Hello, Students! Feilcris P. Luspo Teacher Are you ready to learn? ORGANIZATION and MANAGEMENT Let's get started! MANAGEMENT THEORIES An organization style is a result from theories they learned from various period. Understanding the various management theories will able to help business students to have a basis for the decisionmaking as future managers. Management Theories helped the decision-maker to have legal grounds or basis for soundful decisions. Management Process managing and supervision of work performance of people working in an organization. Frederick W. Taylor (1865-1915) Father of Scientific Management Scientific Management Theory Cites the inefficiencies and mistakes of employees during a routine work. Lack of enthusiasm, discrepancy of abilities and aptitude as acontributory factor to low productivity. Taylor's Scientific Management Principles 1. Use scientific approach in developing an element for each worker not just a mere rule of thumb. 2. Make the employees grow by training, teaching and developing workers for efficiency. 3. Cooperation and not individualism 4. division of labor accordingly General administrative Theory emphasizes departmentalization of functions or activities to be performed for achieving a common purpose Henri Fayol (1841-1925) Max Weber (1864-1920) 14 Management Principles of Henri Fayol 1. Division of labor – breaking of job into specialized tasks for efficiency of productivity. 2. Authority – right given to a person to influence by giving orders or command to a person. 3. Discipline – the uniform application of rightful behavior. 4. Unity of Command – employees must have only one supervisor. 5. Unity of Direction – efforts of every employee must be aligned to organizational objectives. 6. Subordination of the individual interest to the general interest – employees must prioritize the welfare of the organization rather than self-interest. 7. Remuneration – employees should be paid fairly and accordingly with the prescribed labor laws. 8. Centralization – the concentration of control of an activity or organization under a single authority. Decentralization is the empowerment of sub-groups in organization due to complexity or growth. 9. Scalar chain – employees should follow the official chain of command and must not by-pass the authorities found in organizational charts. 10. Order – human and non-human resources should be in proper places. 11. Equity – result of kindliness and justice in every decision. 12. Stability of tenure – employees must be assured of permanency of job position. 13. Initiative – management must let employees to act own their own free-will or volition. 14. Esprit de Corps – teamwork by having harmony and sense of unity. Weber’s Bureaucracy 1. division of labor 2. hierarchical identification 3. detailed rules and regulations 4. impersonal connections with one another TOTAL QUALITY MANAGEMENT is a management philosophy developed by W. Edwards Deming and Joseph M. Juran regarding the quality imposition to products or services. It was introduced in 1950’s but the idea was not accepted immediately by the United States due to market dominance. The country of Japan developed and crafted to produce quality products which became successful making the Western Countries to adjust and consider the TQM Philosophy. Deming 14 Points for Top Management 1. Create constancy of purpose for improving products and services. 2. Adopt the new philosophy. 3. Cease dependence on inspection to achieve quality. 4. End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier. 5. Improve constantly and forever every process for planning, production and service. 6. Institute training on the job. 7. Adopt and institute leadership. 8. Drive out fear. 9. Break down barriers between staff areas. 10. Eliminate slogans, exhortations and targets for the workforce. 11. Eliminate numerical quotas for the workforce and numerical goals for management. 12. Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit system. 13. Institute a vigorous program of education and selfimprovement for everyone. 14. Put everybody in the company to work accomplishing the transformation. Juran’s Fitness to Quality 1. Quality of Design – design must be in relevance to the usage or purpose of the product. 2. Quality of Conformance – must conform with the standards set. 3. Availability – continuous supply of products to customers 4. Full service – promptness, integrity, and competence of products. Organizational Behavior the process of studying on how to understand and adjust to the different people that comprises an organization. This behavior theory helps manager to carry out functions in the leading, conflict resolution and other instances in the organization. Munsterberg suggested in the early 1900’s to use psychological tests for the selection of employees and Barnard in the 1930’s suggested to use cooperation in organizations since it is a social system in structure That's what management theory is all about.....Did you learn something today? Can you share it to the class?