are sets of ideas and rules that are designed to help in

management.

facilitate proper management in planning, organising,

leading and controlling.

A. CLASSICAL MANAGEMENT THEORY

Emphasis on structure

Prescriptive about “ what is good for the firm”

Henri Fayol – ( 1841 – 1925 ) – France

Advantages first person give a definition of management

which is generally familiar today

Give much of the basic terminology and concepts which would be

elaborated by future researchers such as division of labor, unity of

command and centralization.

Division of labor – reduces the span of attention or effort for any person

or group.

- develops practice and familiarity

Unity of command – one man superior

Centralisation – is always present to a greater or less extent , depending

on the size of the company and quality of its

managers.

Disadvantages

Fayol was describing the structure of formal organizations

Absence of attention to issues such as individual versus general interest,

and remuneration

Mention the issues relating to the sensitivity of a patients needs ,such as

initiative and “ esprit de corps “ he saw them as issues in the context of

rational organisational structure.

Principles absorbed into modern day organisations , but they were not

designed to cope with conditions of rapid change and issues of employee

participation in the decision making process of organisations, such as are

current today in the early 21st century.

FW TAYLOR –( 1856 – 1915 )- USA

Key Points about Taylor, who is credited with what we call now

“TAYLORISM”

Taylorism – involved breaking down the components of manual tasks in

manufacturing environments, timing each movement ( time

and motion studies ) so that there could be a proven best way

to perform each task. Thus employees could be trained to be

“first class” within their job.

Advantages

He was in the scientific management school

His emphasis were on efficiency and productivity

It provided the formation for modern work studies

Disadvantages

He ignored many of the human aspects of employment

It ruled out any realistic bargaining about wage rates since every job was

measured and rated “ scientifically “

Team Building theory

emphasizes best practices, and continuous improvement.

It is a theory that mainly hinges on reliance of teamwork.

Consensus management

Edward Deming ( 1841 – 1925 ) France

- founder of modern quality management and is regarded by the Japanese

as the key influence in their post-war economic miracle.

Focus on production and service

Institute modern methods of training on- the- job for including

management

Adopt and institute leadership aimed at helping people to do a better job

Drive out fear

Encourage effective two-way communication

Breakdown barriers between departments and staff areas

Eliminate quotas and numerical targets

Remove barriers to pride of workmanship

Encourage education and self- improvement for everyone

Define top management’s permanent commitment to ever improving quality and

productivity and their obligation to implement all these principles.

Douglas McGregor ( 1906 – 1964 )

Theory X and Theory Y – using human behaviour research, he noted : that the

way an organization runs depends on the beliefs of its managers.

Theory X - gives a negative view of human behaviour and management that

he considered to have dominated management theory from Henri

Fayol onwards – especially Taylorism.( FW Taylor )

- it also assumes that most people are basically immature, need

direction and control, and are incapable of taking responsibility.

- they are viewed as lazy, dislike work and need a mixture of financial

inducements and threat of loss of their job to make them work

( “ carrot and stick mentality )

Theory Y

- The opposite of “ Theory X “, argues that people want to fulfil themselves by

seeking self- respect, self – development ,and self – fulfilment at work as in life in

general.

Six Basic Assumptions for “Theory Y”

1. Work is as natural as play or rest the average human being does not inherently

dislike work, whether work is a source of pleasure or a punishment ( to be

avoided ) depends on nature of the work and its management.

2. Effort at work need not depend on threat of punishment

- if committed to objectives then self – direction and self -control rather than external controls.

3. Commitment to objectives is a function of the rewards associated with

their achievement

- satisfaction of ego and self-actualization needs can be directed

towards the objectives of the organization

4. The average human being learns, under proper conditions , not only to

accept but to seek responsibility.

5.High degrees of imagination, ingenuity and creativity are not restricted

to a narrow group but are widely distributed in the population.

6. Under modern industrial life, the intellectual potentials of the average

human being are partly utilized.

If you are looking for ready – made theories that will turn a failing

business into a successful one, then you will find the answer will

remain elusive and your quest will end in disappointment.

However, a flexible approach and combining old and new

management theories can be far more effective than relying on one

theory..