MODULE 3 MANAGEMENT THEORIES

Topic Outline
1. Scientific Management Theories
a. Frederick Winslow Taylor
b. Frank and Lillian Gilbreth
c. Henry Gantt
2. Classical Management Theories
a. Max Weber
b. Henri Fayol
c. Lyndall Urwick
3. Relational Management Theories
a. Elton Mayo
b. Kurt Lewin
c. Mary Parker Follet
4. Behavioral Management Theories
a. Douglas McGregor
b. Abraham Maslow
c. Frederick Herzberg
SCIENTIFIC MANAGEMENT THEORIES
• Scientific management is a theory of management that analyzes and synthesizes workflows.
• Its main objective is improving economic efficiency, especially labor productivity. It was one of
the earliest attempts to apply science to the engineering of processes to management.
• Also known as Taylorism
FREDERICK WINSLOW TAYLOR (1856-1915)
• Father of scientific management
• The Principles of Scientific Management
• Productivity would increase if jobs were
optimized and simplified
1. Science, Not Rule of Thumb. This principle says that we should not get stuck in a set routine
with the old techniques of doing work, rather we should be constantly experimenting to develop
new techniques which make the work much simpler, easier and quicker.
2. Harmony, Not Discord. As per this principle, such an atmosphere should be created in the
organization that labor (the major factor of production) and management consider each other
indispensable.
• Taylor has referred to such a situation as a ‘Mental Revolution.’ Taylor firmly believed that the
occurrence of a mental
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revolution would end all conflicts between the two parties and would be beneficial to both of
them.
Cooperation, Not Individualism. According to this principle, all the activities done by different
people must be carried on with a spirit of mutual cooperation.
• Taylor has suggested that the manager and the workers should jointly determine standards.
• This increases involvement and thus, in turn, increases responsibility. In this way we can
expect miraculous results.
Development of Each and Every Person to His/ Her Greatest Efficiency and Prosperity:
• According to this principle, the efficiency of each and every person should be taken care of
right from his selection. A proper arrangement of everybody’s training should be made.
FRANK AND LILLIAN GILBRETH
Lilian Gilbreth- First Lady of Management
Job simplification
Used scientific insights to develop a study method based on the analysis of work motions,
consisting in part of filming the details of a worker’s activities while recording the time it took to
complete those activities.
Filming
o helped to create a visual record of how work was completed and emphasized areas for
improvement.
o served the purpose of training workers about the best way to perform their work.
HENRY GANTT (1861-1919)
an associate of Taylor.
Best contribution to management:
o the task and bonus system. GANTT CHART
a tool that provides a visual (graphic) representation of what occurs over the course of a project.
The focus of the chart is the sequential performance of tasks that make up a project.
It identifies key tasks, assigns an estimated time to complete the task, and determines a starting
date for each element of a task.
FAR EASTERN UNIVERSITY INSTITUTE OF HEALTH SCIENCES AND NURSING
DEPARTMENT OF NURSING
NUR 1220 NURSING LEADERSHIP AND MANAGEMENT NURSE AS A LEADER

FOUR IMPORTANT PRINCIPLES OF SCIENTIFIC MANAGEMENT

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• Gantt differentiated between a terminal element that must be completed as part of a larger
task.
• The related terminal elements together created what he called the summary element.
Figure 3. Model Gantt Chart
CLASSICAL MANAGEMENT THEORIES
examinations, education, or training. There is no
nepotism.
• Career Orientation. Management is separate from
ownership, and managers are career employees.
Protection from arbitrary dismissal is guaranteed.
• Formal Rules and Regulations. Rules and regulations are documented to ensure reliable and
predictable behavior. Managers must depend on
formal organizational rules in employee relations. • Impersonality. Rules are applied uniformly to
everyone. There is no preferential treatment or
favoritism.
HENRY FAYOL (1841-1925)
• Father of General Administration
14 PRINCIPLES OF MANAGEMENT
1. Division of Work– When employees are specialized, output can increase because they
become increasingly skilled and efficient.
2. Authority– Managers must have the authority to give orders, but they must also keep in mind
that with authority comes responsibility.
3. Discipline– Discipline must be upheld in organizations, but methods for doing so can vary. 4.
Unity of Command – Employees should have
only one direct supervisor.
5. Unity of Direction – Teams with the same
objective should be working under the direction of one manager, using one plan. This will
ensure that action is properly coordinated.
6. Subordination of Individual Interests to the General Interest – The interests of one employee
should not be allowed to become more important than those of the group. This includes
managers.
7. Remuneration – Employee satisfaction depends on fair remuneration for everyone. This
includes financial and non-financial compensation.
8. Centralization – This principle refers to how close employees are to the decision-making
process. It is important to aim for an appropriate balance.
9. Scalar Chain– Employees should be aware of where they stand in the organization's
hierarchy, or chain of command.
10. Order– he workplace facilities must be clean, tidy and safe for employees. Everything
should have its place.
11. Equity – Managers should be fair to staff at all times, both maintaining discipline as
necessary and acting with kindness where appropriate.
12. Stability of Tenure of Personnel – Managers should strive to minimize employee turnover.
Personnel planning should be a priority.
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It is based on the belief that workers only have physical and economic needs.
It does not take into account social needs or job satisfaction, but instead advocates a
specialization of labor, centralized leadership and decision- making, and profit maximization.
o Hierarchical structure o Specialization
o Incentive
MAX WEBER (1864—1920)
Bureaucratic Theory
Father of Organization Theory
Interested in industrial capitalism, an economic system where industry is privately controlled and
operated for profit.
Weber made a distinction between authority and power.
Weber believed that power educes obedience through force or the threat of force which induces
individuals to adhere to regulations.
Types of power in an organization
o Traditional Power o Charismatic Power
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CHARACTERISTICS OF THE BUREAUCRACY
• Hierarchical Management Structure. Each level controls the levels below and is controlled by
the level above. Authority and responsibilities are clearly defined for each position.
• Division of Labor. Tasks are clearly defined, and employees become skilled by specializing in
doing one thing. There is clear definition of authority and responsibility.
• Formal Selection Process. Employee selection and promotion are based on experience,
competence, and technical qualification demonstrated by
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13. Initiative– Employees should be given the necessary level of freedom to create and carry
out plans.
14. Esprit de Corps – Organizations should strive to promote team spirit and unity.
1. purpose of an organization it its raison d'être.
2. The principle of specialization – one group, one
function.
3. The principle of coordination – the purpose of
organizing is to facilitate coordination or unity of
effort.
4. The principle of authority – in every organized
group, supreme authority must be located somewhere, and there should be a clear line of
authority to every member of the group.
5. The principle of responsibility– a superior may be held accountable for the actions of
subordinates.
6. The principle of definition– jobs, duties and relationships should be clearly defined.
7. The principle of correspondence– in every position, responsibility and authority should
correspond with one another.
8. The principle of span of control– no person should supervise more than 5–6 line reports
whose work is interlocked.
9. The principle of balance– it is essential that the various units of an organization are kept in
balance.
10. The principle of continuity– reorganization is a continuous process and provision should be
made for it.
RELATIONAL MANAGEMENT THEORIES
• Relationship management involves strategies to build client support for a business and its
offerings and increase brand loyalty.
• Most often, relationship building occurs at the customer level, but it is valuable between
businesses as well.
• In the era of the Human Relations Theory, the concept of ‘labor motivation’ is given a new
meaning compared to the Scientific Management era.
• The fact that personal attention led to improved performances was a completely new
perspective.
• The term workers is gradually replaced with employee, which more explicitly implies that these
people are thinking people who can positively contribute to the organization.
ELTON MAYO
• Founder of the Human Relations Theory. • Hawthorne Experiment
o Prior to this trend, Elton Mayo already started an experiment in the Hawthorne plants in 1924;
the Hawthorne experiment. There was a great deal of discontent among the 30,000 workers in
the Hawthorne plants in Chicago in the early twenties of the last century. This was somewhat
peculiar, because this phone parts plant already acted extremely progressively towards its
workers (through pensions and sickness benefits), something which was almost unthinkable in
this period.
o Elton Mayo and his assistants, including Fritz Roethlisberger, conducted research into
changing working conditions.
o They experimented with light, duration of breaks and working hours. A group of women were
exposed to either more or less light. It turned out that, regardless of the amount and duration of
lighting, this had a positive effect on their performances. The same was true for rest periods;
shorter or longer breaks both led to an increase in labor productivity.
o Results of Hawthorn experiment
§ Individual employees must be seen as
members of a group
§ Salary and good working conditions are
less important for employees and a sense of
belonging to a group;
§ Informal groups in the workplace have a
strong influence on the behaviour of
employees in said group;
§ Managers must take social needs, such as
belonging to an (informal) group, seriously
KURT LEWIN (1890-1947)
Kurt Lewin's major contributions to management theory are:
1. the concepts of field theory
2. action research (the interweaving of laboratory
experiment, systematic research in the field, and
client service)
3. the study of group dynamics
4. aspects of sensitivity training techniques
LYNDALL URWICK (1891-1984)
PRINCIPLES OF MANAGEMENT
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 DOUGLAS MC GREGOR (1906 – 1 October 1964)
THEORY X
Figure 4. Change Model by Lewin
MARY PARKER FOLLET
• Mother of Conflict Management
• Coordinating Sociological and psychological
aspects of management
• Superiors and subordinates mutually influence
one another
FОLLЕTT’Ѕ MAJOR IDEAS
1. Constructive Conflict
• Fоllеt аrguеѕ that conflict, аѕ a natural аnd inevitable раrt оf lifе, does not nесеѕѕаrilу have tо
lеаd tо deleterious outcomes.
• Rаthеr, if аррrоасhеd with thе right аnаlуtiсаl аnd imаginаtivе tооlѕ a соnfliсt саn рrеѕеnt аn
opportunity fоr роѕitivе оr constructive dеvеlорmеnt.
2. Coordination
• Coordination mеаnѕ to intеgrаtе (i.е. bring together) thеѕе асtivitiеѕ for асhiеving thе
objectives of thе оrgаnizаtiоn.
3. Power, Authority, and Control
• Pоwеr аѕ “thе ability tо mаkе thingѕ happen, to be a саuѕаl аgеnt, to initiate сhаngе.”
• Authоritу аѕ vеѕtеd роwеr– thе right to dеvеlор аnd еxеrсiѕе роwеr
• Cоntrоl tends tо bе self-control. 4. Leadership
• a leader iѕ “thе man whо саn energize hiѕ group, who knоwѕ hоw tо еnсоurаgе initiаtivе, hоw
to drаw frоm аll whаt еасh hаѕ tо givе.”
BEHAVIORAL MANAGEMENT THEORIES
The behavioral management theory is often called the human relations movement because it
addresses the human dimension of work. Behavioral theorists believed that a better
understanding of human behavior at work, such as motivation, conflict, expectations, and group
dynamics, improved productivity.
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Theory X managers tend to take a pessimistic view of their people and assume that they are
naturally unmotivated and dislike work. As a result, they think that team members need to be
prompted, rewarded or punished constantly to make sure that they complete their tasks.
Work in organizations that are managed like this can be repetitive, and people are often
motivated with a "carrot and stick" approach. Performance appraisals and remunerations are
usually based on tangible results, such as sales figures or product output, and are used to
control staff and "keep tabs" on them.
This style of management assumes that workers: o Dislike their work.
o Avoid responsibility and need constant
direction.
o Have to be controlled, forced and
threatened to deliver work.
o Need to be supervised at every step.
o Have no incentive to work or ambition,
and therefore need to be enticed by
rewards to achieve goals.
According to McGregor, organizations with a Theory X approach tend to have several tiers of
managers and supervisors to oversee and direct workers. Authority is rarely delegated, and
control remains firmly centralized. Managers are more authoritarian and actively intervene to get
things done.
Although Theory X management has largely fallen out of fashion in recent times, big
organizations may find that adopting it is unavoidable due to the sheer number of people that
they employ and the tight deadlines that they have to meet.
THEORY Y
Theory Y managers have an optimistic, positive opinion of their people, and they use a
decentralized, participative management style. This encourages a more collaborative,
trust-based relationship between managers and their team members.
People have greater responsibility, and managers encourage them to develop their skills and
suggest improvements. Appraisals are regular but, unlike in Theory X organizations, they are
used to encourage open communication rather than control staff. Theory Y organizations also
give employees frequent opportunities for promotion.
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This style of management assumes that workers are: o Happy to work on their own initiative.
o More involved in decision making.
o Self-motivated to complete their tasks.
o Enjoy taking ownership of their work.
o Seek and accept responsibility and need little
direction.
o View work as fulfilling and challenging.
o Solve problems creatively and imaginatively. Theory Y has become more popular among
organizations. This reflects workers' increasing desire for more meaningful careers that provide
them with more than just money.
ABRAHAM MASLOW
Abraham Maslow is among the most prominent psychologists of the twentieth century, and the
hierarchy of needs, accompanied by the pyramid representing how human needs are ranked is
an idea familiar to most business students and managers. Maslow’s theory is based on a simple
premise: Human beings have needs that are hierarchically ranked.
Some needs are basic to all human beings, and in their absence, nothing else matters. As we
satisfy these basic needs, we start looking to satisfy higher- order needs.
Once a lower-level need is satisfied, it no longer serves as a motivator.
The most basic of Maslow’s needs are physiological needs.
o Physiological needs refer to the need for air, food, and water. Imagine being very hungry. At
that point, all your behavior will probably be directed at finding food. Once you eat, though, the
search for food ceases and the promise of food no longer serves as a motivator.
o Once physiological needs are satisfied, people tend to become concerned about safety. Are
they safe from danger, pain, or an uncertain future? One level up, social needs refer to the need
to bond with other human beings, to be loved, and to form lasting attachments. In fact, having
no attachments can negatively affect health and well-being
o The satisfaction of social needs makes esteem needs more salient. Esteem needs refer to the
desire to be respected by one’s peers, feeling important, and being appreciated. Finally, at the
highest level of the hierarchy, the need for self-actualization refers to “becoming all you are
capable of becoming.” This need manifests itself by acquiring new skills, taking on new
challenges, and behaving in a way that will lead to the satisfaction of one’s life goals
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Figure 5. Maslow’s Hierarchy of Needs