Vous êtes sur la page 1sur 26

Investing in Africa’s Future

INTRODUCTION TO
MANAGEMENT (MMS103)

Faculty of Management &


Administration
Africa University
Chapter 2

HISTORY OF MANAGEMENT
THOUGHT
Learning objectives
• To identify and explain the three main schools
of management thought.
• To explain the relationship among some of the
theories of management thought.
• To provide a critique of the various schools/
theories of management.
• To apply management theories into practice.
The historical nature of management

• The practice of management has been there since


time immemorial.
• The Egyptian Pyramids, The Great Wall of China, The
Taj Mahal in India and The Great Zimbabwe are good
examples of areas/ situations where the practice of
management has taken place since ancient times.
• Managers ‘managed’ people and other resources in
order to come up with these structures.
• However, as field of study or discipline, it only gained
significance in the 19th century, i.e. it is relatively
new.
Why so many theories of Management?

• Different scholars touched on different areas of the


field of management since the beginning of the 19th
century.
• Their viewpoints were different, but they were talking
about the same concept: Management.
• The differences in their approaches were mainly as a
result of their backgrounds and interest.
• Some were practicing managers, others were scholars,
others were engineers, others were trade unionist.
• Hence, their contributions were biased towards their
backgrounds.
Theories of management
• According to Robbins et al (2004), the various theories
of management can be classified under three main
approaches/ schools.
o Classical Approach
o Behavioral Approach
o Contemporary Approach
• These approaches/ schools represent various
viewpoints of management.
• Thus each of the theories of management contributes
to the overall understanding of management, but each
viewpoint is a limited view of the whole concept.
The classical approach
• The Classical management approach is perhaps the first ,oldest
and the most widely accepted school of management thought.
• This classical management theory, was developed during the
Industrial Revolution when new problems related to the factory
system began to appear.
• During this time, managers were unsure of how to train
employees (many of them non-English speaking immigrants) or
deal with increased labour dissatisfaction, so they began to test
solutions.
• As a result, the classical management theory developed from
efforts to find the “one best way” to perform and manage tasks.
• The classical approach comprises 3 schools or branches:
1. Scientific management
2. Administrative management
3. Bureaucratic management
Scientific management theory
• The scientific management branch arose because of
the need to increase productivity and efficiency.
• The emphasis was on trying to find the best way to get
the most work done by examining how the work
process was actually accomplished and by scrutinizing
the skills of the workforce.
• The three major contributors of scientific management
are:
a. Frederick Taylor,
b. Henry Gantt, and
c. Frank and Lillian Gilbreth
Frederick Taylor’s scientific management
• Taylor is known as the father of scientific management, mainly
because he used scientific methods to try and improve
employee productivity i.e. promoting efficiency and
effectiveness at work.
• Working as a mechanical engineer at Bethlehem Steel
companies, Taylor was continually disturbed by the worker’s
inefficiencies.
• This was soon after the industrial revolution, when productivity
was very important for business.
• He identified so many reasons for the inefficiencies.
• The First reason was soldiering or slacking off. This is
deliberately working slowly so as to avoid doing a full day’s
work.
• To reduce soldering, he introduced the piece-rate system.
• Piece-rate system is a system whereby employee wages are paid
according to output (work done) rather than according to the
time spend on the job.
• Taylor’s belief was that employees were motivated mainly by economic
incentives (money) than anything else.
• The second reason for the inefficiencies was the fact that there was no proper
way of doing a task.
• Workers were using different techniques to do the same job. i.e. there was no
consistency in output.
• To address this problem, he believed that, by properly studying a task, one can
identify “the best way” of doing it.
• He, therefore, concluded that, management should always study a task first, and
then find out the “best way of doing it”, not leaving it the employees to choose
how to do work.
• This will then guarantee consistency in output allowing management to set
output standards.
• The third reason for the inefficiencies was the fact that during employee
recruitment, management never did proper employee selection.
• That is, workers were placed in jobs with little or no concern for matching their
abilities and aptitudes with the tasks they were required to do.
• To solves this problem, Taylor advocated for proper employee’s selection. i.e.
finding the right man for the job. (interviews).
• The fourth reason for the inefficiencies was the fact that workers were not using
the right tools for their jobs.
• He discovered that workers at Bethlehem steel plant were using the wrong tools,
e.g. very short shovels, too heavy shovels, etc.
• He concluded that it was management’s duty to provide workers with the right
tools for the job.
• This can only be achieved after carrying out tools and methods analysis.
Critique Taylor’s scientific management approach

• The scientific management school failed to


recognise the human side of the organisation.
• It’s too simplistic. Organisational situations differ.
• It is not always the case that there is one best
way of doing things.
• However, some of Taylor’s propositions are still
applicable in today’s business. For example,
timing of work (tasks) is still a relevant practice.
Henry Gantt and the Gantt chart
• Henry Gantt, an associate of Taylor's, developed the
Gantt chart, a bar graph that measures planned and
completed work along each stage of production.
• Based on time instead of quantity, volume, or
weight, this visual display chart has been a widely
used planning and control tool since its development
in 1910.
Illustration
Critique of the Gantt chart
• The Gantt chart is easy to use, easy to construct and
update, and it shows milestones and status of tasks
efficiently.
• However, it is mainly used for smaller tasks. Using it for
large tasks is difficult because there are too many tasks
listed on one paper and this can be confusing.
• Because of the little information that can be displayed
on it, complex projects cannot be effectively
transferred on a Gantt Chart.
• It also does not does not indicate the importance of
one task over another.
Frank and Lillian Gilbreth (The Gilbreths)
• Frank and Lillian Gilbreth, a husband-and-wife team, studied job
motions.
• In Frank's early career as an apprentice bricklayer, he was
interested in standardization and method study.
• He watched bricklayers and saw that some workers were slow
and inefficient, while others were very productive.
• He discovered that each bricklayer used a different set of
motions to lay bricks.
• From his observations, Frank isolated the basic movements
necessary to do the job and eliminated unnecessary motions.
• Workers using these movements raised their output from 1,000
to 2,700 bricks per day.
• This was the first, time and motion study designed to isolate the
best possible method of performing a given job.
Application of the scientific approach to management
• Scientific management theories influenced managers to improve their employee selection and
training processes. (Taylor)
• Again, finding the best way to do a task, promotes effectiveness. (Gilbreths)
• Finding the best man for the job and also providing him with the right tools, promotes both
efficiency and effectiveness. (Taylor)
• Introducing the piece-rate system helped organizations to deal with soldiering.
• Piece-rate system is also a source of motivation for hard workers. (Taylor).
• Although productivity increased, the scientific management theories were blamed for their lack
of human side.
• In the different theories, workers were viewed more like machine rather than humans.
• Specialization forced workers to perform routine, repetitive tasks, which resulted in monotony
and boredom.
• Monotony and boredom results in de-motivation, absenteeism and high turnover.
• Taylor’s conclusion that workers were mainly worried about financial returns than anything else,
is not true, as workers can also be motivated by other factors other than money. e.g. good
working conditions, social factors, etc.
• According to Robbins et al (2011), many of the guidelines and techniques that Taylor, Gantt and
the Gilbreths devised, for improving production efficiency, are still used in today’s organizations
e.g. managers will be using principles of scientific management when they:
 analyse the basic work tasks that must be performed, (Standard Operating Procedures)
 use time-and-motion study to eliminate wasted motions,
 hire the best-qualified workers for a job, (recruitment and selection)
 design incentive systems based on output, they
Henri Fayol’s administrative management
• While Taylor was concerned with first-line managers,
productivity of individuals and the scientific method,
Fayol’s contribution and attention was directed at the
activities of all managers.
• The emphasis was on the development of managerial
principles rather than work methods.
• His belief that management was an activity common
to all business endeavors, led him to develop 14
principles of management.
• His belief was that the 14 principles of management
were essential for an organization’s success.
Fayol’s 14 principles of Management
1. Division of labor: The more people specialize, the more efficiently they can perform their
work.
2. Authority: Managers must have the authority and right to give order so that they can get
things done.
3. Discipline: Employees must obey and respect the rules that govern the organization.
4. Unity of Command: Each employee must receive orders and instructions from only one
superior.
5. Unity of direction: The efforts of each and every employee in the organization should be
towards a common objective, in order to avoid conflict.
6. Subordination of individual interest to the general interest of the organization: The interest
of any one employee or a group of employees should never take precedence over the
interests of the whole organization.
7. Remuneration: Workers must be paid a fair wage for their services.
8. Centralization: Managers should retain final responsibility, but should also give their
subordinates some degree of authority to make their own decisions, with regards to their
work.
9. Scalar chain: There should be a clear, uninterrupted line of authority from top management
to the lowest ranks.
10. Order: People and materials should always be in their right places at the right time. People
should be in job positions best suited for them.
11. Equity: Managers should always be kind and fair to their subordinates.
12. Stability and tenure of personnel: A high employee turnover rate is not efficient.
Organizations should create job security to avoid high employee turnover.
13. Initiative: Subordinates should be given the freedom and room to initiate, formulate and
implement their plans. (motivation)
14. Esprit de corps: Organizations should promote team spirit. Promoting team spirit builds
harmony and unity within the organization.
Critique of the administrative management theory

• It is too formal- the 14 principles are more like laid down rules that
should be followed religiously.
• Vague- some of the concepts have not been properly defined, for
example, the principle of division of labour does not tell us to what
extent i.e. how the task should be divided.
• Inconsistency- some principles are inconsistent, for example, the
unity of command principle is incompatible with division of work.
• Pro-management bias- the theory does not pay sufficient attention
to workers. Workers are treated as biological machines or inert
instruments in the work process.
• Historical value- the theory was relevant then; when organisations
operated in a stable and predictable environment. It may not be
possible for the present day manager to entirely rely upon formal
authority.
Max Weber’ bureaucratic management
• In the late 1800s, Max Weber noticed that many European
organizations were managed on a “personal” family-like basis and
that employees’ behavior was subjective rather than objective.
• In other words employees were loyal to individual supervisors rather
than to the organization.
• Max Weber believed that management was using power instead of
authority to run organizations.
• Power is a unilateral thing- it enables one person to force another to
behave in a certain way, whether by means of strength or by rewards.
(based on the individual)
• Authority, on the other hand, implies acceptance of rule by those
over whom it is to be exercised (based on the office).
• He believed that organizations should be managed impersonally and
that a formal organizational structure, where specific rules were
followed, was important, if productivity was to increase.
• In other words, he thought that authority should not
be based on a person's personality.
• Authority should be something that is part of a
person's job and passed from individual to individual
as one person leaves office and another takes over.
• This non-personal, objective form of organization
was called a bureaucracy.
• This approach views an organization as a system that
relies on rules and regulations, hierarchy, division of
labour and procedures.
• Bureaucracy is a formal, rigid method of managing.
(government, businesses, etc)
• Max Weber identified a number of factors he
labelled characteristics of Bureaucratic management.
Characteristics of bureaucratic management system

• 1. Rules and Regulations- These are formal guidelines that define


and control the behavior of employees while they are on the job.
• Standard operating procedures govern all organizational activities to
provide certainty and facilitate coordination.
• This formal system helps to provide the discipline an organization
needs to reach its goals.
• Adherence to the rules and regulations ensures uniformity,
consistency and stability.
• 2. Impersonal relationships between managers and employees.
• Managers should maintain an impersonal relationship with
employees so that favouritism and personal prejudice do not
influence decisions.
• According to Max Weber, impersonality guarantees fairness for
employees.
• Reliance on rules and regulations leads to impersonality, whereby all
employees are protected from superiors simply be just working
according to the rules and regulations.
• According to him, an impersonal superior evaluates subordinates
objectively on performance and expertise, rather than subjectively on
personal or emotional considerations.
• 3. Division of labour: Managers and employees should perform officially
assigned duties based on specialization and expertise.
• Division of labour is a process of dividing duties into simpler , more specialized
tasks.
• Division of labour promotes efficiency.

• 4. Life-long career Commitment- In a bureaucratic system, employment is


viewed as a life-long career commitment, so employees tend to take ownership of
their organizations.
• Employees tend to respect their organizations as their union with the organization
is for life.
• Job security should be guaranteed as long as an employee is qualified and
performs satisfactorily.

• 5. Competence. Competence, not “who you know,” should be the basis for all
decisions made in hiring, job assignments, and promotions in order to foster ability
and merit as the primary characteristics of a bureaucratic organization.

• 6. Records. A bureaucracy needs to maintain complete files regarding all its


activities.
Critique of BMS
• Rigid rules- these are not effective in a rapidly changing world.
Rules
• There is slow decision making in bureaucratic organizations. This
limits the organization’s ability to respond quickly to an
increasingly dynamic world.
• The effects of rigid behavior are often very damaging for clients
or customer relations and also for management-worker relations.
(customers are not able to get tailor-made services, but have to
accept standardization).
• The bureaucratic system is highly incompatible with professionals
who prefer an environment of freedom to promote innovation
and creativity. Bureaucratic systems tend to discourage
motivation and creativity for intellects.
• The main advantage of this theory is that it promotes uniformity,
stability and consistency of output.
The Behavioral Approach
• As we know, managers get things done by working with people.
• This explains why some scholars have chosen to look at management by
focusing on the organization’s human resources.
• This approach came to life after management realized that the scientific
approach overlooked human side of the employees and that this impacted
negatively on productivity.
• i.e. The Behavioral approach was a concerted effort among theorists and
practitioners to find out if there were other factors (other than money)
that could influence employees productivity and performance.
• The foundation of this approach is, employees are human beings with
different needs and desires, such that if these certain needs and desires
are not met, it impacts so much on their output and productivity.
• In short, humans are not only motivated by money or economic factors,
but by other things like social factors, biological factors, cultural factors,
etc.
• Therefore, the behavioral approach (viewpoint) focuses more on helping
managers deal more effectively with the human element of the
organization.
Development of the behavioral approach
• The behavioral viewpoint emerged, in part, from the Threat of
Unionization, soon after the Great Depression, and, the studies
carried out at the Hawthorne Plant of the General Electric
Company in Illinois, around the 1920s.
• 1. The Threat of Unionization
• Soon after the Great Depression (when the Wagner Act of 1935
legalized union-management collective bargaining), workers
started forming unions in an effort to fight for higher wages and
better working conditions.
• So, management started paying more attention to employee
needs as a union avoidance tactic.
• The belief was, “satisfied workers were less inclined to join
unions”.
• 2. Hawthorne Studies
• Elton Mayo and Western Electric Industrial engineers were the
scientist behind the Hawthorne experiments.
• The experiments came up with conclusions that revolutionized
the way employees were viewed within the organization.

• NB. Traditionally, it was thought that employees performance
responded only to monetary incentives, but after the Hawthorne
experiments the idea was abandoned.

Vous aimerez peut-être aussi