1. Behavioural Management Theories
BOH4M

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

3. 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)

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

5. 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

6. Classical Approach Management
Scientific
Administrative
Bureaucratic

7. 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

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

9. 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

10. 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

11. 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

12. Modern Management Theories

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

14. 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

15. Quantitative Thinking

16. Systems Thinking

17. Contingency Thinking

18. 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

19. 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

20. 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

21. 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