ORGANIZATION AND MANAGEMENT by Septh Madrid

Evolution of Management Theories

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The Classical Theory

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This theory emphasizes that there is “one best way” to manage by following definite instructions.

The Neo-Classical Theory

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Neo Classical theory, also referred to as behavioral science approach gives importance to human and social aspects of the worker and his relations in the organization.

Management Science Theory

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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.

Organizational Environmental Theory

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The Systems Management Approach

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Contingency Theory

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a.) Bureaucratic Management

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According to Weber's Bureaucratic Theory of Management, the best way to run a business is to structure it into a rigid hierarchy of people governed by strict rules and procedures.

b.) Scientific Management

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“Father of Scientific Management”. 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”.

c.) Administrative Management

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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.

a.) Owen’s Theory

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Importance of Human resources

b.) Mary Parker Follet

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True Leaders, according to Follet's theory, "create group power, rather than expressing personal power.

c.) Cherster Barnard

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d.) Theory X and Theory Y of Douglas McGregor

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e.) Abraham Maslow’s Hierarchy of Needs

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A Theory of motivation which states that five categories of human needs dictate an individual's behavior.

f.) Two Factor Theory of Frederick Herzberg

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

g.) ERG Theory of Clayton Alderfer

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Represents existence needs, relatedness needs and growth needs.

a.) Quantitative Management

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Involves the use of quantitative techniques, such as statistics, information models, and computer simulations, to improve decision making.

b.) Operations Management

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It uses a quantitative approach to look for ways in increasing productivity, improve quality, and reduce costly inventories.

c.) Total Quality Management

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To give managers feedback about their own performance; top management can monitor the company as a whole.

d.) Management Information Systems

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

Seven(7) Advantageous Attributes of Bureaucracy

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Rules

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- serve as a standard for guiding or managing action or conduct of employees in the workplace

Impersonality

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- provides equity and fairness for all employees.

Division of labor

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- is the clear splitting and defining of work based on specialization and personal experience.

Hierarchical structure

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- categorizes jobs based on the level of authority.

Authority structure

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- refers to “who has the right to decide”

Commitment

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

Rationality

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- is attaining the organizational goals the most efficient way.

Traditional authority

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- founded in custom, ancestry, gender, birth order

Charismatic authority

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- based on the uniform application of established laws and rules

Rational-legal authority

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- visible in a leader whose mission and vision in life encourage others

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1. Science, Not Rule of Thumb

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2. Harmony, Not Discord

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3. Cooperation, Not Individualism

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

Four(4) Principles

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Fourteen(14) Principles of Management

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1. Division of work

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2. Authority signifies

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3. Discipline

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4. Unity of command

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5. Unity of direction

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6. Subordination

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7. Remuneration

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8. Centralization

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9. Scalar chain

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10. Order

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11. Equity

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12. Stability of tenure personnel

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13. Esprit de corps

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14. Initiative

Three(3) ways of dealing with conflict

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

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

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3. Integrative Conflict characterized by both high concern for self and for others.

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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.

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

Theory X

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Theory X gives importance to supervision

Theory Y

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Theory Y stresses on rewards and recognition.

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Two Factor Theory

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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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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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This theory asserts that managers make decisions based on the situation at hand rather than a “one size fits all” method. A manager takes appropriate action based on aspects most important to the current situation.