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Prepared by: HKP First Prepared on: 09-12-04; ANS Last Modif ied on: 12-12-05Quality checked by: HKP

Copyright 2004 Asia Pacific Institute of Information Technology

Introduction to ManagementBM007-3-1

Lecture 4

Management

Theory and Practise

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Topic & Structure of the lesson

Introduction to the underlying principles on

management theory

Tie-up the theoretical implications in practical realitiesof organisation

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Learning Outcomes

At the end of this module, YOU should be able to:

Analyse the various management styles.

Able to apply practical realities to theoreticalassumptions.

Able to understand the founding of management and

scientific theories, as well as the principles of

management.

Tie-up the theoretical implications in practical realities oforganisation.

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Main Teaching Points

Introduction to the underlying principles on management

theory;

F.W Taylor and the principles of scientific management Charles B. Handy organisation theory

Peter F. Drucker the principles of management

Alfred Sloan management and the structure in

organisation

Henry Minztberg the basic parts of an organisation andthe management role

Tie-up the theoretical implications in practical realities

of organisation

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Introduction

The study of the development of management has been

very important for managers because it increases their

understanding of human and social behaviour, which inturn helps them in practice

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Scientific management is an approach that emphasises

the SCIENTIFIC STUDY OF WORK METHODS in

order to IMPROVE WORKER EFFICIENCY

F.W Taylor

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Taylor's view was that all work processes can be

systematically analysed and broken down into a series of

discrete task, and that one best way can be determined

to undertake each

He felt that the scientific approach to organisation and

management would be accepted by all as the best way

to operate and it would result in everyone getting what

they wanted - HIGHER OUTPUT, HIGHER PAY,

HIGHER PROFITS To motivate workers, he suggested economic incentives.

He said that workers are motivated by one thing and one

thing only, i.e. MONEY

F.W Taylor

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Handy identified over 60 factors that can affect the

effectiveness of an organisation

They are grouped under leadership, group relations,

systems and structures, ability, motivation to work,

economic environment, physical environment,technological environment

Charles B. Handy

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According to Drucker, it is management that enables theorganisation to contribute a needed result to society, theeconomy and the individual (Mullins, 1999)

According to Drucker, management is tasks.Management is a discipline. But management is alsopeople. Every achievement of management is theachievement of a manager. Every failure is a failure of amanager. People manage rather than forces or facts.

The vision, dedication and integrity of managersdetermine whether there is management or mismanagement (Mullins, 1999)

Peter F. Drucker

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Drucker is credited with being the first individual who

wrote about Management by objectives (MbO)

MbO is a process through which specific goals are setcollaboratively for the organisation as a whole and every

unit and individual within it; the goals are then used as a

basis for planning, managing organisational activities,

and assessing and rewarding contributions (Bartol &Martin, 1998)

Peter F. Drucker

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Alfred Sloan, the noted former chairman of General

Motors, implemented controls by setting the standard for

the level of return on investment that he expected

various GE units to achieve.

This approach let him exercise control over major unitsby monitoring return on investments, yet it allowed him to

maintain a philosophy of decentralisation (Bartol &

Martin, 1998)

Alfred Sloan

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Mintzberg's research indicated that all managers had a

similar range of roles, irrespective of their position

Henry Minztberg

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According to him, their relative importance varied by position,namely: -

Interpersonal roles - the role of figurehead tend to be moreimportant at the senior level, reflecting the greater positionalpower. The leader role is important to supervisors, reflecting

their greater involvement in ensuring the smooth operation ofstaff relationships

Informational roles - the spokesperson role is morepredominant at the higher levels

Decisional roles - the entrepreneur role is equally importantthroughout the hierarchy. In relation to disturbance handler,the emphasis is at the lower levels. Resource allocatoris moreimportant at the middle and senior level

Henry Minztberg

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Class activity: -

Evaluate the practical implications of the theories

written by the above mentioned writers?

Theoretical Implications

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Quick Review Question

State the drawbacks of Scientific Management.

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Benefits of Scientific Management

Its a rational approach to the organisation of work

enabled tasks and processes to be measured with a

considerable degree of accuracy

Measurement of tasks and processes provide useful

information on which to base improvements in workingmethods, plant design

By providing working methods it brought enormous

increases in productivity

Employees were paid by results Stimulated managements into adopting a more positive

role in leadership at the shop-floor level

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Benefits of Scientific Management

Contributed improvements in physical working conditions

for employees

It provided the foundations on which modern work study

and other quantitative techniques could be soundlybased

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Drawbacks to Scientific Management

It reduced the workers role to that of rigid adherence to

methods and procedures

It generated a carrot-and-stick approach to the

motivation of employees by enabling pay to be gearedtightly to output

Led to fragmentation of work on account of its emphasis

on the analysis and organisation of individual tasks or

operations Planning and controlling of workplace activities

exclusively in the hands of the management

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Drawbacks to Scientific Management

It ruled out any realistic bargaining about wage rates

since every job was measured, timed and rated

scientifically

The creation of boring, repetitive jobs The introduction of systems for tight control over work

The alienation of shop-floor employment from their

management

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Follow Up Assignment

Read Chapter 7 of Organisational Behaviour byby G A Cole

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Summary of Main Teaching Points

Introduction to the underlying principles on

management theory

F.W Taylor and the principles of scientific management

Charles B.Handy organisation theory Peter F.Drucker the principles of management

Alfred Sloan management and the structure in

organisation

Henry Minztberg the basic parts of an organisation and

the management role Tie-up the theoretical implications in practical realities

of organisation

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Q & A

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Chapter 5 Planning & Decision Making

Next Session