Lesson 1: Management School of Thoughts

Command of Basic Facts

(usually of management and the sector in which the organization operates) - without this, one cannot be a manager

1. Hawthorne experiments 2. Human relation movement 3. Organizational behavior

3 elements of neoclassical theory of management

Unity of direction

Fayol's 14 principles of management: -> This means that there should be unity in the directions given by a manager to his subordinates. Avoid conflict.

Personal tenure

Fayol's 14 principles of management: -> Views unnecessary turnover to be both the cause and the effect of bad management; Fayol points out its danger and costs.

Remuneration

Fayol's 14 principles of management: -> Wages should be equitable and satisfactory to employees and superiors.

1. Planning 2. Organizing 3. Coordinating 4. Commanding 5. Controlling

Five Functions of Management

3

Following are four core principles of Scientific Approach except: 1. Replace rules of thumb work method with methods based on a scientific study of the tasks. 2. Scientifically select, train, and develop each worker rather than passively leaving them to train themselves. 3. Develop the potential of the workers both for their self-development and organizational prosperity. 4. Cooperate with the workers to ensure that the scientifically developed methods are being allowed. 5. Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work, and the workers actually perform the tasks.

Cohesive organization

Foremost was a management principle they had __________________, great strengths was his ability to bind people to him and his cause and needed to show strength when necessary because people appreciate and usually follow a firm lead.

An emphasis on productivity, Selection and training, Job analysis

Frederick Winslow (FW) Taylor was an American, working around the turn of the Twentieth Century and notable for helping Henry Ford with remarkable success mainly through three major innovations:

Henry Fayol (1841-1925)

French Mining Engineer who recorded his industry considered as the father of Administrative Management Theory,

Weber (1996)

He argues that attitude of senior management is crucial for facilitating organizational culture because senior managers play an important part in shaping cultural values. After all, the style of management is likely to reflect on organizational culture.

Max Weber

He believed that large-scale organizations such as factories and government departments were a characteristic of capitalist economies.

Henri Fayol

He believed that organizational managerial practices are important for driving predictability and efficiency in organizations.

George Elton Mayo (1890- 1949)

He pioneered the neo-classical approach with his associates (1933)

Chester I. Bernard

He published "The Functions of the Executive" in 1938, his theories and approach to management on the basis of his first-hand experience as a top-level executive.

Max Weber

He then described a theory to operate an organization in an effective way which is known as the Bureaucratic management approach or Weberian bureaucracy.

Max Weber (1864-1920)

He was born in Germany, he grew up during the time when industrialization was transforming government, business, and society.

F.W. Taylor

He was the inventor of the JOB ANALYSIS process. He monitored each worker rather like a time and motion study. In this way he built up a picture of how most people could be trained to become proficient and productive workers

Elton Mayo

He was the leader of the team which conducted the famous Hawthorne Experiments at the Western Electric Company (USA) during 1927-1932.

Administrative Functions

Henri Fayol called Managerial skills as ______________.

work groups, functional departments

Henri Fayol proposed the creation of ______________ and ______________ where distinct activities are performed.

General and Industrial Administration

Henri Fayol's book that was published in 1916 was entitled ____________________.

Henri Fayol

His work is concerned with higher-level of organization.

1937

In ____, Luther Gullick redeveloped Fayol's thoughts into a newer form which he called POSDCORB.

1909

In ____, Taylor published The Principles of Scientific Management.

1878

In _______, Frederick W. Taylor joined the Midvale Steel Company in USA as a laborer and, due to his hard work and dedication;he was able to reach the position of the Chief Engineer in the same company within a short span of six years (in 1884).

1911

In _______, Taylor wrote that there were four key stages to success in manufacturing.

supervisory role

In the __________________, the manager represents his team to the higher management. He acts as a liaison between the higher management and his team. He is charge with the external and internal issues linking the top management and the lower management.

The Principles of Scientific Management

In this book, Taylor suggested that productivity would increase if jobs were optimized and simplified.

Classical approach

It emphasis on work planning, the technical requirements,principles of management, formal structure, and the assumption of rational and logical behavior.

Contingency Approach/ Contingency Management Theory

It holds that every situation requires a different leadership style, and therefore no one theory can work for an entire office.

Organizational Behavior

It involves the study of attitudes, behavior and performance of individuals and groups in organizational settings. This approach came to be known as BEHAVIORAL APPROACH. It extended and improved version of human relations movement. It examines why employees are motivated by specific factors, such as social needs, conflicts, and self-actualization.

Kaizen approach

It is a long-term approach to work systematically that seeks to achieve small, incremental changes in processes in order to improve efficiency and quality.

Classical approach

It is one of the oldest approaches to management and is also know by various names such as, Functional approach, Management Process approach and Administrative Management approach.

Kaizen

It means that everyone is involved in making improvements.

1. Identifying opportunities for improvements 2. Testing new approaches 3. Recording the results 4. Recommending changes

Kaizen 4 Process

Frederick W. Taylor (1856-1915)

Known as the Father of Scientific Management.

Abraham Maslow, HugoMunsterberg, Rensis Likert, Douglas McGregor, Frederick Herzberg, Mary Parker Follet,and Chester Barnard

Major contributors to behavioral approach to management school of thought are:

Shitsuke (sustain)

Make 5S a way of life by forming the habit of always following the first four S's. - self-discipline

Hands-on, value-driven

Management philosophy that guides everyday practice and shows the management's commitment.

Hawthorne effect

Management with an understanding of human behavior, particularly group behavior serves an enterprise through interpersonal skills such as motivating, counseling, leading and communicating - known as _____________________.

Renaissance Italy

More modern management trends have their origins about 500 years ago in ___________.

Universal Process Theory

One of the main assumptions from this theory is that, although the objective of an organization may differ (for example, business, government,education, or religion), yet there is a core management process that remains the same for all institutions.

Taylor and Fayol

One of the main criticisms leveled against them are their indifference to and neglect of the human side of the enterprise in management dealings.

Universal Process Theory

One of the oldest and most popular approaches, Henry Fayol's theory holds that administration of all organizations - whether public or private, large or small - requires the same rational process or functions.

Seiton (set in order)

Organize whatever remains by neatly arranging and identifying parts and tools for ease of use. - orderliness

natural laziness

Other term for soldiering.

Lawrence A. Appley and Harold Koontz.

Pioneered the human-relations orientation

Seiso (shine)

Proactive efforts to keep workplace areas clean and orderly to ensure purpose-driven work. This means cleaning and maintaining the newly organized workspace. It can involve routine tasks such as mopping, dusting, etc. or performing maintenance on machinery, tools, and other equipment.

Seiketsu (standardize)

Schedule regular cleaning and maintenance by conducting seiri, seiton, and seiso daily. - Adherence

Hawthorne studies

Series of experiments that provided new insights into individual and group behavior in organizations.

1. Physical 2. Mental 3. Moral 4. Educational 5. Technical 6. Experience

Six Industrial Activities

False

Social factors are not necessarily be as powerful a determinant of worker-productivity as were financial motives. T/F

Seiri (sort)

Sort through materials, keeping only the essential items needed to complete tasks.

Stick to the Knitting

Stay with what you do well and the businesses you know best.

Close to the Customer

Staying close to the customer to understand and anticipate customer needs and wants.

Shitsuke (sustain)

Sustain new practices and conduct audits to maintain discipline. This means the previous four S's must be continued over time. This is achieved by developing a sense of self-discipline in employees who will participate in 5S.

Systems Theory

Synergy and interconnectedness between departments are key with this theory.

1. fear of losing their jobs if they increase their output 2. faulty wage systems 3. outdated methods of working.

Taylor concluded that workers indulged in 'soldiering' primarily for three reasons:

1. Emphasize organized knowledge rather than rely on rule of thumb 2. Obtain harmony in group action 3. Achieve cooperation 4. Work for maximum output rather than restricted output 5. Develop the potential of the workers both for their self-development and organizational prosperity

Taylor developed the principles of scientific management, emphasizing five (5) important issues:

Traditional Framework

Taylor further developed his thinking into what he called the ________________

workers, managers

Taylor's approach constituted one of the first formal divisions between those who do the work (_________) and those who supervise and plan it (___________).

True

The Hawthorne studies and subsequent experiments lead scientists to the conclusion that the human element is very important in the workplace. T/F

Managing Ambiguity and Paradox

The ability of managers to hold two opposing ideas in mind and at the same time able to function effectively.

principles

The administrative theory of management is focused on ______________ that could be used by managers to coordinate the internal activities of organizations. F

Simple Form, Lean Staff

The best companies have very minimal, lean headquarters staff.

organization structure, their management

The classical approach concentrates on ___________ and _________.

scientific management approach, administrative approach, bureaucratic approach

The classical approach developed into three (3) different directions. What are these three directions.

behavioral approach to management

The criticism of scientific and administrative management approach as advocated by Taylor and Fayol, respectively gave birth to the ___________________________.

Human-relations orientation

The definitions of management primarily emphasize people and the relationships among people as the focus of management. A management concept

workers, managers

The difference between scientific management and administrative proponents is that; SCIENTIFIC MANAGEMENT developed principles that could help the ________________ perform their tasks more efficiently, the ADMINISTRATIVE THEORY focused on principles that could be used by _____________ to coordinate the internal activities of organizations.

1. Illumination experiments 2. Relay assembly test room experiments 3. Mass interviewing programme 4. Bank wiring observation room study

The four (4) important experiments of Hawthorne Studies includes:

Kaizen approach

The idea of continuous improvement suggests that managers, teams, and individuals learn from both their accomplishments and their mistakes.

Abraham Maslow (1968, 1971), Chris Argyris (1957), Douglas McGregor (1960), and Rensis Likert (1961)

The neo-classical approach was further extended to behavioral sciences approach pioneered by _____________.

Control

The possibility of actions deviating from the plan necessitates constant observation of actual performance so that appropriate steps may be taken to ensure conformance. Thus,control involves compelling events to conform to plans.

Management

The process of planning, organizing,leading, and controlling an organization's human, financial, physical, and information resources to achieve organizational goals in an efficient and effective manner.

Vance and Moore

The proponents of the decision-making orientation

Donald J. Clough and Ralph C. Davis.

The proponents of the leadership orientation concept

1. Seiri (sort) 2. Seiton (set in order) 3. Seiso (shine) 4. Seiketsu (standardize) 5. Shitsuke (sustain)

There are five key practices involved in 5S. They are as follows:

Fourteen Principles of Management

These aims to show managers how to carry out their duties to get the best from their employees and to run the business efficiently.

Elton Mayo and Hugo Munsterberg

They are considered pioneers of this school (Hawthorne Studies).

Frank Gilbreth and Lillian Moller Gilbreth

They further improvised on Taylor's time studies, devising "motion studies" by photographing the individual movements of each worker. They carefully analyzed the motions and eliminated unnecessary ones.

Bolton and Watt

They introduced the concept of wages, each worker was given a fixed sum of money in exchange for his work so that he could buy whatever he felt he and his family needed, rather than accept produce necessary (barter).

Peter F. Drucker, W. Edwards Deming, Laurence Peter, William Ouchi, Thomas Peters,Robert Waterman, and Nancy Austin

They regarded contingency approach as the best approach as it encouragesmanagement to search for the correct situational factors for applying appropriate managementprinciples effectively.

Top-level managers

They represents the company legally and socially to the outside world that the organization interacts with.

Seiri (sort)

This action involves going through all the contents of a workspace to determine which are needed and which can be removed. Everything that is not used to complete a work process should leave the work area.

Kaizen

This also means "to become good through changes"

Quantitative Theory

This approach applies statistics, computer simulations, information models, and other quantitative techniques to the management of a company.

Classical approach

This approach believes in functional interrelationships, following of certain principles based on experience, a bureaucratic structure, and a reward-punishment nexus.

Classical approach

This approach has conventionally implied traditionally accepted views.

neo-classical approach

This approach to management emphasized human relations, the importance of the person behind the machine, individual as well as group relationships, and social aspects.

Decision-making orientation

This concept focuses on decision making as the primary function of management.

Leadership orientation

This concept views leadership as the essence of management.

Directing

This is a function that enables the manager to get the employees to accomplish their tasks.This function involves making the employees integrate their individual efforts with the interests and objectives of the enterprise. It calls for properly motivating, communicating with,and leading the subordinates.

Management

This is a universal phenomenon

Kaizen Approach

This is based on the Japanese management concept for incremental change and improvement.

Quantitative Theory

This theory based on efficiency and mathematical equations came out of the necessity for managerial excellence.

Modern Management Theory

This theory combines mathematical analysis with an understanding of human emotions and motivation in order to create a working environment that is maximally productive.

Contingency Approach/ Contingency Management Theory

This theory puts a lot of responsibility on the leaders of a company. This theory is also a more useable theory for modern workplaces, as it understands that as technology and companies change, so must the leadership styles.

Modern Management Theory

This theory recognizes that workers are complex and have many reasons for wanting to succeed in their job.

Systems Theory

This theory treats companies like a living organism, with all parts necessary for the company to survive.

1. Six Industrial Activities 2. Five Functions of Management 3. Fourteen Principles of Management

Three (3) major contributions of Henri Fayol to Management

Productivity through People

Treating rank-and-file employees as a source of quality.

capitalistic practices

Weber contrasted this with ____________ in Germany where a small group of powerful people controlled the economy.

soldiering

What is the main reason of Taylor for developing the scientific management, as he believed that all workers spent little of their time putting in full efforts?

True

While the majority of changes may be small, the greatest impact may be improvements or changes that are led by senior management as transformational projects, or by cross- functional teams as Kaizen events. T/F

Thomas Peters and Robert Waterman

Who is/are the proponents of the 9 principles of management and also focused on the 43 ofAmerica's most successful companies in six major industries

Henry Fayol (1949)

Who pioneered the administrative theory?

Max Weber (1920)

Who pioneered the bureaucratic approach?

Frederick W. Taylor (1903)

Who pioneered the scientific management approach?

Labor law of the Philippines, managers

__________________________ provides __________ are the person responsible for policy creation,execution and implementation. The power to hire and fire employees is residing in them. They are the one to interpret the company rules and policy.

Fundamentals of Systems Approach

a) All organizations are a co-operative system. b) As co-operative systems, organizations are a combination of complex physical,biological, personal and social components, which are in a specific systematic relationship by reason of the co-operation of two or more persons for at least one definite end. c) An employee's role and his co-operation are a strategic factor in achieving organizational objectives.

Managerial Competencies

are set of behaviours that encompass skills,knowledge, abilities, and attributes. Needed to be assessed at the organizational level as well as the individual level. Individual competencies together reinforce organizational competencies.

Organizing

mobilizing materials and resources by allocating separate tasks to departments units and individuals

Controlling

monitoring progress to ensure that plans are being carried out properly

Planning

predicting what will happen in the future and devising courses of action to meet that situation

emotional resilience

probably the hardest aspect to master is being able to bounce back after a setback. All careers have setbacks and the measure of how good a manager is can often be quickly and successfully he/she re-emerges as a key player

Proactivity

responding purposefully to events, or, better still anticipating them and taking action before they even happen

1. Hierarchical Management Structure 2. Division of Labor 3. Formal Selection Process 4. Career Orientation 5. Formal Rules and Regulations 6. Impersonality

six characteristics or rules of a bureaucracy

Continuing sensitivity to events

the ability to know when to act and when to ignore an event.

Pedler, Burgoyne, Boydell

A further development on the role of the manager was suggested by __________________ which acts as a summary of most of the key roles managers have to play. They called this simply "Eleven Qualities of a Successful Manager" and it is a fair guide to the basics.

interchangeable

According to Universal Management Process, successful managers, therefore, are _________________ among organizations of differing purposes.

Chester Barnard, Social Systems Theory

According to _____________ and his ____________, employees or workers are social beings, so it is very important to fit them into a social system, resulting in a complete socio-technical system in an organization.

Peter Drucker

According to him, "Management is a multipurpose organ that manages a business and manages managers, and manages workers and work."

Peter Drucker

According to him, the basic task of management includes both marketing and innovation.

John G. Hutchinson (1971)

According to him, the history of management can be broadly classified into three groups: (1) the classical approach, (2) the neo-classical approach, and (3) the modern approach.

Autonomy and Entrepreneurship

Actions that foster innovation and nurture customer and product champions.

Process Theory, Structural Theory

Administrative Management is often called:________________ or __________________

Bolton and Watt

Are central names in the Industrial Revolution, born the first evidence of the industrial volume manufacturing principle in which finished engineering products assumed ashape and form as they processed along an assembly track.

Specialization of labor

Fayol's 14 principles of management: -> This improves the efficiency of labor through specialization, reducing labor time and increasing skill development.

Henri Fayol

A French Industrialist, Mining Engineer, and Managing Director of a mining company in France named Compagnie de Commentry - Fourchambault - Decazeville.

A Bias for Action

A culture of impatience with lethargy and inertia that otherwise leaves organizations unresponsive.

Kaizen Events

Are traditionally short-term brainstorming and implementation sessions intended to improve an existing process. These are typically touted as one-time events but should be part of a program designed for continuous improvement to see if the implemented changes are working.

co-operative systems

As __________________, organizations are a combination of complex physical, biological, personal and social components, which are in a specific systematic relationship by reason of the co-operation of two or more persons for at least one definite end.

Simultaneous Loose-Tight Properties

Autonomy in shop-floor activities and centralized values.

neo-classical approach

Began with the Hawthorne studies in the 1920s. It grew out of the limitations of the classical theory.

Machiavelli

Being Secretary to the Florentine Republic from 1496-1512 he was one of the first career civil servants and he has left behind one of the great political/ managerial works of all time entitled "The Prince".

Authority

Fayol's 14 principles of management: -> This is the right to give orders which always carry responsibility commensurate with its privileges.

Seiso (shine)

Clean the work area by conducting a cleanup campaign. - Cleanliness

Modern management approach

Combines concepts of the classical school with social and natural sciences. It basically emerged from systems analysis.

Systems Theory

Companies using this theory think that departments and employees must work as a collective group and not an isolated unit.

Seiketsu (standardize)

Create a set of standards for both organization and processes. In essence, this is where you take the first three S's and make rules for how and when these tasks will be performed. These standards can involve schedules, charts, lists, etc.

Unity of command

Fayol's 14 principles of management: -> This means that subordinates should receive orders from one superior only, thus avoiding confusion and conflict.

Coordination

Deals with harmonizing work relations and efforts at all levels for some common purpose. It may be described as the process of unifying individual efforts for the purpose of accomplishing group goals. The whole idea of this is to adjust, reconcile,and synchronize individual efforts, so that group efforts become more effective and common objectives are met.

Human relations movement

Deals with the factors which encourage higher performance on the part of workers. The improvement of working conditions, lowering of hours of work,improvement of social relations of workers, besides monetary gains help in increasing productivity.

Harold Koontz

Defined management as "the art of getting things done through and with people in formally organized groups."

Quantitative approach

Developed during World War II and believes in economic effectiveness to solve business problems

Contingency approach

Discards the concept of universality and determines managerial decisions by considering situational factor

jungle

Due to such multidisciplinary influences, even authors like Harold Koontz (1961) referred to management as a __________.

competition, innovation.

During Weber's stay at the United States(1904) to study the U.S economy, he noted that capitalism in the United States encouraged _______________ and ________________.

Seiri (sort)

Eliminate whatever is not needed by separating needed tools, parts, and instructions from unneeded materials. - organize

Seiton (set in order)

Ensure that all items are organized and each item has a designated place. Organize all the items left in the workplace in a logical way so they make tasks easier for workers to complete. This often involves placing items in ergonomic locations where people will not need to bend or make extra movements to reach them.

The Contingency Management theory

Evolved out of the System Approach like Contingency approach, management is situational, as situations that is always changing.

operational-level workers.

Fayol believed that the effective organization of management would ultimately have an effect on the productivity of ______________________.

organized

Fayol focused on organization and structure of work tasks. He looked specifically at how management and workers are ___________ within a business to allow for the completion of task.

Equity

Fayol's 14 principles of management: -> Employees should be treated equitably in order to elicit loyalty and devotion from personnel.

Discipline

Fayol's 14 principles of management: -> It relies on respect for the rules, policies, and agreements that govern an organization. Fayol ordains that discipline requires good superiors at all levels.

Centralization

Fayol's 14 principles of management: -> Levels at which decisions are to be made should depend on the specific situation, no level of centralization or decentralization is ideal for all situations.

Initiative

Fayol's 14 principles of management: -> Subordinates should be encouraged to conceive and carryout ideas. Proactive

Esprit de corps

Fayol's 14 principles of management: -> Team work, a sense of unity and togetherness,should be fostered and maintained.

Subordination of individual interest to common good

Fayol's 14 principles of management: -> The organizations goal, vision and mission should be on top of all other interest.

Scale of chain

Fayol's 14 principles of management: -> The relationship among all levels in the organizational hierarchy and exact lines of authority should be unmistakably clear and followed at all times,excepting special circumstances.

Order

Fayol's 14 principles of management: -> There should be a place for everything, and everything should be in its place. This is essentially a principle of organization in the arrangement of things and people.

Management by Objectives (MBO)

emphasizes management of an organization focusing primarily on objectives and then managing the whole organization with the directions set by the objectives.

Coordinating

ensuring that activities and resources are working effectively towards the overall goals

Mintzberg

identified ten roles of managers, classifying them into three broad roles:interpersonal, informational, and decisional.

Commanding

what we would now call directing, providing direction to employees