Date post: | 11-Sep-2014 |
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Makerere University Business SchoolStrategic Management Course
MANAGEMENT THEORIES
Introduction
Earliest contributorsPracticing managers
Social scientists
More recent theoristsAcademicians
Management consultants
Practicing managers
Reflected on their experiences
To produce rational principles forUniversal application
Efficiency improvement
To structure work & organisations
Did not concentrate on human motivation
Classical / scientific
Early Social Scientists Human behaviour at workStarted with efficiency, looking atPhysical conditions effect on employeesEnded up in human factors at work
Motivation, communication, leadership
CalledHuman relations theorists or Social psychologists
Later social scientistsOrganisations as social systemsContingency theorists
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
CLASSICAL MANAGEMENT THEORIES
Henri Fayol (1841 – 1925) French industrialist & theoristMining engineer @ 19 years, MD @ 47Was practically successful in managementFayol’s definition of management by industrial activities:
Technical, commercial, Financial, Security, Accounting, and managerial
1st 5 activity groups were taken care ofManagerial activities required establishment of principles
Fayol’s Principles of managementDivision of workAuthorityDisciplineUnity of commandIndividual interests sub-ordinationRemunerationCentralisationScalar chainOrderEquityTenure of office stabilityHarmony, and team work
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
Fredrick Winslow TaylorLooked at efficiency on shop floorWas a labourer, up to shop superintendent Developed scientific management
BackgroundCame up after industrial revolutionDominant requirement was efficiencyNeed for systematic of workWorkers only put in minimum effort
Scientific management principlesWork study analytical approachSteps
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
Principles from Scientific management times
Frank & Lillian GilbrethsGilbreths applied scientific management to brick layingUsed work study method toReduce movements per brick from 18 to 5Current principles from scientific management - Gilbreths
Therbligs – basic elements of on-the-job-motionsProcess charting – process flow charts
Henry GanttWas Taylor’s colleagueDeveloped Gantt charts
Comments on scientific managementBenefits
Increased productivityRational approach – applies measurementIncentive payments – based on results
WeaknessesRigidity – reduced workers’ roleWork fragmentationTaylor was over-optimistic on acceptance by both employees and managementWages were determined scientifically - no social considerations
Bureaucracy – Max Weber (1864 – 1920)
Common meaningRed-tape; excess rules, paper work leading to inefficiency
Management theory meaningAn 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
TraditionalCharismaticRational – legal
According to Weber, bureaucracy was: The most rational means of controlling human beingsIndispensable for large scale & complex organisations.
Bureaucracy main featuresA continuous organisation of functions bound by rulesSpecified spheres of competenceA hierarchical arrangement of offices (jobs)Appointment based on technical competenceSeparation of officials from ownershipFormulated rules, decisions & actions recorded in writing
Bureaucracy weaknessesRules 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