management Theories

MANAGEMENT THEORIES

Fredrick Winslow Taylor (1856-1915), Frank Gilberth his wife Lillan Gilberth and
HenryGantt have done pioneering work in the field of management They evolved methods
and techniques and transformed the field of management in which all works were to be
donein the scientific way. Taylor’s work was so unique that he eventually came to be
known as the father of scientific management. Taylor joined Midvale steel companyas a
worker and later he was promoted as supervisor. While working, he completed post-
graduation in industrial engineering and subsequently joined Bethlehem Steel Company.
Salient points of scientific management propagated by Taylor are given as under:
(i) Effective use of human beings in industrial organizations particularly at the shop
floor. He introduced various systems to improve the efficiency of workers.
(ii) Taylor stated that managing workforce is an art. He further defined managing as
‘Knowing exactly what you want men to do and then see that they do it the
best and cheapest way’
(iii) He standardized the work and introduced better methods of doing it.
(iv) Time and motion study
(v) Introduction of differential piece- rate system of payment offering additional reward
for production beyond the standard laid down.
(vi) Functional foremanship, creating supervisor having direct authority over the
Workers

Features of Scientific Management

 Separation of Planning and doing. Earlier entire work was done by workers.
There were no separate teams for planning and executing the work. Taylor divided
The entire work into two parts namely planning and doing.
 Functional foremanship. Separation of planning from doing resulted in
Introduction of supervisory staff system, which could undertake planning work
Separately.
 Job Analysis. Taylor carried out intensive studies on time and motion about each job
and incorporated such layout in the operations that involved least movement to the
workers, minimum operation time and therefore less cost of production.

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 Standardisation-Taylor carried out job analysis and based on the analysis he

standardised tools, instruments, period of work, amount of work each worker has to
undertake, working conditions and cost of production.
5. Scientific selection and training of workers.
Taylor suggested that workers should be given adequate training and work allotted based on
their physical and technical aptitude.
6. Financial incentives.
Taylor He introduced various methods to motivate workers by introducing differential piece-
rate of payment system.

7. Economies. Taylor insisted that internal economy must be ensured by each worker
ensuring that there was no wastage in time and material while carrying out the job8.
8. Mental revolution.
Taylor was a firm believer that there must be sound relations between the management and
the workers.

PROCESS MANAGEMENT THEORY – FAYOL

The real father of modern management theory. Henry Fayol. His contribution is generally
termed as process management and administrative management. Fayol looked at the
problems from the top management point of view. He has used the term ‘administration’
instead of management emphasising that there is unity of science of administration. Fayol
divided his approach of studying management into three parts which is managerial
qualities, general principals and Elements of planning.
1. Managerial Qualities
Fayol Considered that manager must have following qualities
 Physical ability: relating to health, vigour and ability to effectively address the
people.
 Mental ability: to understand and learn judgment, mental vigour and adaptability.
 Moral ability: energy, firmness, initiative, loyalty, tact and dignity
 Educational ability: General acquaintance with matter not belonging exclusively
 to the function performed
 Technical ability: Particular to function being performed
 Experience: Arising out of work

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2. General Principles of Management

Division of Labour: Fayol recommended that work of all types must be subdivided and
allotted to number of persons.
 Parity of authority and responsibility: Authority refers to the right of a superior to
give orders to subordinates, take decisions on specified matter, use the sources of
organization.
 Discipline: In the context of management means obedience, proper conduct in
relation to others and complying with the rules and regulations of the organization.
 Unity of command: This principle states that subordinate should receive orders
and be accountable to one and only one superior.
Unity of direction: According to this principle, the efforts of all the members of the
organization should be directed towards common goals.
 Subordination of individual to general interest: What is in the interest of the
organization as a whole must take precedence over the interest of individuals
Fair remuneration to employee: Remuneration of employee should be fair and
reasonable.
Centralisation and decentralisation: Centralization means the concentration
of all powers at the top level of management and decentralization means the authority or the
power is shared by middle as well as low level of management.
 Scalar chain: Fayol defines scalar chain as the chain of superiors ranging from
the top management to the lowest rank. The chain also determines the line of authority.
 Order: The principle is concerned with arrangement of things and placement of
people. Arrangement of things—material order and and arrangement of people—
social order. The people should be assigned specific places of work and that they
should be available there and things should be kept at allotted places.
 Equity: means, similar treatment is assigned to people at similar positions. For
example workers performing similar jobs should be paid the same wages. Equity is
combination of justice and kindness.

3. Elements of Management
Fayol has regarded the ‘Elements of Management’ as principles of management.
 Planning: It is the most important element or function of management and failure

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to plan leads to hesitation, false step and untimely changes in directions, which Causes
weakness in the organization.
 Organising: It is the process of bringing together physical, financial and human
Resources and establishing productive relations among them for the achievement
of specific goals.
 Commanding: This function is necessary to execute plans. This function includes the
influencing the behaviour and work of others in a group to the realization of Specified
goals in the given situation.
 Coordination: Co-ordination as a function of management refers to the task of
integrating the acts of separate units of an organization to accomplish the
Organizational goals effectively.
 Controlling refers to the process of ensuring that acts of subordinates

The Development of Bureaucracy

In the late 1800s, Max Weber criticized organizations for running their businesses like a
family, or what some of us might refer to as 'mom and pop'. Weber believed this informal
organization of supervisors and employees inhibited the potential success of a company
because power was misplaced. He felt that employees were loyal to their bosses and not to
the organization. Weber believed in a more formalized, rigid structure of organization known
as a bureaucracy.

This non-personal view of organizations followed a formal structure where rules, formal
legitimate authority and competence were characteristics of appropriate management
practices. He believed that a supervisor's power should be based on an individual's position
within the organization, his or her level of professional competence and the supervisor's
adherence to explicit rules and regulations.

Characteristics of Bureaucratic Organizations

A well-defined formal hierarchy and chain of command distinguishes the level of authority
within an organization. Individuals who hold higher positions will supervise and direct lower
positions within the hierarchy.

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Management by rules and regulations provides a set of standard operating procedures that
facilitate consistency in both organizational and management practices. For example, when
an employee is sick and cannot make it into work that day, he or she must call out to their
direct supervisor.

Division of labor and work specialization is used to align employees with their
organizational tasks. This way, an employee will work on things with which he or she has
experience and knows how to do well.

Contingency approach to management

Is based on the theory that management effectiveness is contingent, or dependent, upon the
interplay between the application of management behaviors and specific situations. In other
words, the way you manage should change depending on the circumstances. One size
does not fit all. The contingency approach to management finds its foundation in the
contingency theory of leadership effectiveness and developed by management psychologist
Fred Fielder. The theory states that leadership effectiveness, as it relates to group
effectiveness, is a component of two factors: task motivation, or relation motivation, and
circumstances. The theory states that task or relations motivations are contingent upon
whether the manager is able to both control and affect the group's situational favorability, or
outcome. According to the theory, you can assess situational favorability by three factors:
Leader-member relations, task structure and position power.

Need Hierarchy Theory-Abraham Maslow

Abraham Maslow’s original work of needs theories was undertaken with the rehabilitation of
people in mind. Today, the need hierarchy theory of Maslow is often quoted and used in
management to motivate workers. Maslow’s theory generally state five needs of human
beings Viz, Physiological, safety, belonging, (Social) esteem and self-actualization.
1. Physiological needs: The need for air, food, and water.
2. Safety needs: The need to be safe from danger, pain, or an uncertain future.
3. Social needs: The need to bond with other human beings, to be loved, and to form lasting
attachments with them.
4. Esteem needs: The desire to be respected by one’s peers, feeling
Important, and being appreciated.

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5. Self-actualization: The quality of “becoming all you is capable of becoming

One thing that must be remembered is that the original hierarchy needs theory has six needs
Maslow called them “Meta” needs, comprising a range of different needs such as ‘cognitive’
and ‘aesthetic’ which exists between esteem and self actualization needs.
Theory X and Theory Y - McGregor
Theory X and Theory Y were introduced by Douglas McGregor based on two diagonally
Opposite views of human behaviour.
Theory X
McGregor assumed that average human being dislikes work and will try to avoid it if
Possible. Employees are lazy; they must be controlled, coerced and even punished to achieve
organizational goals. Average employee does not accept responsibility and seek direction
from their superiors. They lack ambition. McGregor therefore recommends organizations so
structured that enable close supervision, tight control and mangers must exert energy to
achieve organizational objective.
Theory Y
Theory Y suggests that average human being likes work and takes it as natural as play.
Employees can exercise self-direction and self-control and given the proper working
conditions, average person seeks responsibilities. McGregor felt that wisdom is widely spread
among the employees and they are innovative and can take quality decisions. It therefore
assumes that management must appreciate the potential among employees and adopt such
management practices like delegation, job enlargement and management by objective.
Management must appreciate the individual and organizational goals and create such
environment, which is conducive for its attainment. Reward System, recognition and facilities
for creativity should be provided. McGregor in his theory displayed a total recognition of
humanistic approach. He laid stress on delegation of authority, setting organizational
objectives and leaving it to the employees to attain the same.

References

David L. Kurtz, Contemporary Business Hoboken (2011), NJ: John Wiley & Sons.

William Pride M, Robert J. Hughes, and Jack R. Kapoor, (2008) Business Boston: Houghton
Mifflin.

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