Week 2

Pre – read text: Chapter 2.

Topic: Development of Management

Theory
Week 2. Chapter 2. Development of Management Ideas.

Discussion Questions

1 Why is it important to understand the different perspectives and approaches to management theory that
have evolved throughout the history of organisations?

2 Based on your experience at work or school, describe some ways in which the principles of scientific
management and bureaucracy are still used in organisations. Do you believe these characteristics
will ever cease to be a part of organisational life? Discuss.

4 Which of the characteristics of learning organisations do you find most appealing? Which would be
hardest for you to adopt?

6 What is the behavioural sciences approach? How does it differ from earlier approaches to management?

7 Explain the basic idea underlying the contingency view and provide an example.

9 Why can an event such as the Hawthorne studies be a major turning point in the history of management,
even if the idea is later shown to be in error? Discuss.
10 Identify the major components of systems theory. Is this perspective primarily internal or external?
Summary Notes
Chapter 2. The Development of Management Ideas. Construction of a way of viewing management or
developing a theoretical framework for making management decisions.
A. Historical forces have influenced the way managers’ think about management.
i. These forces include:
 Social
 Political
 Economic
B. *Management Perspectives over time have evolved and developed through several stages and are all
based on assumptions.
*Learning Organisation – a most recent perspective. Main idea – everyone is involved in problem
solving as opposed to the traditional management focus of developing efficiency.
*Characteristics of learning organisation
 Leadership –create a shared vision – “control with” rather than “control over”
 Team based structure – self directed teams
 Employee empowerment
 Open information
 Participative strategy
 Strong adaptive culture
C. *Management approaches which have led to the development of the learning organisation
i. *Classical Perspective: Key idea – improve job & organisation efficiency
 *Scientific Management – used 4 scientific management principles to improve job efficiency &
eliminate soldiering (Frederick Taylor)
 *Bureaucratic Management – manage an organisation on an impersonal, rational basis using
elements of Bureaucracy to improve organisational efficiency. (Max Weber)
 *Administrative Management – use 14 administrative principles and functions of management
to improve organisational efficiency (Henri Fayol)
ii. *Humanistic Perspective – understanding human behaviour, needs & attitudes in the workplace is
important for successful management.
*Hawthorne Studies led to the discovery that productivity increased with positive employee
relations/treatment. (Elton Mayo)
 *Hierarchy of needs – 5 levels of needs. Jobs should be designed to meet higher level needs
(Abraham Maslow)
 Theory X & Y – Managers assumptions about workers influences the way managers manage
and employees respond (Douglas McGregor)
 Behavioural Science – draws on findings of sociology, economics and psychology and its
influence on strategy, structure, motivation, communication and HRM
  *Management science – uses maths, stats and technology to solve management problems
iii. Recent Historical Trends – extensions of the humanistic perspective
 *Systems theory – organisations should be viewed as a system to see how interrelated parts
function as a whole to achieve an organisations’ purpose.
 *Contingency view – applying effective management principles depends on the situation
 Total Quality management – focuses on managing the total organisation to deliver quality to
customers.
 Technology and sustainability – managing the technology-driven workplace through the use of
E-business and E-commerce. Sustainable development requires that business satisfies a
variety of stakeholders not just profit for shareholders.
Sample Test/ Exam Questions.

Sample Mid semester Test Question

1. Explain the main ideas of the systems theory.. How does systems
theory differ to the contingency theory of management? (Include in your answer an
explanation of both theories.)

Sample Exam Questions

 Contrast the three major approaches within the classical viewpoint: scientific
management, bureaucratic management and administrative management.

 What were the Hawthorne studies? What contribution did they make to
management theory?

 Explain what is meant by the Human Relations theory. How is Human Relations
theory different to Classical Management theory?

 Explain what is meant by the systems viewpoint of management theory. Also

contrast open and closed systems.

 Outline the main ideas of Quantitative Management.

 Explain the main ideas of Contingency theory. How is the Contingency theory
different to Classical management theory?

 List and describe the major characteristics of Weber’s Ideal Bureaucracy. To

which school of management thought does this theory belong?
Essay

As a Management historian you have been asked by one of your subordinates to write an
essay which explains in detail the development of management theories. You have
agreed to do this. Write an essay on the above topic to submit to your subordinate.
Case Study : Ice - Cream Plant

Jim is the manager of an extra creamy ice-cream plant. In this plant sales have been
increasing every quarter for the past four years, until last quarter. During that quarter sales
slipped 17 per cent, production was about 15 per cent short of projections, absenteeism was
about 20 per cent higher than the previous quarter, and tardiness increased steadily. Jim
believes the problems are probably management related , but is uncertain about causes or
steps to correct them. Jim calls in three consultants, all of which support different views of
management. You are one of the three consultants which Jim calls in to offer causes for the
problems and steps which he can take to solve the problems. ( From Bartol, K., Martin, D.,
Tein, M. & Matthews, G. (1998). Management. A pacific rim focus. Australia: McGraw-Hill.
P.83)

1. What is the problem?

2. Suggestions as to how the problem could be solved?

Preparation for Week 3.

1. Revise the content of the lecture on Chapter 2. It is vital to revise the content of
each lecture as soon as possible after the class (preferably within 24 hours) so you
can develop understanding and be able to remember the content to apply to
problem solving in the next class. Revise the process for learning management
theory outlined in week 1.
Knowledge and understanding of management theory is critical to being able to add
depth and breadth to understanding people and performance problems.

2. Read through the tute exercise guidelines. Locate 2 other references to use for the
tutorial exercise due in week 4 and become familiar with the content on the 10 roles
and 3 skills of a manager. Read through the case for the tute exercise and begin to
identify where the manager is using those roles and skills. Begin writing up your
draft submission.

3. Prepare for the tute test in week 3 by revising the content of lectures 1 & 2. Getting
on top of the content each week helps to make early preparations for the mid
semester test and final exam and saves cramming during the last week before each
assessment. Tests and exams require a thorough knowledge of the content so that it
can be recalled and questions relating to the content adequately answered.

4. Either prepare answers to the tute questions outlined on page five of the unit
outline.ie Chapter 2: 1,2,4,6,7,9,10. If you don’t have access to a textbook yet the
questions are listed on the portal under MAN1100 week 1 Tutorial Questions.
OR
Prepare your own summary notes from the content of chapter 2 of the text using
the summary notes outline as a basis to start with. A copy of the summary notes
to start with are on the portal under Week 2 in MAN1100.

5. Memorise the steps (below) in the model for approaching a case study. This third
part of our overall model for generating solutions to management problems and is
critical to understanding and solving a problem.
The steps are:
1. What is going on in this Situation? (Familiarity with the situation.)
 
– Who are the major players (people, groups) in this case?
– What are the major issues or realities which are being confronted?
– Who has concerns and what are those concerns? Below the waterline issues.
 
2. What management theory is relevant to this case? (Identify a Framework of
Management Theory relevant to this case. In this course it is generally the theory
from 1 chapter)
 
3. How can I use the knowledge from my theoretical framework and management
skills to better understand & manage this situation? (Applying theory to manage
the case situation.)

6. Write in the box the number of hours you invested this week in processing the
management content and preparing for week 3.