HSA 171CAR

1436/4/16

Theory: An Explanation of how or why something occurs.

Functions of a Theory:◦ Describe Describe ◦ Explain .Explain .◦ Predict.Predict.◦ Control.Control.

Classical approaches to organizational management and Classical approaches to organizational management and early organizational theories were designed to early organizational theories were designed to predictpredict and and controlcontrol behavior in organizations. behavior in organizations.

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Scientific Management Theory “Fredric

Taylor”

Administrative Theory “ Henri Fayol”

Bureaucracy Theory “ Max Weber”

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A theory that focused on

finding the “one best way”

to perform and manage

tasks.

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Human Relation Theory “ Elton Mayo”

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Fredric Taylor: “ The father of Scientific Management” Primary focus: Tasks. Focused on the manufacturing environment. Taylor’s 4 Management Principles:

◦ Develop a science for each element of an individual's work.

◦ Scientifically select, train and develop the worker.

◦ Heartily cooperate with the workers.

◦ Divide work & responsibility equally between managers &

workers.

◦ Improve production efficiency through work studies, tools,

economic incentives.

Determined the quickest ways to perform tasks.

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▼ Henri Fayol:

▼ Primary focus: Management.

▼ Emphasized the flow of information and how organizations should operate.

▼ Fayol’s Elements of Management:• Planning. Organizing.◦ Command. Control.◦ Coordination.

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Fourteen Principles of Management (Tools for Accomplishing Fourteen Principles of Management (Tools for Accomplishing Objectives)Objectives)◦ Division of work◦ Authority and Responsibility◦ Discipline◦ Unity of Command◦ Unity of Direction◦ Subordination◦ Remuneration◦ Centralization◦ Scalar Chain◦ Order◦ Equity◦ Stability of Tenure◦ Initiative◦ Esprit de Corps

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Principle Description1.Division of work Reduces the span of attention or effort for any one person or group.

Develops practice and familiarity

2. Authority The right to give an order.

3. Discipline Outward marks of respect in accordance with formal or informal agreements between firm and its employees

4. Unity of command One man superior

5. Unity of Direction One head and one plan for a group of activities with the same objective

6. Subordination of individual interests to the general interest The interests of one individual or one group should not prevail over the general good. This is a difficult area of management

7. Remuneration Pay should be fair to both the employee and the firm

8. Centralization reduce importance of subordinate’s role

9. Scalar Chain The line of authority from top to bottom of the organization

10. Order the right man in the right place

11. Equity A combination of kindliness and justice towards the employees

12. Stability of tenure of personnel Employees need to be given time to settle into their jobs.

13. Initiative Within the limits of authority and discipline, all levels of staff should be encouraged to show initiative

14. Esprit de Corps Harmony is a great strength to an organization; teamwork should be encouraged

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Max Weber Primary focus: Organizational Structure described an ideal Bureaucracy as a theory of administration based on based on

rational-legal authority systemsrational-legal authority systems Weber’s 6 Principles of Management:Weber’s 6 Principles of Management:

◦ Division of labor: Organizations need to appear rational and so gain legitimacy, in order to secure resources and support, and to inspire confidence and trust.

◦ Authority hierarchy .◦ Formal selection.◦ Formal rules & regulations.◦ Impersonality.◦ Career orientation.

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Concerned with describing the ideal structure of Concerned with describing the ideal structure of an organization.an organization.

Cornerstone: existence of written rules.Cornerstone: existence of written rules.

The rational application of written rules ensures The rational application of written rules ensures the promotion of legitimate authority and the the promotion of legitimate authority and the effective and efficient functioning of the effective and efficient functioning of the organization.organization.

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Behavioral Theory Of Organization.

Recognized employees as individuals with concrete, human needs, as parts of work groups, and as members of a larger society.

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Elton Mayo Primary focus: Human Factors (Human Relations).

In order to increase Productivity: Teamwork Joint Supervision.

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