Management Theories PDF

Hints about BY PROF. MONA SAAD PROF AMR H. ALI  Also known as transactional theories, focus on the role of supervision, organization, and group performance. These theories base leadership on a system of rewards and punishments. Managerial theories are often used in business; when emp...

Hints about BY PROF. MONA SAAD PROF AMR H. ALI  Also known as transactional theories, focus on the role of supervision, organization, and group performance. These theories base leadership on a system of rewards and punishments. Managerial theories are often used in business; when employees are successful, they are rewarded and when they fail, they are reprimanded or punished.  Management theories are concepts surrounding recommended management strategies, which may include tools such as frameworks and guidelines that can be implemented in modern organizations.  Generally, professionals will not rely solely on one management theory alone, but instead, introduce several concepts from different management theories that best suit their workforce and company culture. 1  It is a method of improving efficiency in the workforce.  As its name implies, this management theory uses scientific methods to assess work processes.  It consists of three steps: observation, experimentation, and analysis.  In science, this could mean observing the effects of a treatment, experimenting with a different treatment, and analyzing the results.  Similarly, managers use scientific management theory to observe their workplaces, test different methods of completing tasks, and analyze the effect of the changes. 2 The four principles are. 1.Choose methods based on science: Use the scientific method to determine the most efficient way to complete a task. Focus on increasing productivity and profits. 2.Assign workers to tasks based on their natural skillset: Get to know your workers, discover what they’re good at, and place them where their skills will be the most useful. 3.Monitor your workers’ performance: Observe what your workers are doing while they are on the clock so that you can quickly address any problems. If some workers are confused or unproductive, it is up to their managers to step in and fix the issue. 4.Divide workloads appropriately between workers and managers: Make sure that managers understand how to plan and train workers and that workers understand how to implement those plans. 1. To achieve higher production and acceleration in the rate of productivity by the use of standardized tools, equipment’s and methods. 2. Betterment in the quality of the products by research, quality control and effective inspection. 3. Decrease in the cost of production by systematic planning, regulation and cost control techniques. 4. Avoidance of wastage in the use of resources, time and method of production. 5. Placement of the right person on the right job through scientific selection and training. 6. Setting-up a sound system of wage payment so as to attain maximum efficiency. 7. Ensuring a regular supply of goods to the consumers at reasonable prices. “SELF STUDY” TECHNIQUES & CRITICISM 3  Administrative management theory attempts to find a rational way to design an organization as a whole.  The theory generally calls for a formalized administrative structure, a clear division of labor, and delegation of power and authority to administrators relevant to their areas of responsibilities.  Managing an organization or business is a complex and challenging job.  For companies to succeed, it's often essential for managers to implement specific strategies that help ensure effective administration and suit the company's operations or strategies. Provides leadership, direction, training, and management for operations of the department, division, college, institute, campus, or system. Sets strategic direction for the unit/department. Serves in an advisory role to senior-level leadership. Provides expertise and analysis for strategic and long-range planning. Develops, initiates, and implements operational plans. Translates strategic plans into operational plans. Provides interpretation of rules and regulations and is responsible for ensuring compliance.  Assesses risk and makes determinations on assumption of risk. 4  Sets and develops processes, procedures, initiatives, and identifies alternative methods to accomplish goals while maintaining compliance. Serves as a liaison with federal, state, and local officials, and is responsible for high-level reporting to internal and external stakeholders. Anticipates, identifies, researches, and resolves complex problems. Establishes and implements future direction. Gains support when working with internal and external constituents to accomplish goals. Partners with senior leadership to develop new programs or services upon identification of challenges. Coaches and mentors staff and supervises a team.  Bureaucratic theory stresses that organizations are formal, rational  Specialization: A bureaucratic organization provides the advantages systems with well-defined rules and procedures, defined by of specialization because every member is assigned a specialized specialization, hierarchy, well-trained employees, managerial task to perform. dedication, and the impartiality of management.  Structure: A structure of form is created by specifying the duties  It should be characterized by impersonality. This means that and responsibilities and reporting relationships within a command decisions should be made based on objective criteria rather than on hierarchy. Structure sets the pace and framework for personal relationships or preferences. the functioning of the organization.  This ensures that everyone is treated fairly. Additionally,  Rationality: A measure of objectivity is ensured by prescribing in management must follow the established rules and keep private advance the criteria far decision making in routine situations. businesses separate from their personal views.  Predictability: The rules, regulations, specialization, structure and  If management does not follow the rules, it sets a precedent for training import predictability and thereby ensure stability in the others to do the same, which can quickly lead to chaos. organization. Conformity to rules and roles in the structural framework bring about order to cope with complexity.  If management is not impartial, it can lead to corruption and nepotism. For example, if a manager were to award a contract to a  Democracy: Emphasis on qualifications and technical competence friend or relative rather than the most qualified bidder, it would not make the organization more democratic. Officials are guided by the only be unfair, but it would also waste the organization’s resources, prescribed rules, policies and practices rather than by patronage or such as funding and mentorship. other privileged treatment. 5  Rigidity: Rules and regulations in a bureaucracy are often rigid and inflexible. Rigid compliance with rules and  Paperwork: Bureaucracy involves excessive paperwork as regulations discourages initiative and creativity. It may also every decision must be put into writing. All documents have to be maintained in their draft and original forms. This leads provide the cover to avoid responsibility for failures. to great wastage of time, stationery and space.  Goal Displacement: Rules framed to achieve organizational  Empire Building: People in bureaucracy tend to use their objectives at each level become an end to themselves. When positions and resources to perpetuate self¬ interests. Every individuals at lower levels pursue personal objectives, the superior tries to increase the number of his subordinates as overall objectives of the organization may be neglected. if this number is considered a symbol of power and prestige.  Impersonality: A bureaucratic organization stresses a  Red Tape: Bureaucratic procedures involve inordinate delays mechanical way of doing things. Organizational rules and and frustration in the performance of tasks. regulations are given priority over an individual’s needs and emotions.  Compartmentalization of Activities: Jobs are divided into categories, which restrict people from performing tasks that they are capable of performing. It also encourages preservation of jobs even when they become redundant.  It is a management concept that studies how productivity in an organization can be managed by concentrating on the things that motivate the workforce. Employees in the workforce are motivated by different things. Some steer toward intrinsic motivators, and some gravitate toward extrinsic ones. 6  BMT ADVANTAGES BMT DISADVANTAGES 1.Increased productivity: By understanding employee 1.Limited focus: The OTHER MANAGEMENT THEORIES behavioral approach behavior and motivation, focuses on individual managers can create a work behavior and may overlook environment that promotes larger organizational productivity. issues. 2.Improved communication: The behavioral approach emphasizes 2.Time-consuming: The open communication and behavioral approach feedback, which can improve requires a lot of time and communication between effort to understand and employees and management. modify employee behavior. 3.Employee satisfaction: By 3.Resistance to change: addressing the needs and Some employees may resist motivations of employees, the changes to their behavior behavioral approach can increase or may not be receptive to job satisfaction and reduce turnover. feedback. The Ideal Management Theory 7