INTRODUCTION TO

MANAGEMENT CONCEPTS
 Basic Management Concept

 Classical Theories
- Administrative Management (Henri Fayol)
- Scientific Management (Frederick Winslow Taylor)

 Human Relation Theories

- Hawthorne Effect (Elton Mayo)
- Theory X and Y (Douglas McGregor)
- Theory Z (William Ochi)
 French management theorist whose theories
concerning scientific organisation of labour were
widely influential in the beginning of 20th
century.
 His theories deal with the organisation of
production in the context of a competitive
enterprise that has to control its production costs.
 Fayol was the first to identify the four functions of
management: planning, organizing, directing,
and controlling, although his version was a bit
different: plan, organize, command, coordinate,
and control.
 He also identified 14 principles that he saw as common to all
organisations.

•Specialisation/ •Remuneration
division of labour. •Centralisation
•Authority with •Chain / line of authority
responsibility •Order Cont…
•Discipline •Equity
•Unity of command •Lifetime jobs (for good
•Unity of direction. workers)
•Subordination of •Initiative
Individual Interests •Esprit de corps
 Frederick Winslow Taylor (1856-1915)

 American industrial engineer, who originated

Scientific Management in business.
 Scientific method to the management of workers
could improve productivity.
 He assumed that:
- working systems were generally inefficient
because no-one had bothered to make them
efficient.
- workers were naturally inclined to be lazy
and inefficient.
 Cont…

Develop Time & Motion Study.

- business efficiency technique
- refined by Frank and Lillian Gilberth.
- to reduce the number of motions in performing
a task in order to increase productivity.
- the best known experiment involved bricklaying.
 Workers should cooperate with management (no trade
union).
 Cont…

 Best results would come from the partnership

between a trained and qualified management and
a cooperative and innovative workforce.
 Developed four principles of Scientific
Management:
- Develop a science for every job.
- Select workers with right abilities.
- Provide proper training & incentives.
- Support workers – ensure all work being done
in accordance with the principles of science
which has developed.
 Elton Mayo (1880 – 1949)
 Introduce Hawthorne Effect.
 Improvements in productivity or quality resulting
from the fact that workers knew they were being
studied or observed.
 When workers are paid attention to, chances are
they will respond positively.
 People have different sources of job satisfaction.
 Interpersonal relations are required in the job
setting.
 Style of supervision effects level of productivity.
 Cont…

 Four general conclusions were drawn from the Hawthorne

studies:
- The aptitudes of individuals are imperfect
predictors of job performance.
- Informal organization affects productivity.
- Work-group norms affect productivity.
- The workplace is a social system.
 Douglas McGregor (1906 – 1960)
 An American social psychologist, proposed his famous X-Y
theory in his 1960 book 'The Human Side Of Enterprise'.

The concept of Theory X and Theory Y managers was

first developed by Douglas McGregor. He was able to
show that Theory Y managers are better able to create
employee engagement.

Theory X:
- People born disliking work, will avoid if can.
- Most people must be controlled and threatened
before they will work hard enough.
- The average human prefers to be directed,
dislikes responsibility – wishes to avoid responsibility,
wants security.
- Only small % community are born leaders, others are
followers.
 Theory Y
- Working natural as playing and
resting.
- Control and punishment are not
the only ways to make people work.
- If a job is satisfying, then the
result will be commitment to the Cont…
organization.
- People usually accept and often
seek responsibility.
- People are self-directed.
 Comments on the theory

 McGregor sees these two theories as two quite

separate attitudes.
 Theory Y is difficult to put into practice on the shop
floor in large mass production operations, but it can be
used initially in the managing of managers and
professionals.
 Managers should accept Theory Y.
 Not solution for all problems, but framework for
improved management performance.
 Theory Z (William Ouchi)

 Theory Z was developed by not by William Ouchi, in his

book 1981 'Theory Z: How American management can
Meet the Japanese Challenge'.
 Often referred to as the 'Japanese' management style.
 Advocates a combination of all that's best about theory
Y and modern Japanese management, which places a
large amount of freedom and trust with workers, and
assumes that workers have a strong loyalty and interest
in team-working and the organisation.
Places more reliance on the attitude and
responsibilities of the workers, whereas
Mcgregor's X & Y theory is mainly focused
on management and motivation from the
manager's and organisation's perspective.
 SUMMARY
Theory X Theory Y
• People born disliking • Working natural as
work, will avoid if can. playing and resting.
• Most people must be • Control and punishment
controlled and are not the only ways to
threatened before they make people work.
will work hard enough. • If a job is satisfying,
• The average human then the result will be
prefers to be directed, commitment to the
dislikes responsibility. organization.
• Only small percentage • People usually accept and
communities are born often seek responsibility.
leaders, others are • People are self-directed.
followers.
COMMITMENT
• Irrelevant • People need to commit to •
the organization
Theory Z
• Theory Z focused on
increasing employee
loyalty to the company by
providing a job for a life
with a strong focus on the
well-being of the
employee.
• Theory Z management
tends to promote stable
employment, high
productivity, and high
employee morale and
satisfaction.
The organization needs to
commit to people
 o Recognize the Importance of
Workers Needs for Social
Satisfaction
o Respond better to Work-Group
Pressure to Management
Control Activities.

FRAMEWORK
oTo improve management
performance
oMotivation and Management by
Managers

o Develop interpersonal skills

o Create a sense of family
between everyone
o Broaden the people’s career
path

HUMAN RELATION THEORY

 Maslow's hierarchy
of needs (1940-50's )

Maslow defined a Hierarchy of Human Needs that stated the lower needs must
be met before an individual can strive to meet the higher needs.
 Maslow's hierarchy
of needs (1940-50's )

• Each of us is motivated by needs. Our most basic

needs are inborn, having evolved over tens of
thousands of years.
• Maslow's Hierarchy of Needs states that we
must satisfy each need in turn, starting with the
first, which deals with the most obvious needs for
survival itself.
 Only when the lower order needs of physical and
emotional well-being are satisfied are we concerned with
the higher order needs of influence and personal
development.
 Conversely, if the things that satisfy our lower order
needs are swept away, we are no longer concerned about
the maintenance of our higher order needs.
Self-actualization (1 mark)
Self-actualization is refers to the need for personal growth (1 mark) and discovery
that is present throughout a person’s life. In self-actualization a project manager find
a meaning to life that is important to them.
Physiological (1 mark)
Physiological is a most basic need (1 mark) that is vital to survival, such as the need
for water, air, food, and sleep (rest). Maslow believed that these needs are the most
basic and instinctive needs in the hierarchy because all needs become secondary
until these physiological needs are met.
Esteem (1 mark)
Esteem is the need for appreciation and respect of others (1 mark), therefore project
team member want to esteem needs as they expect to be rewarded publically for
doing his job well because they need to sense that they are valued by others and
feel that they are making a contribution to the world.
Safety and Security (1 mark)
Project team wants to control and order in their lives (1 mark), so they very
concerned about the total duration of the project and employment at the project
completion.
Social (1 mark)
The social needs include such things as love, acceptance and belonging (1 mark).
The need for emotional relationships drives human behavior. In order to avoid
problems such as loneliness, depression, and anxiety, it is important for people to
feel loved and accepted by other people. 
 1. Theories

 2. Maslow's hierarchy
PSLES
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