Management Theory

1
Management Theory

• The main management theories

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
Much Simpler

• Productivity

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
(No Transcript)
8
(No Transcript)
9
(No Transcript)
10
School of Thought
11
Do we know any of the Management Schools of
Thought?
12
(No Transcript)
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
Gantts 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
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

• 7.Remuneration
• 8.Centralization
• 9.Scalar Chain
• 10.Order
• 11.Equity
• 12.Stability of Tenure of Personnel
• 13.Initiative
• 14.Esprit de Corps

31
Max Weber (1864-1920)

• Weber, Max (1947) The Theory of Social and
  Economic Organization. Translated by A. M.
  Henderson Talcott Parsons,The Free Press.

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/classica
l_organization_theory.htm
33
Next Time

• Putting in the Human