Foundations of Management

Chapter 2

Classic Theories

1. Scientific Management One best way Efficiency is key Focus on individual

workers Taylor, Gilbreath (tools,

motions)

Gantt (quotas, bonuses)

2. General Administrative Theories Perspective of the entire

organization What are good

management practices Fayol, Weber

Administrative Theories

Fayol’s 5 functions of ManagementPlanningOrganizingCommandingCoordinatingControlling

Plus 14 principles…see text pg 22

Administrative Theories - Fayol

Division of labor

Authority

Discipline

Unity of command

Unity of direction

Subordination of individual interests

Remuneration

Centralization

Scalar chain of command

Order

Equity

Retain employees

Encourage initiative

Esprit de Corps

Administrative Theories - Weber

BureaucracyDivision of labor - divided in routine tasks

Authority hierarchy – strict subordination

Formal selection – based on qualifications & examinations

Formal rules & regulations – strict adherence, regulate ee’s Impersonality – follow rules to avoid personal preference of ee’s

Career orientation – work for money & a career

Quiz

Behavioral Theories

Looks at “why” people do things rather than “how” people do things (Classical)

Embraces the study of sociology and psychology

Attempts to understand human and employee behavior

Behavioral Theories

Elton Mayo Western Electric Hawthorn Studies (Cicero)

Control & experimental groups with illumination levels

Both groups increased regardless of light level

Behavioral Theories

Hawthorn Studies findingsFinancial incentives did not increase

productivity. Attention was far more motivating

Worked harder if they thought mgrs were concerned about them

Work norms drive productivity by establishing what is a fair days work

Social environment made monotonous work more palatable

Behavioral Theories

Mary Parker FollettSaw org as people & not productionMgrs should use skills to lead & not orderWorkers need to be given responsibilityMgrs should actually receive training in mgt

Work ignored for decades

Human Relations Era

People oriented approach to management

Looks at interaction of people & impact on org

Goal: enhance organizational success by building appropriate relationships among employees

Human Relations Era

Maslow’s hierarchy

Herzberg’s Motivation-Hygiene theoryThere are satisfiers (motivators) &

dissatisfiers (hygiene factors) that impact feelings toward the environment

Human Relations Era

Hygiene Factors MotivatorsCan lead to dissatisfaction: Leads to satisfaction:

Policies Recognition

Working conditions Growth on the job

Relationship with supervisors Advancement

Supervision received on the job Interesting work

Salary Responsibility

Contemporary TheoriesBest practices (Mintzberg, Peters, Covey, Drucker) Orgs need clearly defined values Vision Customer driven Recognize ee’s Collaboration among ee’s Treat ee’s as valuable assets Continually train & invest in ee’s Freedom to take risks Trust, honesty, integrity

Leadership Theories

4 generations of leadership

Trait theoriesCertain traits are inherent to leaders

Behavioral theoriesBehaviors leaders exhibitLeadership born not learned

4 generations of leadership

Contingency/situational theoriesContingency – leadership style changesSituational– leader changes

Contemporary viewscharismatic, transactional,

transformational, & Kouzes & Posner…

5 PracticesModel the way Set the example Have common values Working side by side

Inspire a shared vision Dreams & visions of what could be Get others to understand & buy into that vision

5 Practices

Challenge the processSearch for opportunities to innovate, grow

& improve

Recognize good ideas & challenge the system to get them done

Encourage risk taking

5 Practices

Enable others to actLeadership is a team effortFoster collaborationMake it possible for others

to do good workEmpowerment

5 Practices

Encourage the heartRecognize accomplishmentsCelebrate achievements

Top Leadership QualitiesCharacteristicCharacteristic 20072007 20022002 19951995 19871987

HonestHonest 8989 8888 8888 8383

Forward LookingForward Looking 7171 7171 7575 6262

InspiringInspiring 6969 6565 6868 5858

CompetentCompetent 6868 6666 6363 6767

IntelligentIntelligent 4848 4747 4040 4343

Fair-mindedFair-minded 3939 4242 4949 4040

Staight forwardStaight forward 3636 3434 3333 3434

Broad-mindedBroad-minded 3535 4040 4040 3737

% responding N=75,000

List Qualities

Good manager/leader:

Poor manager/leader: