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MGT 200 Management Theory n Required Reading: Chapter 2 of textbook Peter Senge Article Meg Wheatly Interview n Today’s Topic: History of Management Theory.

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Presentation on theme: "MGT 200 Management Theory n Required Reading: Chapter 2 of textbook Peter Senge Article Meg Wheatly Interview n Today’s Topic: History of Management Theory."— Presentation transcript:

1 MGT 200 Management Theory n Required Reading: Chapter 2 of textbook Peter Senge Article Meg Wheatly Interview n Today’s Topic: History of Management Theory

2 Learning Objectives n Know the basic premises of six management theories n Understand the context for the evolution and development of these theories n Know the basic concepts of several current trends in management n Explore three forces that are changing the context for managerial work today

3 Management Theories/Concepts n Division of Labor n Scientific Management n Administrative Theories n Behavioral Theory n Chaos Theory n Contingency Theory

4 Division of Labor n Adam Smith: “The Wealth of Nations” n Premise: Increase productivity by breaking down jobs into narrow, repetitive tasks

5 Scientific Management n Management practices should be based on fact and observation n Focuses on the relationship between individual workers and their tools or machines

6 Scientific Management n Frederick Taylor – There is “one best way” to perform a task – Time and motion studies – Money motivates employees to do their best n Frank and Lillian Gilbreth – Followers of Taylor n Henry Gantt – Control systems for production scheduling

7 Assessing Scientific Management n Many aspects used today n Misreads human side of work n Simple tasks and clear rules don’t guarantee results

8 Administrative Theories n Focus on managers and their behavior n Henri Fayol, French industrialist – Management is a discipline with principles that can be taught n Max Weber – Developed the concept of “bureaucracy” as the ideal structure for an organization

9 Fayol’s Administrative Principles 1.Division of labor 2.Authority to give orders 3. Discipline 4.Unity of command 5.Unity of direction 6. Subordination of individual interest 7.Remuneration: pay for work done 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability and tenure of staff 13. Initiative 14. Esprit de corps

10 Bureaucratic Management n Formal system of rules and procedures n Impersonality n Hierarchical structure with detailed authority n Clear division of labor n Rationality n Career commitment

11 Assessing Administrative Theories n Managers still use many of Fayol’s principles n Overemphasizes the rational behavior of managers n Advantages & disadvantages of bureaucracy – Benefits: efficiency, consistency – Costs: rigid, slow, difficult to adapt

12 Behavioral Theory n Focuses on the human aspects of organizations n Mary Parker Follet – Management is a dynamic process – Workers should be involved in decisions n Chester Barnard – Organizations are social systems – Managers need “buy-in” of employees

13 Hawthorne Studies n A “scientific theory” study that provided strong support for the behavioral viewpoint n The Hawthorne Effect: Productivity is likely to increase when employees are given special attention regardless of whether working conditions change n The social environment of employees also greatly influences productivity

14 Behavioral Theory n Basic Assumptions – Employees are motivated by social needs – Social forces exerted by peers is strong – Employees respond to managers who help them satisfy their needs – Managers need to coordinate the work of subordinates democratically to improve efficiency

15 Behavioral Theory Assessment n Adds greatly to the mechanistic view of managing people n But human relation skills alone won’t guarantee increased productivity or high quality work n Managing the human aspects of an organization is a very complex task

16 Chaos Theory n Margaret Wheatley, 1992 n Look at an organization as a living organism n Learn management from natural systems n Basic Premise: Self-organization – the tendency of living systems to organize into structure without any externally imposed plan

17 Chaos Theory Principles n Information access – Everyone has easy access to all the information they need to do their job n Relationships – Everyone has easy access to anyone they need to do their job n Self-reference – The organizations core identity or purpose

18 Chaos Theory Assessment n Goes against many traditional beliefs about role of managers n Requires educated, involved employees n Requires change in communication methods n Clear vision/joint purpose is crucial

19 Contingency Viewpoint n There is no best way to manage in all situations n Use the different management viewpoints as appropriate to deal with various situations n Managers must be able to diagnose and understand a situation thoroughly

20 Contingency Viewpoint n Basic contingency variables: – External environment – Technology – Individuals n Importance of each variable depends on type of situation and problems being faced

21 Assessing the Contingency Viewpoint n Useful approach - makes sense to change viewpoint depending on situation n Most managers use intuitively n Diagnosis very important to determine best approach n Many don’t consider to really be a “theory” of management – just draws on other theories

22 Management Theories Summary n Division of Labor - Adam Smith n Scientific Management - Taylor, Gilbreths, Gantt n Administrative Theories - Fayol, Weber n Organizational Behavior - Follett, Barnard n Chaos Theory - Wheatley n Contingency Theory

23 What’s Next? n Current Trends and Issues in Management n Read Chapter 2: pages n Read Senge handout on Systems Thinking


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