Management Theories and Hawthorne Studies

Introduction to Management

• Management is "the art of getting things done through the efforts of other people."
• Management principles involve planning, organizing, and controlling the operations of people, materials, machines, methods, money, and markets.
• This ensures direction and coordination of human efforts to achieve organizational goals.
• Organizations have goals that direct their energies and resources.
• Organizations utilize human and non-human resources (equipment, land, money) to achieve goals.
• Management is the force that unifies organizational resources.
• Management is a process of getting results through people.
• Management is needed whenever people work together in an organization.

Definition of Management

• Defining management is difficult due to its vast and extensive nature.
• Human behavior's unpredictability makes precise definitions hard.
• Management is a young, evolving discipline with dynamic concepts.
• Management is concerned with achieving objectives through conscious effort.

Management as a Science and an Art

• Management is a broad concept applicable in daily life.
• It's a mixture of science (systematic body of knowledge, observation and experimentation, cause-and-effect relationships) and art (practical application of knowledge and skills, attained through study, observation, and experience).

Management Functions (POSDC)

• Planning is defining a future course and deciding on the best course to reach goals
• Organizing involves arranging resources and relationships to support organizational activities
• Staffing involves putting people to appropriate jobs
• Directing involves guiding, motivating, and overseeing workers
• Controlling involves measuring results against objectives

Levels of Management in an Organization

• Top Management: sets objectives, designs organizational structure
• Middle Management: implements policies, communicates
• Lower Management: plans daily operations, provides supervision
• Each level has particular responsibilities and required skills

Management Levels and Managerial Skills

• Top Management: Conceptual skills are important
• Middle Management: Human skills are essential
• Lower Management: Technical skills are crucial

Define Manager and Role of a Manager

• A manager supervises employees within an organization.
• Managers usually operate in the middle levels of an organization, acting as bosses as well as having a boss.

Early Management

• Management has been practiced for thousands of years.
• Examples are the construction of the Egyptian pyramids.

Evolution of Management Thought

• Classical Approach: early management development beginning around the turn of the 20th century

The Classical Approach: Scientific Management

• Taylor's scientific management focused on worker productivity
• Key principles of scientific management include: 1) establishing the best way to do a job; 2) specialising jobs; 3). training and selection of workers, and 4). ensuring workers are rewarded for their performance
• Taylor's scientific management was later developed by others like Henry Fayol, who introduced 14 principles including division of labor, authority etc., and are still used today

Administrative Theory

• Fayol's administrative theory focused on the entire organization rather than individual workers
• Fayol developed 14 principles of management
• Some of these principles are specialization of labor, authority, discipline, unity of command, unity of direction, subordination of individual interest to general interest, remuneration, centralization, scalar chain, order, equity, stability of tenure of personnel, initiative, and esprit de corps

The Behavioral Approach or Motivational Theories

• Mayo's Hawthorne Studies showed the importance of social factors on work productivity
• Maslow's Hierarchy of Needs highlights the importance of needs satisfaction
• Herzberg's Two-Factor theory distinguishes between factors that cause dissatisfaction and those that lead to satisfaction

Contingency Approach

• This approach recognizes that there is no one best way to manage.
• Various management theories are grouped, under this approach such as Fiedlers' Contingency Theory, Situational Leadership Theory, Path-Goal Theory, and Decision-making Theory.

Systems Approach to Management

• Organizations are interconnected subsystems,
• They interact with their external environment.
• Organizations are sensitive to environmental changes
• Organizations have boundaries separating them from their environment

Meaning and Definition of Planning

• Planning is deciding on what to do, how to do it, when to do it, and who does it.
• It's a foresight process, based on facts and experience.
• It involves goal-setting. Planning is the process of looking into the future and determining strategies.
• Planning is an intellectual process relying on anticipation, judgment and imagination

Planning - Continuous, All-Pervasive Process

• Planning is a continuous process due to a changing business environment
• Planning is needed across all levels of management and all departments.
• Planning is an ongoing process that requires periodic evaluation and revisions
• Planning needs flexibility in a dynamic/changing environment

Advantages and Disadvantages of Planning

• Advantages: planning provides a blueprint; order and reasonableness; employee motivation
• Disadvantages: inflexibility, restricted freedom

Management by Objective (MBO)

• A results-oriented management system
• Used for setting organizational goals and dividing them amongst managers
• The MBO approach is based on goals and objectives.
• Improves employee involvement.

Definition of Organizing

• A process of integrating, coordinating, and mobilizing activities of the members of a group to achieve common goals.
• The process of assigning roles, responsibilities and tasks.

Principles of Organizing

• Principles of organizing are guiding statements for arranging an organization effectively

Types of Organizational Charts

• Types and examples of Organizational Charts are given (Vertical and Horizontal Charts)

Informal Organization

• Informal organizations are formed through the interactions of employees, based on relationships, attitudes, emotions, etc.
• These relationships cannot be shown on an organizational chart.

Meaning of Controlling

• Controlling involves comparing actual performance to set standards.
• It is a process of monitoring progress towards objectives.

Importance of Control

• Controlling is essential for keeping activities on track and ensuring efficient utilization of resources.
• Controlling facilitates adjustments to cope with circumstances.

Co-ordination

• Coordinates the efforts of various parts of an organization towards common goals.
• Inter-dependence amongst parts of the organization

Types of Coordination

• Internal Coordination
• External Coordination
• Vertical Coordination
• Horizontal Coordination

Leadership

• Leadership involves guiding, motivating, and directing employees towards the achievement of goals
• leadership styles: Authoritarian or autocratic; Participative or democratic; Delegated or free reign

Definition of Communication

• Communication is the interchange of thoughts and feelings to achieve understanding.
• Communication involves conveying a message through a specific medium

Types of Communication

• Oral
• Written
• Non-verbal

Communication Process

• Communication components: sender, encoding, message, media, decoding, receiver, feedback, response.
• Factors affecting communication: context, sender, message, medium, recipient

This quiz explores key concepts in management, focusing on the Hawthorne studies, Maslow's hierarchy of needs, and the importance of planning. Test your understanding of how these theories apply to employee productivity and organizational efficiency.