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NGO QUY NHAM, MBA
SCHOOLS OFMANAGEMENT THEORY
Ng Qu Nhm, MBAEmail: [email protected]
UNIT 02
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Lecture outline
Early management ideasClassical theoristsBehavioural theoristsQuantitative approachContemporary ideas
Innovation & management theory
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Development of MajorManagement Theories
Management Theories
Historicalbackground
S c i e n t i
f i c m a n a g e m e n t
( 1 9 0 0 s )
G e n e r a
l a
d m
i n i s t r a t i v e
t h e o r i s t s
( 1 9 1 0 s )
O r g a n
i s a t i o n a l b e
h a v
i o u r
( 1 9 3 0 - 1
9 5 0 )
Early advocate Hawthorne studies
Behaviouralscience theorists Human relations
Q u a n t i t a t i v e a p p r o a c h
( 1 9 4 0 s )
Early examplesof management
Adam Smith
Industrialrevolution
O r g a n
i s a t i o n a
l b e
h a v
i o u r
( 1 9 3 0 - 1
9 5
0 )
C o n t e m p o r a r y
v i e w s
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HISTORICAL BACKGROUND
Early examples of managementThe Egyptian pyramidsThe Great Wall of China
Adam Smith: Organisations and society would gain from thedivision of labour , the breakdown of jobs intonarrow and repetitive tasks
Industrial RevolutionThe advent of machine power, massproduction and efficient transportation
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Early management ideas
Robert Owen (1771 1858)Identified the importance of working andsocial conditions for employees.Charles Babbage (1792 1871)Ideas on work specialisation, productionefficiency, incentive and profit-sharing plans.Henry R. Towne (1844 1924)Called for a management science thatwould establish principles of management.
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Early management ideas
Assessing the early contributions:Uncoordinated efforts.Contributions tended to relate to specificproblems.Did not see management as a separate fieldor skill (until Towne).
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SCIENTIFIC MANAGEMENT
the use of the scientific method todetermine the one best way for a jobto be done.It emphasises the scientific study ofwork methods to improve workerefficiency. Important contributions were made by
F. W. Taylor,F. & L. Gilbreth,H. Gantt
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Scientific management
Frederick W. Taylor : Four principles of scientific management: 1. Determine the most efficient work
methods.2. Select & train the best.3. Co-operate with workers to ensure
best method is used.
4. Divide work/responsibility betweenworkers & managers.
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Scientific management
Frank & Lillian Gilbreth Time & motion studies Human implications of ScientificManagement
Henry Gantt Pay incentives Gantt chart
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GENERAL ADMINISTRATIVE THEORISTS
Writers who developed general theories of whatmanagers do and what constitutes goodmanagement practice Henri Fayol
Management is a set of functions:o planning,o organising,o commanding,o coordinating ando controlling
14 principles used by managers to co-ordinatethe organisations internal activities
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Henri Fayols Principles of management
Division of workAuthorityDisciplineUnity of
command/directionPrimacy of generalinterestRemuneration
Esprit de corps
CentralisationScalar chainOrderEquity
Low turnoverInitiative
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Administrative management
Viewed management as a profession that canbe trained and developedEmphasised the broad policy aspects of top-level management
Contributions
Limitations
Universal prescriptions need qualifications forenvironmental, technological, and personnelfactors
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Bureaucratic management
Promote efficient performance of routineorganisational activitiesEliminate subjective judgement by employees
and managementEmphasises position rather than the person
Contributions
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Bureaucratic management
Limitations
Limited organisational flexibility and slow decisionmakingIgnore the importance of people andinterpersonal relationshipsAccumulation of power can lead to authoritarianmanagementRules may become ends in themselvesDifficult to get rid of the system once established
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QUANTITATIVE MANAGEMENT
the use of quantitative techniques to improvedecision making and organisational effectiveness. Management science... use of sophisticated mathematical models & statisticalmethods.
Operations managementresponsible for managing production & delivery of anorganisations products and services.
Management information systemsfocused on designing & implementing computer-basedinformation systems for use by management.
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Quantitative management
Developed specific mathematical methods of problemanalysisHelped managers select the best alternative among a set
Contributions
LimitationsModels neglect non-quantifiable factorsManagers not trained in these techniques and may not trustor understand the techniques outcomes
Not suited for non-routine or unpredictable managementdecisions
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BEHAVIOURAL THEORISTS
Perspective on management emphasising theimportance of attempting to understandvarious factors affecting human behaviour inorganisations .
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Behavioural theorists
Early theorists: Hugo MunsterbergCreating optimal psychological conditions, behaviourshaping
Mary Parker FollettImportance of group functioningHawthorne studiesImportance of supervisory style
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Human Relations
Promotes employees effectiveness throughunderstanding of individual, group, andorganisational processes.Stresses relationships among employees,
managers, and the work they perform for theorganisation.Assumes employees want to work and cancontrol themselves (Theory Y)
Abraham Maslow: Hierarchy of NeedsDouglas McGregor: Theory X & Y
Key concepts
Contributors
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Human Relations
Contributions
Limitations
Some approaches ignored situational factors suchas the environment and the organisationstechnology
Increased participation, greater autonomy,individual challenge and initiative, and enriched
job may increase performanceRecognised the importance of developing humanresources
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Organisationl Behaviour
Productivity and employee behaviour areinfluenced by the informal work groupCohesion, status, and group norms determineoutput.Managers should stress employee welfare,motivation, and communicationSocial needs have precedence over economicneeds.
Key concepts
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Organisationl Behaviour
Contributions
Limitations
Ignored workers rational side and the formalorganisations contribution to productivity
Research findings later overturned the simplisticbelief that happy worker are always moreproductive
Psychological and social processes influenceperformanceMaslows hierarchy of needs
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CONTEMPORARY VIEWPOINTS
Systems theory Approach based on the idea thatorganisations can be viewed as systems. Contingency theory
Viewpoint arguing that appropriatemanagerial action depends on the particularparameters of the situation.
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Systems theory
Organisation is viewed as a open systemManagement must interact with theenvironment to gather inputs and return theoutputs of its production
Organisational objectives must encompass bothefficiency and effectivenessOrganisations contain a series of subsystemsThere are many roads to the same outcome
Synergies exist where the whole > the sum ofthe parts
Key concepts
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Systems theory
Contributions
LimitationsDoes not provide specific guidance on thefunctions and duties of managers
Recognised the importance of the organisationsrelationship with the external environment
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Contemporary viewpoints
Theory Z Concept combining positive aspects ofAmerican and Japanese management into amodified approach aimed at increasingmanagerial effectiveness while remainingcompatible with the norms and values ofAmerican society and culture. Total Quality approach
Approach highlighting collectiveresponsibility for product and servicequality, and encouraging individuals to worktogether to improve quality.
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Promoting innovation
Each management viewpoint provides acontribution to managing innovation:Classical
BehaviouralQuantitativeContemporary
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Lecture summary
Early management ideasGeneration of ideas leading to identificationof management as a significant field ofinquiry.
Classical theoristsEmphasised finding ways to more efficientlymanage work and organisations.
Behavioural theoristsEmphasised the importance of trying tounderstand factors affecting humanbehaviour in organisations.
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GO Q A A
Lecture summary
Quantitative approachFocuses on mathematics, statistics and information aidssupporting managerial decision making andeffectiveness.
Contemporary ideasViews of organisations as systems, importance ofcontingency factors & amalgamating Japanese &American management practices.
Innovation & management theoryEach approach provides insights, knowledge & practiceregarding the management of innovation inorganisations .