2 Management Theories
2 Management Theories
McGraw-Hill/Irwin
Contemporary Management, 5/e
Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
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Learning Objectives
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The Evolution of Management Theory
Figure 2.1
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Job Specialization and
the Division of Labor
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Job Specialization and
the Division of Labor
• Job Specialization
– process by which a division of labor occurs
as different workers specialize in specific
tasks over time
2-7
Job Specialization and
the Division of Labor
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F.W. Taylor and Scientific
Management
Scientific Management
The systematic study of the
relationships between people and
tasks for the purpose of redesigning
the work process to increase
efficiency.
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Four Principles of Scientific
Management
1) Study the way workers perform their tasks,
gather all the informal job knowledge that
workers possess and experiment with ways
of improving how tasks are performed
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Four Principles of Scientific
Management
2) Codify the new
methods of
performing tasks
into written rules
and standard
operating
procedures
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Four Principles of Scientific
Management
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Four Principles of Scientific
Management
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Problems with Scientific Management
• Administrative
Management
– The study of how to
create an organizational
structure that leads to
high efficiency and
effectiveness.
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Administrative Management Theory
Max Weber
– Developed the principles of bureaucracy as a
formal system of organization and
administration designed to ensure efficiency
and effectiveness.
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Weber’s
Weber’s
Principles
Principlesof
of
Bureaucracy
Bureaucracy
Figure 2.2
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Weber’s Principles of Bureaucracy
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Weber’s Principles of Bureaucracy
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Weber’s Principles of Bureaucracy
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Rules, SOPs and Norms
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Fayol’s Principles of Management
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Fayol’s Principles of Management
• Line of Authority
– A clear chain of command from top to
bottom of the firm.
• Centralization
– The degree to which authority rests at the
top of the organization.
• Unity of Direction
– A single plan of action to guide the
organization.
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Fayol’s Principles of Management
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Fayol’s Principles of Management
• Discipline
– Obedient, applied, respectful employees
are necessary for the organization to
function.
• Remuneration of Personnel
– An equitable uniform payment system that
motivates contributes to organizational
success.
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Fayol’s Principles of Management
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Fayol’s Principles of Management
Esprit de corps
– Comradeship, shared enthusiasm
foster devotion to the common cause
(organization).
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Behavioral Management Theory
Behavioral Management
– The study of how managers should
personally behave to motivate employees
and encourage them to perform at high
levels and be committed to the achievement
of organizational goals.
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Behavioral Management
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The Hawthorne Studies
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The Hawthorne Studies
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The Hawthorne Studies
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The Hawthorne Studies
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The Hawthorne Studies
Implications
• Behavior of managers and workers in
the work setting is as important in
explaining the level of performance as
the technical aspects of the task
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The Hawthorne Studies
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• The Hawthorne studies have had a
remarkable impact on management in
organizations and how workers react to
various situations.
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The research carried out at the Western
Electrics Hawthorne plant during the 1920’s
and early 1930’s helped to initiate a whole
new approach to human behaviour studies.
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Hierarchy of Needs by Abraham
Maslow
Theory X and Theory Y
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Theory X vs. Theory Y
Figure 2.3
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Management Science Theory
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Management Science Theory
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Management Science Theory
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Organizational Environment Theory
Organizational Environment –
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The Open-Systems View
Open System
– A system that takes resources for its
external environment and transforms
them into goods and services that are
then sent back to that environment
where they are bought by customers.
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Figure 2.4
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The Open-Systems View
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Closed System
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Systems
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Contingency Theory
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Contingency Theory
Figure 2.5
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Type of Structure
Mechanistic Structure
– Authority is centralized at the top.
– Emphasis is on strict discipline and order
– Employees are closely monitored and
managed.
– Can be very efficient in a stable
environment.
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Type of Structure
Organic Structure
– Authority is decentralized throughout
the organization.
– Departments are encouraged to take a
cross-departmental or functional
perspective
– Works best when environment is
unstable and rapidly changing
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