1. Management theories
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2. Figure 2.1 Chronological Development of Management Perspectives
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3. Focuses on the individual worker’s productivity
Figure 2.2 Subfields of the Classical Perspective on Management
Focuses on the individual worker’s productivity
Focuses on the overall organizational system
Focuses on the functions of management
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4. A) Scientific Management
1) Frederick W. Taylor ( )
Father of “Scientific Management.
Attempted to define “the one best way” to perform every task through systematic study and other scientific methods.
Believed that improved management practices lead to improved productivity.
Three areas of focus:
Task Performance
Supervision
Motivation
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5. 1. Task Performance
Scientific management incorporates basic expectations of management, including:
Development of work standards
Selection of workers
Training of workers
Support of workers
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6. 2. Supervision
Taylor felt that a single supervisor could not be an expert at all tasks.
As a result, each first-level supervisor should be responsible only workers who perform a common function familiar to the supervisor.
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7. 3. Motivation
Taylor believed money was the way to motivate workers to their fullest capabilities.
He advocated a piecework system in which worker’s pay was tied to their output.
Workers who met a standard level of production were paid a standard wage rate.
Workers whose production exceeded the standard were paid at a higher rate for all of their production output.
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8. A) Scientific Management (contd.)
2) Lillian Gilbreth
A strong proponent of better working conditions as a means of improving efficiency and productivity.
Favored standard days with scheduled lunch breaks and rest periods for workers.
Strived for removal of unsafe working conditions and the abolition of child labor.
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9. B) Administrative Management
1) Henri Fayol (1841–1925)
First recognized that successful managers had to understand the basic managerial functions.
Developed a set of 14 general principles of management.
Fayol’s managerial functions of planning, leading, organizing and controlling are routinely used in modern organizations.
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11. 3. Bureaucratic Management
Focuses on the overall organizational system.
Bureaucratic management is based upon:
Firm rules
Policies and procedures
A fixed hierarchy
A clear division of labor
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12. 3. Bureaucratic Management (contd.)
Max Weber (1864–1920)
A German sociologist and historian who envisioned a system of management that would be based upon impersonal and rational behavior—the approach to management now referred to as “bureaucracy.”
Division of labor
Hierarchy of authority
Rules and procedures
Impersonality
Employee selection and promotion
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13. Weber’s Forms of Authority
Traditional authority
Subordinate obedience based upon custom or tradition (e.g., kings, queens, chiefs).
Charismatic authority
Subordinates voluntarily comply with a leader because of his or her special personal qualities or abilities (e.g., Martin Luther King, Gandhi).
Rational-legal authority
Subordinate obedience based upon the position held by superiors within the organization (e.g., police officers, executives, supervisors).
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14. Figure 2.3 Bureaucratic Hierarchical Power Structure

15. Theory 2: Neo Classical/ Behavioral
Acknowledged the importance of human behavior in shaping management style
Is associated with:
Mary Parker Follett
Elton Mayo
Douglas McGregor
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16. 1. Mary Parker Follett
An approach to solve the problems of power, authority, conflict and control.
Constructive Conflict
Leader Vs. Boss
Delegation of Authority
Coordination needed at all the levels
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17. Follett Principles of Coordination
Four principles of coordination to promote effective work groups:
Coordination requires that people be in direct contact with one another.
Coordination is essential during the initial stages of any endeavor.
Coordination must address all factors and phases of any endeavor.
Coordination is a continuous, ongoing process.
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18. 2. Elton Mayo Conducted the famous Hawthorne Experiments.
“Hawthorne Effect”
Job satisfaction increases as workers were given more freedom to -
a) determine condition of their working environment.
b) set their own standards of output
Job satisfaction depend more on cooperation than on physical working conditions.
Criticized for lack of vigorous research, the experiments were too narrow and small to generalization.
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19. 3. Douglas McGregor
Proposed the Theory X and Theory Y styles of management.
Theory X managers perceive that their subordinates have an inherent dislike of work and will avoid it if at all possible.
Theory Y managers perceive that their subordinates enjoy work and that they will gain satisfaction from performing their jobs.
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20. Table 2.3 Comparison of Theory X and Theory Y Assumptions
Factor Theory X Assumptions Theory Y Assumptions
Employee attitude Employees dislike work and. Employees enjoy work and toward work will avoid it if at all possible. will actively seek it. Management view Employees must be directed, Employees are self-motivated of direction coerced, controlled, or threatened and self-directed toward achieving to get them to put forth adequate effort. organizational goals. Employee view Employees wish to avoid responsibility; Employees seek responsibility; of direction they prefer to be directed and told what they wish to use their creativity, to do and how to do it. imagination, and ingenuity in performing their jobs.
Management style Authoritarian style of management Participatory style of management
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21. Theory 3:The Quantitative Perspective
Characterized by its use of mathematics, statistics, and other quantitative techniques for management decision making and problem solving.
This approach has four basic characteristics:
A decision-making focus
Development of measurable criteria
Formulation of a quantitative model
The use of computers
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22. The Quantitative Perspective (cont’d)
Decision-Making Focus
The primary focus of the quantitative approach is on problems or situations that require direct action, or a decision, on the part of management.
Measurable Criteria
The decision-making process requires that the decision maker select some alternative course of action. The alternatives must be compared on the basis of measurable criteria.
Quantitative Model
To assess the likely impact of each alternative on the stated criteria, a quantitative model of the decision situation must be formulated.
Computers
Computers are quite useful in the problem-solving process.
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23. Theory 4: Systems Perspective
An approach to problem solving based on an understanding of the basic structure of systems
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24. Theory 4: Systems Perspective (contd.)
Environmental interaction
Open systems must interact with the external environment to survive.
Closed systems do not interact with the environment.
Synergy: when all subsystems work together making the whole greater than the sum of its parts.
Entropy: the tendency for systems to decay over time.
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25. Theory 5:The Contingency Perspective
A view that proposes that there is no one best approach to management for all situations.
Asserts that managers are responsible for determining which managerial approach is likely to be most effective in a given situation.
This requires managers to identify the key contingencies in a given situation.
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26. Blending Components into a Contingency Perspective
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27. An Example of the Contingency Perspective
Joan Woodward’s Research
Discovered that a particular management style is affected by the organization’s technology.
Identified and described three different types of technology:
Small-batch technology
Mass-production technology
Continuous-process technology
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28. Production Technology Examples
Small-batch Custom fabrication machine shop, technology manufacturer of neon advertising signs, print shop specializing in personal business cards, trophy-engraving shop
Mass-production Manufacturer of automobiles, manufacturer technology of refrigerators, manufacturer of hair dryers, manufacturer of pencils
Continuous-process Oil refinery, flour mill, soft drink bottler, technology chemical processor
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29. Management in the 21st Century
William Ouchi’s Theory Z
Japanese-style approach to management developed by William Ouchi
Advocates trusting employees and making them feel like an integral part of the organization.
Based on the assumption that once a trusting relationship with workers is established, production will increase.
Ankita Prabhakar, Asst.Prof.