Definition of Terms Management Theories- Theories that help improve the management process. Management Process- the coordinating and overseeing of the work performance of individuals working together in organizations so that they could efficiently and effectively accomplish their chosen goals. EVOLUTION OF MANAGEMENT THEORIES Scientific Management Theory The advocate of the theory is Frederick W. Taylor (1865 – 1915) and known as the Father of Scientific Management. “one best way” for a job to be done. Taylor’s Scientific Management Principles make the employees grow by training, teaching and developing workers for efficiency. Cooperation and not individualism division of labor accordingly Scientific Management Theory The Gilbreth’s Frank (1868-1924) and Lillian (1878-1972) They devised a classification scheme to label 17 basic hand motions called THERBLIGS ( derived from Gilbreth spelled backward) Administrative Management Theory The General Administrative Theory emphasizes departmentalization of functions or activities to be performed for achieving a common purpose. It also focuses on the good management practice or implementation. Henri Fayol (1841-1925) and Max Weber (1864-1920) are the people associated with such theory. Administrative Management Theory 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 Administrative Management Theory 14 Management Principles of Henri Fayol 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 Administrative Management Theory 14 Management Principles of Henri Fayol 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. Administrative Management Theory Max Weber (1864-1920) “Father of Bureaucracy” 1. division of labor 2. hierarchical identification 3. detailed rules and regulations 4. impersonal connections with one another Behavioral Management Theory - Human Relations Movement- focuses on the human aspect of work The three proponent of this theory are Mary Parker Follett, Elton Mayo and Chester Barnard. Behavioral Management Theory Mary Parker Follett- known for developing constructive conflict and coordination, she believed that conflict could be beneficial, where in managers could deal conflicts in three ways: domination, compromise, integration Behavioral Management Theory Mary Parker Follett Theories- to exist coordination among workers. 1. Increase opportunities for colleagues to work together by establishing project teams, digital conference calls, or open-plan offices. 2. Allow individuals greater flexibility to achieve their appraisal targets in their own way. 3. Encourage a flat hierarchy structure across the organization. Employees shouldn’t feel devalued but should feel that leaders are “powering with” employees. 4. Create a buddy system. Behavioral Management Theory Elton Mayo Hawthorne (1880-1949) Harvard Researcher Hawthorne effect- Studies found that human factors related to work are more important than the physical condition or the design of work, thus workers’ feelings and attitude affected their work performance Behavioral Management Theory Abraham Maslow translated Mayo's 'social needs' into a five level 'hierarchy of needs' Management Science Theory Quantitative Theory originated in World War II and revealed that the spirit of scientific management commitment, use of quantitative measurement and computer modeling theory such as analysis of complex business problems which gradually become a branch of the management science and operations management perspective. Contributes to managerial decision making, particularly in planning and controlling. Organizational Environment Theory Organization is a part of larger environment outside its boundaries and is affected by social, technical and economic factors which are in form of systems perspective based on physical sciences. Basic types of systems: Open system- interacts with its environment Closed System- has NO interaction with its environment. Directions: Read the paragraph and Scenario: You are employed by a 350-bed urban medical center. You directly supervise 30 staff Physical Therapists in the Rehabilitation Department in which you are the Department Head (DH). Over the last 5 years leadership has discussed merging with another smaller hospital in the local area. This hospital is a 120-bed facility that has faced various financial and patient care safety issues. As a result of the merger the management structure has been realigned to ensure operational functions of both physical facilities are controlled by a single manager-you have been chosen as that new manager. Draw your concept of a manager Instructions: Choose one of the five basic management functions: Planning, Organizing, Staffing, Leading or Controlling. Clearly describe why you chose this function and why you feel this particular function is essential to your effective management as a result of the merger.