4.2 management theories 2


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4.2 management theories 2

  1. 1. Makerere University Business School Strategic Management Course MANAGEMENT THEORIES - 2
  2. 2. Human Relations and social psychological schools • These theorists were academics and social scientists. • They were concerned with the human factor at work. • This was contrary to the classical theorists, who concentrated on work itself but not the worker doing the job. • They dealt with human motivation, group relationship and leadership. • A few motivation theories are mentioned here after – broad topics (group behaviour and leadership have been left out of this course).
  3. 3. Early motivation theorists • Human motivation – Processes by which people seek to satisfy basic drives, perceived needs and personal goals, which trigger human behaviour. • Early theorists concentrated on motivation contents (e.g drives, needs) – content theories • Didn’t focus on process
  4. 4. Motivation basic model Motivation has the following components Physical / Emotional Behaviour Satisfaction / Frustration OutcomeResponseStimulus
  5. 5. Elton Mayo • Was an Australian psychologist • A researcher in occupational aspects, – E.g fatigue, accidents, labour turn-over • Conducted studies for Western Electrics, Chicago, USA (Hawthorne studies) • Studies were on the worker rather than work • Employees were subjected varying physical conditions and they didn’t affect productivity • Focus was shifted to social aspects and they related to behaviour and productivity
  6. 6. Mayo’s conclusion • “Man is a social animal” • Individual workers cannot be treated in isolation • Belonging to a group is more important than monetary incentives and good physical conditions • Informal groups strongly influence workers’ behaviour
  7. 7. Abraham Maslow (1950 / 60s) • Physiological needs: Need for food, sleep, sex, e.t.c. • Safety needs: Stable environment relatively free from threats • Love needs: Group status, affectionate relations with others • Esteem needs:Self respect, self-confidence • Self-actualisation: Self-fulfilment
  8. 8. Maslow’s needs - continued • That people tended to satisfy the above needs systematically • Main criticism on Maslow’s theory – – Systematic movement up the hierarchy does not seem to happen practically. • Maslow’s theory, however, formed a framework to analyse a variety of needs
  9. 9. D McGregor – Theory X and Theory Y • Managers’ assumptions about employees Theory X • That employees are lazy, require coercion and control • Avoid responsibility, seek security • Similar to a rational economic man suggested by Schein & Adam Smith) • Strongly related to scientific management
  10. 10. Theory Y • Opposite of theory X • That people like work • They work as naturally as resting or playing • They don’t have to be controlled coerced – If committed to objectives • They don’t only accept but seek responsibilities • Similar to Maslow’s higher level needs and Schein’s self-actualising man • A blend of theory X & Y is more representative of real life.
  11. 11. Later Motivation theories Theory Z – The Japanese approach W. Ouchi • American exponent of Japanese approach, with • Attempts for western firms to adapt Japanese style • Based on success of Japanese manufacturing
  12. 12. Japanese success • Efficient use of resources, especially people Strong personnel-related factors • Mutual trust – employees and management • Employees’ royalty to organisations • Non-specialised career paths – job rotation • Shared decision making • Long term performance appraisal • Collective responsibility
  13. 13. Remarks on the approach • Some Japanese features are not transferable to west due to cultural issues • The west needs to develop better the employee factor, on top of technology • Japanese engineering has “Taylorism” leading to standard production controls but with improved HR aspects. Criticism • Slow decision making • Imprisoning lifetime employment
  14. 14. SYSTEMS & CONTINGENCY APPROACHES Organisations as systems • Organisations are set up as open social systems. • A system is a collection of inter-related parts, which form some whole. • Examples of systems are: the human body, a communication network, and a social system. • A system can be open or closed. • An open system obtains inputs from and discharges outputs to its environment. • A closed system is self-supporting • Social systems, including all organisations as mentioned above, are open systems.
  15. 15. Characteristics of open systems • They receive inputs or energy from the environment • They convert inputs into outputs • They discharge outputs into the environment • They are cyclic in nature. • Exercise negative negative entropy. • A stable system is self-adjusting to a steady state. This is called negative feedback. • Equifinality. Open systems do not have to achieve their objectives in using one particular method.
  16. 16. Key variables in an organisation as a system • People – as individuals or groups • Technology • Organisation structures and • Environment
  17. 17. People Materials e.t.c Information Finance Production & Marketing activities Planning, organising & control mechanisms Research & Development e.t.c Products Services Ideas Waste INPUTS CONVERSION OUTPUTS Feedback of information & results Model of an organisation as an open system
  18. 18. Systems - continued • A system consists of subsystems • An organisation’s boundaries, which are often invisible, are defined strategically by stating the scope of its activities. • Subsystems also have boundaries, which are called interfaces. • Some employees work at external boundaries in such activities as: – Capital raising, Purchasing and Customer interaction • Internal boundary employees manage interfaces • Some sub-systems tend to be relatively self- contained – closed.
  19. 19. Contingency approaches • Contingency builds on systems approach • It recognises organisations to consist of interdependent components: – External environment, Technology and Human skills and motivation • Contingency approach suggests that organisations should look for the most appropriate combination of structural design in a given environment. • Initially suggested by two American researchers at Harvard called Lawrence and Lorsch (1967) and several others shortly followed.
  20. 20. Modern approach to management • Current approaches to management are more of management currently in practice than mere mare management theory. • Modern management background stems from – Advances in technology, Increased competition and expanding markets, especially from Asia, – Increasing consumer expectations – Improvements in communication, – General globalisation making the world more inter- connected than ever before.
  21. 21. Strategic management approach • Organisations to clearly state a vision and mission, • Formulation of organisation objectives • External environment analysis • Organisation (internal) analysis • Strategic choice and strategic implementation • Managing change in and around the organisation • Developing and utilising new technology • Developing and utilising skilled labour • Creation of flexible structures but with relative stability