Management I

Approaches to management
By Mrs. Serem
 Management approaches

For an individual to manage effectively, it is

important for him/her to know the existing

management approaches, how successful are they in
any given management situation and finally use the
most appropriate approach in his/her area of
operation.
 objectives

 By the end of the lesson the learner should be able to:

1. Name the 5 common management approaches.

2. Name the 3 branches of classical theory/approach/design.

3. Explain scientific management theory.

4. Explain administrative principle’s theory.

5. Explain bureaucratic management theory.

 Classical approach

This approach was developed between 1900 and 1910

and extended through to early 1950s. The theory had 3

branches. These are:

1. Scientific Management

2. Administrative/Principles of Management

3. Bureaucratic Management
 Scientific Management

This is a technique of management whereby the

work methods are scientifically studied and

standards established.
It is a philosophy about the relationship between the

people and work - not technique or efficiency device.

 Scientific Management

The scientific Management approach was developed by an

American engineer called Frederick Winslow Taylor, (1856 -

1915). He came up with this theory because the systematic
approach (formally used) failed to lead to widespread production
efficiency. He discovered that:
1. Production and pay were poor.

2. Inefficiency and waste were common.

3. Many companies had unused potential.

 Principles of Scientific management theory

The scientific management theory has 4 principles.

These are: -
1.The development of a scientific method of designing
jobs to replace the old rule-of-thumb methods .
This involved gathering, classifying, and tabulating data
to arrive at the “one best way” to perform a task or a
series of tasks.
Principles of Scientific management theory

2.The scientific selection and progressive teaching and

development of employees.
Taylor saw the value of matching the job to the worker.
He also emphasized the need to study worker strengths
and weaknesses
and to provide training to improve employee
performance.
3.The bringing together of scientifically selected employees
and scientifically developed methods for designing jobs.
Taylor believed that new and scientific methods of job
design should not merely be put before an employee; they
should also be fully explained by management. He believed
employees would show little resistance
to changes in methods if they understood the reasons for the
changes and saw a chance for greater earnings for
themselves.
4.A division of work resulting in interdependence between management and
workers.
Taylor believed if they were truly dependent on each other, cooperation
would naturally follow.
 NOTE:

1. Scientific management theory emphasized on specialization and division of

labour.

2. Taylor and other scientific management pioneers believed that employees

could be motivated by economic rewards, provided those rewards were
related to individual performance. “The more you work the more you earn”.
 Other Scientific Management Pioneers

Several followers and colleagues of Taylor helped to

promote scientific management.
Henry Lawrence Gantt
Frank and Lillian Gilbreth were important to the early
management movement both as a husband-and-wife
team and as individuals.
 Limitations of scientific management

 These are:

1. Simplistic motivational assumptions.

2. Workers were viewed as part of machine.

3. Exploitation of labour.

4. Ignored relationship between the organizations and its environment.

5. Excluded senior management tasks.

These limitations prompted the development of administrative

management theory.
 Administrative/principles of management theory

It is also referred to as principles of management.

This type of management places emphasis on the

members of the organization, usually referred to as
“body corporate”, that is, the personnel or employees.
The Administrative theory was developed by a

French top Management specialist called Henri

Fayol, (1841-1925).
 Principles of management

 The theory emerged in 1916 and it emphasized the perspective of senior

managers within the organization. Taylor argued that management was a

profession and could be taught. 
 He then stated 5 functions or elements of management and 14 principles.

Fayol in his contribution, defined management as

comprising of five (5) elements.

 Elements

1. Planning

2. Organizing

3. Commanding

4. Co- ordinating and

5. Controlling
These elements are carried out continuously in an
organization
 Principles of the theory

In addition, Fayol stated 14 principles that he wanted them

applied flexibly. These are:

1. Division of work.

Divide work into specialized tasks (elements) and assign

responsibility to specific individual.

2. Authority
Delegate authority a long with responsibility (workers are

given the right to command to get the work done).

 Principles of the theory

3. Discipline
 Rules and regulations should be enforced fairly and judiciously.

There should be well- defined procedures of dealing with disciplinary

matters. 

4. Unity of command
 Each employee should be assigned to only one supervisor, otherwise

conflict and confusion in authority and instructions would result.

 
 Principles of the theory

5. Unity of direction
 The principle of Fayol states that “there should be one head

and one plan ”for group of activities/tasks having the same

objectives. For example, the personnel department should
have only one personnel officer with a specified plan for
personnel policies, feeding personnel in all departments of
the organization.
 
 Principles of the theory

6. Subordination of individual interest to organization interest

 Interests of the organization must take priority over

the interests of an individual or a group, whenever

there is a conflict between the two.
 Principles of the theory

7. Remuneration of employees
All workers should be fairly paid with appropriate

additional incentives for additional efforts.

8. Centralization
All major policy formulation and decisions should be

made at the top management level (central point).

 Principles of the theory

9. Scalar chain
Communication should follow the formal channel in the hierarchy.

Keep the communication within the chain of command.

10. Order
Place for everything and everything in its place.

11. Equity
Fair discipline and order enhance employee commitment.

Managers should be fair and friendly to subordinates and they should

exercise impartiality.
 Principles of the theory

12. Initiative
Encourage employees to act on their own in support of

the organization’s direction regardless of the mistakes

made.
13. Esprit de corps
Promote a unity of interests between employees and

management. Workers should work as a team.

 Principles of the theory

14. Stability of staff/tenure of employees

Employee turnover should be minimized. Tenure

and long term commitment should be encouraged. It

results in a sense of belonging to organization giving
rise to dedication and better outcome/results/output.
 Principles of the theory

Although in his contributions, management was viewed as a

profession that could be trained and developed, emphasized
the broad policy aspect of top - level managers and offered
universal management prescriptions, it had limitation:
The universal prescriptions need qualifications for

environmental, technological and personnel factors.

 Bureaucratic management theory 

It was developed by a German Sociologist, Lawyer and Historian called Max

Weber (1864 - 1924). He was interested in the work of Taylor. His theory
was based on authority structures (hierarchy) of a form of an organization.
He was specifically concerned with the administration, that is, how the
organizations are structured in terms of “who is responsible for who or to
who along with the activities to be carried out. He thought bureaucracy
would be:
 i) Fairer

 ii) More impartial and

 iii)More rational
Characteristics of bureaucratic theory

1. Workers are selected and promoted on the basis of technical competence and

experience (merit).

2. A system of rules covering the duties and rights of employees that must be adhered

to.

3. Well defined hierarchy of authority.

4. A division of labor by functional specialization.

5. A system of procedures for dealing with work situations.

6. Job- holders are expected to be impartial, that is, practice fairness and no favourism.
 Limitations

 The shortcomings to this theory are:

1. It had limited organizational flexibility and it is slow in decision

making.

2. It ignores the importance of people and interpersonal relations.

3. It accumulates power that could result in authoritarian management.

4. Rules may become ends in themselves.

5. .
 Limitation

5. Difficult to dismantle once established.

6. Too much specialization that could result, for example, patient to die in hospital
if the person assigned to that responsibility is not there.

These limitations come because of the complexity of organizations. It is

better for small organizations, although it is mainly applied in the

government organizations.
Bureaucratic theory served to fit the traditional organizations which were less

innovative in their operations and later around 1930's, human relations

theory was developed to look at the human aspect of the organization.
 Human relation theory

This theory was not part of the classical organization

theory but very important in dealing with human

beings in an organization. The theory is designed to
equip the learner with the principles of human
relation theory to be able to understand and
motivate staff under him in his area of operation for
better services to the patients and the public at large.
 objectives

 By the end of this lesson the should be able to:

1. Name the theorist who developed the human

relations theory
2. State 4 crucial factors to be considered in achieving

the goals of the organization

3. State the two important factors that determine the

success of a manager (good manager).

 Human relation theory

The theory was developed by Professor Elton Mayo around

1930s and it was backed up by A. Maslow, Mcgregor

(1960), Hersberg, Likert, Argyris and Chester Bernard
(1938).
It emphasized the human factor at work situation rather
than the machines. It aimed at understanding how
psychological and social progress, interact with the work
situation to influence performance.
 Human relation theory

 Factors to be considered in achieving the goals of the organization

 It was realized that the crucial factors in achieving the

organizational goals were: -

1. Individual and group morale

2. Group dynamics

3. Democratic supervision and

4. Interpersonal relations.
 Factors determining the success of a Manager

A good manager was, therefore seen as a person who dealt

with:
 - The needs of the consumer and the employees.
 - The organization’s strategies of achieving the goals such as:
1. Making profit

2. Becoming effective and efficient

3. Motivating employees to achieve the goals of the organization.

 Human relation theory

Not all organizations are the same in terms of the

culture, climate, the people and the technology.

Therefore, the management approach used in one
organization may not be applicable to another
organization. The prevailing circumstances dictate
the use of one theory, hence contingency/situational
theory.
 Situational/contingency theory

Purpose

The main purpose of learning this theory is to open up a learner’s mind to

use any theory applicable to the prevailing situation at that time.

Objectives

You should be able to:

1) Explain situational/contingency theory

2) Name 2 key situational characteristics shared by many organizations.

3) State 4 contingencies that have to be addressed on a case by case basis.

4) State the limitation of this theory

 Situational/contingency theory

This approach is the most suitable for modern management

practices because of its characteristics.

It states that there is not best single approach to management.

Managers should use various principles of all the other

approaches in handling management issues. He can apply
any approach depending on the prevailing circumstances. It
is argued that the approach to be used should be relevant and
effective to the management situation at hand.
 Situational/contingency theory

 This gives managers freedom to think and see which

principle(s) can be applicable to a particular situation.

Because of the freedom employed in handling management
issues, the theory appears to be the most suitable to be
adopted because the approach which worked in another
situation, may not work in another situation; the conditions
may not be the same.
 Shared key situational characteristics

However, many organizations share key characteristics that can

be grouped together as:

i) Growth and Market

ii) Uncertain environment or

iii)Corporate strategies (plans)

These and other situational characteristics are called

contingencies. Understanding contingencies help mangers know

which sets of circumstances dictate which management actions.
 Contingencies

Contingencies all management issues would need to be addressed

on a case by case basis. These contingencies include:

a) The rate of change and degree of complexity in the organization’s

external environment.

b) Internal strength and weakness of the organization.

c) The value, goals, skills and workers in the organization.

d) The types of tasks, resources and technologies the organization

uses.
 Limitation

 

Not all-critical contingencies have been identified and the theory

may not be applicable to all managerial issues.



Among the people who developed this theory were Pugh,

Lawrence and Lorsch.
Another approach to management that is related to situational

approach in terms of modern principles is the management by

objectives.
 Management by objectives (MBO)

The theory is designed as a modern approach to

management. The idea behind the theory was

advocated by Peter Drucker (1970). He stressed that
“business performance requires that each job be directed
towards the objective of the whole business” and,
therefore, it will assist the learner to carry out
management functions using the modern approach.
 Learning objectives

By the end of this lesson the student should be able to;

1. Define the term management by objectives

2. State 5 elements of MBO process.

3. State the five main purposes of review and appraisal of

performance.
4. State 7 advantages of management by objectives

5. State 5 disadvantages of management by objectives

 Management by objectives (MBO)

MBO is a process by which managers and subordinates work

together in identifying goals and setting as well as setting up

objectives and plans in order to achieve these objectives.
It can also be referred to as management by results or goal
management. It is based on the assumption that involvement
leads to commitment and if an employee participates in goal
setting standards for measurement of performance towards that
goal,
 MBO

 then the employee will be motivated to perform better in a way that

contributes directly towards the achievement of organizational

objectives.

 N/B Management by objectives is a goal -oriented process

and not a work-oriented process. To be busy and work is

not important, if it does not effectively lead to
achievement. It is an aid to planning as well as a
motivating factor for employees.
 Elements of MBO process

Five common elements of MBO can be identified as follows:-

 i Central goal setting

This is the basic stage in MBO process where central

management sets the definition and clarification of the

organizational objectives usually in consultation with other
managers (group and top manager jointly involved). The
objectives should be specific and realistic.
 Elements of MBO process

 ii Manager - Subordinate involvement

Here, the subordinates work with the manager in setting

individual goals. These goals (subordinates) are specific and

short range and primarily indicate what the subordinate’s unit is
capable of achieving in a specified period of time. The
subordinates must set goals in consultation with individuals who
comprise his unit. In this manner, everyone is involved in the goal
setting. The importance of joint consultation is that people get
more motivated in achieving objectives that were set by them.
 Elements of MBO process

 iii Matching goals and resources

Objectives can only be achieved if resources are available. Therefore, the

management should provide the subordinates with the necessary tools and
materials to effectively achieve these goals. The resources should be allocated
precisely in line with the goals set and should be done in consultation with the
subordinates.
 iv Freedom of implementation

There should be adequate freedom for the manager - subordinate task force in

deciding on the utilization of resources and means of achieving the

objectives. This should be done within the larger framework of organizational
policies and with minimum superior’s interference.
 Elements of MBO process

V Review and appraisal of performance

There should be regular reviews of progress between managers



and subordinates. These reviews would: -

a) Determine if the individual is making satisfactory progress.

b) Reveals if any unanticipated problems have developed.

c) Help the subordinates understand the process of MBO

better.
.
 Elements of MBO process

d) Improve the morale of the subordinates.

e) Assist the manager and subordinates to modify either

the objectives or methods, if need be.

 However, the performance appraisal should be conducted

fairly and with measurable standards

 Advantages of MBO

1. It makes individuals more aware of the organizational goals.

2. It often highlights the area in which the employees need further training

3. Due to periodic evaluation, the subordinates know how well they are doing

4. It improves communication between management and subordinates

5. There is proper utilization of human resources

6. It encourages managers to do detailed planning. Due to the improvement in

planning process, the overall management system is improved.

7. Both the manager and subordinates know what is expected of them and hence

there is no role ambiguity or confusion.

 Disadvantages

 The MBO has also some disadvantages. There are:

1. Managers lack the necessary skills in inter-personal interaction

such as counseling and coaching.

2. Poor interaction of MBO system with other systems such as

budgeting and forecasting etc.

3. It is difficult to achieve group goals

4. The emphasis is mainly on short- term goals.

5. Due to considerable paperwork, a lot of manager's time is wasted .

 Systems approach to management

Objectives

The learner should be able to: -

1. Define the term system

2. State the three aspects of the definition of system

3. List at least 4 variables/components/parts which must be explained

in dealing with systems theory

4. Explain 2 types of systems

5. State 8 characteristics of a system

 Systems approach to management

The systems approach to management is one of the

modern management approaches in addition to

situational and management by objectives. The
Systems' approach was initially developed by Ludwig
Von Bertalanfy (1969) who propagated the idea via
his publication called, “General systems”.
 Systems approach to management

 Definition

It is a group of interrelated parts operating as a whole to

achieve stated goals or to function according to plan or

design.
An orderly grouping of separate interdependent

components for the purpose of attaining some pre-

determined objectives. This definition leads to three
important aspects.
 Aspects of the definition

1. Management components must be orderly and

hierarchical, no matter how complex the “whole” may

be.

2. There must be communication among the

independent components of the system.

3. Any interaction among the components must be designed to

achieve the stated objective.

 Therefore, systems approach to management is a theory that looks at

the organization as a whole, examining all relevant organizational

variables/components/parts simultaneously.
 Organizational variables

 These important variables are:

1. The people

2. The tasks

3. Technology

4. Environment
 The approach is to identify the parts of the organization and to discover

how these parts operate independently. The important concepts from

systems theory include the closed and open systems.
 Closed System

 Closed system is a set of interacting elements without any interaction

with the outside environment. It does not depend on outside input.

An example is a battery operated digital watch. Once the battery is
inserted in it, it does not require any element from outside to operate.
 NB:It is not easy to have a system that is totally closed. Usually,
there is an element of external environment.
Open System

It is a system that is dependent on external environment for its survival. An example is the human

body as a system and must depend upon external input and energy for survival.
All organizational systems are open systems, as they usually depend on the external environment for

feedback and resources for the disposal of the finished product. All organizations transform inputs
into outputs. The inputs may be in form of: -
 - Human

 - Energy

 - Raw materials

 - Equipment

 - Information etc and by using certain technology to change these inputs into outputs of finished
goods, services and information.
In this process of conversion, the organization must take into

consideration the dynamics of outside environment and must

continually interact with external variables. For example, when
producing and selling a product, the management must analyze: -
 Internal Operations

 External factors of availability of resources

 Current technological trends

 Market trends and

 Social changes
 The common characteristics of a system

These characteristics are: -

(a)Each System is comprised of many sub-systems that interact with

each other.

(b)Each system is part of a larger one.

(c)It is complex and inter-related such that a change in one variable

will affect a change in the others.

(d)Each system has a special purpose to which all its parts and sub-

systems contribute for achieving that purpose.

(e) Every entity of the system gets information or energy from the other
components within the system and from the system’s environment.

(f) Every entity processes this information or energy in its own way and
sends its input to the rest of the system and external environment (world).

(g) A system can not exist in isolation. It must get inputs from other
systems etc.

(h) A system has a tendency to remain in equilibrium by maintaining a

balance among the various forces operating within and upon it.
 NB Systems approach to management focuses on organization
as a unified system made up to many interrelated parts which
provides the managers with the necessary perspective in:
(i) Planning

(ii) Organizing

(iii)Leading and
(iv)Controlling functions
NB These theories of management evolved between 1890 and
1970
Thank you