Theoretical Approaches to Management

Theoretical Approaches to Management

• Management has existed for millennia, evident in projects like the Egyptian Pyramids and Great Wall of China.
• Modern management's origins include the division of labor, enhancing productivity as highlighted by Adam Smith.
• The Industrial Revolution transitioned manufacturing, leading to larger factories needing managers.

Classical Approach

• Emphasizes rationality and efficiency in organizations and workers.
• Consists of two main theories: Scientific Management and General Administrative Theory.

Scientific Management

• Developed by Taylor, Gilbreth, and Gantt.
• Aims to define the "one best way" for a task through scientific methods.
• Taylor's Pig Iron Experiment: Increased productivity by nearly four times through scientific job design, selection, training and motivation.
• Taylor’s Scientific Management Principles:
  • Replace rule-of-thumb methods with scientific methods.
  • Scientifically select, train, teach, and develop each worker.
  • Enthusiastically cooperate with the workers to ensure that all the work is done in accordance with the principles of the science that has been developed.
  • Divide the work and responsibility equally between management and workers. Management should do all work best suited for them.
• Gilbreths' Contributions: Improved efficiency through analyzing motions, utilizing micro-chronometers, and classifying therbligs (basic hand motions). Also studied bricklaying motions to reduce fatigue. Used motion pictures to study human motion for efficiency.
• Gantt Charts: Visual scheduling tools showing planned and actual output. Managers can assess progress against schedule, determine if tasks are ahead, behind, or on schedule.

General Administrative Theory

• Focuses on management practices and what managers do.
• Fayol's Contributions: Identified five management functions: planning, organizing, commanding, coordinating, and controlling. Developed 14 principles of management.
• Fayol's 14 Principles of Management:
  • Division of work
  • Authority
  • Discipline
  • Unity of command
  • Unity of direction
  • Subordination of individual interest to the general interest
  • Remuneration
  • Centralization
  • Scalar chain
  • Order
  • Equity
  • Stability of tenure of personnel
  • Initiative
  • Esprit de corps
• Weber's Contributions: Defined bureaucracy as an ideal organizational structure characterized by division of labor, hierarchy, rules, and impersonal relationships.

Behavioral Approach

• Focuses on individual attitudes, behaviors, and group processes in the workplace.

• Early Advocates:

  • Münsterberg: Industrial psychology for improving efficiency considering worker emotions, minds and motives.
  • Mary Parker Follett: Importance of human interaction; recognized worker participation and collective goals.
  • Chester Barnard: Formal and informal organizational structures and the "acceptance theory of authority".

• Hawthorne Studies (Mayo, Western Electric): Productivity increased due to attention rather than physical factors. Led to understanding the importance of social norms and group standards in worker behaviour.

  • Hawthorne Effect: Worker attitude impacts performance.

• McGregor's Theory X and Theory Y:

  • Theory X: Negative assumptions about workers' laziness.
  • Theory Y: Positive assumptions about workers' initiative and commitment.

Quantitative Approach

• Uses quantitative techniques (statistics, models, etc.) to improve decision-making in organizations.
• Originated from military applications during WWII.
• Applied in areas like resource allocation, inventory levels, and quality management.

Contemporary Approaches

• Systems Approach: Organizations are open systems interacting with their environment. Decisions affect other parts of the organization.
• Contingency Approach: Management approaches depend on specific organizational and environmental factors (e.g., size, uncertainty).

Summary of Key Figures

• Taylor: Scientific selection of workers and analysis of tasks.
• Gilbreth: Motion studies and efficiency.
• Gantt: Gantt charts and scheduling.
• Fayol: Management functions and principles.
• Weber: Bureaucracy.
• Münsterberg: Industrial psychology.
• Follett: Human side of organizations, worker participation.
• Barnard: Acceptance of authority and informal organizations.
• Hawthorne/Mayo: Social norms and worker attitudes.
• McGregor: Theory X and Theory Y.

Explore the historical and theoretical foundations of management, from its ancient practices to the principles of scientific management. This quiz delves into classical approaches and key figures like Taylor and Smith, highlighting their contributions to modern management techniques.