Management

Theories
Management Theories

• Management theories are

the set of general rules that
guide the managers to
manage an organization.
• Theories are an explanation
to assist employees to
effectively relate to the
business goals and
implement effective means
to achieve the same.
 • Scientific management theories
• Classical management theories
Management Theory • Relational management theories
• Behavioral management theories
Scientific
management
theories

Frederick Taylor
Frank & Lillian Gilbreth
Henry Gantt
 • Scientific management

“The remedy for this

inefficiency lies in
systematic management,
rather than in searching
for some unusual or
extraordinary man.”
-F. Taylor
Frederick Winslow Taylor

• Father of scientific management

• The Principles of Scientific
Management
• Productivity would increase if
jobs were optimized and
simplified
Principles of Scientific Managementt

• Science, Not Rule of Thumb

• Harmony, Not Discord
• Cooperation, Not Individualism
• Development of Each and Every Person to His / Her Greatest
Efficiency and Prosperity
 Lilian Gilbreth- First
Frank and Lillian Gilbreth Lady of Management

Job simplification

Time and Motion

study

Filming
Henry Gantt (1861–1919)

• an associate of Taylor.
• Best contribution to
management:
• the Gantt chart
• the task and bonus system.
 Gantt chart

• a tool that provides a visual (graphic) representation of what occurs over the course of a project.
• The focus of the chart is the sequential performance of tasks that make up a project.
• It identifies key tasks, assigns an estimated time to complete the task, and determines a starting
date for each element of a task.
• Gantt differentiated between a terminal element that must be completed as part of a larger
task.
• The related terminal elements together created what he called the summary element.
Classical Management
Theories
Max Weber
Henry Fayol
Lyndall Urwick
Classical management theory

• Classical management theory is based on the belief that workers only have
physical and economic needs.
• It does not take into account social needs or job satisfaction, but instead
advocates a specialization of labor, centralized leadership and decision-
making, and profit maximization.
• Hierarchical structure
• Specialization
• Incentive
Max Weber (1864—1920)

• Bureaucratic Theory
• Father of Organization Theory
• interested in industrial capitalism,
an economic system where industry
is privately controlled and operated
for profit.
 • Weber made a distinction between authority and
power.
Max Weber • Weber believed that power educes obedience
(1864—1920) through force or the threat of force which
induces individuals to adhere to regulations.
• types of power in an organization
• 1.Traditional Power
• 2.Charismatic Power
• 3.Bureaucratic Power or Legal Power.
 CHAR ACTER ISTIC OF THE
DESCRIPTION
B UR EAUCR ACY

Hierarchical Management Each level controls the levels below and is controlled by the level above. Authority
Structure and responsibilities are clearly defined for each position.

Tasks are clearly defined and employees become skilled by specializing in doing one
Division of Labor
thing. There is clear definition of authority and responsibility.

Employee selection and promotion are based on experience, competence, and

Formal Selection Process technical qualification demonstrated by examinations, education, or training. There
is no nepotism.

Management is separate from ownership, and managers are career employees.

Career Orientation
Protection from arbitrary dismissal is guaranteed.

Rules and regulations are documented to ensure reliable and predictable behavior.
Formal Rules and Regulations
Managers must depend on formal organizational rules in employee relations.

Rules are applied uniformly to everyone. There is no preferential treatment or

Impersonality
favoritism.
Henri Fayol (1841-1925)

• 14 Principles of
Management
• Father of General
Administration
Fayol's 14 Principles of Management
Division of Work – Authority –
Discipline –
When employees are specialized, Managers must have the authority
Discipline must be upheld in
output can increase because they to give orders, but they must also
organizations, but methods for
become increasingly skilled and keep in mind that with authority
doing so can vary.
efficient. comes responsibility.

Unity of Direction – Subordination of Individual

Teams with the same objective Interests to the General Interest –
Unity of Command –
should be working under the The interests of one employee
Employees should have only one
direction of one manager, using should not be allowed to become
direct supervisor.
one plan. This will ensure that more important than those of the
action is properly coordinated. group. This includes managers.

Remuneration –
Employee satisfaction depends on
fair remuneration for everyone.
This includes financial and non-
financial compensation.
Fayol's 14 Principles of Management

Centralization –
Scalar Chain – Order –
This principle refers to how
Employees should be aware The workplace facilities must
close employees are to the
of where they stand in the be clean, tidy and safe for
decision-making process. It is
organization's hierarchy, or employees. Everything should
important to aim for an
chain of command. have its place.
appropriate balance.

Equity – Stability of Tenure of

Managers should be fair to Personnel – Initiative –
staff at all times, both Managers should strive to Employees should be given
maintaining discipline as minimize employee turnover. the necessary level of freedom
necessary and acting with Personnel planning should be to create and carry out plans.
kindness where appropriate. a priority.

Esprit de Corps –
Organizations should strive to
promote team spirit and unity.
Lyndall Urwick
(1891-1984)
• Principles are based on managerial tasks
• 10 PRINCIPLES OF MANAGEMENT
• The principle of the objective – the overall purpose of
an organization it its raison d'être.
• The principle of specialization – one group, one
function.
• The principle of coordination – the purpose of
organizing is to facilitate coordination or unity of effort.
• The principle of authority – in every organized group,
supreme authority must be located somewhere, and
there should be a clear line of authority to every
member of the group.
• The principle of responsibility – a superior may be held
accountable for the actions of subordinates.
Lyndall Urwick
(1891-1984)
• The principle of definition – jobs, duties and relationships should
be clearly defined.
• The principle of correspondence – in every position, responsibility
and authority should correspond with one another.
• The principle of span of control – no person should supervise
more than 5–6 line reports whose work is interlocked.
• The principle of balance – it is essential that the various units of an
organization are kept in balance.
• The principle of continuity – reorganization is a continuous process
and provision should be made for it.
Relational management
theories
Elton Mayo
Kurt Lewin
Mary Parker Follet
Relational Management Theories
• Relationship management involves strategies
to build client support for a business and its
offerings, and increase brand loyalty.
• Most often, relationship building occurs at
the customer level, but it is valuable between
businesses as well.
• In the era of the Human Relations Theory,
the concept of ‘labour motivation’ is given a
new meaning compared to the Scientific
Management era.
• The fact that personal attention led to
improved performances was a completely
new perspective.
• The term workers is gradually replaced with
employee, which more explicitly implies that
these people are thinking people who can
positively contribute to the organization.
Elton Mayo
• Founder of the Human Relations Theory.
• Hawthorne Experiment
 4 Phases of Hawthorne
Experiments
• 1. Illumination Experiments
• Experiments to determine the effects of changes in illumination
on productivity, illumination experiments, 1924-27.
• 2. Relay Assembly Test Room Experiments
• Experiments to determine the effects of changes in hours and
other working conditions on productivity, relay assembly test
room experiments, 1927-28
• 3. Mass Interviewing Program
• Conducting plant-wide interviews to determine worker attitudes
and sentiments, mass interviewing program, 1928-30; and
• 4. Bank Wiring Observation Room Experiment.
• Determination and analysis of social organization at work, bank
wiring observation room experiments, 1931-32.
Result of Hawthorn studies

• Individual employees must be seen as

members of a group;
• Salary and good working conditions are less
important for employees and a sense of
belonging to a group;
• Informal groups in the workplace have a
strong influence on the behavior of
employees in said group;
• Managers must take social needs, such as
belonging to an (informal) group, seriously.
Kurt Lewin (1890-1947)
Lewin’s
Change
Model
Mary Parker Follet
 Mother of Conflict Management

Mary Parker -Coordinating Sociological and

Follet psychological aspects of management

-Superiors and subordinates mutually

influence one another
 Cоnѕtruсtivе
Cооrdinаtiоn,
Cоnfliсt,
Fоllеtt’ѕ major
ideas
Pоwеr,
Authоritу аnd Lеаdеrѕhiр.
Cоntrоl and
Behavioral Theories
Douglas Mc Gregor
Abraham Maslow
Frederick Herzberg
Douglas Mc Gregor
Abraham Maslow
Frederick Herzberg