Common Theories of Management PDF

Common theories of management  Taylor’s Scientific Management Theory. An approach that emphasizes the scientific study of work in order to improve worker’s efficiency. Fredrik Winslow Taylor (1856-1915) was an American mechanical engineer who sought to improve indust...

Common theories of management  Taylor’s Scientific Management Theory. An approach that emphasizes the scientific study of work in order to improve worker’s efficiency. Fredrik Winslow Taylor (1856-1915) was an American mechanical engineer who sought to improve industrial efficiency. He became an apprentice mechanist , Learning factory conditions at the grass root level. He was one of the intellectual leader of efficiency movement and was highly influential is reshaping the factory system of production.  In the words of Taylor “Scientific Management” means knowing exactly what you want man to do and seeing that they do it in the best and cheapest way. He proposed that problems arise from work setting, standard and wages. He suggested solutions to improve work effeciency.  Rule Of Thumb Should be replaced With Science : at the time Factory owner or manager relied on personal judgment in attending to the problem they face in the course of managing their work. But in the modern world theory, research, data makes the decision.  Harmony Not Discord In group Action :All members of the organization (Employer and employee) should work as a team. Conflict should be resolved by mutual discussion and coordination and disagreement should be eliminated Employers and employees should work harmoniously and try to maximize each other’s interest  Development Of Workers To Their Fullest Capacity :Industrial efficiency depends to a large extent on personnel competencies. As such scientific management also stood for worker development. Worker training was essential also to learn the “best method” developed as a consequence of the scientific approach.  Techniques of Scientific Management Based on his own trials and research Taylor developed the following tools and techniques of management. (1)- Separation Of Planning And Doing :Taylor emphasized the separation of planning aspect from actual doing of the work. (2)- Functional Foremanship: He motivate him to suggest functional foremanship thought eight person\supervisors. According to the concept of functional foremanship one set of four supervisor deal with planning function, the other set of four supervisors deal with execution\doing functions.  Work study Time Analysis: It determines the standard time taken to perform a well-defined job. Time measuring devices are used for each element of task. The standard time is fixed for the whole task by taking several readings. Motion Study : refers to the study of movements like lifting, putting objects, sitting and changing positions etc. Which are undertaken while doing a typical job. Unnecessary movements are sought to be eliminated so that it taken less time to complete the job efficiently.  Method Study : The objective of method study is to find out one best way of doing the job. To determine the best way there are several parameters right from procurement of raw material fill the final. Product is delivered to customer every activity is part of method study. Fatigue Study : In order to increase the capacity to work to their maximum potential workers require rest between the work activities. The amount of rest and the frequency of rest intervals helps in removing the fatigue and enhance their work potential.  Piece Wage Systems :Taylor wanted to reward efficient workers so he introduced different rate of wage. Payment for those who performed above standard and for those who performed below standard.  Bureaucratic Management Theory Developed by Max Weber, contained two essential elements, including structuring an organization into a hierarchy and having clearly defined rules to help govern an organization and its members. Weber described a theory to operate an organization in an effective way which is known as the Bureaucratic management approach or Weberian bureaucracy. He found different characteristics in bureaucracies that would effectively conduct decision making, controlling resources, protecting workers and accomplishment of organizational goals.  Principles of Bureaucratic Management Approach 1. Proper Division of Labor: Division of labor specialization should be fixed and there should be a balance between power and responsibilities. 2. Chain of Command: The chain of command or organizational hierarchy should be constructed in a way that information related to decisions and works can flow effectively from top to bottom. 3. Separation of personal and official property: Owners and organization’s assets are separate and can to be treated as same by the owner or the organization.  4. Application of Consistent and Complete Rules: There should be proper rules and regulations in the organization for running the organization. These rules should be followed in every step of the organization and they are equally applicable to every member of the organization. 5. Selection and Promotion Based on Qualifications: The selection and promotion of workers should be based on equalization like; skills, experience, age. It should not be influenced by personal relations and benefits.  HUMAN RELATIONS THEORY (ELTON MAYO) Elton mayo in his studies concentrated on fatigue, accidents, production levels, rest periods, working conditions, etc., of industrial workers in factories. He conducted studies in factories and contributed for the theory of human relation that focuses on social relation of employees and their moral to increase productivity. His main hypothesis is that relations between employers and employees should be humanistic, not mechanistic. Employees and workers deserve to be treated as individuals with dignity and self-respect rather than as factors of production or inter- changeable elements of the production system.  It made two significant contributions in organisation and management. These are:  It posed a challenge to the physical or engineering approach to motivation;  The first real assault was made on the purely structural, hierarchical approach to the organisation.  The results of mayo’s study on Howthorne plant western electricity company a)The social and psychological factors at the workplace, not the physical conditions of the workplace determine the employees’ morale and output. b) The organization is a social system. c) Non-economic rewards and sanctions significantly affect the workers’ behavior, morale and output. d) Workers are not inert or isolated, unrelated individual; they are social animals.  e) Division of labour strictly on specialization is not necessarily the most efficient approach. f) The workers have a tendency to form small groups (informal organizations). The production norms and behavioural patterns are set by such groups. g) Leadership, style of supervision, communication and participation play a central role in workers’ behaviour, satisfaction and productivity. The main features of the Human Relations Theory/Approach are the following: (a) Since management/ organisation is getting things done through and with people, a manager must have a basic understanding of human behaviour in all respects—particularly in the context of work groups and organisations. (b) The managers must study the inter-personal relations among the people at work. (c) Larger production and higher motivation can be achieved only through good human relation. (d) The study of management must draw the concepts and principles of various behavioural sciences like Psychology and Sociology.  Contingency Theory (Fred Fiedler) Contingency theory is based on the belief that the environment a company operates severely affects the appropriate way a firm should organize to be more effective. Contingency theory depends(is contingent) on a variety of factors, including the environment, technology, size of the organization, number of employees, company culture, and a range of products.  An organizational environment is a cluster of forces and conditions that operates outside of the organization but affect its reality and the manager’s ability to engage and utilize resources. Contingency theory is based on the notion that an adequate “fit” between organizational parameters and contingency variables leads to enhanced performance (Betts,2003).  Fiedler; the contingency theory of management states that leaders attempt to adjust the appropriate leadership style to the specific situation that will drive them to accomplish the organizational purpose.  The X and Y theory by Douglas McGregor McGregor (1960) coined the terms ‘Theory X’ and ‘Theory Y’ to describe the authoritarian and participative approaches to management. built on Abraham Maslow’s (1954) motivation theory of basic human needs, once basic physiological and safety needs have been met, people at work become interested in self-fulfillment and responsibility.  So work is not just a source of money but of self-respect, risk-taking and creativity (contrast the way that Taylor thought about his workers). If this is so, then positions have to be designed and fitted to people in the hierarchy, rather than the other way round.  Theory X’: assume that people are naturally lazy, irresponsible and resistant, rather than being made that way by the organization they work in.  With this theory managers would have to assign tasks, like Taylor, be job-centered rather than person- centered; supervisors would ensure that their subordinates were kept busy. The design of the organization would be one of clear lines of authority, narrow spans of control and centralized decision-making.  ‘Theory Y’: people are naturally striving, taking pride in their accomplishments and seeking new experiences, would indicate a structure which delegates responsibility and control, encouraging workers to participate in decision-making. Theory Y-style management certainly seems more suited to social work and social care.