Chapter Two Emerging of Management Thought
Chapter Two Emerging of Management Thought
Chapter Two Emerging of Management Thought
Understand the management school of thoughts.
What is management theory?
Theories are perspectives with which people makes sense of their world experience.
A set of principles that explains or accounts for relationship between two/more
observable facts or events.
But there is no universally accepted management theory.
The school of management thought are the theoretical framework for the study of
management.
Management theories in early period were not really theories, but some discrete practices
and experiences.
Management theories in the present centuries are not totally free from certain
problems.
For this purpose, a sound theoretical and conceptual framework is essential
for the theory to take the shape.
The chaos caused by proliferation of management theories is aptly called ‘
the management theory jungle’ and a strong need for a unified and
integrated theory of management was felt a number of theoretical approaches
with varying hypothesis, assumptions, propositions have emerged.
Management is an applied science; it lacks a coherent theoretical concepts of
its own.
Evolvement of theories in management
One of the keys to successful management is the ability to understand and apply modern
management principles and techniques effectively.
Managers must develop an in-depth knowledge of part and present models, theories and
processes in order to manage effectively and intelligently.
History of management extends to several thousand years in the past. But get prominence
in the late of 19th century as a formal discipline.
The practice of management is as old as human race but its theories and conceptual
framework are of recent origin.
Evolution and school of management thought
Neo-classical/
Pre-scientific Modern theory
management
Classical theory behavioral
theory
• Ancient • Scientific • Hawthorne • System
civilizations management experiment • Contingency
• Military • Administrative • Theory X & Y • Theory Z and
organizations • Bureaucratic model • Maslow’s TQM
• Writers i.e. C. • Quantitative
hierarchy
Babbage, J. Watt approach
• Industrial
revolution
2.1 THE ERA OF CLASSICAL MANAGEMENT
I. The Scientific Theory of Management: Frederick W. Taylor
The systematic study of relationships between people and tasks for the purpose of
It is the art of knowing what exactly you want from your men to do & then seeing
Or Taylor’s four principles of them with engineers, and gave them the
management are;
responsibility to:
1. The development of a true science.
1. Develop scientific methods for doing work.
2. The scientific selection of the
workman. 2. Establish goals for productivity.
3. The scientific education and 3. Establish systems of rewards for meeting the
development of the workman. goals.
4. Intimate and friendly cooperation
4. Train the personnel in how to use the
between the management and the men.
methods and thereby meet the goals.
Four Principles Of Scientific Management To Increase
Efficiency
1. Study the way workers perform their tasks, gather all the informal job
knowledge that workers posses, and experiment with ways of improving how
tasks are performed.
2. Codify the new methods of performing tasks into written rules and standard
operating procedures.
3. Carefully select workers who possess skills and abilities that match the needs of
the task, and train them to perform the task according to the established rules and
procedures.
4. Establish a fair or acceptable level of performance for a task, and then develop a
pay system that provides a reward for performance above the acceptable level.
Problems With Scientific
Criticisms Management
Managers frequently implemented only the
o Employer centered
increased output side of Taylor’s plan.
o Alienation of workers to society
• Workers did not share in the increased output.
o Reduced opportunity to workers
Specialized jobs became very boring, dull.
o Denied “human community” in
• Workers ended up distrusting the Scientific
workplace/ dehumanizes the worker
Management method.
o Neglected the environment (a
Workers could purposely “under-perform.”
closed system view)
Management responded with increased use of
speed.
HENRI FAYOL’S 14 PRINCIPLES OF MANAGEMENT
2. Authority
1. Division Of Work
The right to issue commands, along with
Specialization allows the individual to
which must go the balanced
build up experience, and to continuously
responsibility for its function.
improve his skills. Thereby he can be more
productive. 4. Unity Of Command
1. Planning. According to Fayol's theory, management must plan and schedule every part of industrial processes.
2. Organizing. Henri Fayol argued that in addition to planning a manufacturing process, management must also
make certain all of the necessary resources (raw materials, personnel, etc.) came together at the appropriate time
of production.
3. Commanding. Henri Fayol's management theory states that management must encourage and direct
personnel activity.
4. Coordinating. According to the management theory of Henri Fayol, management must make certain that
personnel works together in a cooperative fashion.
5. Controlling. The final management activity, according to Henri Fayol, is for the manager to evaluate and
ensure that personnel follow management's commands.
iii. Max Weber: The Bureaucratic Theory: 1864-1920
An organization is viewed as a type of social relationship that has regulations enforced,
o Has a few people at the top, making decisions and a chain of middle managers and lower-level
people below them carrying out specific functions.
Max Weber analyzed bureaucracy as the most logical and rational structure for large organizations.
Orders come from top down in a manner mimicking the military creating consistency and precision.
Rules rather than people form the basis of an organization.
Efficiency in bureaucracies comes from:
1. clearly defined and specialized functions;
2. use of legal authority;
3. hierarchical form;
4. written rules and procedures
5. technically trained bureaucrats
6. appointment to positions based on technical expertise
7. promotions based on competence
8. clearly defined career paths.
Bureaucratic Principles
Written rules
Fair evaluation
and reward
Principles Of The Theory Of Bureaucracy: Developed By Max Weber (1864-
1920), A German Professor Of Sociology.
Principle 2:
Principle 1:
In a bureaucracy, people should occupy positions
In a bureaucracy, a manager’s formal authority because of their performance, not because of their
derives from the position he or she holds in the social standing.
organization. Some organizations and industries are still affected
by social networks in which personal contacts and
Authority - the power to hold people accountable relations, not job-related skills, influence hiring and
for their actions and to make decisions in reference promotional decisions. The old ways, of not what you
to the use of organizational resources. know, but who you know, are still around in today’s
society, but it can only get you so far. In today’s
In today’s business models, this type of theory is business world, what you know and educational
not very common. Nowadays, we see more of an knowledge, play a very important part in moving up the
informal authority approach in which there is corporate latter and being able to maintain a managerial
position requires the utilization of staying current on up
personal expertise, technical knowledge, moral
to date techniques and information.
worth, and the ability to lead and to generate
commitment from subordinates, without the use of
this absolute power from one individual.
Principle 3: Principle 4:
The extent of each position’s formal authority and Authority can be exercised effectively in an
task responsibilities, and its relationship to other organization when positions are arranged hierarchically,
positions in the organization should be clearly so employees know whom to report to and who reports
to them.
specified.
Managers must create an organizational hierarchy of
When the task and authority associated with various
authority that makes it clear who reports to whom and to
positions in the organization are clearly specified, whom managers and workers should go if conflicts or
managers and workers know what is expected of them problems arise.
and what to expect from each other.
Today’s business models utilize the initiative factor in
Most organizations should and are clearly defining task which employees are given the ability to act on their
and position responsibilities. Job descriptions should own, without direction from a superior. This
include all facets of an employee held position. empowerment of employees relieves the stress of
Clarification of one’s job expectations is essential for constant supervision and allows supervisors and
all five business functions in order to manage and managers to concentrate more on other administrative
duties. The balance between a vertical and horizontal
maintain a high level, and measurable level of success
organizational structure is more widely used in today’s
for all organizations.
business models.
Principle 5:
Managers must create a well defined system of rules, standard operating procedures,
and norms so that they can effectively control behavior within an organization.
Standard Operating Procedures (SOPs) are specific sets of written instructions about
how to perform a certain aspect of a task.
Most companies have SOPs and require employees to learn and follow them. We have
seen how in addition to following rules and regulations, many organizations have
allowed for creativity and innovation to supersede the common way of conducting
business where it was once said, “rules are rules and they could never be broken”.
Guidelines are needed and common sense is always important, but have an open line
of communication to new ideas and thoughts is essential in today’s business society.
Characteristics Of The Bureaucratic Model
Fixed division of labor and Hierarchy of offices
specialization
Employees are organized and ranked
All responsibilities in an organization are according to their degree of authority
specialized, with each area having a within the organization.
specific set of official duties and rights.
Top positions administer and control the
Employees in the area have the expertise lower positions.
to carry out the task
However, lower offices should maintain a
In hospital, specific parts of patient care right to appeal decisions made higher in
(the job) are assigned to different the hierarchy.
individuals or groups
Each hierarchy has its own sphere of
Eg nurses, dieticians, laboratory
competence, allowing for a clear chain of
workers, and doctors all provide a part command, control and order organization.
of care which the patient needs Eg the hospital director/superintendant and the
chief matron/nurse manager are the top most
hospital haerarchies, while patient attendants
and cleaners are at the bottom.
Characteristics Of The Bureaucratic Model
Rational-legal authority Separation of personal from official property and
rights
Authority is given to officials based on their
skills and formal positions given to them and not Officials do not own the resources necessary for the
on individual aspects of authority like wealth, performance of their assigned functions but are
position, ownership, heritage etc. Management is accountable for their use. Official and private business
and income are strictly separated. Offices or resources
separated from the ownership of the organization-
cannot be inherited, sold, etc.
career official work for a salary and do not own
what they administer. Selection based on qualifications
Creation of rules to govern performance Officials are recruited based on professional
qualifications, not on their relation with the leader or
Rules and procedures guide all daily social rank , and are appointed, not elected, to the office.
organizational activities. They should be easily People are compensated with fixed salaries which
understood and leaders should not change them should match with their qualifications and not with
anyhow. Administrative acts and decisions are benefits such as rights to land, power.
recorded in writing. Clear career paths
Eg. procedure and policy manuals prescribe
Employment in the organizations should be seen as a
types of behaviour for performing a procedure
career for officials. Their work is rewarded by prospects
to policies to be followed. These will also act
of career advancement and promotion is granted
as guidelines when taking disciplinary actions according to seniority and/or achievement. After an
against an employee. introduction period, the employee is given tenure, which
protects the employee from unwarranted dismissal.
Characteristics Of The Bureaucratic Model…..
Bureaucracy
Hierarchy
Division of Labor
Consistency
Qualification
Professional–Private Separation
Devotion to Purpose
Advancement / Seniority
Authority and its flow
HIERARCHY subordination
Special Legislative
Office Staffing Maintenance
Projects Relations
Rules regulate all matters
CONSISTENCY “abstractly.”
i.e. no one is special
Duties
Not Special Not Special
The “Governed”
PhD
requisite.
How to manage
Never uses Glad s/he doesn’t Treats company car Wouldn’t even THINK
photocopier for have to live in this much better than of stealing rubber
own tax forms cubicle personal POS cleaning gloves
DEVOTION TO
PURPOSE/DUTY Devotion is to your work and
Started here 25
years ago
Advantages of bureaucratic approach: Disadvantages of bureaucratic approach:
It is difficult to determine who is responsible for having
Protects employees from unfair rulings made the decision, creating a feeling of powerlessness
amongst employees. There is diffusion of responsibility
from leaders which gives a greater sense and subsequent refusal to make a decision. Eg To get
something done you need 6 different approvals on 6
of security to the employees. different forms and each refusing to give approval until
the other 5 have given theirs
Creates an opportunity for employees to
Organizational structure is too inflexible to effect
become specialists within one specific necessary changes efficiently. It is too difficult to
determine specific individual contribution to successful
area, increasing the effectiveness and patient care outcome. The top bottom hierarchy does
not utilize specialized lower level to make decisions in
efficiency in each area of the their field of specialty
organization. Overspecialization, makes individuals not aware of
larger consequences of their actions. Not allowing
Creativity and stability are promoted people to use common sense, as everything must be as
is written by the law. There is rigidity making decision-
within their respective duties and sub- making slow or even impossible when facing some
tasks unusual case, and similarly delaying change and
evolution
2.2 Elten Mayo: The Human Relations Approach
Although many in industry were quick to embrace the classic theoretical approach, its implementation
commonly left employees unfulfilled.
The Hawthorne Studies only served to raise further questions concerning the employee’s role in the
organization.
These events then set the stage for the emergence of another organizational communication approach: the
Human Relations (HR) approach.
Classical Approach Doesn’t:
Account for individual needs of employees
Non-financial reward
Social interaction
• The Behaviorists Took Management Another Step Forward
• They focused on employees
• As individuals
• As parts of work groups
• As persons with needs to be met by the organization
Making A Case For Human Needs: The Hawthorne Studies
The Hawthorne Studies entail a research program conducted by Elton Mayo and his
colleagues at the Western Electric Plant in Cicero, Illinois from 1927 to 1932.
The plant’s manager asked Mayo and his team of researchers to help increase employee
morale and overall productivity at the Hawthorne Plant.
Their findings asserted that employee morale and productivity improved when workers were
allowed to interact and an overseer was present.
Influenced transitions from classical approach to human relations approach
Hawthorne Studies
Mayo interested in how changes in work environment would impact productivity
Hawthorne Effect
The more attention given to someone, the more likely their behavior will change
Social factors influence productivity
37
The role that Mayo had in the development of management is usually associated with his
discovery of;
• Social man and the need for this in the work place.
• Mayo found that workers acted according to sentiments and emotion.
• He felt that if you treated the worker with respect and tried to meet their needs than they
would be a better worker for you and both management and the employee would benefit.
• The Hawthorne Studies (or Hawthorne Experiments) were conducted from 1927 to 1932 at
the Western Electric Hawthorne Works in Cicero, Illinois (a suburb of Chicago)
o The experiments
• There were four main phases to the Hawthorne experiments:
• The illumination experiments
• The relay assembly test room
• The interviewing program
• The bank wiring observation room
1.THE ILLUMINATION EXPERIMENTS:
Variations In Light Levels
The workers were divided into two
groups
A. Conditions of work
B. Hours of work
C. Rest pauses
D. Provision of refreshments
20,000 interviews
30 min 90 min
Factory Cabling Department
4.The bank wiring observation room: Determination and analysis of
social organisation at work
• to find out the impact of small groups on the individuals.
14 men
Computer simulations: What will the company’s payroll look like in 10 years if it gives
maximize profit but not scare away potential customers? (Optimization means to make a
system or design as effective as possible.)
Critical-path analysis: How long will it really take to get the new product to market, with
separate teams working on different parts of the project all at the same time?
Techniques such as these are now standard practice in management, especially in making
2. Critically examine and explain how political; social; economic; and technological forces contributed to
evolved lessons in management thoughts.
3. Weber’s ideal bureaucracy suggested strict adherence to rules and regulations, this lead to redtapism in the
organization. Discuss how strict adherence to rules and regulations causes poor work environment.
4. Classical theory viewed organization as closed system in which environmental dynamics and their effect on
management have been discounted. Provide your professional critics on this view and justify why it is relevant
or irrelevant in the contemporary world.
5. Why is it important for every manager to understand the many different management theories that have been
develop? Describe various School of Thoughts prevalent from time to time. Which school of management
thoughts makes the most sense to you? Why?
END OF CHAPTER
TWO