TOJ VIMARU 2016 TYPES OF MANAGEMENT (1)

TYPES OF
APPROACHES
TO MANAGEMENT


Major Approaches to Management


The origins of mechanistic organization
• Instruments created to achieve other ends
– Greek: organon = tool or instrument
– Importance rose along with the industrial revolution

• “Mechanized” army
– Frederick the Great, ruled from 1740-86 – introduced rank and
uniform
– Operating through means of standardized parts

• Max Weber early twentieth century
– First definition of bureaucracy as a form of organization (precision,
speed, clarity, etc.)


Major Approaches to Management


Classical management approaches


Frederick Taylor
 Scientific Management






Every job a ‘science’
Pick workers with right abilities
Carefully train and provide incentives
Support worker by planning work and removing obstacles

Says “Management is a science. There is one best way and one best person to
do the task. I love efficiency and I love to study people at work. Management
should be an academic discipline.”
His work influenced:
Bringing psychology into the workplace
Gantt Chart and planning
Harvard University offering management Degrees

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Scientific management (cont’d)
• Time Studies
–

workers timed with stopwatches to identify “appropriate” time for specific tasks

• Motion Studies
–

workers observed to identify “one best way” of completing a task

• Theorized three basic categories of worker motivation:
1. “The Carrot”: Financial rewards for workers who perform well
2. “The Stick”: Originally tried fining workers, that failed, simply reassign them
3. “Factory Ethos”: Understanding between laborers and managers to work in harmony.


Organizational
Theory

Henry Ford
– Student of Scientific Management

Model-T Production (Highland Park:1910)

Minutes of Effort to Assemble
Late Craft

Assy Line

Fall,1913

Spring 1914

% Reduced

Engine

594

226

62

Axle

150

26.5

83

Complete
Vehicle

750

93

88

Pre-1912

20-30 per day

1913

100 per day

1914

1.000 per day

1915

3.000 per day


Taylor’s Scientific Management Principles
1. Develop a science for each element of an individual’s work,
which will replace the old rule-of-thumb method.
2. Scientifically select and then train, teach, and develop the worker.
3. Heartily cooperate with the workers so as to ensure that all work
is done in accordance with the principles of the science that has
been developed.
4. Divide work and responsibility almost equally between
management and workers. Management takes over all work for
which it is better fitted than the workers.


Henri Fayol
 Management functions





Planning
Organizing

Leading
Controlling


Fayol’s 14 Principles of Management
1. Division of work

7.

Remuneration

2. Authority

8.

Centralization

3. Discipline

9.

Scalable chain

4. Unity of command

10. Order

5. Unity of direction

11. Equity

6. Subordination of
individual interests
to the general
interest

12. Stability of tenure
of personnel
13. Initiative
14. Esprit de corps


Max Weber
 Bureaucracy!

 Developed a theory of
authority based on an ideal
type of organization
(bureaucracy)


Emphasized rationality,
predictability, impersonality,
technical competence, and
authoritarianism


Weber’s Bureaucracy

Advantages of bureaucracy






Clear division of labor
Clear hierarchy of authority
Formal rules and procedures
Impersonality
Careers based on merit

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Disadvantages of bureaucracy



•
•

Slowness in handling problems
Rigidity in the face of shifting needs
Resistance to change
Employee apathy
Ineffective form of organization
– Inability to achieve goals & adapt
• Red tape – excessive paperwork

– Preoccupation with the process itself
• Social dysfunctions
– Depersonalization
– Erosion of individual freedom.

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Major Approaches to Management


Follett’s organizations as communities


Hawthorne studies
 Special attention and participative leadership
increased productivity
 Workers also slowed production to keep with
group norm
 Kicked off human relations movement in
1950’s


McGregor’s Theory X and Theory Y
 McGregor’s Theory X and Theory Y
- work sheet – self test


McGregor’s Theory X


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



Dislike work
Lack ambition
Are irresponsible
Resist change
Prefer to be led

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McGregor’s Theory Y
 Willing to work
 Capable of self-control
 Willing to accept
responsibility
 Imaginative and creative
 Capable of self-direction

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McGregor’s Theory X and Theory Y
 Self-fulfilling prophecies
 Theory X managers create situations where
workers become dependent and reluctant
 Theory Y managers create situations where

workers respond with initiative and high
performance


Argyris
 Classical management principles and
practices inhibit worker maturation and are
inconsistent with the mature adult personality


Argyris
 Management practices should accommodate
the mature personality by:
 Increasing task responsibility
 Increasing task variety
 Using participative
decision making


Maslow’s Need Hierarchy Theory
• According to American psychologist Abraham Maslow, people are
motivated by unsatisfied needs.
• According to Maslow a good manager will identify which levels of need
are active for the employee to get motivated