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Management Theory
This document provides an overview of the evolution of management theory from early thinkers like Machiavelli and Sun Tzu to modern schools of management. It describes Scientific Management founded by Frederick Taylor based on time and motion studies. Classical Organization Theory developed by Henry Fayol emphasized division of work, authority, and discipline. Max Weber's bureaucratic model focused on hierarchy, rules, and impersonal relationships. Later theorists like Mary Parker Follett emphasized participative leadership and group network management.
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Management Theory
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- 2. Nicolo Machiavelli • Fatherof Modern Politics • Born in Florence, Italy • « Machiavellian » is often used to describe cunning and manipulative opportunist. • Discourses, 1531
- 3. Sun Tzu • ChineseGeneral (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!
- 5. Why Study Managementtheory? • 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.
- 6. Evolution of ManagementTheory • Scientific Management • Classical Organization Theory • Behavioral School • Management Science
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- 11. Frederick W. Taylor •Father of Scientific Management • Mechanical Engineer • Midvale Steel Company
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- 19. « Time andMotion Studies »
- 21. 4 Principles OfScientific 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.
- 30. 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
- 40. « Task andBonus System »
- 42. Frank B. andLilian 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.
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- 49. Henry Fayol • Founderof Classical management school • Fayol was interested in the total organization and focused on management
- 52. Principles of Managementby 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
- 54. Division of work •The most people specialize, the more efficient they can perform to work.
- 59. Authority • Manager musthave the authority to give orders, but they must also keep in mind that with authority comes responsibility.
- 61. Discipline • Members needto respect the rules and agreements that govern the organization.
- 64. Unity of Command •Each employee must receive instruction from only one person.
- 66. Unity in direction •Those operations within the organization that have the same objective should be directed by only one manager using one plan.
- 68. Subordination of Individualinterest 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.
- 71. Remuneration • Compensation forwork done should be fair to both employees and employers.
- 74. Centralization • This principlerefers to how close employees are to the decision- making process. It is important to aim the approciate balance.
- 77. The Hierarchy • Theline of authority in an organization runs in order of rank from top management to the lowest level of the enterprise.
- 80. Order • The workplacefacilities must be clean, tidy and safe for employees. Everything should be in its place.
- 83. Equity • Manager shouldbe both friendly and fair to their subordinates.
- 87. Stability of Staff •The managers should strive to minimize employee turnover. Personnel planning should be priority.
- 91. Initiatives • Subordinates shouldbe given the freedom to conceive and carry out plans.
- 93. Esprit de corps •Promoting team spirit will give the organization a sense of unity.
- 96. Max Weber (Germany) •Bureaucrarcy Ideal type of organization charaterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships.
- 97. « A well-definedformal hierarchy of command »
- 99. « Management byrules and regulation provides a set of standard operating procedures that facilitates consistency in both organization and management practices.
- 101. « Division oflabor and work specilization »
- 103. « Managers shouldmaintain an impersonal relationship »
- 106. « Competence, notpersonality, is the basis for job appointment »
- 109. « Formal writtenrecords »
- 110. 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.
- 119. Group Network Management •Groups of people within the organization with equal power over outcomes.
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- 131. Chester Bernard • Acceptancetheory 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
- 139. Informal Organization • Itis the personal contacts and interactions between workers that form into small groups.
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