1. Theories of Management
BOH4M

2. Theories of Management
Management may be traced back to 5000 B.C.
Management was important to the construction of the Egyptian Pyramids, rise of the Roman Empire and the commercial success of the 14th Century.

3. Classical Approaches to Management
Assumes that people are rational and driven by economic concerns
3 branches:
Scientific management
Administrative principles
Bureaucratic organization

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”

5. Scientific Method: Frederick Taylor
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
In one study, scientific method reduced the number of motions of brick layers and tripled productivity

6. 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)

7. Administrative Principles: Henry Fayol
Identifies five duties of management including:
Foresight
Organization
Command
Coordination
Control

8. Mary Parker Follett
Viewed organizations as communities where diverse individuals should labour in harmony without dominance over one another.
Manager’s job is to help people cooperate and meet their interests.
Make every employee an owner to create collective responsibility

9. Bureaucratic Organization: Max Weber
Believed management needed a rigid, rational organization founded on logic, order and legitimate authority
Characteristics of a bureaucratic organization are:
Clear division of labour – jobs are well defined so people become highly productive doing them
Well defined levels of authority which cannot be overridden
Formal rules and procedures to direct actions and behaviour of employees
Workers are promoted based strictly on performance

10. Behavioural Approaches to Management
In the 1920s, management theorists began to take into account the human side of the workplace. Theories that evolved out of this school of thought were:
The Hawthorne Studies
Maslow’s theory of human needs
Theory X/Theory Y
Personality and organization

11. The Hawthorne Studies “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
Subsequent experiments yielded similar results… productivity increased regardless of what changes were made

12. “The Hawthorne Effect”
The tendency for people centred out for individual attention to perform as expected.
People perform differently when they know they are being observed and studied.