Development of Management Theories
Development of Management Theories
Development of Management Theories
ASSIGNMENT
BY
BABATUNDE DOKUN OLAYINKA
MATRIC NO : S017180
LEVEL: 6/6
DEPARTMENT:
BUSINESS EDUCATION
(ACCOUNTING OPTION)
DEVELOPMENT OF MANAGEMENT THEORIES
(THE SUMMARY)
The classical theory of management was introduced in late 19th century to the
first half of 20th Century when the organizations were addressing issues of
industrial management which includes specialization, efficiency and other top
management decisions. This theories were developed as follows; the Scientific,
the Administrative, and Bureaucratic Management theories.
Time-study Principle :The standard time to perform the job, setting up the target
for workers, determining the number of workers required to perform a job).
Piece-rate Principle: Wages should be proportion to output and the rate based of
time study principle.
Separation of Planning from performance principles: Top management decisions
should be separated from workers to enhance performance.
Scientific Method of Work Principles: Selecting the best person for job he or she
is suited scientifically.
Management – control Principle: Managers should be trained to trained the
workers.
Functional Management Principle: The strict application of military principle
should be considered.
Henri L. Ganti (1861-1919) was an engineer who worked with Tailor at Midvale
Steel Company, he strongly support the Taylor’s ideas and did much work on the
scientific selection of workers and development of incentives bonus system. He is
more cautious than Taylor in selling and installing his own management methods.
His major works are (Work, Wages and Profits, Industrial Leadership and
organization for Work. Grant’s contribution to management includes
The Scientific Management faced some criticisms such as the idea is too
mechanical, overloading the social needs of workers etc.
Luther – Halsey Gulick 1892-1993) and Lyndall Fowness Urwick (1891-1983) They
are two ardent follwes of Henri FAyol who expanded the five elements of
administrative functions and came with acronym POSDCORB as follows (Planning,
Organising, Staffing, Directing, Coordinating, Reporting, Budgeting)
This model was developed by a German Sociologist MAX WEBER (1864-1920). This
form the third stream under the classical management thought. He works on
organization structure by splitting an organization into hierarchies and
establishing strong lines of authority and control. His features are; Administrative
class, Hierarchy of Authority, Division of work and specialization, Official Rules,
Impersonal Relationship, Official Records).
There are benefits of Bureaucracy such as efficiency when it is well planned and
organized, it makes management to be easy since employees are bound to follow
the rules and regulations, the bureaucratic is impersonal hence the selection
process and promotion procedures are based on merit and expertise. Also the
organization does not suffer when some people leave it. Etc
The bureaucratic model also faced with some disadvantages such as it suffer to
much red tape and paper work, it is career oriented , it encourage monopoly of
information by superior officer etc.
The bureaucratic model also faced some criticism such as Reliance on Experience,
the assumptions made by the classical theories were not based on scientific tests.
They were only on value judgment that expressed the way they believe.
This type of theory started 1930s – 1950s. with different view from scientific
theories which treated human being as mere machine. Peretomode (2012),
claimed that classical idea under estimated the human motivation and behavior in
Management of Organization.
ELTON MAYO (1880-1949): The professor WAS BORN IN Australia in 1980. He was
a philosopher and author and others. His conclusion from Hawthome studies
were about the impact of social and peer group on the better functioning of
organization, he claimed that being an individual cannot performed as a group.
His major contributions are ; Human Relation Approach, Non-Economic Rewards,
Social Man and Organization as a social system. He was also faced with criticisms.
DOUGLAR MCGREGOR (1906-1964): Was an American social psychologist. In his
book titled the human side of Enterprise, he examined the behaviours of
individuals with his model Theory “X” and Theory “Y”
This theory was developed in early 1950s. according to Adeyemi (2006) the thory
has its focus on work behavior, the way people behave in a work environment. It
is believed that people behavior influenced productivity of workers which will
have direct effect on organization goals and efficiency. There are researchers in
this school of thought such as Chester I Barnard, Herbert Simon etc.
REFERENCE
Turan . A.E (2008) A discussion on the application of two factors, X and Ytheoroes
Ibukun, W.O (1997): Educational Management: Theory and Practice Lagos Green
Line Publishers.