A brief synthesis of the main aspects of some of the most relevant theories of administrative thought, from Taylor to Strategic Planning, passing through the school of human relations and other currents that constitute the theory of organization management.
TAYLOR'S THEORY
- HYPOTHESIS OR ASSUMPTIONS
- The employer maximizes profits and the worker reaches the maximum of prosperity. Low worker performance due to poor management systems that allow the simulation of work and the application of empirical elements.
- Study of work (organization and programming of work) "development of a science" and "equitable distribution of work". Technical selection and training of the worker. “Selection and scientific development of the worker.” Control (by the administrators) of the work (carried out by the worker). "Cordial cooperation between administration and workers"
- Work study: Administrators must specialize in planning work, workers in its execution. A planning office should be organized to: (a) Study the tasks; (b) Study and standardize production methods, times, movements and tools; (c) Calculate production costs; (d) carry out information classification systems. This division of labor is complemented by
functional organization: a structure made up of a body of foremen who issue orders in the area of their capacity. Eight chiefs must be appointed for the following functions:
- (a) Scheduling and work orders; (b) Production standards; (c) Times and costs; (d) Standardization of instruments and material allocation; (e) Machinery maintenance; (f) Quality control; (g) Work development; (h) Staff relations.
FAYOL'S THEORY
- HYPOTHESIS OR ASSUMPTIONS
- Maximum efficiency is achieved through the formal organization of the company (well-defined hierarchy of authority). "Linear" or direct relationship between bosses and subordinates, they must obey a single boss. The proper functioning in the organization of the company depends on "principles, laws, rules". Taking into account the changing elements, the interest of the employer prevails over the interest of the worker.
- Grouping of the set of activities carried out by the organization. "Operations carried out by companies". Definition of the functions that an administrator must carry out. "Elements of administration". Formulation of criteria that should guide administrative activity. "General administration guidelines".
- Activity grouping: Six activities; (a) Administrative (manager) = foresees, organizes, commands, coordinates, controls. (b) Technique (production) = transformation of inputs. (c) Commercial = purchases, sales, market research, swaps. (d) Financial = search and administration of capital. (e) Accounting = financial record or information, balance sheets, statistics, inventories, cost price. (f) Security = protection of people and goods. Formulation of criteria that should guide administrative activity: 14 principles, among which are:
- Hierarchical authority and responsibility: authority consists of the right to command and the power to be obeyed. Unit of command: subordinates must receive orders from a single boss..Division of work: produce more and better with the same effort. The other principles are: unity of direction, centralization, hierarchy, remuneration, order, equity, stability of personnel, initiative, union of personnel and discipline.
WEBER'S THEORY
- DEFINITION OF BUREAUCRACY: It is an “ideal type” of organization delimited by a structure of legal domination that is exercised through an administrative framework applicable to large organizations both in the state and in the private sector. Assumptions
- Political: The bureaucracy is the administrative table that corresponds to the legal domination structure. Economic: It involves the development of the monetary economy, since money transactions rationalize economic activity, allow budgeting income and expenses in a systematic way. Administrative: Facilitates carrying out the numerous and complex activities that increase qualitatively and quantitatively in organizations. The efficiency of the bureaucracy is superior to any other form of administration. Ideal type of administration: bureaucratic rationalization (social action).
- The positions constitute the main nucleus of the bureaucratic administrative cadre. There is an administrative career system. It is based on written documents and procedures. External and internal position of the bureaucrat regarding the position (it is a profession, it is of impersonal behavior).
MAY THEORY
- Physical environment factors (lighting, temperature, humidity, etc.); fatigue (poor physical body condition, caused by the accumulation of waste products); the irrationality of movements in work procedures and wages are factors that relatively affect productivity but do not constitute the entire problem. Thus, the assumption of classical management theory is rejected in terms that these factors are the main determinants in the worker's performance level. There is a correlation between the worker's motivation or satisfaction level and the productivity level. Psychosocial factors, such as recognition, awareness of belonging to a group, are more important to the level of production than physical working conditions and salary incentives.The limitations of formal authority (widely studied in classical theory) in the face of informal authority that originates in groups that arise spontaneously in organizations, determining, for example, the level of efficiency, are recognized. The influence of the informal leader is recognized or natural in social work groups. Informal communication channels stimulate the participation of workers. The company is an economic unit but also, it is a social unit, therefore, managers need technical skills, they must develop social skills, especially to learn to manage informal groups, reconciling their interests with those of the management.
LEWIN'S THEORY
- Participation of work groups and increased productivity. Greater productivity of work groups with
participatory leadership compared to groups with imposed objectives and standards. The behavior of the worker in the organization depends directly on the variables (a) Characteristics of the personality of the worker; (b) Environment or psychosocial climate of the company.
MASLOW THEORY
- Human motivation is determined by the desire to satisfy a set of needs ranked in order of relative predominance. Needs: lower order (physiological and safety); higher order (association, esteem and self-realization). This set of needs is never fully satisfied, most of the members of society are partially satisfied in the set of needs. The tendency is to satisfy in a greater proportion the lower-order needs that dominate when satisfied.
McGREGOR'S THEORY
- ASSUMPTIONS OF THE THEORY X
- The administration is responsible for the organization of the elements of a productive company: money, materials, equipment, people. Regarding people, it is a process of directing their efforts, motivating them, controlling their actions, modifying their behavior to adjust to the Organizational needs Without this active management intervention, people would be passive, even reluctant, to organizational needs. They must be rewarded, persuaded, punished, controlled, directed. The average worker tends to work as little as possible, dislikes responsibility, prefers to be directed, is selfish, reluctant to change. Therefore, the administration can assume two policies: strong hand (coercion and threat) or let do. It is best to use the carrot and stick strategy.
- People are not passive or reluctant by nature to organizational needs. They have become so as a result of experience in organizations. Motivation, the potential for development, the ability to assume responsibility, the willingness to direct behavior towards organizational goals, are all present in people. The administration does not place them there. It is the responsibility of the administration to make it possible for individuals to recognize and develop these human characteristics for themselves. The essential task of the administration is to arrange the organizational conditions and methods of financing, so that people can better achieve their own goals directing their own efforts toward organizational ends. Fundamentally,it is a process of creating opportunities, unleashing potential, removing obstacles, promoting development by providing guidance, establishing decentralization and delegation, enhancing office, self-evaluation of performance, and the participation and consultative administration as operational mechanisms.. The worker will develop their skills according to what their superior sees it. (Pygmalion effect).
HERZBERG THEORY
- He established two classes of motivation factors at work:
- Hygiene or preventive: Those that are cause of displeasure in workers when the administration omits them and that when applied do not significantly affect the motivation of employees. They are the following: policies and administration of the organization, supervision, salaries, interpersonal relations, working conditions Motivators: Those that are in direct relation between its implementation by the administration and the level of personal satisfaction, these are: achievements or self-realization, recognition, the work itself, responsibility, promotion. * The last three were considered as the most important in the lasting changes of attitude favorable to the organization, that is, towards greater stable production.
- The way to motivate the employee should be through task enrichment, assigning tasks that challenge employees to take greater responsibility.
OUCHI'S THEORY
- Long-term jobs give stability and motivation to the employee, achieving their self-realization and incorporating a great sense of belonging to the company. Humanized working conditions not only increase the productivity and profits of the organization, but also the self-esteem of the employees. People with an integrated work environment that supports them also tend to be more successful in the external social relationships they maintain. A company Z can balance social relationships with productivity because the two are closely linked, an economic organization is not a purely economic creation; It is a social invention. There is no room for self-centeredness or for overly sensitive individuals (the general interest prevails over the particular). There is a rotation between functions,but not through a preconceived plan (there are opportunities for achievement). Work together, everyone strives to achieve common goals and objectives. There is an administration by direct participation, which conveys the need for leaders to fully enter to the problems and not only to give orders to "remote control". (It is managed by direct participation not by objectives). Intimacy and trust are the cornerstones of this culture inside and outside the environment that surrounds the company.which conveys the need for the leaders to enter fully into the problems and not only to give orders to "remote control." (It is managed by direct participation not by objectives). Intimacy and trust are the cornerstones of this culture inside and outside the environment that surrounds the company.which conveys the need for the leaders to enter fully into the problems and not only to give orders to "remote control." (It is managed by direct participation not by objectives). Intimacy and trust are the cornerstones of this culture inside and outside the environment that surrounds the company.
THEORY OF STRATEGIC PLANNING
- Strategy: How a company expands in the long term and commits a substantial part of its human resources and capital. It includes the overall purpose, objectives, goals, means and policies to achieve them and the review of the strategy followed.
The company that has no strategy generally depends on a charismatic owner (who manages it with the strength of his personality), and on a medium steeped in improvisation, instability and authoritarian or personalized leadership.
The essential thing in the strategic analysis is not the long or short term of the decisions taken, but the importance of them. It works on what compromises the future and survival of an organization. This sometimes depends on immediate actions that are not strategic because they are not short-term. Strategic planning: The process of developing and maintaining an adequate strategy between the goals and capabilities of an organization and the changes in its market opportunities. Seeking, in this way, to achieve a sustainable competitive advantage in the long term. Planning benefits: Think long term, specify objectives and policies, improve interaction between executives, coordination of efforts, anticipate and respond more quickly to changes in the environment and better prepare for eventualities. Mission: Declaration of the purpose of an organization, that is, what it intends to do in the medium at a broad level.
To establish the strategy to follow, you must know, in depth, not only the organization within you (inside-out strategy), but the environment in which it operates (from outside to inside), its weaknesses and strengths, its opportunities and threats. In addition to studying the strategies of competitors in the area and the results they have obtained. Development of growth strategies:
- Market penetration: Increase sales of current products to current segments without product variation. Market development: Identify and develop new market segments for current products. Product development: New or modified products to current market segments.. Diversification: Start or buy businesses outside the current products and markets.
