Behavioural Management Theories BOH4M

Agenda Learning goals Vocabulary Classical Theory McGregor’s Theory X/Y Jigsaw: Modern management theory: quantitative, system and contingency TQM

Learning goals What is Classical Management Theory. Understand the difference between manager X and Y and how it impact employees Understand modern management approaches and their advantage and disadvantages (quantitative, system approach and contingency, TQM)

Vocabulary Classical theory Scientific management Administrative management Bureaucratic management McGregor’s Theory X/Y The Quantitative Approach The Systems Approach The Contingency Approach

Classical Theory Introduced in the late 1900 centaury during the industrial revolution Believes that employees only have economical and physical needs and that the social needs & need for job satisfaction either doesn’t exist or is unimportant. It is mainly concerned with increasing the efficiency of workers therefore, it looks for a universal way of doing different operations. Video

Classical Approach Management Scientific Administrative Bureaucratic

Scientific management Administrative Management Bureaucratic Management Focuses on the “one best way” of doing a job Observe, measure and record different jobs and find the most productive and efficient way to do it. Focuses on the manager & basic managerial functions Sees management as a universal process of planning, organizing, controlling and deciding. 14 principles to management Focuses on the guidelines for structuring and creating rules, procedures, and clear division of labour Management depends not on personality for successfully giving orders but on legal power invested in managerial position

Criticism of the theory Doesn’t think that social needs are important Does not acknowledge that employees are different Ignores employees idea

McGregor’s Theory X/Y The Theory X approach… Employees are naturally lazy/avoid work, don’t want responsibility, and fear changes and challenges The Theory Y approach… Employees like work, seek responsibility, show initiative and creativity, are excited by changes and challenges

McGregor’s Theory X/Y Theory X Managers: Authoritarian, repressive, exert tight control, no employee involvement, pessimistic Theory Y Managers: Liberating, empowering, gives employees responsibility and freedom to develop, optimistic

McGregor and the Self-Fulfilling Prophecy Whether a manager has Theory X assumptions, or Theory Y assumptions about their employees, they’re right Your assumptions dictate how you manage, and the employees will respond accordingly Workers in a Theory X environment are unmotivated, lazy, rebellious, and work poorly Workers in a Theory Y environment are motivated, loyal/committed, productive, take pride in their work and respect managers

Modern Management Theories

Modern Management Theories The Quantitative Approach The Systems Approach The Contingency Approach

Jigsaw Activity In groups of 4 students Read one of the theories assigned to you group – from the Modern Management Theory: Quantitative, System and Contingency Approaches to Management! Fill in the organization chart Definition Advantages Disadvantage Be ready to teach it to other student

Quantitative Thinking

Systems Thinking

Contingency Thinking

Total Quality Management Known as TQM A management philosophy that demands a commitment to quality in all aspects of an organization and at every step in the value chain, from suppliers, through to manufacturing and customer service

Total Quality Management 3 things to consider if change is needed: Will the change make customers response better overall? Does the change make results faster for the organization and customers? Does the idea improve the use of company resources Video

Others…. There are many, many different management theories developed by business profs, former executives, consultants, and authors Some popular are really just recycling old ideas

For Example… Sun Tzu’s The Art of War “Keep your friend close but your enemies closer” “The greatest victory is that which requires no battle” Written around 500 BCE Highly influential book of military strategy that contains insights relevant to the world of competitive business Many Japanese companies make it required reading for their executives