Business Leadership Quest U4 - Management Theories

Manager

a person who supports and is responsible for the work of others

Management

set of activities directed at an organizations resources (human, financial, physical, and information) with aim of achieving organizational goals in an efficient and effective manner

Four functions of management

planning, organizing, controlling, leading

3 Eras of Management Are

1. Classical Management

2. Behavioral/Human Relations Management

3. Modern Management

Time Frame of Classical Management

1900-1920

Classical Approach to Management entails workers to be..

-expected to be rational

- consider opportunities, take whatever needed to get monetary and personal gain

Classical Approach has a system...

a rigid system of hierarchy, specialization of tasks and financial incentives

Theories Under Classical Management and Who's responsible

1. Scientific Management (Fredrick Taylor)

2. Administrative Principles (Henri Fayol)

3. Bureaucratic (Max Weber)

Fredrick Taylor

1856-1915

Father of Scientific Management

Scientific Management Theory Believes

There is one best way to do a job

Scientific Management Emphasizes (3)

Emphasizes the use of time and motion methods to improve productivity and efficiency in the workplace

- efficiency, time studies, and job specialization

Scientific Management Objectives

science, harmony, cooperation, maximum output, development

- maximum output and efficiency/productivity is extremely important

Time and Motion Studies Steps (S.M)

breaking the task into motions, analyzing for efficiency, eliminate motions, combine with time study to develop workflow, improve speed and ergonomics

Pig Iron Experiment (S.M, T&M)

studied how much iron workers would carry

- broke tasks down, and timed ea.

- found optimal way to increase productivity

later recognized shovel decreases efficiency, changed that to improve

Scientific Management Application

- applied in factories and assembly lines

- managers planned, workers executed

Criticisms of S.M (5)

- ignored human emotion, creativity

- workers = mechanics, reducing humanity

- motivation based on solely $$

- work environments were too inflexible

- lead to burnout

Relevance of S.M today

- influences manufacturing and operations

- time-motion studies are still used

- now must be balanced with humanity and collaboration

Where is S.M still applied

Food Service (assembly line)

Retail (Inventory)

Customer Service (Call Centers)

Why is S.M related to Science?

- applied systematic, date-driven methods to improve efficiency

- work can be studied, measured, and optimized like scientific experiments

Henri Fayol

(1841-1925)

Father of Modern Management + Classical Management

- French

- mining engineer + management theorist

- one of fist to analyze managerial behaviour scientifically

Administrative Principles Believes

- specific tasks enhance employee efficiency + skill development

- multi-tasking = overwhelms

Administrative Principles Began As..

solution to difficulties managing big companies during the industrial revolution

How Many Principles of Management in Adminstr. Principles theory

14

Key 4 Admin. Principles

Unity of Command. Remuneration, Scaler Chain, Espirit de Corps

All 14 Principles

1. Division of Work

2. Authority

3. Discipline

4. Unity of Command

5. Unity of Direction

6. Subordination of Individual Interest

7. Remuneration

8. Centralization

9. Scalar chain

10. Order

11. Equity

12. Stability of Tenure

13. Initiative

14. Espirt de Corps

Scalar Chain Concept

shows how organizations are structured

- stresses clear communication between management levels

Scalar Chain Concept Emphasizes

flow of authority and information up and down the chain

Scalar Chain Concept: Gang Plank

in case of emergencies a subordinate of one line of authority can communicate with another subordinate of another line of authority

Unity of Command

employees should receive order from only one superior

Unity of Command Aims to...

prevent confusion and conflicting instructions

- ensures clarity and efficiency in decision making + execution

Espirt de Corps

- team spirit or group morale

- Fayol: idea that managers should work to build harmony, unity, and strong sense of belonging

Remuneration

- payment or compensation employees receive for their work, includes wages, salaries, bonuses, benefits, and other rewards

Fayol's 5 Primary Functions of Management

1. Planning

2. Organizing

3. Commanding

4. Coordinating

5. Controlling

(++ Forecasting)

Influence of Fayol's Theory, Adminstr. Princps.

- Influenced early 20th century business practices

- basis for administrative theory

- taught in business schools (1900s_

Implementation in the Workplace (A.P - Fayol)

- used in large organizations

- applied in military, government, corporate settings

- promote clearer chains of command

Criticisms of Administrative Principles - Fayol (4)

- too rigid and hierarchical for modern organizations

- ignores human motivation and group dynamics

- emphasizes on efficiency + profits

- not ideal for innovative or agile companies

Relevance of Administrative Theory Today

- useful for core function for management

- still used in structured environments

needs adapting for modern workplaces

Max Weber

1864-1920

Father of Sociology

Bureaucratic Theory Emphasizes

formal system of organization and administration designed to ensure efficiency and effectiveness

Bureaucracy =

is rational efficient form of organization founded on logic, order and legitimate authority

Weber Believed Bureaucracy was..

ideal type of organization to maintain order in complex societies

Motivators for Bureaucracy

industrial revolution transformed workspaces

- there was problems with favoritism, disorganization and lack of clear roles

- weber was interested in industrial capitalism

6 Principles of Weber's Theory

1. Task Specialization

2. Hierarchical Authority

3. Formal Selection

4. Rules and Requirements

5. Impersonality

6. Career Orientation

6 Principles of Weber's Theory: Task Specialization

Each Person is matched with what they do best

- specialized roles/tasks improve efficiency

- overstepping = NG

6 Principles of Weber's Theory: Hierarchical Authority

Clear levels of command

- supervises those below them, subject to control of level above

6 Principles of Weber's Theory: Formal Selection

Employees chosen based on technical skills and competencies

- education, experience, training

- position determines salaries

6 Principles of Weber's Theory: Rules and Requirements

Rules are clearly defined and strictly enforced

- higher level of management are responsible for implementing

6 Principles of Weber's Theory: Impersonality

Relationships are professional, objective

- NO FAVOURTISM

6 Principles of Weber's Theory: Career Orientation

- achievement, experience --> promotions

- merit based achievements

- personality not a factor

Pros of Bureaucracy

Provides Systematic Framework for organizing, managing government institutions

- helps professionalize management and shape the managerial environment for many years

How is Bureaucracy Relevant or Seen in Today's Society

- still used in governments, schools, hospitals, large corporations

- promotes fairness and equity

Hierarchical authority still exists heavily in many organizations

- some things need rigid structure (govs, systems)

Criticisms of Bureacracy

- too rigid and slow to adapt

- can reduce creativity

"Red Tape" and excessive paperwork

Behavioural Management/Human Relations Movement era

1920-1950s

Stimulants for B. Management/Human Relations Movement

Bigger Organizations + Human Metter More

Focus of Behavioural M. + Human Relations

Focuses on Human side of workplace

- people seek social relationships and personal fulfillment

- people start to matter

Elton Mayo - Hawthorne Studies

1880-1949

- Australian Psychologist

- One of the first to realize human qualities and emotions

Historical Context of Hawthorne Studies

- early 20th Century

- rise of factory and scientific management (Taylorism)

- but harsh conditions, repetitive, worker dissatisfaction

- managers treated workers like machines

4 Main Hawthorne Studies

1. Illumination Studies

2. Relay Assembly Test Room Experiments

3. Experiments in Interviewing Workers

4. Bank Wire Room Experiment

4 Main Hawthorne Studies: Illumination Studies

Tested how lighting affects productivity

4 Main Hawthorne Studies: Illumination Studies Results

Productivity Increased Regardless of lightning changes, (bc they were being watched)

4 Main Hawthorne Studies: Relay Assembly Test Room Experiments

Study performed on 5 women

- given better working conditions, rest breaks

4 Main Hawthorne Studies: Relay Assembly Test Room Experiments Results

productivity rose

- researchers puzzled: assumed it would be distraction

4 Main Hawthorne Studies: Experiments in Interviewing Workers

Study involved interviewing workers to understand attitudes, opinions, and experiences of the workplace

4 Main Hawthorne Studies: Experiments in Interviewing Workers Results

Significant impact of employees attitudes and relationships to performance

- positive work environment

4 Main Hawthorne Studies: Bank Wire Room Experiment

explored how social dynamics and group norms influence worker productivity

4 Main Hawthorne Studies: Bank Wire Room Experiment Results

Study highlighted the importance of social interaction as workers were more responsive to their peer's expectations than to management incentives

Key Finding of the Hawthorne Studies + definition

The Hawthorne Effect

- people change behaviour when they know their being observed

Mayo's Hawthorne Studies Believes Worker Productivity is Strongly Influenced (3)

1. Social Interactions (Employee Well-being)

2. Sense of Belonging

3. Supervisor Attention (Hawthorne Effect)

Hawthorne Studies Believed Workers Are Motivated..

By more than just money

Where Should Hawthorne Studies be Implemented

- tech companies, remote workplaces

- physical and mental well-being, collaboration and managing

Hawthorne Studies: the shift from Scientific to H.R Approach

Shifted Management Style:

Control --> Collaboration

Output --> Morale

Criticisms of Hawthorne Studies - E. Mayo

- experiments lacked control groups

- focused on social factors ignoring pay and physical working conditions

- manipulated: improve morale just to boost output

- ignore individualism --> looks @ groups as a whole

Maslow's Hierarchy of Needs

1. Physiological Needs

2. Safety Needs

3. Love and Belonging

4. Esteem Needs

5. Self-Actualization

Douglas McGregor - Theory X & Y

(1906)

contributor to development of management and motivational theory

Development of McGregor's Theory X + Y

- ideas came from working in MIT (1950s)

- influenced by Maslow's Hierarchy of Needs

Theory X and Y- McGregor

two sets of assumptions about Human Nature and Behaviour that are related to the practice of management

Theory X

negative view of human nature

- people generally, naturally irresponsible for work, require close supervision

Theory X is applicable for what type of manager

Autocratic Style Managers

Theory X Workers Must..

be controlled and directed

Pros of Theory X

- help keep new or inexperienced on task + learn basics of job

- guarantees that staff will be minimally productive and not waste time

Cons of Theory X

- can lower creativity of staff, making them feel unmotivated to finish tasks with best ability

- does not build trust between employers and their employees

Characteristics of Applying Theory X

preplanned, detailed schedules, and steps to be executed

Theory X Role is..

for simplistic, less creative workplaces

- with low motivation = more supervision + control

Theory X Characteristics

- weekly quotas

- more regulations

- less flexibility

- preplanned, detailed schedules and steps to be executed

Theory Y

positive view of human nature

- people generally are hard-working, creative, and responsible for exercising self-control

Theory Y Applicable to..

laissez-faire style management (hands-off approach)

How does Theory Y Motivate Employees?

Through their intrinsic interests, relies one a persons desire to be self-directed and seek greater responsibility

Pros of Theory Y

- helps employees work together + positive work environment

- increased employee productivity + creativity

- increases quality of work + personal feel

- can improve employee time management

Cons of Theory Y

- lead to employees testing managerial limits

- lead to employees wasting company time + taking maximum time to complete tasks

- lines between employer vs employee may get blurred

Theory Y's Role

More relevant for complex jobs, creative spaces and for innovative departments

- suitable for situations where productivity is inconsistent or not guarantee

Theory Y is Suitable for...

- self-motivated, driven employees

- laissez-faire, collaborate approach

Theory Y Application Characteristics

- more free-time and resources to collaborate

- creative workspaces

- giving employees choices

Fredrick Herzberg - Two Factor Theory

(1923-2000)

Clinical Psychologist

- pioneered new management and motivational theory

Hygiene Factors - Two Factor, Herzberg

external elements of a workplace that can cause job dissatisfactions if absent or inadequate

Examples of Hygiene Factors

salary, supervision, job security, working conditions, company policies, relationships

Motivators = Two Factor, Herzberg

- internal factors, that when present, lead to job satisfaction and motivation

- intrinsic motivators

Examples of Motivators (2-factor)

achievement, recognition, responsibility, advancement, growth

How Herzberg's 2-Factor Theory was Inspired

- inspired by Maslow's Hierarchy

- developed to explain job satisfaction and employee motivation

Development of Herzberg's 2-factor theory

- "The Motivation to Work" (1959)

- "One for Time" (1987)

- Interviews a group of employees

- what made them satisfied, dissatisfied

- from there developed theory

Key Findings of Herzberg's 2-factor

showed that

- motivators: lead to job satisfaction + better performance

- hygiene prevent dissatisfaction, not really motivation