Theoretical Approaches to Management

Theoretical Approaches to Management

• Management has existed for centuries, evidenced by projects like the Egyptian Pyramids and the Great Wall of China.
• Modern management's origins include the division of labor (increasing productivity, as argued by Adam Smith), and the Industrial Revolution (new manufacturing processes and increased demand for managers).

Classical Approach

• Focuses on maximizing organizational and worker efficiency, emphasizing rationality.
• Two key theories: Scientific Management and General Administrative Theory.

Scientific Management

• Developed by Taylor, Gilbreth, and Gantt, focusing on using scientific methods to improve work efficiency.
• Taylor's Scientific Management:
  • Established "one best way" for jobs.
  • Famous pig iron experiment quadrupled worker output by selecting the right workers, tools, and incentives.
  • Key principles:
    • Develop a science for each element of a worker's job, replacing old methods.
    • Scientifically select, train, and develop workers.
    • Establish cordial cooperation between workers and managers.
    • Divide work and responsibility equally between management and workers.
• Gilbreth's Contributions:
  • Used motion pictures to study hand-and-body motions to reduce waste and fatigue.
  • Bricklaying experiments demonstrated the impact of reduced motions on productivity.
  • Invented the micro-chronometer to measure worker motion and time
  • Developed therbligs, a classification scheme for basic hand motions.
• Gantt's Contributions:
  • Developed Gantt charts, visual scheduling tools showing planned and actual output, allowing managers to track progress.

General Administrative Theory

• Focuses on what managers do and what constitutes good management practices.
• Fayol's Contributions:
  • Identified five management functions: planning, organizing, commanding, coordinating, and controlling.
  • Developed 14 principles of management, fundamental rules applicable across organizations. - Examples: Division of work, authority, discipline, unity of command, unity of direction, subordination of individual interests to general interest, remuneration, centralization, scalar chain, order, equity, stability of tenure, initiative, esprit de corps.
• Weber's Contributions:
  • Developed the concept of bureaucracy, emphasizing specialization, hierarchy, rules, and impersonal relations as key organizational characteristics.

Behavioral Approach

• Emphasizes individual attitudes, behaviors, and group processes in the workplace.
• Early Advocates:
  • Münsterberg: Pioneer of industrial psychology, studied worker motivation and selection.
  • Follett: Emphasized worker participation and shared goals.
  • Chester Barnard: Viewed organizations as systems, emphasizing the informal organization and acceptance theory of authority.
• Hawthorne Studies and Mayo:
  • Studies examined the effects of factors like lighting and wages on worker productivity.
  • Revealed the "Hawthorne effect," where workers' attitudes toward managers affect productivity.
  • Highlighted the importance of social norms and group standards in individual behavior.
• McGregor's Theory X and Theory Y:
  • Theory X: Negative assumptions about workers' laziness and avoidance of responsibility.
  • Theory Y: Positive assumptions about workers' engagement in their job and willingness to achieve goals.

Quantitative Approach

• Applies quantitative techniques (statistics, models) to improve decision-making in organizations.
• Used in areas like resource allocation and inventory management.

Contemporary Approaches

• Systems Approach: Views organizations as open systems interacting with their environment, with interdependent components.
• Contingency Approach: Recognizes that different organizations and situations require different management approaches. Contingency variables include size, environmental uncertainty, and individual differences.