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TechnoprenuershipTRANSCRIPT
MASUNDA M. HIT 210 L2 2015, HARARE INST. OF TECH 1
SCHOOLS OF MANAGEMENT THOUGHT
L2
Schools of management thought
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TEXTS
1.Robin S. and Coulter M. (2010), Management, Pearson education, India
2. Jones and George (2009), Contemporary Management,
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LEARNING OUTLINE
Study questions What can be learned from classical
management thinking? What ideas were introduced by the human
resource approaches? What is the role of quantitative analysis in
management? What is unique about the systems view and
contingency thinking? What are continuing management themes
of the 21st century?
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Time Line of Management Thought
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Major Schools of Management Thought Quantitative management approaches
… Use of mathematical techniques for
management problem solving.
Modern approaches … Systems and contingency views of
organizations.
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Classical approaches to managementThe term used to describe the hypotheses of
the scientific management theorists and the general administrative theorists.
Scientific management
Administrative principles
Bureaucratic organization
Scientific management theorists• Fredrick W. Taylor, Frank and Lillian Gilbreth ,
and Henry GanttGeneral administrative theorists
Henri Fayol and Max Weber
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Scientific Management Contributors Frederick W. Taylor
The Principles of Scientific Management (1911) Advocated the use of the scientific method to
define the “one best way” for a job to be done Believed that increased efficiency could be
achieved by selecting the right people for the job and training them to do it precisely in the one best way.
To motivate workers, he favored incentive wage plans.
Separated managerial work from operative work.
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Scientific Management Contributors
Frank and Lillian Gilbreth Bricklaying efficiency improvements Time and motion studies (therbligs)
Henry Gantt Incentive compensation systems Gantt chart for scheduling work
operations
What can be learned from classical management thinking?
Scientific management (Frederick Taylor) Develop rules of motion, standardized work
implements, and proper working conditions for every job.
Carefully select workers with the right abilities for the job.
Carefully train workers to do the job and provide proper incentives.
Support workers by carefully planning their work and removing obstacles.
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What can be learned from classical management thinking?
Scientific management (the
Gilbreths)
Motion study
Science of reducing a job or task to its
basic physical motions.
Eliminating wasted motions improves
performance.
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What can be learned from classical management thinking?
Administrative principles (Henri Fayol)—rules of management Foresight—to complete plan of action for the
future. Organization—to provide and mobilize
resources to implement the plan. Command—to lead, select, and evaluate
workers to get the best work toward the plan. Coordination—to fit diverse efforts together,
ensure information is shared and problems solved.
Control—to make sure things happen according to plan and to take necessary corrective action.
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What can be learned from classical management thinking?
Administrative principles (Henri Fayol)—key principles of management Scalar chain—there should be a clear and
unbroken line of communication from the top to the bottom of the organization.
Unity of command—each person should receive orders from only one boss.
Unity of direction—one person should be in charge of all activities with the same performance objective.
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Henry Fayol First came up with the five basic functions
of management—Planning, Organizing, Staffing, Directing, Communicating, and Controlling
Max Weber Coined “bureaucracy”: the perfect office
Well defined chain of command Clear division of work (job descriptions) Procedures for any situation Impersonality Employment and promotion based on
technical competenceMASUNDA M. HIT 210 L2 2015, HARARE INST. OF TECH 14
What can be learned from classical management thinking?
Administrative principles (Mary Parker Follett) Groups and human cooperation
Groups are mechanisms through which individuals could combine their talents for a greater good.
Organizations as cooperating “communities” of managers and workers.
Manager’s job is to help people in the organization cooperate and achieve an integration of interests.
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What can be learned from classical management thinking?
Administrative principles (Mary Parker Follett) Forward-looking management insights
Employee ownership creates sense of collective responsibility (precursor of employee ownership, profit sharing, and gain-sharing)
Business problems involve variety of inter-related factors (precursor of systems thinking)
Private profits relative to public good (precursor of managerial ethics and social responsibility)
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What can be learned from classical management thinking?
Bureaucratic organization (Max
Weber)
Bureaucracy
An ideal, intentionally rational, and very
efficient form of organization.
Based on principles of logic, order, and
legitimate authority.
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What can be learned from classical management thinking?(Max Weber) Characteristics of
bureaucratic organizations: Clear division of
labor Clear hierarchy of
authority Formal rules and
procedures Impersonality Careers based on
merit
Possible disadvantages of bureaucracy: Excessive
paperwork or “red tape”
Slowness in handling problems
Rigidity in the face of shifting needs
Resistance to change
Employee apathyMASUNDA M. HIT 210 L2 2015, HARARE INST. OF TECH 18
What ideas were introduced by the human resource approaches?
Behavioral management (or human
resource) approaches include: Hawthorne studies
Maslow’s theory of human needs
McGregor’s Theory X and Theory Y
Argyris’s theory of adult personality
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Human Resources Approach
Robert Owen Claimed that a concern for employees
was profitable for management and would relieve human misery.
Hugo Munsterberg Created the field of industrial psychology
—the scientific study of individuals at work to maximize their productivity and adjustment.
What ideas were introduced by the human resource approaches?
Hawthorne studies
Initial study examined how economic
incentives and physical conditions affected
worker output.
No consistent relationship found.
“Psychological factors” influenced results.
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What ideas were introduced by the human resource approaches?
Maslow’s theory of human needs A need is a physiological or
psychological deficiency a person feels compelled to satisfy.
Need levels Physiological Safety Social Esteem Self-actualization
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What ideas were introduced by the human resource approaches?
Hawthorne studies Employee attitudes, interpersonal relations
and group processes Some things satisfied some workers but not
others. People restricted output to adhere to group
norms. Lessons
Social and human concerns as keys to productivity.
Hawthorne effect—people who are singled out for special attention perform as expected.
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What ideas were introduced by the human resource approaches?
Maslow’s theory of human needs
Deficit principle
A satisfied need is not a motivator of
behavior.
Progression principle
A need becomes a motivator once the
preceding lower-level need is satisfied.
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What ideas were introduced by the human resource approaches?
McGregor’s Theory X assumes that workers: Dislike work Lack ambition Are irresponsible Resist change Prefer to be led
McGregor’s Theory Y assumes that workers are: Willing to work Capable of self
control Willing to accept
responsibility Imaginative and
creative Capable of self-
direction
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What ideas were introduced by the human resource approaches?
McGregor’s Theory X and Theory Y Managers create self-fulfilling prophesies. Theory X managers create situations
where workers become dependent and reluctant.
Theory Y managers create situations where workers respond with initiative and high performance. Central to notions of empowerment and
self-management.
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What ideas were introduced by the human resource approaches?
Argyris’s theory of adult personality
Classical management principles and
practices inhibit worker maturation and
are inconsistent with the mature adult
personality.
Management should accommodate the
mature personality.
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What ideas were introduced by the human resource approaches?
Argyris’s theory of adult personality
Management practices consistent with
the mature adult personality:
Increasing task responsibility
Increasing task variety
Using participative decision making
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What is the role of quantitative analysis in management? Management science (operations
research) foundations Scientific application of mathematical
techniques to management problems Techniques and applications include:
Mathematical forecasting Inventory modeling Linear programming Queuing theory Network models Simulations
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What is the role of quantitative analysis in management? Quantitative analysis today
Use of staff specialists to help managers apply techniques.
Software and hardware developments have expanded potential quantitative applications to managerial problems.
Good judgment and appreciation for human factors must accompany use of quantitative analysis.
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What is unique about the systems view and contingency thinking? Systems thinking
System Collection of interrelated parts that function
together to achieve a common purpose.
Subsystem A smaller component of a larger system.
Open systems Organizations that interact with their environments
in the continual process of transforming resource inputs into outputs.
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Contingency Management Theory
2e2e
Approaches depend on the variables of the situations
Draws on all past theories in attempting to analyze and solve problems
Is integrative Summarized as an “it all depends” device Tells managers to look to their
experiences and the past and to consider many options before choosing
Encourages managers to stay flexible
What is unique about the systems view and contingency thinking? Contingency thinking
Contingency perspective - different ways of managing are required in different organizations and different circumstances. Tries to match managerial responses with problems and opportunities unique to different situations. Especially individual or environmental
differences.
No “one best way” to manage. Appropriate way to manage depends on the
situation.MASUNDA M. HIT 210 L2 2015, HARARE INST. OF TECH 33
Lessons from the systems theory
People are key to commitments and performance
What is done must be evaluated quantitatively and qualitatively
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What are continuing management themes of the 21st century?
Quality and performance excellence Managers and workers in progressive
organizations are quality conscious. Quality provides competitive advantage.
Total quality management (TQM) Comprehensive approach to continuous
quality improvement for a total organization.
Creates context for the value chain.
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What are continuing management themes of the 21st century?
Eight attributes of performance excellence: A bias toward action Closeness to the customer Autonomy and entrepreneurship Productivity through people Hands-on and value-driven Sticking to the knitting Simple form and lean staff Simultaneous loose-tight properties
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What are continuing management themes of the 21st century?
Global awareness Pressure for quality and performance
excellence is created by a highly competitive global economy.
Has fostered increasing interest in new management concepts. Process engineering Virtual organizations Agile factories Network firms
Adoption of Theory Z management practices.
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Theory z
Developed by Dr. William Ouchi (1981) Not necessarily an offshoot of McGregor’s
Theory X/Y, Ouchi’s theory blends modern western management approaches with Japanese management techniques
Ironically, many so-called “Japanese” management techniques such as Kaizen are based on American Edward Deming’s 14 Points For Management
Theory Z focuses on increasing employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job
This means stable employment, and high employee morale and satisfaction by creating opportunities for collaboration, lateral job movements, and multi-level participation in decision-making
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What are continuing management themes of the 21st century?
Contemporary businesses must learn to become learning organizations.
Learning organization success depends on: Culture that emphasizes information, teamwork,
empowerment, participation, and leadership.
Leadership that emphasizes motivation and rewards, communication, conflict and negotiation, teamwork, and change management.
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What are continuing management themes of the 21st century?
In the 21st century managers must
be:
A global strategist
A master of technology
A consummate politician
A leader/motivator
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