Theories of Management
By: Jeff Koch
Todd Devenburgh
Kate McDermott
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
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.
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
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.
Operations Management
 Henri
Fayol is described as the father of
operations management
 Proposed five functions of management
 Planning
 Organizing
 Commanding
 Coordinating
 Controlling
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.
14 Principles of Management

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



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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
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
Behavioral Approach to Management
 Focused
on Human beings and their
individual rights
 Arose
 low
after the following were observed:
productivity
 lack of modern machinery
 limited horsepower availability
 anachronistic trade union practices
 poor management
Human Relations Theory
 Focused
on motivation and employee
care
 Found
if employees were satisfied with
their work, they were more apt to
perform better
1880-1949
Conducted Hawthorne
Studies
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
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
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
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.
1906 – 1964
Theory X and Theory Y
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
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
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
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


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Specific, achievable, measurable, realistic, time-specific
Goals are not unilateral within management
Managers give objective feedback
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
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
MBO
 Works
well because all levels are
involved in achieving the ultimate goal
Path-Goal Theory
 Developed
 Remove
by Robert House
obstacles
 Clarify the path to the goal
 Offer rewards
4 Types of Leaders

Achievement Oriented
 Leader sets high
goals
 High performance
levels
 Confident in
expectations being
met
 Directive
 Tells
them
how to
perform
tasks
 What is
expected
Types of Leader (cont.)

Participative
 Consults with
others before
making decisions
 Uses others
suggestions to
make the final
decision
 Supportive
 Approachable
 Friendly
 Needed
when
the follower
lacks
confidence
Questions
?