Approaches to Organizational

Management
 Definition of an Organization and Management
 Definition of Organization Theory
 Evolution of Approaches to Organization Theory

 Classical Approaches
 Quantitative Perspective
 Behavioral Perspective
 Systems Approach
 Contingency Approach

 Introduction to Organizational Behavior

1
What is an Organization?
 A consciously coordinated social
unit, composed of two or more
people, that functions on a
relatively continuous basis to
achieve a common goal or set of
goals.

2
Approaches to Organizational
Management
A. Classical Approaches
1. Scientific Management

2. Bureaucracy

3. Administrative Management

B. Quantitative Management
C. Behavioral Management
D. Contemporary Approaches
1. Systems Approach

2. Contingency Approach

3
Classical Approaches
1. Production-related and economic goals
2. One best way to organize for production
through systematic, scientific inquiry
3. Production maximized through division of labor
4. Organizations act in accordance with rational
economic principles

Designed to predict and

control behavior in
organizations.
4
 Scientific Management
 Four principles Major Influence
1. Scientific approach /  Frederick Taylor
methods
(1856-1915)
2. Train and develop
worker
 Managers are
intelligent
3. Cooperate with
workers  Workers are and
4. Ensure appropriate
should be
division of labor ignorant and are
motivated solely
by wages

5
 Theory of Bureaucracy
1. Clear division of labor
(Specialization)  Max Weber (1864-1920)

2. Hierarchical arrangement
of positions (Chain of  Described an ideal or
Command) pure form of
3. Formal rules and organizational
regulations structure
4. Impersonal relationships  Managers direct

5. Employment based entirely

activities via rules
and procedures
on technical competence
 Bureaucracy allows
for “rational
authority”
6
Administrative Management
Fayol’s 14 Principles of Management
1. Division of labor 7. Renumeration
2. Authority 8. Centralization
3. Discipline 9. Scalar chain
4. Unity of command 10. Order
5. Unity of direction 11. Equity
6. Subordination of 12. Stability
individuals to the common 13. Initiative
good 14. Esprit de corps
 Henri Fayol (1841-1925)
 General and Industrial Management
 Principles and Elements of Management - how managers
should accomplish their managerial duties (Planning,
Organizing, Command, Coordination, and Control) 7
Quantitative Management
Perspective
LIMITATIONS
 Uses quantitative
methods and 1. Neglect non-quantifiable
models to assist in factors
decision making 2. Managers not trained in
(Management these techniques
Sciences and
Operations 3. Not suited for
Management) unpredictable
management decisions
 Has been useful in 4. Cannot fully explain or
the planning and predict behavior
controlling
processes 5. May require unrealistic or
unfounded assumptions
8
Behavioral Management Perspective

 Aims to understand how psychological

and social processes interact with the
work situation to influence performance
 Recognizes the importance of
behavioral processes in the workplace.
 Emphasizes individual attitudes and
behaviors and group processes

9
Behavioral Management Perspective
 The Hawthorne Studies
 Conducted by Elton Mayo
and associates at Western
Electric (1927–1935)
 Illumination study
 Group study— the effects of
a piecework incentive plan
on production workers.
 Interview program -
Confirmed the importance
of human behavior in the
workplace.

10
 Systems Theory
An organization exists in an
interdependent relationship with
its environment
Feedback
Feedback
1. Input-Throughput-Output
2. Feedback
3. Communication Mechanisms Input
Input Output
Output
4. Systems and subsystems People
People
Materials
Materials Goods
Goods
Equipment Transformation
Transformation
Equipment Services
Services
Money
Money
Management
Management

Feedback
Feedback

11
Contingency Theory
 There is no one best way to structure and
manage organizations.
 The type of structure should reflect the
environmental conditions.
 Types of structures:
 Mechanistic - rigid hierarchy, many rules,

formalized communication, centralized

authority, taller structures; appropriate for stable
environment
 Organic - collaboration, few rules, informal

communication, decentralized; required in

changing environments (unstable conditions)
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Mintzberg’s Managerial Roles

EXHIBIT 1-1a

13
Mintzberg’s Managerial Roles (cont’d)

EXHIBIT 1-1b

14
Mintzberg’s Managerial Roles (cont’d)

EXHIBIT 1-1c
15
Management Skills

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