Presentation on theme: "Theories of Management"— Presentation transcript:
1 Theories of Management By: Jeff KochTodd DevenburghKate McDermott
2 Scientific Management Scientific management is a method in management theory that determines changes to improve labor productivity.The idea was first coined by Frederick Winslow Taylor in The Principles of Scientific Management in 1911
3 Frederick Winslow Taylor Developed the theories of Scientific ManagementHis innovations in industrial engineering, particularly in time and motion studies, paid off in dramatic improvements in productivity.
4 Theory of Scientific Management Careful specification and measurement of all organizational tasks.Tasks are standardized as much as possible.Workers are rewarded and punishedThis approach worked well for organizations with assembly lines and other mechanistic activities
5 Criticism of Scientific Management That humans are not inherently alike. What might be the most efficient way for one person may not be for someone else.Ignores the fact that economic interest are different for management and employees.
6 Operations Management Henri Fayol is described as the father of operations managementProposed five functions of managementPlanningOrganizingCommandingCoordinatingControlling
7 Difference between Henri Fayol and Frederick Winslow Taylor Taylor viewed management processes from the bottom up, while Fayol viewed it from the top down.Fayol wrote that "Taylor's approach differs from the one we have outlined in that he examines the firm from the "bottom up." he starts with the most elemental units of activity -- the workers' actions -- then studies the effects of their actions on productivity, devises new methods for making them more efficient, and applies what he learns at lower levels to the hierarchy.
8 14 Principles of Management Division of WorkAuthorityDisciplineUnity of controlUnity of DirectionSubordination of individual interestRemunerationCentralizationScalar chain (Line of Authority)OrderEquityStability of Tenure of PersonnelInitiativeEsprit de Corps
9 Application of the 14 Principles Change and OrganizationDecision-makingSkills can be used to improve the effectiveness of a managerUnderstanding the management can be seen as a variety of activities which can be listed and grouped
10 Behavioral Approach to Management Focused on Human beings and their individual rightsArose after the following were observed:low productivitylack of modern machinerylimited horsepower availabilityanachronistic trade union practicespoor management
11 Human Relations Theory Focused on motivation and employee careFound if employees were satisfied with their work, they were more apt to perform better
14 Mayo’s Conclusions Work is a group activity The social work of an adult is based on their work experiencesWorkers need recognition, security, and a sense of belonging
15 Mayo’s Conclusions, Cont. A complaint is usually due to an employee’s dissatisfaction with his or her statusA worker’s attitude is shaped from forces inside and outside of the work environmentInformal groups in the workplace improve employees’ attitudes and productivity
16 Mayo’s Conclusions, Cont. The change from an established society at home to an adaptive society at work can create disturbances in the workforceGroup work must be planned and implemented
17 Human Resources Theory Focused on how an employee viewed their position and work experiences.Found that manager’s ways of managing largely contributed to how an employee viewed their work.
18 Douglas McGregor1906 – 1964Theory X and Theory Y
19 Theory X Average human being dislikes work: Most employees must be controlled and threatened before they will perform to the expectationsHumans like to be directed, dislikes responsibility, and wants job securityThis lead to most organizations using “tough” managementBad form of management because the employee needs the opportunity to fulfill their goalsThis led employees to dislike their work
20 Theory Y Physical and mental effort at work are very natural Employees will be proactive if they are committed to the company and if the job is satisfyingMost employees learn to seek out responsibilityImagination, creativity, and ingenuity can be used to solve work problemsEmployees are not used to their full capacity
21 Conclusions on Theory X and Y These two theories are impractical at the workforce and are very differentMcGregor suggested that managers look at the theories to start their view of management
22 MBO MBO=Management by Objectives Top management teams along with employees together define the company goals and direction that the company is going.3 Key componentsSpecific, achievable, measurable, realistic, time-specificGoals are not unilateral within managementManagers give objective feedback
23 MBO Popularized by Peter Drucker in 1954. “Management by objectives works if you know the objectives. Ninety percent of the time you don’t.”-Peter F. Drucker
24 MBOWorks well within the U.S. culture, but often fails in others due to different styles in managementEx. French because of their high power distance
25 MBOWorks well because all levels are involved in achieving the ultimate goal
26 Path-Goal Theory Developed by Robert House Remove obstacles Clarify the path to the goalOffer rewards
27 4 Types of Leaders Directive Tells them how to perform tasks Achievement OrientedLeader sets high goalsHigh performance levelsConfident in expectations being metDirectiveTells them how to perform tasksWhat is expectedDirective-good for inexperienced
28 Types of Leader (cont.) Supportive Approachable Friendly ParticipativeConsults with others before making decisionsUses others suggestions to make the final decisionSupportiveApproachableFriendlyNeeded when the follower lacks confidenceSupportive-good for stressful, boring, tedious, dangerous jobsParticipative-Not as well researched
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