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Peter Drucker's 3 Major Tasks of Management
- a. Decide the purpose and mission of the organization
- b. To make work productive
- c. To manage social impacts and responsibilities
Four Primary Views of Management
- Human Activity
Major purpose of the study of management
To learn how to apply these principles, concepts and theories at the right time under the right circumstances to produce desired results.
Four Management Functions
In context of management theory, a person's ability to influence the activities of followers in an organizational setting.
The ablitity to influence others to pursue a common goal
Managerial activities that leads to definition of objectives and to the determination of appropriate means to achieve those objectives.
Capstone Activity of Management
Managerial activity that results in the design of a formal structure of task and authority
Turning plans into actions.
Managerial actions and decisions that managers undertake to ensure that actual results are consistent with desired results.
Three Elements of the Controlling Function
- a. Establish Standards of Performance
- b. Collect of information that indicates deviations between actual performance and established standards.
- c. Act to correct performance that does not meet standards.
Three Approaches to Management Study
- a. Classical
- b. Behavioral
- c. Management Science
The Classical Approach to Management
An approach that places reliance on such management principles as unity of command, a balance between authority and responsibility, division of labor, and delegation to establish relationships between managers and subordinates.
Two Perspectives of the Classical Approach to Management
- Scientific Measurement - Management of Work
- Classical Organization Theory - Management of the Organization
Focus is on the management of work.
The practices introduced by Frederick W. Taylor to accomplish the management job. Taylor advocated the use of scientific procedures to find the "one best way" to do a job.
Frederick W. Taylor's Keys to Harmony
- a. Discover the "one best way" to do a job
- b. Determine the optimum work pace
- c. Train the people to do the job properly
- d. Reward successful performance by using an incentive pay system.
Frederick W. Taylor's Principles of Effective Management
- a. Study the way workers perform their tasks, gather all of the informal knowledge that workers possess, and experiment with methods of improving the way tasks are performed.
- b.Codify the new methods of performing tasks into written rules and standard operating procedures.
- c. Carefully select workers so that they possess skills and abilities that match the needs of the task, and train them to perform the task according to the rules and procedures.
- d. Establish a fair or acceptable level of performance for a task, and then develop a pay system that provides a reward for the performance above the acceptable level.
Time and Motion Study
Initially by Frank and Lillian Gilbreth.
The process of analyzing work to determine the most efficient motions and performing tasks and to determine the appropriate elapsed time for the completion of the task or job.
Classical Organization Theory
A body of ideas that focused on the problems faced by top managers of large organizations; its two major purposes were to develop basic principles that guide the design creation and maintenance of large organizations and to identify the basic functions of managing organizations.
Classical Organization Theory Two Major Principles
- a. Develop basic principles that could guide the design, creation, and maintenance of large organizations.
- b. Identify the basic functions of managing organizations.
Max Webber's Theory of Bureaucracy
An organization design that relies on specialization of labor, a specific authority hierarchy, a formal set of rules and procedures, and rigid promotion and selection criteria.
The Theory of Bureacracy
- a. In a bureaucracy, a manager's formal authority derives from the position held within the organization.
- b. In a bureaucracy, people should occupy positions because of their performance, not because of social standing or personal contacts.
- c. Clearly specify the extent of each position's formal authority and task responsibilities and its relationship to the other positions in an organization.
- d. So that authority can be exercised effectively in an organization, positions should be arranged hierarchically so employees know whom to report to, and who reports to them.
- e. Managers must create a well-defined system of rule, standard operating procedures, and norms so that they can effectively control behavior within an organization.
Fayol's 14 Principles of Classical Organizational Theory
Henri Fayol was the CEO of Comambault Mining.
- a. Division of Labor
- b. Management Authority and Responsibility
- c. Unity of Command
- d.Line of Authority
- e. Centralization
- f. Unity of Direction
- g. equity
- h. Order
- i. Initiative
- j. Discipline
- k. Remuneration of personnel - pay
- l. Stability of Tenure of personnel
- m. Coordination of individual interests to common interests.
- n. Esprit de Corps
Greatest Contribution of Classical Approach
It identified management as an important element of organized society.
Major Criticism of the classical approach
The majority of insights are too simplistic for today's complex organizations.
The Behavioral Approach to Management
Emphasizes people and how the structure of an organization affect their behavior and performance. The advocates of a behavioral approach believe that the classical approach suppresses personal development because it is so rigid and restrictive.
Two branches of the behavioral approach to management
Human Relations approach
Behavioral Sciences approach
Human Relations approach
Refers to the manner in which managers interact with subordinates.
Managers must know why their subordinates behave as they do and what psychological and social factors influence them.
Behavioral Sciences Approach
Believe that humans are more complex than the "economic man" of the classical approach and the "social man" description of the human relations approach.
Concentrates on nature of work and the fulfilment of human need of expression through skills and abilities.
The Hawthorne studies
Management studies involving teams of researchers studying work conditions and pay plans conducted at the Western Electric Hawthorne plant.
The most famous studies conducted in the field of management.
The tendency of people who are being observed or involved in a research effort to react differently than they otherwise would
Limitations of the Behavioral Approach
- a. Translation of technical scientific findings into meaningful management tools and policies.
- b. One behavioral scientist may have different suggestions than another for the same management problem
Management Science Approach
Formerly known as operations research approach.
Involves mixed teams of specialists from fields required to address a specific problem
Key feature of management science approach
Use of mathematics and statistics to aid in resolving production and operations problems.
Focus is technical rather than human behavior problems.
Integration of all three
A way to think about organizations and management problems; views an organization as interrelated parts with a unified purpose; surviving and thriving in its environment.
Organizations are systems with all parts linked together.
Integration of all three
Considers an organization's objectives, organization, job design, human resources, environment, and managerial skills as interacting and affecting the type of management decisions made about planning, organizing, leading and controlling.
Systems Approach - Open Systems
An organization that interacts with its environment and uses the feedback received to make changes and modifications.
Systems Approach - Feedback
The component of a system whereby the effects of the system on its environment influence the future functioning of the system.
Situationalist theory of Leadership
An approach that advocates that leaders understand their own behavior, the behavior of their subordinates, and the situations before they utilize a particular leadership style.