Peter drucker management theory ppt

Management & Leadership Skills
MGMT 8250
Week One
https://www.youtube.com/watch?v=HnJ1bqXUnIM

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Today’s Agenda

College staff presentation (first half of the class)
Lecture (second half of the class)
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What is Leadership?

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What is Leadership?

Leadership has nothing to do with seniority or one’s position in the hierarchy of a company
Leadership has nothing to do with titles
Leadership has nothing to do with personal attributes
Leadership isn’t management
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What is Leadership?

Peter Drucker: "The only definition of a leader is someone who has followers“
Warren Bennis: "Leadership is the capacity to translate vision into reality”
Jack Welch: “A leader is someone who has Energy; someone who can articulate a vision and inspire others to perform (Energizer); someone who can make difficult decisions (Edge); and someone who can deliver (Execute)”
Bill Gates: "As we look ahead into the next century, leaders will be those who empower others“
John Maxwell: "Leadership is influence - nothing more, nothing less"
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What is Leadership?

Leadership is a process of social influence, which maximizes the efforts of others, towards the achievement of a goal

Notice key elements of this definition:

Leadership stems from social influence, not authority or power
Leadership requires others, and that implies they don’t need to be “direct reports”
No mention of personality traits, attributes, or even a title; there are many styles, many paths, to effective leadership
It includes a goal, not influence with no intended outcome
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What is Management?

The organization and coordination of the activities of a business in order to achieve defined objectives

Management is often included as a factor of production along with machines, materials, and money. According to the management guru Peter Drucker (1909-2005), the basic task of management includes both marketing and innovation.

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Leadership

Management

A process of social influence, which maximizes the efforts of others, towards the achievement of a goal

The organization and coordination of the activities of a business in order to achieve defined objectives

Leadership & Management
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History of Leadership Theories

Great Man and Trait Theory
Kurt Lewin's Leadership Styles
Charismatic Authority - Max Weber
Contingency Theory of Leadership - Fred Fielder
Participative Leadership Theory
Leader-Member Exchange Theory
Situational Leadership – Blanchard and Hersey
Path-Goal Theory of Leadership - Martin G. Evans (1970) and Robert J. House (1971)
Servant Leadership - Robert Greenleaf (1970 and 1977); Larry Spears (1990s)
Transformational Leadership
Authentic Leadership
Implicit Leadership Theories
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History of Management

Classical Approach

Scientific Management
Administrative Approach
Bureaucratic Approach
Behaviourial/Human Resources Approach

Modern Management Approach

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Frederick W. Taylor
1856 - 1915

Known as the "father of scientific management”
Contributions to modern management was giving employees rest breaks throughout the day
Four Principles of Scientific Management
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Taylor’s Four Principles of Scientific Management

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Breaking each task into its separate motions and then eliminating those that are necessary or repetitive.
Time Study

Motion Study

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Frank & Lillian Gilbreth
1886-1924

Timing how long it takes good workers to complete each part of their jobs.
2.2

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Gantt Chart for Starting Construction on a New Headquarters

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2.3

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The History of
Bureaucratic Management

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Bureaucracy

The exercise of control on the basis of knowledge, expertise, or experience.

Max Weber, 1864-1920

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When we hear the term bureaucracy, we think of inefficiency and “red tape”, incompetence and ineffectiveness. However, when German sociologist Max Weber proposed the idea of bureaucratic organizations, monarchies were associated with these problems. Bureaucracy literally means to rule from a desk or office. In a bureaucracy, people would lead by virtue of rational-legal authority—from knowledge, expertise, and experience.

Bureaucratic Approach

Max Weber, 1864-1920

Chester I. Barnard

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The Aim of Bureaucracy

3.1

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The aim of bureaucracy is to achieve an organization’s goals in the most efficient way possible.

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Cooperation and Acceptance
of Authority: Chester Barnard

Managers can gain cooperation by:

Securing essential services from individuals
Unifying people by clearly formulating an organization’s purpose and objectives
Providing a system of effective communication
4.3

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Chester Barnard is best known for his ideas about cooperation, the executive functions that promote it, and the acceptance of authority.

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4.3

Cooperation and Acceptance
of Authority: Chester Barnard

People will be indifferent to managerial directives

if they…

are understood
are consistent with the purpose of the organization
are compatible with the people’s personal interests
can actually be carried out by those people
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Administrative Approach (Functional)

Henri Fayol

1841 - 1925

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Administrative Management:
Henri Fayol

3.2

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Henri Fayol is best known for developing five functions of managers and 14 principles of management, as well as his belief that management could and should be taught to others.

The five functions of successful management are: planning, organizing, coordinating, commanding, and controlling.

His principles of effective management are shown on this slide.

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The History of
Human Relations Management

Efficiency alone is not enough to produce
organizational success.
Success also depends on treating workers well.
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Scientific management focuses on improving the efficiency of manufacturing facilities and their workers. Bureaucratic management focuses on using knowledge, fairness, and logical rules to increate the organization’s efficiency. Administrative management focuses on how and what managers should do in their jobs.

In contrast, the human relations approach to management focuses on the psychological and social aspects of work. People are valuable organizational resources whose needs are important.

Modern Management
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Mary Parker Follett (1868-1933)

- ideas of negotiation, conflict resolution, and power sharing
Elton Mayo (1880 – 1949) – Hawthorne Studies

Abraham Maslow (1908 – 1970) – Hierarchy of Needs Theory

Douglas McGregor (1906 – 1964) – Theory X and Theory Y

Frederick Hertzberg (1923 – 2000) – Two Factor Theory

Mary Parker Follett
1868-1933

Known as the “mother of scientific management.“

Contributions to modern management include the ideas of negotiation, conflict resolution, and power sharing.

4.1

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4.1

Constructive Conflict and Coordination: Mary Parker Follett

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Follett is known for developing ideas regarding constructive conflict and coordination. She said that conflict is the appearance of difference, difference of opinions, of interests. Follett believed that managers could deal with conflict in three ways, as shown on this slide.

Domination is a victory of one side over the other.

Compromise involves both parties giving up some of what they want in order to reach agreement.

Integrative conflict resolution involves both parties indicating their preferences and then working together to find an alternative that meets the needs of both.

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4.1

Constructive Conflict and Coordination: Mary Parker Follett

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4.2

Hawthorne Studies:
Elton Mayo

Workers’ feelings and attitudes affected their work
Financial incentives weren’t the most important motivator for workers
Group norms and behavior play a critical role in behavior at work
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Elton May’s ideas became popular during the twentieth century when labor unrest and protests were widespread in the U.S., Europe and Asia. Mayo's work proved relevant as managers looked for ways to increase productivity and to improve worker satisfaction and working conditions.

Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.

Copyright © 2010 Pearson Education Canada

Maslow’s Hierarchy of Needs

Physiological
Includes hunger, thirst, shelter, sex, and other bodily needs
Safety
Includes security and protection from physical & emotional harm
Social
Includes affection, belongingness, acceptance, and friendship
Esteem
Includes internal esteem factors: self-respect, autonomy, and achievement
Includes external esteem factors: status, recognition, and attention
Self-actualization
The drive to become what one is capable of becoming
Includes growth, achieving one’s potential, and self-fulfillment
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed. Copyright © 2010 Pearson Education Canada

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Material pertinent to this discussion is found under “Needs Theories of Motivation.”

Abraham Maslow's theory is perhaps the best known of all. He hypothesized that within every human being there exists a hierarchy of five needs: physiological, safety, social, esteem, and self-actualization.

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Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.

Copyright © 2010 Pearson Education Canada

Maslow’s Hierarchy of Needs

Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed. Copyright © 2010 Pearson Education Canada

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Material pertinent to this discussion is found under “Needs Theories of Motivation.”

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Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.

Copyright © 2010 Pearson Education Canada

Herzberg’s Motivation-Hygiene Theory

Motivators
Sources of satisfaction
Intrinsic factors (content of work)
Achievement
Recognition
Challenging, varied, or interesting work
Responsibility
Advancement
Hygiene factors
Sources of dissatisfaction
Extrinsic factors (context of work)
Company policy and administration
Unhappy relationship with employee’s supervisor
Poor interpersonal relations with one’s peers
Poor working conditions
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed. Copyright © 2010 Pearson Education Canada

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Material pertinent to this discussion is found under “Needs Theories of Motivation.”

Motivation-Hygiene Theory was proposed by psychologist Frederick Herzberg after investigating the question, “What do people want from their jobs?” Factors affecting job attitudes were tabulated and classified. Herzberg concluded that the replies people gave when they felt good about their jobs were significantly different from the replies given when they felt bad.

Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.

Copyright © 2010 Pearson Education Canada

Criticisms of Motivation-Hygiene Theory

Procedure Herzberg used is limited by its methodology.
Reliability of Herzberg’s methodology is questioned.
Herzberg did not really produce a theory of motivation.
No overall measure of satisfaction was used.
The theory is inconsistent with previous research.
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed. Copyright © 2010 Pearson Education Canada

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Material pertinent to this discussion is found under “Needs Theories of Motivation.”

McGregor’s Theory X & Y

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When we hear the term bureaucracy, we think of inefficiency and “red tape”, incompetence and ineffectiveness. However, when German sociologist Max Weber proposed the idea of bureaucratic organizations, monarchies were associated with these problems. Bureaucracy literally means to rule from a desk or office. In a bureaucracy, people would lead by virtue of rational-legal authority—from knowledge, expertise, and experience.

*

The aim of bureaucracy is to achieve an organization’s goals in the most efficient way possible.

*

Chester Barnard is best known for his ideas about cooperation, the executive functions that promote it, and the acceptance of authority.

*

*

Henri Fayol is best known for developing five functions of managers and 14 principles of management, as well as his belief that management could and should be taught to others.

The five functions of successful management are: planning, organizing, coordinating, commanding, and controlling.

His principles of effective management are shown on this slide.

*

Scientific management focuses on improving the efficiency of manufacturing facilities and their workers. Bureaucratic management focuses on using knowledge, fairness, and logical rules to increate the organization’s efficiency. Administrative management focuses on how and what managers should do in their jobs.

In contrast, the human relations approach to management focuses on the psychological and social aspects of work. People are valuable organizational resources whose needs are important.

*

*

Follett is known for developing ideas regarding constructive conflict and coordination. She said that conflict is the appearance of difference, difference of opinions, of interests. Follett believed that managers could deal with conflict in three ways, as shown on this slide.

Domination is a victory of one side over the other.

Compromise involves both parties giving up some of what they want in order to reach agreement.

Integrative conflict resolution involves both parties indicating their preferences and then working together to find an alternative that meets the needs of both.

*

*

Elton May’s ideas became popular during the twentieth century when labor unrest and protests were widespread in the U.S., Europe and Asia. Mayo's work proved relevant as managers looked for ways to increase productivity and to improve worker satisfaction and working conditions.

*

Material pertinent to this discussion is found under “Needs Theories of Motivation.”

Abraham Maslow's theory is perhaps the best known of all. He hypothesized that within every human being there exists a hierarchy of five needs: physiological, safety, social, esteem, and self-actualization.

*

Material pertinent to this discussion is found under “Needs Theories of Motivation.”

*

Material pertinent to this discussion is found under “Needs Theories of Motivation.”

Motivation-Hygiene Theory was proposed by psychologist Frederick Herzberg after investigating the question, “What do people want from their jobs?” Factors affecting job attitudes were tabulated and classified. Herzberg concluded that the replies people gave when they felt good about their jobs were significantly different from the replies given when they felt bad.

*

Material pertinent to this discussion is found under “Needs Theories of Motivation.”