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A manager takes appropriate action based on aspects most important to the current situation. Managers in a university may want to utilize a leadership approach that includes participation from workers, while a leader in the army may want to use an autocratic approach.

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This theory asserts that managers make decisions based on the situation at hand rather than a “one size fits all” method.

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Managers who understand systems theory recognize how different systems affect a worker and how a worker affects the systems around them.

A system is made up of a variety of parts that work together to achieve a goal. Systems theory is a broad perspective that allows managers to examine patterns and events in the workplace.

This helps managers to coordinate programs to work as a collective whole for the overall goal or mission of the organization rather than for isolated departments.

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The Systems Management Approach of Herbert Simon

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The Systems Management Approach of Herbert Simon

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Herbert Simon

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These resources include raw materials and skilled manpower that the organization needs to create goods and provide service. The theory focuses on the need to study the external environment of the firm in a detailed manner in order to find success operating with rapidly changing situations through flexibility in management strategies.

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are the set of uncontrollable forces and conditions that may affect the manager’s ability to allocate the resources of the company.

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A management information system (MIS)

is a computerized database of financial information organized and programmed in such a way that it produces regular reports on operations for every level of management in a company.

It is usually also possible to obtain special reports from the system easily. The main purpose of the MIS is to give managers feedback about their own performance; top management can monitor the company as a whole.

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This is a philosophy on continuous quality improvement of inputs, process, and outputs.

Quality means how well a product or service function as it is supposed to be and how close reliable it conforms to the specifications for which it is constructed.

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The practice of operations management has origins from gun manufacturing, particularly from the famous Beretta firearms and gun barrels.

Operations management engages supervising the daily operations of the company in producing goods and services. It usually uses a quantitative approach to look for ways in increasing productivity, improve quality, and reduce costly inventories.

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is a science that makes use of mathematical approaches like linear and nonlinear programming, modeling, and queuing theory to assist managers in making accurate and better decisions on organizational situations like inventory management, sales revenue, capital investment, and even profitability.

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the use of precise statistical model and systematic mathematical techniques to help management solve problems on maximum use of resources to produce goods and services.

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The ERG theory represents existence needs, relatedness needs and growth needs. This theory is built on Maslow’s hierarchy of needs with a condensed understanding of human needs and behaviors.

Existence needs are desires for well-being, such as feeling appreciated and valued. Relatedness needs are interpersonal desires, such as having a strong social network and good relations with management.

Growth needs include the desire for personal and professional training and development, such as coaching and continual training.

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Clayton Alderfer

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The two factor theory identifies two main sources of motivation for people in the workforce.

The first is hygiene factors, such as the working environment, a person’s salary, job security and management styles.

The second motivator in this theory is satisfiers, which include achievement, status, recognition, responsibility and potential growth. The more these factors are present in a worker’s environment, the more an employee will be motivated.

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Two Factor Theory of Frederick Herzberg 

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Two Factor Theory of Frederick Herzberg 

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Frederick Herzberg

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Maslow’s hierarchy of needs identifies a person’s most basic needs on a progressive pyramid, ending with a person’s least basic needs.

Maslow’s theory states that only unsatisfied needs can be used to motivate a person. For example, if a person makes a lot of money, he no longer views money as a motivating factor in his work.

The needs that Maslow identified include physiological, safety, social, esteem and self-actualization.

According to this theory, management can motivate workers by meeting their most basic human needs and building on them. For example, management should ensure that employees are allotted a fair amount of time for food, social interaction and breaks.

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Abraham Maslow

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Theory X values often use an authoritarian style of leadership, Theory Y leaders encourage participation from workers.

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The management theory an individual chooses to utilize is strongly influenced by beliefs about worker attitudes. Managers who believe workers naturally lack ambition and need incentives to increase productivity lean toward the Theory X management style. Theory Y believes that workers are naturally driven and take responsibility.

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Theory X and Theory Y of Douglas McGregor

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Theory X and Theory Y of Douglas McGregor

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Douglas McGregor

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1. The organization as social systems needs cooperation and communication among workers to be effective and achieve goals and objectives. The examination of the external environment and adjusting the internal structure situation must be done for balance.

2. The acceptance theory of authority posited that a worker has free will to disobey the orders of his manager.

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He became the President of New Jersey Bell. His book “The Functions of Executives” revealed two significant contributions:

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1. Domination is a victory of one party over the other.

2. Compromise is both sides giving up something in order to have peace.

3. Integrative conflict resolution is both parties considering their preferences and working together to find the best option that meets the needs of both groups.

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A social worker by profession believed that management is a continuous process. So, for her if a problem has been given a solution, this solution could probably create another dilemma for the company. Further, she made emphasis on the inclusion of workers in decision-making and the dynamism of management.

Follet is best known for her constructive conflict and coordination ideas. She suggested three ways of dealing with conflict, namely:

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- A Welsh social reformer, developed a theory based on his experience with machines during the Industrial Age of the 1800s.

The better a machine is taken care of, maintained and looked after, the better it performs.

This theory was revolutionary during his time and has continued to be true. Management that places the workers’ needs and desires as first priority will produce efficient and motivated people.

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Robert Owen

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suggests the participation of workers in management.

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1. Division of work indicates dividing each job into small and specialized tasks and assigning responsibilities to a specialist of it.

2. Authority signifies the right to give order and power while responsibility means to realize objective.

3. Discipline is making expectations understandable at every level in every organization. Discipline could be in terms of obedience, application, and respect to superiors.

4. Unity of command means a subordinate should receive order from only one boss or superior.

5. Unity of direction connotes that all the works of an organization must perform jointly to achieve a common objective under one plan and head.

6. Subordination of individual interest to common interest means worker prioritizes the common interest of organizations rather than himself as an individual.

7. Remuneration both financial and non-financial incentives should be fair and adequate.

8. Centralization designates that there should be one central point in organization which exercises general direction and control of all the parts.

9. Scalar chain is the chain or line of command and communication from superior to subordinates,

10. Order provides job and materials in place or in proper order for an efficient management and organization’s direction.

11. Equity creates loyalty and devotion among the employees through fair discipline and order.

12. Stability of tenure personnel provides security of job for an employee in an organization which is very significant and a requirement condition. Retaining industrious employees must constantly be a higher priority of management.

13. Esprit de corps means management must promote a harmony of interest and appropriate understanding among workers by working as a team.

14. Initiative suggests that a manger must encourage employees under him to act on their own in support of the organizational objectives using creative means

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His work experience as a managing director significantly shaped his thoughts and ideas in developing the five functions of managers and the fourteen principles of management. These functions of management include planning, organizing, coordinating, commanding, and controlling.

Fayol strongly believed that management could and should be taught to others. That is why principles of management are now being taught in colleges and universities. Managers are now being molded through the combination of education and experience.

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Henri Fayol

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well known for his Gantt Chart, a visual representation of the progress being carried out of each stage of work in a project. Gantt unlike Taylor believed that workers must not be punished for lower production as they took time to learn to be productive. So, he introduced the quota systems and daily bonuses for workers who exceeded their quotas.

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The Gilbreths added more contributions in scientific management.

Frank revolutionized the use of motion pictures to study worker’s motions.

Lillian, the first woman to receive a Ph.D. in Industrial Psychology became noted for championing the workers via standard days, scheduled rest breaks and normal lunch breaks which are now being executed in today’s modern workplaces.

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Development of Each and Every Person to His / Her Greatest Efficiency and Prosperity

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Development of Each and Every Person to His / Her Greatest Efficiency and Prosperity

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According to this principle, the efficiency of each and every person should be taken care of right from his selection. A proper arrangement of everybody’s training should be made. It should also be taken care that each individual should be allotted work according to his ability and interest. Such a caring attitude would create a sense of enthusiasm among the employees and a feeling of belongingness too.

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According to this principle, all the activities done by different people must be carried on with a spirit of mutual cooperation. Taylor has suggested that the manager and the workers should jointly determine standards. This increases involvement and thus, in turn, increases responsibility. In this way we can expect miraculous results.

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·         As per this principle, such an atmosphere should be created in the organization that labor (the major factor of production) and management consider each other indispensable.

·         Taylor has referred to such a situation as a ‘Mental Revolution’. Taylor firmly believed that the occurrence of a mental revolution would end all conflicts between the two parties and would be beneficial to both of them.

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This principle says that we should not get stuck in a set routine with the old techniques of doing work, rather we should be constantly experimenting to develop new techniques which make the work much simpler, easier and quicker.

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- “Father of Scientific Management”
- Frederick Taylor described scientific management as “75% science and 25% common sense”.

According to Taylor, “scientific management means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way”.

The scientific management approach propounded by F.W. Taylor is based upon the following four principles:

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RATIONALITY
is attaining the organizational goals the most efficient way.

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COMMITMENT
is the visualization of employee and the organization as being loyal to each other over the span of the working life of the employee.

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AUTHORITY STRUCTURE
refers to “who has the right to decide”. The amount of
authority amplifies with each level higher a person or organization is in.
There are three types of authority:
•Traditional authority = is founded in custom, ancestry, gender, birth order
•Charismatic authority = is visible in a leader whose mission and vision in
life encourage others
•Rational-legal authority = is based on the uniform application of established
laws and rules

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HIERARCHICAL STRUCTURE
categorizes jobs based on the level of authority.

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DIVISION OF LABOR
is the clear splitting and defining of work based on specialization and personal experience.

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IMPERSONALITY
provides equity and fairness for all employees.

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RULES
serve as a norm for guiding or directing action or conduct of employees in the workplace and provide discipline which the organization requires to attain its goals and objectives.

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- Proposed by German sociologist, Max Weber
-Bureaucracy for Weber is “the exercise of control on the basis of knowledge”.

Bureaucratic management focuses on the use of rules, dividing organizations into hierarchies, an evident division of labor and through procedures to guarantee efficiency and effectiveness.

There are seven advantageous attributes of bureaucracy namely:

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believes that employees are strongly motivated by their physical needs and more specifically, monetary incentives.