University of Dar

es Salaam
Business School

GM 100: Principles &

Practice of Management
2015/2016

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 Evolution of Management
Thought

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 Overview
 An understanding of the major
development in management is
important for us.
 It helps us understand the nature of
management and the principles
underlying the process of management.
 Theory is a conceptual framework for
organizing knowledge and providing a
blueprint for action.
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 Overview
 Management history - can help managers
avoid the mistakes of others, or learn what
has been successful in the past.
 The practice of management is as old as
the history of man.
 e.g. families cooperated in hunting, building
houses, farming, etc).
 The Mosses example in the Holly Bible
(Exodus 18:24-26)
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 Overview
 However, the systematic development of
management thinking is dating from the end
of 19th Century during the industrial
revolution.
 Ouranalysis can be based on four main
approaches namely; the classical or
approach, the human relations approach, the
systems approach and contingency approach

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 Classical School of Management

 These were developed during the

industrial revolution which brought in new
factories, new plant and machinery.
 The problem was how to organize labour
(which was plentiful) and all the other
elements into efficient and profitable
operations.

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 Classical School of Management
 The classical management theories were
developed to find the “one best way” to
perform and manage tasks.
 They are divided into two branches, classical
scientific theories and classical administrative
theories.

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 The Scientific Management Theory
 Scientific
theories of management arose
because of the need to increase productivity
and efficiency.
 Scientific Management focused on the
improvement of individual worker performance.
 The major contributors to this approach include
Frederick W. Taylor (the father of scientific
management), Henry Gantt, and Frank and Lillian
Gilbreth.
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 Taylor’s Scientific Management
Theory
 Taylor’sexperience as a worker and as a
manager at Bethlehem Steel Company in
Pittsburgh, had convinced him that worker-
output was only about one-third of what was
possible.
 Hisproposition was that a systematic study of
the relationships between people and tasks
and redesigning the work would result into
higher efficiency.
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 Taylor’s Scientific Management
Theory
 Taylor’s major concerns included the
following:
 Increasing output at a low cost (efficiency) and
increasing worker’s pay through their increased
productivity.
 Increase surplus through higher productivity so
that both owners and laborers get more
compensation.
 Application of scientific methods, instead of
custom rule of thumb, could yield productivity
without the expenditure of more human energy
and effort.
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 Taylor’s Scientific Management
Theory
 Harmonization of the interest of workers,
managers and owners would result into firm’s
stability.
 Training and selecting workers to do the work
that they were able to do best would increase
their productivity.
 From the above concerns Taylor came up
with the following principles of Scientific
Management:
1. Develop a true science (standard method) for
each operation to replace the rule-of-thumb;
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 Taylor’s principles of Scientific
Management
2. Scientifically select, train and develop the
worker;
3. Develop a spirit of cooperation between
workers and management to ensure that work
is carried out in accordance with devised
procedures;
4. Divide work and responsibility between workers
and management, with each group taking over
the work for which it is best fitted.

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 Henry Gantt and the Gantt-Chart
 Henry Gantt, developed a bar graph that
measures planned and completed work along
each stage of production which came to be
known the Gantt chart.
 He later developed a bonus wage plan, paid
to workers who complete their tasks within
the time allowed on top of their regular pay.
 His chart, which is based on time instead of
quantity, volume, or weight, has been a widely
used planning and control tool today.
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The Gilbreths and the Time and Motion
Studies
 Frank and Lillian Gilbreth, a husband-and-
wife team, also believed that there was
one best way to perform an operation.
 The Gilberths defined motion study as
dividing work into the most fundamental
elements possible, studying those elements
separately and in relation to one another
and from these studied elements, when
timed, building methods of least waste.

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 The Gilbreths and the Time and Motion
Studies
 Time study was defined as a scientific
analysis of the methods and equipment used
in doing a piece of work, development in
practical detail of the best way of doing it,
and determination of the time required.
 With application of the necessary (standard)
movements the output per day was raised.
 This was the first motion study designed to
isolate the best possible method of performing a
given job.
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 The Gilbreths and the Time and Motion
Studies
 The Gilbreths drew symbols on operator
charts to represent various elements of a
task such as search, select, grasp, transport,
hold, delay, and others.
 They called these graphical symbols "therbligs“
i.e. their name “Gilbreths” spelled backwards.

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 Criticisms against Scientific
Management Approach
 Taylor’s approach always faces the following
criticisms:
 Workers were viewed as units of production to
be handled almost like machines. This
philosophy de-humanized the abilities of
workers;
 The best way of performing a task by one
worker is not always the best method for
everyone;
 The standardization of work and division of
labour tends to result into monotony and de-
skilling of workers;
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 Criticisms against Scientific
Management Approach
 Scientific approach advocates for too much
power of control to managers i.e. alienation
of workers from decision making;
 Scientific management focused on the
utilization of labour rather than development
of technology.

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 Relevance of Principles of Scientific
Management
 Scientific management would contribute to
improved industrial efficiency and prosperity
during the industrial revolution, when
reorganization and emergency of large and
complex organizations was taking place.
 Taylor and his followers have also left to
modern management the inheritance of such
things as work study, payment by results,
production controls, workers training and
development, specialization, etc.
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 Administrative school of Management
 Whereas scientific management focused on
the productivity of an individual worker, the
classical administrative approach concentrated
on the entire organization.
 The emphasis was on the development of
managerial principles rather than work
methods.
 The major contributors to this school include
Henri Fayol and Max Weber , who emphasized
the importance of understanding how an
organization operated.
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 Fayol’s Fundamental Rules
 During the same time as Taylor, Henri Fayol
developed 14 principles of management
(fundamental rules) based on his experience a
Managing Director of a coal mine.
 His attention was directed toward the
activities of all managers rather than only
those at lower level as Taylor did.
 These principles provide modern-day
managers with general guidelines on how
staff should be managed.
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 Fayol’s Fundamental Rules
 The principles (rules) are as follows:
1. Division of work: Division of work and
specialization increases output by making
employees more efficient;
2. Authority and responsibility: Authority
is the right to give orders and the power to
exact obedience.
 A manager has official authority because of
his/her position, as well as personal
authority based on personality, intelligence,
and experience;

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 Fayol’s Fundamental Rules

3. Discipline: Employees must obey and

respect the rules that govern the
organization. Good discipline requires
managers to apply sanctions whenever
violations become apparent;
4. Unity of command: An employee should
receive orders from only one superior;
5. Unity of direction: Organizational
activities must have one central authority
and one plan of action;

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 Fayol’s Fundamental Rules
6. Subordination of individual interest to
general interest: The interests of one
employee or group of employees are
subordinate to the interests and goals of the
organization;
7. Remuneration of personnel: Employees
should be paid a fair wage (the price of
services rendered by employees) for their
services;
8. Centralization: The degree of
centralization varies according to the
dynamics and size of each organization;
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 Fayol’s Fundamental Rules
9. Scalar chain: A chain of authority exists from
the highest organizational authority to the
lowest ranks;
10. Order: The right materials and the right
employees are necessary for each
organizational function and activity;
11. Equity: Equity is a combination of kindliness
and justice. When dealing with employees
managers should be kind and fair;
12. Stability of tenure of personnel: To attain
the maximum productivity of personnel, a
stable work force is needed;
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 Fayol’s Fundamental Rules
13. Initiative: Within the limit of authority and
areas of expertise employees at all levels
should be encouraged to show initiative.
 Zeal, energy, and initiative are desired at all
levels of the organizational ladder;
14. Esprit de corps (Cooperation): Promoting
team spirit will build harmony and unity within
the organization.

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 Fayol’s Fundamental Rules
 Fayol was also the first to identify the
management functions; planning, organizing,
commanding, coordinating, and controlling
which are today classified into only four;
planning, organizing, leading and controlling.
 Although later research has created
controversy over many of the above
principles, they are still widely used in
management practice.

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 Weber’s Concept of bureaucracy
 Max Weber, a German sociologist who
studied organizations, disliked his
observation that many organizations were
managed on a “personal” family-like basis
and that employees were loyal to
individual supervisors rather than to the
organization.
 He believed in impersonal management
characterized by a formal organizational
structure and specific rules.
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 Weber’s concept of bureaucracy
 Weber developed a theory of authority
structures and relations and called the non-
personal form of organization a bureaucracy.
 A bureaucracy as described by Weber, is a
formal system of organization and
administration to ensure effectiveness and
efficiency.
 He thought authority should be something that
was part of a person's job and passed from
individual to individual as one person left and
another took over.
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 Weber’s concept of bureaucracy
 Max Weber outlined a set of guidelines for
structuring organizations in the most
efficient manner, which include the
following:
1. Well-defined hierarchy: All positions within
a bureaucracy are structured in a way that
permits the higher positions to supervise and
control the lower positions.
 This clear chain of command facilitates control
and order throughout the organization.
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 Weber’s concept of bureaucracy
2. Division of labour and specialization: All
jobs in an organization are specialized so that
each employee has the necessary expertise to
do a particular task.
3. Rules and regulations: Standard operating
rules and procedures govern all organizational
activities to facilitate uniformity of decisions and
actions and coordination of various activities
within the organization.
4. Impersonal relationships (impersonality):
This is about uniformity in application of rules
and controls, not according to personalities.
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 Weber’s concept of bureaucracy

5. Competence: Technical and professional

qualifications, not “who you know,” should be
the basis for all decisions made in hiring, job
assignments, and promotions.

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 Bureaucratic Principles

Written rules

Impersonality A Bureaucracy Hierarchy of

should have authority

Competence

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 Criticisms against Administrative
Management Theory
 Administrative management approach has a
number of disadvantages and has been
subject to severe criticisms. Some of the
criticisms are:
 The over-emphasis on rules and procedures may
become important in its own right than as means
to an end;
 Emphasis on strict adherence to rules and
procedures hinders employee’s creativity
especially when a situation is not covered by the
set rules and procedures;
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 Criticisms against Weber’s
Bureaucracy
 Organization’s ability to respond quickly to an
increasingly dynamic environment may be stifled
by strict adherence to rules and regulations as
well as impersonality;
 It is difficult for personal service organizations,
which contain a considerable number of
professionals e.g. Law firms, consultancy
bureaus, etc to exercise impersonality.

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 Relevance of Administrative
Management Theory
 Although it is being criticized,
administrative management theory still
describes many contemporary
organizations, attesting the importance of
the work of Fayol and Weber.
 It has given emphasis to careful design
and planning of organization structure and
the definition of individual duties and
responsibilities.

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 Behavioral (Human Relations)
Management
 In the 20th century, the period of great
depression, formal organizational structures
could not help in making organizations
achieve their goals and prosper.
 Greater attention began to be paid to human
dimension of work.
 This marked the beginning of behavioral
management theory which addressed the
social factors and the behaviour of employees
at work.
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 Behavioral (Human Relations)
Management
 Behavioral theorists believed that a better
understanding of human behavior at work,
such as motivation, expectations, and
group dynamics, improved productivity.
 Employees were viewed as resources and
assets to be developed and worked with
i.e. not as machines, as in the past.
 Several individuals and experiments
contributed to this theory.

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 Mayo and the Hawthorne Studies
 Elton Mayo's contributions came as part of
the Hawthorne studies, a series of
experiments conducted to test the classical
management theory.
 The first experiment was conducted by a
group of engineers seeking to determine the
relationship of lighting levels to worker
productivity.
 It was found that regardless of whether the light
levels were raised or lowered, productivity rose.
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 Mayo and the Hawthorne Studies
 Thesecond study, which involved the Harvard
Professor Mayo and his associates was done to
determine the influence of incentive plan (job
redesign, changes in work week length and
wage plan) on worker’s output.
 The result indicated that the incentive plan had
less effect on workers’ output than did group
pressure, acceptance and security.
 The conclusion was that social norms or group
standards were key determinants of individual
work behaviour.
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 Mayo and the Hawthorne Studies
 Thegeneral conclusions from the Hawthorne
studies were that:
 Human relations and the social needs of workers
are crucial aspects of business management;
 A member of an organization is a social-
psychological individual i.e. not purely a rational
economic man;
 Productive are workers who are happy and
satisfied;
 Employees work harder when believe that the
management care about their welfare;
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 Mayo and the Hawthorne Studies
 Group standards determine individual work
behaviour.
 Although they were criticized, in terms of the
research procedures and analysis of of the
findings, the conclusions from the Hawthorne
studies have helped to revolutionize theories
and practices of management.
 From the way jobs are designed to the way
managers work with employee teams we can
see elements of the behavioural approach.

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 Maslow and the Hierarchy of Needs
Theory
 Abraham Maslow, a practicing psychologist,
developed one of the most widely recognized
theory of motivation.
 His theory of human needs had three
assumptions:
 Human needs are never completely satisfied;
 Human behavior is purposeful and is motivated
by the need for satisfaction;
 Needs can be classified according to a
hierarchical structure of importance, from the
lowest to highest.
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 Maslow the Hierarchy of Needs
Theory
 Maslow broke down the needs hierarchy into five
specific areas:
 Physiological needs - Physical needs necessary for
maintaining basic human well-being, such as
food, drink, sleep, sex, etc;
 Safety needs - Need for basic security, stability,
protection, and freedom from fear;
 Belonging and love needs - Needs related to
affectionate relations with others and groups;
 Esteem needs - Needs for self-respect, self-
confidence reputation and glory.
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 Maslow and the Hierarchy of Needs
Theory
 Self-actualization needs - Need for self-
fulfillment (to find himself).
 Maslow argued that people tend to satisfy
their needs systematically, starting with the
basic ones moving up the hierarchy to the
highest level needs.
 His hierarchy of needs theory provided a
useful framework for discussion about the
various needs that people experience at
work and the way motivation can be met.
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 McClelland and the Need for
Achievement
 David C. McClelland came up with the need
for achievement (n-Ach) theory arguing that
need for achievement is a key human motive
and has an influence on one’s personality.
 In his theory, McClleland identified three sets of
needs that people experience; the need for
achievement (n-Ach), the need for power (n-
Pow) and the need for affiliation (n-Aff)

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 Systems Management Theory
 The systems management theory is a more
recent approach, which integrates the
previous perspectives.
 Whereas the past explanations were in
terms of structures and people, the systems
approach seeks to explain organizational
behaviour in a multi-dimensional.
 People, structures, technology and
environment are studied at one and same
time.
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 Systems Management Theory
A system is a set of interrelated and
interdependent parts arranged in manner
that forms a unified whole.
 Examples of systems include the human body,
communication networks and mechanical
systems.
 Systemsmay be “closed” or “open”. Closed
systems are those which are self-supporting
and thus do not interact with the
environment.
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 Systems Management Theory
 Open systems are those which do interact with
their environment to obtain inputs and
discharge output.
 As
an open system an organization is
composed of four elements:
 Inputs — Organizations receive inputs
(resources such as raw materials, money,
technologies, and people) from their
environment;
 Transformation processes — Organizations
convert inputs (through planning, organizing,
motivating, and controlling) into output;

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 Systems Management Theory
 Outputs — Organizations discharge their output
(products or services designed to enhance the
quality of life) into their environment;
 Feedback — Organizations receive and respond
to the reactions of the environment i.e.
comments from customers or clients using the
products and directives from the legal-political
systems.
 Managers are encouraged to look at the
organization from a broader perspective,
recognizing the interrelations of the various
parts of the organization.
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 Systems management theory
 Thefollowing terminologies are important for
the understanding of the systems approach:
 Closed system: Refers to an organization that
interacts little with its external environment and
therefore receives little feedback from it. E.g.
astronaut’s life-support pack.
 Open system: An organization that interacts
continually with its environment. Therefore, it is
well informed about changes within its
surroundings and its position relative to these
changes.
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 Systems Management Theory
 Subsystem: Is any system that is part of a
larger one.
 Entropy: Is the tendency of systems to
deteriorate or break down over time.
 Synergy: Is the ability of the whole system to
produce more than the sum of its separate
parts.
 Thisis a condition in which combined and
coordinated actions of the parts of the system
achieve more results than all the parts could have
achieved by acting independently.

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 Contingency School of
Management
 Contingency management recognizes the fact
that there is no one best way to manage.
Therefore appropriate management actions
and approaches depend on the situation.
 Managers with a contingency view use a flexible
approach, draw on a variety of theories and
experiences, and evaluate many options as they
solve problems.
 Contingency thinking recognizes the need to
understand situational differences and respond
appropriately to them.
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 Contingency (Flexibility) School of
Management
 Managers are faced with the task of
determining which approach is likely to be
most effective in a given situation.
 Contingency thinking recognizes the need to
understand situational differences and respond
appropriately to them.
 Thecontingency perspective is highly
dependent on the experience and judgment of
the manager in a given organizational
environment.

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 Current Management Issues
 There are management trends and issues
that are believed to change the way
managers do their job and are therefore
worth noting. These include the following:
1.Quality Management: Quality
management is a concept that requires the
management to be continually improving
performance by focusing on customers while
addressing the needs of all stakeholders.
 The focus is on managing the total organization
to deliver high quality to customers.
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 Current Management Issues
 Managers of today understand that delivering
consistent high-quality products/service is
essential for success and survival of an
organization in competitive environment.
2.Reengineering (Innovation): Is a concept
that explains the need for managers to take
innovative actions.
 It entails the radical redesign of business
processes to achieve dramatic improvements in
terms of cost, quality, and speed of delivery.
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 Current Management Issues
 The goal of reengineering is to bring about a
right fit between market opportunities and
corporate abilities.
3.Globalization: Managers are no longer
constrained by national borders.
 The world has become a global village.
 Managers in organizations of all sizes and types
around the world have to confront the
challenges of operating in a global market.

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 Current Management Issues
4. E-Business: This is a comprehensive
term describing the way an organization
does its work by using internet-based
linkages with its key constituencies in
order to efficiently and effectively achieve
its goals.
 E-business involves the use of electronic/
internet linkage to communicate with
employees, customers, suppliers and to
support them with information.
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 Discussion questions

1. Despite him being criticized, Frederick

Taylor’s ideas of scientific management are
still relevant. Discuss.
2. Effective organizational management
should not only focus on use of rules and
principles but also takes into consideration
the human behavioral aspects, his/her
value and needs as an employee. Discuss
this contention with reference to Human
Relation Theorists.
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 Discussion questions

3. Describe the 14 principles of management

by Henri Fayol.
4. What do you understand by:
a) An organization as a system
b) Re-engineering
c) Quality management
d) E-Business
5. What do you understand by contingency or
“it all depends” approach to management?
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