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The main management theories. Management Theory Part 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
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The main management theories Management Theory Part 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 • Recap Classical and Scientific Schools • Discuss Human Relations School
Why is Management Theory Important Exam !!!
Scientific Classical Human Relations Systems Contingency Today
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.
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.
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)
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
Weber, Max (1947) The Theory of Social and Economic Organization. Translated by A. M. Henderson & Talcott Parsons,The Free Press. Max Weber (1864-1920)
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
Human Relations Movement • Dehumanizing effects of these theories. • Individuals and their unique capabilities in the organization. • Organization would prosper if its workers prospered as well.
Workers are not just concerned with money but could be better motivated by having their social needs met whilst at work Elton Mayo (1880-1949)
Mayo was involved in a series of experiments at the Hawthorne factory in Chicago. He isolated two groups of women workers and studied the effect on their productivity levels of changing factors such as lighting and working conditions. Hawthorne Studies 1927-1932
Conclusion • Mayo believed that conflict between managers and workers was inevitable as long as workers were ruled by “the logic of sentiment” and managers by the “logic of cost and efficiency”. Only when each party appreciated the position of the other (through discussion and compromise) could conflict be avoided.
Douglas McGregor, an American social psychologist, proposed his famous X-Y theory in his 1960 book 'The Human Side Of Enterprise'. Theory x and theory y are still referred to commonly in the field of management and motivation, X-Y theory is a salutary and simple reminder of the natural rules for managing people, which under the pressure of day-to-day business are all too easily forgotten.
Theory X is an authoritarian style • emphasis is on productivity • The concept of a fair day’s work • Management must counteract an inherent human tendency to avoid work • Theory Y is a participative style • people will exercise self-direction and self-control in the achievement of objectives • Management’s main task is to maximise that commitment.
Frederick Herzberg (1923-2000) Herzberg, Frederick (1959), The Motivation to Work, New York: John Wiley and Sons
Herzberg was a clinical psychologist, much of the research into motivation was inspired by psychologists investigating human behaviour rather than business people!. You have probably heard about 'job enrichment'. Well, Herzberg was the man who advanced that idea under Hygiene theory.
Ludwig von Bertalanffy (1901-1972) • Ludwig von Bertalanffy (1968), General System theory: Foundations, Development, Applications
Systems Framework • Today, Bertalanffy (a Biologist) is considered to be a founder and one of the principal authors of the interdisciplinary school of thought known as general systems theory. His contributions went beyond biology, and extended into cybernetics, education, history, philosophy, psychiatry, psychology and sociology. Offered a more comprehensive view of organizations NOT a theory of management - new way of conceptualizing and studying organizations
Peter Senge Senge, Peter M. (1990), The Fifth Discipline,
Senge publication in 1990 of “The Fifth Discipline” • 1. Personal mastery • 2. Mental models • 3. Shared vision • 4. Team learning • 5. The ability to see the organisation as a whole.
The Fred Fiedler management theory has been a learning tool for many business leaders since the publication of his work, 'A Theory of Leadership Effectiveness' in 1967. Fiedler's contingency theory showed that there was not one perfect business leader but a leader best suited to (or contingent upon) the workplace situation. Fiedler's theories focus on the leader's control of the situation as it plays into their personal behavior.
Ken Blanchard Hersey, P. and Blanchard, K. H. (1969). Management of Organizational Behavior – Utilizing Human Resources. New Jersey/Prentice Hall
The fundamental underpinning of the Situational Leadership Theory is there is no single "best" style of leadership. Effective leadership is task-relevant and that the most successful leaders are those that adapt their leadership style to the Maturity ("the capacity to set high but attainable goals, willingness and ability to take responsibility for the task, and relevant education and/or experience of an individual or a group for the task) of the individual or group they are attempting to lead/influence.
This is typified by the providing suggested solutions to the challenges of competing internationally via market driven cultures, who face into turbulent times through flexibility, multi skilling, empowerment team work and cooperation.
