Modern Management Theories PDF

 Objectives In this module, you will be able to ❑ explain the various types of management theories; and ❑ explain the functions, roles, and skills of a manager  Theories of Management Classical Management Approach Behavioral Management Approach Modern Management Approach  C...

 Objectives In this module, you will be able to ❑ explain the various types of management theories; and ❑ explain the functions, roles, and skills of a manager  Theories of Management Classical Management Approach Behavioral Management Approach Modern Management Approach  Classical Management Approach (1900-1930)  Classical Management Approach Developed approximately during 1900-1930. Look at management mainly from a “rational” perspective that assumes there is “one best way” to do things. Primary goal is maximizing productivity and efficiency. Emphasizes the completion of tasks through detailed and step-by-step procedures. It gave birth to a micro view of management that perceives organization as “closed system,” primarily focus on the internal functions and operations of the firm.  Classical Management Approach Classical managers give orders to their staff on what to do, provide them with detailed procedures on how to do the tasks required, and expect them to follow exactly what they were told to do. The dominant thoughts under classical management theories: Scientific Management Administrative Principles Bureaucratic Organization  Scientific Management ✓ Frederick W. Taylor – Father of Scientific Management ✓emphasis on scientific determination in finding the :one best way” for workers to fulfill the jobs assigned to them. ✓ time and motion study (analysis of tasks in terms of physical motions) ✓ careful selection and training of workers (scientific or proper procedures for recruitment and training) ✓ aimed for worker’s productivity ✓ limited focus on organizations – organizing was limited at the lowest level of the organization and is more appropriate for supervisors in the production area. Frederick W. Taylor Introduced the four principles of scientific management as follows: 1. Replace rule-of-thumb methods with those that are scientifically proven. 2. Select, train, and develop each worker based on scientific methods. 3. Cooperate with the workers to ensure that scientific methods are being observed and implemented in their work 4. Divide work between managers and workers to ensure that the managers apply the scientific management principles in planning the tasks and the workers apply the principles while performing these tasks. Henry Ford ❑ Industrialist who established the Ford Motor Company and sold the first commercial available automobile – the Ford Model T ❑ Applied scientific management in improving the process of assembling parts for the Model T. ❑ Ford techniques was so effective that it could reduced the assembly time for the Model T from 13 hours to 1 ½ hours.  Administrative Principles ✓Henri Fayol – Father of Administrative Principles ✓Focuses on the overall management of an organization, emphasizing the role of managers as administrators of the organization. Henri Fayol’s Five Function of Management  Henri Fayol Fourteen principles of Management :  Bureaucratic Organization ✓ Max Weber – the Father of the principles of Bureaucracy ✓ developed a structural model of bureaucracy that is seen in many of today’s large organizations ✓ the ideal structure ✓ characterized by division of labor, a clear authority hierarchy, formal selection procedures, detailed rules and regulations, and impersonal relationships  Behavioral Management Theories (1930-1950) Behavioral Management Theories ✓ Behavioral Movement ✓ Cooperative Systems ✓ Theory X and Theory Y ✓ Hierarchy of Needs ✓ Theory of Adult Personality  Behavioral Movement ✓ Elton Mayo – Forerunner of the behavioral movement in management ✓ Hawthorne studies: initial experiment revealed that illumination intensity did not relate directly to worker productivity, whereas follow-up experiments showed that productivity is directly related to group pressure and acceptance. ✓Introduction of a set numbers of works hours, the implementation of break times for workers, improvements I lighting in work areas, and close supervision by managers. ✓Focus is on the social nature of work groups.  Cooperative Systems ✓ Chester Barnard– Father of Cooperative Systems Theory ✓ Organization as cooperative systems – people’s need must be met, and managers must facilitate communication and encourage workers to perform their best. ✓ Attention to the requirements of the job and the needs of people who must do them ✓ Wrote The Functions of the Executive, which highlights the major function of the senior executive, namely, to formulate the organization’s mission, to hire key employees, and to maintain organizational communication.  Theory X and Theory Y ✓ Douglas McGregor – developer of the Theory X and Theory Y for managing people ✓ Two distinct view of human beings which govern the manager’s management style ✓ Theory X assumes that workers are lazy and hate work, such as autocratic management is adopted. ✓ Theory Y assumes that workers will do best in their work, such that participative management is adopted. ✓ Inspired today’s management practices such as participative decision-making. ✓Paved the way for the creation of challenging jobs.  Hierarchy of Needs ✓ Abraham Maslow – Father of the theory on the hierarchy of human needs) ✓ Progression of five human needs (physiological, safety, social, esteem, self-actualization needs) ✓ Lower-level needs should be satisfied before higher-level needs ✓Focus is on understanding and satisfaction of employees’ needs in order to motivate them to achieve productivity  Theory of Adult Personality ✓ Chris Argyris – developer of the Theory of Adult Personality ✓ Main ideas contributed: ▪ considerations on the needs and capabilities of mature adults ▪ expansion of job responsibilities ▪ task varieties ▪ adjusted supervisory styles to allow more participation ✓ Promotion of better relations  Modern Management Theories (1900-1930) Modern Management Theories ✓ Quantitative Analysis and Tools ✓ Quality Movement ✓ Modern Management ✓ Learning Organization ✓ Evidence – based Management ✓ Competitive Strategy  Quantitative Analysis and Tools ✓ Various proponents of management science or operations research (OR) ✓ Main ideas contributed: ▪ quantitative and mathematical approaches to production and operations (Management Science and Operation Management) ▪ useful to manufacturing and services delivery ▪ includes value chain analysis, inventory management, quality control, business process analysis  Quality Movement ✓William Edwards Deming - Father of the Quality Movement Total Quality Management (TQM) quality principles continuous improvement ✓ Joseph Juran – Father of the Quality Principle of Plan-Control-Improve Plan-Control-Improve search for and commitment to quality known as continuous improvement  kaizen ✓The Japanese concept introduced in 1986, focuses on the continuous improvement of people, process, and products. ✓means “change for the better,” and requires the implementation of gradual changes in an industry or organization over a certain period.  Modern Management ✓ Peter Drucker – Father of Modern Management ✓ Main ideas contributed: ▪ importance of intellectual capital to competitive advantage ▪ new information as the key for technological advancement  Learning Organizations ✓ Peter Senge – Father of the Learning Organization ✓ Main ideas contributed: ▪ continuous learning and improvement of organizational members ▪ emphasis on information sharing, teamwork, and empowerment  Evidence-based Management ✓ Jeffrey Pfeffer– Developer of the evidenced-based management ✓ Robert Sutton– American professor and researcher ✓Main ideas contributed: ▪ decision based on hard facts of what really works ▪ focus on meaningful research for management insights and report of case studies  Competitive Strategy ✓ Michael Porter – Father of Competitive Strategy ✓Main ideas contributed: ▪ techniques for analyzing industries and competitors ▪ provides features for internal and external competitions among industries  is the one who is mainly responsible and accountable for accomplishing the specific goals or objectives of particular group (such as a unit, division, or department) or several groups.  Top Managers “senior management” or “upper management” have extensive knowledge in management and must be multiskilled and analytical. must also be aware of business environment where their organization operates, especially its target market. responsible for determining and implementing strategic, long-term decision for the company.  Middle Managers assigned to supervise specific units or departments within the company, and high specialized in managing the task and operations of their assigned units. responsible for carrying out the decisions made by the top-level management and applying them to their units. coordinate with lower-level management in implementing strategies and meeting the goals of the company. First-level Managers “frontline” or “supervisors” directly oversee employees or workers and are tasked with carrying out the decisions communicated by middle managers. oversee the daily operations of their respective areas and handle routine administrative tasks.  Interpersonal Management Roles Roles Description 1. Figurehead The manager performs social, inspirational, legal, and ceremonial duties. The manager is a symbol and must be on hand for people or agencies that only deal with him or her because of status and authority. 2. Leader The leader role is the heart of manager-subordinate relationship and management power. The leader is a pervasive presence among subordinates, although the relationship between the leader and other members of the group tends to be indirect. 3. Liaison The manager is an information and communication center. A liaison builds and maintains relationship with other companies. It is essential, therefore, that the manager possesses networking skills to maintain internal and external contracts for information change. Liaisons use contacts to gain access to information that is vital for the company, such as facts, requirements, and probabilities.  Informational Management Roles Roles Description 1. Monitor The manager seeks and receives information from various sources to evaluate the organization's performance, well-being, and situation. The manager performs vital tasks such as monitoring of internal operations, external events, trends, analysis, and possible threats. The monitor gathers information to detect changes, problems, and opportunities an to construct decision-making scenarios. 2. Disseminator The manager communicates external information to the organization and facilitates information exchange between subordinates. The information being dessiminated can either be factual or value-based. 3. Spokesperson The manager relays information to other groups and entities outside of the company. The manager is seen as an expert in the field where his or her organization operates. the manager also uses his or her reputation and profile to influence outsiders and stakeholders to maintain the stature of the company.  Decisional Management Roles Roles Description 1. Entrepreneur The manager designs and initiates new opportunities for the company. An entrepreneur is a risk-taker and often involved in start-ups and new projects. 2. Disturbance The disturbance handler is involed in stepping in to deal with the problem, Handler evaluate the situation, reallocate resources, and provide adequate support to the company. 3. Resource The manager oversees and control resource allocation be evaluating major Allocator decisions involving resources. Manages develop appropriate models and plans in conducting their evaluation. 4. Negotiator The manager takes charge of communicating and negotiating with other organization, and even among the members of the company. Conceptual Skills Human Skills Technical Skills  End of Lesson 3