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Theories of Management
Transcript of Theories of Management
Total Quality Management (TQM)
Behavioural Theory of Management
Quantitative Approach to Management
Classical Theory of Management
Fayol's Administrative Principles
Follett's Groups and Cooperation
Frank and Lillian Gilbreth
Theory X and Theory Y
Argyris' Adult Personality Theory
Maslow's Hierarchy of Needs
This branch focuses on productivity and efficiency or workers and looks at the best processes that can get quality work done the fastest. It focuses on employee selection and training.
He is known as the grandfather of scientific management. Taylor proposed that all tasks be broken down to precise efficient procedures. Workers were taught how to move and how much rest time to take, and tools were specially developed for tasks. As a result of his research, workers at a steel plant were able to unload 47 tons of steel per day as opposed to 12 tons per day previously. His four principles were:
Every job has a science (and can therefore be improved)
Carefully select workers that will be good at each job
Train workers properly and give incentives
Support workers by streamlining their work and planning it for them
In 1910, Gantt developed a graphical timeline chart that could show the progress of tasks as they were completed. Following up on Taylor's theory, Gantt used his chart to track planned and completed work. Since his chart is based on time, instead of the traditional volume, weight and quantity, Gantt's chart is used for many management projects. Below is an example of a simple Gantt chart.
This branch focuses less on worker productivity and more on the organization as a whole. It focuses on managerial principles and how an entire organization operates.
Mary Parker Follett started to look at business from a more humanistic side. She wanted to incorporate values and ethics into business and managerial models. Her thought was that employees were people and not robots. She put forward the notion of cooperation - that employees should be somewhat involved in the decision making. She further noted that groups were a strength in business and that managers should organize groups that could cooperate together to integrate a common goal. Her theory from over 80 years ago can still be seen in today's managers.
This theory focuses on a manager's ability to promote acceptance of his orders/commands onto his employees. A manager enables workers to accept authority in the following ways:
Communications of the manager are consistent with the organizational goals
The employees feel that they can accomplish the orders
The employees are made to feel that their actions are consistent with the needs and desires of other employees
Developing standards for each job
Training employees and not allowing for self teaching
Develop cooperation between management and workers
Dividing work between management and workers in equal shares with each doing what is best suited to them
A system is a prescribed set of rules or procedures that are followed in order to create a specific outcome. Systems theory in business assumes that if you can perfect a system in one area, then it can be moved (or ported) to another area.
This is a management philosophy that demands a high level of commitment to the delivery of quality from everyone in the organization. Each department is committed to maintaining the utmost quality and value from suppliers, to manufacturing, to sales and customer service. The process used is a cycle of planning, doing, checking and acting.
The military started using this approach to solve problems in global warfare. Today, this view encourages managers to use mathematics,
statistics, and other quantitative
techniques to make management decisions.
Using queuing theory to calculate the minimum and maximum number of customer service representatives to use
Using mathematical models to maximize production output
Using statistics and probabilities to calculate how much rest time to grant employees
Progression Principle: As our needs are filled in one level, needs in the next level above become our new motivation for behaviour.
Deficit Principle: Once a need is filled, it is no longer a motivator of behaviour.
Once we reach self-actualization, the above two principles cease to operate.
Need to be led
Willing to Work
Capable of Self Control
Accepting of Responsibility
Imaginative and Creative
Capable of Self Direction
Managers should devote more time and effort to promoting employees' social and self actualization needs at work. Managers who hold either theory x or theory y assumptions about employees usually create "self fulfilling prophesies" where their employees confirm the manager's expectations.
McGregor argues that managers should always try to shift their expectations from theory x to theory y.
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Classical theory has is roots in the industrial revolution when managers were trying to figure out the best way to manage a process. It assumes that workers are rational and will choose the options available in order to achieve the most economic gain. There are two branches - administrative and scientific