EDM 205 II Management Thought (Past and Present).pptx

1. II. Management Thought: Past and Present Discussant: Bladimer Mayo Dadulla SY 2023
2. Topics SY 2023 II. Management Thought: Past and Present 2 a. Classical Management b. Behavioral Management
3. Let’s play! SY 2023 II. Management Thought: Past and Present 3 Weber Taylor Fayol Mayo eerwb ayortl yolaf ymoa
4. What do we mean by Management Theories? SY 2023 II. Management Thought: Past and Present 4 general rules supervisio n effectivit y framework organizati on manage
5. SY 2023 II. Management Thought: Past and Present 5 Classical Management Bureaucratic Theory (Max Weber) Classical Management Administrative Theory (Henri Fayol) Classical Management Scientific Management ( F. Taylor) Classical Management Theories
6. Bureaucratic Theory  Traditional Power  Charismatic Power  Bureaucratic Power or Legal Power.  importance of bureaucracy  a hierarchical structure  clear division of labor  distinction between authority and power  Division of Labor.  Formal Hierarchical Structure.  Selection based on Technical Expertise.  Management by Rules.  Written Documents.  Only Legal Power is Important.  Formal and Impersonal relations. SY 2023 II. Management Thought: Past and Present 6
7. Bureaucratic Theory 7 SY 2023 II. Management Thought: Past and Present
8. Theory of Scientific Management improving economic efficiency, especially labor productivity. Money E > S =120% E < S = 80% 8 SY 2023 II. Management Thought: Past and Present
9. Principles of Management SY 2023 II. Management Thought: Past and Present 9 Decision- making All levels guidebook Objective
10. Attributes of Good Management SY 2023 II. Management Thought: Past and Present 10 Practical Relevant Consistent Flexible
11. Management Principles SY 2023 II. Management Thought: Past and Present 11 All Managers Principle Function
12. Management Principles SY 2023 II. Management Thought: Past and Present 12
13. 5 functions of Management SY 2023 II. Management Thought: Past and Present 13 These five functions focus on the relationship between personnel and its management and they provide points of reference so that problems can be solved in a creative manner
14. Behavioral Theory of Management SY 2023 II. Management Thought: Past and Present 14 People First Physical/ environment Action & Reaction
15. Hawthorne Effect The concept is that employee motivation can be influenced by how aware they are of being observed and judged on their work - a basis for regular evaluation and metrics to meet. SY 2023 II. Management Thought: Past and Present 15
16. 5 Principles of HRM skills at the workplace SY 2023 II. Management Thought: Past and Present 16 Communicatio n Skills Multi tasking Work environment Negotiations Resolving Conflicts
17. “Management is doing things right; leadership is doing right things- Peter Drucker” SY 2023 II. Management Thought: Past and Present 17
18. Reference SY 2023 II. Management Thought: Past and Present 18 Q&A: What Is the Classical Management Theory? | Indeed.com TechnoFunc - Management Theories Session 1. Organizational theories Classical theory of management Max Weber six principles of bureaucracy management theory Henri Fayol's management theory is a simple model of how management interacts with personnel. 5 Functions of Management by Henri Fayol 14 Principles of Management by Henri Fayol's | Simplilearn Elton Mayo Human Relations Theory - Ireland Assignment Help
19. Thank you Bladimer Mayo Dadulla bmdadulla@tau.edu.ph SY 2023 II. Management Thought: Past and Present 19

Notas do Editor

Max Weber
Frederick Taylor
Henri Fayol
Elton Mayo
Management theories are the set of general rules that guide managers to manage an organization. Management theories (also known as "Transactional theories") focus on the role of supervision, organization, and group performance. Theories are an explanation to assist employees to effectively relate to the business goals and implement effective means to achieve the same.
Early management theories base leadership on a system of reward and punishment. Managerial theories are often used in business; when employees are successful, they are rewarded; when they fail, they are reprimanded or punished.

Management theories refer to the set of principles and practices that guide management decisions and actions. These theories provide a framework for understanding how organizations function and how managers can effectively lead and manage employees to achieve organizational goals. Examples of management theories include scientific management, administrative management, human relations theory, and contingency theory.
Classical management theory is based on the belief that workers only have physical and economic needs and prescribes specialization of labor. Classical theories recommend centralized leadership and decision-making and focus on profit maximization. Three streams of classical management theory are - Bureaucracy (Weber), Administrative Theory (Fayol), and Scientific Management (Taylor).
Bureaucratic theory is a perspective in sociology and political science that views the state and its institutions as being run by bureaucrats, who are trained professionals that follow a set of rules and procedures to make decisions. This theory emphasizes the importance of bureaucracy in the functioning of modern societies and the role of bureaucracy in the implementation of government policies. Bureaucratic theory also highlights the potential for inefficiency, lack of accountability, and resistance to change in bureaucratic organizations. The theory was developed by Max Weber, a German sociologist and political economist, in the early 20th century.

Bureaucratic theory is a perspective in the social sciences that describes and explains the behavior of bureaucracies, which are organizations that are designed to achieve specific goals through a hierarchical structure and a clear division of labor. The theory was developed by Max Weber, a German sociologist, who described bureaucracy as a rational and efficient form of organization. Bureaucratic theory focuses on the structure and behavior of bureaucracy and how it functions to achieve its goals. It also examines the role of bureaucrats and the rules and regulations that govern their behavior.

Power can be legitimate or illegal but authority is always a legitimate. Power is the capacity to influence others, authority is legal right to command

Division of Labor

Division of labor is important and essential for economic progress. Promotes efficiency and effectiveness in an organization and reduces the total cost of products due to its element of specialization on Max Weber’s six principles of bureaucracy. Each employee has a specific task and target hence enhancing productivity, and promoting efficiency by dividing separate tasks and responsibilities.

Selection based on Technical Expertise

Job specialization is defined as a process and knowledge employees gain through education, training, and experience to enable them to become professionals at on particular job. It is important in an organization because it provides skilled workers who are able to fulfill their daily activities.
Hierarchy
Hierarchy is a type of system that shows arrangements or departments from above and below. Hierarchy allows employees to understand and follow the chain of command from top to bottom. Another important reason companies need hierarchy is that it helps managers to hold employees accountable.

Procedures

Procedures are important to any organization and its processes. They can be in form of policies and together provide direction for daily operations. Procedures enhance good conduct in an organization, regulate employee performance, provide terms of service and improve decision-making while boosting internal processes.
Organizational and workplace procedures outline key specific required action plans among employees. Workplace procedures and policies are very important for informing employees process on how to handle certain issues and compliance measures.

Division of Labor

Division of labor is important and essential for economic progress. Promotes efficiency and effectiveness in an organization and reduces the total cost of products due to its element of specialization on Max Weber’s six principles of bureaucracy. Each employee has a specific task and target, enhancing productivity and promoting efficiency by dividing separate tasks and responsibilities.

Career Orientation
promotes loyalty and provides motivation for employees to exert extra effort. The structure is the path to efficient organization.

Impersonality
promotes loyalty and provides motivation for employees to exert extra effort. Structure is the path to efficient organization.

Formal Selection Process
Job specialization is defined as a process and knowledge employees gain through education, training, and experience to enable them to become professionals at on particular job. It is important in an organization because it provides skilled workers who are able to fulfill their daily activities.
Taylor had a simple view about, what motivated people at work, - money.

Taylor's Differential Piece Rate Plan:
If Efficiency is greater than the defined Standard then workers should be paid 120 % of the Normal Piece Rate.
If Efficiency is less than standard then workers should be paid 80% of the Normal Piece Rate.
are fundamental concepts and advisory guidelines for managerial decision making. By using management principles, managers can more easily achieve the objectives and avoid making mistakes in their activities. Management principles can be applied to any kind of organization and to managers at all organizational levels. Principles of management are to the manager as a guidebook of strengths and weaknesses which provides fundamental truths, expressed as quantitative data based on years of experience and testing.
• Fayol's attention was directed at the activities of all managers.
• He develop 14 principles of management that could be taught in schools and applied to all organizational situations.
-This theory formulates 5 functions of management to help managers to supervise their organization well.
1. Division of Work
The first henry fayol principle of management is based on the theory that if an employee is given a specific task to do, they will become more efficient and skilled in it. This is opposed to a multi-tasking culture where an employee is given so many tasks to do at once. In order to implement this principle effectively, look at the current skill sets of each employee and assign them a task that they can become proficient at. This will help them to become more productive, skilled, and efficient in the long run.

2. Authority
This henry fayol principle of management states that a manager needs to have the necessary authority in order to ensure that his instructions are carried out by the employees. If managers did not have any authority, then they would lack the ability to get any work done. However, this authority should come along with responsibility. According to Henri Fayol, there should be a balance between authority and responsibility. If there is more authority than responsibility, the employees will get frustrated. If there is more responsibility than authority, the manager will feel frustrated.

3. Discipline
This principle states that discipline is required for any organization to run effectively. In order to have disciplined employees, managers need to build a culture of mutual respect. There should be a set of organizational rules, philosophies, and structures in place that should be met by everyone. Bending rules or slacking should not be allowed in any organization. In order to achieve this, there is a need for good supervision and impartial judgment.

4. Unity of Command
This principle states that that should be a clear chain of command in the organization. The employees should be clear on whose instructions to follow. According to Fayol, an employee should receive orders from only one manager. If an employee works under two or more managers, then authority, discipline, and stability are threatened. Moreover, this will cause a breakdown in management structure and cause employees to burn out.

5. Unity of Direction
This henry fayol principle of management states that the work to be done should be organized in such a way that employees work in harmony towards the same objective, using one plan, under the direction of one manager. For example, if you have a range of marketing activities such as advertising, budgeting, sales promotion, etc., there should be one manager using one plan for all the marketing activities. The different activities can be broken down for different sub-managers, but they should all work towards a common goal under the direction of one main person in charge of the whole thing.

6. Collective Interest Over Individual Interest
This principle states that the overall interest of the team should take precedence over personal ones. The interest of the organization should not be sabotaged by the interest of an individual. If anyone goes rogue, the organization will collapse.

7. Remuneration
This henry fayol principle of management states that employees should be paid fair wages for the work that they carry out. Any organization that underpays its workers will struggle to motivate and keep quality workers. This remuneration should include both financial and non-financial incentives. Also, there should be a structure in place to reward good performance to motivate employees.

8. Centralization
Centralization refers to the concentration of power in the hands of the authority and following a top-bottom approach to management. In decentralization, this authority is distributed to all levels of management. In a modern context, no organization can be completely centralized or decentralized. Complete centralization means that people at the bottom have no authority over their responsibilities. Similarly, complete decentralization means that there will be no superior authority to control the organization. To use this effectively today, there should be a balance of centralization and decentralization. The degree to which this balance is achieved will differ from organization to organization.

9. Scalar Chain
A scalar chain refers to a clear chain of communication between employees and their superiors. Employees should know where they stand in the hierarchy of the organization and who to go to in a chain of command. To implement this in the workplace, Fayol suggests that there should be an organizational chart drawn out for employees to see this structure clearly.

10. Order
This principle states that there should be an orderly placement of resources (manpower, money, materials, etc.) in the right place at the right time. This ensures the proper use of resources in a structured fashion. Misplacement of any of these resources will lead to misuse and disorder in the organization.

11. Equity
Equity is a combination of kindness and justice. This principle states that managers should use kindliness and justice towards everyone they manage. This creates loyalty and devotion among the employees towards the organization they work for.

12. Stability of Tenure of Personnel
This principle states that an organization should work to minimize staff turnover and maximize efficiency. Any new employee cannot be expected to get used to the culture of an organization right away. They need to be given enough time to settle into their jobs to become efficient. Both old and new employees should also be ensured job security because instability can lead to inefficiency. There should also be a clear and effective method to handle vacancies when they arise because it takes time and expense to train new ones.

13. Initiative
This principle states that all employees should be encouraged to show initiative. When employees have a say as to how best they can do their job, they feel motivated and respected. Organizations should listen to the concerns of their employees and encourage them to develop and carry out plans for improvement.

14. Esprit de Corps
Esprit de Corps means “Team Spirit”. This henry fayol principle of management states that the management should strive to create unity, morale, and co-operation among the employees. Team spirit is a great source of strength in the organization. Happy and motivated employees are more likely to be productive and efficient.
Planning
Managers must plan for future conditions, develop strategic objectives and secure the achievement of future goals. Therefore, managers must evaluate future contingencies affecting the organization, and shape the future operational and strategic landscape of the company.
Organizing
Managers must organize the workforce in an efficient manner and structure and align the activities of the organization. Managers must also train and recruit the right people for the job, and always secure a sufficiently skilled and educated workforce.
Commanding
Managers must supervise subordinates in their daily work, and inspire them to achieve company goals. Likewise it is the responsibility of managers to communicate company goals and policies to subordinates. The commanding of subordinates should always be consistent with company policies, and every manager should treat subordinates in line with the standards of the company.
Coordinating
Managers must harmonize the procedures and activities performed by the company, meaning that every activity of each organizational unit should complement and enrich the work of another.
Controlling
Managers must control that company activities are in line with general company policies and objectives. It is also the responsibility of the manager to observe and report deviations from plans and objectives, and to make initiatives to correct potential deviations.
Elton 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. Hawthorne Effect can be summarized as “Employees will respond positively to any novel change in a work environment like better illumination, clean work stations, relocating workstations, etc. Employees are more productive because they know they are being studied.
Behavioral Theory of Leadership is a leadership theory that considers the observable actions and reactions of leaders and followers in a given situation.
The behavioral management theory is focused on the human aspects of work. They are also often referred to as the human relations movement. These theories aspire to gain a better understanding of human behavior at work to improve productivity. It focuses on behavioral aspects like motivation, conflict, expectations, and group dynamics.
The Hawthorne effect is a phenomenon observed as a result of an experiment conducted by Elton Mayo. In an experiment intended to measure how a work environment impacts worker productivity, Mayo’s researchers noted that workers productivity increased not from changes in environment, but when being watched
• Effective Communication Skills To Facilitate Human Relations In The Workplace
New and innovative channels of communication can be opened to interact freely with each other. Managers have the responsibility to ensure that the employees remain motivated and value their work. Oral or written communication (emails, letters), etc must be enhanced at the workplace. Leaders or managers must be flexible with the other employee’s individual needs and must help them to attain even the organizational goals by motivating them and increasing their productivity level.
• Resolving Conflicts By The Manager Inside The Organization Could Enhance Human Relations
Conflicts arising out of differences in the workplace due to culture, background, personality, etc could easily be resolved by the manager. Each employee of the organization should be heard of his opinion so that effective coordinated teamwork can be created.
Conflicts amongst the employees can be resolved through dialogue and proper human resource handling skills that can restore peace and harmony in the team whenever any disagreement arises.
* Managers Must Be Well Equiped With The Multiple Tasking And In Managing Team And Interpersonal Relationships
Managers or leaders must be good at multitasking at their job. They must know how to prioritize work. Their work must be smooth and always before the deadline. They must be able to adapt to policy or workplace changes to suit the employee’s flow of work.
* Striking Negotiations Between The Parties By The Manager To Create Balance In Relationships At The Workplace
Strong negotiation skills are the most important criteria of workplace function. It is very important to balance the terms and conditions of both parties while reaching any agreement. Such agreements could be between stakeholders, creditors or third parties and between the company.
* Well Organized Work Environment Must Be Ensured By The Manager To Create Balance In Relationships.
Having an organized structure of balance in the workplace is very important for an organization and its employees. Documentation, paperwork or any other manual or nonmanual work should be done in an organized manner. Staying organized is a must when time management and efficient delivery of work is important.

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