1. Theories of Management
BOH4M

2. There are Three Classifications of Management
Classical
Behavioural
Modern

3. Classical Approaches to Management
Scientific management
Administrative principles

4. Scientific Method: Frederick Taylor
Noticed that many workers did their job without clear/uniform expectations
Believed good management needed to design jobs perfectly using “time studies” to ensure the highest productivity”
4 Guiding Principles:
Every job has a science (tools, motions)
Select workers with right abilities for the job
Train workers and provide incentives
Support workers by carefully planning their work and streamlining the work process

5. Administrative Principles: Henry Fayol
Believed management could be taught using guiding principles
Scalar Chain Principle: clear, unbroken line of communication from top to bottom of organization
Unity of Command Principle: each person should receive orders from only one boss
Unity of Direction Principle: one person should be in charge of all activities with the same performance objectives (ie accounting dept = lowering costs while marketing dept = increasing sales)

6. Behavioural Approaches to Management
The Hawthorne Studies
Maslow’s theory of human needs

7. The Hawthorne Studies The Hawthorne Effect “Accidental” experiment
Originally, a scientific management experiment to determine how various factors (such as lighting) would influence productivity
Results were inconclusive and researchers blamed “psychological factors” for influencing the outcome
The Hawthorne Effect
As a result of these studies, theorists decided that people who were centred out for individual attention performed as expected.
Conclusion: People perform differently when they know they are being observed and studied.

8. Maslow's Theory of Human Needs
A need becomes a motivator once the preceding lower- level need is satisfied.

9. Modern Management Systems Thinking Contingency Thinking
Total Quality Management (TQM)

10. Systems Thinking Views an organization as a system
A system is a group of people working together for a common purpose
An organization can contain subsystems (smaller groups working together for a common purpose that serves the overall goals of the larger system)
Important to recognize an organization as an open system, one that is affected by, and can affect, its environment

11. Contingency Thinking
There is no one single style of management that suits all organizations/situations
The most effective management style will vary depending on the type of organization, its size, its environment, and the particular situation/problem it faces at the time
Sometimes a bureaucratic organization is most effective, sometimes a more loosely structured one; sometimes a more classical approach is best, sometimes a more modern one

12. 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
Focuses on enhancing the systems (including people) within an organization to continually increase the organization's capacity for performance