30/01/2023, 20:03 Chapter 01 - Evolution of Management Theories
Chapter 01: Evolution of Management Theories:
LESSON 1
1.1
- management: the process of working with and through others to achieve the organisational objectives in a
changing environment
> also the people who manage this process
4 characteristics of management:
- a process consisting of 4 interrelated tasks
> planning
> organising
> leading
> control
- involves working with & through others
- the aim is to achieve organisational objectives & goals
- it takes place in an ever-changing environment that consists of 3 sections
> internal environment
> market environment (industry)
> remote environment (macro-env)
1.1 Traditional Theories of Management: (7)
1.1.1 Scientific approach to management: (8)
- industrial revolution: the process of change from an agrarian and handicraft economy to one domincated by
industry & machine manufacturing
> focus on:
efficiency
higher productivity
reduced average costs
> there were no procedures or standardization of operations, no standards to judge performance and no
controls to determine if changes led to better performance
- this all changed with the scientific approach to management: this approach involved thorough study and
testingof different work methods to identify the best way to complete a job
- 4 main contributors to this methodology:
1 FW Taylor:
- as per Taylor, scientific management is to find the best way to perform each task
- each manager must follow 4 principles:
> develop a science for each element of work, study & analyse each element and determine the best way
to perform the job
> scientifically select, train, teach and develop workers to help them reach their full potential
> the cooperation of managers with employees to ensure that the scientific principles are implemented
> the division of the work & responsibility equally between managers and employees
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- this principle can be used to determine a fair day's work (what an average worker could produce at a
reasonable pace, daily
2 Frand & Lillian Gilbreth:
- motion studies were used to simplify work, improve productivity and reduce the level of effort required to
perform work
- motion studies broke each task / job into seperate motions and eliminated unnecessary or repetative ones
- time studies were used to determine what a first class worker could achieve in each part of the job, workers
could then get paid determined by their performance in comparison to the standard
3 Henry Gantt:
- he made pay-for-performance plans and the training & development of workers
1.1.2 Bureacratic management: (9)
- bureacratic management was proposed by Max Weber against the idea of monarchies / patriarchies (where
position was determined by birthright, etc)
- bureacracy: the exercise of control based on knowledge, expertse, or experience
- the aim of bureacracy: is not to protect authority, but to achieve an organisation's goals in the most efficient
way possible
- 7 elements that characterise bureacracy:
1 people are hired based on expertise / experience
2 promotion in a business is based on achievements
3 each position is part of a chain of command with clarity on who reports to whom
4 tasks & responsibilities should be assigned to those best qualified to complete them. Authority is vested in
these task-defined positions (rather than in a person) and the authority of each position is clearly defined
5 business rules apply to all its members, regardless of status / position
6 all rules, procedures and decisions should be recorded in writing
7 professional managers rather than business owners should manage or supervise the business
- bureacratic management: the structuring of a business into a hierarchy
1.1.3 Administrative management: (10)
- managerial process proposed by Henri Foyal
- success of a business depends largely on the administrative abilities of managers than on their technical ability
- noted that managers must perform 5 managerial functions functions to be successful:
> planning
determining organisational goals and a means to achieve them
> organising
deciding where decisions will be made, who will do what jobs & tasks and who will work for whom
> coordinating
this has been dropped and is no longer recognised
> commanding
changed to leading: inspiring and motivating workers to work hard to achieve organisational goals
> control (changed to 'leading' recently)
monitoring progress towards goal achievement and taking corrective action when needed
- 14 additional principles of management were identified by this approach:
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> division of work
> authority & responsibility
> discipline
> unity of command
> unity of direction
> subordination of individual interest to general interest
> remuniration
> centralism
> scaler chain
> order
> equity
> stability of tenure of personnel
> initiative
> esprit de corps
- Foyal argued that management should be taught to others (teaching of management in universities, and that
leaders / managers are not born but are educated and gained through experience)
1.1.4 Human Relations approach to management: (11)
- focusses on people, especially on the psycological and social aspects of work
- this approach views people not as extensions of the machinery & equipment, but as valuable organisational
resources
- Mary Follet ('mother of modern management')
- she believed conflict to be a good thing, and identified ways of dealing and managing conflict
- Elton Mayo
> studies by him showed that human factors were more important than physical conditions (in determining
productivity)
> found that workers' feelings and attitudes affected their work & productivity in the workplace
> social pressure from groups also had an effect on employee performance (wiremans in the bank were
studied..p12)
1.1.5 operations management: (12)
- concerned with the transformation or conversion of inputs into goods & services as efficiently as possible
- involves daily production of G&S
- Ops management uses quantitative / mathematical approaches to find ways to increase an organisations
productivity and profitability
and how to improve the quality of its G&S
- quantitative approaches are also used to manage & reduce costly inventories
1.1.6 Quality management: (13)
- the act of overseeing all activities and tasks needed to maintain a desired level of excellence
- 4 components of quality management
> planning for quality
> quality assurance
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> quality control
> continuous quality improvement
- W Edwards Deming ('the father of quality management')
- TQM (Total Quality Management)
> the concept of TQM seeks to improve productivity, through customer satisfaction & employee
involvement
> all members of a business participate in improving processes, products & services and the culture in
which they work
- 4 pillars of TQM:
> systems approach: requires the organisation to be defined as an open system that takes input from the
environment it functions in and adds value through its assets and internal systems to produce outputs to
the environment
> customer focus: recognises internal and external stakeholders as customers in terms of being recipients
of value-adding products / services
> people involvement: a tactic to engage people specifically in the management initiating and planning
processes, in order to get them to take ownership and embrace business plans, goals, structures, systems
and processes as their own
it centres on teamwork & requires management to play a facilitative role in guiding, coaching and
managing team efforts
> process of continuous improvement: assumes that proper planning establishes and approves business
goals
it also assumes that business assessments are used to establish status in terms of the business being
able to fully support the work to be performed to achieve the planned strategic goals and that the
appropriate business drivers have been identified
1.1.7 Information management: (14)
- refers to the acquisition of information from one or more sources, the storage and / or manipulation of the info
and the distribution thereof to those who need it, and the ultimate disposition thereof through storage
1.1.8 Systems approach to management: (14)
- system: a set of interrelated and interdependent parts arranged in a manner that produces a unified whole
> systems can be closed or open
closed systems do not interact with the environment
open systems recognise the dynamic interaction of the system with its environment
- organisations are viewed as open systems
- a systems approach encourages managers to complicate their thinking by looking for connections between the
different parts of the organisation
- this approach viewes the organisation as a system comprising of various subsystems
- it is this line of thought that stresses the interactive nature & interdependence of external and internal factors
in an organisation
- subsystems and their connections with each other in systems create synergy
> synergy occurs when two or more subsystems working together can produce more that when they are
working apart
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