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Foundations of Management Chapter 2. Classic Theories 1. Scientific Management One best way Efficiency is key Focus on individual workers Taylor, Gilbreath.

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Presentation on theme: "Foundations of Management Chapter 2. Classic Theories 1. Scientific Management One best way Efficiency is key Focus on individual workers Taylor, Gilbreath."— Presentation transcript:

1 Foundations of Management Chapter 2

2 Classic Theories 1. Scientific Management One best way Efficiency is key Focus on individual workers Taylor, Gilbreath (tools, motions) Gantt (quotas, bonuses) 2. General Administrative Theories Perspective of the entire organization What are good management practices Fayol, Weber

3 Administrative Theories Fayol’s 5 functions of Management Planning Organizing Commanding Coordinating Controlling Plus 14 principles…see text pg 22

4 Administrative Theories - Fayol Division of labor Authority Discipline Unity of command Unity of direction Subordination of individual interests Remuneration Centralization Scalar chain of command Order Equity Retain employees Encourage initiative Esprit de Corps

5 Administrative Theories - Weber Bureaucracy Division of labor - divided in routine tasks Authority hierarchy – strict subordination Formal selection – based on qualifications & examinations Formal rules & regulations – strict adherence, regulate ee’s Impersonality – follow rules to avoid personal preference of ee’s Career orientation – work for money & a career Quiz

6 Behavioral Theories Looks at “why” people do things rather than “how” people do things (Classical) Embraces the study of sociology and psychology Attempts to understand human and employee behavior

7 Behavioral Theories Elton Mayo Western Electric Hawthorn Studies (Cicero) Control & experimental groups with illumination levels Both groups increased regardless of light level

8 Behavioral Theories Hawthorn Studies findings Financial incentives did not increase productivity. Attention was far more motivating Worked harder if they thought mgrs were concerned about them Work norms drive productivity by establishing what is a fair days work Social environment made monotonous work more palatable

9 Behavioral Theories Mary Parker Follett Saw org as people & not production Mgrs should use skills to lead & not order Workers need to be given responsibility Mgrs should actually receive training in mgt Work ignored for decades

10 Human Relations Era People oriented approach to management Looks at interaction of people & impact on org Goal: enhance organizational success by building appropriate relationships among employees

11 Human Relations Era Maslow’s hierarchy Herzberg’s Motivation-Hygiene theory There are satisfiers (motivators) & dissatisfiers (hygiene factors) that impact feelings toward the environment

12 Human Relations Era Hygiene FactorsMotivators Can lead to dissatisfaction:Leads to satisfaction: Policies Recognition Working conditions Growth on the job Relationship with supervisors Advancement Supervision received on the job Interesting work Salary Responsibility

13 Contemporary Theories Best practices (Mintzberg, Peters, Covey, Drucker) Orgs need clearly defined values Vision Customer driven Recognize ee’s Collaboration among ee’s Treat ee’s as valuable assets Continually train & invest in ee’s Freedom to take risks Trust, honesty, integrity

14 Leadership Theories

15 4 generations of leadership Trait theories Certain traits are inherent to leaders Behavioral theories Behaviors leaders exhibit Leadership born not learned

16 4 generations of leadership Contingency/situational theories Contingency – leadership style changes Situational– leader changes Contemporary views charismatic, transactional, transformational, & Kouzes & Posner…

17 5 Practices Model the way Set the example Have common values Working side by side Inspire a shared vision Dreams & visions of what could be Get others to understand & buy into that vision

18 5 Practices Challenge the process Search for opportunities to innovate, grow & improve Recognize good ideas & challenge the system to get them done Encourage risk taking

19 5 Practices Enable others to act Leadership is a team effort Foster collaboration Make it possible for others to do good work Empowerment

20 5 Practices Encourage the heart Recognize accomplishments Celebrate achievements

21 Top Leadership Qualities Characteristic Honest Forward Looking Inspiring Competent Intelligent Fair-minded Staight forward Broad-minded % responding N=75,000

22 List Qualities Good manager/leader: Poor manager/leader:


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