Transcript Theories of Management BOH4M

Theories of Management
BOH4M
Theories of Management
• Management may be traced back to 5000
B.C.
• Management was important to the
construction of the Egyptian Pyramids, rise
of the Roman Empire and the commercial
success of the 14th Century.
Classical Approaches to
Management
• Assumes that people are rational and
driven by economic concerns
• 3 branches:
– Scientific management
– Administrative principles
– Bureaucratic organization
Scientific Method: Frederick
Taylor
• Noticed that many workers did their job
without clear/uniform expectations
• Believed good management needed to
design jobs perfectly using “time studies”
to ensure the highest productivity”
Scientific Method: Frederick
Taylor
• 4 Guiding Principles:
– Every job has a science (tools, motions)
– Select workers with right abilities for the job
– Train workers and provide incentives
– Support workers by carefully planning their
work and streamlining the work process
• In one study, scientific method reduced the
number of motions of brick layers and
tripled productivity
Administrative Principles: Henry
Fayol
• Believed management could be taught using
guiding principles
– Scalar Chain Principle: clear, unbroken line of
communication from top to bottom of organization
– Unity of Command Principle: each person should
receive orders from only one boss
– Unity of Direction Principle: one person should be
in charge of all activities with the same performance
objectives (ie accounting dept = lowering costs while
marketing dept = increasing sales)
Administrative Principles: Henry
Fayol
• Identifies five duties of management
including:
– Foresight
– Organization
– Command
– Coordination
– Control
Mary Parker Follett
• Viewed organizations as communities
where diverse individuals should labour in
harmony without dominance over one
another.
• Manager’s job is to help people cooperate
and meet their interests.
• Make every employee an owner to create
collective responsibility
Bureaucratic Organization: Max
Weber
• Believed management needed a rigid, rational
organization founded on logic, order and
legitimate authority
• Characteristics of a bureaucratic organization
are:
– Clear division of labour – jobs are well defined so
people become highly productive doing them
– Well defined levels of authority which cannot be
overridden
– Formal rules and procedures to direct actions and
behaviour of employees
– Workers are promoted based strictly on performance
Behavioural Approaches to
Management
• In the 1920s, management theorists
began to take into account the human side
of the workplace. Theories that evolved
out of this school of thought were:
– The Hawthorne Studies
– Maslow’s theory of human needs
– Theory X/Theory Y
– Personality and organization
The Hawthorne Studies
• “Accidental” experiment
• Originally, a scientific management experiment
to determine how various factors (such as
lighting) would influence productivity
• Results were inconclusive and researchers
blamed “psychological factors” for influencing
the outcome
• Subsequent experiments yielded similar
results… productivity increased regardless of
what changes were made
“The Hawthorne Effect”
• The tendency for people centred out for
individual attention to perform as
expected.
• People perform differently when they know
they are being observed and studied.