TOJ VIMARU 2016 TYPES OF MANAGEMENT (1)

Publishing as Prentice Hall 2–2Major Approaches to Management... Publishing as Prentice Hall 2–4Major Approaches to Management... Publishing as Prentice Hall 2–9Taylor’s Scientific Manag

TYPES OF

APPROACHES

TO MANAGEMENT

Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 2–2

Major Approaches to Management

Organizational Theory

The origins of mechanistic organization

• Instruments created to achieve other ends – Greek: organon = tool or instrument

– Importance rose along with the industrial revolution

• “Mechanized” army – Frederick the Great, ruled from 1740-86 – introduced rank and uniform

– Operating through means of standardized parts

• Max Weber early twentieth century – First definition of bureaucracy as a form of organization (precision, speed, clarity, etc.)

Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 2–4

Major Approaches to Management

Classical management approaches

Frederick Taylor

 Scientific Management

 Every job a ‘science’

 Pick workers with right abilities

 Carefully train and provide incentives

 Support worker by planning work and removing obstacles

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Says “Management is a science There is one best way and one best person to

do the task I love efficiency and I love to study people at work Management should be an academic discipline.”

His work influenced:

Bringing psychology into the workplace Gantt Chart and planning

Harvard University offering management Degrees

– workers observed to identify “one best way” of completing a task

• Theorized three basic categories of worker motivation:

1 “The Carrot”: Financial rewards for workers who perform well

2 “The Stick”: Originally tried fining workers, that failed, simply reassign them

3 “Factory Ethos”: Understanding between laborers and managers to work in harmony.

Organizational Theory

Henry Ford – Student of Scientific Management

Late Craft

Fall,1913 Assy Line

Spring 1914 % Reduced Engine 594 226 62

Minutes of Effort to Assemble

Model-T Production (Highland Park:1910)

Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 2–9

Taylor’s Scientific Management Principles

1 Develop a science for each element of an individual’s work, which will replace the old rule-of-thumb method

2 Scientifically select and then train, teach, and develop the worker

3 Heartily cooperate with the workers so as to ensure that all work

is done in accordance with the principles of the science that has been developed

4 Divide work and responsibility almost equally between management and workers Management takes over all work for which it is better fitted than the workers

Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 2–11

Fayol’s 14 Principles of Management

to the general interest

Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall

Weber’s Bureaucracy

Advantages of bureaucracy

 Clear division of labor

 Clear hierarchy of authority

 Formal rules and procedures

 Impersonality

 Careers based on merit

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Disadvantages of bureaucracy

– Inability to achieve goals & adapt

– Preoccupation with the process itself

– Depersonalization– Erosion of individual freedom.

Chapter 2

15

Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 2–16

Major Approaches to Management

Follett’s organizations as communities

McGregor’s Theory X and Theory Y

- work sheet – self test

McGregor’s Theory X and Theory Y

 Theory X managers create situations where

workers become dependent and reluctant

 Theory Y managers create situations where

workers respond with initiative and high performance

 Classical management principles and

practices inhibit worker maturation and are inconsistent with the mature adult personality

Argyris

 Management practices should accommodate

the mature personality by:

 Increasing task responsibility

 Increasing task variety

 Using participative

decision making

Maslow’s Need Hierarchy Theory

• According to American psychologist Abraham Maslow, people are

motivated by unsatisfied needs

• According to Maslow a good manager will identify which levels of need are active for the employee to get motivated

Maslow’s Hierarchy

• Majorly activates a behavior

• Answers the question ‘why’ a person behaves so

• It is a strong desire and ambition to get something done

• Basic ingredient is to have a clear vision and a crisp plan of what to achieve

Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 2–28

Major Approaches to Management

Quantitative approach

Making informed decisions

Evidence based management

- using systematic analysis

Management science, operations research, operations management

Value chain analysis, supply chain management,

inventory management, quality control

Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 2–30

Major Approaches to Management

knowledge management

organizational learning

‘knowledge constantly makes itself obsolete’

-Peter Drucker

An organization that encourages and helps all members to learn

continously, while emphasizing information sharing, teamwork,

empowerment, and participation

- Peter Senge

contingency thinking

 Tries to match managerial responses with

problems and opportunities unique to different situations

 No “one best way” to manage

 Appropriate way to manage

depends on the situation

 intuition vs pattern recognition

Situational Leadership Theory

A contingency theory that focuses on followers’

readiness.

Leader: decreasing need

for support and supervision

Follower readiness: ability and willingness

Unable and

Unwilling Unable butWilling Able andWilling

Directive High Task and Relationship

Orientations

Supportive Participative

Able and Unwilling

Monitoring

the appreciative approach

the FISH-theory

world’.

 The owner John Yokoyama met with staff in 1965

 Low motivation and work spirit

 Low happiness at work

 ”what do we want to be ?”

 Youngest employee: ”We want to be known world wide!”

 Play, Presence, Service

 Attracts thousands of people from all over the world

 Commitment to reach the goal (world fame).

Four values in the FISH-model

1. Play

1 to be spontaneous and creative

2 to be personally developing

2. Make them happy

1 ”them” = customers, colleagues, friends, family Make a positive impression Make something unexpected/different

3. Choose your attitude

1 To learn to be concious about your own chosen attitude Thinking about it and takes responsibility for his own actions.

4. Be present

1 No half-hearted efforts Everybody must be treated individually

film clip & home page

 Film clip:

 http://www.youtube.com/watch?v=-ZKiJejNRtw

 Homepage:

 http://www.pikeplacefish.com/

 Discuss in pairs:

 Is the FISH-theory applicable in all types of companies ?

Work

 Discuss in groups of three:

 Is the FISH-theory a motivationtheory?

 How do you see motivation theories developed in your company/class/school ?

The word leadership can refer to:

• The process of leading

• Those entities that

perform one or more acts

Inspires trust controls

Asks what and why? Asks how and when

Eye on the horizon Eye on the bottom line

Does the right thing Does the thing right

Leadership Qualities

7 Self-knowledge

– This valuable trait will protect you from overreaching

8 Passion

– Fortunately, this trait is prized and encouraged in many cultures If

you are passionate about something, that's where you will lead

Basic Leadership Style

• Autocratic

• Bureaucratic

• Laissez-faire

• Democratic

 Who put him in charge?

 Who makes the decisions?

 Does anyone get a say?

Style1: Autocratic

• Greatly criticized during the past

30 years

• Gen X staff highly resistant

• Autocratic leaders:

• Rely on threats and

punishment to influence staff

• Do not trust staff

• Do not allow for employee

Not all bad

 Sometimes the most effective style to use

 When:

• New, untrained staff do not know which tasks to perform or which procedures

to follow

• Effective supervision provided only through detailed orders and instructions

• Staff do not respond to any other leadership style

• Limited time in which to make a decision

• A manager’s power challenged by staff

• Work needs to be coordinated with another department or organization

Should not be used

 When:

• Staff become tense, fearful, or resentful

• Staff expect their opinions heard

• Staff depend on their manager to make all their decisions

• Low staff morale, high turnover and absenteeism and work stoppage

Style2: Bureaucratic

Bureaucratic Leadership Style

• Manages “by the book¨

• Everything done according to

procedure or policy

• If not covered by the book,

referred to the next level above

• A police officer not a leader

• Enforces the rules

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Second level

Third level

Fourth level

Fifth level

Most effective

• When:

• Staff performing routine tasks over and over

• Staff need to understand certain standards or procedures

• Safety or security training conducted

• Staff performing tasks that require handling cash

• When:

• Work habits form that are hard to break, especially if they are no longer useful

• Staff lose their interest in their jobs and in their co-workers

• Staff do only what is expected of them and no more

What do YOU think?

Wow! That was a really good idea!

Style 3: Democratic

Democratic Leadership Style

• Also known as participative style

• Encourages staff to be a part of

the decision making

• Keeps staff informed about

everything that affects their work

and shares decision making and

problem solving responsibilities

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Second level

Third level

Fourth level

Fifth level

The Leader

• A coach who has the final say, but

gathers information from staff

before making a decision

• Produce high quality and high

quantity work for long periods of

time

• Staff like the trust they receive

and respond with cooperation,

team spirit, and high morale

The Democratic Leader

• Develops plans to help staff

evaluate their own performance

• Allows staff to establish goals

• Encourages staff to grow on the job

Most Effective

• When:

• Wants to keep staff informed about matters that affect them

• Wants staff to share in decision-making and problem-solving duties

• Wants to provide opportunities for staff to develop a high sense of personal growth and job satisfaction

• A large or complex problem that requires lots of input to solve

• Changes must be made or problems solved that affect staff

• Want to encourage team building and participation

Democratic leadership should not be used when …

• Not enough time to get everyone’s input

• Easier and more cost-effective for the manager to make the decision

• Can’t afford mistakes

• Manager feels threatened by this type of leadership

• Staff safety is a critical concern

“The best argument against democracy is a five-minute

conversation with the average voter.”

Winston Churchill

“Democracy is the worst form of government except for all those others that have been tried.”

Winston Churchil

“Democracy never lasts long It soon wastes, exhausts, and murders itself There never was a democracy yet that did not commit suicide.”

~

John Adams, 2nd President of the United States

“A democracy is nothing more than mob rule, where fifty-one percent of thepeople may take away the rights of the other forty-nine.”

Thomas Jefferson, 3rd President of the United States

Bored and unresponsiveWhatever attitudeNothing gets accomplished

Style 4: Laissez-faire

Laissez-Faire Leadership Style

• Also known as the “hands-off¨

style

• The manager provides little or no

direction and gives staff as much

freedom as possible

• All authority or power given to

the staff and they determine

goals, make decisions, and

resolve problems on their own

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Second level

Third level

Fourth level

Fifth level

An effective style to use …

• Staff highly skilled, experienced,

and educated

• Staff have pride in their work and

the drive to do it successfully on

their own

• Outside experts, such as staff

specialists or consultants used

• Staff trustworthy and

Should not be used

• Staff feel insecure at the unavailability of a manager

• The manager cannot provide regular feedback to staff on how well they are doing

• Managers unable to thank staff for their good work

• The manager doesn’t understand his or her responsibilities and hoping the staff cover for him or her