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Topic One;

The Evolution And Development Of Management


Theories And Organization Thoughts

By
Mr.Masumbuko
Focus of the lecture
 Early contributions to management and organization
thinking
 Scientific management approach
 Administrative principles
 Bureaucratic organizations
 Human relations approach
 Systems approach
 Contingency approach
Concept of management
The term management communicate different meanings
depending on the context which it is used.
 Some are defining management as a vital factor of
production;
 Some, as a team of persons join together to accomplish a
certain goal;
 Some describe it as an academic study to be learnt;
 Some as a process with several series of inter-related
elements.
The most popular definition of management is as follows:
“Management is the art of getting things done through
others”
But this definition is quietly narrow because it gives an
impression that managers gets results by treating their
subordinates as tools and it does not point out that a
formal organization structure is required for management.
Management can be defined as the process of planning,
organizing, controlling and directing organization’s resources
in order to achieve the stated goals.
Why studying management?
 The better you can work with people, the more successful
you will be in both your personal and your professional
lives.
 Employers want to hire employees who can participate
in managing the firm.
 Even non managers are being trained to perform
management functions
Salient features of management
Mgt is universal
 Required in any form of group activity
 Fundamental principles of mgt are applicable in all areas of
organized effort
 Managers in all levels perform same functions
Mgt is purposeful
 Exists to achieve specific objectives
 All activities of mgt are goal oriented
 Success of mgt is measured by extent to which desired
objectives are achieved
Mgt is unifying force
 Enhance coordination of individual efforts into a team
 As unifying force, it create the whole that is more than
the sum of individual parts called “synergy” i.e. 2+2=4
 It integrates human and other resources
Mgt is a social process:
why?
 Is done by people, through people and for the people
 Involves interpersonal relationships
 Mgt is development of people not direction of things
Mgt is a continuous process
 Is dynamic and ongoing
Mgt is intangible
 Is unseen/invisible force
 Cannot be seen but its presence can be felt everywhere
inform of results, however managers are visible and
tangible
Mgt is both an art and science
 It has got a systematic body of knowledge (science) as
well as the practical application of such knowledge (art)
As an art,
 It involves the practical application of such knowledge
just the same as in engineering, medicine, accountancy etc
(i.e. it involves specialized skills which make an individual
an expert).
As a science, mgt possesses the following attributes:
 involves a scientific method by which things are
determined through observation of causal relationships
 Involves the testing of hypotheses and generalization for
accuracy
 Has set of principles which are developed out of tested
generalizations
MANAGEMENT THEORIES AND ORGANIZATIONAL
THOUGHTS
The field of management and organization thinking has a rich
history with many early contributors who laid the foundation for
modern management theories and practices. Here are some few
key figures and their contributions:

Frederick Winslow Taylor (1856-1915): Taylor is often


referred to as the "father of scientific management." He was
one of the first to apply scientific methods to management and
focused on optimizing work processes to increase efficiency and
productivity.
Henry Fayol (1841-1925): Fayol was a French mining
engineer and is often credited with developing the first
comprehensive theory of management. He identified five key
functions of management: planning, organizing, commanding,
coordinating, and controlling. Fayol also emphasized the
importance of administrative management, including
activities like forecasting, budgeting, and personnel
management.
Max Weber (1864-1920): Weber was a German sociologist
who is best known for his work on bureaucracy. He believed
that a well-organized bureaucracy was the most efficient
and effective way to manage large organizations. Weber also
emphasized the importance of clear rules, procedures, and
hierarchy in achieving organizational goals.
Mary Parker Follett (1868-1933): Follett was an
American social worker and management consultant who is
known for her work on human relations in management. She
believed that managers should focus on building
cooperative relationships among workers and emphasized
the importance of communication and conflict resolution.
These early contributors, among others, helped to shape the
field of management and organization thinking and laid the
foundation for many of the management theories and
practices.
Scientific management approach;

Scientific management, also known as Taylorism, is a


management approach developed by Frederick Winslow Taylor
in the late 19th century. The approach is based on the idea of
applying scientific principles and methods to the management
of work processes in order to improve efficiency and
productivity.
The key principles of scientific management include
Scientific study of work: This involves breaking down work processes
into their individual tasks and analyzing each task to determine the
most efficient way to perform it.
Scientific selection of workers: This involves selecting workers
based on their ability to perform the tasks identified through
scientific study.
Training and development: This involves providing workers
with the necessary training and development to perform
their tasks efficiently
Standardization of work: This involves establishing standard
procedures for performing tasks, so that each worker
performs the task in the same way, minimizing variation and
increasing efficiency.
Criticism of Taylor
 He ignored human side of organization, he viewed workers
like machine that could be motivated to work hard through
economic incentives.
Administrative Management Theory
 The main focus of this theory is on the study of how to
create an organizational structure that leads to high
efficiency and effectiveness.
 This was initiated by Henry Fayol (1841-1925), He was the
contemporary of Taylor. He analyzed 14 principles of
management which were:-
Division of labour
 Specialization leads to greater efficiency
Authority and responsibility
 Managers have the authority to get things done
Discipline
 Members of the organization need to respect the rules
and regulations that govern it
Unity and command
 Workers should have only one boss to avoid conflicting
and/or confusing instructions;
Unity of direction
 Stated plan of action/goal - only one manager should be
responsible for an employee’s behavior
Subordination of individual interest to a common good.
 The interests of individual employees should not take
precedence over the interests of the entire organization
Remuneration of personnel.
 Pay for work done should be fair to both the employee and
the employer
Centralization
 Managers should retain the final responsibility
Scalar chain
 A single uninterrupted line of authority should run rank to
rank from top management to the lowest level position in
the company
Order
 Materials and people need to be in the right place at the
right time
Equity.
 Managers should be both friendly and fair to their
subordinates
Stability of tenure of personnel
 (long term employment) - stability and tenure should be
enhanced and high staff turnover should be avoided
Initiative
 Subordinates should be given the freedom to formulate
and carry out their own plans;
Esprit de corps
 (comradeship, and shared enthusiasm)
Promoting team spirit gives the organization a sense of unity
and foster devotion to organization
Criticism of Fayol’s administrative mgt theory
 The theory ignores the dynamic state of management- It
assumes all organizations can be managed by the same
rules/ principles
Bureaucratic organizations

Max Weber, a German sociologist, was one of the first scholars


to study bureaucracy and identified several key characteristics,
including a clear chain of command, division of labor,
hierarchical structure, and rules and regulations. Weber argued
that bureaucracy was the most rational form of organization
because it allowed for the efficient and predictable
implementation of tasks and objectives.
Written rules

System of task A Bureaucracy Hierarchy of


relationships should have; authority

Fair evaluation
and reward
Key points of Bureaucracy
Position duties are clearly identified. People should
know what is expected of them.
Lines of authority should be clearly identified.
Workers know who reports to who.
Rules, Standard Operating Procedures (SOPs), &
Norms used to determine how the firm operates.
Sometimes, these lead to “red-tape” and other problems
Career system: Bureaucracies have a structured career
system in which employees are promoted based on their
qualifications and performance.
Advantages of bureaucracy
 Specification
 Rationality (objective in decision making)
 Predictability (ensure stability of an organization)
Disadvantages
 Rigidity- rigid rules and regulations discourages initiative
and creativity
 Empire building (Prestige)
 Delays (waiting time)
Human Relation Theory
 This theory emphasize that organization is a social system
and the human factor is much important.
 Elton Mayo is the father of Human relation thoughts, he
conducted experiment called Hawthorne Experiments.
 Investigated informal groupings, informal relationships,
patterns of communication and pattern of relationships.
 These were the first people to recognize the importance
of a man(person) in the organization
 He experimented as how human can lead to higher
performance of an organization basing on his/her
interrelation.
The results were:-
Social system
 Organization is a social system composed of interacting
parts, it defines individual roles and establishes norms
that may differ from those of formal organization.
Social environment
 Social environment of a job affects the workers and is
also affected.
Informal organization
 Informal organization does exist within the framework of
formal organization and it affects and is affected by the
formal organization
Group dynamics
 Workers often do not act or react as individual but as
members of a group.
Behavioral theory
The behavioral theory stresses the importance of:
 group dynamics,
 human motivations,
 The manager’s leadership style,
 It also emphasizes the employee’s social and economic
needs
The behavioral theory also emphasizes on the influence of
the organization's social setting , and the quantity and
quality of work produced
The behavioral theory focuses on two competences:
 communication, and
 Teamwork
 Behavioral theory is the study of how manager should
behave to motivate employees and encourage them to
perform at high level and be committed to the
achievement of organizational goals.
 Encourage self-direction and control instead of imposing
control.
 They recognized that organizational conflicts and change
are inevitable.
 And they suggest that different people react differently
to the same situation.
Some of the more prominent theorists in this field included:
 Elton Mayo (1880 – 1949),
 Mary Parker Follett (1868 – 1933),
 Chester Barnard (1886 – 1961),
 Abraham Maslow (1908 – 1970),
 Douglas McGregor (1906 – 1964),
 Rensis Likert (1903 – 1981),
 Frederick Herzberg (1923 – 2000),
 David McClelland (1917 – 1998),
System Approaches
System
 A system is an assemblage or combination of things or
parts forming a complex or unitary whole.
Open system
 Under the systems approach to management, the
organization is seen as an open system that is influenced
by its internal and external environmental factors.
 The organization then, in turn, influences the same
internal and external environmental; as a result, a dynamic
relationship is created
Closed system
Closed systems do not interact with their external
environments.
 The systems approach to management was viewed as “a
way of visualizing internal and external environmental
factors as an integrated whole.”
 Under system approach, the organization can be seen as
either an open system where it interacts with its external
environment or a closed system where it has no interaction
with its external environment.
 A systems approach to management recognizes that
organizations are open systems that interact with and are
dependent on their environment.
 In a continual process, they obtain necessary inputs,
transform the inputs into finished goods and services, and
deliver their outputs to the market.
 The system model shows that companies are open to
environmental influence
 Factors such as political instability, economic conditions,
consumer tastes, demographics, legal requirements, and
the physical environment all can affect an organization.
 Successful organizations must be able to detect,
understand, and respond effectively to changes in the
external environment.
Contingency Approaches
 Contingency approach theorizes that different situations
and conditions require different management approaches
 Proponents believe that there is no one best way to
manage; the best way depends on the specific
circumstances.
 In contingency management, every situation is considered
unique. Managers must adapt theory and practice to match
the situation by identifying the key contingencies, or
factors, in the situation.
 The type of employee is also a contingency factor—
incentive systems that work for manual laborers do not
work for knowledge workers.
 Effective managers need to be able to interpret the
contingencies of a situation to determine which approach
would be more effective
Current developments in Management Theories and
Practices
 In the twenty-first century, organizations face many new
challenges.
 Some people would argue that management practices and
theories are no longer relevant due to society and
economic changes.
 But the truth is that, management has become more
important than ever.
 Almost everything we do today as individuals or
organizations requires us to interact with large-scale
institutions
The question is “How management theory and practice
evolved to manage this new organizational and business
environment?”
Forces shaping management today
 The pace of change,
 Technology,
 Globalization,
 Social expectations
 No “grand theories” have emerged to address the
mentioned new challenges.
 Managers now focus on specific and general aspects.
 Effective managers need to know what tool to use and how
to use it in different circumstances
END OF TOPIC ONE
Thank you for listening

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