History of Management
General Administrative Theory-Explained what executives do and what comprised of high-quality organizational practice.
-This theory happened around the equivalent time period as the Scientific Management Era.
-Focal point on positions rather than people.
-The General Administrative Theory is different from
-The theory was pioneered by Henry Fayol.
Scientific Management-Developed by Frederick Taylor
-1911 book Principles of Scientific Management
-Theory used the scientific method to describe the single best way for a job to get done
-Scientific Management (Taylorism)
-Method in management theory that decides alterations to progress labor productivity.
Behavioral Approach-Integrates psychological and social processes of human behavior
- Develops productivity and work satisfaction
-Managers are encouraged to understand the various dynamics of the work environment
-Helps positively influence employee motivation and satisfaction.
-Mary Parker Follett was a major contributor in the behavior movement.
Hawthorne Studies-Performed at the Western Electric Company from (1924 -1932)
-Made to examine the effects of physical working environment on an employee’s efficiency and exhaustion.
Trait TheoryEarly stages of leadership research
-Leaders distinguished by special qualities and characteristics.
-Found many traits that leaders possessed; Traits distinguish leaders from the others.
-Personal traits were found to predict the surfacing of leaders and the appearance of leadership.
-Trait theory believes that individuals are born with certain leadership traits.
- Research focused on the traits of successful leaders.
-Stogdill identified the traits
-Such as assertive, cooperative, energe
Total Quality ManagementPhilosophy of Management
- Constant development of quality and responding to customer needs and expectations.
-Encouraged by W. Edwards Deming and Joseph Juran.
-TQM views quality
- Core purpose of the organization
- It is everyone’s job,
-Not just the role of quality control specialists.
Essentials of TQM
- Focus on the customer
Reinforcment TheoryTheory suggests that behavior is controlled by reinforcers or elements of the environment.
- Consequences that trail a certain behavior serve as motivators for repeating the behavior.
-Positive reinforcers reward wanted behaviors and negative reinforcers punish unwanted behaviors.
-Doesn’t take into account interior cognitive factors that may serve as motivators
(Li, 2012, p. 103-107).
Systems Approach-Sees the organization as place of interconnected and self-governing parts arranged in a way that produces a unified whole.
Systems have three parts:
System acquires resources from the external environment
- Changes them through a process
-Returns a completed product back to the external environment.
2 Types of systems
- Open systems
- Cooperates with their environment
- Not influenced by and don’t cooperate with their environment.
Maslow's Hierarchy of NeedsAbraham Maslow’s says all humans have five needs:
Physiological –hunger, thirst, shelter, sex, and other physical needs.
Safety – security and protection from physical and psychological needs
Social – affection, belongingness, acceptance and friendship
Esteem – self-respect, independence, achievement, status, recognition, and attention.
Self-actualization – self-fulfillment, achieving one’s potential.
-Theorizes that as needs on one level are satisfied, the next level of needs becomes dominant.
Quantitative ApproachUse of quantitative techniques to advance decision making.
-Computer simulation to manage activities.
-Increased the popularity
-Economic order quantity
-Material requirements planning
(Parra-Luna, 2013, p. 662-665).
Managerial GridGraphical illustration of leadership styles
-Shaped by Robert Blake and Jane Mouton
-Based on the leadership styles of “concern for people” and “concern for production.”
-Gives 81 different leader styles based on two dimensions:
-Concern for people
-Concern for production
-9 possible positions on each axis
Contingency Approach-Organizations are different
-Face different situations
-Entail different ways of managing
- Implies that managers have to to comprehend the key contingencies that decide the most efficient management practices in any situation.
-Managers have to be flexible to familiarize themselves with the changing environment which the organization might be faced with.
McGregor's Theory X and Theory YDouglas McGregor proposed that humans are seen in two different groups by managers.
Theory X assumes:
-Employees hate work and will try to steer clear of it.
-Employees must be forced, controlled or threatened to finish tasks
-Employees avoid accountability.
-Employees value security in relation to work and show slight ambition.
Theory Y assumes:
-Employees see work as something normal.
-Employees exercise self-direction and self-control
-Employees can learn to accept, even seek responsibility.
McClelland's Theory of NeedsDavid McClelland and his associates developed the theory of needs focusing on three needs that explain motivation:
-Need for achievement - drive to outshine, to attain set standards, and to make every attempt to succeed.
-Need for power - Need to make others act in way that would not normally act.
-Need for affiliation - Desire for friends and close interpersonal relationships.
Equity TheoryEquity theory suggests that when employees perceive inequity, they will make one of the following choices:
-Distort perceptions of self
-Distort perceptions of others
-Choose a different referent
-Leave the situation
Expectancy TheoryVictor Vroom’s expectancy theory proposes that motivation potency is the result of supposed value resulting from the performing of a behavior and supposed likelihood that the result will materialize
(Renko, 2012, p. 669-670).
Fiedler's Contingency ModelGroup performance is reliant on the correct fit between the leader’s style of interacting with others and the degree to which the situation gives control and influence to the leader.
There are two steps involved in Fiedler’s Contingency model:
-Determining leadership style
-Evaluating the situation.
Goal-Setting TheoryEdwin Locke proposed that an individual’s intent to work towards a goal is a source of motivation. The goal-setting theory of motivation proposes that detailed and demanding goals lead to greater performance than unclear and easy goals.
Alderfer's ERG TheoryAlderfer believed that individuals may please higher-level needs before lower-level needs are completely satisfied. An individual can look to satisfy a growth need even though existence and relatedness needs are unsatisfied
3 basic needs:
-Existence needs – need for physical well-being
-Relatedness needs – need for satisfying interpersonal relationships
-Growth needs – need for continuing personal growth and development
Hersey and Blanchard Situational Leadership TheoryPaul Hersey and Ken Blanchard developed a contingency approach to leadership focusing on followers. According to Hershey and Blanchard, there are four leader behaviors ranging from highly directive to highly tolerant
(Vecchio, 1987, p. 446).
Path-Goal ModelDeveloped by Robert House, the path-goal theory says that it is the leader’s job to assist individuals in making their goals and to provide the direction or support or both needed to make sure that their goals are well-suited with the overall objectives of the organization.
4 primary types of behavior:
Leader Member Exchange (LMX)Suggests that leaders do not treat all group members the same. Leaders form in-groups and out-groups of followers. Leader-in-group relationships are based on trust and frequent interactions while the leader-out-group relationships are formal relationships based on organizational structure.
Organizational LearningOrganizational learning contributes to organizational memory so that when individuals exit the organization, there is minimal loss of organizational knowledge. Argyris and Schon (1978) propose three types of organizational learning: single-loop learning, double-loop learning, and deutero-learning
(Muehlfeld, 2012, p. 938-940).
EthicsA fire burned most of Malden Mills and put 3,000 people out of work. Most of which never returned to work. CEO Aaron Feuerstein spent millions keeping all 3,000 employees on the payroll with full benefits for 3 months until he could get another factory up and running. His answer was "The fundamental difference is that I consider our workers an asset, not an expense."
SWOT AnalysisSWOT Analysis is an important tool which allows managers to find what companies' strengths, weaknesses, opportunites and threats are.