary out plans will exert high level of effort. Esprit de corps. Promoting team spirit will build harmony and unity in the organization.

Management Theories Behavioral Hawthorne Experiments Human Relation Views Behavioral Science

Management Theories Behavioral Viewpoint This view point emphasizes the importance of attempting to understand various factors affecting human behavior in organizations.

1. Hawthorne Experiments Management Theories Behavioral Viewpoint 1. Hawthorne Experiments Prior 1900: Worker a social animal After 1900: Worker as a machine After Hawthorne studies by (Elton Mayo) worker should be taken as a human! “Father of Human Relation”

Management Theories The Hawthorne Studies A series of productivity experiments conducted at Western Electric from 1927 to 1932. The result of which ultimately led to the human relation view of management. Studies demonstrated that: Human’s social and psychological needs are as important as money Social interaction of Work Group is as important as Organizational actual work. Human factor can’t be ignored in any management planning.

Management Theories The Hawthorne Studies Experimental findings Productivity unexpectedly increased under imposed adverse working conditions. The effect of incentive plans was less than expected. Research conclusion Social norms, group standards and attitudes more strongly influence individual output and work behavior than do monetary incentives.

Management Theories 2. Human Relation Views Behavioral Viewpoint Human Relation View and Human Relation Movements Abraham Maslow (1908 - 70) (Hierarchy of Needs) Douglas McGregor (1906 - 64) (Theory X and Theory Y)

Management Theories Behavioral Viewpoint Hierarchy of Needs i. Abraham Maslow (1908 - 70) Hierarchy of Needs Physiological Safety Social Esteem Self- actualization

ii. Douglas McGregor (1906 - 64) Management Theories Behavioral Viewpoint ii. Douglas McGregor (1906 - 64) (Theory X and Theory Y) Theory X Avoiding Need to Control Avoid Responsibility Workers Seek Security Theory Y Work is natural Capable of Self direction Seek responsibility Can make good decisions

Management Theories Behavioral Behavioral Science This approach emphasizing scientific research as basis for developing theories for human behavior in organizations, and provide practical guidelines for managers.