Traditional and

Contemporary Issues
and Challenges

Slide content created by Joseph B. Mosca, Monmouth University.

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 Traditional and Contemporary Issues
and Challenges
The role of theory and history in management:
– Theory is a conceptual framework for organizing
knowledge and providing a blueprint for action.
– History: Understanding the historical context of
management provides a sense of heritage and can
help managers avoid the mistakes of others.

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 The Practice of Management Can Be
Traced Back Thousands of Years
• The Egyptians used management functions of
planning, organizing, and controlling when
they constructed the pyramids.
• Observe the next slide Figure 2.1, it will
illustrate a few of the most important
management breakthroughs and practices
over the last 4000 years:

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Figure 2.1: Management in Antiquity

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 The Three Traditional Management
Perspectives
The Classical Management
Perspective:
– Ideas of the early 20th century
theorists and managers
converged with the emergence
and evolution of large-scale
business and management
practice.
– This perspective actually includes
two different viewpoints:
scientific management and
administrative management.

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 Scientific Management
• Concerned with
improving the
performance of
individual workers.
• Frederick W. Taylor
developed this
system, which he
believed would lead to
a more efficient and
productive work force.

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 Steps in Scientific Management
1. Develop a science for each element of the job.
2. Scientifically select employees and then train them
to do the job.
3. Supervise employees to make sure they follow
prescribed methods.
4. Continue to plan the work, but use workers to get
the work done. (see Figure 2.2)

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Figure 2.2: Steps in Scientific
Management

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 Other contributors of scientific
management period
• Frank and lillian Gilbreath……Motion study.
• Henry L Gantt……Gantt Chart

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 Administrative Management
• Whereas scientific
management deals with the
jobs of individual employees,
administrative management
focuses on managing the total
organization.
• Administrative management
laid the foundation for later
development in management
theory.
• It is more appropriate for stable
and simple organizations than
for today’s dynamic and
complex organizations.
• (see Table 2.1)

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Henri Fayol’s 14 Principles Of
Management

Slide content created by Joseph B. Mosca, Monmouth University.

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 1. Division Of Work
Specialization allows the individual to build
up experience, and to continuously improve
his skills. Thereby he can be more
productive.
 2. Parity of Authority and
Responsibility
The right to issue commands, along with
which must go the balanced responsibility
for its function.
 3. Discipline
Employees must obey, but this is two-sided:
employees will only obey orders if
management play their part by providing
good leadership.
 4. Unity Of Command
Each worker should have only one boss with
no other conflicting lines of command.
 5. Unity of Direction
People engaged in the same kind of activities
must have the same objectives in a single
plan. This is essential to ensure unity and
coordination in the enterprise. Unity of
command does not exist without unity of
direction but does not necessarily flows
from it.
 6. Subordination of individual
interests to the general interest

Management must see that the goals of the

firms are always paramount. The interests of
one person should not take priority over the
interests of the organization as a whole.
 7. Remuneration
Payment is an important motivator although
by analyzing a number of possibilities, Fayol
points out that there is no such thing as a
perfect system
8. Centralization (Or Decentralization)
This is a matter of degree depending on the
condition of the business and the quality of
its personnel.
 9. Scalar chain (Line of Authority)
A hierarchy is necessary for unity of direction.
But lateral communication is also
fundamental, as long as superiors know that
such communication is taking place. Scalar
chain refers to the number of levels in the
hierarchy from the ultimate authority to the
lowest level in the organization. It should not
be over-stretched and consist of too-many
levels
 10. Order
Both material order and social order are
necessary. The former minimizes lost time and
useless handling of materials. The latter is
achieved through organization and selection.
 11. Equity
In running a business a ‘combination of
kindliness and justice’ is needed. Treating
employees well is important to achieve
equity.
12. Stability of Tenure of Personnel
Employees work better if job security and
career progress are assured to them. An
insecure tenure and a high rate of employee
turnover will affect the organization
adversely.
 13. Initiative
Allowing all personnel to show their
initiative in some way is a source of strength
for the organization. Even though it may well
involve a sacrifice of ‘personal vanity’ on the
part of many managers.
 14. Esprit de Corps
Management must foster the morale of its
employees. He further suggests that: “real
talent is needed to coordinate effort,
encourage keenness, use each person’s
abilities, and reward each one’s merit without
arousing possible jealousies and disturbing
harmonious relations.”
The Behavioral Management Perspective
• Unlike the classical
management perspective,
the behavioral
management perspective
placed more emphasis on
individual attitudes and
behaviors and on group
processes and recognized
the importance of
behavioral processes in
the work place.

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• Hugo Munsterberg- father of industrial psychology
• Mary Parker Follett- appreciated the need to
understand the role of behavior in organizations.
• Elton Mayo and his associates- Hawthorne Studies
conducted at Western Electric’s Hawthorne plant
between 1927-1932
– Illumination manipulation experiment
– A piecework incentive plan
– Human behavior at work is much more important.
Individual and social processes play major role in
shaping worker attitudes and behavior
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The Human Relations Movement
• Proposed that workers
respond primarily to
the social context of
the workplace,
including social
conditioning, group
norms, and
interpersonal
dynamics.

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• Abraham Maslow’s ‘Hierarchy of needs
theory’
• Douglas McGregor’s theory X and Y.

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Behavioral Theory on How Employees
Behave Toward Work
Theory X Assumptions:
– Employees dislike work.
– Employees are
irresponsible.
– Employees lack
ambition.
– Employees resist change.

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Another Theory on How Employees
Behave
Theory Y Assumptions:
– Employees are willing to
work.
– Employees are self
directed.
– They accept
responsibility.
– Employees are creative.
– They are self-controlled.

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 Organizational Behavior
• Human behavior in organizations is complex.
• The field of organizational behavior draws
from a broad, interdisciplinary base of
psychology, sociology, anthropology,
economics, and medicine.

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 The Quantitative Management
Perspective
Management Science vs. Quantitative
Management:
– Management Science focuses specifically on the
development of mathematical models.
– Quantitative Management applies quantitative
techniques to management.
– (see Table 2.4)

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 Operations Management
• Operations
management
techniques are
generally concerned
with helping the
organization produce
products or services
more efficiently.

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 The Systems Perspective
of Organizations
• System: An interrelated set of elements
functioning as a whole.
• Open System: A system that interact with its
environment.
• Closed System: A system that does not
interact with its environment.
• Subsystems: A system with another system

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• Synergy: two or more
subsystems working together
may often be more successful
then working alone.

• Entropy: a normal process

leading to system decline.

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 Transformation Outputs into
Inputs from the
Process: the environment:
environment:
technology, products/services,
material inputs,
operating systems, profits/losses,
human inputs,
administrative employee behaviors,
financial inputs, and
systems, and and information
information inputs.
control systems outputs

Feedback

Fig: The Systems Perspective of Organizations

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 The Contingency Perspective
• Universal perspective: tempting to identify
one best way.
• Contingency perspective: depending on
elements in that situation.

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 An Integrative Framework of
Management Perspectives
Systems Approach Contingency Perspective

Recognition of internal Recognition of the situational

interdependencies. nature of management.
Recognition of environmental Response to particular
influences. characteristics of situation.
Classical Behavioral Quantitative
Management Management Management
Perspectives: Perspectives: Perspective:
Methods for enhancing Insights for motivating Techniques for
efficiency and performance and improving decision
facilitating planning, understanding individual making, resource
organizing, and behavior, groups and allocation, and
controlling teams, and leadership operations

 Effective and efficient management

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 Integrating Perspectives for
Managers
• A complete understanding of management
requires an appreciation of, classical,
behavioral, and quantitative approaches.
• The systems and contingency perspectives can
help managers integrate the three approaches
and enlarge understanding of all three.
• (see Figure 2.5)

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 Figure 2.5: The Emergence of
Modern Management Perspectives

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