MGMT Theory CH 2
MGMT Theory CH 2
MGMT Theory CH 2
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
Fayol's management theory covers concepts in a broad way, so almost any business can apply his theory of
management.
Today the business community considers Fayol's classical management theory as a relevant guide to
productively managing staff.
The management theory of Henri Fayol includes 14 principles of management. From these principles, Fayol
concluded that management should interact with personnel in five basic ways in order to control and plan
production/ Fayol's definition of management roles and actions distinguishes between Five Elements:
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.
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
separated from the ownership of the organization- and income are strictly separated. Offices or resources
career official work for a salary and do not own cannot be inherited, sold, etc.
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
organizational activities. They should be easily office. People are compensated with fixed salaries
understood and leaders should not change them which should match with their qualifications and not
anyhow. Administrative acts and decisions are with benefits such as rights to land, power.
recorded in writing.
Clear career paths
Eg. procedure and policy manuals prescribe
types of behaviour for performing a procedure Employment in the organizations should be seen as a
to policies to be followed. These will also act career for officials. Their work is rewarded by
as guidelines when taking disciplinary actions prospects of career advancement and promotion is
against an employee. granted according to seniority and/or achievement.
After an 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
Protects employees from unfair rulings having made the decision, creating a feeling of
powerlessness amongst employees. There is diffusion
from leaders which gives a greater sense of responsibility and subsequent refusal to make a
decision. Eg To get something done you need 6
of security to the employees. different approvals on 6 different forms and each
refusing to give approval until the other 5 have given
Creates an opportunity for employees to theirs
become specialists within one specific Organizational structure is too inflexible to effect
necessary changes efficiently. It is too difficult to
area, increasing the effectiveness and determine specific individual contribution to
efficiency in each area of the successful patient care outcome. The top bottom
hierarchy does not utilize specialized lower level to
organization. make decisions in their field of specialty
Overspecialization, makes individuals not aware of
Creativity and stability are promoted
larger consequences of their actions. Not allowing
within their respective duties and sub- people to use common sense, as everything must be
as is written by the law. There is rigidity making
tasks decision-making slow or even impossible when
facing some unusual case, and similarly delaying
change and evolution
END OF PART
ONE
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
33
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:
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
to 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