principlemanagementnotes1.docx

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DEFINITION

Management : A process of planning, organizing, directing (leading), and controlling carried out by people

at the top most hierarchy of an organization to ensure that a proper environment is created to enable

people working in an organization achieve successfully, the objectives of an organization through the

proper utilization (optimization) of scarce resources.

VARIOUS DIMENSIONS OF MANAGEMENTThe various dimensions of management have come about as result of the different levels of management

activities in organisations. The level of management depicts the kind of decision that may be taken. The

three main levels are: Strategic, tactical and operational.

Strategic Managers (top level management)

This level of management is more often charged with the responsibility of developing the vision, mission,

objectives and the game plan of the entire organization. Vision, mission and objectives constitute the

three main elements of strategic management direction.

This level is also responsible for determining, evaluating and adapting the aims or missions of an

organization and the patterns of decisions that give direction and guidance to the achievement of these

aims in the long-term.

Tactical Managers (middle level management)

That aspect of management which facilitates the re-definition of the programmes of the Strategic

Manager i.e. it ensures that the plans of the strategic manager are re-defined in unambiguous terms. It

provides an opportunity for lower level managers to actually get things done. Tactical managers facilitate

the implementation of the policies of strategic managers.

It should, however, be noted that, this level of management is being removed from most organisational

hierarchies making organisation flatter. This is given the term delayering. This has come about as a result

of improvement in information and communication technology, which makes subordinates able to perform

their jobs. Organisational members therefore have access to information-which hitherto was provided by

middle level managers-that facilitates their work. This process is referred to as empowerment.

Operational Managers (Lower Level Management)

That aspect of Management which is concerned with the actual implementation of the strategies evolved

by strategic managers and re-defined by tactical managers. Operational managers may include

assistants or deputies to tactical managers.

The following diagram gives a graphical representation of the three dimensions or levels of management.

THE NATURE OF MANAGEMENT

Strategic Management(Top-level Management)

Tactical Management (Middle-Level Management)

Operational Management (Lower-level management)

Front-line Managers


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responsibility, examples of these positions, and range from responsibility for a production line (where the

term originates) to responsibility for a team of nurses.

This position is of growing relevance in the modern business environment as two factors come into play.

Firstly the reduction in the traditional hierarchy of modern organizations has led to a gradual increase in

the degree of responsibility that organizations place in line management positions, additionally there is an

increasing belief that it is appropriate for more managerial tasks to be delegated to the line managementfunctionwhere managers are close to both employees and customers.

1.3 MANAGEMENT AND ADMINISTRATION (the distinction)

Administration and Management are often used interchangeably and synonymously as Henri Fayol did.

However, many modern writers on management do not share Fayols interpretation of the two concepts -

regarding administration as meaning the same as management

Brech regards Administration as a part of management. In other words, administration is a subset of

management.

Mullins shares the idea of Brech by stating: For our purposes, administration is interpreted as part of themanagement process, and concerned with the design and implementation of systems and procedures to

help meet stated objectives

General interpretations

Administration deals with the general and actual implementation of the policies initiated by the top

management of an organization.

Administration is an activity that takes place below the top management level of an organization and

performed by the functional or the departmental managers and below.

Administration states the job description (what employees are expected to do) job titles, lines of

authority. i.e. who reports to who etc.

Administration puts into action, what is to be done and provides guidance so that what is to be done is

done properly.

ORGANIZATION

As an entity/institution; it is a system or a structure made up of people with set objectives and targets to

achieve. It is made up of people who have well-defined roles and responsibilities to enable them achieve

the overall objectives of an entity.

Organization as an entity includes business institutions, educational institutions, religious institutions,

health institutions, security (military/police) institutions etc.

Organisation could also be seen as a process (organizing). This means identifying and grouping the work

to be performed, defining and delegating authority, establishing relationships for the purpose of enabling

people to work effectively to achieve set objectives.


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THE NATURE OF MANAGEMENT

A lot of practitioners and theorists have tried to explain what management really is. This has resulted in

the development of theories regarding the nature of management. Some think that management has

come to a point where it could be regarded as a profession. Whereas some regard management as a

science; others believe it is an art. Some even believe in the universal applicability of management

concepts and theories.

Management as profession

For us to be able to describe management as a profession, it is important to explore what makes a

profession. In other words, what are the conditions that must be satisfied for a discipline to gain

profession status? The following conditions have been recommended:

A body of principles, skills, techniques and specialized knowledge.

Formal methods of acquiring advanced education, training and experience.

Existence of ethical codes for the guidance and conduct of members

License for members to operate

ADMINISTRATION

An association for the members

Public recognition

On the basis of the above, to what extent do we conclude that management is a profession against the

background of successful managers who did not have any formal education and training in management

but doing extremely well in management?

Peter F. Drucker is of the view that Management is a practice, rather than a science or profession,

though containing elements of both. He further argues that a manager should not be concerned with

professionalism but to manage a business.

There are trends towards professionalism in the areas of

Development of skills/techniques

Formal training

Use of management consultants

Institutes of Management (BIM) (1974)

For example, the British Institute of Management (BIM) (1974) has outlined the following codes for its

members:

To act loyally and honestly in carrying out the policy of an organization and not to undermine its image

or reputation.

To accept responsibility for their own work and that of their subordinates

Not to abuse their authority for personal gain


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Ernest Dale

Dale supports Druckers idea that management is not a universal process. To him, no one person could

be good manager/administrator in academic, business, military or religious concerns since the philosophy

in each institution varies in nature and is not possible for one person to have versatile knowledge in each

institution.

Robert C. Appleby

Appleby contends that management is capable of universal application because both business-oriented

or profit maximizing organizations, and socially-oriented or welfare organizations have scarce resources

to use. Scarce resources need to be judiciously applied to the varying and competing ends/uses. That is

to say, managers can use their skills and knowledge in any institution/organization to achieve the set

objectives/targets.

MANAGEMENT AS A SCIENCE OR AN ART

One source of controversy is whether Management is a Science or an Art or both.

Management as a Science

Science is any knowledge arranged in orderly manner, subjected to observation, experiment, tested,

systematised and finally brought under general principles.

Thus anything referred to as science should have been subjected to various stages of experimentation

and proved to be valid after a generalization technically referred to as a hypothesis.

Scientific Management

For management to be regarded as a science it must use scientific methods in its application. Scientific

methods involve;

Formalized and procedural way of doing things

Application of systematized principles like Fayols 14 principles and system of controlling

Scientific management is management that organizes knowledge that has been built up through scientific

means. If a manager manages through the use of formula, procedure or memorization of some principles,

it is scientific management. Such a manager is likely to overlook practical realities.

Management as an Art

An art is a practical skill acquired through a long period of experience without any form of rigidity. It is

traditional way of doing things without any element of formal training. It could also be described as the

use an inherent know-how to achieve a desire result.


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CHANGING TREND

The concepts of evolution and development have created a paradigm shift in emphasis to the point that

management is now regarded as a distinct subject or course of study vigorously studied in many

educational institutions. The existence of many management and administration educational institutions

the world over are practical demonstration of the fact that there has been a paradigm shift in emphasis.For example, we have Business Schools all over the world and in Ghana we have, KNUST School of

Business, Ghana Institute of Management and Public Administration [GIMPA], Institute of Professional

Studies [IPS], etc.

Even though the renowned authorities in the field of management achieved fame through personal

intuition, practice and experience [Art], the fact remains that many went through formal training in it

[Science].

The various principles of management propounded by Henri Fayol were the results of many years of

practice and formal training.

INTER-DISCIPLINARY NATURE OF MANAGEMENT

Management has assumed inter-disciplinary dimension since it borrows ideas from various fields such as

Economics, Law, Sociology, Psychology, Anthropology and Accounting.

The good general manager is the one who can articulate and demonstrate rich knowledge in many

related disciplines in addition to the key functional areas of Management. For example, the Finance

manager should be able to understand marketing issues relating to customers satisfaction, brand image

and other related issues.

Thus, the inter-disciplinary nature of management compels managers to broaden their knowledge in the

relevant and related disciplines.It can therefore be concluded that experts in the other relevant disciplines

needed in management have also contributed to the evolution and development of management.

THEORIES/APPROACHES TO MANAGEMENT

A lot of theories have been developed to underpin the concept of management in organisation. Among

some of these schools of management thought are the classical or traditional approach, the behavioural

approach, the system approach and the contingency approach.

Classical /Traditional Approach

The key assumption under this approach is that people are rational and economically oriented in their

approach towards work.

The approach focuses extensively on formal organizations. It also deals with management and

organizations by emphasizing more on the organizations purpose and formal structure

Proponents of this approach also placed greater emphasis on planning of work, the technical

requirements of the organization, principles of management, and rational and logical behaviour. The

classical school tried to lay down universal principles for the structure and organisation of a business.


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Branches/Dimensions of the Classical Approach

The classical approach is made up of:

Scientific Management.

Administrative Management

Bureaucratic Management

Scientific Management

It aims at improving the general manufacturing process with a view to improving productivity.

It is also concerned with formulating proper work procedures so that materials will flow uninterrupted.

It lays emphasis on scientific methods of doing things rather than the use of personal intuition,

experience, practice and guess work.

Pioneers in the Field of Scientific Management

Scientific management was based on the work of Frederick Winslow Taylor [1856-1915]. He was

described as the Father of Scientific Management. He was born in Boston, Massachusetts and started

work as an apprentice in engineering. He spent most of his time working and achieving greater efficiency

at the shop-floor. His solutions to problems of efficiency were from his own practical experiences. He rose

through the ranks to become a Manager in the Midvale Steel Co. He also worked with Simonds Rolling

Machine Co. It was at Bethlehem that heconducted experiment on how to improve labour productivity. He

consolidated his ideas into a book The Principles of Scientific Management [1911].

Taylor contributed to the study of management in the following areas:

The need to develop scientific methods of doing things rather than opinion and rule-of-thumb.

Scientific selection of workers with properly defined roles and responsibilities.

Scientific education, training and development of the worker

Scientific development of intimate, friendly and co-operative spirit between management and labour.

According to Taylor, the success of the above principles required a complete mental revolution on the

part of management and labour. This required substituting facts or scientific method for intuition, opinion

and guesswork.

Taylor was concerned with finding the one best way to perform a task. His basic philosophy of work was

based on motivation. He believed that prosperity of both the employer and the worker could only be

achieved through maximizing productivity. Taylor suggested that organisations would be more efficient if

their knowledge, experience and practices were analysed and the best methods established by

management.


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reward system was a bonus for each worker who accomplished the set standard and additional bonus if

all the workers collectively achieve the standard. To Gantt this reward system would spur supervisors on

to train their workers to work hard and earn more.

Contributions/benefits from scientific management

Scientific approach to doing things leads to general improvement in working conditions.

Scientific improvement in working methods leads to increased in productivity all other things being

equal.

It enables workers to be paid by results and to take advantage of packages.

The scientific approach to management enable managers to adopt a more positive role in leadership

styles at the shop floor level in particular.

It was the basis and the foundation for advanced studies [motion study]

It created orderliness through a well-designed organizational structure.

It reduced putting square pegs in round holes since workers were carefully selected based on their

abilities to do a particular work.

It emphasized the importance of training and development of employees to enhance their productive

efficiency.

It provided supervisors with the necessary support to make them more effective

Limitations/drawbacks of the scientific management

Workers resented Taylors position expressing anxiety that working faster or harder will exhaust work

and may lead to redundancy and consequently lay-offs.

The faster work rate which implied speed up was criticized since it exerted pressure on the work force toachieve a set standard to qualify for an incentive package.

Scientific management had little regard for human feelings and sentiments. The emphasis was too

much on hard work and increased productivity.

Greater emphasis on productivity and profitability made the manager to exploit the worker and the buyer

of his products.

The worker was made a rigid adherent to methods and procedures to the detriment of discretion and

initiative.

It narrowed motivation to bonus system of incentive to the neglect of other methods of motivation such

as respect for human rights.

The approach gave managers at the workplace the exclusive right to plan and control activities.

The system of bargaining for conditions of work was absent since every job was scientifically measured,

timed and rated.


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Administrative management principles/theory

The administrative principles/theory was also regarded as classical organization theory. Its two major

purposes are;

To develop basic principles that could guide the design creation, and maintenance of large

organizations;To identify the basic functions of managing organizations.

Henri Fayol [1841-1925]

He was French industrialist and had extensive business experience. He founded the classical approach.

He started work as a mining engineer at the age of 19. He spent his entire working life with the same

company and rose to become the managing director at the age of 47 and retired at the age of 77. He

published his lifetime working experience in his book Administration

Industrielle et generate in 1916. The book was later translated by Storrs [1949] into English to read

General and Industrial Management.

Fayols concern was on the totality of an organization. To him, management was the most neglectedaspect of business operation. Before Fayol, the general believe was that managers are born and not

made. That is to say, no one could become a manager through formal training.

However, Fayol was of the view that management was a skill like any other, and that, it could be taught

once its underlying principles were understood. He was thus given the following accolades:

Father of classical approach

Practical man of Management

Father of modern management theory

Key areas of Contribution

Fayol contributed to modern management theory through the development of his 14 Principles [blue-print

of management].

1. Division of labour

Fayols objective here was to maximize both the amount and quality of production for a given

degree of effort, hence he argued for the advantages of specialization. An interesting idea he

raises particularly in relation to Taylors ideas (which will be discussed in later chapters) is that

there are limits to the division of labour, which experience teaches us should not be exceeded.

2. Authority and responsibility

Fayol suggests that management has the right to give orders and to expect obedience. Managers

derive authority either from their official position or personal qualities. Wherever authority is

exercised, responsibility arises. Fayol (1949).

3. Discipline

Fayol argued that discipline marks a mutual respect between the organization and its employees.

He embodies the principle that a manager can take sanctions in the case of a breakdown of

discipline.


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4. Unity of command

For any action whatsoever, an employee should receive orders from one superior only. Fayol

(1949).Thus he argues that authority should be clearly allocated and suggests that if command is

divided or unclear it is a continual source of conflict.

5. Unity of direction

He argues that for any group of activities with the same objective, there should be one clear

leader and one clear plan so as to provide for unity of action.

6. Subordination of individual interest to general interest

In any organization there will at least be times when individual interests differ from the interests of

the organization. Fayol argues, The interests of one employee or group of employees should not

prevail over the interests of the concern or organisation.

7. Remuneration of personnel

Salaries - the price of services rendered by employees - should be fair and provide satisfactionboth to the employee and employer. It shall not go beyond reasonable limits.

8. Centralization

The degree of centralization, Fayol argues, is a question of proportion and will vary according to

different cases. It will depend, he argues on the character of the manager, the condition of the

business and the reliability of the subordinates to whom the manager can delegate.

9. Scalar chain

Fayol argues for a clear chain of authority through which communication should flow. He did

however appreciate that some activities require speedy action and recognizes that it was

appropriate for people at the same level of the organisation to communicate directly. Notably he

required superiors to approve any such communication. He also expected some measure of

initiative at all levels of authority. Fayol (1949)

10. Order

Fayol approved of both social and physical order. This could be summarized as the right thing

in the right place at the right time. Appropriate selection should ensure competent people are in

place, their tasks, responsibilities and places of work should be clear. Echoes of this approach

are clearly apparent in what are seen as relatively new practices such as Just in Time.

11. Equity

Managers are encouraged to be both fair and friendly to employees. Fayol argues, Equity

requires much good sense, experience and good nature. Fayol (1949)

12. Stability of tenure of personnel

Fayol felt that high employee turnover was not the best and that mangers in particular, if they


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were to develop themselves fully, required as much security as was possible. He noted however

that the stability it was possible to generate in any industry depended on the commercial

environment in which the organization was operating.

13. Initiative

Fayol argues that initiative is a source of strength for an organization, particularly in times of

difficulty. Initiative he felt should be encouraged at all levels and The manager must be able to

sacrifice some personal vanity to grant this satisfaction to subordinates Fayol (1949). In a

sentiment as appropriate today as it was at the turn of the century he states A manger able to do

so is infinitely superior to one who cannot.

14. Esprit de corps

In a sentiment possibly borrowed from the military, Fayol outlines the importance of harmony

within, and commitment to, the organization. He describes in particular two methods to help build

such a spirit, the use of verbal rather than written communication wherever possible and secondly

the avoidance of encouraging dissension among subordinates.While Fayols principles are widely quoted, he did not intend them to be set in stone but rather as

guidance for management action, which must always take into consideration the prevailing

circumstances.

Functions/Process of Management

Planning- Selecting the activities and methods for achieving them, either for the organisation as a

whole of for a part of it.

Organizing- Establishing the structure of the tasks to be performed to achieve the goals of the

organisation; grouping these tasks into jobs for an individual; creating groups of jobs within

departments, delegating authority to carry out these jobs, providing systems of information and

communication and co-ordinating activities within the organisation.

Leading- Giving instructions to subordinates to carry out tasks over which the manager has

authority for decision and responsibility for performance.

Co-ordinating Harmonising the activities of individuals and groups within the organisation.

Management must reconcile differences in approach, effort, interest and timing.

Controlling - Measuring and correcting activities to ensure that performance is in accordance with

plans. Plans will not be achieved unless activities are monitored; and deviations identified and

corrected as soon as they become apparent.These functions have been re-organized into

planning, organizing, leading and controlling.

Lyndall F. Urwick

He was a prolific writer on administration and management. He had rich working experience in

industry business consultancy and the armed forces. He was strongly influenced by the ideas of

Henri Fayol in particular. He advocated the use of principles as the only way social organization

could be controlled .He translated this into his best known-book The Elements of Administration

published in 1947.


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His principles of management represented a code of good practice which he claimed if strictly

adhered to should lead to success in administration or management. His work resulted in the

development of the following ten (10) principles:

1. Objective

2. Specialization

3. Co-ordination

4. Authority

5. Responsibility

6. Definition [job]

7. Correspondence [authority and responsibility]

8. Span of control

9. Balance [of all depths]

10. Continuity [going concern]

Urwick principles concentrated more on getting the organizational mechanisms right rather than

focussing on issues such as remuneration and morale.A major weakness of Urwick principles is

its concentration on the internal environment to the detriment of the external environment. No

organization can succeed without the external environment. This is because; organizations are

open-systems not self-contained. They have to respond to pressures from the external

environment-social, economic, cultural, political, etc.Urwick also identified the key

functions/process of management to be planning, organizing and controlling. He expanded the

controlling function to include staffing, selecting and placing. His

controlling function served as the foundation or the forerunner to personnel /human resources

management and the human relations approach to management.

E. F. L. Brech

Even though Brech shared the opinion of using principles, he was concerned with the

development of people in organizations. He was less advocate of the use of principles. Instead,

he emphasized the use of flexibility according to a particular situation. He also emphasized the

need for written definitions of responsibilities and the value of job descriptions as an aid toeffective organization and delegation.Breech sees management as a social process, for planning

and regulating the operations of an enterprise towards an agreed objective. To him, the process

is carried out within a framework known as organizational structure.He argued that the key

elements in developing an organizational structure are:


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Defining the responsibilities of management, supervisors and specialist personnel.

Determining how the responsibilities should be shared.

Co-ordinating the execution of the responsibilities

Maintaining a high level of morale among personnel.

Brechs principles of management overlap those of Fayol and Urwick. However, they are less

dogmatic than the others. Some of his principles are division of responsibilities, clear lines of

communication, unity of command, and allocation of authority. His principles are contained in his

book The Principles and Practice of Management [1975].

Brech regrets that there are no generally accepted principles of management since each writer

has formulated his own principles. In the absent of general agreement on the fundamental body

of principles, Brech finds it difficult to regard management as a science or a profession

Contributions/benefits from the administrative theory

The numerous principles that have evolved have provided blue- prints in management. The works

of Fayol, Follett and others have set the foundations for present emphasis on the key

components of the function/process of management-planning, organizing, directing/leading and

controlling. Follettes principle of making every worker part owner in a business is still valid today

as we often hear of workers in troubled unionised organizations agitating to take up ownership

and management by using their end-of-service benefits to buy shares. It has enhanced and

promoted the skills of managers. The use of principles makes room for little deviations since the

principles provide blue-print and direction. In this way, trial and error are minimized.

Criticisms /Drawbacks to the Administrative Principles. Dogmatic adherence to principles stifles

initiative and discretionary use of authority Principles are not applicable in all situations since weare in a dynamic environment. They cannot be used as rule-of-thumb Since organizations cannot

function without people, the disregard for human factors that will apply the principles is a serious

drawback to the Administrative Principle.

Bureaucratic Management

This is the third arm of the classical approach. The most important personality associated with

bureaucracy is Max Weber [1864-1920]. As a German sociologist, psychologist and a practising

manager, he was the key innovator of the concept of bureaucracy. His views on bureaucracy

were published in his book The Theory of Social and Economic Organization He used

bureaucracy to describe a form of organization that exists in almost every organization.

The concept of bureaucracy often referred to as red tapeism i.e. too many rules, regulations and

paperwork which often lead to inefficiency. It is referred to as officialdom i.e. all the apparatus of

central and local government.

The concern of Weber was on bureaucracy as a form of organization with hierarchy of authority

regulated by rules and regulations. He saw the development of bureaucracy as a means of

introducing order and rationality into social life.


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He identified the characteristics/features of bureaucracy as follows: Every organization functions

continuously through rules and regulations. Need for competence, division of labour and

specialization. Allocation of authority regulated by rule. Appointment to positions/offices made on

the basis of technical competence A hierarchical arrangement of offices/jobs i.e. work should be

arranged in hierarchical order with control systems. The need to separate working staff from the

ownership of the organization. Rules, decisions and actions are formulated and recorded in

writing. Official positions exist in their own right and the job holder has no right to a particular

position except through promotion or initial occupation based on merit.

According to Weber, the above characteristics/features make bureaucratic organizations capable

of attaining the highest degree of efficiency since to him, it is the most rational means of

controlling workers or members in an organizations. He believed that bureaucracy is

indispensable for the needs of large-scale organizations. The size [large] and complex nature of

organizations make bureaucracy inevitable in such organizations.

Webers legitimate authority

Max Weber identified three types of legitimate authority:

Traditional authority- This is where acceptance of authority is based on tradition and custom.

Charismatic authority- The acceptance of authority is based on loyalty to, and confidence in the

personal qualities of a person in authority.

Rational-Legal authority This is also based on the office or the position a person legitimately

occupies; regulated by rules and procedures of the organization.

Contributions/benefits from Webers bureaucracy

The need for fairness and uniformity of treatment of workers demands bureaucracy.

Adherence to rules and procedures does not make room for arbitrariness.

The element of hierarchy of authority creates orderliness and respect for higher authority.

The elements of division of labour and specialization put the worker on the right job/task.

Limitations/drawbacks of Webers bureaucracy

Too much emphasis on rules, procedures, record-keeping and paperwork may lead to delay

and inefficiency.

There is the tendency of workers to place too much reliance on rules and procedures to the

detriment of initiative and discretion.

Bureaucracy does not make room for flexibility and adaptation

It disregards informal organization and the development of groups with their own goals.


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THE BEHAVIOURAL APPROACH

It was made up of a group of management scholars trained in behavioural disciplines such as

Sociology, Psychology, Anthropology and related fields who used their diverse knowledge to

propose more effective ways to manage people in an organisation. It was developed to take care

of the human element in organizations which was a major limitation of the classical approach.

The major assumption that underlines the behavioural approach is that people are social and self-

actualizing.

Dimensions of the Behavioural Approach

Human Relations

This approach deals with how managers interact with their workers. Proper worker management

leads to organizational harmony and increases productivity. Many antagonisms, suspicions,

acrimonies, wrangling, strikes, riots, demonstrations, etc. are often the result of how people in an

organization are treated. In a wider perspective, the way the government manages the various

ethnic factions can also affect the relations between the government and certain ethnic groups.Human relations sub-approach was founded by Prof. Elton Mayo (1880-1949).

The approach is deeply rooted in the social environment and personality trait of the manager

unlike the classical approach which emphasized the physical environment. Expert in this

approach say that managers should be trained in both technical skills and people skill.

The main underlying principle in this approach is that the achievement of organisational

effectiveness depends on how peoples needs and wants are satisfied. Under the human

relations approach, managers must know why their subordinates behave in a certain way and the

psychological and social factors that influence them. The human relations approach led to the

famous Hawthorne Experiment conducted by Prof. Elton Mayo.

Hawthorne Experiments

The genesis of the experiments was the desire of the National Research Council [NRC] of the

National Academy of Sciences to study how lighting in the workplace influenced individual

efficiency. This led to what has become popularly known as the Hawthorne Studies.

The experiments conducted by Mayo at Western Electric were;

To determine the effects/impacts of changes in illumination on worker productivity.

The determine the effects of work-related periods, coffee breaks, shortened work days and

other changes in working conditions on worker productivity. This was the relay assembly room

experiments.

To interview workers to determine workers attitude.

To analyse the various social factors at work.


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Douglas Murray McGregor [1906-1964)

McGregor developed Theory X and Theory Y which are sets of assumptions about human

behaviour. He wrote the book The Human Side of Enterprise

Theory X regards employees as being inherently lazy, requiring coercion and control, avoiding

responsibility and only seeking security. Under this theory, work is distasteful and therefore

workers must be directed and motivated through force, pecuniary consideration (financial

incentives) and praise to achieve results.

Theory Y sees man in a more favourable position. It regards employees as liking work which is

regarded as natural. That the worker should not be directed, controlled and coerced if he is

committed to the directives of the organization. Under this theory, the worker will accept

responsibility.

The above theories have become the basis for the extreme forms of management style that

managers are using. A blend of the two theories may provide the best prescription for effective

management.

Abraham H. Maslow

As a motivation theorist, his hierarchy of needs influenced the work habits of people at the

workplace. He identified the levels of needs to be:

Physiological needs

Safety needs

Love/Affection needs

Esteem/Ego needs

Self-Actualization

According to Maslow, the manager should know the level of the hierarchy on which his

subordinates are so that he can apply the appropriate motivational factors to move them up to the

next level of hierarchy. The behaviour of workers will to some extend be influenced by the degree

to which their needs are satisfied.

SYSTEMS THEORY

During the 1940s and World War II, systems analysis emerged. This viewpoint uses systems

concepts and quantitative approaches from mathematics, statistics, engineering, and other

related fields to solve problems. Managers find optimal solutions to management problems by

using scientific analysis which is closely associated with the systems approach to management. A


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system is an interrelated and interdependent set of elements functioning as a whole. It is an open

system that interacts with its environment. It is composed of inputs from the environment

(material or human resources), transformation processes of inputs to finished goods

(technological and managerial processes), outputs of those finished goods into the environment

(products or services), and feedback (reactions from the environment). Subsystems are systems

within a broader system. Interdependent subsystems (such as production, finance, and human

resources) work toward synergy in an attempt to accomplish an organizational goal that could not

otherwise be accomplished by a single subsystem. Systems develop synergy. This is a condition

in which the combined and coordinated actions of the parts of a system achieve more than all the

parts could have achieved acting independently. Entropy is the process that leads to decline.

Contribution of the System Approach

It ended the dominance of the classical and the behavioural approaches.

It blended the opposing views of both the classical approach and the behavioural

approach.

It brought to fore the important role the environments and its elements play on business

activities.

It cautions managers to be circumspect in the decision-making process since a decision

made in one department can affect almost all the other departments

It creates the awareness of sub-systems each with potentially conflicting roles and goals

which must be integrated.

It focuses attention on inter-relationships between it and its environment i.e. the need of

the system as a whole.

Limitations/Drawbacks/Criticisms of the Systems Approach

It is perceived that some organizations operate successfully and achieve their corporate

objectives under the closed system i.e. without recourse to the external environment. Examples

are Catholic Monastery and the Trokosi in the Volta Region of Ghana.

The environment and its elements sometimes have negative impact on organization. The external

environment has negative socio-cultural practices that may adversely affect other organizations

that may relate to it.

Breakdown of a sub-system of a system may affect all the other systems and a generalbreakdown of the entire systems.

The impact of a decision in one department on the entire organization may cause managers to be

over-circumspect. This may lead to delays in decisions or no decisions at all.


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CONTINGENCY VIEW

In the mid-1960s, the contingency view of management or situational approach emerged. This

view emphasizes the fit between organization processes and the characteristics of the situation. It

calls for fitting the structure of the organization to various possible or chance events. It questions

the use of universal management practices and advocates using traditional, behavioural, and

systems viewpoints independently or in combination to deal with various circumstances. The

contingency approach assumes that managerial behaviour is dependent on a wide variety of

elements. Thus, it provides a framework for integrating the knowledge of management thought.

Contributions to the Contingency Approach

It gives rise to the notion that different problems require different methods of approaches

of solution.

It calls for the application of different management styles in dealing with different

situations.

It has eliminated some of the loopholes associated with the classical approach. Forexample, the classical approach wanted to find only one best way of doing things. The

contingency approach does not subscribe to this.

It creates a synthesis and a collaborated relationship among other approaches.

Limitations/Drawbacks/Criticisms of the Contingency Approach

The ideal of psychic unity of mankind implies that certain principles and

perceptions are capable of universal application.

Different management styles based on situational analysis may not always yield

the same expected results.

Management Science/ Quantitative approach

The emphasis of this approach is on the use of quantitative techniques in solving

management related problems in the areas of Statistics, Mathematics and Computers.

This approach emerged out of Operation Research approach. As a result the two

[management science and operations Research] are often used

interchangeably/synonymously. The focus of the approach is on technical problems

rather than on Human/personal problems. The computer has emerged as a very

important facilitator to this approach. Why?

Practical application of management science approach includes:

1. Mathematical forecasting- for projections into the future for planning purposes.

2. Inventory modelling- to exercise effective control over inventories by mathematically

establishing how much/many to order and produce.

3. Linear programming- it deals with the allocation and utilization of scarce resources

among competing ends/uses.


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4. Queuing theory- it deals with the facilitation and allocation of service personal or work

stations to minimize customer waiting time and service cost.

5. Network model/analysis- breaking large tasks into smaller and simple components so

that they can be properly worked on. It can also be used to map out programmes of

activities in such a way as to create the most effective planning and control.

6. Simulation- make models of problems to create hypothetical situations to test different

solutions under various assumptions

The above techniques aim at;

i. Rational decision

ii. Economic viability of such decisions based on proper cost, revenues and returns on

investment analysis.

iii. Using appropriate mathematical models based on formulas and rules.

iv. Using computers for faster processing of large mass of data.

Contributions of the Management Science Approach

Introduction of the various techniques.

Use of mathematical models in dealing with productions issues often lead to

concise and unambiguous solutions in contrast with the behavioural approach.

It has improved on the mathematics/quantitative reflexes of managers.

Limitations of the Management Science Approach

The fact that management is a behavioural science implies that it is not in all

cases that a mathematical model can be used to explain why a person behaves

in a certain manner towards another.

The use of computer in analysing certain events may sometimes be influenced

by human beings who operate it and this may lead to manipulation of figures.

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