THEORIES THEORIES OF OF

MANAGEMENTMANAGEMENT

A. Scientific TheoryA. Scientific Theory

Also called Taylorism, the Also called Taylorism, the Taylor system, or the Classical Taylor system, or the Classical Perspective) Its a theory of Perspective) Its a theory of management that analyzes and management that analyzes and synthesizes workflow synthesizes workflow processes, improving labor processes, improving labor productivity.productivity.

General ApproachGeneral Approach

Develop a standard method for Develop a standard method for performing each job performing each job

Select workers with appropriate Select workers with appropriate abilities for each job abilities for each job

Train workers in the standard Train workers in the standard method previously developed method previously developed

Support workers by planning their Support workers by planning their work and eliminating interruptions. work and eliminating interruptions.

Provide wage incentives to workers Provide wage incentives to workers for increased output for increased output

ContributionsContributions

Scientific approach to Scientific approach to business management and business management and process improvement process improvement

Importance of compensation Importance of compensation for performance for performance

Began the careful study of Began the careful study of tasks and jobs tasks and jobs

Importance of selection criteria Importance of selection criteria

ElementsElements Labor is defined and Labor is defined and

authority/responsibility is authority/responsibility is legitimised/official legitimised/official

Positions placed in hierarchy and under Positions placed in hierarchy and under authority of higher level authority of higher level

Selection is based upon technical Selection is based upon technical competence, training or experience competence, training or experience

Actions and decisions are recorded to Actions and decisions are recorded to allow continuity and memory allow continuity and memory

Management is different from ownership Management is different from ownership of the organization of the organization

Managers follow rules/procedures to Managers follow rules/procedures to enable reliable/predictable behaviour enable reliable/predictable behaviour

Frederick Winslow TaylorFrederick Winslow Taylor

Widely known as Widely known as F. W. TaylorF. W. Taylor, was an , was an American mechanical engineer who sought American mechanical engineer who sought to improve industrial efficiency. Taylor is to improve industrial efficiency. Taylor is regarded as the father of scientific regarded as the father of scientific management, and was one of the first management, and was one of the first management consultants. He was one of management consultants. He was one of the intellectual leaders of the Efficiency the intellectual leaders of the Efficiency Movement and his ideas, broadly Movement and his ideas, broadly conceived, were highly influential in the conceived, were highly influential in the Progressive Era.Progressive Era.

B. Bureaucratic TheoryB. Bureaucratic Theory

Type of Management ruled by Type of Management ruled by bureaucracy - is the structure and set bureaucracy - is the structure and set of regulations in place to control of regulations in place to control activity, usually in large organizations & activity, usually in large organizations & government. As opposed to adhocracy, government. As opposed to adhocracy, it is represented by standardized it is represented by standardized procedure (rule - following) that procedure (rule - following) that dictates the execution of most or all dictates the execution of most or all processes within the body, formal processes within the body, formal division of powers, hierarchy, and division of powers, hierarchy, and relationships. In practice the relationships. In practice the interpretation and execution of policy interpretation and execution of policy can lead to informal influence.can lead to informal influence.

Characteristics of BureaucracyCharacteristics of Bureaucracy

FormalityFormality A climate of rules and conventionalityA climate of rules and conventionality Division of laborDivision of labor SpecializationSpecialization Written specificationsWritten specifications Memoranda and minutesMemoranda and minutes CentralizationCentralization ControlsControls Emphasis on a high level of efficiency Emphasis on a high level of efficiency

and productionand production

Max WeberMax Weber

was one of the most profoundly was one of the most profoundly influential thinkers of the twentieth influential thinkers of the twentieth century. Born in Germany, Weber century. Born in Germany, Weber became a lawyer, politician, scholar, became a lawyer, politician, scholar, political economist, and sociologist. political economist, and sociologist.

C. Human Relation TheoryC. Human Relation Theory

It refers to the integration of It refers to the integration of people to work productively and people to work productively and cooperatively and with economic, cooperatively and with economic, psychological and social psychological and social satisfaction. satisfaction.

"The hallmark of human-relation "The hallmark of human-relation theories is the primacy given to theories is the primacy given to organizations as human organizations as human cooperative systems rather than cooperative systems rather than mechanical contraptions."mechanical contraptions."

Six Functions of ManagementSix Functions of Management- Henry Fayol -- Henry Fayol -

planning planning organizing organizing leading leading coordinating coordinating controlling controlling staffing staffing

Proponents:Proponents:

Mary Parker Follett (1868–1933), who wrote on Mary Parker Follett (1868–1933), who wrote on the topic in the early twentieth century, defined the topic in the early twentieth century, defined management as "the art of getting things done management as "the art of getting things done through people".One can also think of through people".One can also think of management functionally, as the action of management functionally, as the action of measuring a quantity on a regular basis and of measuring a quantity on a regular basis and of adjusting some initial plan; or as the actions adjusting some initial plan; or as the actions taken to reach one's intended goal.taken to reach one's intended goal.

George Elton Mayo (December 26, 1880 - George Elton Mayo (December 26, 1880 - September 7, 1949) was an Australian September 7, 1949) was an Australian psychologist, sociologist and organization psychologist, sociologist and organization theorist.theorist.

Fritz Jules Roethlisberger (1898 – 1974) was a Fritz Jules Roethlisberger (1898 – 1974) was a social scientist and management theorist.social scientist and management theorist.

D. Theory XD. Theory X

Underlying the Theory X approach to Underlying the Theory X approach to management are three assumptions management are three assumptions about human nature:about human nature:

Most people have an innate dislike for work Most people have an innate dislike for work and will avoid it if they can.and will avoid it if they can.

Most people must be “coerced, controlled, Most people must be “coerced, controlled, directed, threatened with punishment” to get directed, threatened with punishment” to get them to work hard enough to satisfy the them to work hard enough to satisfy the organization’s goals.organization’s goals.

Most people prefer “to be directed,” wish “to Most people prefer “to be directed,” wish “to avoid responsibility,” have “relatively little avoid responsibility,” have “relatively little ambition,” and want “security above all.”ambition,” and want “security above all.”

E. Theory YE. Theory YAssumes that:Assumes that:

““The expenditure of physical and mental effort in The expenditure of physical and mental effort in work is as natural as play or rest.” Most people do work is as natural as play or rest.” Most people do not have an innate dislikefor work. Indeed, work not have an innate dislikefor work. Indeed, work may be a “source of satisfaction.”may be a “source of satisfaction.”

““External control and the threat of punishment are External control and the threat of punishment are not the only means for bringing about effort toward not the only means for bringing about effort toward organizational objectives.” Most people will display organizational objectives.” Most people will display self-discipline in working for goals for which they are self-discipline in working for goals for which they are committed.committed.

““Commitment is a function of the rewards Commitment is a function of the rewards associated with their achievement.” If self-associated with their achievement.” If self-actualization needs can be satisfied through work, actualization needs can be satisfied through work, employees will be highly motivated.employees will be highly motivated.

Most people, under proper conditions, are capable Most people, under proper conditions, are capable not only of accepting responsibility but of seeking it.not only of accepting responsibility but of seeking it.

““The capacity to exercise a relatively high degree of The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution imagination, ingenuity, and creativity in the solution of organizational problem is widely distributed to the of organizational problem is widely distributed to the population.”population.”

““Under the condition of modern industrial life, the Under the condition of modern industrial life, the intellectual potentialities of the average human are intellectual potentialities of the average human are only partially utilized.”only partially utilized.”

Proponent:Proponent:

Douglas Mcgregor (1906 – Douglas Mcgregor (1906 – 1964) was a Management 1964) was a Management professor at the MIT Sloan professor at the MIT Sloan School of Management and School of Management and president of Antioch College president of Antioch College from 1948 to 1954. from 1948 to 1954.

F. Theory MF. Theory M

The Theory M style of leadership is one The Theory M style of leadership is one that recognizes that it is necessary to that recognizes that it is necessary to employ a variety of tactics for varying employ a variety of tactics for varying management situations. This type management situations. This type manager / leader is confident in his manager / leader is confident in his leadership abilities and understands leadership abilities and understands both the scientific and artistic sides of both the scientific and artistic sides of management. This style recognizes the management. This style recognizes the absolute need for power and the fact absolute need for power and the fact that it consists of separate components. that it consists of separate components. The selection of the right type of power, The selection of the right type of power, or combination of power, for the proper or combination of power, for the proper situation is critical.situation is critical.

Proponent:Proponent:

Niccolò Machiavelli (1469–Niccolò Machiavelli (1469–1527) was born in Florence as 1527) was born in Florence as a lawyer’s son. a lawyer’s son.

G. Theory ZG. Theory Z

So-called "Japanese So-called "Japanese Management" style popularized Management" style popularized during the Asian economic boom during the Asian economic boom of the 1980s. Theory Z focused on of the 1980s. Theory Z focused on increasing employee loyalty to the increasing employee loyalty to the company by providing a job for life company by providing a job for life with a strong focus on the well-with a strong focus on the well-being of the employee, both on being of the employee, both on and off the job. This management and off the job. This management tends to promote stable tends to promote stable employment, high productivity, employment, high productivity, and high employee morale and and high employee morale and satisfaction.satisfaction.

Characteristics of the Theory ZCharacteristics of the Theory Z

Long-term employment and job Long-term employment and job security security

Collective responsibility Collective responsibility Implicit, informal control with Implicit, informal control with

explicit, formalized measures explicit, formalized measures Collective decision-making Collective decision-making Slow evaluation and promotion Slow evaluation and promotion Moderately specialized careers Moderately specialized careers Concern for a total person, Concern for a total person,

including their family including their family

Proponent:Proponent:

William G. Ouchi (born 1943) is William G. Ouchi (born 1943) is an American professor and an American professor and author in the field of business author in the field of business management.management.

H. TQM TheoryH. TQM Theory

Total Quality Management (TQM) Total Quality Management (TQM) is a business management is a business management strategy aimed at embedding strategy aimed at embedding awareness of quality in all awareness of quality in all organizational processes. TQM organizational processes. TQM has been widely used in has been widely used in manufacturing, education, call manufacturing, education, call centers, government, and service centers, government, and service industries, as well as NASA space industries, as well as NASA space and science programs.and science programs.

TQM is composed of TQM is composed of three paradigms:three paradigms:

Total: Involving the entire organization, Total: Involving the entire organization, supply chain, and/or product life cyclesupply chain, and/or product life cycle

Quality: With its usual definitions, with all Quality: With its usual definitions, with all

its complexities its complexities

Management: The system of managing Management: The system of managing with steps like Plan, Organize,Control, with steps like Plan, Organize,Control, Lead, Staff, provisioning and organizing Lead, Staff, provisioning and organizing

In Japan, TQM comprises four In Japan, TQM comprises four process steps, namely:process steps, namely:

Kaizen – Focuses on "Continuous Kaizen – Focuses on "Continuous Process Improvement", to make Process Improvement", to make processes visible, repeatable and processes visible, repeatable and measurable. measurable.

Atarimae Hinshitsu – The idea that Atarimae Hinshitsu – The idea that "things will work as they are supposed "things will work as they are supposed to" (for example, a pen will write). to" (for example, a pen will write).

Kansei – Examining the way the user Kansei – Examining the way the user applies the product leads to applies the product leads to improvement in the product itself. improvement in the product itself.

Miryokuteki Hinshitsu – The idea that Miryokuteki Hinshitsu – The idea that "things should have an aesthetic "things should have an aesthetic quality" (for example, a pen will write in quality" (for example, a pen will write in a way that is pleasing to the writer).a way that is pleasing to the writer).

Proponent:Proponent:

William Edward Deming (October 14, 1900 William Edward Deming (October 14, 1900 – December 20, 1993) was an American – December 20, 1993) was an American statistician, professor, author, lecturer, and statistician, professor, author, lecturer, and consultant. Deming is widely credited with consultant. Deming is widely credited with improving production in the United States improving production in the United States during World War II, although he is perhaps during World War II, although he is perhaps best known for his work in Japan. There, best known for his work in Japan. There, from 1950 onward he taught top from 1950 onward he taught top management how to improve design (and management how to improve design (and thus service), product quality, testing and thus service), product quality, testing and sales (the last through global markets) sales (the last through global markets) through various methods, including the through various methods, including the application of statistical methods.application of statistical methods.

5S + 1 Activities5S + 1 Activities

SEIRI – SORT – SURIINSEIRI – SORT – SURIIN Clear out. Sort out unnecessary items and Clear out. Sort out unnecessary items and

discard/remove from work areas.discard/remove from work areas.

SEITON - SYSTEMATIZE – SINUPINSEITON - SYSTEMATIZE – SINUPIN A place for everything and everything in it’s place.A place for everything and everything in it’s place.

SEISO – SWEEP – SIMUTIN ANG DUMISEISO – SWEEP – SIMUTIN ANG DUMI Sweep out all dirt, trash, waste, etc. to keep work Sweep out all dirt, trash, waste, etc. to keep work

area clean.area clean.

SEIKETSU – SANITIZE – SIGURUHIN SEIKETSU – SANITIZE – SIGURUHIN ANG KALIGTASANANG KALIGTASAN

Hygienic Surroundings. Sanitize work Hygienic Surroundings. Sanitize work area and surroundings to maintain area and surroundings to maintain health of team members.health of team members.

SHITSUKE – SELF-DISCIPLINE – SARILING KUSASHITSUKE – SELF-DISCIPLINE – SARILING KUSA Self-discipline of team members in performing the Self-discipline of team members in performing the

above 4S+1.above 4S+1.

SHIKKARI – SUSTAIN – SIKAPING MAPANATILI SHIKKARI – SUSTAIN – SIKAPING MAPANATILI ANG 5SANG 5S

Steadily or persistently sustain the 5S activities. Do Steadily or persistently sustain the 5S activities. Do not stop, Continue in order to achieve good results.not stop, Continue in order to achieve good results.

I. Management By ObjectiveI. Management By ObjectiveManagers are urged to give specific goals Managers are urged to give specific goals and objectives and then measure whether and objectives and then measure whether workers achieved those. workers achieved those.

Example of an objective:Example of an objective:

The vice-president will write three The vice-president will write three funded proposals each year.funded proposals each year.

The president will obtain three The president will obtain three commercial contracts for consulting commercial contracts for consulting services.services.

The research administrator will insure The research administrator will insure that time sheets are completed and that time sheets are completed and forwarded to the accountant and forwarded to the accountant and project director in time for funds to be project director in time for funds to be drawn down for payroll (three days in drawn down for payroll (three days in advance of payday). advance of payday).