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Traditional and
Contemporary
Issues and
Challenges

.
 Agenda Of The Week
• Traditional and contemporary issues and
challenges
• The Classical Management Perspective
 Scientific Management
 Administrative Management
 Henri Fayol 14 principles of Management
• Behavioral Management Perspective
• Theory X, Theory Y
• Quantitative Management Perspective
• Types of System
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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.
– With theories we explain why and how things
occur.
– History: Study of past events, particularly in
human affairs. 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.

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 The Three Traditional Management
Perspectives
The Classical Management
Perspective:

–This perspective actually includes

two different viewpoints:
–scientific management
–administrative management.

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 Scientific Management

• Concerned with
improving the
performance of
individual workers.
• Frederick 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.

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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 Administrative Management

• Focuses on managing the

total organization and on
ways to make it more
efficient and effective.

• Administrative management
theorists were Henri Fayol
and Max Weber.

• Henri Foyol 14 Management

Principles.

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 Henri Fayol’14 Principles

 Division of work
 Balancing Authority and Responsibility
 Discipline
 Unity of Command
 Unity of Direction
 Subordination of Individual interests to
the General Interest
 Remuneration
Copyright © Houghton Mifflin Company. All rights reserved. 2 - 10
 • Centralization
• Scalar Chain
• Order
• Equity
• Stability of Tenure Personnel
• Initiative
• Esprit De Corps

Copyright © Houghton Mifflin Company. All rights reserved. 2 - 11

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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The Behavioral Management Perspective

• Focuses on Individual attitudes and

behaviors
• The Hawthorne Studies were conducted
to study the individual behavior on work
place.
• This study conducted near Chicago at
Western Electric`s Hawthorne Plant
between 1927 and 1932.

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• There were two groups of workers working in the
plant
– Experimental Group
– Control Group
• The Study involved manipulating light for one
group of workers and comparing their productivity
of an other group whose light was not changed.
(controlled group).

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• Surprisingly, when light was increased for the
experimental group, productivity went up in both
groups and productivity continued to increase in
both groups, even when the lightening for the
experimental group was decreased. Not until
the lightning was reduced to the level of Moon
Light did productivity begun to decline.
• The Human Element e.g. Supervision or special
attention is very important in the work place.

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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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 Framework of
Management Perspectives

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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 System

• A system is the framework of policies,

processes and procedures used by an
organization to ensure that it can fulfill
all the tasks required to achieve its
objectives.

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 Types of Systems

– Open System: an organizational system that

interacts with its environment.

– Closed System: an organizational system that

does not interact with its environment.

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