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 Factors
Motivators
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
2007 2002 1995 1987
89
71
69
68
48
39
36
35
88
71
65
66
47
42
34
40
88
75
68
63
40
49
33
40
83
62
58
67
43
40
34
37
List Qualities
Good
manager/leader:
Poor
manager/leader: