Organization & Management Theories.pptx

MPA 211 O & M

1. Reporter: Judette Camba Professor: Josefina Bitonio , DPA The Various Theories of Organization & Management

2. Introduction Though people have had to ‘manage’ people, operations and organizations for many centuries, the concept of ‘management’ is less than 150 years old. It was first developed in Europe by Henri Fayol (1916) and in America by F.W. Taylor (1911).   Evolution of Management Classical Approach Neo-Classical Approach Modern Approach

3. A. Classical Approach 1. Scientific Management Theory 2. Bureaucratic Management Theory 3. Administrative Management Theory Classical Approach

4. Scientific Management Theory This theory was propounded by Frederick Winslow Taylor. Taylor believed that by analysing work in a scientific manner, it was possible to find the one best way to perform a task. He felt that by organising work in the most efficient way, the organisation's productivity would be increased, allowing it to reward employees with additional remuneration, which Taylor argued was employee's only motivation.

5. 1) Replace the old rule-of-thumb method through the development of a science for every component of a man’s work. 2) Select, train, show and improve the workman through scientific method. 3) Collaboration with men wholeheartedly so as to complete the assignment scientifically. 4) Equally divide the work and the responsibility concerning the management and the worker. The management gets all determination for which they are fine fitted than the workmen Taylor explains on his theories of management in 1911, while he circulated “The Principles of Scientific Management”. Scientific management comprised of four fundamental principles:

6. Bureaucratic Management Theory Bureaucratic Theory was developed by a German Sociologist and political economist Max Weber (1864-1920). According to him, bureaucracy is the most efficient form of organisation. The organisation has a well-defined line of authority. It has clear rules and regulations which are strictly followed.

7. 1. A clear definition of distinct and separate areas of competence, laid down in laws and regulations 2. A clearly defined hierarchy of office: Every position or office is accountable to and supervised by a higher office 3. All decisions are made on the basis of written documents and according to written rules 4. The relations within the organization and all decisions are purposely impersonal and devoid of personal interests 5. The officials have received extensive education in their areas of competence 6. They are employed on the basis of their expertise, their appointment is full-time and excludes other occupations 7. They have set salaries paid in money Principles for the bureaucracy:

8. Administrative Management Theory The first expert of Administrative Management Theory was Henri Fayol  (1841-1925). Fayol is called the "Father of Modern Management". According to the Administrative Management Theory / School, management is the process of getting things done through people. Here importance is given to groups and not to individuals. He believed that management is a science which can be taught and argued that there are six basic business activities: technical, commercial, financial, security, accounting and managerial.

9. His fourteen ‘principles of management’ are:

10. Luther Gulick , strongly influenced by Fayol formed the acronym POSDCORB as the major duties of a manager. (Planning, organizing, directing, staffing, co-ordinating, reporting, budgeting) Managerial Activities by Fayol

11. B. Neo-Classical Approach 1. Human Relations Theory 2. Behavioral Theory Neo-Classical Approach

12. Human Relations Theory The founder of the human relations theory is Elton Mayo. The most investigated areas of the human relations theory are of all the following: Work motivation Worker’s participation in decision-making Communication Informal working groups Working morale Worker’s relations to the changes Working conditions Informal organization, and the other. The main objectives of the investigations made into the human relations theory was in looking for the methods by which one could again make happy the workers and thus get them for more active work.

13. Behavioral Theory It is a mature version Human Relations theory. It studies how managers should personally behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organization goals. Some of major contributors and their contributions:

14. • “How orders should be given in any organization: They should be depersonalized ‘to unite all concerned in a study of the situation, to discover the law of the situation and obey that”. Mary Parker Follett

15. “All humans have needs that underlie their motivational structure” “As lower levels of needs are satisfied, they no longer ‘drive’ behavior ” “Satisfied needs are not motivators” “As lower-level needs of workers become satisfied, higher-order needs take over as the motivating forces” Abraham Maslow: Hierarchy of Needs

16. He played a key role in promoting this redirection, through his efforts at sharpening the philosophical contrast between the human relations approach and the scientific management and administrative principles perspectives. Known for his Theory X and Theory Y – contrasting basic managerial assumptions about employees • Theory X holds that human beings inherently dislike work and will avoid it if possible. • Theory Y  is a participative style of management which “assumes that people will exercise self-direction and self-control in the achievement of organisational objectives to the degree that they are committed to those objectives”. Douglas M. McGregor

17.   C. Modern Management Theories 1. System Approach 2. Quantitative Approach 3. Total Quality Management Approach 4. Learning Organization Approach 5. Team Building Theory 6. Chaos Theory 7. Open System Theory 8. Contingency Theory/Approach Modern Management Theories

18. Modern Management Theories -The organization can survive many different situation -The organization will be more adaptive to change by predictions -Continuous Improvement - Solve complex and detail problem -Hard to understand - Need advance math and modelling Strength s Weakness es

19. System Approach, Quantitative Approach, Total Quality Management Approach, Learning Organization Approach, Team Building Theory, Chaos Theory, Contingency Theory/Approach, Open System Theory are included into modern management theories because these theories were developed in late 20 th century (after 1950) and haven’t found yet in the classical and neo-classical era. C onclusion to Modern Theories

20. References: Overview of Theories on Organization and Management by Lars Groth https://www.uio.no/studier/emner/matnat/ifi/INF5890/v13/material-to-download/lecture-presentations/Feb_6_organization-and-management-theories/overview-of-theories-on-organizations-and-management-inf5890-v2013.pdf General Theories of Management, BA 103 Principles of Management Lesson 4 https://www.colbournecollege.com/files/BA_103_Lesson_FOUR.pdf Theories of management John R Hudson 20th October 2015  https://johnrhudson.me.uk/management/Theories_of_Management.pdf A Summary of Organizational Theories as Presented by Shafritz , Ott , & Jang  https://www.doreburry.com/papers/Analysis_of_Org_Theories_Read_Disclaimer.pdf Organization Theories: From Classical Perspective Jannatul Ferdous International Journal of Business, Economics and Law, Vol. 9, Issue 2 (Apr.) 2016 ISSN 2289-1552  https://ijbel.com/wp-content/uploads/2016/05/K9_11.pdf MODERN THEORY OF ORGANIZATION (collected and edited by prof . dr. Štefan Ivanko ) https://www.researchgate.net/file.PostFileLoader.htmlid=566d92886307d9c97a8b4577&assetKey=AS%3A306226569646080%401450021512077