Introduction to Management Theories

Introduction to Management Theories

Contribution to Management Thought:

       

Major Classification, Management Approaches and their Contributors:

               Name               Period                                  Contribution

• Robert Owen  [1771-1858]  : Proposed legislative reforms to improve working  conditions of labour
• Charles Babbage[1792-1871]: Advocated concept of 'division of labour'; devised a profit-sharing plan which led to modern day Scanlon Plan
• Andrew Ure [1778-1857]: Explained various principles and Practices of Management
• Charles Dupin [1784-1873]: Advocated the study of Management
• Henry R. Towne [1844-1924]: Emphasized need to consider management as a separate field of study and the importance of business skills for running the business

Classical Approach: 

It was the rise of the Industrial Revolution and factories were becoming more common. Inside these factories, managers were constantly looking for ways to improve productivity and efficiency. As time moved on, it became apparent that searching for the single best way to do things was the most important thing for managers to do. Thus, classical management theory was born.

It formulated principles for setting up and managing organizations that form foundation for the field of management thought.

It can be divided into three different schools:

• Scientific Management:  kind of management which conducts business by standards established, by facts or truths gained through systematic observation, experiments or reasoning.

Scientific management theory is important because its approach to management is found in almost every industrial business operation across the world. Its influence is also felt in general business practices such planning, process design, quality control, cost accounting, and ergonomics. Your knowledge of the theory will give you a better understanding of industrial management. You'll also understand how a manager can use quantitative analysis, an examination of numbers and other measurable data, in management to improve the efficiency and effectiveness of business operations.The founding father of scientific management theory is Frederick W. Taylor (1856-1915). He was an American inventor and engineer. His two most important works were Shop Management (1903) and The Principles of Scientific Management(1911).

The husband and wife team of Frank Gilbreth, Sr. and Lillian Moller Gilbreth contributed to the theory. This duo continued the practice of time and motion studies started by Taylor, believing they could find the best way to perform each task studied.

1. Fredrick W. Taylor
2. Henry Gantt
3. Franck and Lillian Gilbreth

• Administrative Management: attempts to find a rational way to design an organization as a whole. The theory generally calls for a formalized administrative structure, a clear division of labor, and delegation of power and authority to administrators relevant to their areas of responsibilities.

1. Henri Fayol (1841-1925): Fayol was born in France, where he worked for a coal-mining business. He developed 14 administrative principles for organizational structure and management.
2. James D. Mooney (1884-1957): Mooney studied mechanical engineering and eventually became a key member of General Motors' top management team. In 1931, he wrote Onward Industry! The book is considered by many scholars to be a significant contribution to administrative management theory.
3. Luther H. Gulick (1892-1993): Gulick is often considered the 'Dean of Public Administration.' He applied administrative management theory principles to government.

• Bureaucratic Management: Weber's theory of bureaucratic management also has two essential elements. First, it entails structuring an organization into a hierarchy. Secondly, the organization and its members are governed by clearly defined rational-legal decision-making rules. Each element helps an organization to achieve its goals.
  An organizational hierarchy is the arrangement of the organization by level of authority in reference to the levels above and below it. For example, a vice-president of marketing is below the company's president, at the same level as the company's vice president of sales, and above the supervisor of the company's social media department. Each level answers to the level above it, with the ultimate leader of the organization at the top.

1. Max Weber (1864-1920), is the 'father of the bureaucratic management theory.

Behavioral Approach:
Behavioral management theory was developed in response to the need to account for employee behavior and motivation. The shift moved management from a production orientation (classical leadership theory) to a leadership style focused on the workers' human need for work-related satisfaction and good working conditions.Behavioral management theory relies on the notion that managers will better understand the human aspect to workers and treat employees as important assets to achieve goals.
In the early 1920s, a shift away from classical management theory took place as theorists began to consider the human side of an organization and the social needs of employees. In this lesson, you will learn about the evolution of the neoclassical theory of management and its two sources: the human relations movement and the behavioral management movement.

Almost a century ago, researchers at a manufacturing plant in Illinois observed a principle of employee behavior that is as true and applicable today as it was then. In this lesson, you'll learn about that principle and its effect in business.

What Were the Hawthorne Studies?

In the late 1920s, managers at Hawthorne Works - a large manufacturer operating in Illinois - asked themselves this question: Are our employees more productive in a well-lit environment than they are in a poorly-lit environment? This was really the beginning of the quality revolution in American business, and questions that now seem simple to us now had to be answered.

What Did the Hawthorne Studies Discover?

To answer their question, managers at Hawthorne Works hired some consultants and commissioned a study. Their findings are probably what you would expect. Well-lit lighting increased productivity, as did a few other variables, such as having a clean workstation, allowing employees to build and work in teams, and having regular breaks. While these were the direct findings from the Hawthorne study, none of them were groundbreaking. But the researchers made another observation - one that led to an idea taught in nearly every business textbook used in the last 70 years.

The Hawthorne Effect

During the Hawthorne study, when researchers adjusted an independent variable, the variable that can be manipulated to measure its impact on another dependent variable, productivity changed. But, after a relatively short time, those productivity gains disappeared and output ended up drifting back to the previous level. The conclusion was that changes in the work environment could impact productivity, but those productivity gains are only short term. Like any good researcher would, those working with Hawthorne Works scratched their heads and asked why.

Their answer became known as the Hawthorne effect and is the same principle that leads most drivers to slow down when they see a cop. Like the speeder reacting when seeing a cop, the participants of the Hawthorne Works study changed their behavior because they were receiving attention, but once that attention was gone, they reverted to their 'normal' behavior.

Modern Approach:

Modern management theory has changed the way managers look at their jobs. Advancements and refinements in management theory and practice have enabled managers and managerial systems to evolve. The three most recognized management theories are:

• The Quantitative Approach: This approach is centered on statistics and mathematical techniques .
• The Systems Approach: As one could probably guess, this approach focuses on systems that, when put together, make a whole unit, kind of like a jigsaw puzzle.
• The Contingency Approach: This approach believes there is no one system or approach to managing an organization. These people believe you take it as it comes but plan to deal with issues if they pop up.