Management Theory

1. THEORY
MANAGEMENTCh. 3

2. EVOLUTION OF
THEORIES
Every organization has a
management philosophy
or practice. They are like
guidelines that represent
how people think work
relationships should be
accomplished.
MANAGEMENT
1. CLASSICAL
HUMAN RELATIONS
2.
HUMAN RESOURCE3.
TEAMWORK APPROACH4.
MANAGEMENT
THEORIES

3. EVOLUTION OF
THEORIES
Every organization has a
management philosophy
or practice. They are like
guidelines that represent
how people think work
relationships should be
accomplished.
MANAGEMENT
1. CLASSICAL
HUMAN RELATIONS
2.
HUMAN RESOURCE3.
TEAMWORK APPROACH4.
• Taylor’s classical theory
• Fayol’s general theory
• Weber’s bureaucratic theory
• McGregor’s Theory X
MANAGEMENT
THEORIES

4. EVOLUTION OF
THEORIES
Every organization has a
management philosophy
or practice. They are like
guidelines that represent
how people think work
relationships should be
accomplished.
MANAGEMENT
1. CLASSICAL
HUMAN RELATIONS
2.
HUMAN RESOURCE3.
TEAMWORK APPROACH4.
• Taylor’s classical theory
• Fayol’s general theory
• Weber’s bureaucratic theory
• McGregor’s Theory X
• Rothlisberger’s Hawthorne
Studies
MANAGEMENT
THEORIES

5. EVOLUTION OF
THEORIES
Every organization has a
management philosophy
or practice. They are like
guidelines that represent
how people think work
relationships should be
accomplished.
MANAGEMENT
1. CLASSICAL
HUMAN RELATIONS
2.
HUMAN RESOURCE3.
TEAMWORK APPROACH4.
• Taylor’s classical theory
• Fayol’s general theory
• Weber’s bureaucratic theory
• McGregor’s Theory X
• Rothlisberger’s Hawthorne
Studies
• McGregor’s Theory Y
MANAGEMENT
THEORIES

6. EVOLUTION OF
THEORIES
Every organization has a
management philosophy
or practice. They are like
guidelines that represent
how people think work
relationships should be
accomplished.
MANAGEMENT
1. CLASSICAL
HUMAN RELATIONS
2.
HUMAN RESOURCE3.
TEAMWORK APPROACH4.
• Taylor’s classical theory
• Fayol’s general theory
• Weber’s bureaucratic theory
• McGregor’s Theory X
• Rothlisberger’s Hawthorne
Studies
• McGregor’s Theory Y
• Theory Z
MANAGEMENT
THEORIES

7. THEORY
MANAGEMENTCh. 3

8. What do
you think
motivates
people to
come to
work
each
morning?

9. What do
you think
motivates
people to
come to
work
each
morning?

10. • Considered one of the
forefathers of contemporary
management thinking.
• Studied human behavior and
presented two theories on
human motivation.
• Two answers to the question:
Theory X and Theory Y (The
Human Side of Enterprise, 1960).
• Managers have assumptions
about our motivations &
express these in their comm.Douglas McGregor

11. Theory X managers assume that workers are lazy, unmotivated, and only work
for money. Therefore, workers need to be closely directed and controlled.
Mr. Burns

12. Theory X managers assume that workers are lazy, unmotivated, and only work
for money. Therefore, workers need to be closely directed and controlled.
=> Management’s job is to persuade, reward, punish & control workers
Mr. Burns

13. Theory X managers assume:
• Management responsible for
organizing & directing people
& resources to achieve
economic goals
• Management must direct people
by controlling, directing & modifying
their efforts to meet org goals
• Employees would be unproductive &
passive without reward/punishment
• Employees: not that smart, dislike work,
indiff. to org needs, resistant to change

14. DOUGLAS McGREGOR’S
THEORY Y
Written well before the human
resource management
approach was popularized but
characteristic of that approach.
Assumes workers are
intrinsically motivated to
accomplish goals
Their drive can be explained
by Maslow’s hierarchy of needs

15. Theory Y managers assume that work is as natural as play.
Workers want to take responsibility, and can direct
themselves in the right circumstances.

16. Physiological Food, Clothing, Shelter
MASLOW’S HIERARCHY OF NEEDS
Explains what motivates people to act

17. Physiological Food, Clothing, Shelter
Safety Security, Freedom from Fear
MASLOW’S HIERARCHY OF NEEDS
Explains what motivates people to act

18. Physiological Food, Clothing, Shelter
Safety Security, Freedom from Fear
Friendships, AcceptanceSocial
MASLOW’S HIERARCHY OF NEEDS
Explains what motivates people to act

19. Physiological Food, Clothing, Shelter
Safety Security, Freedom from Fear
Friendships, AcceptanceSocial
Esteem Ego, Recognition, Respect
MASLOW’S HIERARCHY OF NEEDS
Explains what motivates people to act

20. Physiological Food, Clothing, Shelter
Safety Security, Freedom from Fear
Friendships, AcceptanceSocial
Esteem Ego, Recognition, Respect
Self-
Actualization Self-fullfillment,
Achieving one’s potential
MASLOW’S HIERARCHY OF NEEDS
Explains what motivates people to act

22. Do you think most students
learn best by Theory X or
Theory Y?
Which teaching approach
do you prefer?

23. Design a syllabus primarily using the principles of Theory X
THEORY X GROUP:
Design a syllabus primarily using the principles of Theory Y
THEORY Y GROUP:

24. POSSIBLE
ASSIGNMENTS
• attendance
• participation
• tests
• quizzes
• papers
• group papers
• projects
• presentations
• debates
• speeches
• journal entries
• self-reflective essays

25. This should be a syllabus that would motivate students to
study, do well, and maximize learning.
If you choose to include attendance, will students get credit
for attending class or be penalized for missing class? If you
choose tests, will the test be essay or multiple choice?
Include
• 3 course objectives
• the title of each assignment
• the weight of each assignment
• brief description of each assignment
• grading criteria

27. • What parallels can you draw between the ways a professor
manages a classroom and the ways managers organize at
work? Are there any significant differences?
• Were you surprised how the class voted?
• Do you think certain subjects lend themselves more to one
theory?
• Which syllabus do you think would maximize student
learning? Student enjoyment?
• Are these mutually exclusive?
• Do students want the freedom to choose their own
assignments or do they want to be told exactly what to do
(samples for them to follow directly)? Why?
• To what extent do you think that professors’ assumptions
about human motivation become self-fulfilling prophecies?

28. SOMETHING TO CONSIDER
PROPHECY
Prediction that comes true
because we act on it as
though it were true.
At the heart of McGregor’s
argument is the notion
that managerial
assumptions and attitudes
represent self-fulfilling
prophecies.
SELF-FULFILLING

29. STAGES OF THE PROPHECY
1. You make a prediction about someone

30. STAGES OF THE PROPHECY
1. You make a prediction about someone
2. You act toward that person as if prediction was true

31. STAGES OF THE PROPHECY
1. You make a prediction about someone
2. You act toward that person as if prediction was true
3. Prediction becomes true because of your behavior

32. STAGES OF THE PROPHECY
1. You make a prediction about someone
2. You act toward that person as if prediction was true
3. Prediction becomes true because of your behavior
4. Your beliefs about person are strengthened

33. STAGES OF THE PROPHECY
1. You make a prediction about someone
2. You act toward that person as if prediction was true
3. Prediction becomes true because of your behavior
4. Your beliefs about person are strengthened

34. STAGES OF THE PROPHECY
1. You make a prediction about someone
2. You act toward that person as if prediction was true
3. Prediction becomes true because of your behavior
4. Your beliefs about person are strengthened
1. The students in my class are ill prepared
2. You dumb down your lectures, don’t ask questions...
3. Students perform poorly on exam
4. Belief that students are ill prepared is strengthened
EXAMPLE

35. • First management theory
• Originated in the early 1900s during industrialization
and urbanization
• Attempted to standardize human labor
CLASSICAL MANAGEMENT
THEORY

36. FREDERICK TAYLOR’s
CLASSICAL
Concerned with
increasing productivity by
increasing the efficiency
of workers, especially in
steel manufacturing.
THEORY

37. Systematic soldiering
TAYLOR OBSERVED:
TAYLOR’S SOLUTION:
Find scientific means of knowing
how much work should be
accomplishable so that standards
can be set accordingly.
Veteran workers persuaded
newcomers to slow down so
as not to raise expectations
of output.

38. 4
TAYLOR’S PRINCIPLES OF MANAGEMENT
• Find best way to do each job
• Select/train “scientifically”
• Productivity-based
compensation
• Divide managers’ and workers’
responsibilities

39. HENRI FAYOL’S
GENERAL
MANAGEMENT
Less concerned with increasing
productivity through micro-
practices and instead focused
on organizational structure and
the chain of command.
THEORY
Transmissional, top-down
model of communication:
manager gives orders to
workers via chain of command.

40. PRINCIPLES OF MANAGEMENT. MOST UNIQUE:
“ESPRIT DE CORPS”
14

41. MAX WEBER
BUREAUCRATIC
• Eliminating bias through crafting
policies and rules
• Workers enter freely into
contractual relationships
• Managers use strict systematic
discipline and control
THEORY

42. MAX WEBER
BUREAUCRATIC
• Eliminating bias through crafting
policies and rules
• Workers enter freely into
contractual relationships
• Managers use strict systematic
discipline and control
THEORY
Problem: when bureaucracies
become so steeped in policy that
rapid adjustment to new needs
becomes difficult (red tape).

43. In what ways is
classical management
theory present in
modern organizations?

44. AMAZON RISING, CNBC, 2014

46. New York Times: Amazon A 'Bruising Workplace’
August, 2015

47. • Emerged from classical
management theory
• Began after WWII as
women remained in the
workforce
HUMAN RELATIONS
THEORY

48. ROTHLISBERGER
HUMAN
RELATIONS
Hawthorne Studies
• Illumination studies
• Relay assembly
experiments
• Discovery of the
Hawthorne effect
MANAGEMENT THEORY

49. HAWTHORNE STUDIES

50. ILLUMINATION STUDIES, 1924
• Designed to test the effect of lighting intensity
on productivity
• Influence of human
relations on work
behavior: mere
practice of observing
people alters their
behavior.

51. HUMAN RELATIONS MANAGEMENT
• Understand that workers are
motivated by social relationships
Managers should:

52. HUMAN RELATIONS MANAGEMENT
• Understand that workers are
motivated by social relationships
• Use two-way communication
Managers should:

53. HUMAN RELATIONS MANAGEMENT
• Understand that workers are
motivated by social relationships
• Use two-way communication
• Listen to employees to know
concerns
Managers should:

54. HUMAN RELATIONS MANAGEMENT
• Understand that workers are
motivated by social relationships
• Use two-way communication
• Listen to employees to know
concerns
• Use persuasion not coercion
Managers should:

55. HUMAN RELATIONS MANAGEMENT
• Understand that workers are
motivated by social relationships
• Use two-way communication
• Listen to employees to know
concerns
• Use persuasion not coercion
Managers should:

56. HUMAN RELATIONS MANAGEMENT
• Understand that workers are
motivated by social relationships
• Use two-way communication
• Listen to employees to know
concerns
• Use persuasion not coercion
Managers should:

57. HUMAN RESOURCE MGMT
• Became popular in 1970s and 1980s
• U.S. economy shifted from manufacturing
to service
• Less job security, more employee mobility

58. McGREGOR’S THEORY Y
HUMAN RESOURCE
MANAGEMENT
Workers seen as sources of
creativity, innovation, and
problem solving
Workers receive
development and support
within the organization
THEORY

59. McGREGOR’S THEORY
• Delegate control
Managers should: Y

60. McGREGOR’S THEORY
• Delegate control
• Allow job
enlargement
Managers should: Y

61. McGREGOR’S THEORY
• Delegate control
• Allow job
enlargement
• Allow participatory
decision-making
Managers should: Y

62. McGREGOR’S THEORY
• Delegate control
• Allow job
enlargement
• Allow participatory
decision-making
• Allow workers to
make their own goals
Managers should: Y

63. McGREGOR’S THEORY
• Delegate control
• Allow job
enlargement
• Allow participatory
decision-making
• Allow workers to
make their own goals
Managers should: Y

64. 1. Training opportunities
2. Participation
3. Employment security
4. Job descriptions
5. Results-oriented appraisal
6. Internal career opportunities
Characteristics:
HUMAN RESOURCE
MANAGEMENT

65. • Originated in the late twentieth century due to
globalization
• Influenced by Japanese management approach
• Focus on self-managed teams
TEAMWORK APPROACH

66. OUCHI
THEORY Z
Focuses on increasing
employee loyalty to the
company by providing tenure &
concentrating on employee
well-being, on & off the job.
Prerequisites:
• Org. identification
• Understanding of the entire
work process
• Collective autonomy
• Teams make decisions
through consensus and have
control over resources

67. CONCERTIVE CONTROL
• Pressure not from the “boss,” but from other
team members
• Peer pressure to conform to team norms

68. In what ways are classical,
human relations, human
resources, or teamwork
management theories
present in modern day
organizations?