MANAGEMENT THEORIES

Contribution to Modern Organizations

-The behavioral management school brought the human dimension of work firmly into the mainstream of management thought with such results continuing today -It enhances the development of the field of human resource management -Behavioral management theory effectively paved the way for modern day employees' assistance programmers

Weeber's contribution to modern organizations

-Weber's theory became the design prototype for large organizations -Offices and positions are still being organized into a hierarchy each lower one being controlled and supervised by a higher one - Employers depend heavily on selections and formal rules in an organization -There is still an importance of accountability in organizations

THE HAWTHORNE STUDY OUTLINED THE FOLLOWING FINDINGS

-Workers are not motivated only by money but also by social and personal factors - Management should analyse employees' attitudes when trying to ascertain their behavior - Effective supervision helps to maintain employees' morale and productivity -More emphasis should be placed on informal groups and they may have significant impact on employees' performance.

MAX WEEBER

(Bureaucracy) The three types of legitimate authority described by him are as follows: - Traditional Authority: Where acceptance of those in authority arises from tradition and custom ( eg as in monarchies, tribal hierarchies etc) - Charismatic Authority: Where acceptance arises from loyalty to and confidence in the personal qualities of the ruler. -Rational-legal Authority: Where acceptance arises out of the office or position of the person in authority as bounded by the rules and procedures of the organization. (Exists in most organizations today)

FAYOL'S 14 PRINCIPLES OF MANAGEMENT

- Division of work - Authority -Discipline - Unity of command -Unity of direction -Subordination of individual interests to the general interests -Remuneration - Centralization -Scalar chain -Order -Equity -Stability of Tenure of Personnel -Initiative -Esprit de corps

FAYOL'S CONTRIBUTION TO MODERN ORGANIZATION

- His 14 principles formed the foundation for modern management practices and sound administrative structure -His functions of management provided a theoretical basis for all managers no matter the area of expertise

Main Features of Bureaucracy according to Weber

-Continuous organization of functions bound by rules - Specified spheres of competence, ie the specialization of work, degree of authority and rules governing the exercise of authority -Hierarchical arrangement of offices ie where one level of jobs is subject to control by the next higher level -Appointment to offices are made on the grounds of technical competence -The separation of officials from ownership of the organization -Official positions exist in their own right, and job holders have no rights to a particular position -Rules, decisions and actions are formulated and recorded in writing

Problems With The Study

-Humans are complex and predicting behavior may be more difficult than presented - There are other factors outside of motivation that affect workers' performance -The HRS was criticized for playing down the conflict of interest between management and employees

Benefits of Bureaucracy

-Ideal for standardized routine tasks -Efficient -Necessary for fairness, adherence to the law, safety and security -Structured predictable environment

CHARACTERISTICS

-Impersonal Nature -Rationality - Uniformity in the performance of tasks -Technical Competence -Stability

METHODS OF MOTIVATION AS PROPOSED BY HRS:

-Job enlargement -Job enrichment -Job rotation -Group working

MANAGEMENT FUNCTIONS

-Planning -Organizing -Staffing -Leading -Controlling

Problems with Bureaucracy

-Slow decision making -Conformity -Inhibit people's personal growth -Bad at innovation -Hard to learn from their mistakes -Slow to change -Communication is restricted -Hard to deal with change

HENRI FAYOL

A French industrialist who put forward and popularized the concept of the 'universality of management principles' ( the idea that all organizations could be structured and managed according to certain principles. Fayol proposed all managers perform five main functions: - Planning: setting objectives and the strategies, policies, programmes and procedures for achieving the objectives either for the organization as whole or for a part of it. - Organizing: involves the establishment of a structure of tasks which need to be performed to achieve the goals of the organization. - Commanding: involves giving instructions to subordinates to carry out tasks over which the manager has authority for decisions and responsibility for performance. - Co-ordinating: the task of harmonizing the activities of individuals and groups within the organization, which will inevitably have different ideas about what their own goals should be. -Controlling: the task of measuring and correcting the activities of individuals and groups to ensure that their performance is in accordance with plans.

Relevance to modern industry

Economic Man: Although some managers still believe that money is the only way to motivate staff, the more general view is that workers have a wide range of needs, not just money that can be met in part at least from work. Select the right people for each job: The importance of this is still reflected in the significance given to careful staff selection in nearly all businesses. Observe and record the performance of staff: widely adopt way know as 'time and motion study'. Regarded with suspicion by workers as a way of making them work harder, but still employed just with the co-operation and involvement of staff Establish the best method of doing a job: Accepted as being important as efficiency depends on the best ways of working being adopted. However Taylor's approach of management giving instructions to workers with no discussion or feedback is considered undesirable. Worker participating in devising best work practices is encouraged. Place work payment systems: Not now widely used. Quality may be sacrificed in the search for quantity. Workers will vary output according to their financial needs at different times of year and it discourages them from accepting changes at work in case they lose some pay.

F.W. TAYLOR

He pioneered the scientific management movement in the USA and argued that management should be based on 'well-recognized, clearly defined and fixed principles, instead of depending on more or less hazy ideas" Principles of Scientific Management: -The development of a true science of work All knowledge which had hitherto been kept in heads of workmen should be gathered and recorded by management. - The scientific selection and progressive development of workers: workers should be carefully trained and given jobs to which they are best suited. - The bringing together of science and the scientifically selected and trained men. Application of techniques to decide what should be done and how using well trained workers who are willing to maximize output would result in maximum productivity. - The constant and intimate co-operation between management and workers: "the relations between employers and men form without question the most important part of this art." Scientific Management in practice - Work study techniques used to analyze tasks and establish most efficient methods to use. No variation permitted. Aim: to use "one best way". - Planning the work and doing the work were separated. Assumed that persons intellectually equipped to do a particular type of work were probably unlikely to be able to plan it to the best advantage. -Workers paid incentives on the basis of acceptance of the new methods and output norms. Pay assumed to be the only motivating force.

ELTON MAYO

His theories were based on a series of experiments he and his team conducted over a five year period at the Hawthorne factory of Western Electric Co. in Chicago. His work was initially based on the assumption that working conditions had a significant effect on workers' productivity. His experiments however showed that the need to belong in a group and possess status in it is more important than monetary rewards or good working conditions.

HUMAN RELATIONS AND BEHAVIORAL SCHOOL

The HRBS recognizes employees as individuals with concrete human needs, as parts of work groups and as members of the large society.

HAWTHORNE STUDY: ELTON MAYO

The main purpose of the research was to determine the effect of working conditions on productivity. This study changed the views of many stakeholders of the day and improved their knowledge and understanding.

MANAGEMENT

the art of getting things accomplished in organizations through others. It is a process which enables organizations to achieve their objectives by planning, organizing, and controlling their resources including gaining the commitment of their employees.

Classical Theory

these theories have little concern for the human element in the organization