Management Theory Chapter II

Nicolo Machiavelli• Father of Modern Politics• Born in Florence, Italy• « Machiavellian » is often used to

describe cunning and manipulative opportunist.

• Discourses, 1531

Sun Tzu• Chinese General (6th Century BC)• The Art of War

When enemy advances, we retreat!

When enemy halts, we harass! When enemy seeks to avoid

battle, we attack! When the enemy retreats, we

pursue!

Why Study Management theory?

• Provide a stable focus for understanding what we experience.

• Enable us to communicate efficiently and thus move into more and more complex relationships with other people.

• Theories make it possible to keep learning about our world.

Evolution of Management Theory

• Scientific Management • Classical Organization Theory• Behavioral School• Management Science

Scientific Management School

Frederick W. Taylor

• Father of Scientific Management • Mechanical Engineer• Midvale Steel Company

« Scientific Management »

« Time and Motion Studies »

4 Principles Of Scientific Management

• The development of true science of management, so that the best method for performing each task could be determined.

• The scientific selection of workers, so that each worker would be given responsibility for the task which he or she was best suited.

• The scientific education and development of the worker.

• Intimate, friendly cooperation between management and labor.

Henry L. Gantt

• Associate of Frederick Taylor• His main focus was to apply

scientific analysis to all facets of the work being done as a means of increasing productivity.

• Gantt Chart and the task and bonus system

« Task and Bonus System »

Frank B. and Lilian M. Gilbreth

• Made their contribution to the scientific management as a husband-and-wife team

• Motion studies• Help the workers to reach their

full potential.

« Motion Studies »

Classical Organization Theory School

Henry Fayol

• Founder of Classical management school

• Fayol was interested in the total organization and focused on management

Principles of Management by Fayol• Division of work• Authority• Discipline• Unity of Command• Unity of direction• Subordination of individual interest• Remuneration• Centralization• The hierarchy• Order• Equity• Stability of Staff• Initiative• Esprit de Corps

Division of work• The most people specialize, the more

efficient they can perform to work.

Authority• Manager must have the authority

to give orders, but they must also keep in mind that with authority comes responsibility.

Discipline• Members need to respect the rules

and agreements that govern the organization.

Unity of Command• Each employee must receive

instruction from only one person.

Unity in direction• Those operations within the

organization that have the same objective should be directed by only one manager using one plan.

Subordination of Individual interest to the Common Interest• In any undertaking, the interest of

the employees should not take precedence over the interest of the organization as a whole.

Remuneration• Compensation for work done

should be fair to both employees and employers.

Centralization• This principle refers to how close

employees are to the decision-making process. It is important to aim the approciate balance.

The Hierarchy • The line of authority in an

organization runs in order of rank from top management to the lowest level of the enterprise.

Order• The workplace facilities must be

clean, tidy and safe for employees. Everything should be in its place.

Equity• Manager should be both friendly

and fair to their subordinates.

Stability of Staff• The managers should strive to

minimize employee turnover. Personnel planning should be priority.

Initiatives• Subordinates should be given the

freedom to conceive and carry out plans.

Esprit de corps• Promoting team spirit will give the

organization a sense of unity.

Max Weber (Germany)• Bureaucrarcy

Ideal type of organization charaterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships.

« A well-defined formal hierarchy of command »

« Management by rules and regulation provides a set of standard operating

procedures that facilitates consistency in both organization and management

practices.

« Division of labor and work specilization »

« Managers should maintain an impersonal relationship »

« Competence, not personality, is the basis for job appointment »

« Formal written records »

Mary Parker Follet• People Oriented• Group Network Management• Participative Leadership

Involves managers and employees working together towards common goals like decision-making and problem-solving.

Group Network Management• Groups of people within the

organization with equal power over outcomes.

« Group Interactions »

Chester Bernard• Acceptance theory of authority.– A manager’s authority rests on worker’s

acceptance of his right to give orders and to expect compliance.

• Individual workers form informal social groups that become informal organization

Informal Organization

• It is the personal contacts and interactions between workers that form into small groups.

~End~