Manageme

nt Theories
MANAGEMENT THEORY: There are many theories and ideas regarding the best way to manage people
and organization

ORIGIN OF MANAGEMENT: Management can be traced back to the construction of the Egyptian pyramid

ADAM SMITH: - Came up with “Division of Labour”

- Give people one specialized task to repeat
- They become experts
- When everyone is an expert, the organization is more efficient

1. CLASSICAL MANAGEMENT
Based on the belief that workers are rational and willing to work that is driven by economic concerns.
Workers are expected to rationally consider opportunities made available to them and to do whatever is
necessary to achieve the greatest personal and monetary gain.
a) Scientific Management - Fedrick Taylor
b) Administrative Principles - Henri Fayol
c) Bureaucracy - Max weber

A. SCIENTIFIC MANAGEMENT
Emphasizes careful selection and training of workers and supervisory support.

ASSOCIATED: Federick W. Taylor, “The principal object of management should be to secure maximum
prosperity for the employer, coupled with the maximum prosperity for the employee”

HIS PROBLEM: noticed that many workers did their jobs in their own ways and without clear and uniform
specifications. Caused them to lose efficiency and underperform

HIS SOLUTION: if workers were taught and then helped by supervisors to do their jobs in the right ways.

GOAL: improve the productivity of people at work

CONTRIBUTION: He used the concept of “time study” to analyze the motions and tasks required in any
job and to develop the most efficient ways to perform them.’

He then linked these job requirements to both training for the worker and support from supervisors in the
form of proper direction, work assistance, and monetary incentives. He conducted time studies on
workers and combined them with Gilbreth’s motion studies.

Motion study is the science of reducing a task to its basic physical motions.
4 GUIDING ACTION PRINCIPALS: 1. Develop for every job a “science” that includes rules of motion,
standardized work tools, and proper working conditions.

2, Carefully select workers with the right abilities for the job.

3, Carefully train workers to do the job and give them the proper
incentives to cooperate with the job “science?”

4. Support workers by carefully planning their work and by smoothing

the way as they go about their jobs.

MODERN DAY EXAMPLE: UPS

LESSONS: - Make results-based compensation a performance incentive.

- Carefully design jobs with efficient work methods.
- Carefully select workers with the abilities to do these jobs.
- Train workers to perform jobs to the best of their abilities.

SUMMARY: - Clear Expectations

- Specialization
- Rules of motion
- Careful selection and training
- Monetary incentives

B. ADMINISTRATIVE PRINCIPLES
Emphasizes careful selection and training of workers and supervisory support.

ASSOCIATED: Henri fayol, believed the key to managing was to have clear rules and duties like the 4
functions of management. Managers need to learn and follow these rules for success.

GOAL: management could be taught. He was concerned about improving the quality of management.

RULES OF MANAGEMENT: 1. Foresight- to complete a plan of action for the future

2. Organization- provide needed resources
3. Command- to lead, select, and evaluate workers
4. Coordination- to ensure information is shared
5. Control- make sure things happen according to plan
6. Scalar Chain Principle- a clear and unbroken line of communication from
the top to the bottom of the organization should exist.
7. Unity of Command- each person receives orders from only one boss.
SUMMARY: - Rules based and clear rules
- 4 functions of mangement
- 7 functions: Foresight, organization, command, coordination,
control, scalar chain, unity of command

C. BUREAUCRACY
Is a rational and efficient form of organization founded on logic, order, and legitimate authority.

ASSOCIATED: Max Weber, believed that bureaucracies would have the advantages of efficiency in
utilizing resources, and of fairness or equity in the treatment of employees and clients.

HIS PROBLEM: concerned that people were in positions of authority not because of their job-related
capabilities, but because of their social standing or “privileged” status.

HIS SOLUTION: specific form of organization just described—a bureaucracy

CHRACTERISTICS: 1. Clear division of labour—Jobs are well defined, and

workers become highly skilled at performing them.

2, Clear hierarchy of authority—Authority and responsibility are well defined for each
position, and each position reports to a higher-level one.

3. Formal rules and procedures—Written guidelines direct behaviour and

‘decisions in jobs, and written files are kept for historical record.

4. Impersonality—Rules and procedures are impartially and uniformly

applied, with no one receiving preferential treatment.

5. Careers based on merit—Workers ate selected and promoted on ability,

competency, and performance, and managers are career employees of
the organization.

ADVANTAGES: - Used to run large organizations

- Merit-based
- clear hierarchy (know who to report to)
- Accountability

DISADVANTAGES: - excessive paperwork or “red tape,”

- slowness in handling problems
- rigidity in the face of shifting customer or client needs
- resistance to change
- employee apathy
SUMMARY: - Division of Labour
- Hierarchy of Authority
- Rules and procedures
- Merit-based
- For large organizations
- Slow to change

2. BEHAVIOURAL

Focus on the human side of the workplace, social needs and group pressure affect workers
The behavioural approaches maintain that people are social and are trying to achieve their full potential.
People at work are assumed to seek satisfying social relationships, respond to group pressures, and
search for personal fulfillment.
a) Hawthorne Study
b) McGregor’s Theory X and Y
c) Adult Personality

MARY PARKER FOLLETT - believed organizations to be “communities”, people working in harmony

- Manager’s job to help people cooperate and combine talents
for the greater good.

ELTON MAYO - studied workers at the Hawthorne plant of the Western Electric Company in Illinois.
- Previously, studies like Frederick Taylor’s work, took a “man as machine” view, focused on
ways of improving individual performance.

A. HAWTHORNE STUDY

ASSOCIATED: Hawthorne, set the individual in a social context arguing that employees’ performance is
influenced by work surroundings and coworkers as much as by employee ability and skill.
- The Hawthorne studies are credited with focusing managerial strategy on the socio-psychological
aspects of human behavior in organizations.

THE STUDY: - Studied how economic incentives and physical conditions affect labour (behaviour)
Ex. Does more lighting = better performance?
- Results showed that the employees worked harder because they thought
they were being monitored individually.
- People’s work performance is largely dependent on social issues
(desire to belong, be included in decision making, relations with co-workers)
- Tangible motivators such as monetary incentives and good working
conditions are generally less important

LESSON LEARNED: - changing the physical/social work environment has an effect on performance
HUMAN RELATIONS MOVEMENT : - These studies led to the: human relations movement
- A movement towards a mindset where managers realized that if they
concentrated on human relations with their workers, they would
achieve higher productivity.

SUMMARY: - How you treat people affects how they work

- The work environment, social relations may improve productivity

B. MCGREGOR’S THEORY X AND THEORY Y

Is a rational and efficient form of organization founded on logic, order, and legitimate authority.

ASSOCIATED: Douglas McGregor, believed there are two types of managers, Managers need to
change from Theory X to Theory Y beliefs

THEORY X MANAGERS: assumes people dislike work, lack ambition, act irresponsibly, and prefer to be led.
- they believe employees don’t like their jobs, lack ambition and want to be led

THEORY Y MANAGERS: assumes people are willing to work, like responsibility,

and are self-directed and creative.
- believe employees are willing to work, are creative and ambitious

SELF FULFILLING PROPHECY: - Occurs when a person acts in ways that confirm another’s expectations.
- Managers create self-fulfilling prophecies, how they treat people will
create that type of employee
- You act based on your assumptions ... People then meet these
assumptions because of how you acted.
Ex. I expect my students to be responsible and respectful, I treat
them that way and they meet these expectations by acting
responsibly and respectfully.

THEORY X VS Y : - X: act in a very directive “command-and-control” fashion that gives people little
personal say over their work. Creates employees who tend to do only what they are
told to or required to do.
- Y: allow subordinates more job involvement, freedom, and Responsibility. Workers
tend to behave as expected with initiative and high performance

SUMMARY: - The way you treat workers will create their behaviour
- Managers need to treat workers as if they want to work hard, and can be trusted

C. THEORY OF ADULT PERSONALITY

ASSOCIATED: Chris Argyris, believes that the Classical theories are inconsistent with the adult personality
ADULTS NEED: -less rules
-more possibility for achievement
-more responsibility at work
-task variety
-defined goals
-decision-making power

HIS CONCLUSION: - He believes if a manager treats workers like adults, this leads to less alienation, which
results in less employee turnover
- Argyris believes that managers who treat people positively and as responsible
adults will achieve the highest productivity.
- His advice is to expand job responsibilities, allow more task variety, and adjust
supervisory styles to allow more participation and promote better human relations.

SUMMARY: - Treat workers like adults with less rules, allow them to make decisions and achieve more,
take responsibility, have task variety

3. MODERN THEORIES

a) Quantitative Analysis
b) Contingency Thinking
c) Total Quality Management
d) Learning Organizations

A. QUANTITATIVE ANALYSIS

OVERVIEW: - The foundation of these approaches is the notion that mathematical tools can be used for
better problem-solving.
- Emphasizes the use of math and science for problem-solving and forecasting results
- Uses mathematical techniques such as analysis, statistics and simulations for
management problem-solving

QUANTITATIVE APROACH : a problem is encountered; it is systematically analyzed; appropriate

mathematical models and calculations are applied, optimum solution is identified.

EXAMPLES: - Mathematical Forecasting- future predictions

- Inventory Modeling - controls stock
- Queuing Theory - minimize customer waiting time and service costs (timer at drive thru)

OPERATIONS MANAGEMENT: - use quantitative analysis and applied mathematics

- the study of how organizations produce goods and services.
B. CONTINGENCY THINKING

OVERVIEW: - tries to match management practices with situational demands.

-There is no one best way to manage every time.
-Must choose style of management according to environment, situation, needs.
-Must be flexible and have skills/experience to adapt to what is needed.

C. TOTAL QUALITY MANAGEMENT

OVERVIEW: - TQM: means setting an organization-wide objective for everyone and all operations to aim
to satisfy the customer’s needs through Top Quality work.
- all parts of the org’n strive for this (resource acquisition, production, distribution etc.)

PRINCIPALS OF EDWARD DEMING: - tally efects, analyze and trace them to the source, make
corrections, and keep a record of what Happens afterward.

APPROACH: - begin with an insistence that the total quality commitment applies to everyone and
everything in an organization—from resource acquisition and supply chain management, through
production and the distribution finished goods and services, and ultimately to customer relationship
management.

D. LEARNING ORGANIZATIONS

OVERVIEW: - A learning organization continuously changes and improves, using the lessons of
experience.
- actively encourage workers to
- stay open to learning new information and ways of doing work, learning from
contacts/others
- share information openly to help and work with others
- participate and feel empowered to make changes
- continuously learn more, share information, teamwork, participation

KNOWLEDGE MANAGEMENT: - is the process of using intellectual capital for competitive advantage.
A. SCIENTIFIC MANAGEMENT QUESTIONS

1. What is Frederick Taylor’s theory called?

Scientific management

2. According to Frederick Taylor’s theory, the way to manage is to make sure “ workers truly know
the fundamentals of their jobs. Have clear and specific specifications and expectations of the work
they do. What are the 4 guiding principles of scientific management?
Breaking tasks into simple physical motions
Developed rules of motion and proper working conditions for every job and eliminated wasted motions
selected workers carefully, with the right abilities for the job.
carefully trained workers to do the job and provided proper incentives.

3. How might a company like Pizza Pizza or Tim Hortons use Scientific Management in their
organization? State at least two specific ways.
They could study the processes involved in making the products such as coffee, pizzas, etc, and identify
the optimal methods, tools, and equipment for each task. For example, they could use timers, scales,
thermometers, and portion control devices to ensure consistency and quality.
They could hire and train workers based on their aptitude and experience for different roles, such as
dough makers, pizza makers, sandwich makers, cashiers, and delivery drivers. They could also provide
regular feedback and coaching to improve their performance and skills.
They could offer incentives and rewards for workers who achieve high levels of productivity, customer
satisfaction, and sales. For example, they could give bonuses, free meals, recognition, or promotion
opportunities to workers who meet or exceed their goals.

4. You have noticed that a worker is extremely unproductive. Using the Scientific Management
theory, what might you do?
I would try to understand the reason behind the worker’s behaviour. Is it due to a lack of motivation, skills,
resources, or feedback? I would ask the worker for their input and listen to their concerns.
I would encourage the worker to make time tracking a habit. I would use a tool or a system to measure
how much time the worker spends on each task and compare it with the standard time. I would also
monitor the quality and quantity of the worker’s output. Offer incentives

B. ADMINISTRATIVE PRINCIPLES QUESTIONS

1. What is Henri Fayol’s Theory called?

Administrative Principles

2. According to the theory of Administrative Principles, what must a manager do?

have clear rules and duties like the 4 functions of management. Managers needed to learn and follow
these rules for success.
3. Name the 7 rules.
1. Foresight- to complete a plan of action for the future
2. Organization- provide needed resources
3. Command- to lead, select, and evaluate workers
4. Coordination- to ensure information is shared
5. Control- make sure things happen according to plan
6. Scalar Chain Principle- a clear and unbroken line of communication from the top to the bottom of the
organization should exist.
7. Unity of Command- each person receives orders from only one boss.

4. Which rules fit under which management function?

Planning - foresight, coordination, organizatioon
Controlling - comand, coordination, control, Scalar Chain Principle
Organizng - organizatioon, comand, coordination
Leading - command, Scalar Chain Principle

5. Which rules seem to go together?

Everything goes with everything

C. BUREAUCRACY QUESTIONS

1. Explain the pros and cons of Bureaucracy.

Pros - merit-based, clear hierarchy (know who to report to), accountability
Cons - slow, inflexible, generic solutions, ineefificnet, red tape

2. Give an example of Bureaucracy.

Federal government

3. When would you use this as a manager? Give a specific example.

- Ensure consistency and standardization in your operations and processes, such as quality control,
compliance, or reporting
- Delegate authority and responsibility to your subordinates based on their expertise and qualifications,
rather than on personal factors.
- Create clear rules and procedures for your employees to follow, such as performance evaluation,
promotion, or grievance handling.

A specific example of using bureaucracy as a manager is:

You are the manager of a customer service department in a large retail company. You use bureaucracy
to organize your department into different teams that handle different types of customer inquiries, such
as online orders, returns, complaints, or feedback. You assign each team a supervisor who is responsible
for training, monitoring, and evaluating the team members. You also establish a set of formal rules and
guidelines for your employees to follow when interacting with customers, such as greeting, tone,
language, and resolution. You use these rules and guidelines to measure and improve the quality and
efficiency of your customer service.
4. What are the three Classical Management Theories?
Scientific management
Administrative principles
Bureaucracy

A. HAWTHORNE STUDY QUESTIONS

1. What did the Hawthorne Study reveal?

The Hawthorne Study revealed that the productivity and performance of workers were influenced by their
social relations, psychological needs, and motivation, rather than by the physical conditions of their work
environment. The study also discovered the Hawthorne effect, which is the tendency of workers to
improve their behavior or output when they are aware of being observed

2. How can the findings from the Hawthorne Study be used in management
The findings from the Hawthorne Study can be used in management to improve the well-being and
satisfaction of workers, which in turn can enhance their efficiency and loyalty. Some of the ways to apply
the findings are:
Providing workers with more attention, feedback, and recognition for their work
Encouraging workers to participate in decision-making and problem-solving processes
Fostering a sense of belonging and teamwork among workers

3. How did the Human Relations Movement differ from the Classical Approaches of Management?
The Human Relations Movement differed from the Classical Approaches of Management in several ways.
The Classical Approaches, such as Scientific Management and Bureaucracy, focused on the rational and
mechanical aspects of organizing work, such as division of labor, hierarchy, rules, and efficiency. The
Human Relations Movement, on the other hand, emphasized the human and social aspects of work, such
as relationships, motivation, communication, and leadership. The Human Relations Movement also
challenged the assumption that workers are motivated solely by economic incentives, and proposed that
they also seek psychological and social rewards from their work

4. Give three examples of how a manager who follows the Human Relations Movement may behave
to positively influence their workers?
The manager may regularly communicate with the workers, listen to their opinions and suggestions, and
involve them in planning and implementing changes
The manager may provide the workers with opportunities for learning and development, and help them
achieve their personal and professional goals
The manager may create a supportive and collaborative work culture, where the workers feel valued,
respected, and trusted

B. MCGREGOR’S THEORY X AND THEORY Y QUESTIONS

1. How does a self-fulfilling prophecy work? Give 2 examples.

Self-fulfilling Prophecies: you act based on your assumptions ... People then meet these assumptions
because of how you acted.
example:
A student who expects to fail an exam may study less, feel more anxious, and perform poorly, thus
confirming their expectation.
A teacher who expects a student to be smart may give them more attention, praise, and feedback, thus
enhancing their learning and performance.

2. What is wrong with a Theory X type manager?

They create a negative and distrustful work environment, which lowers employee morale, satisfaction,
and commitment.
They stifle employee creativity, initiative, and autonomy, which reduces innovation and productivity.
They ignore the individual differences, needs, and potential of employees, which wastes human resources
and talent.

3. How does being a Theory Y type manager work better? Explain it in details.
They create a positive and supportive work environment, which increases employee engagement, loyalty,
and retention.
They empower employee participation, decision-making, and problem-solving, which enhances
performance and quality.
They recognize and reward employee achievements, growth, and development, which motivates
employees to excel and improve.

4. What is your opinion about McGregor’s Theory?

My opinion about McGregor’s Theory is that it is a useful framework for understanding how different
assumptions and attitudes of managers can affect employee behaviour and outcomes. However, I also
think that it is not a rigid or universal model and that managers should adapt their style according to the
situation, the task, and the individual. I think that a balance of Theory X and Theory Y approaches may be
optimal for some contexts and goals

C. THEORY OF ADULT PERSONALITY QUESTIONS

1. Explain the name of Argyris’ theory.

Argyris’ theory is a broad term that encompasses his various ideas and contributions to the fields of
organizational learning, action science, and theories of action. Argyris’ theory is based on the premise that
human beings are capable of designing their actions in complex and uncertain situations, and that they
can learn from their experience and improve their performance. Argyris’ theory also examines the
barriers and enablers of learning, both at the individual and organizational levels, and proposes ways to
overcome them

2. What is your opinion of the theory?

However, some people may think that Argyris’ theory is useful and relevant for understanding and
improving human and organizational behavior, while others may criticize it for being too abstract,
complex, or unrealistic
3. Relate this theory to other concepts we have covered in this class.
Change management: Argyris’ theory provides insights and tools for managing change effectively in
organizations. Argyris advocates for participatory and collaborative approaches to change, where the
stakeholders are involved in diagnosing the problems, designing the solutions, and implementing the
actions. Argyris also proposes the concept of action science, which is a method of inquiry and intervention
that aims to generate valid and actionable knowledge for solving real-world problems

4. In General, how do the Behavioural Theories differ from the Classical Theories?
The behavioral theories focus on the human aspects of organizations, such as the motivations, attitudes,
perceptions, and interactions of the people, while the classical theories focus on the structural and
technical aspects of organizations, such as the division of labor, hierarchy, authority, and efficiency.