Principles of Management Chapter 2

Learning Outcomes

• Understand management as both a science with objective solutions and an art that involves personal experience.
• Familiarity with three classical management viewpoints: scientific, administrative, and bureaucratic management.
• Explanation of the behavioral science perspective on management.
• Insight into the quantitative perspective of management.
• Discussion of contemporary management views: systems and contingency.
• Awareness of current challenges in management.

Management: Science and Art

• Management is regarded as a science due to its reliance on specific best practices and factual problem-solving.
• Art encompasses the application of knowledge, experience, and social context in managerial decision-making.
• Effective management combines scientific principles and interpersonal skills.

Classical Management

• Represents the earliest formal management theories aimed at enhancing organizational efficiency.

Scientific Management

• Originated from Frederick Taylor’s principles aimed at improving worker productivity.

• Key concepts include:

  • Separation of planning and execution.
  • Functional foremanship for specialized tasks.
  • Important elements: scientific methods, standardization, and centralization.
  • The concept of bilateral mental revolution emphasizing mutual benefit.
  • Financial incentives to boost worker output.

• Emerson's 12 Principles of Efficiency highlight aspects like clear ideals, discipline, and standards of operation.

Administrative Management

• Focuses on managing the total organization with a holistic approach.
• Henri Fayol outlined 14 principles including:
  • Division of work and authority-responsibility balance.
  • Maintaining order, unity of command, and employee equity.
  • Promoting initiative and esprit de corps among employees.

Bureaucratic Management

• Concept developed by Max Weber, emphasizing the ideal organizational structure.
• Important elements include:
  • Established rules and procedures.
  • Defined chain of command and division of labor.
  • Merit-based selection and professional manager conduct.

Behavioral Management

• Centers on the importance of individual behaviors and personality in workplace dynamics.

Mayo’s Hawthorne Studies

• Demonstrated that social relationships and work environment profoundly affect productivity.
• Focus on informal organizations, group dynamics, and non-economic rewards.

Human Relations Movement

• Highlights the correlation between managers' concern for employee welfare and enhanced job satisfaction.
• Maslow’s Hierarchy of Needs outlines motivation driven by fulfilling needs in a specific order:
  • Physiological, Safety, Social, Ego/Esteem, and Self-Actualization.

McGregor's Theory X and Theory Y

• Theory X portrays employees as disliking work, while Theory Y assumes they find fulfillment in work and seek responsibility.
• Shifts in managerial attitudes from Theory X to Theory Y can significantly improve organizational performance.

Quantitative Management

• Utilizes quantitative methods such as:

Management Science

• Employs mathematical models and statistics to aid decision-making.
• Current applications include forecasting, stock modeling, and queuing theory.

Operations Management

• Focuses on transforming resources into goods/services, involving areas like inventory management and quality control.

Management Information Systems

• Facilitates information processing from various sources to support decision-making.

Contemporary Management Perspectives

Systems View

• Envisions organizations as integrated systems with interdependent parts.
• Key components: inputs, transformations, outputs, and feedback mechanisms.
• Distinction between open systems (which interact with the environment) and closed systems.
• Synergy enhances subsystem cooperation, while entropy signifies systematic decline.

Contingency View

• Rejects one-size-fits-all approaches to management; emphasizes the uniqueness of each organization.
• Managerial decisions depend on understanding specific internal and external contexts.

Contemporary Management Challenges

• Globalization impacts operational scope and strategy.
• Generational differences within the workforce pose distinct management styles.
• Ethical considerations and corporate social responsibility are increasingly important.
• Need for organizations to adapt as learning entities.
• Constant organizational change requires agile management.
• Technological advancements necessitate updated practices and frameworks.