Evolution & Different Management Theories PDF

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Different Management Theories Classical Management Theory Here we focus on Three well-known early writers on management: Henri Foyal , F W Taylor and Max Weber Definition of management: Management takes place within a structured organisational setting with prescribed roles. It is directed towards the achievement of aims and objectives through influencing the efforts of others. Classical management theory

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Emphasis on structure Prescriptive about 'what is good for the firm'

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Practical manager (except Weber, sociologist)

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Henri Fayol (1841 - 1925), France – He summarized the Managerial Responsibilities and Functions in ‘14 Principles’. 1.Division of work

Reduces the span of attention or effort for any one person or group. Develops practice and familiarity

2. Authority

The right to give an order. Should not be considered without reference to responsibility

3. Discipline

Outward marks of respect in accordance with formal or informal agreements between firm and its employees

4. Unity of command

One man superior

5. Unity of direction

One head and one plan for a group of activities with the same objective

6. Subordination of

The interests of one individual or one group

individual interests to the

should not prevail over the general good. This is

general interest

a difficult area of management

7. Remuneration

Pay should be fair to both the employee and the firm

8. Centralisation

Is always present to a greater or less extent, depending on the size of the company and quality of its managers

9. Scalar chain

The line of authority from top to bottom of the organization

10. Order (Organising the Resources)

A place for everything and everything in its place; the right man in the right place

11. Equity

A combination of kindliness and justice towards the employees

12. Stability of tenure of personnel

Employees need to be given time to settle into their jobs, even though this may be a lengthy period in the case of the managers

13. Initiative

Within the limits of authority and discipline, all levels of staff should be encouraged to show initiative

14. Esprit de corps

Harmony is a great strength to an organisation; teamwork should be encouraged

F W Taylor - (1856 - 1915), USA- The Scientific Management School Taylorism involved breaking down the components of manual tasks in manufacturing environments, timing each movement ('time and motion' studies) so that there could be a proven best way to perform each task. Thus employees could be trained to be 'first class' within their job. This type of management was particularly relevant to performance drives e.g 'Action On' projects. This was a rigid system where every task became discrete and specialized. It is fair to suggest that this is unlikely to be of value to the NHS with the Modernisation agenda suggesting that we should have a flexible workforce. Key points about Taylor, who is credited with what we now call 'Taylorism':

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he was in the scientific management school his emphases were on efficiency and productivity

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but he ignored many of the human aspects of employment.

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Max Weber (1864 - 1924), Germany Bureaucracy in this context is the organisational form of certain dominant characteristics such as a hierarchy of authority and a system of rules. Bureaucracy in a sense of red tape or officialdom should not be used as these meanings are value-ridden and only emphasize very negative aspects of the original Max Weber model.

Contingency Theory This theory asserts that managers make decisions based on the situation at hand rather than a "one size fits all" method. A manager takes appropriate action based on aspects most important to the current situation. Managers in a university may want to utilize a leadership approach that includes participation from workers, while a leader in the army may want to use an autocratic approach.

Systems Theory Managers who understand systems theory recognize how different systems affect a worker and how a worker affects the systems around them. A system is made up of a variety of parts that work together to achieve a goal. Systems theory is a broad perspective that allows managers to examine patterns and events in the workplace. This helps managers to coordinate programs to work as a collective whole for the overall goal or mission of the organization rather than for isolated departments.

Chaos Theory Change is constant. Although certain events and circumstances in an organization can be controlled, others can't. Chaos theory recognizes that change is inevitable and is rarely controlled. While organizations grow, complexity and the possibility for susceptible events increase. Organizations increase energy to maintain the new level of complexity, and as organizations spend more energy, more structure is needed for stability. The system continues to evolve and change.

Theory X and Theory Y The management theory an individual chooses to utilize is strongly influenced by beliefs about worker attitudes. Managers who believe workers naturally lack ambition and need incentives to increase productivity lean toward the Theory X management style. Theory Y believes that workers are naturally driven and take responsibility. While managers who believe in Theory X values often use an authoritarian style of leadership, Theory Y leaders encourage participation from workers.

Human Relations Theory Where Classical theorists were concerned with structure and mechanics of organisations, the theorists of human relations were, understandably, concerned with the human factors. The foci of human relations theory is on motivation, group motivation and leadership. At the centre of these foci are assumptions about relationship between employer and employee. Best summarized by Elton Mayo. They were academic, social scientists. Their emphasis was on human behaviour within organisations. They stated that people's needs are decisive factors in achieving an organisation's effectiveness. They were descriptive and attempted to be predictive of behaviour in organisations. A 'motive' = a need or driving force within a person.

The process of motivation involves choosing between alternative forms of action in order to achieve some desired end or goal. (Hawthorns studies)

Modern Theory of Management Modern management theory has changed the way managers look at their jobs. Advancements and refinements in management theory and practice have enabled managers and managerial systems to evolve. In this lesson, we will look at modern management theories.

'Manage' Is an Adjective Throughout history, there have been managers. Well, the reality is that way back in the day they were called 'leaders' or 'adventurers,' but as time went on the term 'manager' began to take hold. No one would ever think Christopher Columbus 'managed' his way to the Americas or that George Washington 'managed' the U.S. army. In many cases, these guys knew what they wanted to do or knew what they had to do and did it. Even today, we typically do not talk about managers per se but rather leaders. 'Manager' has become more of an adjective than a noun, describing what someone does or their role. 'Bill manages the department'; 'she's a great manager'; 'he managed the team very well', etc. What we have to understand is that a leader does indeed manage what they are responsible for. And, over time, there have been multiple theories of management that have evolved and that these leaders use as a guiding force behind their management or leadership philosophy. The three most recognized management theories are: 

The Quantitative Approach: This approach is centered on statistics and mathematical techniques - sounds like a boatload of fun if you ask me.

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The Systems Approach: As one could probably guess, this approach focuses on systems that, when put together, make a whole unit, kind of like a jigsaw puzzle.

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The Contingency Approach: This approach believes there is no one system or approach to managing an organization. This approach believes in keeping the alternative plan / preparation ready in case of any unforeseen changes or things happen than expected. you have to take it as it comes but plan to deal with issues if they pop up.

So in this lesson let's take a look at these different theories and how they shape how leaders (okay, managers) manage these areas or companies they are responsible for. It's important to understand, though, that in one company, all these different approaches can be used. There's not one that is better than another, just different, and sometimes they have to be blended together for a company or organization to run.

Quantitative Approach Okay, get out your slide rules and calculators, because that is what this approach uses as its guiding principles. You see, the quantitative approach is solely reliant on statistics and data. The big word we are looking for here is quantitative, which means the measurement of quantity or amount. So a bunch of really smart people get together and they crunch and crunch data to decide how a business should run or be managed. Scientists use this approach a great deal and, in many cases, so do accountants and finance people, mainly because their world revolves around data.

It is not glamorous or creative. Heck, it could even be said it isn't fun, but someone has to do it, and each part of a company or organization needs people to use this approach. Think about if you had a manufacturing company that made flying monkeys. Well, someone has to statistically look at the data to make sure the monkeys are flying as far as they should and monitor if you are producing any defective monkeys (and no one wants a defective monkey). This data, once it's gathered, is presented to the company for review and action if needed.

Systems Approach Now let's talk a little about the systems approach. When I was younger, I used to play with Legos - those little building blocks that I could make a house or car out of (okay, I thought it looked like a house or a car, but it probably looked more like a squid that was in a train wreck). In many ways, the ‘System Approach To Management’ is very much like Legos. The systems approach takes the viewpoint that a company is really an interconnected group of systems that all work together (or should work together). The best way to view this system is by thinking of a company as a machine. You have: 

Inputs: Material, information or data that goes into the machine

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Processes: Work that is done to the material, information or data while it's in the machine

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Outputs: The final product that comes out of the machine

Okay, so in this system, managers see the company as one big machine that has to work together to take inputs and make them outputs. As an example, let's look at a toaster. The systems approach to management believes you put in bread, turn on the toaster and, when the process is done, toast comes out, hopefully not burned too much. Their job or belief is to work with each part of the system to make sure the end result is what is needed - what went in, what happened while it was in there and what it looked like when it came out. To compare this to the quantitative approach, a manager that follows that approach would only want to know data about how long the bread was in the toaster and the level of, well, toasting that happened when it came out. So we can begin to see how, in some companies, we have a blending of approaches to managing the work or organization. One wants to keep and track data to see how the company is functioning, and in many cases, that data can be presented to the manager that follows the systems approach to make changes needed if things are not running right in the process.

Contingency Approach 1.

A contingency approach to management is based on the theory that management effectiveness is contingent, or dependent, upon the interplay between the application of management behaviors and specific situations. In other words, the way you manage should change depending on the circumstances.

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A contingency approach to management is based on the theory that management effectiveness is contingent, or dependent, upon the interplay between the application of management behaviors and specific situations. In other words, the way you manage should change depending on the circumstances. One size does not fit all. X – x- - x – x – x – x – x – x -...