MLSMNGT

• Management Theory


  • Provides a stable focus for understanding what we experience
  • Enables us to communicate efficiently and thus move into more and more complex relationships with other people
  • Possible to challenge us – to keep learning about our world
• Management


  • (old French) the directing
  • (Latin) to lead by the hand
  • The process of leading and directing all or part of an organization
  • The practice of achieving organizational goals in an effective and efficient manner by working with and through people
• Evolution of Management Theory


  • Classical Management School (1880-1930)
  • Neo-classical Management School (1920-1950)
  • Modern Management School (systems, contingency, organizational humanism, management science)
• Approaches to Management Theories


  • Classical Theory
  • Behavioral Science Theory
  • Management Science Theory
  • Operations Management Theory
  • Systems Perspective Theory
  • Contingency Theory
• Classical Management Theory/Classical Theory


  • Traditional theory
  • Constitutes the discipline and process of management in an organization
  • Emphasizes employee's physical needs over job satisfaction or social needs
• Contributors to Scientific Management Theory


  • Frederick Taylor
  • Henry Gantt
  • Frank and Lilian Gilbreth
• Scientific Management Theory


  • Developed to increase productivity through labor efficiency in the early 20th century
• Frederick Taylor


  • Father of Scientific Management
  • Observed that work efficiency was low due to lack of order and system
  • Emphasized the best method of doing work to increase productivity
• Principles of Scientific Management

  • Science, not rule-of-thumb
  • Harmony, not discord
  • Cooperation, not individualism
  • Development of each man to his greatest efficiency and prosperity
• Henry Gantt


  • Developed the Gantt Chart as scheduling device for planning and controlling work
  • Emphasized on the recognition of human factor and service rather than profits
• Frank and Lilian Gilbreth


  • Used Motion Pictures to study hard and body motion using micro chronometer that recorded the time to determine the time spent on motion in doing task
• Administrative Management Theory


  • Universalist or functional approach
  • Focuses on management total organizations effectively, especially larger organizations
  • Assumes that management process remains the same across all organizations
• Henri Fayol


  • Worked for 30 years as French mining engineer
  • Father of Management Process School
  • Argued that specialization increases work efficiency
  • Management is universal
• Formulations of Administrative Management Theory

  • Technical activities
  • Commercial activities
  • Financial activities
  • Security activities
  • Accounting activities
  • Managerial activities
• 5 Key Elements of Management

  • Planning
  • Organizing
  • Command/Delegation
  • Coordination
  • Monitoring
• 14 General Principles of Management


  • Division of work
  • Authority and Responsibility
  • Discipline
  • Unity of Command
  • Unity of Direction
  • Subordination of individual interest to the common good
  • Remuneration of personnel
  • Centralization
  • Scalar chain
  • Order
  • Equity
  • Stability of Tenure of Personnel
  • Initiative
  • Esprit de corps
• Max Weber


  • Developed a theory of authority structure, the ideal model for management
• Principles of Bureaucracy Approach

  • Hierarchal Structure
  • Management by Rules
  • Organization by Functional Specialty
  • Purposely Impersonal
  • Employment-Based on Technical Qualification
• Behavioral Management Theory


  • Emphasizes individual attitudes and behaviors, & group processes
  • Recognizes importance of behavioral processes in workplace
• George Elton Mayo


  • Conducted Hawthorne Studies which showed that manager's behavior or leadership approach can affect worker's level of performance
• Mary Parker Follett


  • Principles of Conflict Management: Conflict resolution through integration often results in win-win solution, Genuine power is not "coercive" but "coactive", True leaders create group power, rather than expressing personal power
• Abraham Maslow


  • Need Hierarch Theory: Employees are motivated by a hierarchy of needs that they seek to satisfy, Unfulfilled needs create anxiety which leads to motivation
• Douglas McGregor


  • Theory X Managers: People do not like work and try to avoid it, People prefer to be directed, to avoid responsibility, and want security, Managers have to control, direct, coerce, and threaten employees
  • Theory Y Managers: People like work, are internally motivated to reach objectives, are committed to goals, can innovate in solving problems
• Management


  A science, a profession, and an art
• Functions of Management


  • Function Approach: What one is supposed to do or must do
  • Role Approach: What one is actually doing
  • PIE Approach (Planning, Implementing, Evaluation)
  • PODSCORB (Planning, Organizing, Staffing, Directing, Coordinating, Reporting, Budgeting)
  • PER (Planning, Executing, Reviewing)
  • Planning, Organizing, Leading, Controlling
• Assimilated


  There is a general recognition that there are certain knowledge, skills, and aptitudes that must be assimilated and understood by anyone who aspires to be a truly effective manager
• Profession


  There is a general recognition that there are certain knowledge, skills, and aptitudes that must be assimilated and understood by anyone who aspires to be a truly effective manager
• Art


  Within the confines and strictures of management, there is great scope for the use of creativity, imagination, initiative, and invention within the overall sphere of the occupation
• Functions of Management


  A broad area of responsibility composed of many activities aimed at achieving a predetermined objective
• 2 Approaches to look in performance of any manager

  • Function Approach
  • Role Approach
• Function Approach


  What one is supposed to do or must do
• Role Approach


  What one is actually doing
• Function Classification


  • PIE Approach (Planning, Implementing, Evaluation)
  • PODSCORB (Planning, Organizing, Staffing, Directing, Coordinating, Reporting, Budgeting)
  • PER (Planning, Executing, Reviewing)
  • Planning, Organizing, Leading, Controlling
• Henri Fayol was the first to describe the 4 managerial functions when he was the CEO of a large mining company in the later 1800s
• Managers at all levels, operating for profit or nonprofit organization, must perform each of the managerial functions
• Planning


  Deciding on objectives of the organization and the need to modify on existing objectives, allocating resources to attain these objectives, establishing policies that govern the acquisition, use, and disposition of these resources
• Steps to Good Planning

  1. Which goals should be pursued?

  2. How should the goal be attained?

  3. How should resources be allocated?
• Organizing


  Managers create the structure of working relationships between organizational members that best allows them to work together and achieve goals. Managers will group people into departments according to the tasks performed and lay out lines of authority and responsibility for members.
• Organizational Structure


  Outcome of organizing, coordinates and motivates employees so that they work together to achieve goals
• Leading


  Managers determine direction, state a clear vision for employees to follow, and help employees understand the role they play in attaining goals. Leadership involves a manager using power, influence, vision, persuasion, and communication skills.