4.1 management theories 1


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4.1 management theories 1

  1. 1. Makerere University Business School Strategic Management Course MANAGEMENT THEORIES
  2. 2. Introduction Earliest contributors Practicing managers Social scientists More recent theorists Academicians Management consultants
  3. 3. Practicing managers Reflected on their experiences To produce rational principles for Universal application Efficiency improvement To structure work & organisations Did not concentrate on human motivation Classical / scientific
  4. 4. Early Social Scientists Human behaviour at work Started with efficiency, looking at Physical conditions effect on employees Ended up in human factors at work Motivation, communication, leadership Called Human relations theorists or Social psychologists Later social scientists Organisations as social systems Contingency theorists
  5. 5. More recent theorists Strategic perspective Involve organisation factors: Vision, mission, culture, structure, values, external environment e.t.c Build on previous theorists More inclined to contingency theories
  6. 6. CLASSICAL MANAGEMENT THEORIES Henri Fayol (1841 – 1925) French industrialist & theorist Mining engineer @ 19 years, MD @ 47 Was practically successful in management Fayol’s definition of management by industrial activities: Technical, commercial, Financial, Security, Accounting, and managerial 1st 5 activity groups were taken care of Managerial activities required establishment of principles
  7. 7. Fayol’s Principles of management Division of work Authority Discipline Unity of command Individual interests sub-ordination Remuneration Centralisation Scalar chain Order Equity Tenure of office stability Harmony, and team work
  8. 8. Comments on Fayol’s principles Emphasis on structural organisation nature – bureaucracy Fairness, equity e.t.c were not consistent with other main principles Not suited for rapid change
  9. 9. Fredrick Winslow Taylor Looked at efficiency on shop floor Was a labourer, up to shop superintendent Developed scientific management Background Came up after industrial revolution Dominant requirement was efficiency Need for systematic of work Workers only put in minimum effort
  10. 10. Scientific management principles Work study analytical approach Steps Develop a science for each operation to replace opinion & “rule of thumb” Determine best method & its timing • Study a job from skilled workers • Eliminate unnecessary actions • Produce best method – standard Separate planning & controlling from actual “doing” Select & train workers
  11. 11. Principles from Scientific management times Frank & Lillian Gilbreths Gilbreths applied scientific management to brick laying Used work study method to Reduce movements per brick from 18 to 5 Current principles from scientific management - Gilbreths Therbligs – basic elements of on-the-job-motions Process charting – process flow charts Henry Gantt Was Taylor’s colleague Developed Gantt charts
  12. 12. Comments on scientific management Benefits Increased productivity Rational approach – applies measurement Incentive payments – based on results Weaknesses Rigidity – reduced workers’ role Work fragmentation Taylor was over-optimistic on acceptance by both employees and management Wages were determined scientifically - no social considerations
  13. 13. Bureaucracy – Max Weber (1864 – 1920) Common meaning Red-tape; excess rules, paper work leading to inefficiency Management theory meaning An organisational form with a system of rules and hierarchy of authority Authority – acceptance of rule by those whom it is to be exercised on. Authority types Traditional Charismatic Rational – legal According to Weber, bureaucracy was: The most rational means of controlling human beings Indispensable for large scale & complex organisations.
  14. 14. Bureaucracy main features A continuous organisation of functions bound by rules Specified spheres of competence A hierarchical arrangement of offices (jobs) Appointment based on technical competence Separation of officials from ownership Formulated rules, decisions & actions recorded in writing
  15. 15. Bureaucracy weaknesses Rules tend to be more important than efficiency Rigid behaviour Prevents search for alternatives because of programmed decision making Damages relationships with clients and workers Difficult for change and adaptation