Definition of Management: This is the art, or
science, of achieving goals through people. as explained by Classical and neoclassical Theories of Management. Management can be interpreted to
mean literally “looking over” i.e., making sure people do what they are
supposed to do.
Managers are therefore, expected to ensure greater
productivity.
More broadly, management is the
process of designing and maintaining an environment in which individuals,
working together in groups, efficiently accomplish selected aims (Koontz and
Weihrich 1990, p. 4). In its expanded form, this basic definition means several
things. First, as managers, people
carry out the managerial functions of planning,
organizing, commanding, coordinating, and controlling. Second, management applies to any kind of organization. Third, management applies to managers
at all organizational levels. Fourth,
the aim of all managers is the same – to create surplus. Finally, managing is
concerned with productivity – this implies effectiveness and efficiency.
Why Study Management Theory?
Theories are perspectives with which people
make sense of their world experiences (Stoner et. al. 1995, pp. 31-2). Theory
is a systematic grouping of interdependent concepts (mental images of anything
formed by generalization from particulars) and principles (are generalizations
or hypotheses that are tested for accuracy and appear to be true to reflect or
explain reality) that give a framework to, or tie together, a significant area
of knowledge. Scattered data are not information unless the observer has knowledge
of the theory that will explain relationships. Theory is “in its lowest form a classification,
a set of pigeon holes, a filing cabinet in which fact can accumulate. Nothing
is more lost than a loose fact” (Homans 1958, p. 5).
The theory of management is grouped into the five functions of
management. In summary, there are basically three main reasons why we have to
study management theory. First,
theories provide a stable focus for understanding what we experience. A theory
provides criteria for what is relevant. Second,
theories enable us to communicate efficiently and thus move into more and more complex
relationships with other people. Third,
theories make it possible – indeed, challenge us – to keep learning about our
world
CLASSICAL
MANAGEMENT THEORY
There are three well established theories of
classical management which are as follows:
Taylor’s theory of scientific management, Fayol’s theory of administrative management and weber’s
theory of bureaucracy. Although these schools or theories developed
historical sequence later ideas have not replaced earlier ones. Instead each
new school has tended to complement or co-exist with previous ones.
Theories recognizing the role that
management plays in an organization. The importance of the functions of
management was first recognized by French industrialist, Henri Fayol in the
early 1990’s
In
contrast to the purely scientific examination of work and organizations
conducted by f.w. Taylor, fayol proposed that any industrial undertaken has six
function:
1-Technical
2- Commercial
3- Financial
4- Security
5- Accounting
6- Managerial
Of these he believed the managerial function,
to forecast and plan, to recognize, to command, to co-ordinate and control, to
be quite distinct from the other five. Fayol also identified general principles
of management: division of work; authority and responsibility; discipline.
Unity of command. Unity of direction; subordination of individual interest to
general interest; remuneration of personnel; centralization; scalar chain of
authority; order; equity; stability of tenor of personnel; initiative; and exprit
de corps. Fayol’s views on management remained popular throughout a large part
of the twentieth century.
Evolution
of classical approach to management
Traditional process of learning
is either through observation and experiment. Nature or environment is
considered uniform and when we consider certain phenomenon or even uniformly
leading to the same result or results, we conclude a course and effect
relationship between the two. This is learning and observation or in other
words by experience.
Earlier tinkers or management follow this approach
in developing theories of management. Learning principally is through empirical
processes and through analysis of the data collected through observation. Draw
the principles of management by looking at and analyzing the jobs that all
managers commonly do. This approach served as a starting point for pioneers or
management science to verify the validity and improve the applicability of the
principles and practices of management. Analysis of observed data is what
constitute a case study. The observational method of case study help’s arriving
at logical conclusions about past experience and protest the same out standards
for future events. The Germans socialist, max weber followed the classical
approach and developed his theory of bureaucracy, which portrays the structure
and design of organization characterized by a hierarchy of authority,
formalized rules and regulations that served to guide the coordinated
functioning of an organization.
Basic
postulates of the classical approach by max weber
1- Management of an organization is
considered as a chain of interrelated functions. The study of the scope and
features of this functions, the sequence through which these are performed and
there interrelationship leads one to draw principles of management suitable for
universal application.
2- Learning principle of management is done
through the past experiences of actual practicing managers.
3- As business environment consists of
uniform cycles exhibiting an underline units of realities, functions and principles
of management derived through process of empirical reasoning are suitable for
universal application
4- Emerging new managers through formal
education and case study can develop skill and competency in management concept
and practices
5- The classical approach also recognize the
importance of economic efficiency and formal organizational structure as
guiding pillars of management effectiveness.
6- Business activities is based on economic
benefits. Organizations should therefore control economic incentives
Roles
and operations of a classical manager
1- He must have good understanding of
business functions
A classical manager must know the
prerequisites of the organization, its requirements, the right things to do and
the right timing for them to be done. He must know the working principles of
the organization. Talking about the business functions I am talking about what
the business dose.
2- Structure the organization according to
task and assign workers in view of that
The classical manager has to departmentalize
the organization into several departments according to the task he has assigned
to different workers, thereby creating division of labor which will enable the
work to be done speedily.
3- Break down the process of producing the
products the organization makes
A classical manager has to
categorize in great details the process of producing the organizational
products for the case of simplicity.
4- List out what work needs to be completed
and the type of skill a worker will need to complete that work
He has to give an account of the number of works which needs completion
and the type of manpower needed to complete the work.
5- Access his current workforce for the
appropriate individuals and place them in a suitable job role
A classical manager has to checkmate the capability and the level of
productivity of each employees in the organization so as to ascertain the
particular department he or she fits in appropriately.
Neoclassical theory of management
There are three neoclassical theories of
management which are as follows:
1- Human
relation theory:
Explains the modern
advancement of human relation management theory which takes into account human
factors like the employer/employee relationship. Human relations theory is
largely seen to have been born as a result of the Hawthorne experiment which
Elton mayo conducted at the western electrical company. The important strand in
the development of modern management was the increase in attention to the human
factors, which have become known as the “human relation school of management”. The core aspect of human relations theory
is that, when workers where been observed and included in the research, they felt
more important and valued by the
company.as a result, their productivity levels went up significantly. These presented a significant departure from many of
the classical theories, particularly Fordism, as it went against the notion
that management needed to control workers, and remove their autonomy at every
step. Instead, it showed that engaging with workers and considering their requirements
and needs, companies could benefit from increased productivity.
2-Behavioral
theory:
The behavioral management theory is often called the human relations
movement because it addresses the human dimension of work. Behavioral theorists
believed that a better understanding of human behavior at work, such as
motivation, conflict, expectation, and group dynamics, improved productivity.
The theorists who contributed to these school employees as individuals, resources,
and assets to be developed and worked with not as machines, as in the past.
Several individuals and experiments contributed to this theory.
3-Social
system theory:
Developed by Niklas Luhmann is an option for
the theoretical foundation of human resource management (HRM). After clarifying
the advantages of using a grand (social) theory as the basic theoretical
perspective, the root of this social system theory –the deterministic view of systems
as machines, the open system approach and non- linear system theory- are
addresses. Based on the view of social systems as autopoieticaly closed
systems, five major contributions to a theoretical foundations of HRM are
identified
1- The conceptualization of organizing and
managing human resources as social processes, thus overcoming an
individualistic angle
2- The new importance of individuals as
essential element in the systems environment
3- The abstention from far reaching or highly
unrealistic assumptions about the nature of human beings
4- The interaction between various levels and
units of analysis built into the theory which is essential for comprehensive
and in-depth analysis or HRM phenomenon
5- The openness for additional theories for
which social systems theories provides the overall framework.
George Elton Mayo was in charge of
certain experiments on human behavior carried out at the Hawthorne works of the
western electric company in Chicago between 1924 and 1927. His research
findings have contributed to organizational development in terms of human
relations and motivation theory. Elton Mayo contributions came as part of the Hawthorne
studies, a series of experiment that rigorously applied classical management
theory only to reveal its short comings. The Hawthorne experiments consisted of
two studies conducted at the Hawthorne works of the western electric company in
Chicago from 1924 to 1932. The first study was conducted by a group of
engineers seeking to determine the relationship of lighting levels of workers’
productivity. Surprisingly enough, they discovered that worker productivity
increased as the lighting level decreased- that is until the employees were
unable to see what they were doing, after which performance naturally declined.
A few years later a second group of experiments began. Harvard researchers Mayo
and F.J. Roethlisberger supervised a group a five women in bank wiring room.
They gave the women special privileges such as the right to leave work stations
without permissions, take rest periods, enjoy free lunches and have variations
in pay levels and works days. This experiment also resulted in significantly
increased rates of productivity, in this case Mayo and Roethlisberger concluded
that the increase in productivity resulted from the supervisory arrangement
rather than the changes in lighting of other associated worker benefits.
Because the experimenters became the primary supervisors of the employees, the
intense interest they displayed for the workers was the basis for the increased
motivations and resulting productivity. Essentially, the experimenters became a
part of the study and influenced its outcome. This is the origin of the term Hawthorne
effect which describes the special attention research give to a study’s subject
and the impact that attention has on the study’s findings.
Role
and operation of neoclassical managers in modern organizations
1 they are concerned on answering questions
related to the best way to motivate structure
2 to use employees to get things done in
organization rather than focus on production, structures or technology.
0 comments:
Post a Comment