Chap4 mgmt theory practice

Prepared by: HKP First Prepared on: 09-12-04; ANS Last Modified on: 12-12-05Quality checked by: HKP

Copyright 2004 Asia Pacific Institute of Information Technology

Introduction to ManagementBM007-3-1

Lecture 4 Management –

Theory and Practise

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Topic & Structure of the lesson

•Introduction to the underlying principles on management theory

•Tie-up the theoretical implications in practical realities of organisation

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Learning Outcomes

At the end of this module, YOU should be able to:

• Analyse the various management styles.• Able to apply practical realities to theoretical

assumptions.• Able to understand the founding of management and

scientific theories, as well as the principles of management.

• Tie-up the theoretical implications in practical realities of organisation.

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Main Teaching Points

Introduction to the underlying principles on management theory;

• F.W Taylor and the principles of scientific management• Charles B. Handy organisation theory• Peter F. Drucker the principles of management• Alfred Sloan management and the structure in

organisation• Henry Minztberg the basic parts of an organisation and

the management role• Tie-up the theoretical implications in practical realities

of organisation

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Introduction

• The study of the development of management has been very important for managers because it increases their understanding of human and social behaviour, which in turn helps them in practice

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• Scientific management is an approach that emphasises the SCIENTIFIC STUDY OF WORK METHODS in

order to IMPROVE WORKER EFFICIENCY

F.W Taylor

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• Taylor developed a science of management based on the following four principles: - – Management should observe and analyse all jobs in

order to determine the best method to accomplish them

– Management should scientifically select and then train, teach and develop the best worker for the job

– Heartily corporate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed

– Divide work and responsibility almost equally between management and workers. Management takes over all work for which is better suited than the workers

F.W Taylor

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• Taylor's view was that all work processes can be systematically analysed and broken down into a series of discrete task, and that one best way can be determined to undertake each

• He felt that the scientific approach to organisation and management would be accepted by all as the best way to operate and it would result in everyone getting what they wanted - HIGHER OUTPUT, HIGHER PAY, HIGHER PROFITS

• To motivate workers, he suggested economic incentives. He said that workers are motivated by one thing and

one thing only, i.e. MONEY

F.W Taylor

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• Handy identified over 60 factors that can affect the effectiveness of an organisation

• They are grouped under leadership, group relations, systems and structures, ability, motivation to work, economic environment, physical environment, technological environment

Charles B. Handy

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• According to Drucker, it is management that enables the organisation to contribute a needed result to society, the economy and the individual (Mullins, 1999)

• According to Drucker, management is tasks. Management is a discipline. But management is also people. Every achievement of management is the achievement of a manager. Every failure is a failure of a manager. People manage rather than ‘forces’ or ‘facts’.

• The vision, dedication and integrity of managers determine whether there is management or mismanagement (Mullins, 1999)

Peter F. Drucker

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• Drucker is credited with being the first individual who wrote about Management by objectives (MbO)

• MbO is a process through which specific goals are set collaboratively for the organisation as a whole and every unit and individual within it; the goals are then used as a basis for planning, managing organisational activities, and assessing and rewarding contributions (Bartol & Martin, 1998)

Peter F. Drucker

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• Alfred Sloan, the noted former chairman of General Motors, implemented controls by setting the standard for the level of return on investment that he expected various GE units to achieve.

• This approach let him exercise control over major units by monitoring return on investments, yet it allowed him to maintain a philosophy of decentralisation (Bartol & Martin, 1998)

Alfred Sloan

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• Mintzberg's research indicated that all managers had a similar range of roles, irrespective of their position

Henry Minztberg

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• According to him, their relative importance varied by position, namely: -– Interpersonal roles - the role of figurehead tend to be more

important at the senior level, reflecting the greater positional power. The leader role is important to supervisors, reflecting their greater involvement in ensuring the smooth operation of staff relationships

– Informational roles - the spokesperson role is more predominant at the higher levels

– Decisional roles - the entrepreneur role is equally important throughout the hierarchy. In relation to disturbance handler, the emphasis is at the lower levels. Resource allocator is more important at the middle and senior level

Henry Minztberg

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• Class activity: -– Evaluate the practical implications of the theories

written by the above mentioned writers?

Theoretical Implications

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Quick Review Question

• State the drawbacks of Scientific Management.

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Benefits of Scientific Management

• It’s a rational approach to the organisation of work enabled tasks and processes to be measured with a considerable degree of accuracy

• Measurement of tasks and processes provide useful information on which to base improvements in working methods, plant design

• By providing working methods it brought enormous increases in productivity

• Employees were paid by results • Stimulated managements into adopting a more positive

role in leadership at the shop-floor level

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Benefits of Scientific Management

• Contributed improvements in physical working conditions for employees

• It provided the foundations on which modern work study and other quantitative techniques could be soundly based

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Drawbacks to Scientific Management

• It reduced the worker’s role to that of rigid adherence to methods and procedures

• It generated a ‘carrot-and-stick’ approach to the motivation of employees by enabling pay to be geared tightly to output

• Led to fragmentation of work on account of its emphasis on the analysis and organisation of individual tasks or operations

• Planning and controlling of workplace activities exclusively in the hands of the management

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Drawbacks to Scientific Management

• It ruled out any realistic bargaining about wage rates since every job was measured, timed and rated ‘scientifically’

• The creation of boring, repetitive jobs• The introduction of systems for tight control over work• The alienation of shop-floor employment from their

management

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Follow Up Assignment

• Read Chapter 7 of Organisational Behaviour by by G A Cole

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Summary of Main Teaching Points

• Introduction to the underlying principles on management theory

• F.W Taylor and the principles of scientific management• Charles B.Handy organisation theory• Peter F.Drucker the principles of management• Alfred Sloan management and the structure in

organisation• Henry Minztberg the basic parts of an organisation and

the management role• Tie-up the theoretical implications in practical realities

of organisation

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Q & A

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Chapter 5 – Planning & Decision Making

Next Session