Management Theories

Understanding how managers lead, and how they operate effectively within organizations, can be guided by investigating the classical theories of management.  The three classical theories of management are:

1. Scientific Management.
2. Administrative Principles.
3. Bureaucratic Organization.

Each of these three theories are attributed to a management and organizational behaviour expert who was responsible for developing the theory. Examine a summary of each below:

Scientific Management - Frederick Taylor

Frederick Taylor published a book in 1911 called The Principles of Scientific Management.

Taylor is known as the father of Scientific Management. The essence of this theory is that the success of an organization comes down to whether workers truly know the fundamentals of their jobs or not - clear and specific specifications and expectations of the work they do. Taylor believed that most workplace issues regarding employees not performing well, were the direct result of workers not knowing clear and set responsibilities.

This theory has four guiding principles:

1. Every job should have clear rules and set by set directions to follow.
2. Workers should be selected to best fit each job.
3. Workers should be properly trained to do that job best.
4. Workers should be supported by planning what they do and how to do it.

Administrative Principles - Henri Fayol

Henri Fayol published a book of his own in 1911 - Administration Industrielle et Generale.

The book outlines Fayol's views on the proper management of organizations and essentially creates the Administrative Principles of Management theory. His book outlines 14 principles Fayol felt were important for any manager to learn. If a worker was not performing, Fayol believed it was because the Manager wasn’t following all 14 guiding principles.

Bureaucratic Organization - Max Weber

Max Weber had a fairly substantial impact on the field of management over his lifetime. He believed that people were in positions of authority because of their social status in a society, not because of their abilities. Weber believed that bureaucracy was a way to change that, and a way to create an ideal organization - one guided by bureaucratic characteristics:

• Division of Labour
• Hierarchy of Authority
• Rules and Procedures
• Impersonality
• Selection Based on Merit, not Social Status.

Now that you have explored and learned about the Classical Management Theories, let’s go back and revisit the Cindy scenario from earlier:

 

Behavioural Management Theories

The classical management theories view management from a narrow point of view: a production point of view. These approaches are not always the best, as they can tend to forget about work-related satisfaction - a worker's human need to enjoy their work and gain satisfaction from the labour they provide organizations. Behavioural management theories, on the other hand, attempt to incorporate the social aspect of work and the notion that workers, like all people, attempt to reach their full potential.

Organizations as Communities

Mary Follett has been viewed as a substantial contributor to the field of sociology.  She viewed organizations as communities where managers and workers should work together, side-by-side, to create a sense of collaboration and unity in the workplace.  She felt the main job of a manager was to make sure all workers in organizations cooperated so that the goals of the organization could be met, but also to develop a sense of ownership and collective responsibility.  

Read the following article, Management Theory of Mary Parker Follett from Business.com, that makes connections to Follett’s theory of organizations as communities.

In the previous activity, you learned about how leaders and managers use power to accomplish tasks and to get things done. Think about how Mary Follett might approach leadership power differently? How would she use power to ensure organizational goals are being met?

The Hawthorne Studies

In the 1920s, the Western Electric Company, an American manufacturer, hired Elton Mayo and Fritz Roethlisberger to study and determine how pay-based incentives and worker conditions affected performance.  

The study concluded that pay-based incentives (wages, salaries, bonus pay incentives, etc.) and the physical working conditions are somewhat important in increasing organizational productivity, but not nearly as important as ensuring employees feel as though they are a part of a group. The social aspect of work and employee sense of belonging, seems to trump monetary-based incentives when it comes down to a productive workforce.  

Think about how managers can increase productivity without simply giving employees more money. How can managers create a feeling of belonging, of being a part of a productive team, and performing work that makes a difference? Is this possible without giving employees more money?

Theory X and Y

Douglas McGregor was another leader in the management theory arena. He argued that there are two types of workers, and as a result there needs to be two types of managers.

TheoryXTheoryY

Long Description

Read this article, Is Your Boss a Theory X Manager? from Payscale.com, describing how a Theory X Manager typically leads in the workplace:

Personality and Organization

In 1957, Chris Argyris wrote a book called Personality and Organization. He believes that the key to successful organizations and effective leadership is very simple: managers who treat people positively and with respect will in turn create very productive workforces. He also suggests that workplace conflicts are the direct result of managing people using outdated practices (i.e., classical theory approaches, theory x approach, autocratic styles, etc.)

Argyris suggests that effective managers:

• Expand job opportunities and responsibilities.
• Allow for more task variety - let workers do a variety of things, and learn new things.
• Promote positive human relations first and foremost.
• Create an atmosphere to facilitate employee participation.

Have you worked with a manager, or have you experienced a leader that practiced those suggestions? Did that type of environment make you feel a certain way? Did it encourage you to work harder or perform better?

Quantitative Analysis Theory

Another approach to management is known as the quantitative analysis theory. It attempts to guide managerial decision making through the use of data and research.  This type of management follows an analytical approach to dealing with workplace issues and problems:

1. A problem happens.
2. The problem is analyzed through the collection of data.
3. Mathematical calculations and models are applied.
4. An optimal solution is identified.

Think about the typical workplace problem, and the solution, to help illustrate the quantitative analysis approach.