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Mecor M.

BSM - 4

1. Theories of Management
Classical Organization Theory
Scientific management theory, also called classical management theory, entered the
mainstream in the early 1900s, with an emphasis on increasing worker productivity.
Developed by Frederick Taylor, the classical theory of management advocated a
scientific study of tasks and the workers responsible for them. Although its goal was
providing workers the tools necessary for maximizing their efficiency and output, it is
also criticized for creating an "assembly-line" atmosphere, where employees do only
menial jobs. For this reason, it has fallen out of favor among many companies and
schools of thought, but could still be a valuable tool for your organization, provided you
carefully examine all of its principles. For example, the scientific theory of management
is considered better suited to businesses based on repetitive tasks, such as a factory.
Classical and scientific management theory is based on four main principles:
1. Company leadership should develop a standard method for doing each job using
scientific management.
2. Workers should be selected for a job based on their skills and abilities.
3. Work should be planned to eliminate interruptions.
4. Wage incentives should be offered to encourage increased output.

Systems theory treats an organization as a system. A system can be either closed or

open, but most approaches treat an organization as an open system. An open system
interacts with its environment by way of inputs, throughputs, and outputs. In the 1960,
an approach to management appeared which try to unify the prior schools of thought.
This approach is commonly known as Systems Approach. Its early contributors include
Ludwing Von Bertalanfty, Lawrence J. Henderson, W.G. Scott, Deniel Katz, Robert L.
Kahn, W. Buckley and J.D. Thompson.
Systems approach is based on the generalization that everything is inter-related and
interdependent. A system is composed of related and dependent element which when in
interaction, forms a unitary whole. A system is simply an assemblage or combination of
things or parts forming a complex whole.

Features of Systems Approach:

(i) A system consists of interacting elements. It is set of inter-related and interdependent parts arranged in a manner that produces a unified whole.
(ii) The various sub-systems should be studied in their inter-relationships rather, than in
isolation from each other.
(iii) An organisational system has a boundary that determines which parts are internal
and which are external.
(iv) A system does not exist in a vacuum. It receives information, material and energy
from other systems as inputs. These inputs undergo a transformation process within a
system and leave the system as output to other systems.

(v) An organization is a dynamic system as it is responsive to its environment. It is

vulnerable to change in its environment.
The systems approach is very important in general management analysis.
Four especially ideas that have had substantial impact on management thinking are the
concepts of open versus closed systems, subsystems, subsystems and
interdependencies, synergy and entropy.
Open versus closed systems. According to Ludwig von Bertlanffy, there are two basic
types of systems: closed systems and open systems. Closed system are not influenced
by and do not interact with their environments. Open systems interact with their
environment. All organizations are open systems, although the degree of interaction
may vary.
Entropy. Entropy is a universal property of systems and refers to their tendency to run
down and die. A primary objective of management, form systems perspective, is to
avoid entropy.
Synergy. Synergy means that the whole is greater the sum of its parts. Synergy is an
important concept for managers in that it reinforces the need to work together in a
cooperative fashion.
Subsystems. A subsystem is a system within a system. From another perspective,
subsystems are parts of a system that depend on one another.
Contingency Theory
A contingency approach to management is based on the theory that management
effectiveness is contingent, or dependent, upon the interplay between the application of
management behaviors and specific situations. In other words, the way you manage
should change depending on the circumstances. One size does not fit all.

The contingency approach to management finds its foundation in the contingency

theory of leadership effectiveness developed by management psychologist Fred Fielder.
The theory states that leadership effectiveness, as it relates to group effectiveness, is a
component of two factors: task motivation, or relation motivation, and circumstances.
You measure task motivation, or relation motivation, by the least preferred co-worker
(LPC) scale. The LPC scale asks the manager to think of the person they least liking
working with and then rate that person on a set of questions, each involving an 8-point
scale. For example, a score of one would be uncooperative, and a score of eight would
be cooperative. Fielder believed that people with a higher LPC score try to maintain
harmony in their work relationships, while people with a lower LPC score are motivated
to focus on task accomplishment.

The theory states that task or relations motivations is contingent upon whether the
manager is able to both control and effect the group's situational favorability, or
outcome. According to the theory, you can assess situational favorability by three

Leader-member relations - This factor addresses the manager's perception of his

cooperative relations with his subordinates. In other words, is the cooperation between
you and your employees good or bad?
Task structure - This factor relates to whether the structure of the work task is highly
structured, subject to standard procedures and subject to adequate measures of
assessment. Certain tasks are easy to structure, standardize and assess, such as the
operation of an assembly line.

Position power This factor asks if the managers level of authority is based on
punishing or rewarding behavior. For example, does the manager derive is authority
from providing bonuses for meeting sales goals or terminating employees for failure
meet the goals?

Types of Leadership

A laissez-faire leader lacks direct supervision of employees and fails to provide regular
feedback to those under his supervision. Highly experienced and trained employees
requiring little supervision fall under the laissez-faire leadership style. However, not all
employees possess those characteristics. This leadership style hinders the production
of employees needing supervision. The laissez-faire style produces no leadership or
supervision efforts from managers, which can lead to poor production, lack of control
and increasing costs.

The autocratic leadership style allows managers to make decisions alone without the
input of others. Managers possess total authority and impose their will on employees.
No one challenges the decisions of autocratic leaders.

Often called the democratic leadership style, participative leadership values the input of
team members and peers, but the responsibility of making the final decision rests with
the participative leader. Participative leadership boosts employee morale because
employees make contributions to the decision-making process. It causes them to feel as
if their opinions matter. When a company needs to make changes within the
organization, the participative leadership style helps employees accept changes easily
because they play a role in the process. This style meets challenges when companies
need to make a decision in a short period.
Managers using the transactional leadership style receive certain tasks to perform and
provide rewards or punishments to team members based on performance results.
Managers and team members set predetermined goals together, and employees agree
to follow the direction and leadership of the manager to accomplish those goals. The
manager possesses power to review results and train or correct employees when team
members fail to meet goals. Employees receive rewards, such as bonuses, when they
accomplish goals.

The transformational leadership style depends on high levels of communication from
management to meet goals. Leaders motivate employees and enhance productivity and
efficiency through communication and high visibility. This style of leadership requires the
involvement of management to meet goals. Leaders focus on the big picture within an
organization and delegate smaller tasks to the team to accomplish goals.

In the organization which I belong a non-government holistic child development

organization, I can conclude that in our workplace we have the Participative type of
leadership. We have one head, we called it our Project Director. Our project director is
under also the project management team/committee of our church that oversee the
program and operation. It is participative because from our level, whatever inputs we
had or suggestions that can improved our services we can present it to our Head and
after discussion she can present our input to the committee which is the one who
decide. There are cases also that our committee consult us before they make any
decision to make sure that there decision will be for the common good of the children.

Assignment to Maam Bag-ao

1. Theories of Management (3)

2. Types of Leadership
3. Identify the type of leadership that your workplace has