TOJ VIMARU 2016 TYPES OF MANAGEMENT (1)

TYPES OF APPROACHES TO MANAGEMENT Major Approaches to Management The origins of mechanistic organization • Instruments created to achieve other ends – Greek: organon = tool or instrument – Importance rose along with the industrial revolution • “Mechanized” army – Frederick the Great, ruled from 1740-86 – introduced rank and uniform – Operating through means of standardized parts • Max Weber early twentieth century – First definition of bureaucracy as a form of organization (precision, speed, clarity, etc.) Major Approaches to Management Classical management approaches Frederick Taylor  Scientific Management     Every job a ‘science’ Pick workers with right abilities Carefully train and provide incentives Support worker by planning work and removing obstacles Says “Management is a science There is one best way and one best person to the task I love efficiency and I love to study people at work Management should be an academic discipline.” His work influenced: Bringing psychology into the workplace Gantt Chart and planning Harvard University offering management Degrees Scientific management (cont’d) • Time Studies – workers timed with stopwatches to identify “appropriate” time for specific tasks • Motion Studies – workers observed to identify “one best way” of completing a task • Theorized three basic categories of worker motivation: “The Carrot”: Financial rewards for workers who perform well “The Stick”: Originally tried fining workers, that failed, simply reassign them “Factory Ethos”: Understanding between laborers and managers to work in harmony Organizational Theory Henry Ford – Student of Scientific Management Model-T Production (Highland Park:1910) Minutes of Effort to Assemble Late Craft Assy Line Fall,1913 Spring 1914 % Reduced Engine 594 226 62 Axle 150 26.5 83 Complete Vehicle 750 93 88 Pre-1912 20-30 per day 1913 100 per day 1914 1.000 per day 1915 3.000 per day Taylor’s Scientific Management Principles Develop a science for each element of an individual’s work, which will replace the old rule-of-thumb method Scientifically select and then train, teach, and develop the worker Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed Divide work and responsibility almost equally between management and workers Management takes over all work for which it is better fitted than the workers Henri Fayol  Management functions     Planning Organizing Leading Controlling Bureaucratic Leadership Style • Manages “by the book¨ • Everything done according to procedure or policy • If not covered by the book, referred to the next level above • A police officer not a leader • Enforces the rules Click to edit Master text styles Second level Third level Fourth level Fifth level Most effective • When: • Staff performing routine tasks over and over • Staff need to understand certain standards or procedures • Safety or security training conducted • Staff performing tasks that require handling cash Ineffective • When: • Work habits form that are hard to break, especially if they are no longer useful • Staff lose their interest in their jobs and in their co-workers • Staff only what is expected of them and no more Style 3: Democratic Wow! That was a really good idea! What YOU think? Democratic Leadership Style • Also known as participative style • Encourages staff to be a part of the decision making • Keeps staff informed about everything that affects their work and shares decision making and problem solving responsibilities Click to edit Master text styles Second level Third level Fourth level Fifth level The Leader • A coach who has the final say, but gathers information from staff before making a decision • Produce high quality and high quantity work for long periods of time • Staff like the trust they receive and respond with cooperation, team spirit, and high morale The Democratic Leader • Develops plans to help staff evaluate their own performance • Allows staff to establish goals • Encourages staff to grow on the job and be promoted • Recognizes and encourages achievement Click to edit Master text styles Second level Third level Fourth level Fifth level Most Effective • When: • Wants to keep staff informed about matters that affect them • Wants staff to share in decision-making and problem-solving duties • Wants to provide opportunities for staff to develop a high sense of personal growth and job satisfaction • A large or complex problem that requires lots of input to solve • Changes must be made or problems solved that affect staff • Want to encourage team building and participation Democratic leadership should not be used when … • Not enough time to get everyone’s input • Easier and more cost-effective for the manager to make the decision • Can’t afford mistakes • Manager feels threatened by this type of leadership • Staff safety is a critical concern “The best argument against democracy is a five-minute conversation with the average voter.” Winston Churchill “Democracy is the worst form of government except for all those others that have been tried.” Winston Churchil “Democracy never lasts long It soon wastes, exhausts, and murders itself There never was a democracy yet that did not commit suicide.” ~ John Adams, 2nd President of the United States “A democracy is nothing more than mob rule, where fifty-one percent of the people may take away the rights of the other forty-nine.” • ~ Thomas Jefferson, 3rd President of the United States Style 4: Laissez-faire Bored and unresponsive Whatever attitude Nothing gets accomplished Laissez-Faire Leadership Style • Also known as the “hands-off¨ style • The manager provides little or no direction and gives staff as much freedom as possible • All authority or power given to the staff and they determine goals, make decisions, and resolve problems on their own Click to edit Master text styles Second level Third level Fourth level Fifth level An effective style to use … • Staff highly skilled, experienced, and educated • Staff have pride in their work and the drive to it successfully on their own • Outside experts, such as staff specialists or consultants used • Staff trustworthy and experienced Click to edit Master text styles Second level Third level Fourth level Fifth level Should not be used • Staff feel insecure at the unavailability of a manager • The manager cannot provide regular feedback to staff on how well they are doing • Managers unable to thank staff for their good work • The manager doesn’t understand his or her responsibilities and hoping the staff cover for him or her [...]... Principles of Management 1 Division of work 7 Remuneration 2 Authority 8 Centralization 3 Discipline 9 Scalable chain 4 Unity of command 10 Order 5 Unity of direction 11 Equity 6 Subordination of individual interests to the general interest 12 Stability of tenure of personnel 13 Initiative 14 Esprit de corps Max Weber  Bureaucracy!  Developed a theory of authority based on an ideal type of organization... a clear vision and a crisp plan of what to achieve Major Approaches to Management Quantitative approach Making informed decisions Evidence based management -using systematic analysis Management science, operations research, operations management Value chain analysis, supply chain management, inventory management, quality control Major Approaches to Management Quality management  TQM  ISO Doing things... authoritarianism Weber’s Bureaucracy Advantages of bureaucracy      Clear division of labor Clear hierarchy of authority Formal rules and procedures Impersonality Careers based on merit 14 Disadvantages of bureaucracy    • • Slowness in handling problems Rigidity in the face of shifting needs Resistance to change Employee apathy Ineffective form of organization – Inability to achieve goals &... Capable of self-control  Willing to accept responsibility  Imaginative and creative  Capable of self-direction Click icon to add clip art McGregor’s Theory X and Theory Y  Self-fulfilling prophecies  Theory X managers create situations where workers become dependent and reluctant  Theory Y managers create situations where workers respond with initiative and high performance Argyris  Classical management. .. with the process itself • Social dysfunctions – Depersonalization – Erosion of individual freedom 15 Major Approaches to Management Follett’s organizations as communities Hawthorne studies  Special attention and participative leadership increased productivity  Workers also slowed production to keep with group norm  Kicked off human relations movement in 1950’s McGregor’s Theory X and Theory Y  McGregor’s... adult personality Argyris  Management practices should accommodate the mature personality by:  Increasing task responsibility  Increasing task variety  Using participative decision making Maslow’s Need Hierarchy Theory • According to American psychologist Abraham Maslow, people are motivated by unsatisfied needs • According to Maslow a good manager will identify which levels of need are active for the... analysis, supply chain management, inventory management, quality control Major Approaches to Management Quality management  TQM  ISO Doing things right The first time Mascot – three layers knowledge management organizational learning ‘knowledge constantly makes itself obsolete’ - Peter Drucker An organization that encourages and helps all members to learn continously, while emphasizing information... and supervision Directive High Task and Relationship Orientations Supportive Participative Monitoring the appreciative approach exercises • Managerial assumptions p 49 - individually • Evidence-based management quiz - group exercise