WHY STUDY MANAGEMENT

Management in needed in all types and sizes of organizations, at all organizational levels,
in all organizational work areas, and in all organizations, no matter in what country or
location.
Managers have to plan, organize, lead and control. Since management is universally
needed in all organizations, we have a vested interest in improving the way organizations
are managed.
MANAGEMENT TO OTHER FIELDS OF STUDY
Anthropology is the study of society, which helps us learn about humans and their
activities. Anthropologists work on cultures and environments, for instance, has helped
managers better understand differences in fundamental values, attitudes, and behaviour
between people in different countries and within different organisations.
OTHER FIELDS OF STUDY
Economics is concerned with the allocation and distribution of scarce resources.
An understanding of matters such as free trade and protectionist policies is absolutely
essential to any manager operating in the global marketplace.
Philosophy examines the nature of things, particularly values and ethics. Ethical
concerns go directly to the existence of organizations and what constitutes appropriate
behaviour within them. (equality, justice, and freedom are legal rights that have shaped
todays organizations).
OTHER FIELDS OF STUDY
nPolitical science studies the behaviour of individuals and groups within a political
environment. Specific topics of concern to political scientists include structuring of
conflict, allocating power in an economic system, and manipulating power for individual
self-interest.
Sociology is the study of people in relation to their fellow human beings.
OTHER FIELDS OF STUDY
Psychology is the science that seeks to measure, explain, and sometimes change the
behavoiur of humans and other animals.
Both disciplines have contributed greatly to our understanding of people and their
behaviour at work, both as individuals and in group. Most of the concepts and theories
used in organizations are from psychology and sociology.

SCIENTIFIC MANAGEMENT
Scientific management focuses on individuals and their machines or tools. Its philosophy
is that management practices should be based on proven fact and observation, not hearsay
or guesswork. This approach was used to determine the one best way for a job to be
done.
Adam Smith (1776) Wealth of Nations posited that economic advantages can be gained
by organizations and society from division of labour- the breakdown of jobs into narrow
and repetitive tasks.
THE PIONEERS OF SCIENTIFIC MANAGEMENT
The pioneers of Scientific Management were Taylor and the Gilbreths, who were
interested in Work Study. In 1911 F. W. Taylor published his book Principles of Scientific
Management.
Frederick W. Taylor was an American mechanical engineer, and considered the father of
scientific management. He used time-and-motion studies to analyze work flows.

SCIENTIFIC MANAGEMENT
Time-and-motion study entails measuring a workers physical movement when
performing a task and then analyzing the results. Movements that slow production are
dropped.
The goal is to make a job highly routine and efficient.
In the application to management, the scientific approach of Taylor required the
following steps:
THE SCIENTIFIC APPROACH
Develop a science for each operation to replace opinion and rule-of-thumb.
Determine accurately from science the correct time and method for each job.
Set up a suitable organization to take all responsibility from the worker except that of
actual job performance.
Select and train the workers.
Accept that management itself be governed by the science developed for each operation
and surrender its arbitrary power over the workers i.e. cooperate with them.
The following principles were also suggested to guide management:

THE SCIENTIFIC APPROACH

Each worker should have a large, clearly defined, daily task.
Standard conditions are needed to ensure the task is more easily accomplished.
High payment should be made for successful completion of tasks. Workers should suffer
loss when they fail to meet the standards laid down.

SCIENTIFIC MANAGEMENT
Frank and Lillian Gilbreth developed on Taylors idea of work-study, which was
commonly referred to as motion study.
They were engineers who studied hand-and- body motions using motion pictures, with
the intention of reducing the number of motions in a task.
Frank was interested in the best way of doing a job. This involved doing the job in the
most comfortable position, and in the fewest motions.
SCIENTIFIC MANAGEMENT
They developed the basic hand motions which they called therbligs (Gilbreth spelled
backward with the th transposed), which are the basic elements of on-the-job motions.
He identified seventeen basic elements in job motions, and any motion can be broken
down into all or some of the basic elements.
The Gilbreths were also of the opinion that there was one best way of doing things.
SCIENTIFIC MANAGEMENT
Henry L. Gantt worked with Taylor for a time and improved upon Taylors ideas. He
believed management was responsible for creating a favourable environment to obtain
worker co-operation. Some of his main contributions were:
The setting up of a well-measured task for a worker, thus giving him a goal to achieve
this made the worker interested in attaining the goal.
SCIENTIFIC MANAGEMENT
He believed management had a responsibility to train workers.
He advocated proper methods of planning and control. He used graphical recording
systems, machines and man record charts.

Henry Gantt focused on control systems for production scheduling. (Gantt charts are still
widely used to plan project timelines).
ADMINISTRATIVE MANAGEMENT
This focuses on the manager and basic managerial functions, and is closely identified
with Henri Fayol, a French industrialist.
Fayol also specified the fourteen principles of management, and suggested that managers
receive formal training in their application.

Fayols Principles of Management

Division of Work the specialisation of work.
(work should be divided to assist specialization.
nThis is expected to improve productivity, as person will develop the skills needed for a
specific task)
Authority the right to give orders, and power to exact obedience.
(authority and responsibility should be equal.)
Fayols Principles
Discipline obedience, application, energy, behaviour and outward marks of respect.
(discipline help workers to develop the above, and diligence)
Unity of command an employee should receive orders from one superior only.
n(an individual should also report to only one supervisor.)
Fayols Principles
Unity of direction one head and one plan for a group of activities having the same
objective.
(all operations with the same objective should have one manager and one plan)
Equity equality of treatment
(employees should be treated with kindness and justice.)

Fayols Principles
Subordination of individual interests to the general interest the interest of an individual
or group should not supersede the organisations concerns
n(goal congruence is important personal development must be in keeping with the
organizational goals)

Fayols Principles
Remuneration fair payment for services
n(the method and remuneration should be based on the type of work to be done, also
bearing in mind the working conditions.
By making fair payment employees will be more productive, as well as motivated
because of the reward for their efforts).
Fayols Principles
Centralisation degree of consolidation of management functions.
(managers must maintain final responsibility but should delegate certain authority to
subordinates)
Fayols Principles
Scalar chain (line of authority) the chain of superiors ranging from the ultimate
authority to the lower ranks
(The chain of command should be clear. This will help to ensure an orderly flow of
information and supplements the principle of unity of command.
An organizational chart will depict the various levels within the organization)
Fayols Principles
Order all materials and people should be in an appointed place.
(A place for every thing and everything in place.
The right people in the right place, things must be placed closest to the users, taking into
account the frequent usage of the item.
Proper scheduling of work and timetables to complete work is important. This can ensure
materials are in the right place at the right time.)
Fayols Principles
Stability of tenure of personnel limited turnover of personnel
(Management should work towards obtaining long-term commitments from staff.
Unnecessary turnover of staff is costly and works against goal accomplishment.
High turnover will affect output as well as the working relationship within the unit or
section)

Fayols Principles
Espirt de corp harmony, union among the personnel of a concern
(Unity is strength. Harmony and union help to build the strength of an enterprise. It is an
extension of the principle of unity of command, emphasizing the need for teamwork and
the importance of communication.
A group that is not harmonious will not be an effective group).
Fayols Principles
Initiative thinking out a plan and ensuring its success
(workers should be allowed to conceive and execute plans in order to develop their
capacity to the fullest and feel like an active part of the organization.)
BUREAUCRACY
Max Weber was a German sociologist who studied organizational activity. In the early
1900s he developed a theory of authority structures and relations. He described an ideal
type of organization which he called a bureaucracy.
Weber was more concerned with the basic issue of how enterprises are structured. He
formulated ideas on ideal management approach for large organizations.
BUREAUCRACY
The characteristics of an ideal formalized organization as described in Webers
Perspective on Administrative Management are:
A division of labour. In which authority and responsibility are defined very clearly and
set out as official duties.
Hierarchy of authority. Office or positions are organized in a hierarchy of authority
resulting in a chain of command or the scalar principle.
BUREAUCRACY
Formal selection. All employees are selected on the basis of technical qualifications
through formal examinations or by education or training.
Formal rules. Administrators should be subject to strict formal rules and other controls
regarding the conduct of their official duties (these rules and controls would be
impersonal and uniformly applied).

Career managers. Managers are professionals who work for fixed salaries and pursue
careers within their respective fields. They are not owners of the units they administer.
BENEFITS & COSTS OF BUREAUCRACY
The expected benefits of bureaucratic management are efficiency and consistency. A
bureaucracy functions best when many routine tasks need to be done. The lower level
employees can handle the bulk of the work by simply following rules and procedures.
Costs of Bureaucracy include:
Rigid rules and red tape.
Protection of authority.
Slow decision making
QUANTITATIVE APPROACH
The quantitative approach involves the use of quantitative techniques to improve decision
making.
The quantitative approach evolves out of the development of mathematical and statistical
solutions to military problems during World War II.
Quantitative techniques have four basic characteristics-;
QUANTITATIVE TECHNIQUES
The primary focus is on decision making the solution identifies direct actions that
managers can take, such as JIT to reduce inventory costs.
Alternatives are based on economic criteria Alternative actions are presented in terms
of measurable criteria, such as costs, revenues, and dealer returns.
QUANTITATIVE TECHNIQUES
Mathematical models are used Situations are simulated and problems are analyzed by
means of mathematical models.
Computers are essential - Computers are used to solve complex mathematical models
that would be too costly and time-consuming to process manually, such as statistical
process controls

ORGANIZATIONAL BEHAVIOUR
The humanistic perspective encouraged the enlightened treatment of workers and the
sharing of power between managers and workers.
Three subfields of this perspective are the human relations movement, the human
resources perspective, and the behavioral sciences approach.
The most important contribution to the development of organizational behaviour field
came out of the Hawthorne Studies a series of studies conducted during the 1920s and
1930s that provided new insights in individual and group behaviour.
HUMANISTIC PERSPECTIVE
The Hawthorne effect is the likely change in productivity, regardless of whether working
conditions change, when employees are given special attention.
The study demonstrated that human relations is the best approach for increasing
productivity.
The human resources perspective was based on the work of Maslow and McGregor. This
movement emphasized worker satisfaction and need fulfillment as the key factors to
productivity.
HUMANISTIC PERSPECTIVE
Maslow formulated a hierarchy of needs consisting of physiological, safety,
belongingness, esteem, and self-actualization needs.
McGregor classified assumptions about workers under two categories, Theory X and
Theory Y. He felt that Theory Y, which is a more humanistic approach, was a more
realistic view of management.

THEORY X AND THEORY Y

McGregors Theory X manager tough, autocratic and supporting tight controls with
punishment-reward systems the authoritarian.
The contrasting style is that of the Theory Y manager benevolent, participative and
believing in self-controls the democrat. These styles flow from the assumptions about
people that are the original basis of Theory X and Theory Y.

THEORY X AND THEORY Y.

McGregors Theory X and Theory Y are essentially sets of assumptions about behaviour.
He sees two noticeably different sets of assumptions made by managers about their
employees.
The first set regards employees are being inherently lazy, requiring coercion and control,
avoiding responsibility and only seeking security. This is Theory X.
THEORY X AND THEORY Y.
The second set of assumptions sees Man in a more favourable light. In this case
employees are seen as liking work, which is as natural as rest or play.
They do not have to be controlled and coerced, if they are committed to the
organizations objectives; under proper conditions they will not only accept but also seek
responsibility; more rather than less people are able to exercise imagination and ingenuity
at work. These are assumptions of Theory Y
HUMANISTIC PERSPECTIVE
The behavioral sciences approach of the human resource perspective applied theories and
practices from the social sciences to the management of people in organizational settings.
This approach borrows heavily from economics, psychology, and sociology.