I need someone to write a four paper on classical management theory?
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ManagementTheoriesPowerpointFINAL-1.pptxThe Evolution of Management Theories
MGMT 4108-93
Norvell Thomas
April 28, 2021
Aidee Tapia Velazquez
Dominga Usher
Eddie Delgado
Patrick Tejeda
Sandra Alvarado-Cueva
Wendy Jenkins
Classical
Behavioral
Quantitative
Systems
Contingency
Quality
Classical Management Theory
Is based on the belief that workers only have economic needs. It does not take into account social needs or job satisfaction, but instead advocates a specialization of labor, centralized leadership and decision-making, and profit maximization
The Textile industry was one of the first to implement classical management theory
Frederick W. Taylor (The Father of Scientific Management)
Frederick Taylor’s scientific management theory, also called the classical management theory, emphasizes efficiency.
The scientific management theory was based on four key goals
Develop a science of management for every job
Company leadership should develop a standard method for doing each job using scientific management.
Select workers scientifically so they fit the job
Workers should be selected for a job based on their skills and abilities.
Develop and train workers scientifically, offer incentives
Work should be planned to eliminate interruptions.
Create cooperation between management and labor
Wage incentives should be offered to encourage increased output.
Advantages of Classical Management theory
Designed solely to streamline operations, increase productivity and enhance production line
Employees should be motivated by monetary rewards. In other words, they will work harder and become more productive if they have an incentive to look forward to. This gives management easier control over the workforce. Employees feel appreciated when being rewarded for hard work. A small-business owner can take this approach to motivate the employees to achieve production goals.
Flaws of Classical Management Theory
By attempting to predict and control human behavior, this theory overlooks the importance of human relations and creativity.
In essence, this theory views workers almost as machines, but fails to take into account what job satisfaction, employee input and morale can bring to the workplace.
The reliance on prior experience and the ability to apply it almost solely to manufacturing settings is another drawback of this theory.
Behavioral Management Theory
Behavioral Management Theory focuses on the notion that to increase employee productivity employee physiological needs must be met.
Employees increase production when they feel valued, heard, appreciated and seen.
Many of these findings are credited to Elton Mayo’s Hawthorne Experiment
Hawthorne’s Mayo Experiment
From 1927 to 1932
Conducted to test employee productivity under different circumstances
Employees were observed under minimal different conditions
Lighting
Free hot meals
Extended breaks
Shorter working days
How is Hawthorne’s Experiment Still Relevant?
This started the movement for human relations in the workplace
Employers now understand that the work environment can affect worker productivity
The minimal changes and incentives can make a significant difference in employee satisfaction
Employees need to be heard, seen, feel appreciated for the company to thrive and maximize productivity
Employees need to feel like they are part of a group
Behavior and Maslow’s Hierarchy of Needs
Much of the behavioral management theory is also credited to Maslow’s hierarchy of needs. Which is used in various industries not only in the workplace.
Maslow believed that all of the needs must be met in order for an individual to reach self actualization.
In the workplace a realized individual is an employee who thrives because all needs have been met.
Quantitative Management Theory
Quantitative management theory is a management approach given by the mathematical school that recommends the use of computers and mathematical techniques to solve complex management issues and assist in the managerial decision-making process. Managers observe historical quantitative relationships and use quantitative techniques such as statistics, information models, and computer simulations to improve their decision making.
During World War II, the U.S and the U.K army brought together business managers, government officials, and scientists and took their help to decide on the best way to utilize the existing resources. These experts from different domains and areas used some of the mathematical and statistical approaches devised by Taylor and Gantt to solve these logistical problems. This is how the quantitative-based management perspective emerged.
Quantitative Management Theory
The quantitative approach to management includes the application of statistics, optimization models, information models, and computer simulation to assist in the managerial decision-making process. More specifically, this approach focuses on achieving organizational effectiveness through the application of mathematical and statistical concepts.
The three main branches of the quantitative approach are:
Management Science,
Operations Management
Management Information System
Quantitative Management Theory
The new rise from this theory is financial engineering. The theories and the practice of finance are challenged today by complex financial and global systems and by dynamically changing regulatory environments and politics.
Financial engineering is a relatively new field of study. Various fields, such as economics, mathematics, computer science, and quantitative theory are integrated and utilized today develop algorithmic or artificial intelligence trading programs that are used in the financial markets. Many areas, including corporate finance, risk management, and derivatives products, use financial engineering.
Quantitative Management Theory
The financial industry is always coming up with new and innovative investment tools and products for investors and companies. Financial engineers run quantitative risk models to predict how an investment tool will perform and whether a new offering in the financial sector would be viable and profitable in the long run, and what types of risks are presented in each product offering given the volatility of the markets.
Quantitative Management Theory
Although financial engineering has revolutionized the financial markets, it played a role in the 2008 financial crisis. As the number of defaults on subprime mortgage payments increased, more credit events were triggered. Credit Banks could not make the payments on these swaps since the defaults were happening almost at the same time.
Due to the 2008 global recession brought on by engineered structured products, financial engineering is considered to be a controversial field. However, it is apparent that this quantitative study has greatly improved the financial markets and processes by introducing innovation, rigor, and efficiency to the markets and industry.
Systems Management Theory
All factors of a company become parts of a process and all parts must work with each other to make the company functional.
Also believed that organizations must obtain resources from the outside in order to function and reach equilibrium
Also categorized as an ‘Open System’
Characteristics of Systems Management
Sub-systems: Different departments that make up the organization. Such as, accounting, suppliers, management, workers.
Holism: The decisions made in every sub-system affects the rest of the company, making every decision a whole.
Synergy: The collective energy being the output is greater than individual energy.
Closed and Open Systems: The organization is an open system made up of closed sub-systems.
System Boundary: The organization stays…
Components of Systems Management
Input: Raw materials, employees, management, accounting
Transformation: Activities, processes, operation methods
Output: Products, Services, Revenue
Feedback: Results from input and output. Customer Reviews
Environment: Internal and external components that make up the organizational system
Contingency Management Theory
Theorists Henri Fayol and Frederick Taylor identified and emphasized management principles they believed would make companies more successful
They focused on situational factors that would affect organization structure and leadership styles for different situations
Contingency Management Theory Perspective
Based on the idea that there is no one best way of managing
To be effective, planning, organizing, leading, and controlling must be tailored to the particular circumstances an organization faces.
Contingency Theory Developments
There has been little development in the Contingency Management Theory except in organization and leadership.
Stable environments allow for the use of policies, rules, and procedures to guide decision making for routine tasks and problems
Unstable environments require general problem- solving methods for nonroutine tasks and problems.
Dissatisfaction with trait-based theories of leadership effectiveness has led to the contingency theory’s development in this area.
It has been suggested that the degree to which subordinates like or trust a leader, the degree to which a task is structured, and the formal authority possessed by the leader all impact the effectiveness and different leadership styles.
Contingency Theory Developments Continued
What Is Quality Management Theory?
Quality management theory is a business concept that focuses on the continuous improvement of the overall operation of a business to maintain an optimal level of excellence.
It supports the idea that the long-term success of a company comes from customer satisfaction and loyalty.
It requires that all stakeholders in a business work together to improve processes, products, services and the culture of the company itself.
It precedes all the other historical management theories and incorporates each method.
Guiding Principles Of Quality Management
1. Customer Focus
2. Leadership
3. People Involvement
4. Process Approach
5. Continual Improvement
6. Evidence-Based Decision Making
7. Relationship Management
Noteworthy Contributors
Walter Shewart – Developed the methods for statistical analysis and control of quality. He developed control charts and introduced the term “quality assurance.”
W. Edwards Deming – Taught methods for statistical analysis and control of quality to Japanese engineers and executives. Quality philosophy focused on reducing uncertainty and variability.
Joseph M. Juran – Taught the concepts of controlling quality and managerial breakthrough.
Armand V. Feigenbaum – Introduced concepts of total quality control & continuous quality improvement.
Philip B. Crosby – Promotion of “zero defects” paved the way for quality improvement in many companies.
Karou Ishikawa – Developed the “fishbone” (cause and effect) diagram. His philosophy contributed to Japan’s ascendency as a quality leader. Emphasized importance of the internal customer.
While the concept of quality management originated in the manufacturing sector, its principles can be applied to a variety of industries.
With a focus on long-term change over short-term goals, quality management is designed to provide a cohesive vision for systematic change.
With this in mind, quality management can be used in many industries including, but not limited to, manufacturing, banking, finance, and medicine.
References
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Classical and Scientific Management Theory—Business.com. (n.d.). Retrieved April 27, 2021, from https://www.business.com/articles/classical-and-scientific-management-theory/
Contingency Approach to Management | Encyclopedia.com. (n.d.). Retrieved April 27, 2021, from https://www.encyclopedia.com/management/encyclopedias-almanacs-transcripts-and-maps/contingency-approach-management
Degrees explained: Financial engineering. (n.d.). Retrieved April 27, 2021, from https://www.studyinternational.com/news/financial-engineering/
Elton Mayo’s Hawthorne Experiment and It’s Contributions to Management. (2010, April 12). MBA Knowledge Base. https://www.mbaknol.com/management-principles/elton-mayos-hawthorne-experiment-and-its-contributions-to-management/
Financial Engineering—Overview, Uses, Practical Example. (n.d.). Corporate Finance Institute. Retrieved April 27, 2021, from https://corporatefinanceinstitute.com/resources/knowledge/finance/financial-engineering/
HRKatha, P. S. |. (2018, January 9). The ‘Hawthorne Effect’ in the modern workplace. HR Katha. https://www.hrkatha.com/features/the-hawthorne-effect-in-the-modern-workplace/
Management Thought—Organization, system, style, manager, school, model, company, hierarchy, workplace, business. (n.d.). Retrieved April 24, 2021, from https://www.referenceforbusiness.com/management/Log-Mar/Management-Thought.html
References Continued
OpenStax. (2019). Contingency and System Management. In Principles of Management. OpenStax. https://opentextbc.ca/principlesofmanagementopenstax/chapter/contingency-and-system-management/
Systems Theory of Management—Explained. (n.d.). The Business Professor, LLC. Retrieved April 24, 2021, from https://thebusinessprofessor.com/management-leadership-organizational-behavior/systems-theory-of-management
TechnoFunc. (n.d.). TechnoFunc—Quantitative Theory of Management. Retrieved April 27, 2021, from https://www.technofunc.com/index.php/leadership-skills-2/leadership-a-management/item/quantitative-theory-of-management
The History of Quality | Dr Juran and Quality Improvement. (2020, March 4). Juran. https://www.juran.com/blog/the-history-of-quality/
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Tuovila, A. (n.d.). Financial Engineering Definition. Investopedia. Retrieved April 27, 2021, from https://www.investopedia.com/terms/f/financialengineering.asp
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