of management slide 1 ldp 601: fundamentals...

Dr. Harriet Kidombo, UON/SCDE | 1

Slide 1

LDP 601: FUNDAMENTALS OF MANAGEMENT

MANAGEMENT THEORY

Lecture 2

2/25/2013 1Dr. Harriet Kidombo, University of

Nairobi/CEES/SCDE/DEMS

Slide 2 Lecture outline

Introduction

Lecture objectives

Classical scientific management

Bureaucratic approach

Neo-classical approach to management

Summary



Slide 3 Lecture objectives

Describe the principles of scientific management as advanced by Fredrick Taylor

Discuss the rational-economic view in relation to scientific approach to management

Discuss the principles of management as advanced by Henri Fayol

Describe the human relations approach to management




Slide 4 Approaches to Management

Ancient practices

Classical approach

Neo-classical approach



Slide 5

Ancient practicesEgyptian, Greek,

Roman and Chinese

civilizationsThe writings of Sun Tzu on the

‘Art of War’,

Biblical Moses

Roman EmpireCatholic Church

Socrates, Nichollo

Machiavelli



Slide 6 Classical Management Theory

Scientific management

Classical Organization Theory




Slide 7 Scientific management

• The Classical Approach to management was the first significant effort to develop a body of management thought.

– Scientific Management and

– Classical Organization Theory.

• Is the first concentrated effort to study management.

• Concerned with the management of work and with the workers.



Slide 8 Scientific management

The application of scientific method of study, analysis and problem solving in

organizations.



Slide 9 The Thoughts of Frederick Taylor

(1856-1917)Deliberate restriction of production

by workers

Lack of work rationalization

Formation of labour unions to press for better wages.

Initiative of working methods left to workers




Slide 10

Taylors Principles of Scientific Management

Each worker should have a clearly defined daily task.

Establish standard conditions of performance

High payment for successful completion of tasks

The scientific selection, education and development of workers.

Friendly, close cooperation between management and workers.

Managers should take more supervisory responsibility,



Slide 11

In a nutshell…..

planning and greater control by managers.

Adoption of scientific approach to managing

Conflict about how to divide profits was retrogressive and unproductive.

Wages should be scientifically determined



Slide 12 Limitations

Ideas increased productivity but led to layoffs

Assumed people are motivated only by material gains.

Overlooked the social needs of workers.

People have needs other than money e.g. recognition and acceptance




Slide 13 Limitations……

Overlooked the human desire for job satisfaction

Workers went on strike over job conditions rather than salary.

human beings are not rational creatures



Slide 14 Benefits of the Scientific Management Thoughts

Its rational approach to organization of work enabled tasks to be measured with

accuracy.

Tasks measurement and processes provided useful information on which to base improvement on working methods.

Improvement of working methods brought enormous increases in

productivity.



Slide 15 Benefits of the Scientific Management Thoughts……

Enabled employees to be paid by results

Stimulated management into adopting a more positive role in

leadership

Contributed to major improvements in physical working conditions

It provided the foundations on which modern work study and other

quantitative techniques are based.




Slide 16 Disadvantages of the Scientific Management



Slide 17 Disadvantages of the Scientific Management……..



Slide 18 ADMINISTRATIVE THEORY

Henry Fayol (1841-1925).-the father of classical organization theory

Max Weber (1864-1920) –Bureaucratic approach




Slide 19 HENRI FAYOL (1841-1925).

He defined management in terms of:

Technical activities - production.

Commercial Activities

Financial Activities

Security Activities

Directing



Slide 20 Fayol‘s14 principles of management.

Division of work

Authority and Responsibility

Discipline

Unity of command



Slide 21 Fayol‘s14 principles of management...

Unity of Direction

Subordination of the individual interest to general interest

Remuneration

Centralization

Scalar chain or “Chain of Superiors”




Slide 22 Fayol‘s 14 principles of management....

Order

Equity

Stability or Tenure of Personnel

Initiative

Espirit de corps - “In union there is strength”.



Slide 23 BUREACRATIC APPROACH TO MANAGEMENT

• Attributed to Max Weber (1864-1920)

• German sociologist and an academic - not a practicing manager

• He lived in the period of history as the early pioneers of management thought such as Fredrick Taylor and Henri Fayol.



Slide 24 Weber’s main ideas

• Why do people obey those in authority?

• Published “the theory of social and economic organization”

• Used the term bureaucracy to describe the structure of organizations.




Slide 25 Bureaucracy

• Red tape – an excess of paper work and rules leading to gross inefficieny

• Officialdom – all the apparatus of local and central government

• An organizational form made up of rules and hierarchy of authority.



Slide 26 Characteristics of

Bureaucracies

• Specialization

– labour division

– Ability is the condition for employment

• Rational

– hierarchy of authority

– duties and measures of performance are established

– positions are well defined

– formalized in writing.



Slide 27 Characteristics of Bureaucracies

• Professional

– follows formal impersonal procedures of the organization.

– Organizational structures are well defined

• Impersonal

– authority is impersonal

– amount of authority corresponds with rank of office




Slide 28

Characteristics of Bureaucracies• Autonomous

– expertise and technical competence are recognized

• Stable

– stable careers,

– regular salary,

– promotion and pensions.



Slide 29 In a nutshell

• A bureaucratic organization has:

• a functional structure

• clear lines of authority

• obedience is owed to established rules and regulations.



Slide 30 In a nutshell……

• hierarchical levels of authority

• ordered superior-subordinate relationships.

• terms of employment are based on rank of office rather than amount of work (performance)

• common in large complex organizations which depend on specialization, rules and procedures for efficiency




Slide 31 Weaknesses

• Works well only in stable environments

• highly predictable, recurrent, routine and familiar.

• Rules become so important that they become an obstacle to efficiency

• Decision making processes are programmed hence discouraging search for other alternatives (is rigid)



Slide 32 Weaknesses……

• Rigid behaviour damages relations with clients or customers

Unable to get tailor made services

have to accept the standard provided within the rules.

• Difficult to change and adapt to new circumstances



Slide 33 Activity

• What common features do you see between Fayol’s principles of management and Weber’s description of bureaucracy?

• Discuss the advantages and disadvantages of bureaucratic structures. Why do you think such structures may not be suitable for organizations that operate in highly unstable environments?

• Discuss the situations in which bureaucratic systems are desirable




Slide 34 Systems approach

• This concept was proposed by Ludwig von Bertalanffy in 1968. It is based on two assumptions:

• ……to fully understand the functions of an entity, the entity must be viewed as a system whose parts are interdependent.



Slide 35 Systems approach….

• All phenomena can be viewed as a web of relationships among elements.

• All systems have common patterns, behaviours, and properties that can be understood and used to develop greater insight into the behaviour of complex phenomena.



Slide 36

• identify the various components that work together to make up the whole organization.




Slide 37 Characteristics of systems approach

• A system is greater than the sum of its parts.

• Each sub-system is a self-contained unit, it is part of a wider and higher order.

• A system and its environment are highly interrelated.

• A highly complex system is broken into subsystems



Slide 38

• A system is a dynamic network of interconnecting elements. A change in only one of the elements produces change in all the others.

• When subsystems are arranged in a series, the output of one is the input for another; therefore, process alterations in one require alterations in other subsystems.

• All systems tend toward equilibrium, which is a balance of various forces within and outside of a system.



Slide 39

• Systems have boundaries which can change.

• To be viable, a system must be strongly goal-directed, governed by feedback, and have the ability to adapt to changing circumstances.

• Emergence: arising of characteristics from the interactions of the parts of the system

• Synergy (combined effort is greater than sum of parts)

• Interdependence (dependent on each other)Interconnections within the organization and between the organization




Slide 40



Slide 41 Contingency approach

• evolved during the 1960s

• challenged the classic models designed by management theorists

• also known as situational approach,

• implies no one universally applicable set of management principles (rules)

• Organizations are

individually different,

face different situations (contingency variables)

require different ways of managing. 2/25/2013 41

Dr. Harriet Kidombo, University of


Slide 42 Contingency approach…….

• assumes no universal answer to as situations vary and change over time.

• the right thing to do depends on a complex variety of critical environmental and internal contingencies.




Slide 43 NEO-CLASSICAL APPROACH TO

MANAGEMENT -Human Relations School of Thought

• Scientific management is concerned with the mechanics and structure of organization

• Linked to emergence of industrial psychology in 1913



Slide 44 The works of Elton Mayo (1880 –

1949).• Experiments at the Hawthorne Plant of Western Electric

• Findings:

– Individual workers cannot be treated in isolation but must be seen as members of a group.

– The need to belong to a group and have status within it is more important than monetary incentives or good working conditions.



Slide 45 The works of Elton Mayo (1880 – 1949)…

– Informal groups at work exercise a strong influence over the behaviour of workers.

– Supervisors need to be aware of these social needs.




Slide 46 In a nutshell……

• The studies proved that interpersonal and group values are superior to managerial and individual values.

• Managers who do not have the enthusiastic support of the groups they supervise will be unable to motivate individual members to a significant degree.



Slide 47 Assumptions about people.

• Assumptions made about people help in understanding the human factor in organizations

• The major theories of motivation and leadership were developed after the Hawthorne studies of Elton Mayo.



Slide 48 Edgar Schein (1965)

• Rational – Economic Man

• Social Man

• Self-actualizing man

• Complex Man




Slide 49 Douglas McGregor (1967)

– Theory X

• The average person has an inherent dislike for work and will avoid it if possible.

• Because of dislike for work, people must be coerced, controlled, directed and threatened with punishment to get them to work.

• The average human being prefers to be directed, wishes to avoid responsibility, has limited ambition and wants security above all else.



Slide 50 Douglas McGregor (1967)…

– Theory Y

• The use of physical and mental effort in work is as natural as play or rest.

• People will exercise self-direction and self control in the service of objectives to which they are committed.

• The average human being learns under proper conditions not only to accept but to seek responsibility.



Slide 51 Douglas McGregor (1967)…

• The capacity to exercise a relatively high degree of imagination, ingenuity and creativity in the solution of organizational problems is widely and not narrowly distributed.

• Under conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized.




Slide 52 Conclusions

• Attitudes and behaviour towards other people are a reflection of the assumptions we make about people.

• McGregor’s theory X corresponds closely to Schein’s rational-economic man, while theory Y corresponds to self-actualizing man.

• McGregor’s assumptions have found wide application in issues of leadership than in general management.



Slide 53 Conclusions…….

• Based on these assumptions, managers should consider seriously practices such as flexibility in working time, job enrichment, performance appraisal, participation etc.

• In real life, a blend of the two assumptions can be observed.



Slide 54 end

• Thank you



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