Management Theories and Practices Assignment I

Name: -Semere Tesfaye

Id: -MBAO/8977/14B

Submitted To: - Dr Gebre

January 2023
 TOPICS Four: - The Modern Era or School of Management

1. Discuss the Autobiography of each contributors/author to the school of

management thought that you have selected.
Henri Fayol was born in a suburb of Istanbul, Turkey in 1841. His father, an engineer, was
appointed building supervisor for the construction of a bridge over the Golden Horn (Galata
Bridge). The family returned to France in 1847. He studied mining engineering at the ‘École
National Supersedure des Mines’ academy in Saint-Étienne. Henri Fayol started his career as an
engineer at the mining company Compagnie de Commentry Fourchambeau Decazeville in
Commentry at the age of 19.

In 1878, Henri Fayol was invited to present a report on the self-ignition of coal exposed to air.
The report was well received and Fayol gained a good reputation as a result. He became an
influential person in the field of mining.

In 1888, he became the Managing Director of this mining company that employed over 1,000
people. Thanks to his practical knowledge and expert management skills, Henri Fayol was
excellent at guiding his company through difficult times. Under his leadership, the company
became one of the most successful and largest producers of steel and iron in France.

Henri Fayol was very successful in this position for over 30 years (until 1918).

In addition to being the Managing Director of the Commentry-Fourchambault mining company

(1900), Fayol was also one of the founders of the principles of modern management. In 1916 he
published his first book, introducing the term fayolism. The theory describes the role of
management in organizations and consists of five described primary functions of management
and fourteen management principles.

According to Henri Fayol, the five primary functions of management are planning, organizing,
staffing, directing, and controlling. The fourteen management principles are division of labor,
authority & responsibility, discipline, unity of command, unity of direction, subordination of
individual interest, reward, centralization and decentralization, scalar chain, order, justice,
stability of personnel, initiative and group feeling. His research work was in competition with
that of another great theoretician namely Frederick Taylor.

In 1916, Henri Fayol published his work experience in the book Administration Industrielle et
Generale (General and Industrial Management).A few years later, Frederick Taylor published his
theory about Scientific Management and Taylorism.

Henri Fayol married the French Adelade Celeste marie Saule in 1875. Together they had three
children: Madeleine-Marie-Eugenie, Enri Joseph and Marie-Celeste. Fayol died in Paris on
November 19, 1925. He was 84 years old.
2. What was the reasons/motives of each contributors/authors behind
developing such management theory

Henri Fayol is widely regarded as the father of modern management. His management theories,
mostly developed and published in the early 1900s, were a major influence on the development
of industrial management practice throughout the twentieth century.

His ideas were developed independently of other popular management theories of the time, such
as Human Relations or Elton Mayo’s scientific management theories — although they drew
similar conclusions about the importance of worker wellbeing to productivity.

Fayol’s school of thought had a stronger emphasis on the role of management in an organization,
when compared with its contemporaries in the field of organizational psychology. It’s associated
with an “industrial” approach to business, including cog-like replaceable workers and a rigid
hierarchy with strong top-level command.

3. Discuss clearly each authors/contributors theories/principles/assumptions.

The modern management theory offers guidance on practices you can apply within your
organization to lead individuals and processes effectively. This theory provides several different
approaches you can use to understand your business and how it operates. When you understand
these approaches, you can use them to identify and work with the varying internal and external
factors that affect businesses.

Management theories represent ideas that provide recommendations for management strategies,
frameworks and tools that organizations can implement to aid their workforce or culture. Leaders
can use these theories as guidance to meet organizational goals or motivate employees. They can
also apply ideas from different theories rather than solely relying on one management theory.
Modern management theory represents one of the numerous theories used by organizations. This
theory recognizes that today's organizations face rapid change and added complexities, with
technology serving as both a potential cause and solution for these factors.

When implementing this theory, managers use technology and mathematical techniques to
analyze their workforce and make decisions. This theory serves as a response to classical
management theory, which believes workers solely work for monetary gain. The modern
management theory believes that employees work for numerous reasons, including to achieve
satisfaction, happiness and desired lifestyles. With this theory, managers understand employees'
behaviors and needs and can implement strategies to meet those needs and support their skill
development over time.

 Boosts productivity: Modern management theory uses mathematical and statistical

methods to assess performance within an organization. Managers can use this data to
understand employee behaviors and develop solutions that maximize the potential of their
workforce. For example, they may implement processes that make employees' tasks more
efficient or offer training programs to improve their skills.
  Aids decision-making: Modern management theories often provide managers insights
into the factors they need to examine, which they can use to evaluate their organization or
department. When managers know what to look for, it can help them identify problems
and begin coming up with potential solutions. The use of mathematical techniques also
enables them to use data to support those solutions and final decisions.
 Improves employee engagement: As mentioned, the modern management theory
examines employees' motivation for working beyond financial gain. Managers who
utilize this theory can then identify and implement processes or procedures that take
employees' varying needs into account. If employees feel satisfied at work, it can boost
their morale and engagement and make them want to continue working for the
organization.
 Promotes objectivity: The modern management theory emphasizes the use of
mathematical techniques. These techniques allow managers to make decisions based on
data and evidence rather than personal opinions or feelings. They also enable the testing
of different options to assess which one best supports the organization. As a result,
managers can implement more effective solutions.
 Enables adaptability: Modern management theory recognizes that today's organizations
often exist within rapidly changing environments. This theory emphasizes the importance
of recognizing the influence of internal and external factors on business and encourages
managers to use several techniques and approaches to work with them. For example,
managers can use new technology to streamline processes or perform statistical modeling
when developing solutions.

4. What was the strengths and weakness of each contributors/authors

theory/principles?
 Positive attributes of Fayol’s theory are:

i. Fayol pioneered in distinguishing management functions from other functions/

activities of a business.
ii. He was the first to highlight the universality of management principles.
iii. His contribution to management theory is the foundation to development of
management thought. His functions of management provide systematic understanding
to the process of management. His theory is also known as management process
approach.

 Limitations of Administrative Management:

Fayol’s theory has the following limitations:

i. This theory is not well suited to modern business organizations which operate in the
fast-changing environment. In this process, they may not follow the principles of
management at all times. The principle of centralization, for example, where
subordinates are not part of the decision-making process may not enable the
organizations to adapt to the changing environment. In fact, workers’ participation in
 management is the feature of modern-day organizations. The concept of universality
of management, therefore, does not hold true.
ii. It over-emphasizes formal structure of the organization and ignores informal needs of
the workers.
iii. The impact of external environment is not taken into consideration. This theory was
introduced when environment was more or less stable. Contemporary management
cannot work without active interaction of organizations with the external
environment. Despite the limitations, Fayol’s contribution to management is
important. Though not always applicable in every situation, his principles are
generally in widespread use today.

5. Discuss the overall thoughts of the school

There are several different modern management approaches that managers can implement within
an organization. Managers can choose to use a combination of these approaches as guidance for
leading their teams and supporting organizational objectives. The three approaches of modern
management are:

Quantitative approach

The quantitative approach to management uses statistics and mathematical techniques to solve
complex problems. Depending on the business area, managers may use techniques like computer
simulations or information models to assess performance. This analysis enables them to
understand what is working and what is not within the business, then develop solutions to solve
or improve the issues they find. Managers can also use these techniques and data to determine
the benefits or risks of different ideas. This approach can help managers make objective
decisions based on data and facts, rather than personal opinions or feelings, that support the
business.

This modern management approach often consists of three branches:

 Management science: Management science focuses on the use of mathematical and

statistical methods to form effective business solutions and achieve goals. Examples of
these tools include the Program Evaluation Review Technique (PERT), the critical path
method (CPM) and sampling. Managers can use these tools in various situations,
including project management, budgeting and developing schedules.
 Operations management: In operations management , managers implement practices that
help make business and production processes more efficient. Depending on the situation,
this method may require managers to restructure or redesign their processes. Some of the
tools they use include forecasting, quality control methods and project planning. Often,
these managers aim to make more or better products through the more efficient processes
they implement.
 Management Information System: A management information system (MIS) represents a
database that organizes an organization's data, and managers use this system to support
informed decision-making. This system collects and stores real-time data, allowing
managers to run reports on areas like financials, timelines, personnel and inventory.
 Managers can then monitor this information and use it to assess performance and make
improvements or develop solutions as needed.

Contingency approach

The contingency management approach states that there is not just one management approach
that fits every organization. It believes that the optimal management style depends on the
situation. Leaders who utilize this theory do not adopt a single management style and instead
must identify and use different styles for different situations. As a result, these leaders also
develop additional traits and skills that ensure they can employ various management approaches
effectively. The use of diverse styles can help make these leaders more flexible and adaptable in
the workplace.

This theory outlines three variables that it believes influence an organization's structure: the
organization's size, the technology it uses and the leadership styles. An effective manager
understands these factors and how they may impact performance. For example, a small
organization may represent more flexibility and less separation between departments, whereas a
large organization may be more complex and divided. Managers in smaller organizations can
have more control over processes due to their flexibility and potentially make changes to them
more easily.

Systems approach

The systems approach of management states that organizations represent a complex collection of
various components that work together to reach a common goal. An organization is made up of
numerous subsystems, such as different departments. Managers using this theory examine how
these subsystems interact with and affect one another, rather than analyzing them separately.
They must also consider their surrounding environment and external factors that influence or
affect these systems. The systems approach further defines an organization by dividing it into
different components. These components demonstrate how different parts of the organization
work together toward a common goal:

 Inputs: Inputs represent the factors that are needed to create goods and services. For
example, inputs may include raw materials, capital, technology or information.
 Transformational process: Transformational processes represent the activities or abilities
that convert the organization's inputs into outputs. For example, these processes may
include employees' work tasks or operational activities.
 Outputs: Outputs represent the results produced by an organization. These outputs may
include products, services and financial results, such as profits.
 Feedback: Feedback represents information related to the organization's outcomes or
outputs. Leaders can use this information to influence or make decisions related to the
organization's inputs.

In the systems approach, management staff members develop goals and processes that support
their organization's overall objectives and performance. For example, department managers can
look to the department above them in the hierarchy to determine their department's purpose and
priorities. They may implement deadlines for their team that ensure that the other department can
begin and complete its necessary tasks. Aligning their department's activities with the next
department's goals can help processes run more smoothly and efficiently throughout the
organization.

6. What were the critics given to the school as strength/weakness?

 Strength
Every organization has its own specialty and specifications. Same situations may not occur in
every organization. It is the responsibility of managements to focus on all areas of business. All
informative data and its usage should do properly. While making strategies or business plans, it
should be considering that which area requires more attention. While using these approaches or
modern management theories, it is responsibility of executives and management to realize the
need of approach and then apply it according to situation. Every business has different way of
working, and then their problems must be different from each other. Now it’s the duty of
decision makers and team to use that methodology where it suits best. Old ways of management
not suitable for current and new environment of organization. We should adopt new strategies
and set targets according to current need and also give proper facilities to our employees, so that
they happily with organization and work with their full efficiency, and interest and improve the
productivity and profitability of business.

 Weakness/Limitation
These may not give maximum attention on human effort who gives their full attention to sort out
the problems. In some cases, senior management team has to take quick actions without
gathering any detailed information. Decision making is part of management but fully
management is not depending on it. It is considered that all the measurements and calculations
are done before decision making but in real it cannot be possible. Some tools or models may out
date which used in these approaches. Sometimes, with the changes of organization environment,
these approaches may not applicable. Some time, we pay less attention on basic management
issues while busy in making or adopting new approaches, so this is not a healthy thing for any
organization. Normally, theory is based on some one’s analysis or study, so theory is not a solid
thing on which large or important decisions are based or changed.

7. Based on the theories/principles of management developed in your selected

school of thought, select a large scaled organizations around your area as a case
and evaluate (compare and contrast) your case organizations management
practices/applications with the theories/principles of your selected school of
thought.

Bule Hora College of Teacher education (BHCTE) was established to play its part in the regional
efforts of bringing quality and excellence in Teacher Training for elementary schools,
community services, administrative functions/good governance, connecting the development of
cultural and natural resources with technology and its applications. The foundation stone was
laid by Oromia Education Bureau at 2000 E.C,
Bule Hora College of Teacher training is located 470 km south of Addis Ababa in Bule Hora
town, West Guji Zone, Oromia Regional State. The zone is divided into two agro-ecological
zones namely, semi-arid lowlands to the south and the more humid lands at higher altitudes to
the north The mean annual rainfall across the zone varies between 500mm and 700 mm with an
overall average of 648 mm. The area’s mean temperatures range from 25°C to 29°C during
hotter season and 14°C to 18°C during colder season of the year

At 2003 E.C the college started functioning with 19 teachers, 36 supportive staffs and 300
students. Know the college providing with reality regularly teaching learning service and others
services for society
Education is one of the hugest enterprises undertaken for the purpose of the development and
growth of the individual and to meet the needs of Society. It involves the activity of a large
number of people - students, teachers, parents and the public. For such a big enterprise we need a
sound system to run it and effective principles to secure efficiency. There is need for the co-
operative activity of all participants in the educative process for the achievement of its goals. It is
the task of management to set up such system and make it work smoothly and effectively. The
scope of educational administration therefore extends to a vast area and a large of activities.

Educational management is a means to achieve the goals of Education through effective and
efficient manipulation of available inputs. It is concerned with the utilization of adequate
resources available in the environment, in order to foster the attainment of the goals of teaching
and learning. It is always concerned with management of things as well as with human
relationships, based on a body of basic principles and aiming at educating the student. It has to
undertake a number of functions like: Planning, organization, direction, motivation, control, co-
ordination, decision making and the last one is reporting. It is a specialized activity which runs
the entire educational programmed with fruitful and constructive goal.
Educational institutions operate in a dynamic environment. The process of continuous
improvement thrives when the mindset of the stakeholders is geared towards constant
monitoring, problem identification and research. It means that Educational Administration
performs a three-fold job to ensure efficient working. These jobs are: Stating the specific
purpose, Mission of education and Mission of institutions. Thus, Educational management deals
with the optimal functioning of the institution by developing the human personality in a balanced
manner.

In view of the numerous activities that have to be performed by educational management its
scope may be broadly classified and delineated under the following areas:

A. Legal Structure
refers to the laws that have to be passed and rules and regulations is framed in order to determine
the institution education, their types, powers and standards of control, to fix up responsibility and
obligations, to decide the question of management and to set up organizational and Management
system.

B. Pupils.
Students are the center of the educational enterprise. It is for them that the entire process of
education and its constituents exist. It is therefore they determine the individual and social
purposes and procedures of their education. Rules for their admission, promotion, discipline, etc.,
have is framed and implemented.

C. Personnel
To run educational activities necessary and adequate man-power has to be found and engaged.
Personnel play the key-role in education. This is the fly-wheel or the driving force of the
educational system. Proper attention is paid to the workers. Men and women have to be selected,
recruited and trained and their qualifications and standards are prescribed. Good service
conditions like attractive salaries, security of tenure, welfare service and retirement benefits ise
offered to bring in the best available talent. Schemes for their direction, guidance and supervision
are also drawn up. Last but not the least, a good and effective programmed for the workers’
continuous development and professional progress also launched by the institution.

D. Finance
It is an important area which includes problems of income and expenditure and their accounting
and auditing. The policy of taxation and prescribing fees, etc., are formulated and implemented.
Rules and regulations are framed for budgeting, spending and controlling of funds and resources,

E. Curriculum
It is the means of achieving the goals of education. Educational management deals with the
problems of curriculum development and its time to time improvement. It has also to look after
the continuous evaluation and progressive improvement of the educational programme which are
urgently called for in view of the constantly going on scientific, technological and social
changes. Management pay close attention to the teaching learning programs and processes and
also to other important student services, such as health and recreation and psychological services
of testing, guidance and counseling and co-curricular activities, etc., are organized and managed
for the benefit of the students.

F. Physical Facilities
It comprises the area dealing with the problem infrastructure and provision and maintenance of
the school building, equipment and supplies, their purchase, upkeep and accounting.

G. Public Relation.
Education is a social enterprise run with the cooperation of students, teachers, parents and the
community. Educational administration has to make each of them contribute its due share to the
success of the institution. It should, therefore, maintain effective public relations. this involves
maintenance of records, issuing periodical reports, information and bulletins about past
achievement and future proposals. Management encourage community visitation, and secure its
participation and cooperation by a process of give and take, i.e., by utilizing community
resources and rendering useful services for its welfare.

Points of similarities:

Taylor’s and Fayol’s theories are similar to each other with respect to the following:

i. Both the theories represent pioneering work in the study of management. They are the
foundation to the study of management.
ii. Both Taylor and Fayol found ways to increase the output.
iii. They emphasize on financial needs which can be satisfied through financial
incentives.
iv. They focus on formal jobs and work schedules to satisfy individual and
organizational needs.
v. They view organizations as independent units with little or no interaction with the
external environment.
vi. They develop a set of management principles important for industrial progress.
vii. Both the theories are developed on practical experience in their respective
companies.
viii. Both emphasize that managerial qualities can be acquired. Therefore, organizations
should attempt to develop these qualities.

Points of differences:

While Taylor focused on efficiency of operating workers, Fayol aimed at improving efficiency of
the organization as a whole. Fayol’s theory, therefore, has wider applicability.

The theories differ from each other on the following grounds:

i. Taylor is known as the father of scientific management while Fayol is known as the
father of modern management. He introduced the Administrative Management Theory.
 ii. Taylor emphasized on increasing productivity at the workers’ level while Fayol
emphasized on managing the organization as a whole.
iii. Fayol’s principles of functional management focus on the entire enterprise while Taylor’s
principles of scientific management focus on a segment of the enterprise — operating
level.
iv. Taylor emphasized on organizational productivity through increase in worker’s efficiency
while Fayol emphasized on overall administration of the organization.

8. Give the suggestion or recommendations regarding the organizations

practices weakness and strength based on the schools theories of
management.
Quantitative approach deals with the observation of the modeling of numerical manifestation to
take decisions and helps to manager to distinguish the overall organization.
System approach comprises that organization is look like a system there exist, super system, sub-
system and a system consist of inputs, transformation, output and feedback, manager abilities is
applicable in open and close system and better realization of the interaction and interrelated
activities of the unabridged system in system of framework.
A contingency approach indicates the whole action of the organization is situational context,
manager matching with that situation; there need to distinguish of the manager to the
organizational situation not the particular one to develop. No specific tools or system superlative
for the situation, contingent is the best substance to keep an eye on best solution of the situation
that can term what procedure or act the way track. It is deliberate that this study of contemporary
theories of management analysis from three altered corresponding but same of managerial and
organizational issues consistency, quantitative shown that practical issues of mathematical
judgment to proceeds decision system find the interrelated or interdependent issues to recognize
the overall organizational situation, contingency theory of management find at the integration
manner state of affairs the best think to cogitate from hardheaded style. It is seemed that
contingency is not the universally accepted theory but indicating the best way to do action of
situational consideration because situation is the ultimate question of management at all the time.
Therefore, the college of teacher education should use the modern management approach to
make decision.