Taylor’s theory of scientific management aimed at improving economic efficiency and labor productivity. Taylor had a simple view that money motivated people at work. He felt that workers should get a fair day's pay for a fair day's work, and that pay should be linked to the amount produced. He introduced the differential piece rate system, of paying wages to the workers.
The industrial revolution provided the impetus for developing various new approaches to increase the productivity and efficiency of the workers. Taylor during 1856 and 1915 propounded that there is a need for developing a scientific way of performing each job and workers should be trained to perform that particular job in a scientific way. Harmonious relations should be developed between management and workers to ensure that the job is performed in the desired way. This led to the management theory known as principles of scientific management.
This theory is a Classical management theory that is based on the belief that workers only have physical and economic needs and prescribes specialization of labor. Classical theories recommend centralized leadership and decision-making and focus on profit maximization. Three streams of classical management theory are - Bureaucracy (Weber), Administrative Theory (Fayol), and Scientific Management (Taylor).
Four Principles of Scientific Management are:
Taylor's scientific approach resulted in a piece-rate incentive system, and the time-and-motion study.
Taylor felt that the wage system was one of the major reasons for soldiering. To resolve this problem, he advocated the use of a piece-rate incentive system. The aim of this system was to reward the workers who produced the maximum out-put. The system proposed:
Taylor also tried to determine the best way to perform each and every job. To achieve this objective, he introduced a method called time-and-Motion study. In this method, a large production job was broken down into various small tasks or motions and unnecessary motions were removed to find out the best way of doing a job. A motion study involves finding out the best sequence and the minimum number of motions needed to complete a task.
After Taylor, Frank and Lillian Gilbreth made numerous contributions to the concepts of scientific management. Frank and Lillian were mainly involved in exploring new ways of eliminating unnecessary motions and reducing worker fatigue.
Although Scientific Management Theory has been instrumental in providing various valuable insights into the development of management thought. In spite of the numerous contributions made by scientific theory, given below are the few limitations:
Managers have to perform many roles in an organization, and how they handle various situations will depend on their style of management. Management styles are the characteristic ways, of making decisions relating to subordinates. These are the strategies, efforts, or direction used by the manager, to create an efficient workplace, to achieve organizational goals. A management style is the method of leadership used by a manager.
McClelland's Theory of Needs is a human motivation theory which states that an individual's specific needs are acquired over time through our culture and life experiences. As per the three needs theory, these acquired needs significantly influence the behavior of an individual. The three main driving motivators are the needs for achievement, affiliation, and power.
Management theories are the recommended management strategies that enable us to better understand and approach management. Many management frameworks and guidelines were developed during the last four decades.
Leadership has been defined in different ways by different sets of scholars. In very simple terms leadership can be defined as the skill of a person to influence an individual or a group for achievement of a goal in a given situation. One can use different dimensions and perspectives to define leadership. Through the evolution of leadership thought, leadership has been defined in various ways discussed here.
Maslow's hierarchy of needs is a motivational theory that explains that people are motivated by five basic categories of human needs. These needs are physiological, safety, love and belonging, esteem, and self-actualization. There is a little scientific basis for this concept of a hierarchy of needs.
Behavioral Approach to Management
The behavioral management theory had a profound influence on management by focusing on understanding the human dimensions of work. It is also called human relations movement as behavioral theorists focused on managing productivity by understanding factors of worker motivation like their needs and expectations, personality, attitudes, values, group behavior, conflict, and group dynamics. It advocated the use of psychological techniques to motivate employees.
In this study of power, Raven identified five bases of power as coercive, reward, legitimate, referent, and expert. The 5 Types of Power can help you decide when it is appropriate to use a particular type of power in important situations. Leadership involves authority and it is very important for leaders to understand what type of power they're using.
Quantitative Theory of Management
The quantitative management approach is 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.
In today's innovation-driven economy, understanding how to generate great ideas has become an urgent managerial priority. Managers need to encourage and champion ideas and need to help their organizations incorporate diverse perspectives, which spur creative insights and facilitate creative collaboration by harnessing new technologies. Innovation is the embodiment, combination, and/or synthesis of knowledge in original, relevant, valued new products, processes, or services.
Have you ever resonated that there seem to be as many different ways to lead people as there have been great leaders? When we recall the success of Mahatma Gandhi, Nelson Mandela, Abraham Lincoln, Napoleon Bonaparte to Steve Jobs and Jack Welch, we also notice that they all used different approaches that were suitable to their specific situations and circumstances. Over the last century, researchers and psychologists have developed simple ways to describe the “Styles of leadership” and in this section, we will explore these commonly known leadership styles.
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