Principles of Management CLEP – Theories and Theorists

Henri Fayol
Father of Modern Management, of the administrative school. Believed that managers performed 5 functions: planning, organizing, commanding, coordinating, and controlling. Identified 14 principles of management: division of labor, authority & responsibility, discipline, unity of command, unity of direction, subordination of interest to general good, remuneration of personnel, centralization, scalar chain, order, equity, personnel stability, initiative, and esprit de corps.
Administrative school
Advocated broader administrative practices, typically for higher levels of management. Major contributors: Henri Fayol, Chester Barnard, and Mary Parker Follett.
Functions of Management
Developed by Henri Fayol: (1) Planning, (2) Organizing, (3) Commanding, (4) Coordinating/Leading, and (5) Controlling
Division of Labor
Division of tasks and increased specialization to improve efficiency. First of Fayol’s administrative principles.
Authority & Responsibility
Responsibility = Authority. Authority is needed to sanction and encourage obedience. Managers also assume responsibility for their actions. Second of Fayol’s administrative principles.
Obedience in following and honoring agreements made between firm and employee. Third of Fayol’s administrative principles.
Unity of Command
A single voice or superior is essential so that authority is not undermined. Fourth of Fayol’s administrative principles.
Unity of Direction
For coordination of effort, unity of action is essential. Fifth of Fayol’s administrative principles.
Subordination of interest to general
Individual interests must be subordinated to the interests of the greater corporate good. Sixth of Fayol’s administrative principles.
Remuneration of Personnel
Pay should be fair and satisfying for all employees, including bonuses, piece rates, profit-sharing, and non-monetary incentives. Seventh of Fayol’s administrative principles.
Degree to which decision-making authority is restricted to higher levels of management in an organization. Eighth of Fayol’s administrative principles.
Scalar chain
All individuals are linked vertically in a chain of command for communication and authority. Ninth of Fayol’s administrative principles.
Materials and people should be organized; good selection is part of this order. Tenth of Fayol’s administrative principles.
Equity and equality of treatment are key principles of administration. Eleventh of Fayol’s administrative principles.
Personnel stability
Time on the job is required for good work; stability in the job is important for effectiveness. Twelfth of Fayol’s administrative principles.
The freedom to propose and initiate action is important at all levels. Thirteenth of Fayol’s administrative principles.
Esprit de Corps
Team spirit should be fostered and not abused by written communication. Verbal explanations help maintain spirit. Fourteenth of Fayol’s administrative principles.
Chester Barnard
Of the administrative school. Believed that the organization had to create positive inducements and minimize negative inducements in order to encourage cooperation. Also formed acceptance theory. His approach became known for his emphasis on the informal organization.
Acceptance theory
Employees do not automatically accept whatever directives they receive from superiors. Each worker has a zone of indifference that encompasses the issues on which employees are willing to accept authority. If asked to do something outside the zone of indifference, the authority would have no influence over the employee.
Mary Parker Follett
Of the administrative school. Applied psychological principles to understanding workers and their reactions to management. Believed that orders are not blindly accepted; persuading and even reasoning with workers is not enough. Workers’ attitudes are important, and managers influence these attitudes. Advocated empowering workers: having managers share power and facilitate tasks for workers rather than just control and order.
Paul Hersey and Ken Blanchard
Created the life cycle model
Life cycle model
Hersey-Blanchard model. Leadership styles and task behaviors are either high or low. Low-low=Delegating style. Low-high=Directing. High-low=Participating. High-high=Selling. Delegating styles have high readiness for being delegated; they are able, willing, and confident. Directing styles have low readiness for being delegated; they are unable, unwilling, and insecure. Participating styles have a medium high readiness; they are able, but unwilling or insecure. Selling styles have medium low readiness; they are unable, but willing or confident.
Philip Crosby
Introduced concept of zero defects. Though illusive, it was designed to overcome the common view that defects happen and there is some reasonable level of poor quality. Pushed for preventative measures and a total system approach. Explained that improving quality actually increases profits, not just expenses.
Edward Deming
Identified fourteen principles of quality, including “adopt a new philosophy” and “constancy of purpose.” Urged ending a focus on mass inspection and on awarding contracts solely on the basis of price. Training, education, and continuous improvement were key components of his philosophy. Believed that when workers have info about quality and share the vision, they will do the right thing.
Joseph Juran
Believed three principles should underlie quality: (1) top people should be in charge, (2) extensive training, and (3) change should take place at a revolutionary pace.
Robert House
Created path-goal theory, which has been researched extensively. Tied to the expectancy theory of motivation.
Expectancy theory of motivation
Bases motivation on the confidence to exert effort (expectancy), followed by valued outcomes or rewards (instrumentality and valued outcomes).
Path-goal theory
Developed by Robert House. Views the manager’s job as helping the subordinate to perform, receive rewards, and be satisfied. The manager identifies the paths to performance and strives to see that good performance is rewarded. Specifies 4 types of leader behavior: (1) directive style, (2) supportive style, (3) achievement style, and (4) participative style.
Directive style
Manager tells the subordinate how to perform, specifying steps with details on how to accomplish them.
Supportive style
Manager asks questions and encourages the subordinate.
Achievement style
Manager helps subordinates set higher, more challenging goals.
Participative style
Manager involves subordinates in decision-making, asking for their input and involvement.
William Ouchi
Used term “clan control” in describing Japanese control systems. Rules and procedures were called “bureaucratic control.” Clan control is an internal control: a strong vision is shared by members that leads to peer influence. Bureaucratic control is an external approach relying on discipline systems and rules.
Fred Fiedler
Developed contingency theory, describing a situational approach. Asked subordinates to identify adjectives describing their least preferred coworker (LPC). Categorized the low LPC manager as task-motivated, while the high LPC as relationship-motivated. Identified 3 situational components that matched differences in leader style or motivation, in decreasing order of importance: leader-follow relations, amount of task structure, and leader’s position power. He put together a table of matches demonstrating how different components worked in different situations.
Contingency theory
Developed by Fiedler; leadership theory that states that in order to maximize work group performance, leaders must be matched to the situation that best fits their leadership style.
Frank and Lillian Gilbreth
Pioneer of Time and Motion Studies; focused mostly on making work more efficient and saw their approach as concerned with worker’s welfare.
Motion studies
Breaking each task into its separate motions and then eliminating those that are unnecessary or repetitive
Time studies
Scientific analysis to determine the best way to do work and then determine the amount of time required to do it.
Frederick Taylor
Father of Time and Motion Studies. Part of scientific management school. Focused on reducing time and making better profits.
Robert Blake and Jane Mouton
Applied research done by Ohio State University using a managerial grid. X-axis is concern for production. Y-axis is concern for people. 1,1 = Impoverished Manager. 1,9 = Country Club Manager. 9,1 = Task Master Manager. 9,9 = Team Manager.
University of Michigan
Examined leader behavior in organizations along a single dimension, from job-centered to employee-centered approaches. More effective managers were more employee-centered.
Ohio State University
Researchers here conceptualized leadership as two independent dimensions: initiation of structure and consideration. This work was popularized and visualized by Blake and Mouton.
Douglas McGregor
Of the classical school. Believed that Theory X Managers think their workers are lazy, while Theory Y Managers think their workers will accept responsibility and strive to improve themselves. Since workers respond to the attitudes of their managers, the beliefs become self-fulfilling prophecies.
Daniel Katz and Robert Khan
Identified ten principles of a systems approach to organizations. (1) Input, (2) Throughput, (3) Output, (4) Cycles of Events, (5) Negative Entropy, (6) Negative Feedback, (7) Steady State & Homeostasis, (8) Differentiation, (9) Integration and Coordination, and (1) Equifinality.
Dependent on the environment to survive by taking in energy and other resources. First System Theory Principle.
Inputs are processed and transformed. Second System Theory Principle.
Products, services, and knowledge go out into the environment. Third System Theory Principle.
Cycles of Events
Cycles of exchanges occur to define the boundaries of the system. Fourth System Theory Principle.
Negative Entropy
Systems wear down unless they import energy to reverse this tendency. Fifth System Theory Principle.
Negative Feedback
Feedback is important to using resources efficiently. Sixth System Theory Principle.
Steady State & Homeostasis
Systems need to maintain a steady state, or balance, both among internal parts and between the internal and external environments. Seventh System Theory Principle.
Systems become more elaborate and differentiated over time through growth. Eighth System Theory Principle.
Integration and Coordination
Differentiation increases the need for integration to maintain homeostasis. Ninth System Theory Principle.
Different paths to the same outcome. Multiple routes to success. Tenth System Theory Principle.
Geert Hofstede
Concluded that culture can be mapped out to five dimensions: power distance, individualism/collectivism, femininity/masculinity, uncertainty avoidance, and long-term/short-term orientation.
Henry Mintzberg
Believes that strategies emerge, sometimes without careful planning. Both formal and informal emergent processes operate to develop strategies.
Max Weber
Proposed principles of bureaucracy that were designed to make office work more professional. Encouraged the concept of a vocation or career; there should be a hierarchy so employees can advance over time. Used functional structures, grouping people according to the basic functions of the business they perform.
Michael Porter
Identified five competitive forces: potential new entrants, threat of substitute products, bargaining power of buyers, bargaining power of suppliers, and rivalry among competitors. Felt that operational effectiveness was necessary but not sufficient for corporate success; there must also be strategy.
Abraham Maslow
Created hierarchy of needs theory, with 5 need categories: (1) physiological/survival, (2) safety, (3) belonging, (4) esteem, and (5) self-actualization. Believed these needs had to be met in that order: satisfaction-progression.
Frederick Herzberg
Two-factor theory. Satisfiers = responsibility, advancement, and personal growth. Dissatisfiers/hygiene factors = pay, working conditions, and coworker and supervisor relations. When satisfiers are met, workers are satisfied. When hygiene factors are not satisfied, workers are dissatisfied; when these factors are satisfied, workers are neutral.
Clayton Alderfer
Modified Maslow’s approach to only three needs (ERG theory): (1) existence, (2) relatedness, and (3) growth. Existence is Maslow’s physiological and safety combined. Relatedness is Maslow’s belonging category. Growth is Maslow’s esteem needs and Herzberg’s satisfiers. Felt that Maslow’s “self-actualization” was too difficult to measure and was not as relevant to the workplace. Also suggested frustration-regression principle, feeling that if a need is not met, people give up trying to meet that need.
Richard McClelland
Created acquired need theory. Felt that childhood experiences developed a need for certain types of goals. (1) Need for achievement, (2) need for affiliation, and (3) need for power.
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