Topic Four

Management
 Introduction
• Define the term management
• Examine the different theories of
management
• Display the major functions of management
Introduction
 What is Management?
• Generic term and subject to many
interpretations.
• A number of different ideas are attributed to
its meaning.
• Some have attributed management as an art,
as science, as magic and as politics.
 Management as an art
• Assumption
• Successful managers are those born with
appropriate intuition, intelligence and
personality which develop through the
practice of leadership.
 Management as Magic
• Assumption
• Successful managers are those who recognize
that nobody really knows what is going on and
who persuade others of their own powers by
calling up the appropriate gods and by
engaging in the expected rituals.
 Management as Politics
• Assumption
• Successful managers are those who can work
out the unwritten laws of life in the
organizational jungle and are able to play the
game so that they win.
 Management as Science
• Assumption
• Successful managers are those who have
learned the appropriate body of knowledge
and have developed an ability to apply
acquired skills and techniques.
Food for Thought!
 Definition
• Management is the process of planning,
organizing, leading and controlling the work of
organization members and using all available
organizational resource to reach stated goals
(Stoner and Freeman, 1992)
 Definition
• Management is the process undertaken by
one or more individuals to coordinate the
activities of others to achieve the results not
achievable by one individual acting alone
(Donnelly et al , 1992)
 Management Vs Administration
• There is often confusion over different
interpretation of the two terms.
• Dictionaries tend to see the words as
synonymous.
 Management Vs Administration
• Administration is the performance of tasks
needed to achieve predetermined goals
(Stoner and Freeman, 1992)
• For our purpose, administration is interpreted
as part of the management process and
concerned with the design and
implementation of systems and procedures to
help meet stated objectives.
 Historical Development of Management
Theories
• Theory can be defined as an explanation of
some phenomenon ( event, experience, fact )
and it consist of principles that state
relationship observed in association with that
phenomenon.
 Development of Management
• The approach to the development of
management thought can be categorized as
follows;
– Classical approach
– Behavioral approach
– Quantitative school
– Systems approach
– Contingency or situational approach
– Recent historical trends
The Classical Management Perspective
• This is divided into
– Scientific management
– Classical organization theory
 Scientific Management
• This is a management approach formulated by
Fredrick W. Taylor and others between 1890
and 1930’s.
• The theory sought to determine scientifically
the best method for performing any task and
for selecting, training and motivating workers.
Scientific Management
 Scientific Management
• Taylor rested his philosophy on four basic
principles;
• The development of a true science of
management, so that the best method of
performing each task could be determined.
• Scientific selection of workers, so that each
worker could be given responsibility for the
task.
 Scientific Management
• Scientific education and development of the
worker
• Intimate friendly cooperation between
management and labor. ( for profit)
 The contribution of the theory
• Emphasis on job design and scientific selection
and development of workers.
• Fostered a rational approach to solving
organizational problems.
• It laid the groundwork for the
professionalization of management
 Limitations
• The theory overlooked the human desire for
job satisfaction and social needs of workers as
a group.
• Emphasis on productivity, profitability led
some managers to exploit both workers and
customers.
 Classical Organization Theory
• An early attempt pioneered by Henri Fayol, to
identify the principles and skills that underlie
effective management
 Other Pioneers
• Max Weber- developed a theory of
bureaucratic management.
• Stressed the need for a strictly defined
hierarchy governed by a clearly refined
regulations and lines by authority.
• The bureaucratic form of organization is one
based on a comprehensive set of rational rules
and guidelines with an emphasis on technical
competence.
Max Weber
 The Contribution
• The theory continues to be practices by
managers e.g. 14 principles
• Helped manages to be aware of the basic
kinds of problems they may face
 Limitation
• Some say it was appropriate for the past,
when organizations were in a relatively stable
and predictable environment
 Behavioral School
• The Human Relations Movement
• Organization Behavior
 Human Relations Movement
• This grew out of the famous series of studies
conducted at the Western Electric Hawthorne
plant near Chicago
• This was an attempt to investigate the
relationship between the level of lighting in
the workplace and worker productivity.
• The leader of the study was Elton Mayo.
Human Relations Movement
 Human Relations Movement
• Mayo and his researchers then came to the
conclusion that other factors were
responsible.
• They found in general the improvement in
productivity was due to social factors like
morale, satisfactory, interrelationship
between members of a work group.
• Hence, recommended for a management style
which takes into account human behavior
 The contribution
• Improved the classical approach which treated
people like machines.
• Researchers spotlighted the importance of
managers style; instead of focusing just on the
individual worker managers began thinking
about group processes and rewards.
 Limitations
• There is a weakness of design, analysis and
interpretation, whether Mayo an his
colleagues conclusions are consistent with
their data is still the subject of debate and
considerable confusion.
• Social environment in the work place is the
only of several interacting factors that
influence productivity.
 Behavioral Science
• Researchers used more sophisticated research
methods.
• E.g. Abraham Maslow
• Douglas McGregor
Abraham Maslow
Maslow’s Hierarchy of Needs
Douglas McGregor
 Theory X and Y
• Theory X- the average human being has an
inherent dislike of work and will avoid it if he
can.
• Because of this, people should be coerced,
controlled, directed and threatened with
punishment in order to achieve the objectives.
• The average human being prefers to be
directed, wishes to avoid responsibilities
 Theory X and Y
• Theory Y- work is natural as play or rest.
• External control and the threat of punishment
are not the only means for bringing about
effort towards organizations objectives.
• Commitment to objectives is a function
towards success
• The average human being learns under proper
conditions, not only accept but seek
responsibility.
Theory X and Y
Theory X and Y
Contribution of the Behavioral Science
• Understanding individual motivation, group
behavior, interpersonal relationship at work and
the importance of work to human beings.
• Helped managers to become much more sensitive
and sophisticated in dealing effectively with
subordinates.
• Offers new insights to important areas like
leadership, conflict resolution, the acquisition and
use of power, organizational change and
communication.
 Limitations
• Seems to be abstract by practicing managers
• Human behavior is still complex, that’s why
theorist differ in their conclusions and
recommendations.
 The Quantitative School
• This approach focuses in quantitative
measurement
• There are three branches of quantitative
school;
– Management science
– Operations management
– Management information system
 Management Science
• Concerned with the development of
sophisticated mathematical and statistical
tools and techniques that a manager can use
primarily to enhance efficiency
 Management Science
• Examples;
– Managers may use management science models
to determine the size a plant. The model may
contain number of equations related to projected
production, volume, constructions per square
foot.
– Flight companies use management science to plan
flight schedules, to set rate structures and
schedule maintenance.
 Operations Management
• Focuses on the application of mathematical
and statistical tools to manage an
organization’s process and systems.
 Operations Management
• It is concerned with various processes and
systems an organization uses to transform
resources into finished goods and services.
• Many aspects of operations management are
related to the control function of management
Management Information System
• System created specifically to store and
provide information to managers
 The Contribution
• The value of the school lies in the portfolio of
tools its provides for management.
• These tools can greatly enhance a managers
decision making, planning and control.
 Limitation
• We must remember that tools cannot replace
human intuition and insight.
 Systems Theory
• An approach which tries to understand how
different elements of an organization function
and operate.
• If focuses on the total work and
interrelationships of structure and behavior
and range of units within an organization.
• It encourages managers to view the
organization both as a whole and as part of
large environment.
 Systems Theory
• The idea is that any part of organization
activities may affect the whole system.
• One of the founders of this approach was the
biologist Ludwing Von Bertallanffy who
developed the outline of General Systems
Theory
 Systems Theory

Inputs Transformation Output

 Contribution
• It is a useful framework for students of
management to conceptualize organizations.
• The model helps managers to see organization
as a whole with interdependent parts- a system
composed of subsystems
• Prevents managers to view their jobs as
isolated elements of the organization.
• Directs managers attention to alternative
inputs and processes for reaching their goals.
 Limitation
• It’s value lies more in the conceptual
framework than its direct applicability to
solving managers/organizational problems
 Contingency Theory
• This argues that the appropriate managerial
action depends on certain major elements of
situations.
• This emerged from a real life experiences of
managers.
• The basic idea of this approach is that no
management technique or theory is
appropriate in all situations.
 Contingency Theory
• In other words, management practices and
styles will differ according to a particular
circumstances of the situation (contingency)
• Contributors;
– Fielder model
– Hersey and Blanchard
 Contingency Theory
• Hersey and Blanchard situational theory
 Contribution
• Offers a clear picture of the realities if the
managers job.
• It is a practical and realistic approach to
management.
• This approach is useful in strategy formulation,
organization design, information decision
systems, leadership and organizational
development.
 Limitation
• Lacks a theoretical foundation making it
almost impossible
• There are no exact principles to act upon, a
manager is likely to be confused.
 Recent Historical Trends
• The historical forces which has influenced
management perspective continue to change
the practice of management today.
• The most striking change affecting
management is international competition.
• This important trend has social, political and
economic consequences.
 Globalization
• This is where the factors of production,
people, money, technology and equipment as
well as social and ecological problems move
increasingly across state boarders.
• Globalization has caused the need for
innovation and new levels of customer
services.
 Globalization
• To cope up with international competition and
globalization managers are trying to adopt the
following;
– Japanese Management practices
– The renewed efforts to achieve excellence in
product and service quality ( managerial
excellence)
– Post-modernism
 Japanese Management Practices
• These have been thought to create more
efficient and more effective companies.
• In 1980s, William Ouchi paid attention to the
success of Japanese organizations.
• He studied the differences between American
and Japanese management practices
• He found out that most American firms
followed a set of business practices which he
called Type A ( for America)
 Japanese Management Practices
• The practices followed by Japanese were
named type J ( for Japanese)
• Type A was characterized as follows;
– short term employment
– Individual decision making
– Individual responsibility
– Specialized career paths
 Japanese Management Practices
• Type J was characterized as follows;
– Life time employment
– Collective responsibility
– non. specialized carrier paths
 Japanese Management Practices
• Ouchi concluded that highly successful
organization in America neither used these
approaches.
• Instead they used a modified approach that
capitalized the strengths of theory J and A. He
came up with theory Z
• Theory Z- this is a management perspective that
incorporates techniques from both Japanese
and American management practices.
 Japanese Management Practices
• Business practices under theory Z includes;
– Long term employment
– Individual responsibility with collective decision
making
– Moderately specialized carrier paths.
 Managerial Excellence
• The idea of management excellence was
popularized in mid 1980’s by Thomas Peter
and Robert Waterman
• These pioneers came up with eight excellence
characteristics that reflects the companies
values and corporate culture.
 Managerial Excellence
• active decision making - 'getting on with it'.
• Close to the customer - learning from the
people served by the business.
• Autonomy and entrepreneurship - fostering
innovation and nurturing 'champions'.
• Productivity through people - treating rank
and file employees as a source of quality.
 Managerial Excellence
• Hands-on, value-driven - management
philosophy that guides everyday practice -
management showing its commitment.
• Stick to the knitting - stay with the business
that you know.
• Simple form, lean staff ( few and competent)
• Simultaneous loose-tight properties –
centralized values and maximum individual
autonomy.
 Managerial Excellence
• Organizations that live by the loose-tight
principle are on the one hand rigidly
controlled, yet at the same time allow (indeed,
insist on) autonomy, entrepreneurship, and
innovation from the rank and file.
 Post Modernism
• In 1990s writers such as Clegg described the
post modern organization in terms of the
– influence of technology,
– structural flexibility, multi skills,
– lack of demarcation and more complex
employment relationships such as sub contracting
and networking.
 Post Modernism
• Post modernism is still a challenge to the
traditional approaches.
• It reminds us of the complexities in our
understanding of management.