business environment and management for professionals

BUSINESS ENVIRONMENT AND MANAGEMENT FOR PROFESSIONALS

Historical development and

evolution of management school

of thought By Habibu Ayuba,

BSc; PGDE, MSc; ACA inview.

08030527135

BEHAVIORAL OBJECTIVES

At the end of this presentation, you will able to discuss nature, contribution and limitation of:

Pre-Scientific Management

Scientific Management school,

Fayol‟s Administrative Management,

Weber‟s Theory of Bureaucracy,

The Human Relations Theory,

The Systems Theory

The Contingency Theory

Dynamic Management school/ Modern Theories

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APPROACHES TO MANAGEMENT THOUGHT AND ORGANIZATIONAL DESIGN

Management philosophers, sociologists, behavioral scientists and practical managers has beenyarning for considering of how to fill in the gap between the organization’s imperatives andemployees’ prerogatives.

This gap has been in existence since when the people realize the need to employ mass labor inachieving production productivity which is the genesis of industrial revolution of the west. Because,industrial revolution is the landmark in the human history that bring people of different backgroundto come together to work as an organization for the achievement of common goal.

The early problematic issues that were perceived to constrain the achievement of work goals,productivity and efficiency of organization was the problem encountered in the industrial revolutionfollowed by the need to find ways of matching employees welfare and organizationalprerogatives.

Different answers are provided; where others have paid their emphasis on addressingmanagement prerogatives; some looks on the employees imperatives, all in an attempt to attainlevel of efficiency and effectiveness in the organizational performance whether private or public.


EVOLUTION OF MANAGEMENT SCHOOL OF THOUGHT

In the last one hundred years and especially since the onset of mass production and large-scale organizations,a large number of ideas have emerged from different corners of the world and from people of differentbackgrounds. Naturally, the ideas of each contributor to management thought reflect the assumptions,knowledge and experience of the individuals or group. Management theory attempts to classify andsynthesize these ideas into a coherent perspective (Inegbenebor, 2005).

Early management theory consisted of numerous attempts at getting to know these newcomers to industrial lifeat the end of the nineteenth century and beginning of the twentieth century in Europe and united states. Theseincludes – Scientific management – Classical organization theory – Behavioral school and management science.As we study these approaches, keep one important fact in mind that the managers and theorists whodeveloped this assumption about human relationships were doing so with little precedent. Large scale industrialenterprise was very new. Some of the assumption that they made might therefore seem simple or unimportantto you, but they were crucial and especially to Ford and his contemporaries.

Therefore, this brings a roughly chronological perspective of grouped management ideas as discussed in thefollowing order: pre-scientific management, scientific management, Fayol‟s administrative management,Weber‟s theory of bureaucracy, the human relations theory, the system theory, the contingency theory; anddynamic management/modern theories.


KEY MANAGEMENT THEORIES: AN OVERVIEW

Pre-classical management

(MuckRackers; Expose of Business: 1890-1910)

Scientific Management/classical school of management

(Great Depression: world war 1&2: 1911-1950)

Behavioral school/classical school of management (Diming lecture on quality in Japan & protest movement: 1940-1970)

Management Science school of thought

System theory and system approach to management

Contingency management school of thought

Dynamic Engagement Approach


PRE-CLASSICAL CONTRIBUTION TO MANAGEMENT

The Pre-classical/pre-scientific management era refers to the period immediatelypreceding the scientific management by Taylor and his associates. Prominent amongthe pioneers who made significant contributions to the pre-scientific thought were:

Robert Owen (1771 -1858)

Charles Babbage (1792 -1891)

Henry Vamun Poor

Captain Henry Metcalfe (1847 -1917)


ROBERT OWEN (1771 -1858)(PRE-CLASSICAL CONTRIBUTOR)

He believed workers‟ performance was influenced by the total environment in which theyworked. Throughout his life, Owen worked for the building of cooperation between workersand management. He believed and practiced the idea that workers should be treated ashuman beings. Owen suggested that investment in human beings is more profitable thaninvestment in machinery and other physical resources. He introduced new ideas such as:

shorter working hours,

housing facilities,

education of workers‟ children,

provision of canteens,

rest houses, training of workers in hygiene, etc.

His ideas and philosophy may be considered as a prelude to the development of behavioral approach to management.


CHARLES BABBAGE (1792 -1891)(PRE-CLASSICAL CONTRIBUTOR)

Babbage was a professor of mathematics at Cambridge University from 1828 to1839. Babbage perceived that the methods of science and mathematics could beapplied to operations of factories. He made several contributions expounding hisideas and theories. Babbage was a pioneer of operations research and industrialengineering techniques. He laid considerable emphasis on specialization, workmeasurement, optimum utilization of machines, cost reduction and wage incentives. Hisemphasis on the application of science and mathematics laid the foundation for theformulation of a science of management.


HENRY VAMUN POOR (PRE-CLASSICAL CONTRIBUTOR)

Henry .V. Poor advocated a “management system” with a clear organizationalstructure in which people could be held completely accountable and the need for aset of operating reports summarizing revenues and rates. He was a strong advocateof effective leadership that would overcome routine and dullness by instilling in theorganization a feeling of unity, effective work habits and esprit de corps.

Thus, Poor called for a system before Taylor. He called for the recognition of thehuman factor before Mayo. He also suggested leadership to overcome the rigiditiesof the formal organization much before Chris Argyris.


CAPTAIN HENRY METCALFE (1847 -1917)(PRE-CLASSICAL CONTRIBUTOR)

Metcalfe published a famous book “The Cost of Manufacture of Workshop: „New systemcontrols‟ which suggested that:

(i) The science of management is based on principles that evolved by recording observationsand experiences.

(ii) The art of management should be based on several recorded and accumulatedobservations, which are presented systematically.

(iii) Management should make certain cost estimates on the basis of these observations .

(iv) However, management should maintain only relevant crucial information.

A manager should prepare details of work which will then be communicated to the foremanand workers. Metcalfe suggested a system of cards. Under this system, managers prepare twotypes of cards, i.e., time cards and material cards. This system is intended to assure theworkers that good workers and good work done by them would be known to management. Italso provides a method of gauging their work.


SCIENTIFIC MANAGEMENT SCHOOL OF THOUGHT(CLASSICAL CONTRIBUTOR)

Developed by FREDDERICK WILSON TAYLOR (1856-1917); as he started his career aslaborer moving to foreman and to chief engineer at the mid-vale steel works before becomingan engineer at the Bethlehem steel work.

At the time the theory was developed, there was considerable interest which had provided afirst wave of business mergers, cartel, holding companies and trusts. It was the time when studyof physics was very popular. This was the impetus that had made Taylor to believe that sciencecould be employed in doing the job right. He believed that the way to reconcile differencesbetween management and employees was to create a social physics of work.

He anchored the theory on the belief that the leading causes of inefficiency in theorganization are:

The workers; ill-founded belief that the increased output would lead to unemployment.

The deficient management systems that made it necessary for the workers to restrict output;and

The inefficient rule of thumb approach to work.


PRINCIPLES OF SCIENTIFIC MANAGEMENT

Fedrick w Taylor (1986-1915) rested his philosophy on four basic principles.

1. Scientific Approach to Work: The development of a true science of management so that the best method forperforming each task could be determined. This include a minimum specialization which can enable removal ofextraneous element of the job. Wasteful and duplication in the motion of the work are eliminated.

2. Scientific Selection and Progressive Training: The Scientific selection of workers so that the each workers wouldbe given responsibility for the task for which he or she was best suited. Management should be responsible forbringing best worker for the job. They should provide him/her with the opportunity for advancement. Any employeecan be first class worker with the scientific management training, but the inert talent makes the workers progresseasier.

3. Incentives for Reward: He believes that traditional fixed rate system of pay is not conducive for high productivity.Thus, in addition to the fixed rate, an incentive system should be employed in which workers would receive more payfor more output.

4. Separation of Planning from Performance: Taylor strictly divided management responsibility as to do planning,set standard and develop incentive program of the job while the workers’ duty is to execute the planning. Intimatefriendly cooperation between management and labor is the key to be successful in applying scientific management.


SCIENTIFIC MANAGEMENT SCHOOL(CLASSICAL CONTRIBUTOR)

• The scientific management schools

1. Scientific management theory arose in part from the need to increase productivity.

2. In the united states especially, skilled labor was in short supply at the beginning of the twentieth century.

3. The only way to expand the productivity was to raise the efficiency of workers.

4. Therefore , the proponent of Fredrick. W. Taylor; Henry Gantt, and Frank and Lillian Gilberth devised the body of principles known as Scientific management theory.

Advocates of scientific management included Fredrick W. Taylor (1856-1915), Frank Gilbreth(1868-1924), Lilian Gilbreth (1856-1915), Henry Gantt (1861-1919), Harryington Emerson (1853-1931). Taylor however played a dominant role.

• Taylor contended that the success of these principles required ”a complete mental revolution” on the part of management and labor.


HENRY L. GANTT (1861-1919)

He worked with Taylor on several projects including consultancy assignments in Sigmund andBethlehem steel. Working independently later, he developed other techniques for improvingworkers‟ output. Gantt introduced a charting system for production scheduling – the “GanttChart” which is still used today. He also developed work quota systems complete with bonussystems for workers and/or managers who meet or exceed the quota. The major contributionsof scientific management are:

(a) Development of managerial skill of job design through the division of labor andspecialization of labor.

(b) The concept of productivity and wage rate based on productivity of employees.

(c) Importance of scientific selection and training of employees.

(d) Introduced the use of rational and cost reduction techniques to increase efficiency andperformance.

(e) Formulated work standards.


SCIENTIFIC MANAGEMENT SCHOOL CONT….(CLASSICAL CONTRIBUTOR)

Henry L. Gantt (1861-1919) worked with Taylor on several projects but when he went out on hisown as a consulting industrial engineer, Gantt began to reconsider tailors insensitive systems. •

Abandoning the differential rate system as having too little motivational impact Gannet came upwith new idea. • Every worker who finished days assigned work load win 50 percent bonus. • Thenhe added a second motivation The supervisor would earn a bonus for each workers who reachedthe daily standard. • plus a extra bonus if all the workers reached it. • This Gantt reasoned wouldspur super wiser to train their workers to do a better job. • Every workers progress was ratedpublicly and recorded an individual bar charts • I black on days the worker made the standard inred when he or she fell below it. • Going beyond this Gantt originated a charting system forproduction was translated into eight languages and used through out the world . •

starting in 1920 s it was use in Japan Spain and soviet union it also formed that the basis of twocharting device which were developed to assist:

1. In planning ,managing and controlling complex organization the critical path method (cpm)originated by DuPont and program evaluation and review Technique(pert),developed by navy.

2. lotus 1-2-3 is also a creative application of the giant chart.”


FRANK GILBRETH AND LILLIAN GILBRETH(CLASSICAL CONTRIBUTOR)

Frank and Lillian Gilbreth were noted pioneers of Time and Motion study. This coupledeveloped the classifications of motions used to complete the job and they called them“THEBLIGS,” the Gilbreth name spelt backwards. Working individually and together, theGilbreth developed numerous techniques and strategies for eliminating inefficiency.

Frank B. and Lillian M. Gilbreth(1968-1924) and (1878-1972) made their contribution • Tothe scientific management movement as a husband and wife team. Lillian and Franckcollaborated on fatigue and motion studies and focus on ways on promoting the individualworkers welfare. to them the ultimate aim of scientific management was to help workers reachtheir full potential as human beings • In their conception motion and fatigue were intertwinedevery motion that was eliminated reduced fatigue. • using motion picture cameras they tried tofind out the most economical motions for each task in order to upgrade performance andreduce fatigue.


MAJOR CONTRIBUTION OF SCIENTIFIC MANAGEMENT(CLASSICAL CONTRIBUTOR)

Scientific management was concerned with increasing the productivity of the shop and the individual worker.

classical organization theory grew out of the need to find guidelines for managing such complex organization as factories.

Development of managerial skill of job design through the division of labor and specialization of labor.

The concept of productivity and wage rate based on productivity of employees.

Importance of scientific selection and training of employees.

Introduced the use of rational and cost reduction techniques to increase efficiency and performance.

Formulated work standards.


LIMITATION OF SCIENTIFIC MANAGEMENT

Scientific management methods are applicable only in predictable and stable environment and have limited applications in complex and unpredictable environments.

It over emphasized the economic and rational nature of man and overstates man's desire for money.

The scientific management theory did not attach importance to human behavior, i.e., it overlooked the human desire for job satisfaction and social needs of the workers as a group.

Over emphasis on productivity and profitability led some managers to exploit both workers and customers.

Although Taylor's method led to dramatic increase in productivity and higher pay in number of instance .

Workers and unions began to oppose his approach because they feared that working harder or faster would exhaust whatever work was available Causing layoffs.


CRITICS OF SCIENTIFIC MANAGEMENT

Moreover, Taylor’s system clearly meant that time was of the essence .

– His critics objected to the speed up condition that placed undue pressure on employees to perform at faster and faster levels.

– The emphasis on productivity and by extension profitability led some managers to exploit both the workers and customers.

– As a result more workers joined unions and thus reinforced a pattern of suspicious and mistrust that shaded labor relations for decades.


ADMINISTRATIVE MANAGEMENT THEORY(CLASSICAL CONTRIBUTOR)

Developed at the same time with scientific management, the administrative theory“emphasizes management functions and attempts to generate broad administrativeprinciples that would serve as guidelines for the rationalization of activities.” Theprincipal contributors to this management theory were Henri Fayol (1949), Mooneyand Reiley (1939) and Gulick and Urwick (1937). Administrative theorists looked atproductivity improvements from the “top down,” as distinct from the ScientificApproach of Taylor, which was organized “bottom up.” Administrative theoristsdeveloped general guidelines on how to formalize organizational structures andrelationships. They laid emphasis on the job in preference to the worker. Theadministrative management emphasized the manager and the functions ofmanagement.


HENRI FAYOL (1841-1920)

Henri fayol (1841-1925) was generally hailed as the founder of the classical management school –not because he was thefirst to investigate managerial behavior but because he was the first to systematize it.

He was a contemporary of Fredrick Winslow Taylor. Fayol believed that techniques of effective management could bedefined and taught. His work included defining a body principles which would enable a manager build up a formal structureof the organization and administer it in a rational way. He was a Staunch advocate of the universality of managementconcepts and principles.

Fayol divided the activities of industrial undertakings into:

(j) Technical (Production)

(ii) Commercial (Buying, selling and exchange)

(iii) Financial (Optimum use of capital resources)

(iv) Accounting (protection of property and person)

(v) Accounting (recording and taking stock of costs, profits and liabilities, keeping balance sheet and compiling statistics)

(vi) Managerial (planning, organizing, commanding, coordinating and controlling).


HENRI FAYOL (1841-1920) CONT….PRINCIPLES OF MANAGEMENT

(a) Division of labor: The more people specialize, the more efficiently they can perform their work. The most people specialize the more efficiency they can perform their work. This principle is epitomized by the modern assembly line.

(b) Authority and responsibility: Managers need to be able to give orders so they can get things done. While their formal authority gives them the right to command, managers will not always compel obedience unless they have personal authority (such as intelligence) as well.

(c) Discipline: Members in an organization need to respect the rules and agreements that govern the organization. To Fayol, discipline will result from good leadership, fair agreements, and judiciously enforced penalties for infractions at all level of the organization.

(e) Unity of command: Each employee must receive his or her instructions about a particular operation from only one superior. Fayolbelieved that if an employee was responsible to more than one superior, conflict in instructions and confusion of authority would result.

(f) Subordination of individual interest to the common good: In any undertaking, the interests of employees should not take precedence over the interests of the organization as a whole.

(g) Remuneration: Compensation for work done should be fair to both employees and employers.

(h) Centralization: Decreasing the role of subordinates in decision making is centralization; increasing their role is decentralization. Fayol believed that managers should retain final responsibility but also need to give their


HENRI FAYOL (1841-1920) CONT….PRINCIPLES OF MANAGEMENT

(i) The Hierarchy: The line of authority in an organization – often represented by the neat boxes and lines of the organization chart – runs in order of rank from top management to the lowest level of the enterprise.

(j) Order: Materials and people should be in the right place at the right time. People in particular, should be in the jobs or position most suited for them.

(k) Equity: Managers should be both friendly and fair to their subordinates.

(l) Stability of Staff: A high employee turnover rate is not good for the efficient functioning of an organization.

(m) Initiative: Subordinates should be given the freedom to conceive and carry out their plans, even when some mistakes result.

(n) Esprit de Corps: Promoting team spirit will give the organization a sense of unity. To Fayol, one way to achieve this spirit is to use verbal communications instead of formal written communications whenever possible.


CONTRIBUTION AND LIMITATION OF FAYOL’S PRINCIPLES

It is likely that some of these principles had been practiced by astute managers long before Fayol appeared. But it was Fayol who first codified these principles, making it possible for all managers to learn them. He thus helped lay the foundation for management as a profession.

Contributions of Fayol’s Principles to Management His principles:

i. Laid the foundation for management theory.

ii. Identified key processes, functions and skills of managers that are still important today.

iii. Made management a valid subject of scientific inquiry.

iv. The 14 principles enlighten managers about their responsibility.

v. The principles provides guidance and direction not only for managers but to employees which boost their morale and motivation

Limitations:

I. The principles can best be used in simple, stable organizations.

II. It provided universal procedures that may not be appropriate in all settings.

III. There is controversy over the meaning of the term Principle.


THEORY OF BUREAUCRATIC ORGANIZATION

The founder of the theory was a prodigious writer in person of Max Weber (1864-1920). Hisinterest in the study of historical development of civilization and theory of authority structuremotivated him to wander as to why people obey, more precisely why people do what theyare told to.

Central to the interest, he was able to distinguish power, ability to force compliance in othersand authority. His findings came to the conclusion as to people obey other because of thefollowing:

Charisma,

Tradition, and

Authority (rational-legal authority).

Bureaucracy is defined as an ideal system where in positions, task and duties are clearlydefined, specialization is maintained through division of labor and chain of command aremade clear and precise as well as objectives to be achieved are very explicit.

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THEORY OF BUREAUCRATIC ORGANIZATION CONT….

Weber distinguishes these three types of authority as follows:

Charisma/charismatic leader/charismatic Authority: is a qualities or human attribute thathave made others to believe in to obey the holder of the attributes. These traits or leaders’passion of qualities can be expertise and knowledge, affluent and philanthropy, vocalist andeffective communication etc. Authority is based on the person existence. Examples are:prophets, professors and religious leaders.

Traditional Authority: is the product of inheritance and culture where obey someone simplybecause they have seen that person or object gained respect. Custom and convention of thesociety play significant role in ensuring this authority. It is found in monarchy and feudalism.Authority is based on the precedence and usage. Examples are: Emir, Obas, Sultan and Boss.

Rational Legal Authority: is the exercise of power and influence due to the position holdwhich is backed by the legal sanction. The position occupied always has title, rule andregulation, tenure where necessary and procedure. Authority is based on the exercise of thegoverning rules and procedure. Examples are: chief executive officer (CEO), president orchairman.


CHARACTERISTICS OF BUREAUCRATIC ORGANIZATION

Weber enumerated the features of an ideal-type bureaucracy as follows:

(a) Division of labor: Each role has a clearly defined set of tasks along with aspecified area of jurisdiction and responsibility.

(b) Authority Hierarchy: The roles or jobs are organized to form a hierarchy ofauthority. In this wise, higher level officers with more expertise are empowered tosupervise those at the lower levels in the chain of command.

(c) Formal selection/Technical qualification: Employees are expected to berecruited on the basis of their competence and expertise while the progression ofemployees should be based on seniority or achievement.


CHARACTERISTICS OF BUREAUCRATIC ORGANIZATION CONT….

(d) Career orientation: The officials of the organization are not owners of the organization but are regarded mainly as professionals who have specified duties, tenure and reward; and cannot be arbitrarily removed. They can use the property of the organization only for the purpose of the organization and not for personal purposes.

(e) Formal rules and controls: Clearly stated rules, regulations and procedures are adhered to. Thus, written documents and records are essential features of bureaucracy. It enables previous decisions to be used as precedents and for the organization to monitor its operations effectively.

(f) Impersonality: Rules and policies are applied uniformly regardless of personal feelings or needs. Thus the application of impersonality as it refers to rules produces a high degree of reliability and predictability in the exercise of the organization's operations.


CONTRIBUTION OF BUREAUCRATIC ORGANIZATION

Since the policies, rules and procedures are set and applicable to all, this leads to consistent employee behavior. This behavior is predictable, making the management process easier to implement.

Since the jobs, duties and responsibilities are clearly defined, the overlapping or conflicting job duties are eliminated.

Hiring and promotions are based on merit and expertise. This results in matching the right workers with the jobs which makes the utilization of human resources optimum. Also the individuals move up the hierarchy as they gain expertise and experience.

The division of labor makes the workers specialists. Hence their skills are further polished; they become experts and perform more effectively.

The organization continues, even if the individuals leave since the position is emphasized rather than the person. For example, if a president leaves, another person is hired or promoted to that position and the organization continues to operate.


LIMITATION OF BUREAUCRATIC ORGANIZATION

There is too much red tape and paper work due to its inflexibility.

Impersonality to employee and client: Because of impersonal nature of work, the employees tend to be less committed to theorganization and customer may suffer less attention required of.

Excessive rules and regulations and a strict adherence to these policies inhibit initiative and growth of the workers. Employeesare treated like machines and not as individuals.

Employees become so used to routines that there is a resistance to change and introduction of new techniques of operations.

It leads to trained incapacity: is a situation where by the actions that are successfully applied to previous problems mayresult to incorrect responses when applied to a new problem.

It leads to means-end inversion: is a situation where by the rule itself may become ends instead of an avenue to achieve adesired goal.

It creates occupational psychosis: occurs when people develop special preferences to a job due to routine dailyaction/activity and as such they may not like or can refuse to take a new task which is outside their job description.

Charles Perrow (1979) argues that these limitations arise because of the poor management for the executives of theorganization.


THE BEHAVIORAL SCHOOL (HUMAN RELATIONS THEORY )(CLASSICAL CONTRIBUTOR)

The behavioral school emerged partly because the classical approach did not achieve sufficient production efficiency andworkplace harmony. That would solve the following problems which are:

To ‘managers’ frustration to effectively manage their organization and productivity

People did not always follow predicted or expected patterns of behavior.

Thus there was increased interest in helping managers deal more effectively with a people side of their organizations.

Several Theorists tried to strengthen with a people side of their organization theory with a insights of sociology andpsychology among many include:

The human Relations movement

• Human relations is frequently used as a general term to describe the ways in which managers interact with their employees.

•When “employee management” simulate more and better work ,the organization has a more and better work, theorganization has effective human relations.

•when morale and efficiency deteriorate, its human relations are said to be ineffective .

•The human relations movement arose from early attempts to systematically discover the social and psychological factors thatwould create effective Human reaction.


HUMAN RELATIONS THEORY(CLASSICAL CONTRIBUTOR)

The human relations movement drew heavily on a series of famous experiments calledthe Hawthorne studies which were conducted from 1924 to 1933 at the Hawthorneplant of the Western Electric company in Cicero, Illinois. The neglect of the humanaspect and overemphasis on machines, materials and abstract functions led to thedevelopment of this approach. Prof. Elton Mayo led the team which conducted theexperiments that resulted in the human relations and behavioral science approach tomanagement.

The human relations approach emphasizes the individual and focuses on inter-personal approach. It studies the individual, his needs and behavior. Its main conceptsare motivation and job satisfaction.


(ELTON MAYO; 1880 – 1949)

Elton Mayo and his Harvard associates conducted the famous studies of humanbehavior in work situations at the Hawthorne plant to Western Electric from 1927 –1932. Mayo was called in by Western Electric when other researchers, who had beenexperimenting with work-areas lighting, reported some rather peculiar results:

They had divided the employees into a “test group” whose illumination was variedthroughout the experiment and the “control group”, whose lighting remain constantthroughout the experiment. When the test groups lighting conditions improved,productivity increased, just as expected.

But what mystified the researchers was a similar rise in productivity when illuminationwas reduced. To compound the mystery, the control group's output kept rising witheach alteration in the test groups lighting condition, even though the control groupexperienced no such changes. In his attempt to solve this puzzle, Mayo ushered in thenew era of human relations.


THE HAWTHORNE EXPERIMENTS

In this study, the emphasis was placed in worker rather than the work. The conclusions drownwere people are social animal; and membership in a group is so important to individualsleading to informal group within an official formal group. The research was conductedbetween 1927 to 1932 at the Hawthorne Plant of the Western Electric Company in Chicago,USA.

The studies were carried out over the years in a number of different stages as follows:

Stage one (1924-1927): it was conducted under the direction of company’s own staff: MessrsPennock and Dickson. The concern was the effect of lightning on output. Two group wereselected, isolated and located in the separately in the plant. Lighting was consistentlyprovided to the two groups: control and experiment. But, the lightning was varied (reduced) inthe experimental group; Yet, the output of both groups increased. Mayo’s attention and hisHarvard colleague was called.

Stage two (1927-1929): it called Relay Assemble test Room. This is to study the effect ofdifferent physical working condition on productivity. Once again, the increases of output wererecorded. Then, the researchers realize that they are studying employees’ attitude and values.


THE HAWTHORNE EXPERIMENTS CONT….

Stage Three (1928-1930): it was called Relay Assembly Test. Interview wasconducted at this level to ensure the values and attitude of employees wereascertained. It was discovered that the relationship with people in organization wasthe important factors.

Stage four (1932 ): it was called Bank Wiring observation room. The aim of thestudy was to observe group working under less or normal conditions over period ofsix months or so. It was discovered that the group develop its own rules and behavior.Supervisors were powerless to prevent the group to restrict or increase the output.

Stage five (1936): it was built based on the lesson learnt from previous researches.The study focused firmly on the employees relationship with the management. Theresearchers offered personnel counseling. They encouraged employees to discuss theirwork related problem with the management. This results improvement on theemployees- supervisors relationship and employees-management relationship.


THE HAWTHORNE EXPERIMENTS CONT….

The conclusion drown from the experiments includes:

That the individual workers can not be treated in isolation rather must be seen as amember of a group.

That the need to belong to group and have status within it is more important thanthe monetary reword and incentive or good working condition.

That the informal unofficial groups at work exercise strong influence over thebehavior of the worker.

That the management need to be aware of these social needs of employees so as tocater for it.

That the management should collaborate with the unofficial organization and goagainst it in achieving the goal of the organization.


CONTRIBUTIONS OF HUMAN RELATIONS THEORY

By stressing social needs, the human relations movement improved on the classical approach, which treated productivity merely as anengineering problem. In a sense, Mayo had rediscovered Robert Owen’s century-old dictum that a true concern for workers, those “vitalmachines”, paid dividends.

His studies revealed a fact that seems common-place today: that an office, factory, or shop is not merely a work place but also asocial environment, with employees interacting with each other. And this social environment is very influential in determining the qualityand quantity of work produced.

In addition, Mayo spotlighted the importance of a manager's style and thereby revolutionized management training. More and moreattention was focused on teaching people management skills, as opposed to technical skills.

His work led to a new interest in the dynamics of groups. Managers began thinking in terms of group incentives to supplement theirformer concentration on their individual worker.

The findings discovered informal organization in the formal system.

It was observed that workers’ work satisfaction is more of dependent on and derived from the informal social pattern of work group.

Good leadership is a key to increased employees’ productivity.

Physical working environment is not having much to do with workers’ productivity in the united working group.

Level of productivity or how much is produced is dependent upon the group norms and cooperativeness in the informal settings.


LIMITATIONS OF HUMAN RELATION SCHOOL

The concept of “social man” was an important counter weight to the one-sided“rational-economic man” model. But it too did not completely describe individuals inthe work place.

Many managers and management writers assumed that the satisfied workers wouldbe more productive workers. However, attempts to increase output during the 1950sby improving working conditions and the human relations skills of managers did notresult in the dramatic productivity increases that had been expected.

It is inconclusive to relate leadership training to high productivity.

Training only help individual worker but do not result to more enduring benefits tothe organization.


THE CONTINGENCY APPROACH TO MANAGEMENT

The contingency approach some times called (situation approach) was developed by the managers,consultants and researchers who tried to apply the concepts of the major schools to the real life.

when methods are highly effective in one situation do fail to work in other situation.

They sought an explanation. why for example did an organization development work brilliantly in onesituation and fail miserably in another.

Advocates Of the contingency approach had a logical answer to such question. Result differ becauseSituation differs.

A technique that work in one case will not work in other. According to the contagious technique, the managersjob is to find which technique will in a particular situation, under particular circumstances and at a particulartime work.

To contribute to attainments of management goals, where workers need to encourage increasing productivity;For example, a classical theorist may prescribe a new work simplification scheme.; the behavioral scientist mayinstead seek to create a psychologically motivating climate and recommend.


THE CONTINGENCY APPROACH TO MANAGEMENT CONT..

The proponents of contingency theory have rejected classical and neo-classical theories asthey were either too universalistic or too prescriptive in providing solution to management andorganizational problem.

Among many, the proponents who have made the term very popular are:

Katz and Kahn (1978)

Thompson (1967)

Burns and Stalker (1971)

Woodward (1965) and

Joy lorsch (1967)

Contingency refers to as a choice among alternative course of actions. It is defined as aneffort to determine through research; which managerial practices and techniques that can beappropriate at a specific situation.


THE CONTINGENCY APPROACH TO MANAGEMENT CONT…

Contingencies approach maintains that each unit or element in the organizationdepends the others elements; and as such; there is no generally best way toaccomplish a task given the uniqueness of the organizational subsystem. The effect ofmanagement pattern and action is contingent upon the multitudinous factors and theirinterrelationship in a particular situation which means the application of variousmanagement tools and techniques are needed. Particular situation requires a uniqueapproach to solve a unique problem.

Contingency researchers recognize the interdependency of personal and situationalfactors in determining employees’ behavior, organizational design, customer attitudeand soon. The best approach is fit the external environment. Managers train in thecontingencies always ask which method will work best here in this situation/problem.


THE CONTINGENCY APPROACH TO MANAGEMENT CONT….

Similarly, some approach like job enrichment which has allowed the combination of tasks thatare different in scope and responsibility and allow the worker greater autonomy in makingdecisions look better than the job rotation.

But the manager trained in the contingency approach still will always ask: Why, forexample, did a behavioral scientist's concept work brilliantly in one situation and did failmiserably in another?

which ties the recourse are limited, work simplification would be the best solution,

However, what makes skilled workers to be driven by pride in their abilities to think of a jobenrichment program might be more effective.

The contingency approach represents an important turn in management theory, but it portalseach set of organization relationship in its unique circumstances.


CHARACTERISTICS OF CONTINGENCY THEORY

The features that have described contingency theory are as follows:

An open system perspective: states that to focus on just internal workings of theorganization is not enough to explain a management situation; there is need tounderstand how system of the organization interact with outside: social, political andeconomic environment.

A practical Research Orientation: states that an attempt has to be made totranslate various research findings related to management into tools and situationalrefinements for more effective management.

A multivariate Approach: states that multiple variables have to be used in attemptto explain the managerial problems. For instance; to ensure employee productivity; isit to examine his personality, nature of his work, the reward system or the job itself.


CONTINGENCIES VARIABLES

Attempts are made by the contingency theorists to identify the variables that can be employed as contingencies. The following are referred to as contingency variables:

Technology,

Environment and

Size of the organization.

Different scholars and academies have forwarded their explanation about the variables as contingencies.


TECHNOLOGY AS A CONTINGENCY VARIABLE

The work of Joan Woodward (1916-1971); a professor of industrial sociology at the university of London,pioneered the South End Essex Research study on manufacturing firms. Her findings have discovered a modeltechnology which is the primary flow of production in each manufacturing companies.

Three (3) models of technology ware discovered which are as follows:

Unit/Small Batch Technology: is a production to directly meet the customers’ needs and requirement. Itincludes building prototype especially in the large equipment that requires stages in its manufacturing.Tailoring also uses this technology.

Mass/Large Batch Technology: is a production of product that requires assembly line which is always in massproduction. Television sets manufacturing uses this technology.

Process Technology: is a production of product that requires continuous processing. Production of gases andrefinement of crude oil requires this technology.

she argues that firms adopt modal technology based on their objectives. What they wants to do and themarket they want to service.

The findings revealed that the successful companies do have characteristics that are about average for theirmodel technology.


ORGANIZATIONAL STRUCTURE IN MODEL TECHNOLOGY CHARACTERISTICS

Unit Technology:

Enjoys law number of management level,

Enjoys high ratio of direct to indirect labor,

Enjoys law amount of written communication; and

Enjoys high amount of verbal communication.

Mass Technology:

Enjoys average number of management level,

Enjoys average ratio of direct to indirect labor,

Enjoys high amount of written communication; and

Enjoys law amount of verbal communication.

Process Technology:

Enjoys high number of management level

Enjoys law ratio of direct to indirectlabor.

Enjoys law amount of writtencommunication; and

Enjoys high amount of verbalcommunication.


ENVIRONMENT AS A CONTINGENCY VARIABLE

Harvard led group of professor Paul Lawrence and Jay Lorsch attempted to determine whatinfluence an organizational environment has on its structure. The key variables are:

Management’s perception of the environment

Organizational structure

Organizational performance

The findings discovered that the successful firms adopt structure in line with the requirements of theirenvironment. Thus, they argue that

The more stable the environment, the fewer the requirements for differentiation and integration;the more unstable the environment, the greater the requirements for differentiation and integration.

Therefore, more successful firms were able to develop organizational structure consistent with thedemand of the environment.

They equally discovered that the organization can be Mechanistic and organic.


CHARACTERISTICS OF ORGANIC ORGANIZATION

The type of environment befitting organic organization is unstable which requires highlevel of integration and differentiation and exhibits these features:

that there is unclear information about environment.

That there is high rate of environmental changes.

That there is longer time of feedback from the organizational action.

That there is uncertainty regarding cause and effect relationship of actions.

That there is employment of un-programmable task to achieve goal.

Success of the organization is measured in term of productivity, patent rightacquired and subjective appraisal of effectiveness.


CHARACTERISTICS OF MECHANISTIC ORGANIZATION

The type of environment befitting mechanistic organization is stable which requireslaw level of integration and differentiation and exhibits these features:

that there is clear information about environment.

That there is low rate of environmental changes.

That there is shorter time of feedback from the organizational action.

That there is certainty regarding cause and effect relationship of actions.

That there is employment of programmable task to achieve goal.

Success of the organization is measured in terms of: number of new productsintroduced in the market, cost minimization comparison and objective appraisal ofeffectiveness.


SIZE AS A CONTINGENCY VARIABLE

Proponents of this variable size of an organization as a determinant of organization’s structurepropose that:

The size causes structural differentiation: This state that as organization becomes larger, thenumber of levels and divisions must increase calling for more better coordination to meet thedemand of new personnel. The size is related to vertical and horizontal integration.

The structural differentiation enlarges the administration: This state that the demand forgreater coordination and control result increases of administrative staff to direct andadminister the organizational activities. Increases in size also brings about formalization andstandardization which necessitate more effective control.

Size moderates the effects of technology on structure: this states that it is observed that theeffect of unit technology strongly influence organizational structure of the small firm while inlarger ones the effect is not significant.


CONTRIBUTION AND LIMITATION OF CONTINGENCY THEORY

The theory provides these implications:

That all it depends assumption in management which shows that in every decision and action there are more than one way of doing it.

That the changes in the environment, technology and size can be monitored since the problem solving techniques are highly flexible.

That managers can make better decision to improve their organizational structure if not changing it.

Limitation of the theory:

It presents an organization as a captive to its environment, technology or size. The level of influence may not be as exaggerated.

Too much emphasis are put on these contingency variables.


SYSTEM THEORY AND APPROACH TO MANAGEMENT

The system approach to management views the organizations as a unified, purposefulsystem composed of integral parts.

• This approach gives managers A way of looking at the organization as a hole andas a part of the larger external environment.

• Systems theory tells us that the activity of any segment of an organization affects,in varying degree the activity of every other segment.

• Production managers in a manufacturing plant, for example ,prefer longuninterrupted production runs of standardized products in order to maintain maximumefficiency and low costs.


SYSTEM THEORY AND APPROACH TO MANAGEMENT CONT….

Marketing managers on the other hand who want to offer customers quick delivery of a widerange of products would like a flexible manufacturing schedule that can fill special order onshort notice.

• Systems oriented production managers make scheduling decisions only after they haveidentified the impact of these decisions on other department and on the entire organization.

• The point of system approach is that managers cannot wholly with in the traditionalorganization chart.

• They must mesh their department with the whole enterprise.

• To do that they have to communicate not only with other employees and departments, butfrequently with representative of other organization as well.

• Clearly ,systems managers grasp the importance of the webs of business relationship to theirefforts.


SYSTEM THEORY AND APPROACH TO MANAGEMENT CONT….

System approach argues that other approaches to management have seenmanagerial problem as can be explained by a single variable or things apart. But, inreality the whole is always the sum total of the parts and can explained in term of itspart. In other word, managerial practice is much realistic by putting things togetherassuming that the whole is greater than the sum of its parts.

Its argument lies between analytical and synthetic thinking. Analytical thinkingconcerns much about the outside of the organization only; while, synthetic thinkingcombines both internals and externals activities of a management. Because, managersare affected by the internal and external challenges of the business environment.

Managers are enjoined to put effort in identifying relevant parts that can enablediscovering how organizational parts interact to ensure smooth achievement of itsobjectives.


GENERAL SYSTEM THEORY

The root of system theory in management stems from the work of renown Biologist: Ludwig Von Bertalanffy. His study brings abeautiful discovery as to how the world or every living creature survives and relates with one another.

General system theory was established based on the assumption that every things in the universe is a part of a largerinterdependent arrangement. In order to understand an organized whole, one has to study and know its parts and their inter-relationship between/among them.

Various levels ware discovered in the interdependent arrangement of an organized whole. In fact, there are seven (7) levelswhich are arranged from specific to general. They are as follows:

Supranational level; for instance, united nation organization (UN)

National level; for instance, a country like Nigeria

Organizational level; for instance, ICAN or Dangote Plc

Group level; for instance, Family or Employees Union

Organismic level; for instance, Human Being or Employee

Organic level; for instance, organs of human body like Heart, Liver, brain and so on

Cellular level; for instance, Human blood cell etc.


GENERAL SYSTEM THEORY CONT….

The idea of general system theory was imported in to study of management by Chester. I. Barnard (1886-1961). His belief was that peoplecoming together as an organization formally to achieve ends which they can never accomplish alone. Thus, as people pursue organizationalgoals, they equally have individual goal that must be pursue together to be achievable.

Therefore, it is the duty of management to bring individual and organizational goals to balance. As the more managers have understood anemployees’ zone of indifference; that is what employee would do without questioning the authority of the manager, the better and smoothercooperatively to achieve the stated goal.

There is the need for managers to instill a sense of moral purpose in the staff to learn to think beyond their narrow self interest but to makeethical commitment to society.

Barnard (1938) in his book Function of Executive describes organization as to be characterized as cooperative system. A cooperative system is acomplex of physical, personal, biological and social components which are in a specific systematic relationship by reason of cooperation of twoor more person at least to achieve one definite ends.

Organizations do exist and survive simply because of the following:

Willingness to serve common purpose

The common purpose; and

The communication

Communication is the energizing force that bridge the natural gap between people willingness to serve and organizational common purpose.


SYSTEM THEORY OF MANAGEMENT

It views organization as a unified directed system of interrelated parts. The theoryenjoins managers to see organization as a whole and equally as a part of largerexternal environment. Its activities can affect and be affected in varying degrees tothe activities of other segment within or outside.

What is system?

It is defined as a collection of parts operating interdependently to achieve acommon purpose.

It is a set of elements that are orderly interrelated as a functional whole.

Examples of system are: ICAN, NNDC, BUK, Keystone Bank Ltd, Employee and so on.


BASIC CONCEPTS/CHARACTERISTICS OF THE SYSTEM

Subsystem: is a secondary/subordinate system which is a smaller unit in the largersystem. For instance, Department of Business Administration and EntrepreneurshipStudies at BUK or Finance Department in ICAN are subsystem.

Boundaries: a border/margins that separate one entity from another. It determineswho is a member of a system and who is not. It separates each subsystem/systemfrom the environment. It can be rigid or flexible in an open system.

Open system: the system that interact with the environment in input-outputprocessing relationship.

Close system: the system that do not interact with the environment.

Synergy: the situation in which the whole will be greater than its individual unitparts. Different departments interaction cooperatively brings double or even triplethe productivity of the organization than the work in isolation. 2+2=5 or 8



Feedback: a special form of input in which the system receives information about its ownperformance/output. It serves as a control to control the result of actions that are return toorganization. It allows organization to correct and analyze its work procedure. Feedback can bepositive or negative.

Positive feedback: is an informational input received about what organization is doing correctlyin order to maintain itself and thrive.

Negative feedback: is an informational input received about what the system is doing that call forthe correction of some deviation from the standard or mistake so as to return to the stable normalposition (Homeostatic).

Homeostasis: is the tendencies for which a system maintains itself relatively stable to achieve aconstant state of balance. It is a maintenance of status quo. Status quo can be efficient, inefficientor seriously problematic.

System relationship: is a dynamic interpersonal connection between two or more individuals orsystem that portray how they think, feel and behave about or toward each other or one another.



Roles: is a socially expected pattern of behavior which is determined by theperson’s or system’s status quo and expectations in a particular group or society. Eachindividual in the system plays significant role that befit him/her depending the sizeand the expectations of the position he/she holds.

Input: is the energy, information or communication flow that is received from othersystem.

Output: is the communication flow of what happen to input after it has gone throughand processed by the system.

Interface: is the point where two or more systems (family, organization etc) comeinto contact with each other/ one another interact and communicate.

System flow: represents all components such as material, information and energywhich enter the system as input and leave the system as output.



Entropy: is a natural tendencies of a system to progress toward disorganization, death ordepletion as to show nothing would survive and last for ever.

Negative Entropy: is a process of which the system would keep progressing toward growthand development to a foreseeable future. It is an opposite of Entropy.

Equi-finality: is a fact which state that in every act or decision, there are many means/waysto do it or achieve it. Always, there are alternatives of doing things in every particularsituation.

Differentiation: is a system’s tendency to move from a simple to complex existence. It is acognitive and emotional differences that always emerge in a formal structure, time orientation,goal orientation and interpersonal orientation among the units of the organization.

Integration: is system process to ensure achievement of unity and coherence of variousorganizational units to have unified efforts toward pursuing organizational goal.


CONTRIBUTION OF SYSTEM THEORY

Contributions:

That the managers should be preoccupied not only of internals but also to look at the external reality of theirorganizations.

That the managers to be capable of ensuring integration of all parts of their organization unifying them tosucceed in achieving the ends.

That an effective coordination is paramount in ensuring harmonious environment to achieve the stated goals oforganization.

That the manager must thick very broad about organizational problem by generating relevant fact to avoidnarrow assessment of the issues.

That the Peaceful harmonious working environment resulting to employees’ happy social relation is translatedinto increases in productivity.

That the employees are encouraged to have initiatives that can allow attainment of organizational goals.

That the different parts and employees’ healthy competition brings about initiatives and innovation.


LIMITATION OF SYSTEM THEORY

Limitations:

That the theory is too general which lacks specificity.

That the explanations of the theory seems to be too abstract that makes itsapplication questionable.

That it talks a lot about input, transaction and output which do not relates howmanagers make decision, face a problem and reality.


DYNAMIC ENGAGEMENT APPROACH

To emphasize the intensity of modern organizational relationships and the intensitytime pressures that govern the relationship

• We call this flurry of this new management theory the dynamic engagementapproach.

• “Dynamic engagement in our “term” In times when theories are changing, it is oftentrue that the last thing that happens is that someone assigns a name to the newtheory.

• We use dynamic engagement to convey the mood of current thinking and debateabout the management and organizations.


THEMES IN MANAGEMENT THEORY (DYNAMIC MANAGEMENT)

Six different theme in management theory are identified due to dynamism of theenvironment and time.

NEW ORGANIZATIONAL ENVIRONMENT

ETHICS AND SOCIAL RESPONSIBILITY

GLOBALIZATION AND MANAGEMENT

INVENTING AND REINVENTING ORGANIZATIONS

CULTURES AND MULTICULTURALISM

QUALITY


NEW ORGANIZATIONAL ENVIRONMENT

The dynamic engagement approach recognizes that an organization environment is not some set of fixed, impersonal forces.

• Rather it is a complex, dynamic, web at people interacting with each other.

• As a result Managers not only pay attention to their own concerns, but also understands What is important for other managers with in the organization and in other organization.

• They interact with theses other managers to create jointly the condition under which these organizations prosper and struggle.

• The theory Of competitive strategy developed by Michael porter focuses on how managers can influence in conditions in an industry when they interacts as Rivals buyers, suppliers, and so on .

• Another variation in on the dynamic engagement approach, most notably argued by Edward and jean garner stead in management for a small planet.

• Place ecological concern at the center of management theory.


ETHICS AND SOCIAL RESPONSIBILITY

Managers using a dynamic engagement approach pay close attention to the values that guide people in their organizations.

• The corporate Culture that embodies those values, and values held by the people outside the organization.

• This idea came in to prominence with the publication in 1982 Of in search of excellence by Thomas peters and waterman.

• From other study of ‘EXCELLENT’ companies. Peters and waterman concluded that “the top performers create a board,uplifting, shared culture, a coherent frame work

• Within which charged up people search for adoptions. Robert Solomon has taken this idea little further, arguing thatmanagers must Exercise moral courage by placing the values of excellence at the top of the Agenda.

• In dynamic engagement, it is not enough for managers to do things in the way they always have, or to be content withmatching their Competitors.

• Continuously striving towards excellence has become an organizational theme of the 1990s.

• Because values, including excellence ,are ethical concepts.

• The dynamic engagement approach moves ethics from the Fringe of management theory to the heart of it.


GLOBALIZATION AND MANAGEMENT

• The Dynamic engagement approach recognizes that the world is at the manager’sdoorstep in 1990s.

• With world financial markets running 24 hours a day, and even the remotestConcerns of the planet only telephone call away, managers facing the twenty firstcentury think of themselves as global citizens.

• A simple comparison illustrates how things have changed.

• If you were to look through the 1940s you would find very little about internationalfactors with good reason in the time and place.


INVENTING AND REINVENTING ORGANIZATIONS

Managers who practice dynamically engagement continually search for ways to unleash thecreative potential of their employees and themselves.

• A growing chorus of theorist is urging managers to rethink the standard organizationstructures to which they have become accustomed.

• Peter is once again at the forefront. His concept of ‘LIBERATION MANAGEMENT’challenges the kind of rigid organization structure that inhibits people creativity.

• Peter’s heroes succeed in spit of that structures.

• Michael hammer and James champ have made their concept of reengineering thecorporation into a bestseller. Hammer and champ urge managers to rethink the very processby which organization function and to be courage’s about replacing process that get in theway of organizational efficiency.


CULTURES AND MULTICULTURALISM

Managers who embrace the dynamic engagement approach recognize that the variousperspective and values that people of different cultural backgrounds bring to theirorganizations are not only a fact life but a significant source of contributions.

• Joanne martin has pioneered the cultural analysis of organizations. she explains howdifference create unprecedented challenges for modern managers.

• Charles Taylor is a prominent proponent for the so called “Communitarian” movement.

• Taylor claims that people can preserve their sense of uniqueness –their authenticity

• Only by valuing what they hold in common in the organization and communities in which theylive.

• Multiculturism is a moving target as more and more people become conscious of theirparticular traditional and ties.


QUALITY

By the dynamic engagement approach, total quality management (TQM) should Be in every manager’s vocabulary.

• All managers should be thinking about how Every organizational process can be conducted to provide product and service .

• That is responsible to tougher and tougher customer and competitive services.

• Strong and lasting relationships can be fruitful by product of quality frame Of mind and action by this view.

• Total quality management adds one more Dynamic dimension to management because quality too is always a movingTarget.

• Dynamic engagement is an example of the changing face of management theory.

• Not everyone we have mentioned in this overview of the dynamic approach called himself or herself as a managementtheorist.

• Some are philosophers and some are political scientists.

• The dynamic approach challenges us to see organization and management as integral part of modern and global society.

• This was not always a tenet of management theory.


MODEL THEORISTS CONTRIBUTORS

Establishing Vision…….. Peters, T. and Waterman, R.

Managing the environment….. Porter, M.E and Korler, P.

Developing culture…… Mintzberg, H.; Hofstede, G.; Moss Kanter, R.; Schein, E.

Devising structures and systems… Mintzberg, H.; Peters, T.; Hammer, M. and Champy, J; Handy, C.; Morgan, G.

Developing/Empowering Employees… Peters, T.; Kotter, J.P

Applying new technology… Hammer, M. and Champy, J.

Managing Change… Moss Kanter, R.; Peters, T.; Kotter, J.P

Finding competitive advantage…… porter, M.

Improving strategic thinking … Hamel, G. and Prahalad, C.; Mintzberg, H.

Developing learning and knowledge in the workplace… Senge, M


THANKS FOR YOUR PRESENCE AND LISTINING

By Habibu Ayuba, BSc; PGDE,

MSc; ACA inview.

08030527135

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