Foundations of Management Chapter 2

Classic Theories 1. Scientific Management One best way Efficiency is key Focus on individual workers Taylor, Gilbreath (tools, motions) Gantt (quotas, bonuses) 2. General Administrative Theories Perspective of the entire organization What are good management practices Fayol, Weber

Administrative Theories Fayol’s 5 functions of Management Planning Organizing Commanding Coordinating Controlling Plus 14 principles…see text pg 22

Administrative Theories - Fayol Division of labor Authority Discipline Unity of command Unity of direction Subordination of individual interests Remuneration Centralization Scalar chain of command Order Equity Retain employees Encourage initiative Esprit de Corps

Administrative Theories - Weber Bureaucracy Division of labor - divided in routine tasks Authority hierarchy – strict subordination Formal selection – based on qualifications & examinations Formal rules & regulations – strict adherence, regulate ee’s Impersonality – follow rules to avoid personal preference of ee’s Career orientation – work for money & a career Quiz

Behavioral Theories Looks at “why” people do things rather than “how” people do things (Classical) Embraces the study of sociology and psychology Attempts to understand human and employee behavior

Behavioral Theories Elton Mayo Western Electric Hawthorn Studies (Cicero) Control & experimental groups with illumination levels Both groups increased regardless of light level

Behavioral Theories Hawthorn Studies findings Financial incentives did not increase productivity. Attention was far more motivating Worked harder if they thought mgrs were concerned about them Work norms drive productivity by establishing what is a fair days work Social environment made monotonous work more palatable

Behavioral Theories Mary Parker Follett Saw org as people & not production Mgrs should use skills to lead & not order Workers need to be given responsibility Mgrs should actually receive training in mgt Work ignored for decades

Human Relations Era People oriented approach to management Looks at interaction of people & impact on org Goal: enhance organizational success by building appropriate relationships among employees

Human Relations Era Maslow’s hierarchy Herzberg’s Motivation-Hygiene theory There are satisfiers (motivators) & dissatisfiers (hygiene factors) that impact feelings toward the environment

Human Relations Era Hygiene FactorsMotivators Can lead to dissatisfaction:Leads to satisfaction: Policies Recognition Working conditions Growth on the job Relationship with supervisors Advancement Supervision received on the job Interesting work Salary Responsibility

Contemporary Theories Best practices (Mintzberg, Peters, Covey, Drucker) Orgs need clearly defined values Vision Customer driven Recognize ee’s Collaboration among ee’s Treat ee’s as valuable assets Continually train & invest in ee’s Freedom to take risks Trust, honesty, integrity

Leadership Theories

4 generations of leadership Trait theories Certain traits are inherent to leaders Behavioral theories Behaviors leaders exhibit Leadership born not learned

4 generations of leadership Contingency/situational theories Contingency – leadership style changes Situational– leader changes Contemporary views charismatic, transactional, transformational, & Kouzes & Posner…

5 Practices Model the way Set the example Have common values Working side by side Inspire a shared vision Dreams & visions of what could be Get others to understand & buy into that vision

5 Practices Challenge the process Search for opportunities to innovate, grow & improve Recognize good ideas & challenge the system to get them done Encourage risk taking

5 Practices Enable others to act Leadership is a team effort Foster collaboration Make it possible for others to do good work Empowerment

5 Practices Encourage the heart Recognize accomplishments Celebrate achievements

Top Leadership Qualities Characteristic Honest Forward Looking Inspiring Competent Intelligent Fair-minded Staight forward Broad-minded % responding N=75,000

List Qualities Good manager/leader: Poor manager/leader: