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Presented by:
Eastern Warriors

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 This presentation would be showcasing the
evolution in Management practices within an
organization.
 e t eories and approac es discussed would be as
follows:

{  e Classical approac
{
uman Resource Approac
{ odern Approac


  
 

The Classical perspective to management

emerged during the nineteenth century and
continued into the twentieth century.
Due to the new challenges that organizations
faced, management sought methods of
efficiency which included a rational and
scientific approach.

›
  
 

 

   

 

 
{ Jcientific Management by Frederick Taylor
{ Administrative Principle by Henry Fayol
{ Bureaucratic Organization by Max Weber

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Jcientific Management
by Frederick W. Taylor
1856 - 1915

Jcientific Management or Taylorism was a scientific

method which was used to optimize the way in which
tasks were performed thus improving the labour
productivity. One of Taylor0s philosophy was In the
past man must has been first. In the future, the
system must be first.

d
The General Concept of Jcientific Management
îevelop a standard met od for performing a task and train
workers to use t ese met ods.
(anagers developed precise procedures based eac organizational task)
Provide workers wit t e proper tools needed to work.
Selected employees were c osen for specific tasks.
(Workers t at were stronger bot mentally and p ysically were assigned
specific tasks)
Wage incentive were provided w en output was increased.
(Employees were motivated to increase t eir output wit t e use of
additional benefits

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 îisadvantages of Jcientific Management
Workers felt exploited because t eir social aspect of life was
disregarded.
(Workers were treated as mac ines and not umans)
anagement stereotyped workers and did not allow t em to
prove t eir skills in ot er areas.
Workers were not allowed to form innovative ways to
perform t eir tasks.


Further contributions to Jcientific Management
were made by Henry Gantt (

), also
Lillian M. Gilbreth (1878-1972) (

 

 




and Frank
B. Gilbreth (1868-1924) (
 
)

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×dministrative Principle
by Henry Fayol
1841 - 1925

 is t eory dealt wit t e entire organization (bot workers and

management) w ic functioned wit four basic principles. W ic
are:
ÿ

ƛ Eac person receives order from  
one superior.



 ƛ Specialization and efficiency were
incorporated in workers.
ÿ



 ƛ Related activities were grouped under
one manager.
  
ƛ is t e organizational structure w ic starts
from t e CEO0s to t e labourers. ë
×dministrative Principle
 e five basic functions or elements of
management (Management Process) are:
Planning
Organizing
Controlling
Coordinating
Commanding (leading/directing)
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Further contributions to ×dministrative Principles
were made by Mary Parker Follet (1868-1933)
(



 
 

!

 

 





 
  ) and Chester I. Bernard (18861961)
(  

!




 
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" )#

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Bureaucratic Organizations
by Max Weber
1864 - 1920

Weber0s t eory concentrated on t e fact t at positions

s ould be structured w ere t ere must be a clear line of
aut ority ( ierarc y) and all persons must be selected by
competency for t e job and promotion (promotion based
on ac ievement and a specialized division of labour) also,
a formal structure and position rat er t an an individual.

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 èiews and Misconceptions of
Bureaucratic Organizations
ood bureaucracy removed or reduced opportunities for
corruption, favouritism and arbitrary exercises of power
(instead of bribing a single official, you now ave to bribe
several officials) .
Sometimes extra paperwork is added to a system.
Identified bureaucracy wit any large organization.
Sometimes bureaucracy would be mistaken for civil service
(governmental organizations) but actually is being used at
various types of organizations.
Bureaucracy is inflexible.

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 ©  

The Human Resource perspective to

management suggested that jobs should be
designed to meet higher levels needs by
allowing workers to use their full potential.

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©   

 

   

 

 

{ The Hawthorne Jtudies by Elton Mayo

{ The Maslow Theories of Human0s Need
{ Mc Gregor0s Theory (x y theory)

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 ©  


After a series of studies, it was proven t at employees
increase t e level of output w en given better
treatment.

e carried out researc at t e
awt orne Works of t e

Western Electric Company in C icago.

e and is team of researc ers took a group of six
women and segregated t em.  ey t en altered t eir
conditions of work in a number of ways, over a five
year period, and observed t e effects on production
and t e morale of t e group.

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 a 
 

 


Over t e period, c anges suc as new payment systems, rest

breaks of different sorts and lengt s, varying t e lengt of t e
working day, and offering food and refres ments were tried. In
almost all cases, productivity improved.

In t e end, e realised t at firstly, t e women ad felt important

because t ey ad been singled out. Secondly, t e women ad
developed good relations ips amongst eac ot er and ad been
allowed to set t eir own work patterns.  irdly, t e case of
relations ip ad made for a muc more pleasant working
environment.

ayo decided t at work satisfaction must depend, to a large

extent, upon t e informal social relations ips between workers in
a group and upon t e social relations ips between workers and
t eir bosses.
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arom ayo0s investigations t e following conclusions were made:

Work is a group activity.

 e social world of an adult is primarily patterned by t eir
work activity.
 e need for recognition, security and belonging is more
important t an p ysical conditions of t e work environment.
A complaint is commonly a symptom manifesting disturbance
of an individual0s current position.
An employee is a person w ose attitudes and effectiveness are
conditioned by social demands from bot outside and inside
work environment.
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Continued conclusions from ayo0s investigations:

Informal groups wit an organization creates a strong social

control over t e work abits and attitudes of an individual.
roups collaboration must be planned and developed, t en a
co esion wit in an organization would be formed t us
resisting t e disrupting effects of a continuously adaptive
society.
 e c ange from an establis ed society in t e ome to an
adaptive society in t e work plant resulting from t e use of
new tec niques contribute to t e disruption of t e social
organization of t e workplace.
më
  

©
aslow's ierarc y of needs is a t eory in pys coloy t at contends,
eac of us is motivated by needs. Our most basic needs are inborn,
aving evolved over tens of t ousands of years. Abra am aslow's

ierarc y of Needs elps to explain ow t ese needs motivate us all.

aslow's
ierarc y of Needs states t at we must satisfy eac need in

turn, starting wit t e first, w ic deals wit t e most obvious needs
for survival itself. Only w en t e lower order needs of p ysical and
emotional well-being are satisfied are we concerned wit t e ig er
order needs of influence and personal development.


©
   


  
 

personal growt and fulfillment

 

ac ievement, status, responsibility, reputation

 
 
  

family, affection, relations ips, work group, etc

  

protection, security, order, law, limits, stability, etc



 


  

basic life needs - air, food, drink, s elter, warmt , sex, sleep, etc.

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aslow said t at needs must be satisfied in t e given order.
Aims and drive always s ift to next ig er order needs.
Levels 1 to 4 are deficiency motivators; level 5, and by
implication 6 to 8, are growt motivators and relatively rarely
found.  e t warting of needs is usually a cause of stress, and
is particularly so at level 4.

Examples e used were:

You can't motivate someone to ac ieve t eir sales target
(level 4) w en t ey're aving problems wit t eir marriage
(level 3).
You can't expect someone to work as a team member (level
3) w en t ey're aving t eir ouse re-possessed (level 2).


 ©
   

Personal/ Need Occupational
Social Life
ierarc y Needs

  
" 
 
 "
 

 

"    !

 


   
 
 

aamily, friends, Belongingness  

community & Love Needs 
 

Protection, law, Benefits, stability

 

freedom Occupational safety



 

  Proper temperature, air,

aood, air, water, sleep

 basic salary

›
Jo while it is broadly true that people move up (or down) the
hierarchy, depending what's happening to them in their lives,
it is also true that most people's motivational 'set' at any time
comprises elements of all of the motivational drivers.

Like any simple model, Maslow's theory not a fully responsive

system nevertheless, it remains extremely useful and
applicable for understanding, explaining and handling many
human behaviour situations.

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!"  #
In 1960 îouglas cregor, an American psyc ologist
proposed a book  e
uman Side Of Enterprise

making contrasting assumptions about t e nature of
umans in t e work place.  ese assumptions are t e
basis of  eory X and  eory Y teac ings.

enerally speaking,  eory X assumes t at people are

lazy and will avoid work w enever possible.

 eory Y, on t e ot er and, assumes t at people are

creative and enjoy work.

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   !  "
 eory X 
 e average individual
dislikes work and will avoid
it.
st peple must be fced
 penalised t get t em
effectively ac ieve t e
ganizatins gals.
 e aveage uman as little
 n ambitin, wuld avid
espnsibility but like t e
secuity and benefits.
e Y
 e aveage individual likes
t wk and it0s a natual
activit.
A pesn culd be self
mtivated and is cmmitted
t t ei wk.
 e aveage uman leans
t accept and seek
espnsibilit.

as t e capacit t be
innvative and ceative.
 e ptential f a uman
unde mden industial life
is mdeatel utilized.
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  !  "
c regor0s t eory is a useful and simple reminder of t e
natural rules for managing people and e maintained
t at t ere are two fundamental approac es to managing
people.

 eory X anager is an aut oritarian manager and

generally gets poor results.

 eory Y anager is a participative manager w ic

produces better performance and results, and allows
people to grow.


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otivation style- otivation style-
 reats and disciplinary action
Rewarding
are used more effectively in t is
situation, also monetary gain. Leaders ip-
Leaders ip- Participative
Aut oritarian Power & Aut ority-
Power & Aut ority-  e manager would take
Arrogant, one way suggestions from workers, but
communicator would keep t e power to
Conflict- implement t e decision
Intolerant Conflict-
Performance Appraisals- Workers mig t be given t e
Appraisals occur on a regular
basis opportunity to exert
"Negotiating" strategies to solve
t eir own differences
Performance Appraisals-
Promotions also occur on a
regular basis.
ë
  $

Wit respect to overall management style, cregor's  eory X and
 eory Y managers seem to ave a muc more formal leaders ip
style and managers seem to ave different views of t e workers,
w ile t eir views of t e tasks remains t e same in bot cases: t at is,
one of specialisation, and doing a particular task.

Albeit t at  eory Y suggests t at t e workers would become very

good at t eir particular tasks, because t ey are free to improve t e
processes and make suggestions. W ile t e  eory X worker is said to
require force, t reats, and possibly even disciplinary action.

 eory Y are, again, self motivated, t is allows t em to focus on t e

task, and also t eir role wit in t e company.  eir desire is to be
more productive and enable t e company to succeed.  eory X
workers, on t e ot er and, seem to ave just enoug self motivation
to s ow up at work, punc t e time clock, as it were, and do only t at
w ic is necessary to get t e job done to minimum standards.
›
    
 
Elements of various perspectives, mostly the
humanistic perspective evolved into what is
known as the Modern Approach to
management.

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{ Open Jystems
{ Contingency Thinking
{ Lessons from the Japanese management
style (theory z)

›
 
A system is defined as a group of interacting units or elements t at
ave a common purpose.  erefore Open systems refer to systems
t at interact wit ot er systems or t e outside environment.

In ot er words organizations is an entity t at takes inputs from t e

environment, transforms t em, and releases t em as outputs in
sequence wit mutual effects on t e organization itself along wit
t e environment in w ic t e organization operates.

››
 
Open systems refer to systems t at interact wit ot er systems
or t e outside environment.

aor example, living organisms are considered open systems

because t ey take in substances from t eir environment suc as
food and air and return ot er substances to t eir environment.

 e t ree major c aracteristics of open systems are:

 ey receive inputs or energy from t eir environment.
 ey convert t ese inputs into outputs.
 ey disc arge t eir outputs into t eir environment.
›M
Companies use inputs suc as labour, funds, equipment, and
materials to produce goods or to provide services and t ey design
t eir subsystems to attain t ese goals.

^ÿ !"%&!'"^& &ÿÿ

Labour, ainances, anagement & Production Products/Services,

aterial, Information Process Profit/Loss

›d
 
wo early pioneers in t is effort, îaniel Katz and Robert Ka n,
began viewing organizations as open systems wit specialized
and interdependent subsystems and processes of
communication, feedback, and management linking t e
subsystems. Katz and Ka n argued t at t e closed-system
approac fails to take into account ow organizations are
reciprocally dependent on external environments. aor example,
environmental forces suc as customers and competitors exert
considerable influence on corporations, ig lig ting t e
essential relations ip between an organization and its
environment as well as t e importance of maintaining external
inputs to ac ieve a stable organization.

›½
 
 6 

 e contingency approac to management is an extension of
t e umanistic perspective w ic is based on t e idea t at in an
organization t ere is no one best way in t e management
process (planning, organizing, leading, and controlling) to
successfully resolve any tailored circumstances; because
organizations, people, and situations vary and c ange over
time.  us, t e rig t t ing to do depends on a complex variety
of critical environmental and internal contingencies.

›
 Contingency Perspective
of Management

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›3
 e contingency approac was suggested by two American academics,
Lawrence and Lorsc in 1967.  eir important contribution to t is
approac was as follows:

 e more dynamic and diverse t e environment, t e ig er t e

degree of bot differentiation and integration required for
successful organization.

Less c angeable environments require a lesser degree of

differentiation but still require a ig degree of integration.

 e more differentiated an organization, t e more difficult it is to

resolve conflict.

W ere t e environment is uncertain, t e integrating functions

tend to be carried out by middle and low-level managers w ere t e
environment is stable, integration tends to be ac ieved at t e top
end of t e management ierarc y.

ݑ
Also, ared aiedler, in t e 1960s and 1970s, was an early
pioneer in t is area.
e identified t at various aspects of
t e situation ad an impact on t e effectiveness of different
leaders ip styles.

aor example, aiedler suggests t at t e degree to w ic

subordinates like or trust t e leader, t e degree to w ic
t e task is structured, and t e formal aut ority possessed
by t e leader are key determinants of t e leaders ip
situation. ask-oriented or relations ip oriented leaders ip
s ould would eac work if t ey fit t e c aracteristics of t e
situation.
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 X 
  %
cregor, identified a negative set of assumptions about uman
nature, w ic e called  eory X.
e asserted t at t ese
assumptions limited t e potential for growt of many employees.

cregor presented an alternative set of assumptions t at e

called  eory Y and were more positive about uman nature as it
relates to employees. In cregor's view, managers w o adopted
 eory Y beliefs would ex ibit different, more umanistic, and
ultimately more effective management styles and  eory Y became
a well-known prescription for improving management practices.

Concerns about t e competitiveness of U. S. companies led some

to examine Japanese management practices for clues to t e
success enjoyed by many of t eir industries.  is led to many
articles and books purporting to explain t e success of Japanese
companies. It was in t is atmosp ere t at  eory Z was
introduced into t e management lexicon.
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 eory Z is umanistic approac to management approac by
William Ouc i.

The key features of Japanese industrial organizations,

according to Ouchi are as follows:

Offer lifetime employment (at least for t eir core workers).

Promote from wit in.
Insist on mandatory retirement of core workers at age 55.
Employ a large number of temporary employees mostly women.
 ere is a ig degree of mutual trust and loyalty between
management and employees.
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The key features of Japanese industrial organizations:
Career pat s are non-specialized wit life-long job rotation as
a central feature of career development.
îecision making is s ared at all levels.
Performance appraisal is long term (ie t e first appraisal takes
place 10 years after joining t e company).
 ere is a strong sense of collective responsibility for t e
success of t e organization.
And cooperation effort rat er t an individual ac ievement is
encouraged.

M›
Alt oug Ouc i recognizes t at many of t e features of
Japanese management could not be translated into Western
industrial society, e believes t at certain features could be
applied in a Western context.  e move from t e present
ierarc ical type of organization to a  eory Z type
organization is a process w ic , says Ouc i:

as t e objective of developing t e ability of t e

organization to coordinate people, not tec nology to
ac ieve productivity.

MM
In is view, t is requires a new p ilosop y of managing
people based on a combination of t e following features
of Japanese management:

Lifelong employment prospects

S ared forms of decision-making
Relations ip between boss and subordinate based on
mutual respect

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According to Ouc i t e introduction of  eory Z
approac es into Western firms requires t e following
strategy:

Adoption of a op down
approac , based on definition

of t e new p ilosop y agreed and supported by t e
organization0s top management.

Implementation of t e new approac s ould be carried

t roug on t e basis of consultation and communication
wit t e workforce and wit full training support to
develop relevant skills for managers, supervisors and
t eir teams.

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