Management Theory

1. The main management theories Management Theory

2. Learning Outcomes At the end of next this learners will be able to: • Describe the role of management theory • State the main schools of management thought and provide an example of at least one contributor to each school • Discuss Scientific theory • Identify at least four motivation theorists

3. ‘Six Management Skills’ (CMgr) • Leading People • Managing Change • Meeting Customer Needs • Managing Information and Knowledge • Managing Activities and Resources • Managing Yourself

4. Why is Management Theory Important Exam !!!

5. Productivity Much Simpler Competition

6. Management Theorists The challenge: “Identify those contributors who in context actually remain relevant and influential today and how can their contributions help the managers within a selected organisation to better manage the people they work with”

7. Management Theorists

8. Management Theorists Relevant today Not very relevant today Difficult to find any genuine links to effective modern management

9. Management Theorists Relevant Not very Relevant Difficult to find any genuine link! Schools / Theories Anything worth mentioning? Theorists A Catalyst for example

10. School of Thought

11. Do we know any of the Management Schools of Thought?

12. Scientific Classical Human Relations Systems Contingency Today

13. Scientific Management Theory

14. At the turn of the century, the most notable organizations were large and industrialized. Often they included ongoing, routine tasks that manufactured a variety of products. The United States highly prized careful measurement and specification of activities and results. Management tended to be the same. This theory espoused this careful specification and measurement of all organizational tasks. Tasks were standardized as much as possible. Workers were rewarded and punished. This approach appeared to work well for organizations with assembly lines and other mechanistic, routinized activities.

15. Frederick Winslow Taylor 1911, Principles of Scientific Management

16. Frederick Winslow Taylor - an American engineer who sought to improve industrial efficiency. He was one of the intellectual leaders of the Efficiency Movement and his ideas, broadly conceived, were highly influential in the Progressive Era. He believed

17. One Best Way Taylor thought that by analyzing work, the "One Best Way“ to do it would be found. He is most remembered for developing the time and motion study. He would break a job into its component parts and measure each to the second.

18. Five principles of Scientific Management: • Scientifically study each part of a task and develop the One best way of performing it. • Select the best person to do the job. • Train, Teach and develop the worker. • Provide financial incentives for following the methods. • Divide work and responsibility so that managers are responsible for planning the work methods and workers are responsible for executing the work accordingly.

19. Frank and Lillian Gilbreth 1917, Applied Motion Studies

20. Time and Motion Studies One of the great husband-and-wife teams of science and engineering, Frank and Lillian Gilbreth early in the 1900s collaborated on the development of motion study as an engineering and management technique, using flow process charts, with symbols.

21. Key Difference to Taylor Unlike Taylor who tended to think that pay was the only motivator , being paid a fair piece rate would improve productivity. Gilbreths recognised other factors were equally important such as fatigue, lighting, heating, ventilation.

22. Henry Gantt (1861-1919) • 1916. Work, Wages, and Profits, second edition, Engineering Magazine Co., New York. • 1919. Organizing for Work, Harcourt, Brace, and Howe, New York

23. Henry Laurence Gantt Henry Laurence Gantt, A.B., M.E. (1861-1919) was a mechanical engineer and management consultant who is most famous for developing the Gantt chart in the 1910s. These Gantt charts were employed on major infrastructure projects including the Hoover Dam and Interstate highway system and still are an important tool in project management.

24. Gantt’s legacy The Gantt chart: still an important management tool today, it provides a graphic schedule for the planning and controlling of work, and recording progress towards stages of a project. Industrial Efficiency: Industrial efficiency can only be produced by the application of scientific analysis to all aspects of the work in progress. The industrial management role is to improve the system by eliminating chance and accidents. The Task And Bonus System: He linked the bonus paid to managers to how well they taught their employees to improve performance. The social responsibility of business: He believed that businesses have obligations to the welfare of society that they operate in.

25. Classical Theory

26. focused upon dividing organizations into hierarchies, establishing strong lines of authority and control. Suggested organizations develop comprehensive and detailed standard operating procedures for all routine tasks.

27. Henri Fayol (1841-1925)

28. In 1916, he published his "14 Principles of Management" in the book "Administration Industrielle et Generale." Fayol also created a list of the six primary functions of management, which go hand in hand with the Principles.

29. Six primary functions of management 1.forecasting 2.planning 3.organizing 4.commanding 5.coordinating 6.controlling (described in the sense that a manager must receive feedback about a process in order to make necessary adjustments)

30. 7.Remuneration 8.Centralization 9.Scalar Chain 10.Order 11.Equity 12.Stability of Tenure of Personnel 13.Initiative 14.Esprit de Corps Fayol's 14 Principles of Management 1.Division of Work 2.Authority & Responsibility 3.Discipline 4.Unity of Command 5.Unity of Direction 6.Subordination of Individual Interests to the General Interest

31. Weber, Max (1947) The Theory of Social and Economic Organization. Translated by A. M. Henderson & Talcott Parsons,The Free Press. Max Weber (1864-1920)

32. Developed the concept of bureaucracy (Classical organization theory) as a formal system of organization and administration designed to ensure efficiency and effectiveness. Weber focused on dividing organizations into hierarchies, establishing strong lines of authority and control. He suggested organizations develop comprehensive and detailed standard operating procedures for all routinised tasks. http://www.hrmguide.co.uk/history/classical_organization_theory.htm

33. Next Time Putting in the Human