Management Theory Note PDF

**Management Theory Note** **Management: Definition, meaning and concepts** Management as a discipline has many definitions, suggesting that there is no universally acceptable definition of what management is. But some notable definitions of management are: - Management is the process of planni...

**Management Theory Note** **Management: Definition, meaning and concepts** Management as a discipline has many definitions, suggesting that there is no universally acceptable definition of what management is. But some notable definitions of management are: - Management is the process of planning, organising, and controlling the efforts of organisational members, and using all other organisational resources to achieve stated organisational goals. - Management is the process by which individual and group efforts are coordinated towards the achievement of group goals. - Management involves the coordination of both human and non-human resources toward the accomplishment of goals/objectives. - **Mary** Parker Follet defined management as 'the art of getting things done through people.' This means that managers use their employees to perform tasks which will help achieve organisational goals without themselves performing the tasks; and that managers and subordinates should fully collaborate. - Management also can be said to be the process of getting things (planning, organising, staffing, controlling etc. done through people in order to achieve the stated objectives of the organisation. Therefore, It is the task of management to determine how resources should be utilised for a given purposes. Similarly, it involves the efficient and effective coordination of both human and non-human resources in achieving organisational objectives. **Concept of Management** Management can be looked: - As an art - As a science - As a process - As a profession - As a function- management activities are planning, organising, motivating, controlling etc. **Organisation** Organisation refers to the enterprises as a whole or of group activity. Often it is also referred to as a synonym of management. It is the classification of activities of the enterprise and arrangement of personnel to perform these diverse activities so that job is successfully done. Additionally, it is the process of arranging work of men, materials, methods, machines, equipment etc. in a systematic and effective way to accomplish some desired objectives. It is also the process of dividing work into convenient task or duties in the form of posts and appointing qualified personnel to carry them out. It has the following features: a. It is the framework of management process, b. It is a social entity, c. Organisations are intricate human strategies designed to achieve certain objectives, d. Are system of interdependent human beings, - It should provide means of working with others to achieve goals/objectives. All organisations should have: a. Mission/goals/objectives b. People c. Structure **Characteristics of management.** i. Universal application: suggesting that management is a universal activity and should be applied to any form of activity etc. ii. Goal oriented: management has the task of attaining certain objectives. The Process or failure depends on the length it can be able to attain the desired goal. Furthermore, it is judged by the extent it is able to achieve its target. iii. Guidance: the main task is the guidance in the utilisation of material and human resources in the best possible manner. iv. Divorced from ownership: this follows the business entity concept, meaning most often, it's divorced from the ownership. v. Management as a human activity: management functions are discharged only by individuals. vi. Management signifies authority. since its essence is to direct, guide and control, it has to have control. Management cannot discharge its function without authority. **The Development of Management Thought** Management thought has to do with management thinking/ practice by people in antiquity either consciously or unconsciously. The development thought is the evolution of managerial practice through historical investigation as practised by people of old. There has been serious thinking about management prior to modern management theories which began to emerge in the early 20^th^ century. The scientific managers, early management theories and human relations; all made significant contributions to management and were all complementary to one another. Taylor and his associates conducted important time and motion study in late 1880 to 1920 era. Then along came the early theorists in the years 1915 and 1945, providing information about administrative side of Management. Finally, from 1924 to 1954 there were the human relations theorists. Management school of thought are the different views and opinions on management. The early theorist can be divided into two main groups- the practising managers such as Taylor and Fayol, and the social scientists such as Mayo and McGregor. They tend to reflect upon their personal experience of management. These theorists were concerned primarily with structuring of work and organisations rather than with human motivation or organisation culture. They are ascribed to as 'classical' or in some cases 'scientific managers. Their approaches to management were generally prescriptive. While the human relations theorists were concerned about efficiency, working conditions of the workers, the human factor at work, that is social relationships and individual behaviour at work. Those whose work were grounded on the idea of organisations as social systems; such as structure, tasks, technology and the environment are the contingency theorists. **The Classical /Scientific School** These early management theorists' approach to management were primarily concerned with the structure and activities of formal or official organisation rather than with human motivation or organisation culture. i.e., issues such as the division of work, establishment of hierarchy of authority, span of control etc were seen to be of the utmost importance in the achievement of an effective organisation. They were labelled as the classical; in some case as scientific managers. Their approach was generally prescriptive. That is, they set out what managers ought to do in order to fulfil their leadership function within their organisations e.g., Henri Fayol and F. W Taylor. These two managers laid the foundation on the organisation of people at work and the organisation of work itself. **Bureaucracy:** while Fayol and Taylor were grappling with the problems of management, a German sociologist, Max Weber was developing a theory of authority structures in which he identified a form of organisation he called 'bureaucracy'. The distinguishing features of a bureaucracy were a definition of roles within a hierarchy, where job-holders were appointed on merit, and subjected to rules and were equally expected to behave impartially. **The Human Relations School** These theorists (managers) were concerned about human behaviour in the work place; the idea here is that people's need is the decisive factor in achieving organisational effectiveness. Additionally, they were also concerned about the human factor in the work place, thus they concentrated their attention on issues such as employee motivation, interpersonal communication, leadership style, individual satisfaction in the efficient utilisation of resources etc. The figure in this school is Elton mayo, whose association with the 'Hawthorne Studies' provided an enormous impetus to considerations of the human factor at work. Also, an early major influence here was Abraham Maslow's work on motivation based on hierarchy of needs, ranging from basic physiological needs to higher psychological needs. Other important contributors were McGregor, Argris, Likert and Herzberg. **Systems/Contingency School** Another group whose work were grounded on the idea of the organisation as social system produced a more comprehensive view of the behaviour of people at work based on interaction of a number of variables(factors) as structures, tasks, technology and the environment. These managers challenged the dominance of the human relations school; they viewed organisations as complex systems of people, tasks and technology. They were of the opinion that human or social factors alone were not the most important consideration in achieving organisational effectiveness; they recognised that organisations are part of a larger environment with which they interact and in particular were affected by technical and economic factors just as much as social ones. Here we have Fred Fiedler (in his style of leadership). **Frederick Taylor-features of scientific management** i. He was interested in the efficiency of working methods. ii. That managers should develop a science for each operation to replace opinion and rule-of-thumb (initiative) iii. Managers should determine accurately from science the correct time and method for each job iv. Managers should set up a suitable organisation to take all responsibility from the workers v. Managers should select and train workers and be trained in the best possible way vi. Managers should find the "one best person" for each job. And having scientifically measured the workers' jobs and rates set accordingly, then efficient workers should be rewarded for their productivity. His work was concentrated at the shop floor. Shortcomings i. It reduced the workers role to that of rigid adherers to methods and procedures over which they have no control (discretion). ii. It also led to fragmentation of work. iii. Also, it generated a "carrot and stick" approach to the motivation of workers i.e. pay tied to productivity iv. It puts planning and control of workplace activities on management's hands; thus subordinated workers to work system and so divorced the 'doing aspect of work from the planning and controlling aspects, and as such, this led to: a. the creation of boring, repetitive jobs b. the introduction of systems for tight control over work c. alienation of shop-floor employees from management. +-----------------------------------+-----------------------------------+ | 1. **Division of work** | - Work should be divided among | | | individuals and groups to | | 2. **Authority** | ensure that efforts and | | | attention are focused on | | 3. **Discipline** | special portion of the task. | | | | | 4. **Unity of command** | - The right to give orders and | | | exert obedience. | | 5. **Unity of direction** | | | | - Mark of respect i.e. there | | **6. Subordination of individual | should be discipline in the | | interest to the general | organisation. | | interest.** | | | | - One man, one superior i.e. | | **7.Renumeration** | employees should receive | | | order from one superior at a | | **8. Centralisation** | time. | | | | | **9. Scalar chain** | - One head and one plan for | | | group of activities with the | | **10. Order** | same objectives i.e. the | | | entire organisation should be | | **11. Equity** | moving towards a common | | | direction in a common | | **12. Stability of tenure of | objective | | personnel.** | | | | The interest of one individual or | | **13.Initiative** | group should not prevail over the | | | general good. | | **14.Esprirt D' Corps** | | | | Pay should be fair and paid as at | | | when due | | | | | | Always present, depending on the | | | organisation. | | | | | | Line of authority from top to | | | bottom of the organisation. | | | | | | A place for everything and | | | everything in its place-the right | | | man in the right job. | | | | | | All employees should be treated | | | as fairly as possible | | | | | | Retaining productive workers | | | should always be the priority of | | | management. | | | | | | Within the limits of authority | | | and discipline, all staff should | | | be encouraged to show initiative. | | | | | | Team work i.e. management should | | | encourage harmony and general | | | good feelings among employees. | +-----------------------------------+-----------------------------------+ **Max Weber's Bureaucracy** Weber identified three types of legitimate authority- traditional, charismatic and legal-rational. Traditional- where acceptance of those in authority arises from traditions and customs eg traditional rulers, chiefs etc. Charismatic- where acceptance arises from loyalty and confidence in the personal quality of the ruler Legal- rational: acceptance arises out of the office or position of the person in authority as bound by rules and procedures of the organisation. **Features** 1. 2. 3. 4. 5. 6. 7. Thus, authority is legitimate, not arbitrary. It was this point that made Weber to comment that bureaucratic organisations are capable of attaining the highest degree of efficiency and were in that sense the most rational known means of carrying imperative control over human beings". **Abraham Maslow's Hierarchy of Needs Theory** Maslow's studies into human motivation led him to propose his theory of needs based on a hierarchical model with basic needs at the bottom and higher needs at the top. He argued that most people are motivated by the desire to satisfy specific group of needs and that each level in the needs hierarchy must be substantially satisfied before the next becomes dominant, and that and individuals moves up the hierarchy from one level to the next. According to him, the second and most central point is that people tend to satisfy their needs systematically starting with the basic physiological need then moving up the hierarchy; and that not until a particular need is satisfied, a person's behaviour will be motivated by them. He also argued that once a need is satisfied, an individual isn't motivated to satisfy that need, therefore to motivate someone, you need to understand what need level that person is on in the hierarchy and focus on satisfying his need at or above that level. Lastly, the satisfaction of a need give rise to further need for realising one's potentials. **Physiological needs:** need for food, drink, other physical requirement. **Safety needs:** security and protection from physical and emotional harm as well as assurance that physical needs will be met continually. **Social needs:** affection, "belonginess", acceptance, friendship and status within the group. **Esteem needs:** internal esteem factors such as self-respect, autonomy, achievement, and external esteem factors as status, recognition and attention **Self-actualisation:** needs for self-respect, drive to become what one is capable of becoming. **Fig. 1:** A Representation of Maslow's Hierarchy of Needs Source: Maslow (1943) **Frederick Hertzberg's Two Factor Theory** Frederick Herzberg Two Factor Theory (also called the motivation-hygiene theory) proposes that intrinsic factors are related to job satisfaction, while extrinsic factors are associated with job dissatisfaction. He wanted to know when people felt exceptional good (satisfied) or bad (dissatisfied) about their jobs. He concluded that the replies people gave when they felt good about their jobs were significantly different from the replies they gave when they felt badly; certain features were consistently related to job satisfaction and others to job dissatisfaction. when people felt good about their work (job), they tended to cite intrinsic factors arising from the "job context" such as company policy, supervision, interpersonal relationships and working conditions. +-----------------------------------+-----------------------------------+ | Achievement | Supervision | | | | | Recognition | Company policy | | | | | Work it self | Relationship with supervisors | | | | | Responsibility | Working conditions | | | | | Advancement | Salary | | | | | Growth | Relationship with peers | | | | | | Relationship with employees | | | | | | Personal life | | | | | | Status | | | | | | security | +-----------------------------------+-----------------------------------+ In addition, he believed that the table suggested that the opposite of satisfaction was not dissatisfaction, as traditionally believed; removing dissatisfying characteristics from a job would not necessarily make that job more satisfying or motivating). He Proposed that a dual continuum "existed: the opposite of 'satisfaction" is 'no satisfaction" and that the opposite of "dissatisfaction is no dissatisfaction". Again, he believed that the factors that led to job satisfaction were separate and distinct from those that led to job dissatisfaction. therefore, managers who sought to eliminate factors that created job dissatisfaction could keep people from being dissatisfied, but not necessarily motivate them. The extrinsic factors that created job dissatisfaction were called "hygiene factors". When these factors are inadequate, people won't be dissatisfied and they won't be satisfied nor motivated) either. To motivate people, he suggested emphasising motivators- the intrinsic factors having to do with the job itself. ***Contrasting views of satisfaction-Dissatisfaction*** Traditional view Satisfaction dissatisfaction Hertzberg's view Motivators Hygiene factors Satisfaction no satisfaction No satisfaction dissatisfaction **David's McClelland Three Needs Theory** McClelland and his associates proposed the three needs theory which argued that there are three acquired (not innate) needs that are major motives in work. They include the need for achievement ( nAch), which is the drive to succeed and excel in relation to a set of standard, the need for power(NPw), which is the need to make others behave in a way they would not behave otherwise, and the need for affiliation(nAff) which is the desire for friendly relationships. People with a high need for achievement strives for personal achievement rather than for the trappings for rewards of success; they have desire to do something better or more efficiently than its being done before, they prefer jobs that offer personal responsibility for finding solutions to problems in which they can receive rapid and unambiguous feedback on their performance in order to tell whether they are improving and which they can set moderately challenging goals. A high need to achieve does not necessarily lead to being a good manager, because high achievers focus on their own accomplishments, while good managers emphasise helping others accomplish their goals. McClelland show that employees can be trained to stimulate their achievement need by being in situations where they have personal responsibility, feedback and moderate risks. - **Douglas McGregor Theory X and Y**