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Theories of Management
By: Jeff Koch
Todd Devenburgh
Kate McDermott
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Scientific Management
Scientific management is a method inmanagement theory that determineschanges to improve labor productivity.
The idea was first coined by FrederickWinslow Taylor in The Principles ofScientific Managementin 1911
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Frederick Winslow Taylor
Developed the theories of ScientificManagement
His innovations in industrialengineering, particularly in time andmotion studies, paid off in dramaticimprovements in productivity.
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Theory of Scientific Management
Careful specification and measurementof all organizational tasks.
Tasks are standardized as much aspossible.
Workers are rewarded and punished
This approach worked well for
organizations with assembly lines andother mechanistic activities
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Criticism of Scientific
Management
That humans are not inherently alike.What might be the most efficient way forone person may not be for someoneelse.
Ignores the fact that economic interestare different for management andemployees.
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Operations Management
Henri Fayol is described as the father ofoperations management
Proposed five functions of managementPlanning
Organizing
Commanding
CoordinatingControlling
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Difference between Henri Fayol
and Frederick Winslow Taylor
Taylor viewed management processes from thebottom up, while Fayol viewed it from the top down.
Fayol wrote that "Taylor's approach differs from theone we have outlined in that he examines the firm
from the "bottom up." he starts with the mostelemental units of activity -- the workers' actions --then studies the effects of their actions onproductivity, devises new methods for making themmore efficient, and applies what he learns at lowerlevels to the hierarchy.
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14 Principles of Management Division of Work Authority Discipline Unity of control Unity of Direction
Subordination of individual interest Remuneration Centralization Scalar chain (Line of Authority) Order Equity
Stability of Tenure of Personnel Initiative Esprit de Corps
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Application of the 14 Principles
Change and Organization
Decision-making
Skills can be used to improve theeffectiveness of a manager
Understanding the management can be
seen as a variety of activities which canbe listed and grouped
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Behavioral Approach to Management
Focused on Human beings and theirindividual rights
Arose after the following were observed: low productivity
lack of modern machinery
limited horsepower availability anachronistic trade union practices
poor management
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Human Relations Theory
Focused on motivation and employeecare
Found if employees were satisfied withtheir work, they were more apt to
perform better
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1880-1949Conducted HawthorneStudies
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Mayos Conclusions
Work is a group activity
The social work of an adult is based ontheir work experiences
Workers need recognition, security, anda sense of belonging
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Mayos Conclusions, Cont.
A complaint is usually due to an employees
dissatisfaction with his or her status
A workers attitude is shaped from forces
inside and outside of the work environment
Informal groups in the workplace improveemployees attitudes and productivity
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Mayos Conclusions, Cont.
The change from an established societyat home to an adaptive society at workcan create disturbances in theworkforce
Group work must be planned andimplemented
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Human Resources Theory
Focused on how an employee viewedtheir position and work experiences.
Found that managers ways of
managing largely contributed to how anemployee viewed their work.
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1906 1964Theory X and Theory Y
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Theory X
Average human being dislikes work: Most employees must be controlled and
threatened before they will perform to theexpectations
Humans like to be directed, dislikes responsibility,and wants job security
This lead to most organizations using toughmanagement
Bad form of management because the employee needsthe opportunity to fulfill their goals
This led employees to dislike their work
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Theory Y
Physical and mental effort at work are verynatural
Employees will be proactive if they are
committed to the company and if the job issatisfying
Most employees learn to seek out
responsibility Imagination, creativity, and ingenuity can be
used to solve work problems
Employees are not used to their full capacity
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Conclusions on Theory X andY
These two theories are impractical atthe workforce and are very different
McGregor suggested that managerslook at the theories to start their view ofmanagement
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MBO
MBO=Management by Objectives
Top management teams along with employeestogether define the company goals and direction
that the company is going. 3 Key components
Specific, achievable, measurable, realistic, time-specific
Goals are not unilateral within management
Managers give objective feedback
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MBO
Popularized by Peter Drucker in 1954.
Management by objectives works if you
know the objectives. Ninety percent ofthe time you dont.-Peter F. Drucker
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MBO
Works well within the U.S. culture, butoften fails in others due to differentstyles in management
Ex. French because of their high powerdistance
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MBO
Works well because all levels areinvolved in achieving the ultimate goal
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Path-Goal Theory
Developed by Robert House
Remove obstacles
Clarify the path to the goal
Offer rewards
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4 Types of Leaders
Achievement Oriented
Leader sets highgoals
High performancelevels
Confident in
expectations beingmet
Directive
Tells them
how toperformtasks
What isexpected
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Types of Leader (cont.)
Participative
Consults withothers before
making decisionsUses others
suggestions to
make the finaldecision
Supportive
Approachable
FriendlyNeeded when
the follower
lacksconfidence
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