**Out lines: Learning expectations Definition of Management Definition of Management theories. Introduction Why we study management? Evolution of management theories.
** Management theories: Are sets of ideas and rules that are designed to help in management and Facilitate proper management in planning, organizing, leading and controlling.
**Why Study Management theory 1. Provide a stable focus for understanding what we experience . 2. Enable us to communicate efficiently and thus move into more and More Complex relationships with other people . 3. Theories make it possible to keep learning about our world.
Evolution of management theories Elton Mayo Abraham Maslow Douglas McGregor Kurt Lewin A) Quantitative school Management science Operation management Management information system System management theory B) Contingency school c) Quality school Kaizen approach Reengineering approach
1- classical management school (approach) It is the first school of management, developed during industrial revolution. The classical management theory developed from efforts to find the one best way performs and manage tasks, and emphases on efficiency and productivity.
Classical Management School. A) Scientific Management Theory: Fredrik Taylor (1856 – 1915) – USA. Henry Gantt (1861- 1919) Frank and Lillian (1868 – 1924) B) Administrative Management Theory: Max Weber. (1864-1920) – Germany (Bureaucratic management theory). Henri Fayol. (1841 – 1925) – France Mary parker Follet. 10/12/2020 13
(2) New- Classical Management School . (Behavioral School) (a) Elton Mayo (1924 – 1932)- Chicago. (Human relationship Theory) (b) Abraham Maslow (1945 /1960) ( motivation theory) (c) Douglas McGregor (1906-1964) (d) Kurt Lewin (1944 – 1951) 10/12/2020 14
(3) modern management school (advanced) (a) Quantitative School. Management science. Operations management. Management information system. System management theory. (b) Contingency School. (c) Quality School. Kaizen approach. Re engineering approach. 10/12/2020 15
** Principles of scientific management : - Four Principles of Scientific Management are : 1. The development of true science. 2. The scientific selection of employees. 3. The scientific education and development of employees. 4. Intimate and friendly co-operation between employees and employer.
(A) scientific management theory: (1)- frederick taylor (1856 – 1915) : He is the father of the scientific management school . His emphases were on efficiency and productivity . It provided the formation for modern work studies . Who is credited with what we call now “TAYLORISM
**Taylorism : Involved breaking down the components of manual tasks in manufacturing environments, timing each movement (time and motion studies) so that there could be a proven best way to perform each task. Thus employees could be trained to be “first class” within their job . Taylor had a simple view about what motivated people at work - money. He felt that workers should get a fair day's pay for a fair day's work, and that pay should be linked to the amount produced .
He introduced the DIFFERENTIAL PIECE RATE SYSTEM of paying wages to the workers . Taylor also specified 9 qualities of which will make a good workman include ( education , special technical knowledge , manual dexterity and strength , tact , energy , spirit , honesty , judgment and good health ) . Most of the view expressed by Taylor can applied to our nursing situation.
Taylor's system for work improvement consisted of the following steps:- 1. Observation of worker’s performance through time and motion study to determine the one best way to carry out each task. 2. Scientifically selecting the best worker to perform each job, that is the person with characteristics and abilities needed to carry out job in the most efficient manner. 3. Training the selected worker to perform tasks in the most efficient manner.
4- Paying the worker differential piece rate to motivate him to perform the task in prescriber efficient fashion. 5- Appointing a few high skilled workers to managerial positions and giving each manager responsibility for planning tasks for subordinate workers. 6- Appointing a Forman for each aspect of the work and instructing the production worker to report indifferent functional Forman for each aspect job.
(2)- henry gantt (1861- 1919): He is a Taylor’s Partner who develop Gant chart that measures planned and complete work along each stage of production and based on time instead of quantity. This chart was a modern technique used as quantative control tool .
(3)- frank and lillian (1868 – 1924): (Husband and wife team), they studied job motions and observed that some workers were slow and inefficient, while other was very productive. From this observation, Frank collected the basic necessary movement that raise the output to do in work and eliminated unnecessary movement.
( B) administrative management theory: The classical Administrative Management Theory emphases on the total organization and development of management process (planning, organizing, coordination, directing and controlling) more than work methods.
(1)- henri fayol. (1841 – 1925) – france first person give a definition of management which is generally familiar today Give much of the basic terminology and concepts which would be elaborated by future researchers such as division of labor, unity of command and centralization.
Fayol broke down the key function of management into 6 main aspects Forecasting Planning Organizing Commanding co-coordinating Controlling.
These six aspects of management falling into two main groups related as to process and effect as follows:- Process Effects 1. Forecasting Plan 2. Organization Co-ordination 3. Command Control These six aspects of management follow each other in logical sequence, i.e., forecasting is needed prior to formulation plan. The plan needs organizing which in turn needs coordination of the efforts of the persons involved, and can be achieved by an effective command which result control.
**14 principles of management by fayol: 1. Division of work: Breaking down a task into its component. Training employees to become specialist in specific duties. Putting in sequence. 2. Authority: It is mean the right to take final decisions to act or to command action of others. Authority should be delegated only to subordinates who are willing to assume commensurate responsibility.
3. Discipline: Good discipline is the result of effective leadership; a clear understanding between the managers and the employees regarding the organization’s rules. 4. Unity of work: An employee should receive directives from only one superior. 5. Unity of direction: This improves coordination and ensures that energies are channeled in the proper direction.
6. Subordination of individual interest to general interest: This can accomplish by: a. Fair agreement between management and employees. b. managers setting good examples. c. constant supervision. 7. Remuneration of personnel: Employees must be paid a fair salary and rewards for their services. 8. Centralization: It is mean how much authority is concentrated at the top of the organization or dispersed throughout the management hierarchy.
9. Chain of command: All organizational requests and directives must follow this chain. 10. Order: Is defined as a place for everything or everyone and everything is in its place. 11. Equity: Which means dealing with subordinates by equity and kindness? 12. Stability of tenure of personnel: Experienced, well trained employees (managers and subordinates) are crucial to the success of work.
13 . Initiative: Which is defined as the ability to think thoroughly and develop a plan of action. 14 . Esprit de corps (Team spirit): The manager’s job is to coordinate efforts, encourage keenness, use each man’s abilities, and reward each one’s merit without arousing possible jealousies and distributing harmonious relations.
A comparison between (taylor and fayol) (scientific & administrative school) FAYOL TAYLOR Basis of comparison To increase overall production of the organization To increase production at the shop level Aim On improving overall administration through general principles On improving workers’ output through work simplification and standardization Focus From top to bottom From bottom to top Management view Universal truths developed from personal experiences Scientific observation and measurement Results Practitioner Scientist Personality A systematic theory of management Science of industrial management Major contribution Wider Narrow Perspective Macro aspect-management of total organization Micro aspect-management of jobs Aspects studied
(2)- max weber. (1864-1920) – germany ( bureaucratic management theory). *Bureaucracy refers to the management of large organizations characterized by hierarchy, fixed rules, impersonal relationships, rigid adherence to procedures, and a highly specialized division of labor. * According to Max Weber, there are three types of Power in an organization:- Traditional Power. Charismatic Power. Bureaucratic Power or Legal Power.
* Weber suggests the characteristics of bureaucracy as following : 1.There is the principle of fixed official jurisdictional areas, which are generally ordered by rules, that is, by laws or administrative regulations . 2. The principles of office hierarchy and of levels of grade authority mean a firmly ordered system of super and subordination in which there is a supervision of the lower offices by the higher ones . 3. The management of modern offices is based upon written documents (“the files”), which are preserved in their original or draught form . 4. Office management, at least all specialized office management – and such management is distinctly modern – usually presupposes thorough and expert training . 5. When the office is fully developed, official activity demands the full working capacity of the official, irrespective of the fact that his obligatory time in the bureau may be firmly delimited . 6- The management of the office follows general rules which are more or less stable, more or less exhaustive, and which can be learned.
*Features of bureaucratic theory Division of Labor. Fixed authority and official jurisdiction. Hierarchal arrangement of officers. Written formal rules. Impersonality. Specialization. Security of tenure
An advantage of bureaucracy is that organizational strategy decisions are controlled by the top-level managers and this streamlines the entire process. Besides, since less individuals are involved in the strategic decision-making, it consumes less time. A clear disadvantage is that bureaucratic structures usually discourage creativity and innovation and there is little scope of independent thinking.
(3)-mary parker follet (1869 -1933): Her emphases on: 1. Establishing the common goals for employees. 2. Began to tell about ethics, power and leadership. 3. Encourage managers to allow employees to participate in decision making. 4. She said that successful leadership result from training in leadership skills. 5. She stressed the importance of people rather than techniques.
(2)new- classical management school. (Behavioral school) This approach is an extension and improvement of human relations movement. As this approach suggested that individuals differ in their attitudes, perceptions, their needs and goals also differ from organization's needs and goals. So the need is to achieve fusion between organization's goals and human needs . It applies scientific vision to human relations theory
Concepts from Psychology, Sociology and Anthropology are applied to study human behavior. Psychology – Study of individual behavior. Sociology – Study of human behavior in groups. Anthropology - Study of human behavior as individuals and members of groups. Concepts from various disciplines are tested before applying them in business organizations.
(1)- elton mayo (1924 – 1932)- chicago . ( Human relationship theory ): - Mayo believed that workers are not just concerned with money but could be better motivated by having their social needs. - Mayo's experiments showed an increase in worker productivity was produced by the psychological stimulus of being singled out, involved, and made to feel important. -He isolated two groups of women workers and studied the effect on their productivity levels of changing factors such as lighting and working conditions . -He expected to see productivity levels decline as lighting or other conditions became progressively worse -What he actually discovered surprised him: whatever the change in lighting or working conditions, the productivity levels of the workers improved or remained the same .
**From this mayo concluded that workers are best motivated by : 1.Better communication between managers and workers (workers were consulted over the experiments and also had the opportunity to give feedback). 2. Greater manager involvement in employees working lives (workers responded to the increased level of attention they were receiving). 3. Working in groups or teams (workers did not previously regularly work in teams).
(2)- abraham maslow (1945 /1960): Maslow stated that individuals are motivated to satisfy certain unsatisfied needs. This theory based on the following assumptions : 1 . Needs are arranged in a hierarchy . 2. Unsatisfied needs motivate or influence behavior . 3 . Needs at any level of hierarchy emerge as a significant motivator only when the lower level needs is reasonably well satisfied 4 . Satisfied needs don't motivate behavior . 5 . This needs ranging from basic survival to complex psychological needs and that people seek a higher need only when the lower need have been met .
(3)-douglas mcgregor (1906-1964) : Theory X and Theory Y – using human behavior research he noted: that the way an organization runs depends on the beliefs of its managers.
(3)modern management school . The Modern Period (1960 to present). After, 1960 management thought has been turning somewhat away from the extreme human relations ideas particularly regarding the direct relation between morale and productivity. Present management thinking wishes equal emphasis on man and machine. It includes:
(1)- quantitative school. ( Johan macdonald, george R. Terry, andrew szilagyi -1950s) Quantitative approach also called Operation Research. Quantitative approach is a scientific method. It emphasizes the use of statistical model and systematic mathematical techniques to solving complex management problems.
Its helps the management to making decisions in operations. It can only suggest the alternatives based on statistical data. It can take final decision. It helps the management for improving their decision making by increasing the number of alternatives and giving faster decisions on any problem. Management can easily calculate the risk and benefit of various actions.
It includes the following approaches : a)- Management science : - This approach encourages using mathematical techniques and statistical model to save time and money in decision making. - There are several science applications as: (Mathematical forecasting – inventory modeling – queuing theory)
B)- operation management: - It focuses on managing the process of transformation materials and capital into useful goods or services. - Nowadays, Operation management closely focus on the demands of quality , customer services , competition, and how the manager be ready with enough resources to meet any customer needs.
C) - management information system: MIS organizes past, present and projected data from internal and external sources and processes it into usable information to be available to manager’s at all organizational levels. It helps managers to identify alternatives quickly, evaluate alternatives, and select the best one.
D)- system management theory : (Ludwing Von Bertalanffy, Lawrence J. Henderson, W.G. Scott, Deniel Katz, Robert L. Kahn, W. Buckley and J.D. Thompson)- 1960 They viewed organization as an organic and open system, which is composed of interacting and interdependent parts, called subsystems. - A System is defined as a set of regularly interacting or inter - dependent components that create as a whole unit. The system concept enables us to see the critical variables and constraints and their interactions with one another.
- An organization as a system is composed of: Inputs….. (Materials and human resources). Transformation processes. Outputs …. (Products or services). Feedback…. (Reactions from environment).
(2)-Contingency School: ( By J.W. Lorsch and P.R. Lawrence - 1970′s) - This approach useful for repetitive things but not for managerial problem - It not accept the universality of management theory. - It stresses that there is no one best way of doing things, where manager use flexible way and chose many options according the situation depending on his experience, so called “Situational Approach”. - Also, manager adjusts to changes in environment as he see.
(3) Quality School: This school aimed to improving performance by focusing on customers’ needs through giving high quality to customers. - The Quality School theory focused on: 1.Organization make up. 2.Quality of goods and services. 3.Continuous improvement in goods and services. 4.Employs working in teams. 5.Developing openness and trust.
- This school consisted of : (a)- Kaizen approach : In this approach managers and individuals learn from their accomplishments and mistakes and the manager encourage everyone to share with other what they learned from their experience (failures or passes).
(b)- Re engineering approach : This approach focused on making a great and fast change with effective reaction. The manager fined every possible ways to rebuild the organizational system to achieve improvements in cost, quality, service and speed.