2449617 principles of management

8/9/2019 2449617 Principles of Management

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Principles Of Management Principles Of Management

Presented by:Eastern Warriors


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Th e Classical approac hTh e Classical approac h

The Classical perspective to management

emerged during the nineteenth century and

continued into the twentieth century.Due to the new challenges that organizations

faced, management sought methods of

efficiency which included a rational and

scientific approach.


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Th e Classical approac hincludes t h e following t h ree t h eories

and t h eir contributors:S cientific Management by Frederick Taylor

Administrative Principle by Henry Fayol

Bureaucratic Organization by Max Weber


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S cientific Management by Frederick W. Taylor 1856 - 1915

S cientific Management or Taylorism was a scientificmethod which was used to optimize the way in whichtasks were performed thus improving the labour productivity. One of Taylor s philosophy was In the

past man must has been first. In the future, thesystem must be first.


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The General Concept of S cientific Management D evelop a standard met hod for performing a task and trainworkers to use t hese met hods.(Managers developed precise procedures based eac h organizational task)

Provide workers wit h t he proper tools needed to work.Selected employees were c hosen for specific tasks.(Workers t hat were stronger bot h mentally and p hysically were assignedspecific tasks)

Wage incentive were provided w hen output was increased.(Employees were motivated to increase t heir output wit h t he use of additional benefits


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D isadvantages of S cientific Management Workers felt exploited because t heir social aspect of life wasdisregarded.(Workers were treated as mac hines and not humans)

Management stereotyped workers and did not allow t hem toprove t heir skills in ot her areas.Workers were not allowed to form innovative ways toperform t heir tasks.


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Administrative Principleby Henry Fayol

1841 - 1925

This t heory dealt wit h t he entire organization (bot h workers and

management) w hich functioned wit h four basic principles. W hich are:Unity of command Each person receives order from only

one superior.Division of work Specialization and efficiency were

incorporated in workers.Unity of direction Related activities were grouped under

one manager.Scalar Chain is t he organizational structure w hich starts

from t he CEO s to t he labourers.


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A dministrative PrincipleThe five basic functions or elements of

management (Management Process) are:PlanningOrganizing

ControllingCoordinatingCommanding (leading/directing)


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Further contributions to A dministrative Principleswere made by Mary Parker Follet (1868-1933)( emphasis was made on the common goals of the

employees in reducing organizational conflict aswell as the management gaining the trust and respectof employees ) and Chester I. Bernard (18861961)( the concept of informal organization wheremanagement and subordinates group informally tocreate a bond ).


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Bureaucratic Organizationsby Max Weber 1864 - 1920

Weber s t heory concentrated on t he fact t hat positionsshould be structured w here t here must be a clear line of aut hority ( hierarc hy) and all persons must be selected bycompetency for t he job and promotion (promotion basedon ac hievement and a specialized division of labour) also,

a formal structure and position rat her t han an individual.


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V iews and Misconceptions of Bureaucratic Organizations

Good bureaucracy removed or reduced opportunities forcorruption, favouritism and arbitrary exercises of power(instead of bribing a single official, you now have to bribeseveral officials) .Sometimes extra paperwork is added to a system.Identified bureaucracy wit h any large organization.

Sometimes bureaucracy would be mistaken for civil service(governmental organizations) but actually is being used at various types of organizations.Bureaucracy is inflexible.


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H uman Resource approac h H uman Resource approac h

The Human Resource perspective to

management suggested that jobs should bedesigned to meet higher levels needs by

allowing workers to use their full potential.


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H uman Resource Approac h includes t h e following t h ree t h eoriesand t h eir contributors:

The Hawthorne S tudies by Elton Mayo

The Maslow Theories of Human s Need

Mc Gregor s Theory (x y theory)


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H awt h orne Studies H awt h orne Studiesby Elton Mayoby Elton Mayo

After a series of studies, it was proven t hat employeesincrease t he level of output w hen given bettertreatment.

He carried out researc h at t he Hawt horne Works of t heWestern Electric Company in C hicago.He and his team of researc hers took a group of sixwomen and segregated t hem. They t hen altered t heir

conditions of work in a number of ways, over a fiveyear period, and observed t he effects on productionand t he morale of t he group.


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F rom Mayos studies t h e following was derived:F rom Mayos studies t h e following was derived:

Over t he period, c hanges suc h as new payment systems, rest breaks of different sorts and lengt hs, varying t he lengt h of t heworking day, and offering food and refres hments were tried. Inalmost all cases, productivity improved.

In t he end, he realised t hat firstly, t he women had felt important because t hey had been singled out. Secondly, t he women haddeveloped good relations hips amongst eac h ot her and had beenallowed to set t heir own work patterns. Thirdly, t he case of relations hip had made for a muc h more pleasant workingenvironment.

Mayo decided t hat work satisfaction must depend, to a largeextent, upon t he informal social relations hips between workers ina group and upon t he social relations hips between workers andt heir bosses.


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From Mayo s investigations t he following conclusions were made:

Work is a group activity.The social world of an adult is primarily patterned by t heir

work activity.The need for recognition, security and belonging is moreimportant t han p hysical conditions of t he work environment.

A complaint is commonly a symptom manifesting disturbance

of an individual

s current position. An employee is a person w hose attitudes and effectiveness areconditioned by social demands from bot h outside and insidework environment.


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Continued conclusions from Mayo s investigations:

Informal groups wit h an organization creates a strong socialcontrol over t he work habits and attitudes of an individual.G

roups collaboration must be planned and developed, t hen acohesion wit hin an organization would be formed t husresisting t he disrupting effects of a continuously adaptivesociety.

The c hange from an establis hed society in t he home to anadaptive society in t he work plant resulting from t he use of new tec hniques contribute to t he disruption of t he socialorganization of t he workplace.


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Maslows Th eory Maslows Th eoryof H umans Needsof H umans Needs

Maslow's hierarc hy of needs is a t heory in pys hcoloy t hat contends,eac h of us is motivated by needs. Our most basic needs are inborn,having evolved over tens of t housands of years. Abra ham Maslow'sHierarc hy of Needs helps to explain how t hese needs motivate us all.

Maslow's Hierarc hy of Needs states t hat we must satisfy eac h need inturn, starting wit h t he first, w hich deals wit h t he most obvious needsfor survival itself. Only w hen t he lower order needs of p hysical andemotional well-being are satisfied are we concerned wit h t he higherorder needs of influence and personal development.


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Maslow said t hat needs must be satisfied in t he given order. Aims and drive always s hift to next higher order needs.Levels 1 to 4 are deficiency motivators; level 5, and byimplication 6 to 8, are growt h motivators and relatively rarelyfound. The t hwarting of needs is usually a cause of stress, and

is particularly so at level 4.

Examples he used were: You can't motivate someone to ac hieve t heir sales target (level 4) w hen t hey're having problems wit h t heir marriage(level 3).

You can't expect someone to work as a team member (level3) w hen t hey're having t heir house re-possessed (level 2).


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Maslows H ierarc h y of Needs Maslows H ierarc h y of Needs

B iological & PhysiologicalB iological & PhysiologicalNeedsNeeds

Safety NeedsSafety Needs

BelongingnessBelongingness& Love Needs& Love Needs

EsteemEsteemNeedsNeeds

Food, air, water, sleep

Protection, law,freedom

Proper temperature, air,basic salary

Benefits, stabilityOccupational safety

Coworkers, groups,clients

Recognition,high status

AdvancementSelfSelf

Actualization Actualization

Family, friends,community

Approval,achievement

Personal growth,fulfillment

Personal/ Social Life

NeedHierarc hy

OccupationalNeeds


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S o while it is broadly true that people move up (or down) thehierarchy, depending what's happening to them in their lives,it is also true that most people's motivational 'set' at any timecomprises elements of all of the motivational drivers.

Like any simple model, Maslow's theory not a fully responsive system nevertheless, it remains extremely useful and applicable for understanding, explaining and handling manyhuman behaviour situations.


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Th eory X and Th eory Y Th eory X and Th eory Y Th eory X

Th e average individualdislikes work and will avoidit.Mo st pe o ple must be f or cedor penalised t o get t h emeffectively ac h ieve t h eor ganizati o ns g o als.Th e ave r age h uman h as littleor no ambiti o n, w o uld av o idr esp o nsibility but like t h e

secu r ity and benefits.

Th eory Y Th e ave r age individual likest o wor k and it s a natu r alactivit y .

A pe r so n c o uld be self mo tivated and is c o mmittedt o t h eir wor k.Th e ave r age h uman lea r nst o accept and seekr esp o nsibilit y .Has t h e capacit y t o beinno vative and c r eative.Th e p o tential o f a h umanunde r mo de r n indust r ial lifeis m o de r atel y utilized.


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Management Concept using Management Concept using Th eory X and Th eory Y Th eory X and Th eory Y

Mc G regor s t heory is a useful and simple reminder of t henatural rules for managing people and he maintainedt hat t here are two fundamental approac hes to managingpeople.

Theory X Manager is an aut horitarian manager andgenerally gets poor results.

Theory Y Manager is a participative manager w hich produces better performance and results, and allowspeople to grow.


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Th eory X and Th eory Y Management Th eory X and Th eory Y Management


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Comparison & Contrast of Comparison & Contrast of Management Th eories Management Th eories

Theory XMotivation style-

Threats and disciplinary actionare used more effectively in t hissituation, also monetary gain.Leaders hip-

Aut horitarianPower & Aut hority-

Arrogant, one waycommunicatorConflict-Intolerant Performance Appraisals-

Appraisals occur on a regularbasis

T heory YMotivation style-RewardingLeaders hip-Participative

Power & Aut hority-The manager would takesuggestions from workers, but would keep t he power toimplement t he decisionConflict-

Workers mig ht be given t heopportunity to exert "Negotiating" strategies to solvet heir own differencesPerformance Appraisals-Promoti ons also occur on aregular basis.


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Wit h respect to overall management style, McG regor's Theory X andTheory Y managers seem to have a muc h more formal leaders hipstyle and managers seem to have different views of t he workers,while t heir views of t he tasks remains t he same in bot h cases: t hat is,one of specialisation, and doing a particular task.

Albeit t hat Theory Y suggests t hat t he workers would become verygood at t heir particular tasks, because t hey are free to improve t heprocesses and make suggestions. W hile t he Theory X worker is said torequire force, t hreats, and possibly even disciplinary action.

Theory Y are, again, self motivated, t his allows t hem to focus on t hetask, and also t heir role wit hin t he company. Their desire is to bemore productive and enable t he company to succeed. Theory X workers, on t he ot her hand, seem to have just enoug h self motivationto s how up at work, punc h t he time clock, as it were, and do only t hat which is necessary to get t he job done to minimum standards.

Summary & Conclusions: Summary & Conclusions:


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Modern Approach

tomanagement

Elements of various perspectives, mostly thehumanistic perspective evolved into what is

known as the Modern Approach to

management.


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Modern Approac h includes t h e following t h ree t h eories and t h eir

contributors:

Open S ystemsContingency Thinking

Lessons from the Japanese management

style (theory z)


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Open SystemsOpen Systems

A system is defined as a group of interacting units or elements t hat

have a common purpose. Therefore Open systems refer to systems

t hat interact wit h ot her systems or t he outside environment.

In ot her words organizations is an entity t hat takes inputs from t he

environment, transforms t hem, and releases t hem as outputs in

sequence wit h mutual effects on t he organization itself along wit h t he environment in w hich t he organization operates.


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Open SystemsOpen SystemsOpen systems refer to systems t hat interact wit h ot her systemsor t he outside environment.

For example, living organisms are considered open systems

because t hey take in substances from t heir environment suc h asfood and air and return ot her substances to t heir environment.

The t hree major c haracteristics of open systems are:They receive inputs or energy from t heir environment.They convert t hese inputs into outputs.They disc harge t heir outputs into t heir environment.


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Companies use inputs suc h as labour, funds, equipment, andmaterials to produce goods or to provide services and t hey designt heir subsystems to attain t hese goals.

Labour, F inances,Material, Information

Products/Services,Profit/Loss

Management & ProductionProcess

I NPU TI NPU T T RANSFORMA TI ONT RANSFORMA TI ON OUT PU TOUT PU T


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Open SystemsOpen Systems

Two early pioneers in t his effort, D aniel Katz and Robert Ka hn,began viewing organizations as open systems wit h specializedand interdependent subsystems and processes of communication, feedback, and management linking t hesubsystems. Katz and Ka hn argued t hat t he closed-systemapproac h fails to take into account how organizations arereciprocally dependent on external environments. For example,environmental forces suc h as customers and competitors exert considerable influence on corporations, highlighting t he

essential relations hip between an organization and itsenvironment as well as t he importance of maintaining externalinputs to ac hieve a stable organization.


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Contingency PerspectiveContingency Perspective

The contingency approac h to management is an extension of t he humanistic perspective w hich is based on t he idea t hat in an

organization t here is no one best way in t he management

process (planning, organizing, leading, and controlling) to

successfully resolve any tailored circumstances; becauseorganizations, people, and situations vary and c hange over

time. Thus, t he rig ht t hing to do depends on a complex variety

of critical environmental and internal contingencies.


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ContingencyView

Unique Situation Universal View

Contingency Perspectiveof Management


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The contingency approac h was suggested by two American academics,Lawrence and Lorsc h in 1967. Their important contribution to t hisapproac h was as follows:

The more dynamic and diverse t he environment, t he higher t hedegree of bot h differentiation and integration required forsuccessful organization.

Less c hangeable environments require a lesser degree of differentiation but still require a high degree of integration.

The more differentiated an organization, t he more difficult it is toresolve conflict.

Where t he environment is uncertain, t he integrating functionstend to be carried out by middle and low-level managers w here t heenvironment is stable, integration tends to be ac hieved at t he topend of t he management hierarc hy.


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Also, Fred F iedler, in t he 1960s and 1970s, was an earlypioneer in t his area. He identified t hat various aspects of t he situation had an impact on t he effectiveness of different leaders hip styles.

For example, F iedler suggests t hat t he degree to w hich subordinates like or trust t he leader, t he degree to w hich t he task is structured, and t he formal aut hority possessed

by t he leader are key determinants of t he leaders hipsituation. Task-oriented or relations hip oriented leaders hipshould would eac h work if t hey fit t he c haracteristics of t hesituation.


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J apanese Management Style J apanese Management StyleTh eory Z Th eory Z

McGregor, identified a negative set of assumptions about humannature, w hich he called Theory X. He asserted t hat t heseassumptions limited t he potential for growt h of many employees.

McGregor presented an alternative set of assumptions t hat he

called Theory Y and were more positive about human nature as it relates to employees. In McGregor's view, managers w ho adoptedTheory Y beliefs would ex hibit different, more humanistic, andultimately more effective management styles and Theory Y becamea well-known prescription for improving management practices.

Concerns about t he competitiveness of U. S. companies led someto examine Japanese management practices for clues to t hesuccess enjoyed by many of t heir industries. This led to manyarticles and books purporting to explain t he success of Japanesecompanies. It was in t his atmosp here t hat Theory Z wasintroduced into t he management lexicon.


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Theory Z is humanistic approac h to management approac h byWilliam Ouc hi.

The key features of Japanese industrial organizations,according to Ouchi are as follows:

Offer lifetime employment (at least for t heir core workers).

Promote from wit hin.

Insist on mandatory retirement of core workers at age 55.

Employ a large number of temporary employees mostly women.

There is a high degree of mutual trust and loyalty betweenmanagement and employees.


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The key features of Japanese industrial organizations:Career pat hs are non-specialized wit h life-long job rotation as

a central feature of career development.

Decision making is s hared at all levels.

Performance appraisal is long term (ie t he first appraisal takes

place 10 years after joining t he company).

There is a strong sense of collective responsibility for t he

success of t he organization. And cooperation effort rat her t han individual ac hievement is

encouraged .


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Alt houg h Ouchi recognizes t hat many of t he features of Japanese management could not be translated into Westernindustrial society, he believes t hat certain features could beapplied in a Western context. The move from t he present hierarc hical type of organization to a Theory Z typeorganization is a process w hich, says Ouc hi:

Has t he objective of developing t he ability of t heorganization to coordinate people, not tec hnology toachieve productivity.


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In his view, t his requires a new p hilosop hy of managingpeople based on a combination of t he following featuresof Japanese management:

Lifelong employment prospectsShared forms of decision-makingRelations hip between boss and subordinate based onmutual respect


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According to Ouc hi t he introduction of Theory Zapproac hes into Western firms requires t he followingstrategy:

Adoption of a Top down approac h , based on definition

of t he new p hilosop hy agreed and supported by t heorganization s top management.

Implementation of t he new approac h should be carriedt hroug h on t he basis of consultation and communicationwit h t he workforce and wit h full training support todevelop relevant skills for managers, supervisors andt heir teams.

2449617 principles of management

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