Explore the noteworthy schools of thought on management.

1. Management Theories
making management cool again!

2. This is what’s lined up:
• Classical school of management
• Bureaucratic school – Max weber
• Scientific school – Fredrick Taylor
• Administrative:
• Henry Fayol
• Chester Barnard
• Mary Parker Follet
• Behaviorist or Human Relations school of management
• Elton Mayo – Hawthorne experiments
• Douglas McGregor – Theory X and Y
• Abraham Maslow – Hierarchy of needs
• Contemporary school of management
• Systems Approach – organizational subsystems
• Contingency theory – situational
• Japanese school – Gemba Kaizen: Continuous Improvement

3. Classical School of Management
This school viewed organizational goals as superior to employees
individual needs.
And perhaps this is why it is outdated, or better put deprecated.
• Bureaucratic school – Max weber
• Scientific school – Fredrick Taylor
• Administrative:
• Henry Fayol
• Chester Bernard
• Mary Parker Follet

4. Bureaucratic school – Max Weber
Max Weber wasn’t happy with many of the organizations of the times which
were owned and mismanaged by rich families. In summary he thought:
1. Organizations need to have a well defined hierarchy.
2. Rules; and they should be followed.
3. Recruitment should be based on technical competence not on bias.
4. Impersonal relationship between managers and employees – you don’t
hate someone because he fired or corrected you; there should be
nothing personal.
5. Division of labour
6. Clear rights and duties of personnel
Just read and understand don’t try cramming these points!

5. Max Weber - Criticism
As human beings, managers would tend to focus so much on rules.
They can even ignore the same process the rules were meant to
safeguard.
Inflexible to change.
Overconcentration on rules and authority discourages innovation.

6. Scientific School – Fredrick Taylor
This guy was focused on best methodology:
Managers should do empirical research to enhance work process and
methods.
The research should enable managers to design best methodology for work
processes.
Managers should hire the best persons and they should get the best
training.
Managers should ensure that these best persons actually use the best
methodology.
This worked for a while and it became clear it has limiting factors.

7. A few demerits
So managers are the people who design the job, right?
• Employees tend to be demotivated as they are left out during job design.
• Therefore managers tend to be more intelligent than workers, hence workers
see managers as superior
• Rising pool of knowledge between managers and workers. A new worker has
a steep learning curve to get the best methodology.

8. Administrative Management School
• This is all about information flow in an organization and managing
the total organization.
• Henri Fayol
• Chester Barnard
• Mary Parker Follet

9. Henri Fayol
Henri was French and was a management expert, he was a successful
manager of a big organization.
He came up with the management functions: planning, organizing,
directing and controlling.
Finally, from his own managerial experience, came up with 14
principles of management; see next slide:

10. 14 Principles
1. Division of work
2. Authority: to give orders and exact obedience
3. Scalar chain of command: information flows from top management
to the lowest rank.
4. Centralization: decision making role removed from subordinates.
5. Unity of direction: every employee works towards a common goal.
6. General interest superior to individual interest
7. Esprit de corps: team spirit
8. Equity – employees are treated fairly.

11. 14 Principles contd.
9. Initiative from employees: employees contribute to planning
10. Unity of command: ensured as each subordinate reports to only
one boss
11. Discipline: respect each other.
12. Fair remuneration
13. Stability of tenure: job security
14. Order

12. Chester Barnard
• Developed the Acceptance Theory of Authority.
• He also thought that managers have authority only as much as
employees allow them to have.
• Employees have this zone of indifference within which they don’t
question authority. It is up to the organization to broaden this zone of
indifference.

13. Mary Parker Follet
• She said: management is the process of getting things done using
people
• She emphasized:
1. Direct contact to reduce conflicts
2. Reciprocal relationships: no employee should be overworked
3. Power with rather than power over: don’t lord it, instead empower!
4. Group power: the whole system is greater than the sum of its parts

14. Behaviorist or Human Relations school of management
This school takes an anthropological viewpoint:
• Elton Mayo – Hawthorne experiments
• Douglas McGregor – Theory X and Y
• Abraham Maslow – Hierarchy of needs

15. Elton Mayo
• He conducted experiments in an organization called Hawthorne.
• He was studying variable which affect productivity of employees.
• He discovered that employees worked more because they were
conscious of the fact that a researcher was observing them.
• They worked better because of their attention.
• He concluded that in the workplace social relations contribute a lot to
productivity.
• The group at the workplace strongly influences attitude towards
work.

16. Douglas McGregor
• He came up with Theory X and Y managers. They were just fruits of his own
thinking, he never did any research hence they were criticized.
• Theory X managers thought that:
1. Employees are generally lazy
2. They will avoid work if possible
3. They hate responsibility
4. They have to be pressured
• Theory Y managers thought that:
1. Employees are generally zealous
2. They can take up responsibility if incentivized
3. Employees don’t hate work

17. Abraham Maslow’s hierarchy of needs
Maslow’s research relates
to management in that, it
has greatly guided
motivation that managers
give to employees.
According to Maslow, as
we go higher needs start
getting more abstract and
less concrete from shelter
to self esteem.

18. Contemporary Management Theory
We could call this the modern management school:
• Systems Approach – organizational subsystems
• Contingency theory – situational
• Japanese school – Gemba Kaizen: Continuous Improvement

19. Systems Approach
• The organization is viewed as a dynamic entity made up of continually
interacting subsystems which depend on inputs to give output.
• Survival depends on continual adaptation of subsystem interaction to meet
the dynamically changing external and internal environments.
• Therefore feedback between these subsystem is essential for progress and
homeostasis.
• Every subsystem depends on inputs, hence diminished inputs will lead to
system crash down.
• The whole system is greater than the sum of its parts – synergy
• The organization is an open system with boundaries based on relationship,
if it is closed it can become self-satisfying and inward looking.

20. Contingency Approach
• The focus here is moving away from prescribing how management is
to be done.
• This approach gives the manager a framework to come up with a
fitting organizational design for a particular situation as variables in
organizations’ environment always change.
• Managers have to flexible and their individual performance is
important: esp. a managers experience and judgement.
• The manager analyses the 1. degree of uncertainty in a situation and
2. extent of control the manager has over the situation.

21. Japanese approach to management
• This approach is highly influenced by Japanese culture.
• It emphasizes on quality, and getting it right at the first instant, like Toyota.
Car manufacturing has to be right when the process is starting.
• Continuous improvement – Gemba Kaizen in Japanese
• Lifetime job security
• Paternalistic attitude towards employees
• Non-specialization to enhance flexibility
• Egalitarianism – equality, no discrimination or bias
• A strict bureaucratic structure of management – discipline is highly valued
• Teamwork

22. This is what we covered
• Classical school of management
• Bureaucratic school – Max weber
• Scientific school – Fredrick Taylor
• Administrative:
• Henry Fayol
• Chester Barnard
• Mary Parker Follet
• Behaviorist or Human Relations school of management
• Elton Mayo – Hawthorne experiments
• Douglas McGregor – Theory X and Y
• Abraham Maslow – Hierarchy of needs
• Contemporary school of management
• Systems Approach – organizational subsystems
• Contingency theory – situational
• Japanese school – Gemba Kaizen: Continuous Improvement

23. Done
You should not read to finish.