Saturday, 2 April 2016

Henri Fayol's Principles of Management

Henri Fayol's Principles of Management

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Managers in the early 1900s had very few external resources to draw upon to guide and develop their management practice. But thanks to early theorists like Henri Fayol (1841-1925), managers began to get the tools they needed to lead and manage more effectively. Fayol, and others like him, are responsible for building the foundations of modern management theory.

Background

Henri Fayol was born in Istanbul in 1841. When he was 19, he began working as an engineer at a large mining company in France. He eventually became the director, at a time when the mining company employed more than 1,000 people.
Through the years, Fayol began to develop what he considered to be the 14 most important principles of management. Essentially, these explained how managers should organize and interact with staff.

Fayol's 14 Principles of Management

Fayol's principles are listed below:
  1. Division of Work – When employees are specialized, output can increase because they become increasingly skilled and efficient.
  2. Authority – Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility.
  3. Discipline – Discipline must be upheld in organizations, but methods for doing so can vary .read more..

Basic management models and theories

Basic management models and theories

Management and Change: Basic management models and theories associated with motivation and leadership

Classical Management Theory

Here we focus on three well-known early writers on management:
Henri Fayol
FW Taylor
Max Weber

Definition of management: Management takes place within a structured organisational setting with prescribed roles. It is directed towards the achievement of aims and objectives through influencing the efforts of others.
Classical management theory
  • Emphasis on structure
  • Prescriptive about 'what is good for the firm'
  • Practical manager (except Weber, sociologist)
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    Advantages
  • Fayol was the first person to actually give a definition of management which is generally familiar today namely 'forecast and plan, to organise, to command, to co-ordinate and to control'.
  • Fayol also gave much of the basic terminology and concepts, which would be elaborated upon by future researchers, such as division of labour, scalar chain, unity of command and centralization.
Disadvantages
  • Fayol was describing the structure of formal organizations.
  • Absence of attention to issues such as individual versus general interest, remuneration and equity suggest that Fayol saw the employer as paternalistic and by definition working in the employee's interest.
  • Fayol does mention the issues relating to the sensitivity of a patients needs, such as initiative and 'esprit de corps', he saw them as issues in the context of rational organisational structure and not in terms of adapting structures and changing people's behaviour to achieve the best fit between the organisation and its customers.
    Max Weber (1864 - 1924), Germany
    Bureaucracy in this context is the organisational form of certain dominant characteristics such as a hierarchy of authority and a system of rules.
    Bureaucracy in a sense of red tape or officialdom should not be used as these meanings are value-ridden and only emphasize very negative aspects of the original Max Weber model.
    Through analyses of organisations Weber identified three basic types of legitimate authority: Traditional, Charismatic, Rational-Legal.read more..

 

The Father of Management Theory

Peter Drucker: The Father of Management Theory

Drucker, the man who invented management theory, put great currency in listening, asking questions and letting natural patterns emerge from the answers.
The author of 39 books during his long career, and counselor to titans of business and rulers of nations, Drucker championed the powers of observation, often formulating simple ideas that triggered startling results. The Practice of Management (1954) and The Effective Executive (1966) are considered his landmark works. Part of Drucker’s genius lay in his ability to find patterns among seemingly unconnected disciplines. “The most important thing in communication is to hear what isn’t being said,” he once said.
“Whether it’s recognized or not, the organization and practice of management today is derived largely from the thinking of Peter Drucker,” BusinessWeek reported shortly after his death at 95 in 2005. “What John Maynard Keynes is to economics or W. Edwards Deming to quality, Drucker is to management.”
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High-Octane Testimonials
Many of Drucker’s notions might be considered common sense today, but they broke considerable new ground when he first started studying and writing about them in the 1940s. His work, and personal contact, shaped the thinking of the top management minds in the world.
“He was the creator and inventor of modern management,” management expert Tom Peters told Newsweek in 2005. “In the early 1950s, nobody had a tool kit to manage these incredibly complex organizations that had gone out of control. Drucker was the first person to give us a handbook for that.”
Drucker, born in Austria in 1909, gained his first experience in this listening-and-learning approach from his parents, Adolph and Caroline, highly educated professionals who reveled in inviting cadres of intellectually stimulating characters into their Vienna home for broad discourses on medicine, politics and music.read more...

 

 

Popular Management Theories Decoded

Until the day computers are able to think, learn and feel emotions, humans will probably be the most complicated assets to manage. Error-free performance from a printer or fax machine but you can't expect the same thing from a human. On the other hand, there are many things that machines just aren't capable of, which makes human assets unexpendable. For this reason, proper management is vital to an organization's success.
Theorists have long speculated on what type on management is best for humans in the professional setting. Their management theories, or collections of ideas that provide the framework for effective management strategy, are implemented in modern workplaces to motivate and bring the best out of employees. It's commonplace for managers to use more than one theory in order to achieve productivity or organizational goals. It is important for managers to understand these different theories and know how to implement them.


Throughout history, there have been managers. Well, the reality is that way back in the day they were called 'leaders' or 'adventurers,' but as time went on the term 'manager' began to take hold. No one would ever think Christopher Columbus 'managed' his way to the Americas or that George Washington 'managed' the U.S. army. In many cases, these guys knew what they wanted to do or knew what they had to do and did it. Even today, we typically do not talk about managers per se but rather leaders. 'Manager' has become more of an adjective than a noun, describing what someone does or their role. 'Bill manages the department'; 'she's a great manager'; 'he managed the team very well', etc.
What we have to understand is that a leader does indeed manage what they are responsible for. And, over time, there have been multiple theories of management that have evolved and that these leaders use as a guiding force behind their management or leadership philosophy. The three most recognized management theories are:
  • The Quantitative Approach: This approach is centered on statistics and mathematical techniques - sounds like a boatload of fun if you ask me.
  • The Systems Approach: As one could probably guess, this approach focuses on systems that, when put together, make a whole unit, kind of like a jigsaw puzzle.
  • The Contingency Approach: This approach believes there is no one system or approach to managing an organization. These guys believe you take it as it comes but plan to deal with issues if they pop up. Anyone who has ever had a baby knows moms and dads have contingency plans all over the place just in case junior gets sick, is hungry or needs a nap.
So in this lesson let's take a look at these different theories and how they shape how leaders (okay, managers) manage these areas or companies they are responsible for. It's important to understand, though, that in one company, all these different approaches can be used. There's not one that is better than another, just different, and sometimes they have to be blended together for a company or organization to run.

Quantitative Approach

Okay, get out your slide rules and calculators, because that is what this approach uses as its guiding principles. You see, the quantitative approach is solely reliant on statistics and data. The big word we are looking for here is quantitative, which means the measurement of quantity or amount. So a bunch of really smart people get together and they crunch and crunch data to decide how a business should run or be managed. Scientists use this approach a great deal and, in many cases, so do accountants and finance people, mainly because their world revolves around data. It is not glamorous or creative. Heck, it could even be said it isn't fun, but someone has to do it, and each part of a company or organization needs people to use this approach.
Think about if you had a manufacturing company that made flying monkeys. Well, someone has to statistically look at the data to make sure the monkeys are flying as far as they should and monitor if you are producing any defective monkeys (and no one wants a defective monkey). This data, once it's gathered, is presented to the company for review and action if needed.

Systems Approach

Now let's talk a little about the systems approach. When I was younger, I used to play with Legos - those little building blocks that I could make a house or car out of (okay, I thought it looked like a house or a car, but it probably looked more like a squid that was in a train wreck). In many ways, the systems approach to management is very much like Legos. The systems approach takes the viewpoint that a company is really an interconnected group of systems that all work together (or should work together). The best way to view this system is by thinking of a company as a machine. You have:
  • Inputs: Material, information or data that goes into the machine
  • Processes: Work that is done to the material, information or data while it's in the machine
  • Outputs: The final product that comes out of the machine
Okay, so in this system, managers see the company as one big machine that has to work together to take inputs and make them outputs. As an example, let's look at a toaster. The systems approach to management believes you put in bread, turn on the toaster and, when the process is done, toast comes out, hopefully not burned too much. Their job or belief is to work with each part of the system to make sure the end result is what is needed - what went in, what happened while it was in there and what it looked like when it came out.
To compare this to the quantitative approach, a manager that follows that approach would only want to know data about how long the bread was in the toaster and the level of, well, toasting that happened when it came out.
So we can begin to see how, in some companies, we have a blending of approaches to managing the work or organization. One wants to keep and track data to see how the company is functioning, and in many cases, that data can be presented to the manager that follows the systems approach to make changes needed if things are not running right in the process.

Friday, 1 April 2016

Historical Theories of Management

Scientific Management Theory

(1890-1940)
At the turn of the century, the most notable organizations were large and industrialized. Often they included ongoing, routine tasks that manufactured a variety of products. The United States highly prized scientific and technical matters, including careful measurement and specification of activities and results. Management tended to be the same. Frederick Taylor developed the :scientific management theory” which espoused this careful specification and measurement of all organizational tasks. Tasks were standardized as much as possible. Workers were rewarded and punished. This approach appeared to work well for organizations with assembly lines and other mechanistic, routinized activities.

Bureaucratic Management Theory

(1930-1950)
Max Weber embellished the scientific management theory with his bureaucratic theory. Weber focused on dividing organizations into hierarchies, establishing strong lines of authority and control. He suggested organizations develop comprehensive and detailed standard operating procedures for all routinized tasks.

Human Relations Movement

(1930-today)
Eventually, unions and government regulations reacted to the rather dehumanizing effects of these theories. More attention was given to individuals and their unique capabilities in the organization. A major belief included that the organization would prosper if its workers prospered as well. Human Resource departments were added to organizations. The behavioral sciences played a strong role in helping to understand the needs of workers and how the needs of the organization and its workers could be better aligned. Various new theories were spawned, many based on the behavioral sciences (some had name like theory “X”, “Y” and “Z”).

Traits of Progressive Management Development Programs

With the Human Relations movement, training programs recognized the need to cultivate supervisory skills, e.g., delegating, career development, motivating, coaching, mentoring, etc. Progressive management schools now have students review a wide body of management topics and learn those topics by applying that knowledge in the workplace and reflecting on that application. Learning activities incorporate learners’ real-world activities in the workplaces or their lives. Assignment include reflection and analysis on real-world experience. Learning is enhanced through continuing dialogue and feedback among learners. Very good schools manage to include forms of self-development, too, recognizing that the basis for effective management is effective self-management.
Effective management development programs help students (learners) take a system’s view of their organizations, including review of how major functions effect each other. Assignments include recognizing and addressing effects of one actions on their entire organization.

Leadership management

Leadership / management

management and leadership theories, models and gurus

nudge theory

Nudge theory is a flexible and modern change-management concept for:
understanding of how people think, make decisions, and behave,
helping people improve their thinking and decisions,
managing change of all sorts, and
identifying and modifying existing unhelpful influences on people.
Nudge theory was named and popularized by the 2008 book, 'Nudge: Improving Decisions About Health,
Wealth, and Happiness', written by American academics Richard H Thaler and Cass R Sunstein. The book
 is based strongly on the Nobel prize-winning work of the Israeli-American Daniel Kahneman and Amos 
Tversky. Nudge theory is a highly innovative, effective model for change-management.

Leadership / management

management and leadership theories, models and gurus

nudge theory

Nudge theory is a flexible and modern change-management concept for:
  • understanding of how people think, make decisions, and behave,
  • helping people improve their thinking and decisions,
  • managing change of all sorts, and
  • identifying and modifying existing unhelpful influences on people.
Nudge theory was named and popularized by the 2008 book, 'Nudge: Improving Decisions About Health, 
Wealth, and Happiness', written by American academics Richard H Thaler and Cass R Sunstein. The book 
is based strongly on the Nobel prize-winning work of the Israeli-American Daniel Kahneman and Amos 
Tversky. Nudge theory is a highly innovative, effective model for change-management.

 

 

 

corporate governance

Corporate Governance is fascinating, hugely dynamic, and very far-reaching. It grew as a concept in 
response to increasingly serious corporate scandals of the late 1900s, and remains strongly concerned with
 these areas of corporate risk. The ideas surrounding Corporate Governance are increasingly useful for 
small organizations as well as the very biggest. Corporate Governance also offers interesting perspectives 
for leadership, authority, ego, wealth creation, greed, risk, responsibility, ethics, morality, etc., and how 
these issues reconcile or conflict with organizational and market dynamics, and the needs of society, 
environment, quality of life, economic health, etc.
The Psychological Contract is an increasingly relevant aspect of workplace relationships and wider human 
behaviour. Descriptions and definitions of the Psychological Contract first emerged in the 1960s, notably in 
the work of organizational and behavioural theorists Chris Argyris and Edgar Schein. Many other experts 
have contributed ideas to the subject since then, and continue to do so, either specifically focusing on the 
the Psychological Contract, or approaching it from a particular perspective, of which there are many. The 
Psychological Contract is a deep and varied concept and is open to a wide range of interpretations and 
theoretical studies.

maslow's hierarchy of needs

Each of us is motivated by needs. Our most basic needs are inborn, having evolved over tens of thousands of years. Abraham Maslow's Hierarchy of Needs helps to explain how these needs motivate us all. Maslow's Hierarchy of Needs states that we must satisfy each need in turn, starting with the first, which deals with the most obvious needs for survival itself. Only when the lower order needs of physical and emotional well-being are satisfied are we concerned with the higher order needs of influence and personal development.

love and spirituality in management and business

Love in business and work means making decisions and conducting oneself in a way that cares for people and the world we live in. So why is love (or spirituality) such a neglected concept in business? It hasn't always been so... read more

organizational change, training and learning

Modern principles for organizational change management and effective employee training and development. These principles are for forward-thinking emotionally-mature organizations, who value integrity above results, and people above profit. This is not to say that results and profit don't matter, of course they do. The point is that when you value integrity and people, results and profit come quite naturally...



corporate governance

Corporate Governance is fascinating, hugely dynamic, and very far-reaching. It grew as a concept in response to increasingly serious corporate scandals of the late 1900s, and remains strongly concerned with these areas of corporate risk. The ideas surrounding Corporate Governance are increasingly useful for small organizations as well as the very biggest. Corporate Governance also offers interesting perspectives for leadership, authority, ego, wealth creation, greed, risk, responsibility, ethics, morality, etc., and how these issues reconcile or conflict with organizational and market dynamics, and the needs of society, environment, quality of life, economic health, etc.
The Psychological Contract is an increasingly relevant aspect of workplace relationships and wider human behaviour. Descriptions and definitions of the Psychological Contract first emerged in the 1960s, notably in the work of organizational and behavioural theorists Chris Argyris and Edgar Schein. Many other experts have contributed ideas to the subject since then, and continue to do so, either specifically focusing on the the Psychological Contract, or approaching it from a particular perspective, of which there are many. The Psychological Contract is a deep and varied concept and is open to a wide range of interpretations and theoretical studies.

maslow's hierarchy of needs

Each of us is motivated by needs. Our most basic needs are inborn, having evolved over tens of thousands


of years. Abraham Maslow's Hierarchy of Needs helps to explain how these needs motivate us all. Maslow's Hierarchy of Needs states that we must satisfy each need in turn, starting with the first, which
 
deals with the most obvious needs for survival itself. Only when the lower order needs of physical and 
emotional well-being are satisfied are we concerned with the higher order needs of influence and personal
 
development.

love and spirituality in management and business

Love in business and work means making decisions and conducting oneself in a way that cares for people
 
and the world we live in. So why is love (or spirituality) such a neglected concept in business? It hasn't
 
always been so... read more

organizational change, training and learning

Modern principles for organizational change management and effective employee training and development
. These principles are for forward-thinking emotionally-mature organizations, who value integrity above results, and people above profit. This is not to say that results and profit don't matter, of course they do.
 The point is that when you value integrity and people, results and profit come quite naturally...

Management Theories & Concepts at the Workplace

Management theories are implemented to help increase organizational productivity and service quality. Not many managers use a singular theory or concept when implementing strategies in the workplace: They commonly use a combination of a number of theories, depending on the workplace, purpose and workforce. Contingency theory, chaos theory and systems theory are popular management theories. Theory X and Y, which addresses management strategies for workforce motivation, is also implemented to help increase worker productivity.

Contingency Theory

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. 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.




Systems Theory

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.