Management Theories

Management Theories

1. Classical Management

   • People are rational
   • Scientific Management
     • One best way to do the job
     • Fredrick Taylor
       • The father of scientific management
       • Developed rules of motion, standardized work and proper working
       • Goal was to increase the productivity of people at work
     • The Gilbreths
       • Produced motion study
       • They reduced the number of motions used
   • Administrative Principles
     • Flow of organization through the organization
     • Henri Fayol
       • Believed that management could be taught
       • He formulated principles to guide management process
       • Identified what managers need to be successful
     • Mary Parker Follet
       • Believes people should work together and collaborate
       • Teamwork
   • Bureaucratic Organization
     • Rules, Procedure and division of labour
     • Max Weber
       • Invented Bureaucracy
       • Efficent form of organization

2. Behavioural Management

   • People are social and self-actualizing
   • The Hawthrone Studies
     • Inital study examined how economic incentitives and physical conditions affected worker output
     • Social and human concerns are keys to productivity
     • It had an impact on group atmosphere's
   • Masclow's Theory of Human Needs
     • Involved a pyramid consisting of self-actualization, self-esteem, belonging, safety and physiological
     • Deficient Principle: is a satisfied need that is not a motivator of behaviour
     • Progression Principle: is a need that becomes a motivator once the preceding lower-level need is satisfied
   • McGregor's Theory X and Theory Y
     • He argued that managers should devote more attention to people's social and self-actualizing needs at work
     • Theory X managers create situations where workers become ignorant
     • Theory Y managers create situations where workers respond with initiative and high performance
   • Argyris' Theory
     • Treat people like adults
     • Management practiced should increase task responsibilities, task variety and use participative decision making

3. Quantitative Management

   • People use math to solve managerial problems
   • Management Science
     • Uses mathematical techniques to solve and analyze problems
   • Qualitative Techniques
     • Use of economic decision criteria such as costs, revenues and return on investment
     • Mathematical Forecasting
       • Helps make future projections that are useful in the planning process
       • Ex: blueprints
     • Linear Programming
       • Used to calculate how best to distribute resources among competing uses
       • Ex: Supply and demand
     • Queing Theory
       • Helps distribute workstations to minimize customer waiting time and service cost
       • Ex: Customer service
     • Network Models
       • Breaks larger taskes into smaller components to allows for better analysis
       • Ex: Flow chart of divisions
     • Simulations
       • Creates models of problems so different solutions under various assumptions can be tested
       • Ex: Bridge designs

4. Modern Management

   • People are complex and variable
   • Systems Thinking
     • Interacting all aspects of the business with the environment
     • Transforming resources into outputs
   • Continguency Thinking
     • Understanding there is not one best way to manage
     • The answer to problems will be situational

5. Continuing Management

   • People live in a dynamic and ever-changing environment
   • Quality
     • Link between competitive advantage and ability to deliver quality goods and services to customers
   • 21st Century Leadership
     • Being able to attract highly motivated works and inspire them to do their best work
   • Global Awareness
     • Understanding there are successful management practices around the world as well
   • Learning Organization
     • Approach to business that focuses on continually inproving
     • Changes based on adapting to new circumstances