Theoretical Approaches to Management

Theoretical Approaches to Management

• Management has existed for thousands of years, evidenced by structures like the Egyptian Pyramids and Great Wall of China.
• Modern management emerged with the Industrial Revolution, driven by the division of labor and machine power.

Classical Approach

• Classical approach emphasizes organizational efficiency and rationality.
• Two main theories: Scientific Management and General Administrative Theory.

Scientific Management

• Focuses on using scientific methods to optimize work processes.
• Key figures: Frederick Taylor, Frank and Lillian Gilbreth, Henry Gantt.
• Taylor's Principles:
  • Develop a science for each element of a person's work.
  • Scientifically select, train, teach, and develop workers.
  • Heartly cooperate with workers to ensure work conforms to principles.
  • Divide work and responsibility between managers and workers.
• Taylor's Pig Iron Experiment:
  • Scientific analysis increased worker output by almost 4 times.
  • Factors included: right worker, tools, proper instructions, incentives.
• Gilbreths' Contributions:
  • Used motion pictures to study worker movements to eliminate waste.
  • Bricklaying experiments improved productivity and reduced fatigue by eliminating unnecessary motions.
  • Developed therbligs (hand motions classification).
  • Micro-chronometer recorded motions and time.
• Gantt Charts:
  • Visual schedule illustrating planned and actual output over time.
  • Essential for tracking progress against timelines.

General Administrative Theory

• Focuses on management practices and functions.
• Fayol's contributions:
  • Identified five management functions: planning, organizing, commanding, coordinating, and controlling.
  • Developed fourteen principles of management.
    • Division of work
    • Authority and Discipline
    • Unity of Command and Direction
    • Subordination of individual interest to general interest
    • Remuneration
    • Centralization
    • Scalar chain
    • Order
    • Equity
    • Stability of tenure of personnel
    • Initiative
    • Esprit de corps
• Weber's contribution:
  • Bureaucracy: an ideal organizational structure with division of labor, hierarchy, rules, and impersonal relationships.

Behavioral Approach

• Focuses on individual behavior and group dynamics in the workplace.
• Key figures: Munsterberg, Mary Parker Follett, Chester Barnard, Elton Mayo, Douglas McGregor.
• Munsterberg:
  • Founder of industrial psychology, focused on improving worker efficiency through scientific study of people at work.
  • Important in employee selection, training, and motivation.
• Follett:
  • Emphasized worker participation and shared goals.
  • Argued for worker involvement in work development, recognizing worker knowledge.
• Barnard:
  • Viewed organizations as systems of human cooperation.
  • Highlighted the importance of informal organizations (social groups), and acceptance of authority.
• Hawthorn Studies and Mayo:
  • Studies conducted to examine the effects of factors (lighting, work hours, wages.
  • Discovered that observation itself affects worker behavior – Hawthorne effect.
  • Social norms and group standards are crucial in determining individual work behavior.
• McGregor's Theory X and Theory Y:
  • Theory X assumes workers are lazy and avoid responsibility, requiring close supervision.
  • Theory Y assumes workers are motivated and want to contribute, encouraging initiative.

Quantitative Approach

• Employs mathematical and statistical methods for decision-making.
• Techniques used in resource allocation, inventory management, quality control, planning, and control.

Contemporary Approaches

• Systems Approach: Views organizations as open systems interacting with their environment.
• Contingency Approach: Recognizes that effective management depends on specific circumstances (e.g., size, environmental uncertainty).