OVERVIEW OF MANAGEMENT PHILOSOPHY

“Schools of Management Thought”

Developed since the Industrial Revolution of the 1700’s.

KEY THEORISTS:

• Taylor – Scientific Management• Fayol – Classical Administration• Mayo – Human Relations• Mintzberg – Managers Roles• McGregor – Leadership Styles• Blake & Mouton – Managerial Grid• Hersey & Blanchard – Situational Leadership• Knowles – Leadership Roles• Myers-Briggs – MBTI

SCIENTIFIC MANAGEMENTFrederick Taylor

Focus: Systematic approach to achieving productivity improvement through task efficiency.

Time & motion studies used to gain evidence.

Conclusion: Optimum organisation of work, tools supplied and payment incentives results in maximum output.

Assumption: Workers are “rational" and primarily want pay rises.

Work tasks broken down and reorganised BUT become more routine and boring. Not accepted by unions and workers.

CLASSICAL ADMINISTRATIVE SCHOOLHenri Fayol

Focus: An efficient and effective organisation depends on it’s management structure. i.e. hierarchy

Classical management functions: • Planning• Organising• Controlling• Co-ordinating• Directing• Reporting• Budgeting

Principles of Management:

• Division of labour• Authority needed• Unity of command• Relevant remuneration• Promotion of team spirit

HUMAN RELATIONS SCHOOLElton Mayo

Focus: Viewing employees in ‘human’ terms. Relationships central.

“Hawthorne Studies” integral part of research.

Conclusion: Work places should be regarded as a social system of significant complexity.

ROLES OF MANAGERSWhat is it that managers do?

Fayol: Classical functions

Mintzberg: 3 KEY ROLES

1. Interpersonal:• figurehead• leader• liaison

2. Information:• monitor• disseminate• spokesperson

3. Decisions:• entrepreneur• disturbance handler• resource allocator• negotiator

Need: technical knowledge, interpersonal skills and conceptual skills

MANAGEMENT vs. LEADERSHIPDistinctive and complementary systems of action

MANAGER: LEADER:

Results through position Results through co-operation and freewill

Copes with complexity of modern organisations.

Copes with change

Develops order and consistency. Communicates a vision.

AdministersMaintainsRelies on controlFocus on structureFocus on systemsPlanning, budgeting, staffing, controlling.Ensures routines are successfully completed

InnovatesDevelops IdeasInspires trustFocus on peopleSets directionAligning people, motivating, inspiring.

Challenge: To combine strong leadership AND strong management

LEADERSHIP STYLES:McGregor

Personal beliefs about motivation can determine leadership style and action.

THEORY X – THEORY Y MODEL OR LEADERSHIP:Theory X Assumptions:

• employees are lazy and only work if forced to do so.• employees do not desire responsibility but prefer to be

directed and controlled.• employees have no motivation to achieve organisational

objectives.• employees are only motivated by physiological and safety

needs.

Theory Y Assumptions:

• employees are not averse to work if organisational conditions are appropriate. Past work experiences may affect their attitude.

• employees can be motivated by higher order needs such as self-actualisation and autonomy.

• employees seek responsibility to satisfy higher order needs.

McGREGOR cont.

2 extremes:

X = autocratic, task oriented

Y = participative, people oriented

In practice extremes are unlikely but most managers adopt mixture of the two.

The situation may determine the approach.

THE MANAGERIAL GRIDBlake & Mouton

Employee centred: Production centred:

PEOPLE TASK

Needs Plan, schedule

Relationships Control

Conflict resolution Monitor

The Grid shows the 2 tendencies for behaviour.

?? Can you always define a person's tendencies and predict behaviour??

What about varying styles for different situations?

SUMMARY OF LEADERSHIP STYLES:

AUTHORITARIAN: direct others

PARTICIPATIVE: share decision making

LAISSEZ-FAIRE: let others direct their activities

Many leaders use a range of styles suited to the particular situation.

Style will affect group performance and motivation.

CONTINGENCY THEORIES OF LEADERSHIP:SITUATIONAL LEADERSHIP:

Hersey & blanchard. Classifies leader behaviours into 2 categories:

• RELATIONSHIPS• TASKS

4 possible leadership styles will result.

Leaders will match leadership style to each task.

By linking this to "follower type" based on readiness to complete task which is determined by ability and willingness, it is possible to ascertain the most appropriate leadership style to use in each situation.

In reality managers are not so flexible and tend to use only 2 styles.

LEADERSHIP ROLES:Knowles:

Leaders need to perform certain roles to ensure effective results.

Roles external to the group:Gathering information, facilitating innovation, representing the group.

Roles within the group:Clarifying issues, identifying actions, reviewing progress, developing individuals and the group, handling power issues.

**Refer also to Belbin & Knowles group/team roles

**Myers-Briggs also looks at roles.

MYERS-BRIGGS TYPE INVENTORYMyers-Briggs:

Often used in recruiting and developing appropriate teams.

**team results determined by the individual members.

Testing used to measure various aspects:

• Aptitude• Achievement• Psychometric (motivation, personality, behaviour)

Examples:

Belbin Self assessmentMyers-Briggs questionnaire

WHY??

• Knowing the individual is the key to managing the team• Important to select the right people

MANAGEMENT THEORY

Much study and theory

A complex area, but understanding the developments over time and the reality of a mixture of theoretical concepts being applied in practice helps to:

• Highlight the complex nature of management• Raise awareness of relevant issues and tools• Create a working base for managers.

POWER:Due to:

• Position• Personality

Can be:

• Formal• Informal

• Positive• Negative