The document outlines the evolution of management theory, detailing major contributions from key figures such as Taylor, Fayol, and Mayo, among others. It discusses various management theories including Scientific Management, Classical Organization Theory, Behavioral Management Theory, and Management Science Theory, highlighting their principles and limitations. Additionally, it introduces concepts like the Open Systems View and Contingency Theory, emphasizing the importance of adapting management practices to external environmental factors.
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02 Management Theory
The document outlines the evolution of management theory, detailing major contributions from key figures such as Taylor, Fayol, and Mayo, among others. It discusses various management theories including Scientific Management, Classical Organization Theory, Behavioral Management Theory, and Management Science Theory, highlighting their principles and limitations. Additionally, it introduces concepts like the Open Systems View and Contingency Theory, emphasizing the importance of adapting management practices to external environmental factors.
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The Evolution of Management
Theory: Development of Major
Management Theories The Evolution of Management Theory The Evolution of Management Theory Scientific Management Dates Contributors Management Contributions 1856- Frederic W. 1. Four Basic principle: 1915 Taylor The development of science of management methods The scientific selection of workers The scientific education and development of the workers Friendly cooperation between management and workers 2. Differential rate system 1861- Henry L. Gant 1. Principles: 1919 Cooperation between management and workers The scientific selection of workers Incentive rate system Detailed working instruction 2. Gant Chart 1868- Frank B. Gilberts Time and motion study 1924 1878- Lillian M. Gilberts Focused on human being aspects 1972 Using Psychology approach for selection, placement and training Main contribution: Assembly line, Efficiency techniques and methods, Working design, Increasing productivity Limitations: Neglected worker as social human being, Worker Exploitation, Increasing productivity was not followed by improving income Classical Organization Theory Dates Contributors Management Contributions 1841-1925 Henry Fayol 1. Functional management: planning, organizing, directing, coordinating and controlling 2. Firm’s operations: Techniques: production and manufacturing Commercial: material purchasing and product selling Financial: income and using capital Safety: labor and asset protection Accountancy: recording and reporting Managerial Fayol’s 14 principles of management
James D Mooney Management Principles: Coordination, Authority, functional and staff
1868-1933 Marry Parker 1. Human Relation and Organizational
Follett 2. Using social science into management 3. The art of getting things done through people
1886-1961 Barnard 1. Organization as a system to achieve its goals
2. Area of acceptance Classical Organization Theory Dates Contributors Management Contributions 1863- Hugo 1. Using Psychology approach for increasing 1916 Munsterberg productivity through: Best possible persons Best possible works Best possible effect 2. Using Psychology techniques to motivate for workers 1880- Elton Mayo 1. Effect 1849 2. The role informal group to increase productivity 3. Social human concept to motivate worker Main contribution: as complementary of scientific management in increase productivity Limitations: Concept of social human did not representative completely for individual workers F.W. Taylor: Scientific Management Scientific Management ◦ The systematic study of the relationships between people and tasks for the purpose of redesigning the work process to increase efficiency. Problems with Scientific Management Managers frequently implemented only the increased output side of Taylor’s plan. ◦ Workers did not share in the increased output. Specialized jobs became very boring, dull. ◦ Workers ended up distrusting the Scientific Management method. Administrative Management Theory Administrative Management ◦ The study of how to create an organizational structure that leads to high efficiency and effectiveness. Weber’s Principles of Bureaucracy Fayol’s Principles of Management 1. Division of work. 7. Remuneration. 2. Authority. 8. Centralization. 3. Discipline. 9. Scalar chain. 4. Unity of command. 10. Order. 5. Unity of direction. 11. Equity. 6. Subordination of 12. Stability of tenure of individual interests personnel. to the general interest. 13. Initiative. 14. Esprit de corps. Behavioral Management Theory The study of how managers should personally behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals. Behavioral Management Theory
Mary Parker Follett
Concerned that Taylor ignored the human side of the organization ◦ Suggested workers help in analyzing their jobs ◦ If workers have relevant knowledge of the task, then they should control the task The Hawthorne Studies Studies of how characteristics of the work setting affected worker fatigue and performance at the Hawthorne Works of the Western Electric Company from 1924-1932. Worker productivity was measured at various levels of light illumination. The Hawthorne Studies Human Relations Implications Hawthorne effect — workers’ attitudes toward their managers affect the level of workers’ performance The Hawthorne Studies Human relations movement advocates that supervisors be behaviorally trained to manage subordinates in ways that elicit their cooperation and increase their productivity Implications of the Hawthorne Studies Behavior of managers and workers in the work setting is as important in explaining the level of performance as the technical aspects of the task Demonstrated the importance of understanding how the feelings, thoughts, and behavior of work-group members and managers affect performance Theory X vs. Theory Y Management Science Theory Management Science Theory Contemporary approach to management that focuses on the use of rigorous quantitative techniques to help managers make maximum use of organizational resources to produce goods and services. Management Science Theory Quantitative management utilizes mathematical techniques, like linear programming, modeling, simulation and chaos theory Operations management provides managers a set of techniques they can use to analyze any aspect of an organization’s production system to increase efficiency Management Science Theory Total quality management focuses on analyzing an organization’s input, conversion, and output activities to increase product quality Management information systems help managers design systems that provide information that is vital for effective decision making Organizational Environment Theory Organizational Environment The set of forces and conditions that operate beyond an organization’s boundaries but affect a manager’s ability to acquire and utilize resources Open System A system that takes resources for its external environment and transforms them into goods and services that are then sent back to that environment where they are bought by customers. The Open-Systems View Open System A system that takes resources for its external environment and transforms them into goods and services that are then sent back to that environment where they are bought by customers. The Organization as an Open System The Open-Systems View Input stage organization acquires resources such as raw materials, money, and skilled workers to produce goods and services Conversion stage inputs are transformed into outputs of finished goods Output stage finished goods are released to the external environment Closed System Closed system A self-contained system that is not affected by changes in its external environment. Likely to experience entropy and lose its ability to control itself Contingency Theory The idea that the organizational structures and control systems manager choose are contingent on characteristics of the external environment in which the organization operates. “There is no one best way to organize” Contingency Theory