Key Management Theories and Concepts Explained
Key Management Theories and Concepts
Here’s a breakdown of essential management theories and concepts:
Equity Theory
An assumption that how much people are willing to contribute to an organization depends on their assessment of the fairness, or equity, of the rewards they will receive in exchange.
Expectancy Theory
The assumption that motivation depends not only on how much a person wants something but also on how likely they are to get it.
Flextime
A program that allows employees to choose their starting and ending times, provided that they are at work during a specified core period.
Human Relations
The study of the behavior of individuals and groups in organizational settings.
Job Enlargement
The addition of more tasks to a job instead of treating each task as separate.
Job Enrichment
The incorporation of motivational factors such as opportunity for achievement, recognition, responsibility, and advancement, into a job.
Job Rotation
Movement of employees from one job to another in an effort to relieve the boredom often associated with job specialization.
Job Sharing
Performance of one full-time job by two people on part-time hours.
Motivational Factors
Aspects of Herzberg’s theory of motivation that focus on the content of the work itself; these aspects include achievement, recognition, involvement, responsibility, and advancement.
Theory X
McGregor’s traditional view of management whereby it is assumed that workers generally dislike work and must be forced to do their jobs.
Theory Y
McGregor’s humanistic view of management whereby it is assumed that workers like to work and that under proper conditions employees will seek out responsibility in an attempt to satisfy their social, esteem, and self-actualization needs.
Theory Z
A management philosophy that stresses employee participation in all aspects of company decision making.
Computer-Assisted Design (CAD)
The design of components, products, and processes on computers instead of on paper.
Computer-Assisted Manufacturing (CAM)
Manufacturing that employs specialized computer systems to actually guide and control the transformation processes.
Computer-Integrated Manufacturing (CIM)
A complete system that designs products, manages machines and materials, and controls the operations function.
Customization
Making products to meet a particular customer’s needs or wants.
Fixed-Position Layout
A layout that brings all resources required to create a product to a central location.
Operations Management (OM)
The development and administration of the activities involved in transforming resources into goods and services.
Product Layout
A layout requiring that production be broken down into relatively simple tasks assigned to workers, who are usually positioned along an assembly line.
Accountability
The principle that employees who accept an assignment and the authority to carry it out are answerable to a superior for the outcome.
Span of Management
The number of subordinates who report to a particular manager.
Just-in-Time (JIT) Inventory Management
A technique using smaller quantities of materials that arrive “just in time” for use in the transformation process and therefore require less storage space and other inventory management expense.
High Morale Leads To:
- High levels of productivity
- High returns to stakeholders
- Employee loyalty