theories of mgmt.ppt

7/29/2019 THEORIES OF MGMT.ppt

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Management Approaches

Classical

Humanistic

Management Science Recent Trends

Systems Theory

Contingency View


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3 Classical Approaches toManagement

Classical Approaches

Assumption: Peopleare rational

BureaucraticOrgnaization

Max Weber

AdministrativePrinciples

Henry FayolMary Parker Follett

ScientificManagement

Fredrick TaylorThe Gilbbreths


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1. Classical Perspective

Emerged during the 19th and 20thcenturies

Factory systems appearing in 1800s

Problems: Tooling the plants

Organizing managerial structure

Training employees (many immigrants) Scheduling complex manufacturing

operations

Increased labor dissatisfaction; strikes


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Scientific Management


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Frederick Taylor, Engineer Father ofScientific Management

Problem in labor productivity lies withpoor management practices, notlabor.

Manner of change can be determinedonly by scientific study.

Replace rules of thumb and tradition

with precise procedures developedafter careful study.

Work with Bethlehem Steel plant in1898


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Bureaucratic Organizations

Classical Perspective


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Max Weber was the major contributor tobureaucratic management. Bureaucraticmanagement focuses on the ideal form of

organization.

Weber concluded that many early organizationswere inefficiently managed, with decisions

based on personal relationships and loyalty.


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He proposed that a form of organization, calleda bureaucracy, characterized by division oflabor, hierarchy, formalized rules,

impersonality, and the selection and promotionof employees based on ability, would lead tomore efficient management.

Weber also contended that managers' authorityin an organization should be based not ontradition or charisma but on the position heldby managers in the organizational hierarchy


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Max Weber, German Theorist

Envisioned organizations managed on animpersonal, rational basis.

An organization based on rational authority

would be more efficient and adaptable tochange.

Employee selection and advancementbased on competence.

Rely on rules and written records forcontinuity.


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BEHAVIORALSCHOOL

HumanRelation(1930)

BehavioralScience(1950)


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The behavioral school focused ontrying to understand the factors

that affect human behavior atwork.


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HUMAN RELATIONS

The Hawthorne Experiments began in 1924 andcontinued through the early 1930s. A variety ofresearchers participated in the studies,

including Clair Turner, Fritz J. Roethlisberger,and Elton Mayo

One of the major conclusions of the Hawthorne

studies was that workers' attitudes areassociated with productivity.


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Another was that the workplace is a social system andinformal group influence could exert a powerful effect onindividual behavior.

Another was that the workplace is a social system andinformal group influence could exert a powerful effect onindividual behavior.

According to the human relations school, the managershould possess skills for diagnosing the causes of humanbehavior at work, interpersonal communication, andmotivating and leading workers.


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BEHAVIORAL SCIENCE

Behavioral science and the study oforganizational behavior emerged in the1950s and 1960s.

The behavioral science school was anatural progression of the humanrelations movement. It focused on

applying conceptual and analytical toolsto the problem of understanding andpredicting behavior in the workplace.


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The study of behavioral science was also aresult of criticism of the human relationsapproach as simplistic and manipulative in its

assumptions about the relationship betweenworker attitudes and productivity.

The behavioral science school has contributed

to the study of management through its focuson personality, attitudes, values, motivation,group behavior, leadership, communication,and conflict, among other issues.


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Administrative Principles

Classical Perspective


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Henri Fayol, French Engineer

General and Industrial Management

Proposed 14 general principles of

management Unity of command (one supervisor)

Division of work (specialization)

Unity of direction (group similar

activities) Scalar chain (chain of authority)


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Behavioral SciencesApproach

Humanistic Perspective


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Behavioral Sciences Approach

Develops theories about human behaviorbased on scientific methods and study.Draws from sociology, psychology,

anthropology, economics and otherdisciplines to understand employeebehavior and interaction in anorganizational setting.

Impacts motivation, communication,leadership and human resourcemanagement.


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Third Perspective: MgtScience


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Management SciencePerspective

World War II created sophisticated tools formodern global warfare.

Applies mathematics, statistics and other

quantitative techniques to managementdecision-making and problem-solving.

Operations Research

Operations Management

Management Information Systems Queuing Theory


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This is a modern extension ofScientific Management Theory in thisapproach describes how precisequantitative techniques can be usedin order to make the best use oforganizational resources.


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ManagementScienceTheory

QuantitativeManagement

OperationsManagement

Total QualityManagement

ManagementInformation

Systems


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Quantitative management emphasises on howarithmetic can be manipulated to achieve best practisesin inventory and financial capital control.

Operations management presents a set of techniquesthat can be utilized to improve production efficiency

Total quality management focuses on the art of howthe whole can be managed to achieve excellence.

Management information systems provide themanagers with adequate information about internal andexternal events of an organization to effective decisionmaking.


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Systems Theory

A set of interrelated parts thatfunction as a whole to achieve acommon purpose.

Inputs

Transformation process

Outputs

Feedback Environment


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Defines a system as a set of interrelated andinterdependent parts arranged in a mannerthat produces a unified whole

Closed system : a system that is notinfluenced by and does not interact with itsenvironment

Open system: a system that dynamically

interacts with its environment Stakeholders: any group that is affected

by organizational decisions and policies


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The Organization andits Environment


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Contingency View

Universalist View (classical perspective) management concepts are universal

Case View Each situation is unique.

Contingency View A managersresponse depends on identifying keyvariables in an organizational situation.What works in one setting may not work in

another. Contingencies include theenvironment, industry, technology andinternational cultures.


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It discloses that there is no best wayto organize therefore characteristicsof the environment affect anorganizations ability to obtainresources.


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Types of structures


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In conclusion managers in aMechanistic structure can obtaininputs at a lower cost preferably in a

stable environment and managers inan organic environment can reactmore quickly in a rapidly changing

environment.

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