Management Theory

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Management Theory

  1. 1. Management Theory Chapter II
  2. 2. Nicolo Machiavelli • Father of Modern Politics • Born in Florence, Italy • « Machiavellian » is often used to describe cunning and manipulative opportunist. • Discourses, 1531
  3. 3. Sun Tzu • Chinese General (6th Century BC) • The Art of War  When enemy advances, we retreat!  When enemy halts, we harass!  When enemy seeks to avoid battle, we attack!  When the enemy retreats, we pursue!
  4. 4. Why Study Management theory? • Provide a stable focus for understanding what we experience. • Enable us to communicate efficiently and thus move into more and more complex relationships with other people. • Theories make it possible to keep learning about our world.
  5. 5. Evolution of Management Theory • Scientific Management • Classical Organization Theory • Behavioral School • Management Science
  6. 6. Scientific Management School
  7. 7. Frederick W. Taylor • Father of Scientific Management • Mechanical Engineer • Midvale Steel Company
  8. 8. « Scientific Management »
  9. 9. « Time and Motion Studies »
  10. 10. 4 Principles Of Scientific Management • The development of true science of management, so that the best method for performing each task could be determined. • The scientific selection of workers, so that each worker would be given responsibility for the task which he or she was best suited. • The scientific education and development of the worker. • Intimate, friendly cooperation between management and labor.
  11. 11. Henry L. Gantt • Associate of Frederick Taylor • His main focus was to apply scientific analysis to all facets of the work being done as a means of increasing productivity. • Gantt Chart and the task and bonus system
  12. 12. « Task and Bonus System »
  13. 13. Frank B. and Lilian M. Gilbreth • Made their contribution to the scientific management as a husband-and-wife team • Motion studies • Help the workers to reach their full potential.
  14. 14. « Motion Studies »
  15. 15. Classical Organization Theory School
  16. 16. Henry Fayol • Founder of Classical management school • Fayol was interested in the total organization and focused on management
  17. 17. Principles of Management by Fayol • Division of work • Authority • Discipline • Unity of Command • Unity of direction • Subordination of individual interest • Remuneration • Centralization • The hierarchy • Order • Equity • Stability of Staff • Initiative • Esprit de Corps
  18. 18. Division of work • The most people specialize, the more efficient they can perform to work.
  19. 19. Authority • Manager must have the authority to give orders, but they must also keep in mind that with authority comes responsibility.
  20. 20. Discipline • Members need to respect the rules and agreements that govern the organization.
  21. 21. Unity of Command • Each employee must receive instruction from only one person.
  22. 22. Unity in direction • Those operations within the organization that have the same objective should be directed by only one manager using one plan.
  23. 23. Subordination of Individual interest to the Common Interest • In any undertaking, the interest of the employees should not take precedence over the interest of the organization as a whole.
  24. 24. Remuneration • Compensation for work done should be fair to both employees and employers.
  25. 25. Centralization • This principle refers to how close employees are to the decision- making process. It is important to aim the approciate balance.
  26. 26. The Hierarchy • The line of authority in an organization runs in order of rank from top management to the lowest level of the enterprise.
  27. 27. Order • The workplace facilities must be clean, tidy and safe for employees. Everything should be in its place.
  28. 28. Equity • Manager should be both friendly and fair to their subordinates.
  29. 29. Stability of Staff • The managers should strive to minimize employee turnover. Personnel planning should be priority.
  30. 30. Initiatives • Subordinates should be given the freedom to conceive and carry out plans.
  31. 31. Esprit de corps • Promoting team spirit will give the organization a sense of unity.
  32. 32. Max Weber (Germany) • Bureaucrarcy  Ideal type of organization charaterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships.
  33. 33. « A well-defined formal hierarchy of command »
  34. 34. « Management by rules and regulation provides a set of standard operating procedures that facilitates consistency in both organization and management practices.
  35. 35. « Division of labor and work specilization »
  36. 36. « Managers should maintain an impersonal relationship »
  37. 37. « Competence, not personality, is the basis for job appointment »
  38. 38. « Formal written records »
  39. 39. Mary Parker Follet • People Oriented • Group Network Management • Participative Leadership  Involves managers and employees working together towards common goals like decision-making and problem-solving.
  40. 40. Group Network Management • Groups of people within the organization with equal power over outcomes.
  41. 41. « Group Interactions »
  42. 42. Chester Bernard • Acceptance theory of authority. – A manager’s authority rests on worker’s acceptance of his right to give orders and to expect compliance. • Individual workers form informal social groups that become informal organization
  43. 43. Informal Organization • It is the personal contacts and interactions between workers that form into small groups.
  44. 44. ~End~
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