Management Theories


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Management Theories

  1. 1. Management Theories: Taylorism, Fordism and Bureaucracy Management School of MMCP
  2. 2. Taylorism: Scientific Management F.W. Taylor (1856 – 1917) <ul><li>Motivation and Basis for Scientific Management: </li></ul><ul><ul><li>Taylor believed workers put in minimal effort </li></ul></ul><ul><ul><li>Essential to develop a ‘science’ to replace ‘rule of thumb’ </li></ul></ul><ul><ul><li>The scientific selection, training and development of workers instead of allowing them to choose their own tasks and train themselves as best they could. </li></ul></ul><ul><ul><li>Instrumental view of human behaviour – worker as ‘units of production’ </li></ul></ul><ul><ul><li>‘ One best Way’ to maximise productivity </li></ul></ul><ul><ul><li>Workers motivated by money </li></ul></ul>
  3. 3. Principles of Scientific Management <ul><li>Clearly defined tasks </li></ul><ul><li>Clear explanation of authority </li></ul><ul><li>Division of work and responsibility </li></ul><ul><li>Financial incentives </li></ul><ul><li>Scientific selection of workers </li></ul><ul><li>Separation of planning from operations </li></ul><ul><li>Standardisation of procedures </li></ul>
  4. 4. Bethlehem Steel Corporation Studies <ul><li>Taylor appointed as management consultant to improve productivity levels </li></ul><ul><li>Applied principles of scientific management to production of pig iron </li></ul><ul><li>Result: increased productivity by 60% </li></ul>
  5. 5. Taylorism: Critique <ul><ul><li>the presence of a capitalist system and a money economy, as their main objective is improvement of efficiency and the maximization of profit </li></ul></ul><ul><ul><li>T oo much management control over workers </li></ul></ul><ul><ul><li>Rose: no ‘one best way’ </li></ul></ul><ul><ul><li>Putting the perceived requirements of their organization before their own personal objectives and goals </li></ul></ul><ul><ul><li>Worker interests and motivation? </li></ul></ul>
  6. 6. Fordism: Henry Ford (1863 – 1947) <ul><li>Ford established motor company in 1903 </li></ul><ul><li>Fordism: application of science management principles to workers jobs </li></ul><ul><ul><li>Analysis of jobs using time and motion techniques </li></ul></ul><ul><ul><li>Standardised parts </li></ul></ul><ul><ul><li>Task specialisation </li></ul></ul><ul><ul><li>Assembly line working </li></ul></ul><ul><li>Mass produced goods </li></ul><ul><li>High level of control </li></ul>
  7. 7. Bureaucracy (Weber) <ul><li>Bureaucracy regarded as a sub-division under the classical heading of management theories. It is a form of structure found in many large-scale organisations. </li></ul><ul><li>The growth of bureaucracy came about through the increasing size and complexity of organisations and the subsequent demand for effective administration of such organisations. </li></ul><ul><li>Weber was a German sociologist whose main interests were on power, authority and organisational structures. </li></ul>
  8. 8. Main Characteristics of Bureaucracy <ul><li>Hierarchy of authority </li></ul><ul><li>Task specialisation </li></ul><ul><li>Task allocation </li></ul><ul><li>Formal system of rules and regulations </li></ul><ul><li>Employment on the basis of technical competence </li></ul><ul><li>Administration based on expertise and discipline </li></ul>
  9. 9. Bureaucracy: Critique <ul><li>Bureaucracy is the most common structure due to the size and complexity of many modern day organisations. </li></ul><ul><ul><li>Increasing size leads to increased specialisation. This requires coordination and control </li></ul></ul><ul><ul><li>Increasing complexity requires specialised skills and rules and regulations </li></ul></ul><ul><li>But: </li></ul><ul><ul><li>‘ dysfunctions’ of bureaucracy: unintended consequences; lack of initiative and flexibility; restricts individual growth. </li></ul></ul>
  10. 10. Conclusion <ul><li>Classical Theories and approaches to studying management and organisational behaviour: </li></ul><ul><ul><li>Taylorism - principles of scientific management </li></ul></ul><ul><ul><li>Fordism – assembly line working and mass production </li></ul></ul><ul><ul><li>Bureaucracy (Weber) – control, structure and hierarchy of authority </li></ul></ul><ul><li>Classical theories viewed organisations as rational and mechanistic – organisations as ‘machines’ </li></ul><ul><li>Did not take into account the social aspects of work </li></ul>