1. Theories of Management
By: Jeff Koch
Todd Devenburgh
Kate McDermott

2. Scientific Management
Scientific management is a method in management theory that determines changes to improve labor productivity.
The idea was first coined by Frederick Winslow Taylor in The Principles of Scientific Management in 1911

3. Frederick Winslow Taylor
Developed the theories of Scientific Management
His innovations in industrial engineering, particularly in time and motion studies, paid off in dramatic improvements in productivity.

4. Theory of Scientific Management
Careful specification and measurement of all organizational tasks.
Tasks are standardized as much as possible.
Workers are rewarded and punished
This approach worked well for organizations with assembly lines and other mechanistic activities

5. Criticism of Scientific Management
That humans are not inherently alike. What might be the most efficient way for one person may not be for someone else.
Ignores the fact that economic interest are different for management and employees.

6. Operations Management
Henri Fayol is described as the father of operations management
Proposed five functions of management
Planning
Organizing
Commanding
Coordinating
Controlling

7. Difference between Henri Fayol and Frederick Winslow Taylor
Taylor viewed management processes from the bottom up, while Fayol viewed it from the top down.
Fayol wrote that "Taylor's approach differs from the one we have outlined in that he examines the firm from the "bottom up." he starts with the most elemental units of activity -- the workers' actions -- then studies the effects of their actions on productivity, devises new methods for making them more efficient, and applies what he learns at lower levels to the hierarchy.

8. 14 Principles of Management
Division of Work
Authority
Discipline
Unity of control
Unity of Direction
Subordination of individual interest
Remuneration
Centralization
Scalar chain (Line of Authority)
Order
Equity
Stability of Tenure of Personnel
Initiative
Esprit de Corps

9. Application of the 14 Principles
Change and Organization
Decision-making
Skills can be used to improve the effectiveness of a manager
Understanding the management can be seen as a variety of activities which can be listed and grouped

10. Behavioral Approach to Management
Focused on Human beings and their individual rights
Arose after the following were observed:
low productivity
lack of modern machinery
limited horsepower availability
anachronistic trade union practices
poor management

11. Human Relations Theory
Focused on motivation and employee care
Found if employees were satisfied with their work, they were more apt to perform better

12. Elton Mayo
Conducted Hawthorne Studies

13. Hawthorne Effect

14. Mayo’s Conclusions Work is a group activity
The social work of an adult is based on their work experiences
Workers need recognition, security, and a sense of belonging

15. Mayo’s Conclusions, Cont.
A complaint is usually due to an employee’s dissatisfaction with his or her status
A worker’s attitude is shaped from forces inside and outside of the work environment
Informal groups in the workplace improve employees’ attitudes and productivity

16. Mayo’s Conclusions, Cont.
The change from an established society at home to an adaptive society at work can create disturbances in the workforce
Group work must be planned and implemented

17. Human Resources Theory
Focused on how an employee viewed their position and work experiences.
Found that manager’s ways of managing largely contributed to how an employee viewed their work.

18. Douglas McGregor
1906 – 1964
Theory X and Theory Y

19. Theory X Average human being dislikes work:
Most employees must be controlled and threatened before they will perform to the expectations
Humans like to be directed, dislikes responsibility, and wants job security
This lead to most organizations using “tough” management
Bad form of management because the employee needs the opportunity to fulfill their goals
This led employees to dislike their work

20. Theory Y Physical and mental effort at work are very natural
Employees will be proactive if they are committed to the company and if the job is satisfying
Most employees learn to seek out responsibility
Imagination, creativity, and ingenuity can be used to solve work problems
Employees are not used to their full capacity

21. Conclusions on Theory X and Y
These two theories are impractical at the workforce and are very different
McGregor suggested that managers look at the theories to start their view of management

22. MBO MBO=Management by Objectives
Top management teams along with employees together define the company goals and direction that the company is going.
3 Key components
Specific, achievable, measurable, realistic, time-specific
Goals are not unilateral within management
Managers give objective feedback

23. MBO Popularized by Peter Drucker in 1954.
“Management by objectives works if you know the objectives. Ninety percent of the time you don’t.”-Peter F. Drucker

24. MBO
Works well within the U.S. culture, but often fails in others due to different styles in management
Ex. French because of their high power distance

25. MBO
Works well because all levels are involved in achieving the ultimate goal

26. Path-Goal Theory Developed by Robert House Remove obstacles
Clarify the path to the goal
Offer rewards

27. 4 Types of Leaders Directive Tells them how to perform tasks
Achievement Oriented
Leader sets high goals
High performance levels
Confident in expectations being met
Directive
Tells them how to perform tasks
What is expected
Directive-good for inexperienced

28. Types of Leader (cont.) Supportive Approachable Friendly
Participative
Consults with others before making decisions
Uses others suggestions to make the final decision
Supportive
Approachable
Friendly
Needed when the follower lacks confidence
Supportive-good for stressful, boring, tedious, dangerous jobs
Participative-Not as well researched

29. Questions ?