5 Managerial Theories Scientific Management Frederick Taylor The One Best Way Standardize fair days work Substituting

research science rules for rules of thumb Scientifically select, train, teach and develop employees Provide detailed instructions and supervision of each worker Determine accurately from the science the correct time and methods for each job (time and motion studies)

Bureaucracy Theory Maximillian Carl Emil Weber Division of Labor with highly skilled employees in each position Consistent organization rules and procedures Hierarchy of authority/chain of command Impersonality of interpersonal relationships as SOP Employment/Advancement based on competence Means for design/manage large organization

Behavioral Approach- Hawthorne Studies 1930s Elton Mayo Shift of management theory away from pure mechanistic and economic views of worker motivation and recognition that social relationships could be greater motivator. Work groups influence individual worker output Supervisors attention has significant influence on productivity Effort begun to have a happy worker Later partly refuted being productive more likely to lead to satisfaction then vice-versa

Theory X and Theory Y Motivation Theory Douglas McGregor McGregor developed two theories of human behavior at work: Theory and X and Theory Y. He did not imply that workers would be one type or the other. Rather, he saw the two theories as two extremes - with a whole spectrum of possible behaviors in between. Theory X workers could be described as follows: Individuals who dislike work and avoid it where possible Individuals who lack ambition, dislike responsibility and prefer to be led Individuals who desire security The management implications for Theory X workers were that, to achieve organizational objectives, a business would need to impose a management system of coercion, control and punishment. Theory Y workers were characterized by McGregor as: Consider effort at work as just like rest or play Ordinary people who do not dislike work. Depending on the working conditions, work could be considered a source of satisfaction or punishment Individuals who seek responsibility (if they are motivated) The management implications for Theory X workers are that, to achieve organizational objectives, rewards of varying kinds are likely to be the most popular motivator. The challenge for management with Theory Y workers is to create a working environment (or culture) where workers can show and develop their creativity.

Henri Fayol (1841 - 1925), France 14 Principles of Management 1.Division of work Reduces the span of attention or effort for any one person

or group. Develops practice and familiarity 2. Authority The right to give an order. Should not be considered without reference to responsibility Outward marks of respect in accordance with formal or informal agreements between firm and its employees One man superior One head and one plan for a group of activities with the same objective The interests of one individual or one group should not prevail over the general good. This is a difficult area of management Pay should be fair to both the employee and the firm Is always present to a greater or less extent, depending on the size of the company and quality of its managers The line of authority from top to bottom of the organisation A place for everything and everything in its place; the right man in the right place A combination of kindliness and justice towards the employees Employees need to be given time to settle into their jobs, even though this may be a lengthy period in the case of the managers Within the limits of authority and discipline, all levels of staff should be encouraged to show initiative Harmony is a great strength to an organisation; teamwork should be encouraged

3. Discipline 4. Unity of command 5. Unity of direction

6. Subordination of individual interests to the general interest 7. Remuneration 8. Centralisation 9. Scalar chain 10. Order

11. Equity

12. Stability of tenure of personnel

13. Initiative

14. Esprit de corps

Functions of management

to forecast and plan to organize command to coordinate to control 5 Leadership Theories

1. "Great Man" Theories: Great man theories assume that the capacity for leadership is inherent that great leaders are born, not made. These theories often portray great leaders as heroic, mythic and destined to rise to leadership when needed. The term "Great Man" was used because, at the time, leadership was thought of primarily as a male quality, especially in terms of military leadership.

2. Trait Theories: Similar in some ways to "Great Man" theories, trait theories assume that people inherit certain qualities and traits that make them better suited to leadership. Trait theories often identify particular personality or behavioral characteristics shared by leaders.

3. Contingency Theories: Contingency theories of leadership focus on particular variables related to the environment that might determine which particular style of leadership is best suited for the situation. According to this theory, no leadership style is best in all situations. Success depends upon a number of variables, including the leadership style, qualities of the followers and aspects of the situation.

4. Situational Theories: Situational theories propose that leaders choose the best course of action based upon situational variables. Different styles of leadership may be more appropriate for certain types of decisionmaking. For example, in a situation where the leader is the most knowledgeable and experienced member of a group, an authoritarian style might be most appropriate. In other instances where group members are skilled experts, a democratic style would be more effective.

5. Behavioral Theories: Behavioral theories of leadership are based upon the belief that great leaders are made, not born. Rooted in behaviorism, this leadership theory focuses on the actions of leaders not on mental qualities or internal states. According to this theory, people can learn to become leaders through teaching and observation.