CHRISTIAN SERVICE

UNIVERSITY COLLEGE
Course: CSBG 243Principles of Mgt
Lecturer: Isaac Ampong (Great Ampong/Spiritual)
Email: iampong@csuc.edu.gh
0244978766
Chapter 2
Management Evolution and Trends

• 2.1 Classical School of Management Thought

2.1.1 Scientific Management and F. W. Taylor
• Scientific management, according to an early definition, refers to
“that kind of management which conducts a business or affairs by
standards established by facts or truths gained through systematic
observation, experiment, or reasoning.”
• Advocators of this school of thought attempted to raise labor
efficiency primarily by managing the work of employees on the shop
floor.
•.
The Basic Principles of Scientific Management

• Developing new standard method of doing each job.

• Selecting training and developing workers instead of allowing them to
self-train and choose their own tasks.
• Develop cooperation between workers and management.
• Division of work on the basis of the group that is best fitted to do the
job
2.2 Henry Fayol’s Universal Process Theory

This school of thought is based on two

assumptions:
• Although the objective of an organization may differ (for example,
business, government, education, or religion), yet there is a core
management process that remains the same for all institutions.

• Successful managers, therefore, are interchangeable among

organizations of differing purposes. The universal management
process can be reduced to a set of separate functions and related
principles.
Fayol identifies fourteen universal principles
of management
• Specialization of labor
• Authority
• Discipline
• Unity of command
• Unity of direction
• Subordination of individual interest to common good
• Remuneration
•
• Centralization
• Scale of chain
• Order
• Equity
• Personal tenure
• Initiative
• Esprit de corps
2.3 Behavioral and Human Relations Approach

• The criticism of scientific and administrative management approach

as advocated by Taylor and Fayol, respectively gave birth to the
behavioral approach to management
• One of the main criticisms leveled against them are their indifference
to and neglect of the human side of the enterprise in management
dealings.
2.4 Elton Mayo and Hawthorne Studies

• Human/social element operated in the workplace and productivity

increases were as much an outgrowth of group dynamics as of
managerial demands and physical factors.
• Social factors might be as powerful a determinant of worker-
productivity as were financial motives.
• Management with an understanding of human behavior, particularly
group behavior serves an enterprise through interpersonal skills such
as motivating, counseling, leading and communicating – known as
Hawthorne effect
• Employees or workers are social beings, so it is very important to fit
them into a social system, resulting in a complete socio-technical
system in an organization.
Criticism

• Following are the criticisms of Hawthorne studies:

• Unreasonably high emphasis on the social or human side as against
organizational needs.
• The approach facilitates exploitation of employees by keeping them
satisfied and happy, manipulating their emotions which in fact, serves
the management goal of increasing productivity.
2.5 Management – Modern Schools of Thought(Neo-
Classical Theory of Management

a)Chester Barnard and Social Systems Theory

Fundamentals of System Approach:
• All organizations are a co-operative system.
• As co-operative systems, organizations are a combination of complex
physical, biological, personal and social components, which are in a
specific systematic relationship by reason of the co-operation of two
or more persons for at least one definite end.
• An employee’s role and his co-operation are a strategic factor in
achieving organizational objectives.
Criticism

• Long on intellectual appeal and catchy terminology and short on

verifiable facts and practical advice.
• Complex in nature, particularly when it comes to the study of large
and complex organizations.
b) Contingency Approach and Recent
Contributions

• Managing Ambiguity and Paradox

• A Bias for Action
• Close to the Customer
• Autonomy and Entrepreneurship
• Productivity through People
• Hands-On, Value-Driven
• Stick to the Knitting
• Simple Form, Lean Staff
c) Quality School of Management

• Quality of the Company’s Output

• Organizational Structure
• Group Dynamics
• Continuous Improvement
• Transparency and Trust
d) Kaizen Approach

• Kaizen means that everyone is involved in making improvements.

Kaizen (pronounced ky‐zen) is based on the Japanese management
concept for incremental change and improvement
• The idea of continuous improvement suggests that managers, teams,
and individuals learn from both their accomplishments and their
mistakes
Kaizen Process

• Identifying opportunities for improvement

• Testing new approaches
• Recording the results
• Recommending changes
e) Reengineering Approach

• Reengineering Approach sometimes called Business Process

Reengineering (BPR), involves a complete rethinking and
transformation of key business processes, leading to strong horizontal
coordination and greater flexibility in responding to changes in the
environment
Reengineering Process

• Develop business vision and process objectives

• Identify business processes
• Scope and measure existing processes
• Design and build new process prototypes
• Implement and manage changes
THE END

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