PRINCIPLE OF MANAGEMENT BA(MBANB) - 531

MANAGEMENT ORGANIZATION
Management philosophies and organization forms change over time to meet new needs.
Some ideas and practices from the past are still relevant and application to management today.

HISTORICAL PERSPECTIVE

 Provides a context or environment

 Develops an understanding of societal impact
 Achieves strategic thinking
 Improves conceptual skills
 Social, political, and economic forces have influenced organizations and the practice of
management a context or environment.

Social Forces

 Values, needs, and standards of behavior

Political Forces

 Influence of political and legal institutions on people & organizations

Economic Forces

 Forces that affect the availability, production, & distribution of a society’s resources among
competing users

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CLASSICAL PERSPECTIVE
A management perspective that emerged during the nineteenth and early twentieth centuries that
emphasized a rational, scientific approach to the study of management and sought to make organisations
efficient operating machines.

Scientific Management
Scientific Management: emphasized the scientific study of work methods to improve the productivity of
individual workers.
Frederick W. Taylor The “father” of scientific management

The theory of scientific management

 Using scientific methods to define the “one best way” for a job to be done.
 Putting the right person on the job with the correct tools and equipment
 Having a standardized method of doing the job.
 Providing an economic incentive to the worker.

Management Today How Do Today’s Managers Use Scientific Management?

Use time and motion studies to increase productivity

Hire the best qualified employees
Design incentive systems based on output

Characteristics of Scientific Management

1. General Approach

 Developed standard method for performing each job

 Selected workers with appropriate abilities for each job
 Trained workers in standards methods
 Supported workers by planning their work and eliminating interruptions
 Provide wage incentives to workers for increased output.

2. Contributions

 Demonstrated the importance of compensation for performance

 Initiated the careful study of tasks and jobs
 Demonstrated the importance of personnel selection and training

3. Criticism

 Did not appreciate the social context of work and higher needs of workers
 Did not acknowledge variance among individuals
 Tended to regard workers as uninformed and ignored their ideas and suggestions.

Bureaucracy organizations
A systematic approach developed in Europe that looked at the organization as a whole.
Bureaucracy is the combined organizational structure, procedures, protocols, and set of regulations in
place to manage activity, usually in large organizations.

According to Max Weber a bureaucracy was a rational, efficient ideal organization based on principles
of logic.

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Elements of Bureaucracy:

 Positions organized in a hierarchy of authority

 Managers subject to rules and procedures that will ensure reliable predictable behavior
 Management separate from the ownership of organization
 Administrative acts and decisions recorded in writing
 Personnel selected and promoted based on technical qualifications
 Division of labor, with clear definitions of authority and responsibility.

Administrative management:
A sub-field of the classical management perspective that focused on the total organisation rather than
the individual worker, defining the management functions of planning, organizing, commanding,
coordinating "and controlling
Henry Fayol and the Functions of Management

Henry Fayol was the first to systematize management behavior. He was the first to identify the major
functions of management: planning, organizing, leading, controlling, as well as coordinating and
commanding.

Management philosophy:

Unity of command

Each subordinate receives orders from one – and only one – superior

Division of work

Managerial and technical work are amenable to specialization to produce more and better work with the
same amount of effort.

Unity of Direction

Similar activities in an organization should be grouped together under one manager.

Scalar chain

A chain of authority extends from the top to the bottom of the organization and should include every
employee.
HUMANISTIC PERSPECTIVE

A management perspective that emerged around the late nineteenth century that emphasized
understanding human behavior, needs and attitudes in the workplace.

The Human Relations Movement

Proposed that better human relations could increase worker productivity. One of the earliest to study
motivation, Maslow proposed his “hierarchy of human needs” in1943.

Hawthorne studies

A series of experiments on worker productivity, begun in 1924 at the Hawthorne plant of Western
Electric Company Illinois, attributed employees increased output to manager’s better treatment of them
during the study.

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Human Resources Perspective

Maintained an interest in worker participation and considerate leadership but shifted the emphasis to
consider the daily tasks that people perform.

MASLOW HIERARCHY OF NEEDS:

DOUGLAS MCGREGOR THEORY X AND THEORY Y:

BEHAVIORAL SCIENCE APPROACH

Behavioral Science relies on scientific research for developing theories about human behavior that can
be used to provide practical tools for managers.

MANAGEMENT SCIENCE PERSPECTIVE

Management Science focuses on using mathematics to aid in problem solving and decision making.
Suitable for large scale business firms.

Example: forecasting, inventory modeling, linear and nonlinear programming, scheduling and break-even
analysis.

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1. OPERATION RESEARCH:

It consist of mathematical model building and other applications of quantitative techniques to

managerial problem.

2. OPERATION MANAGEMENT:

Refers to the field of management that specialized in the physical production of goods or services.
Operation management specialist used quantitative techniques to solve manufacturing problems.

3. MANAGEMENT INFORMATION SYSTEM:

It is the most recent sub field of management science perspective that are design to provide
relevant information to managers in a timely and cost efficient manner.

RECENT HISTORICAL TRENDS

SYSTEM

A set of interrelated parts that function as a whole to achieve a common purpose.

SYSTEM THEORY

The Systems Theory regards the organization as a system of interrelated parts

By adopting this perspective you can look at your organization in two ways

 A collection of subsystems
 A part of the larger environment

OPEN SYSTEM

A system that interact with the external environment

CLOSED SYSTEM

A system that does not interact with the external environment

ENTROPY

A tendency for a system to run down and die

SYNERGY

Synergy is when two or more people or organizations combine their efforts, they can accomplish more
together than they can separately.

SUBSYSTEM

A subsystem is a single, predefined operating environment through which the system coordinates the
work flow and resource use. The system can contain several subsystems, all operating independently
of each other

CONTIGENCY VIEW

The Contingency View emphasizes that a manager’s approach should vary according to the based on
situation. Contingency could be individual or situational.

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TOTAL QUALITY ANAGEMENT

Total quality management (TQM) describes a management approach to long-term success through
customer satisfaction.

LEARNING ORGANIZATION

An organisation where people are engaged in identifying and solving problem, continuous improvement
to grow the organisations, learn and achieve its purpose.

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