Download - MGT200 Chapter 2A
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MGT 200 Management Theory
Required Reading:
Chapter 2 of textbook
Peter Senge ArticleMeg Wheatly Interview
Today’s Topic: History of Management
Theory
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Learning Objectives
Know the basic premises of six
management theories
Understand the context for the evolutionand development of these theories
Know the basic concepts of several current
trends in management Explore three forces that are changing the
context for managerial work today
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Management Theories/Concepts
Division of Labor
Scientific Management
Administrative Theories Behavioral Theory
Chaos Theory
Contingency Theory
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Division of Labor
Adam Smith: “The Wealth of Nations”
Premise: Increase productivity by breaking
down jobs into narrow, repetitive tasks
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Scientific Management
Management practices should be based
on fact and observation
Focuses on the relationship between
individual workers and their tools or
machines
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Scientific Management
Frederick Taylor
– There is “one best way” to perform a task
– Time and motion studies – Money motivates employees to do their best
Frank and Lillian Gilbreth
– Followers of Taylor
Henry Gantt
– Control systems for production scheduling
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Assessing Scientific Management
Many aspects used today
Misreads human side of work
Simple tasks and clear rules don’t
guarantee results
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Administrative Theories
Focus on managers and their behavior
Henri Fayol, French industrialist
– Management is a discipline with
principles that can be taught
Max Weber
– Developed the concept of “bureaucracy”
as the ideal structure for an organization
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Fayol’s Administrative Principles
1. Division of labor
2. Authority to give orders
3. Discipline4. Unity of command
5. Unity of direction
6. Subordination of
individual interest
7. Remuneration: pay for
work done
8. Centralization
9. Scalar chain
10. Order11. Equity
12. Stability and tenure
of staff
13. Initiative
14. Esprit de corps
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Bureaucratic Management
Formal system of rules and procedures
Impersonality
Hierarchical structure with detailedauthority
Clear division of labor
Rationality
Career commitment
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Assessing Administrative Theories
Managers still use many of Fayol’s principles
Overemphasizes the rational behavior of
managers Advantages & disadvantages of bureaucracy
– Benefits: efficiency, consistency
– Costs: rigid, slow, difficult to adapt
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Behavioral Theory
Focuses on the human aspects of organizations
Mary Parker Follet
– Management is a dynamic process – Workers should be involved in decisions
Chester Barnard
– Organizations are social systems – Managers need “buy-in” of employees
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Hawthorne Studies
A “scientific theory” study that provided
strong support for the behavioral viewpoint
The Hawthorne Effect: Productivity islikely to increase when employees are given
special attention regardless of whether
working conditions change The social environment of employees also
greatly influences productivity
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Behavioral Theory
Basic Assumptions
– Employees are motivated by social needs
– Social forces exerted by peers is strong – Employees respond to managers who help them
satisfy their needs
– Managers need to coordinate the work of
subordinates democratically to improve
efficiency
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Behavioral Theory Assessment
Adds greatly to the mechanistic view of
managing people
But human relation skills alone won’tguarantee increased productivity or high
quality work
Managing the human aspects of anorganization is a very complex task
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Chaos Theory
Margaret Wheatley, 1992
Look at an organization as a living
organism Learn management from natural systems
Basic Premise: Self-organization
– the tendency of living systems to organize intostructure without any externally imposed plan
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Chaos Theory Principles
Information access
– Everyone has easy access to all the information
they need to do their job
Relationships
– Everyone has easy access to anyone they need
to do their job
Self-reference
– The organizations core identity or purpose
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Chaos Theory Assessment
Goes against many traditional beliefs about
role of managers
Requires educated, involved employees Requires change in communication methods
Clear vision/joint purpose is crucial
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Contingency Viewpoint
There is no best way to manage in all
situations
Use the different management viewpoints asappropriate to deal with various situations
Managers must be able to diagnose and
understand a situation thoroughly
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Contingency Viewpoint
Basic contingency variables:
– External environment
– Technology – Individuals
Importance of each variable depends on
type of situation and problems being faced
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Assessing the Contingency
Viewpoint
Useful approach - makes sense to change
viewpoint depending on situation
Most managers use intuitively Diagnosis very important to determine best
approach
Many don’t consider to really be a “theory”of management
– just draws on other theories
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Management Theories Summary
Division of Labor - Adam Smith
Scientific Management - Taylor, Gilbreths, Gantt
Administrative Theories - Fayol, Weber
Organizational Behavior - Follett, Barnard
Chaos Theory - Wheatley
Contingency Theory
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What’s Next?
Current Trends and Issues in Management
Read Chapter 2: pages 40-53
Read Senge handout on Systems Thinking