Management Theories

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Management Theories

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Various theories or models have been developed to explain how management should best attempt to achieve its goals

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Classical Scientific

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Fredrick TAYLOR: shocked by the inefficieny of workers. Developed the "Principles of Scientific Management"

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Four Principles of Management

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1. Develop a science fo earch element of an indiv. work.
2. Scientifically select and then train, teach and develop the worker
3. Cooperate with the worker to ensure all work is done in accordance w/ the principal of science
4. Divide work and responsibility almost equally between management and workers

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Pig Iron Experiment

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An increase in efficeny to 48t from 12.7t. This is bc he made workers use the correct tools, chose the right person for the job, follow instructions, incentives.

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Taylor's studies affired the fact that the manager's role was to ____ and _______ and to enure the worker's ______ ____________.

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plan, control, follow instructions

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Henri Fayol

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Planning, Orgainising, Controlling and Leading

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Planning .o1

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take in to account the current position and standing of the business w/in existiing limits set by internal and external environ.

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Planning .o2

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strategies based on experience, estimates and adjustments for expected or possible changes in the business environ.

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Strategic Planning

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long term planning for a business as a whole and developed by senior management.

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Tactical Planning

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short-term planning developed by middle mngt. Adaptable to changing business environ.

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Operational Planning

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plans for day-to-day running

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Organising

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involves creating the framework for the implementation of the business plan

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Controlling

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the firm compares the results achieved with what it had planned to achieve

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Leading

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motivating employees

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Classical Scientific Strengths

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based on mathemtical calculation, time and motion studies completed, specialisation and division of labour, clear lines of authority, emphasis on money, business goals priority

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Classical Scientific Weaknesses

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human & social needs ignored, rigid autocratic, slow to repsond to external environ.,low worker satisfaction and motivation

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Bureaucracy

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system of administration » strict levels of authority

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Chain of Command

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extends from the top of the pyramid down to the lowest form

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Span of Control

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no. of workers that a manager controls directly

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Behavioural Management Theorist emphasize

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the need for management to develop the ability to understand and work with people

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The purpose of the Hawthorne Studies (1924)

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wanted to examine the effect of various illumination levels on worker productivity

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The engineers who set up the study was unable to understand the results as tehy could not reason as to

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why incease in group productivity was not related to illumination intensity

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Elton Mayo's most important finidngs,

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social norms or standards of the group were the key determinants of individual work behaviour

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The effect of the Hawthorne Studies

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new emphasis on human behaviour factor in the functioning of organisations and attainment of their goals

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Leading (BMT)

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understand the workplace culture

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Motivating (BMT)

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Maslon: individuals have intrinsc needs that they are impleed to satisfy

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Motivation Techniques

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monetary and non-monetary benefits
positive reinforcement and recognition of a job well done

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Communicating(BMT)

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the exchange of information between people.

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Behavioural Theory Strengths

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human and social factors as important, particpative leadership,active worker, delegation, shorter chain of command

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Behavioural Theory Weaknesss

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social r'ships could dominate, complicated process of decisions, lose varying deg. of control, interpersonal skills difficult to achieve

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Coercive

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to gain by force or threat of punishment

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Expert

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based on competence or expertise in a particular field

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Legitmate

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Power that is delegated through the formal position held in an orgainsation

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Referent

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relates to a person who inspires others

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Reward

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the ability to provide benefits to others

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An orgainisation's structure is the result of a _____ ________ by those w/in the organisation

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POWER STUGGLE

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Political Theory Strengths

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recognise that managers and employees have own set of objectives, not always compatible, highlights importance of managers having negotiations and bargaining skills

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Political Theory Weaknesses

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encourages 'manipulation', coalition may undermine mngt, promote competition, offers no real resolution

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Sytems Management Theories

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this is when a business can be seen as various systems (i.e. different departments of the business) that are working independently but when they achieve their goal (along with all the other departments) allows for the business to run smoothly as a whole

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Contingency Approach

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when the business looks at ultimate flexibility within a business, when undertaking a task management should try and be as flexible as possible when doing this but when another task comes up management must try and use different methods so that the task is done as efficiently as possible