Llover C.

Yap
MPA-OM: Management Planning and Control

System Theory
The view of organizations as open social systems that must interact with their
environments in order to survive is known as the systems theory approach. Organizations
depend on their environments for several essential resources: customers who purchase the
product or service, suppliers who provide materials, employees who provide labor or
management, shareholders who invest, and governments that regulate. According to Cutlip,
Center, and Broom, public relations’ essential role is to help organizations adjust and adapt
to changes in an organization’s environment. Cutlip, Center, and Broom (2006).
Case
Successfully changing the role of an Environment, Health and Safety department
(EHS) in an existing, growing and profitable oil and gas organization requires consideration
of the environment, the industry, the local culture, the organization and the people within it.
The complex interplay of various systems within an organization and external to it, must be
understood in order to create lasting and effective solutions to challenges. This is especially
borne out in the case of Emirates National Oil Company (ENOC), where the evolution of its
EHS department has only ever been partially successful and has repeatedly undergone
reorganization since its inception. In examining ENOC’s EHS department and the interplay
between the different systems and subsystems, systems theory and primarily one of Gareth
Morgan’s metaphors for organizations – ‘organization as an organism’, have been used,
making it simpler to view the various facets of running a successful EHS department and
managing its many influencing factors effectively.
Analysis
Given the complexity of ENOC’s EHS department, and its interplay with the various
systems within and outside the organization, running and managing an EHS department
requires the consideration of systems thinking. We have seen via the case that this
consideration becomes central to the process of structuring and designing of an organization
or department and that the structure and design will evolve as the systems impacting the
department evolve. Hence, using the varied frames offered in systems thinking becomes
critical to a department or organization like ENOC EHS in its changing state. Gareth
Morgan’s metaphors simplify the application of systems theory to the changing states of
organization. With the metaphors, depending on the problem / situation, the organizations
have a variety of applications to select from in systems thinking. They may even use
systems thinking as an overarching framework and models from different fields for targeted
impact. The hybrid model used by ENOC is a great example of this approach. Borrowed
from organic chemistry and put into an organizational structural context in response to the
internal and external environment. Going forward, ENOC could use Schien’s work coupled
with Bronfenbrenner’s ecological model of human development in their culture creation
process, where the ‘developing individual’ would be every staff member in the company to
create the desired culture. Given the ongoing research on organizational change, the degree
of success to be achieved in the culture creation model, will be directly proportionate to the
extent of successful uncovering of the underlying assumption followed by an aligned
communication campaign that will help address and replace these assumptions.
Llover C. Yap
MPA-OM: Management Planning and Control

Administrative management theory

Administrative management theory attempts to find a rational way to design an

organization as a whole. The theory generally calls for a formalized administrative structure,
a clear division of labor, and delegation of power and authority to administrators relevant to
their areas of responsibilities.

Case

The primary purpose of the administrative management theory is to find a good

balance between the structure of the administration and the mission of the organization. It
emphasizes the importance of organizational effectiveness. According to this theory,
administrative efficiency is improved when defined lines of authority are present and those at
the top of administration have the most responsibility for the organization. Administrative
efficiency is correlated with departments being divided by a clear separation of labor and
administrators with the most responsibilities serving as organizational authority figures
(Tompkins, 2005).
The four primary scholars associated with the administrative management theory
include Henri Fayol, James D. Mooney, Alan C. Reiley and Luther Gulick. Each of these
important individuals have had a strong influence on the development of this theory. Rather
than focusing on the “human factor,” these theorists emphasized structural variables. They
thought that in order to obtain individual and organizational objectives, a well-developed
administrative structure must be present (Tompkins, 2005).

Analysis

It is important to incorporate theory into practice. Theories serve as the foundation

upon which individuals generate new knowledge and ways of thinking about the world. The
two articles discussed earlier identified specific practical applications of the administrative
management theory in practice. The following section will analyze how the administrative
management theory can be applied to the practice of organizing adult and community
education programs.
The administrative management theory has direct practical applicability to adult and
community education programs, whether they are large or small, private or non-profit, simple
or complex, etc. Every type of organization is going to need a governing body of
administrators that coordinate the program. Even if it is a non-profit agency, for example,
they typically have a board of directors that serve as administrators, holding roles such as
making decisions pertaining to the budget. Every adult and community education program
values reaching their organizational goals; therefore, incorporating administrative theoretical
components will help each unique program achieve their purpose.
According to Tompkins (2005), this theory helps to generate ideas including “how to
centralize administrative direction and oversight without unduly constraining managerial
discretion, how to delegate authority and responsibility to subordinates without losing control
over their actions, whether reliance on formal authority provides an adequate basis for
engaging and motivating employees, and to what extent managers should insist upon strict
adherence to the formal chain of command” (p.123). This theory helps to promote
coordination and control while also ensuring political accountability, which is a practical
concern in present-day society. This theory has directly applicability to publish administration
which is founded on the basis of law; therefore, structure is essential in holding those
responsible for carrying out the law accountable for each of their actions (Tompkins, 2005).
Llover C. Yap
MPA-OM: Management Planning and Control

Bureaucratic management theory

According to the bureaucratic theory of Max Weber, bureaucracy is the basis for the
systematic formation of any organization and is designed to ensure efficiency and economic
effectiveness. It is an ideal model for management and its administration to bring an
organization’s power structure into focus.

Case

All bureaucratic organizations share similar characteristics. These include a clear

hierarchy, a division of labor, a set of formal rules and specialization. Every employee has
her place in the chain, and everyone's role is supervised by someone on the next level up.
Decisions flow from the top down.
Employees are organized into units based on their skills and the type of work they
do. They are treated equally and maintain impersonal relationships with their colleagues and
managers. All decisions and actions taken by the company are recorded in writing. Rules
rather than people form the basis of the organization. According to Weber, these processes
contribute to effective and efficient goal attainment.
Colleges and universities, police departments and government agencies are all
bureaucracy examples. They rely on standardized policies and procedures to maintain
control and uniformity. An insurance company, for example, may embrace this organizational
structure to ensure its employees comply with customer data protection laws and follow
industry's best practices.
Another example of a bureaucratic structure is the Military. The troops are divided
into brigades, which are divided into battalions. Battalions are split into companies, which are
further divided into platoons. Each platoon consists of several squads. The same happens in
a bureaucratic organization. Everyone has clearly defined roles and levels of authority.
Other bureaucracy examples include the state department of motor vehicles,
hospitals and utility companies. In general, this organizational structure is used by
corporations, governmental agencies and large companies that employ hundreds or
thousands of people and need to monitor outcomes closely.

Analysis

Bureaucracy in organizations has long been associated with clear hierarchies, a

high degree of formality, a rigid division of labor and strict policies that provide
consequences to those who disobey. These features tend to get a lot of criticism, but there
are plenty of advantages to bureaucracy, especially when the structure is built with an
emphasis on equality.
Even though the bureaucratic structure has received a lot of criticism, it has some
advantages. Accountability, predictability, structure and job security are just a few to
mention. Furthermore, a bureaucratic culture is based on impersonal relationships,
discouraging favoritism. In this kind of organization, everyone has the same chance to
succeed.
While bureaucratic organizational structures can help stabilize an organization, the
structure doesn't necessarily empower its employees, which creates a host of other
problematic issues such as reducing innovation and productivity.
No organizational structure is perfect. Before choosing one for your company, take
the time to learn about the different options. A bureaucratic structure, for example, may
lead to increased productivity and performance but it gives employees less opportunity for
creativity and decision-making.
Llover C. Yap
MPA-OM: Management Planning and Control

Scientific Management Theory

The founding father of scientific management theory is Frederick W. Taylor (1856-

1915). He was an American inventor and engineer. His two most important works were Shop
Management (1903) and The Principles of Scientific Management (1911).
The husband and wife team of Frank Gilbreth, Sr. and Lillian Moller Gilbreth
contributed to the theory. This duo continued the practice of time and motion studies started
by Taylor, believing they could find the best way to perform each task studied.

Case

In 1911, Frederick Taylor published The Principles of Scientific Management, in

which he explains how productivity can be greatly improved by applying the scientific
method. The scientific method used in management is designed to train workers in the best
way possible to get the most production out of your employees. Scientific management took
away most of the autonomy from the working man and simplified jobs down to specific tasks.
Taylor felt that even the simplest tasks could be managed in a way to greatly improve
productivity and he felt that the scientific method greatly out produced the initiative incentive
method, because the initiative incentive method increased productivity but placed
responsibility on the worker to figure out how to do it. Taylor, then began to implement the
time studies, where he used a stopwatch to time a worker’s sequence of motions to
determine the best method for optimal performance.

“After many years of studies and experiments, Taylor came down to four principles of
scientific management.

1. Replace rule-of-thumb work methods with methods based on a scientific study of the
tasks.
2. Scientifically select, train, and develop each worker rather than passively leaving
them to train themselves.
3. Cooperate with the workers to ensure that the scientifically developed methods are
being followed.
4. Divide work nearly equally between managers and workers, so that the managers
apply scientific management principles to planning the work and the workers actually
perform the tasks. “

Analysis

Scientific management theory seeks to improve an organization's efficiency by

systematically improving the efficiency of task completion by utilizing scientific, engineering,
and mathematical analysis. The goal is to reduce waste, increase the process and methods
of production, and create a just distribution of goods. This goal serves the common interests
of employers, employees, and society.
Scientific management theory is important because its approach to management is
found in almost every industrial business operation across the world. Its influence is also felt
in general business practices such planning, process design, quality control, cost
accounting, and ergonomics. Your knowledge of the theory will give you a better
understanding of industrial management. You'll also understand how a manager can use
quantitative analysis, an examination of numbers and other measurable data, in
management to improve the efficiency and effectiveness of business operations.
The Scientific management method did increase productivity, but also had its
drawbacks. The core job dimensions of skill variety, task identity, task significance,
autonomy, and feedback were all missing from the picture of scientific management. Later
Llover C. Yap
MPA-OM: Management Planning and Control

theorists also argued that the method left out the “human equation,” and failed to treat the
workers as thinking, feeling, human beings.

Theory of X and Y

Douglas McGregor (1906-1964) developed a philosophical view of humankind with

his Theory X and Theory Y. These are two opposing perceptions about how people view
human behavior at work and organizational life.

Case

Theory X and Theory Y allocate the job of management into two styles. And, just like
your algebra class, X and Y don’t work totally independently, although you can manage in a
style that is mostly a Theory X or Theory Y management style.
Your management style evolves as you gain cues from your work environment, the
type of work you need to accomplish, the locus of control of your workforce (intrinsically
driven or externally), the strength and talent of your workforce, and your ultimate beliefs
about how people are motivated. 
The variables explain why in some situations, you will find the Theory X management
style more effective. In others, you will find the Theory Y management style necessary to
lead people. In yet a third setting, a combination of the two management styles will help you
achieve your goals.

Analysis

With Theory X assumptions, management’s role is to coerce and control employees.

With Theory Y assumptions, management’s role is to develop the potential in employees and
help them to release that potential towards common goals.
Theory X is the view that traditional management has taken towards the workforce.
Many organizations are now taking the enlightened view of theory Y. A boss can be viewed
as taking the theory X approach, while a leader takes the theory Y approach. With the
onslaught of B2B social media, and the breakdown of formal business approach, business is
also being conducted more around Theory Y than old school Theory X.
Moreover, the underlying idea with Theory X management style is that humans are
inherently lazy and will only work if the manager is forcing them to work. Without a manager
standing there saying, “get back to work," nothing will happen. This style makes the
assumption that humans only work because they have to work, so the motivation to work
must come from an external source—the manager.
In Theory Y management style, people gain self-worth from doing meaningful work. If
the work is fulfilling, the employees will do a good job because it’s important to them.
You can see how these two theories can conflict and yet have a lot of crossovers. It’s
possible to have both situations true for a manager, depending on the job and the person.
Some people are lazy and some are motivated by the desire to do a good job.
Llover C. Yap
MPA-OM: Management Planning and Control

Human Relations Theory

The Human Relations Theory has human beings at its center as can be understood
by the name, but it also had more to it. It viewed human beings not as machine models but
as individuals with differing psychological motivations and with distinct and dynamic group
behavior affecting performances.

Case

Elton Mayo is considered the founder of the Human Relations Theory.

Prior to this trend, Elton Mayo already started an experiment in the Hawthorne plants
in 1924; the Hawthorne experiment. There was a great deal of discontent among the 30,000
workers in the Hawthorne plants in Chicago in the early twenties of the last century. This
was somewhat peculiar, because this phone parts plant already acted extremely
progressively towards its workers (through pensions and sickness benefits), something
which was almost unthinkable in this period.
Elton Mayo and his assistants, including Fritz Roetlishberger, conducted research
into changing working conditions. They experimented with light, duration of breaks and
working hours. A group of women were exposed to either more or less light. It turned out
that, regardless of the amount and duration of lighting, this had a positive effect on their
performances. The same was true for rest periods; shorter or longer breaks both led to an
increase in labor productivity.
The conclusion drawn from the Hawthorne research was that giving attention to
employees resulted in improved performances. The group of workers who were involved in
the search felt their voices heard and experienced a feeling of greater personal freedom.
The workers were pleased that their assistance was requested, which they believed led to
their higher job performances.
Moreover, during the study, senior officials regularly visited the workplace, making
the workers feel like they belonged to a certain elite group. This personal attention
stimulated the group to work even harder together and give their all for the organization.
Collaboration in an informal group is also one of the main aspects of the Human Relations
Theory.
Elton Mayo concluded that the needs of workers were often based on sentiment
(belonging to a group and thus having a sense of value) and that this could lead to conflicts
with managers, who mainly focused on cost reduction and efficiency.
And thus, he came to the following final conclusions:
 Individual employees must be seen as members of a group;
 Salary and good working conditions are less important for employees and a sense of
belonging to a group;
 Informal groups in the workplace have a strong influence on the behavior of
employees in said group;
 Managers must take social needs, such as belonging to an (informal) group,
seriously.

Analysis

In the era of the Human Relations Theory, the concept of ‘labor motivation’ is given a
new meaning compared to the Scientific Management era. The fact that personal attention
led to improved performances was a completely new perspective. The way employees think
and act at work is not only influenced by rules, procedures and requirements imposed by
management.
Llover C. Yap
MPA-OM: Management Planning and Control

Attention, respect, interest shown, and social/ interpersonal relationships are just as
important. These kinds of human interactions trigger an emotional sense in employees,
which is often referred to as a person’s soft side. This soft side consists of emotional or
irrational logic and can strengthen rational logic, but at the same time also weaken or
eliminate it. Rational logic focuses on production and effectiveness, and both can thus
diametrically be opposed to each other, which in turn leads to internal conflicts and
dilemmas.
The complexity of human behavior increases even more if an employee indicates his
desires and knows when he will make certain decisions. From a behavioral perspective,
employees can also decide what behavior they prefer and how this behavior manifests itself.
As a result, there is no single pattern that can automatically be associated with a specific
situation.
Every person is very much different in terms of character and behavior. Everyone
has different values, standards and desires, which results in demonstrably different behavior.
This complex humanity is an important factor in guiding employees. It is therefore the task of
managers to identify the individual needs of employees and act accordingly. This is the
essence of the Human Relations Theory.
Llover C. Yap
MPA-OM: Management Planning and Control

Classical Management Theory

Classical management theory is based on the belief that workers only have physical
and economic needs. It does not take into account social needs or job satisfaction, but
instead advocates a specialization of labor, centralized leadership and decision-making, and
profit maximization.

Case

Classical management theory was introduced in the late 19th century. It became
widespread in the first half of the 20th century, as organizations tried to address issues of
industrial management, including specialization, efficiency, higher quality, cost reduction and
management-worker relationships. While other management theories have evolved since
then, classical management approaches are still used today by many small-business owners
to build their companies and to succeed.
One of the advantages of the classical management structure is a clear
organizational hierarchy with three distinct management levels. Each management group
has its own objectives and responsibilities. The top management is usually the board of
directors or the chief executives who are responsible for the long-term goals of the
organization. Middle management oversees the supervisors, setting department goals
according to the approved budget.
One of the advantages of classical management approach is the division of labor.
Projects are broken down into smaller tasks that are easy to complete. Employees'
responsibilities and expectations are clearly defined. This approach allows workers to narrow
their field of expertise and to specialize in one area. The division of labor approach leads to
increased productivity and higher efficiency, as workers are not expected to multitask. Small-
businesses owners can benefit from taking this approach if they are looking to increase
production with minimal expense.
According to classical management theory, employees should be motivated by
monetary rewards. In other words, they will work harder and become more productive if they
have an incentive to look forward to. This gives management easier control over the
workforce. Employees feel appreciated when being rewarded for hard work. A small-
business owner can take this approach to motivate the employees to achieve production
goals.
The autocratic leadership approach is the central part of classical management
theory. It states that an organization should have a single leader to make decisions, to
organize and direct the employees. All decisions are made at the top level and
communicated down. The autocratic leadership approach is beneficial in instances when
small-business decisions need to be made quickly by a leader, without having to consult with
a large group of people, such a board of directors. Small businesses, especially sole
proprietorships, can have an advantage in taking this approach, as they need a strong
leader to grow.

Analysis

Organizations today are mostly influenced by the external environment (continuous

technology change, globalization, fierce market share competition, hiring and retaining front
line workers and executives) that often fluctuate with time. Yet Classical Management
Theories only portrays the image of an organization that is not shaped by the external
influences. In today’s world of Classical Management Theories are gradually fading and the
Llover C. Yap
MPA-OM: Management Planning and Control

principal reason behind this is that people and their needs are considered as secondary to
the needs of an organization by Classical theorists. Nowadays, Human Resource
Management has also very seriously challenged the scientific approach. Furthermore, in
organizations the Bureaucratic Management is rapidly giving way to the Matrix structure.
However, Classical Management Theories are still important because they had introduced
the concepts of management for intellectual analysis and provided ideas which were further
developed by the subsequent management schools of thought.
Contingency Management

Contingency management is a management approach based on the belief that if you

want to operate your business effectively in the long run, you must be fully prepared for
emergency events or disruptions.
A contingency approach to management is based on the theory that management
effectiveness is contingent, or dependent, upon the interplay between the application of
management behaviors and specific situations. In other words, the way you manage should
change depending on the circumstances. One size does not fit all.

Case

Without wishing to be alarmist, the modern world does tend to place increasing
expectations on businesses and organizations to prepare contingency plans in response to
serious disruptions and emergencies.
Recent examples of major crises and emergencies that have caused massive
disruption to business and organizations of all sorts include the Buncefield Fuel Depot Fire
and the London Tube and Bus Bombings.
On a more ordinary level, most organizations are now substantially dependent on the
internet. Does your organization have a contingency plan for when the next big virus hits, or
if connections are lost on a wide scale for a few hours? How does your organization fare
under extreme weather conditions - cold or hot, dry or wet? Have you checked how the
football world cup might affect your staffing levels? What else could happen in the future that
you could have prepared better for?
External factors of all sorts affect organizations, and with a bit of thought and
planning, many of the worst risks can be anticipated and averted.
Notwithstanding the age-old government ploy that seeks to reinforce power and
control by emphasizing risks and threats, it makes sense for businesses and organizations -
especially large organizations with systems, infrastructures, and services that are
susceptible to serious interruption by emergencies and disasters - to have good solid
contingency plans ready (and communicated) that will minimize disruption and enable best
possible continuity when and if a major (or minor) crisis occurs that provides a real risk to
your operational continuity.
The principle certainly applies in a very real sense to all businesses and
organizations in anticipating and planning continuity in response to smaller less dramatic
emergencies, which in truth are a lot more common and likely than the next outbreak of
Mongolian Hamster Flu or an earth-landing by a delegation from the planet Zarg.
Today's world is an increasingly tightly bundled collection of highly tuned, high-
capacity, and relatively vulnerable systems: everywhere you look, tolerances are fine,
efficiencies are super-optimized, especially in systems of communications and transport.
When a big system fell over 20 years ago, life could pretty well carry on as normal. Today
we are far more vulnerable: the house of cards has evolved into a huge city, so when it falls
apart it does so in a much bigger way, and it's as well to anticipate and plan for it, whatever
'it' might be.

Analysis
Llover C. Yap
MPA-OM: Management Planning and Control

“What if?” It’s the question that haunts any business continuity professional
throughout his or her career. Of course, there are a million possibilities that might occur at
any time. But creating a business contingency plan can at least help you to prepare for the
unknown.
A business contingency plan is a course of action that your organization would take if
an unexpected event or situation occurs. Sometimes a contingency can be positive—such
as a surprise influx of money—but most often the term refers to a negative event that affects
an organization’s reputation, financial health or ability to stay in business. These include a
fire, flood, data breach, major network failure and more.
Contingency plans are an important part of your overall business continuity strategy
because they help ensure your organization is ready for anything. Many large businesses
and government organizations create multiple sets of contingency plans so that a variety of
potential threats are well-researched and their appropriate responses are fully practiced
before a crisis hits.
Think of contingency planning as a proactive strategy, whereas crisis management—
the other piece of the business continuity puzzle—is more of a reactive strategy. A
contingency plan helps to ensure you are prepared for what may come; a crisis management
plan empowers you to manage the response after the incident occurs.