TOPIC 2: APPROACHES TO MANAGEMENT

2.0 APPROACHES TO MANAGEMENT

By the end of this chapter the learner should be able:

a) To describe the various approaches to management

b) To indicate how each approach is important in management

2.1 CLASSICAL APPROACH (managing work and organization)

It was the first attempt to study modern management when managers were seeking answers to the
basic and practical questions e.g. How to increase efficiency and productivity. Their concern was not
about workers, but work in terms of tools and equipment. The second concern was about the
organization which was to provide the necessary guidelines including procedures, policies, plans,
methods e.t.c

2.2 BEHAVIOURAL APPROACH (managing people)

It was developed because the classical approach could not achieve the total efficiency and work place
harmony. The behavioral approach uses the concept of psychology, sociology, philosophy, religion,
economics e.t.c, to help managers understand the human behavior at work place. The emphasis in this
approach is on the interrelationship workers, work and the organization. For work place harmony to be
realized, the following was recommended: -

(a). Motivation – The workers performance will increase if they are motivated and managers should give
it a lot of concern.

(b). Communication – The organization should have open channels of communication for 24 free flows
of information vertically and horizontally.

(c). Formation of groups – Workers should be allowed to form and join social groups to advance their
interest. The managers should not condemn them but reach out to the perceived leaders of such groups
for help.

2.3 MANAGERIAL ROLES APPROACH It was developed by Prof. Henry Mintzberg after studying 5 Chief
Executive Officers, and came to conclusion that managers do not only perform the classical functions.
They engage in a variety of other activities like: -

(a). Figure head roles Just the presence of the manager is enough. When the manager is around,
everything is okay. Leader role – a leader influence other into action. Liaison –a leader negotiates on
behalf of the workers and the department

(b) Information Roles Recipient role - receives information on behalf off. Dissemination role – passes the
information received to others Spokesperson role – speaks on behalf off

(c). Decision Roles Entrepreneur role -seeks opportunities for the company Disturbance handling role-
settles disputes and despences justice Negotiator role-negotiates on behalf off Resource allocator role-
makes decisions on the use of the company’s resources
2.4 SYSTEMS APPROACH This is a way of thinking about the management's problems because one part
or department influences the other and therefore managers should not deal with individual parts but
instead deal with the entire organization.

The organization being dynamic, the managers must anticipate the intended as well as unintended
impacts of their decisions. Managers in this approach therefore, do not deal with individual
departments, but the entire company / organization.

Revision questions

i. What are the main features of managerial roles approach

ii. What were the recommendations of the behavioralist
iii. Indicate how managers prepare to fit into the contingency approach
TOPIC THREE 3,0 THEORIES OF MANAGEMENT

By the end of this topic the learner should be able:

a. To fully explain the different theories of management

b. To discuss the relevance of modern theory of management

c. To identify the disadvantages of bureaucratic theory of management

Our study of the theory of management will focus on the three well established schools of management
theory.

 The Classical School

 The Behavioral School

 The Management Science School

THE CLASSICAL SCHOOL

This school of thought emerged around the turn of the twentieth century. It is divided into two sub
areas:

Scientific management, which historically focused on the work of individuals and

classical organization theory (administrative management which was concerned with how organizations
should be put together).

SCIENTIFIC MANAGEMENT

The main objective of Scientific Management in the early days was to determine how jobs could be
designed in order to maximize output per employee (efficiency). The main contributor to scientific
management was Frederick W. Taylor until the Husband Team of Frank and Lillian Gilbreth also added
more light to scientific management.

(a) Frederick W. Taylor and Scientific Management Taylor was an Industrial Engineer who worked in the
United States at a time when industries were facing shortage of skilled labour. For factories to
expand productivity, ways had to be looked for to increase the efficiency of employees.
Management faced questions such as, whether some elements of work could be combined or
eliminated, whether sequence of jobs could be improved or whether there was "one best way" of
doing a job. In trying to answer these questions Taylor slowly developed a body of principles that
constitute the essence of scientific management. Taylor's first job was at Midvale Steel Company in
Philadelphia:While here Taylor analysed and timed steel workers movements on a series of jobs.
With time he was able to establish the best way to do a particular job. But he noticed the workers
did not appreciate the speed factor because they feared that work would finish and they would be
laid off. So Taylor encouraged employers to pay the more productive workers at a higher rate based
on the profits that would result. This system is called the differential rate system. Taylor was
encouraged by the results of his work and decided to become a private consultant. His most
significant work was while he was consulting for two companies: Simonds Rolling Machine Factory
and Bethlehem Steel Corporation. At Simonds he studied and redesigned jobs, introduced rest
breaks and adopted a piece rate pay system. In one operation he studied 120 women employed in
tedious work with long working hours. The work involved inspecting bicycle ball bearings. Taylor
started by studying the movements of the best workers and timed them. Then he trained the others
in the methods of their more effective co-workers and either transferred or laid off the inefficient
ones. He introduced rest periods and the differential rate system and the results were that accuracy
of the work improved by two-thirds, wages rose by eighty to hundred percent, worker morale
increased and thirty five inspectors were now able to do work previously done by 120. At Bethlehem
Steel Taylor and a co-worker studied and timed the operations involved in unloading and loading
railcars. At the time each worker earned $1.15 per day unloaded an average of 12 1/2 tons. Taylor
introduced rest periods in the day and realised that each man could handle about 48 tons a day. He
set a standard of 47 1/2 tons and a rate of $1.85 for those who met the standard. The results were
increased efficiency. However despite his achievements trade unionists and workers started to resist
the ideas of Taylor and in defending his philosophy Taylor outlined that it rested on four major
principles.
 The development of a true science of management so that for example the methods for
performing each task could be determined.
 The scientific selection of the worker so that each worker would be given responsibility for the task
for which he/she was best suited.
 The scientific education and development of the worker, and
 Intimate, friendly cooperation between management and labour.

In conclusion Taylor said that the principles could only succeed if there was a complete mental
revolution on the part of both management and labour to the effect that they must take their eyes
off the profits and together concentrate on increasing production, so that the profits were so large
that they did not have quarrels about sharing them. He strongly believed that the benefits from
increased productivity would accrue to both management and labour. Principles of the Theory

(i). The principles of task idea It states that favorable conditions at work will make the workers to
perform miracles and increase productivity.
(ii). The principle of standardization According to this principle, the work activities and method of
production should be uniform to avoid biasness so as to achieve the quality product/service.
(iii). The principle of selection and training It states that proper policies and guidelines be
formulated to ensure that only qualified personnel are employed and those without the skills be
trained.
(iv). The principle of division of work It states that division of work should be undertaken because it
leads to specialization which further leads to increased production.
(v). The principle of proper use of plant It states that the organization's resources both human as
well as physical should be put to proper use. The managers should minimize their misuse.
(vi). The principle of planning - It states that planning should be the first function for any manager
because it helps to achieve the organizational goals with ease and without conflicts.
(vii). The principle of healthy working environment. It states that the work environment should be
worker friendly so as to achieve quality output.
(viii) The principle of incentives It states that the organization should their employees reasonable
salaries.
 Advantages of the theory
(i). Uniformity It gave birth to standardization of tools, working methods e.t.c which led to
uniformity.
(ii). Incentives Because of incentives, the workers performance increased greatly.
(iii). Wastage It reduced the level of wastage in production process through scientific selection and
training.
(iv). It puts emphasis on better utilization of available organization's resources.
(v). The system provides for the satisfaction of the needs of the customers by providing high quality
product/services at lower prices.
(vi). It puts emphasis on good harmonious relationships between workers and management.
(vii). It puts emphasis on proper selection, training and promotion of employees.
(viii). It has led to specialization which in turn led to increased productivity and job satisfaction.

Disadvantages of the theory

1. It puts a lot of emphasis on employee incentives but less on compensation in an event of an
accident.
2. It has overlooked the human desire for job satisfaction.
3. It assumes the social needs of workers such as forming and joining a trade union, welfare society
e.t.c
4. The techniques of scientific management dehumanize the workers by making them to 30 work
like mindless machines.
5. It rules out any bargaining about wages by emphasizing on the manager setting salaries and
wages.
6. It gives too much power to managers which cause conflict and resistance.

(b) The Gilbreths Frank (1888-1924) and Lilian (1878-1972) were a husband and wife team who also
contributed to scientific management. Lilian focused her studies on ways of promoting the welfare of the
individual worker. To her, scientific management has one ultimate aim: to help workers reach their full
potential as human beings. Lilian also assisted Frank in the areas of time and motion studies and
industrial efficiency and was an earlier contributor to personnel management. Frank who began his work
as an apprentice bricklayer, developed a technique that tripled the amount of work a bricklayer could do
in a day. He studied motion and fatigue and said that they were intertwined. Every motion that was
eliminated also reduced fatigue. Both Gilbreths argued that motion study would raise morale because of
its obvious physical benefits. They developed a three position plan of promotion that was intended to
serve as an employee development program as well as a morale booster. According to this plan a worker
would do his or her present job, prepare for the next one and train his or her successor all at the same
time. Thus every worker would always be a doer, a learner and trainer and hence workers would look
forward to new opportunities.

(c) Henry L. Gantt (1861-1919) Henry Gantt who was an associate of Taylor developed the Gantt Chart -
a device for scheduling work after a span of time. Gantt also developed the bonus system of paying
workers. Both the Gantt Chart and the bonus system of paying workers are in use in todays complex
organizations.

Limitations of Scientific Management

 During Tayor’s time, the mental revolution he advocated rarely came about and often increased
productivity and led to layoffs.

 It assumed people were rational and therefore motivated only by material gains. Taylor and his
followers overlooked the social needs of workers.

 They assumed that one had only to tell workers what to do to increase their earnings and they would
do it. But people have a need for other things other than money e.g. recognition

 They also overlooked the human desire for job satisfaction and workers became more willing to go out
on strike over job conditions than salary. So the scientific model of the worker as a rational being
interested only in higher wages became increasingly inappropriate as time went on and employer and
labourers got increasingly dissatisfied with it.

An evaluation of scientific management indicates that scientific management was developed to achieve
two objectives to increase workers' productivity and to improve workers' economic welfare. The first
objective was achieved because the methods of scientific management such as time and motion, piece
rate incentives, Gantt Chart and production standardization were accepted by industries. The second
objective was however not fully achieved. Managers used scientific management to improve workers'
productivity but they often did not see the benefits. Productivity often led to layoffs or changes in piece
rates, so that workers had to produce more for the same income. The enthusiasm for scientific
management ended around 1930.

THE CLASSICAL ORGANIZATION THEORY

This is the other branch of classical management. Classical organization theory grew out of the need to
find guidelines for managing complex organizations such as factories. Henry Fayol is recognised as the
father of classical organization theory because he was the first man to systematize managerial behaviour.
Another contributor to classical organization theory was Max Weber.

(a) Henry Fayol (1841-1925) and the Classical Organization Theory Fayol believed that sound managerial
practice falls into certain patterns that can be identified and analyzed. Fayol who was trained as a mining
engineer worked his way from a junior executive to director of the French Coal and Iron Combine
Company. Fayol often confessed that he did not attribute his success to his personal abilities but rather
to the methods that he practised. He strongly believed that management was not a personal talent 32
but a skill like any other and therefore it could be taught or learned. At the time it was generally believed
that managers were born! Fayol’s observation on principles of general management first appeared in
1916. He found out that the activities of an industrial undertaking fall into six groups.

i. Technical (Production)

ii. Commercial (Buying, selling, exchange)

[Link] (Search for use of capital)

iv. Security (Protection of employees property)

v. Accounting (Record, stocks of cost, profits, liabilities etc)

vi. Managerial
Fayol's main interest was on the last activity. He defined management in terms of five functions:

 Planning which means choosing a course of action that will help the organization achieve its goals.

 Organizing meaning mobilising resources to put plans into action

 Commanding means providing direction to employees and getting them to do their work.

 Coordination means ensuring harmony in the use of resources

 Controlling means monitoring the plans to ensure that they are being followed.

Fayol's model of management remains an approach to management today. Fayol also looked into the
qualities that are required by management and concluded that they depended on the level of the person
in the enterprise. These were physical, mental, moral, educational, technical and experience. Fayol also
developed fourteen principles of management which he felt should be applied by managers at the
operational level. He listed these principles as:

i. Division of labour: Work be divided among workers

ii. Authority and responsibility: Managers need authority to carry out responsibility
iii. Discipline: Workers should respect the rules and regulations of the organization

iv. Unity of Command: An employee would receive commands from only one supervisor.

iv. Unity of Direction: One manager should have one plan for each organizational objective.
v. Individual Subordination: The interests of the organization should come before individual
interests. vii. Remuneration: Pay should be fair and good performance should be rewarded.

viii. Centralization: There would be one point in the organization that exercises overall control.

ix. Scalar Chain: Authority should flow downwards from top to bottom through the chain of command.
x. Order: People and materials should be in the right place at the right time.

xi. Equity: Managers should be fair in dealing with employees.

xii. Stability of tenure: Efficiency can be achieved by a stable labour force.

xiii. Initiative: Employees should be given freedom to act and be innovative.

xiv. Espirit de Corps: In union there is strength, teamwork should be encouraged.

Management is universal among all organizations and Fayol argued that those with a general
knowledge of the management functions and principles can manage any type of organization. He
further advocated that these principles/functions can be learned by anybody who is interested. But
qualities such as physical health, mental vigour, moral character, which is essential for management,
cannot be learned - one must possess them. Any individual who possesses such qualities can acquire
managerial skills by learning the principles of management through formal training.