Management Theories Overview

Study Notes

The classical approach to management theory focuses on efficiency and effectiveness in organizational processes.
There are four main classical theories: scientific management, bureaucracy, administrative management, and human relations.

Frederick Winslow Taylor is considered the "father" of scientific management.
Taylor's theory emphasizes using scientific methods to identify the "one best way" to perform a task.
Key elements of scientific management include:
- Scientific Selection: Placing the right person in the right job with the right tools and equipment.
- Standardized Method: Ensuring a consistent approach to performing the job.
- Economic Incentive: Providing a financial reward for achieving desired results.
Japanese management philosophy, Kaizen, embraces the concept of continuous improvement, similar to Taylor's principles.

Max Weber developed the theory of bureaucracy, outlining the characteristics of an ideal organizational type.
Weber's theory emphasizes rationality, predictability, impersonality, technical competence, and authoritarianism.

Division of labor: Tasks are divided and assigned to specialists.
Hierarchy: Reporting relationships structure the organization from top to bottom.
Selection: Technical qualifications are prioritized for hiring, not favoritism.
Career orientation: Managers are viewed as professionals, with dedicated career paths within the organization.
Formalization: Rules and procedures govern organizational processes and decision-making.
Impersonality: Employees are treated uniformly, regardless of personal attributes.

Henri Fayol developed the theory of administrative management, focusing on the management functions of planning, organizing, commanding, coordinating, and controlling.
Fayol identified 14 principles of management to guide effective leadership and organizational structure.

Elton Mayo contributed to the development of the human relations theory, emphasizing the importance of human factors and employee motivation in organizational performance.
The Hawthorne studies, conducted by Mayo, revealed that social factors and employee satisfaction play a significant role in productivity.

Advantages:*
Security of tenure for employees.
Social esteem linked to occupational status.
Regular salary and career development opportunities.
Protection from arbitrary dismissal.
Predictable relationships foster trust and camaraderie.
Disadvantages:*
Red tape: Excessive bureaucracy can hinder efficiency and responsiveness.
Inflexibility: Bureaucracies struggle to adapt to change, potentially leading to outdated solutions.
Ritualistic work routines: Focus on details can overshadow overarching objectives.
Passing the buck: Lack of accountability can hinder decision-making and problem-solving.
Resistance to new ideas: Conformity to established practices can stifle innovation.
Slow decision-making: Hierarchical structure can delay decision-making processes.
Lack of access to decision-makers: Junior staff may lack opportunities for direct communication with decision-makers.