Development of Management Theories

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EDU 404

ASSIGNMENT

DEVELOPMENT OF MANAGEMENT THEORIES (SUMMARY)

BY
BABATUNDE DOKUN OLAYINKA
MATRIC NO : S017180
LEVEL: 6/6

DEPARTMENT:
BUSINESS EDUCATION
(ACCOUNTING OPTION)
DEVELOPMENT OF MANAGEMENT THEORIES

(THE SUMMARY)

Management is a essential part of any Organization that involves the coordination


of resources to achieve the desired objectives. In simple terms, managements can
be defined as the process of planning, organizing, directing, and controlling the
efforts of the people working towards achieving organizational goals. It is vital
function that helps organizations to attain efficiency and effectiveness in their
operations.

Overtime, different group of people have suggested different strategies in solving


the problem of management and these strategies are referred to as the school of
management thought. According to Babalola and Attanda (2006), there are
several schools of thought in management theory and these theories are
evolutionary i.e they build on the strength and weakness of the previous ones.

There are at least four phases of development in the growth of management


thoughts which are, 1880-1930, 1931-1950, 1951- 1969 and 1970 till date.

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.

THE SCIENTIFIC THEORY

It was championed by Fredick Winslow Taylor (1856-1915) who worked in


Midvale Steel in Philadelphia as machinist and rose to the position of chief
engineer after earning a degree through evening study. His major concern was to
increase efficiency in production, and increase pay for workers through higher
productivity. He emphasized that efficiency can be achieved through workers by;

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

1. Man is goal oriented


2. Training is the responsibility of management
3. Task-settling is essential
4. Authority and Responsibility

The Cilbreths (Frank B 1868-1924:Lilian 1878-1972): This are famous husband


and wife that also support the Taylor ideal of Management, he was able to
combine his and Taylor idea together after meeting him in 1907. He later
developed three position plan for promotion

1. That a worker should train his successor


2. That a worker should carry out his work efficiently
3. That a worker should also prepare for a higher position in the organization

His ideas were to encourage an employee development

The Scientific Management faced some criticisms such as the idea is too
mechanical, overloading the social needs of workers etc.

THE ADMINISTRATIVE MANAGEMENT THEORY


This was second in classical school of management thought among the
proponents are

Henri Fayol (1841-1925) who is a French industrialist, published a book titled


Administrative Industrial and Generade where all his ideas on Administrative
theory was embedded. He sub-divided activities in industrial into six (technical,
Commercial, Financial, Security, Accounting, Managerial) activities. He was the
first to give a breakdown of functions of management in his need for
management training and principles, he set out 14 management principles which
prospective managers should follow.

They are ( Division of Labour, Authority and Responsibility, Discipline, Unity of


Command, Unity of Direction, Subordinate of Individual interest to group interest,
Remuneration, Centralization, Scalar Chain, Order, Equity, Stability of Tenure,
Initiative, Espirit de corps)

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)

THE BUREAUCRATIC MANAGEMENT THEORY

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.

THE HUMAN RELATION THEORY

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.

The human relation theory was championed by Elton Mayo, , Roathllisberger,


Dickson and Follat who conducted series of studies at the Hawthome plant in
Illinois USA.

Mary Parker (1868-1933) :She is a social worker management consultant, she


believe that group organization not only helps society but also help to improve
their lives. She believes that when people meet, they know each others more and
that diversity was the key ingredients of community and democracy. She
identified four key as building all effective management

1. Coordination by direct contact of all the people involved in whatever


capacity
2. Coordination as a continuing process
3. Coordination in the early stages
4. Coordination as the reciprocal to all the factors in a situation. These are
called follet’s principles 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”

MODERN BEHAVIOURAL THEORY

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

Martin H. (2007): Weakness of the Classical Management theories retrieved on

line from http:// www.en.articlesdratiits.com

Peretomode, V.F. (2012): Theories of management: Implication for ecucational

administration. Benin – City: Justice Jeco Printing and


Publishing Global.

Turan . A.E (2008) A discussion on the application of two factors, X and Ytheoroes

in Classroom management. American Eurasian Journal of


Scientific Research 3(1):111

Ibukun, W.O (1997): Educational Management: Theory and Practice Lagos Green

Line Publishers.

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