Schools of Management Theory

1. Schools of Management Theory

2. The Manger’s Job – Myth vs. Fact Henry Mintzberg Myth: The Manager is a reflective, systematic planner. Fact: Managers work at an unrelenting pace. Their activities are characterized by brevity, variety, and discontinuity, and they are strongly oriented to action...

3. Management Myth vs. Fact Myth: The effective manager has no regular duties to perform. Fact: A manager’s work involves performing a number of regular duties including negotiation and the processing of soft information that links the organization to its Environment.

4. Management Myth vs. Fact Myth: The senior manager needs aggregated information which a formal management information system best provides. Fact: Managers strongly favor oral information

5. Management Myth vs. Fact Myth: Management is a science and a profession. Fact: The manager’s job is characterized by, brevity, fragmentation and oral communication often dealing with unrelated and discontinuous issues. Decision making remains locked deep inside the brain...

6. General Types of Mangers Executives Responsible for establishing policy – CEO and Direct Reports Directs activities to implement policy Mid Level Mangers Lowest level managers – operating employees First Line or Fist Level Mangers

7. The Functional vs. the General Manger • Functional Manger: • Responsible for only one organizational activity – such as marketing or finance • The people and activities headed by a functional manager are engaged in a common set of activities. • General Manger: • Oversees a complexunit • Responsible for all activities of that unit • Production • Marketing • Finance • Example: GM of a Food Company would be responsive for grocery products, refrigerated produces and frozen products.

8. The Ingredient of Management Vision • Management Science (or Quantitative approaches to decision making) tempt us to take the short view of problems – that often times require long term solutions. Thus, effective managers need to put aside their spreadsheets and listen to those around them. • Their Customers • The Sales Force • The Local Community • Other Constituents (suppliers, employees, etc.)

9. Other Critical Areas of Need in Today’s Management World • Ethics • Developing a sense of character within the sphere of social responsibility • Cultural and Psychological Diversity • A global approach to talent and management styles • Training • Building a capacity for empathy and EI • Understanding of power and it’s corrosive ether • Creating an ability to manage under stress • A perspective of building, saving and recreation as opposed to simple budgetary downsizing

10. A Culture of Poison Douglas LaBier, whose practice is devoted exclusively to the treatment of individuals who work in large organizations found that many employees who were considered “sick” by their institutions were, from a psychotherapeutic standpoint, “normal.” Those who were considered “normal”, and hence were pointed out as role models, had serious psychological problems including lust for power, conquest of others, feelings of grandiosity, destructiveness, or intense cravings for self humiliation and domination of others. In saying that those who appear “sick” are “normal” while those who appear “normal” are thereby “sick” more than a clever play on words is operating. Many organizations have deeply institutionalized “sickness.” “Sickness” is not only a fundamental part of the culture, but it also exercises tremendous pressure on “normal” individuals to become “sick” in order to “fit in.” This can be clearly see in the case of Enron’s culture ... and the culture of many firms of the late 90’s and today ...

11. Three Schools of Management Theory • Classical • Scientific Management • Classical Organizational Theory • Behavioral • Management Science

12. Classical • Scientific Management • Developed by Frederick Taylor • Production line time studies • What is the best method to accomplish a given task • Machine oriented approaches • Taylor believed that management and labor had a common interest in increasing productivity

13. Examples of Scientific Management • Time and Motion • Bell Telephone Operators • Auto Industry • Assembly Line • Fast Surgery • Cataract surgery in Russia • Restaurant Industry • Kitchen and Counter Layouts • Self Service (BK) • Electronic Manufacturing • Motherboard Assembly Important Limitation: “Scientific Management overlooks the human desire for job satisfaction.”

14. Classical • Organizational Theory • Developed by Henri Fayol • Centers on organizational functions as opposed to individual tasks

15. Fayol’s Principles of Management • Division of Labor: Expertise = Efficiency • Authority: Personal as well as formal • Discipline: Respect for the rules • Unity of Command: Report to one person • Unity of Direction: A clear mission • Remuneration: Fair compensation • Equity: Mangers should be fair and friendly • Initiative: Freedom to carry out duty / tasks • Stability: Low turn over is essential for moral • Esprit De Corps: Team spirit and unity

16. The Behavioral School • The application of the social sciences towards the management of people • Organizations are people • The Hawthorne Effect: • A Western Electric Study • When people are given special attention they perform better Discussion Question: Does a worker perform well because he or she is satisfied, or does the worker’s perception that he or she is performing well lead to satisfaction!”

17. Chester Bernard and the Behavior School • People come together in organizations to achieve what they could not achieve alone • Still, individual needs must be fulfilled • Individual needs have to be satisfied in order for groups to function effectively ...

18. Management Science • “There are many clichés in management: • ‘The Japanese know all about quality’, • ‘We must invest in the latest technology’, • ‘No one over the age of 50 can keep up with the pace of change’. • Management Science challenges clichés; it asks questions, collects evidence and provides a rational analysis and effective solutions in a wide variety of businesses. • Management Science is simply the use of a powerful recipe: • collect the information (typically a mixture of words and numbers); • develop an understanding of the important inter-relationships (the "model"); • test the model; • use the model to explore alternative futures and identify the best. • Crucial decisions need both the creativity and the objective analysis provided by Management Science.”

19. Management Science • “Management Science uses tools from various areas of knowledge. Some of these are quantitative: • statistics, mathematical modeling and cost-benefit analysis • All are valuable techniques in helping today's managers. • The Management Scientist also needs to be able to communicate. Discovering the ultimate truth is not good enough; you also have to sell your idea using a sharp report and an engaging presentation. • The Management Scientist must have a wide range of skills: making presentations, report writing, working in teams and familiarity with modern Information Technology.”