TOPIC 2

THEORIES OF MANAGEMENT
AIDA ABDULLAH, PhD
OUTLINE
1. Fayol’s 14 Principles of Management
2. Taylor’s scientific Management principles
3. Weber’s Bureaucracy
4. The Hawthorne studies
5. Systems Theory
6. The Contingency approach

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DEFINITION OF MANAGEMENT
• Management refers to “the process of getting things done, effectively and efficiently,
through and with other people” (Robbins, S.P and Coulter, M., 2005)
• “The Art of Getting Things Done Through Other People” (Marry Parker Follet)
• Effectively – successful, commendable/worthy/creditable
• Efficiently – competently, professionally
• People – individuals, public, societies, general public
• CIMB Foundation Corporate Resposibility – Back to School Program
• AirAsia – flight strategies in conjunction with the reopening of international borders
• Maxis – provide fiber connectivity to residents
• Sime Darby Motors – upskilling initiaves to electric vehicle technicians servicing global
automotive brands

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FAYOLISM
1. Managers in the early 1900s (nineteen hundreds) had very few external resources to draw upon to
guide and develop their management practice. But thanks to early theorists like Henri Fayol (1841-
1925), managers began to get the tools they needed to lead and manage more effectively. Fayol, and
others like him, are responsible for building the foundations of modern management theory.
2. Henri Fayol was a French mining engineer. Later he turned out to be a leading industrial and successful
manager.
3. He wrote a monograph in French in 1916 titled “General and Industrial Administration”(1841- 1925).
4. He is considered as the Father of Administrative Management Theory. Developed a general theory of
business administration that is often called Fayolism.
5. Fayolism - a theory of management that analysed and synthesized the role of management in
organizations.
6. Developed fourteen principles of management that applied to all organizational situations
7. Principles are flexibles and capable of adaptation to every need.
8. Knowing how to make use of them, which requiring intelligence, experience, decision and proportion

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FAYOL’S 14 PRINCIPLES OF MANAGEMENT

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TAYLORISM
1. Frederick Winslow Taylor is known as the begetter of Scientific Management.
2. Taylor's approach was to increase organisational productiveness by
increasing the efficiency of the production process through emphasising on the
empirical research.
3. The skilled labour was short in supply at the start of the twentieth century and
the only way of increasing productivity was by raising the efficiency of the workers
(origin of this theory is to accommodate the need of the business at that time).
4. In 1911 Frederick Winslow Taylor published his monograph “The Principles of
Scientific Management.” Taylor argued that flaws in a given work process could be
scientifically solved through improved management methods and that the best
way to increase labor productivity was to optimize the manner in which the work
was done.
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TAYLORISM
1. Develop best methodology to perform each task.
• Practice, procedure, method, approach
• Pareto rule – 80% output, 20% input
• Break into smaller pieces, take break, time management
• Based on priority of task, SMART goals
2. Managers should make sure that the best person is picked to perform the task
and to ensure that he/she gets the best training.
3. Managers are responsible for assuring that the best person selected for the job
does it by applying the best methodology.
4. Total responsibility for the work method should be removed from the worker and
should be passed on to the management, and the employee is only responsible
for the actual work performance – planning, training, educating
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TAYLOR’S SCIENTIFIC MANAGEMENT PRINCIPLES

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BUREAUCRACY THEORY
1. Max Weber was known as the father of modern sociology
2. An ideal organization to be bureaucratic – division of labour is clearly expressed and
objectives and activities were rationally thought
3. Emphasized rationality, predictability, impersonality, technical competence, and
authoritarianism
4. Paved the way for the efficient management of a very large organization
5. His ideal-typical bureaucracy, whether public or private, is characterized by: hierarchical
organization; formal lines of authority (chain of command), business has tall and narrow
structure
6. The term bureaucracy means the rules and regulations, processes, procedures,
patterns, etc. that are formulated to reduce the complexity of organization’s
functioning.
7. The best way to run an organization is to structure it into a rigid hierarchy of people
governed by strict rules and procedures.
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WEBER’S BUREAUCRACY

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THE HAWTHORNE STUDIES
1. The effect was first described in the 1950s by researcher Henry A.
Landsberger during his analysis of experiments conducted during the
1920s and 1930s.
2. The phenomenon is named after the location where the experiments took
place, Western Electric’s Hawthorne Works electric company just outside of
Hawthorne, Illinois.
3. The electric company had commissioned research to determine if there
was a relationship between productivity and work environments.

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THE HAWTHORNE STUDIES

1. Researchers concluded that the employees worked harder because they

thought they were being monitored individually.
2. Researchers hypothesized that choosing one’s own coworkers, working
as a group, being treated as special (as evidenced by working in a
separate room), and having a sympathetic supervisor were the real
reasons for the productivity increase.
3. People’s work performance is dependent on social issues and job
satisfaction, and that monetary incentives and good working conditions
are generally less important in improving employee productivity than
meeting individuals’ need and desire to belong to a group and be included in
decision making and work.

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SYSTEM THEORY
1. This approach is commonly known as ‘Systems Approach’. Its early contributors
include Ludwing Von Bertalanfty, Lawrence J. Henderson, W.G. Scott, Deniel Katz,
Robert L. Kahn, W. Buckley and J.D. Thompson.
2. They viewed organisation as an organic and open system, which is composed of
interacting and interdependent parts, called subsystems.
3. The system approach is top took upon management as a system or as “an organised
whole” made up of sub- systems integrated into a unity or orderly totality.
4. There has been an explosion of workplace management tools in light of the pandemic,
all designed to aid organizations in the development and management of their digital
workplace.
5. Digital workplace - Unified work management - aiming to boost work productivity,
enhance employee engagement and improve organization-wide collaboration.
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SYSTEM THEORY
1. System defined as a set of interrelated and interdependent parts
arranged in a manner that produces a unified whole.
2. Basic Types of Systems:
• Closed systems: Are not influenced by and do not interact with
their environment (all system input and output is internal).
• Open systems: Dynamically interact to their environments by
taking in inputs and transforming them into outputs that are
distributed into their environments.

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SYSTEMS THEORY

• An organisational system has a boundary

that determines which parts are internal
and which are external.
• A system does not exist in a vacuum. It
receives information, material and
energy from other systems as inputs.
• These inputs undergo a transformation
process within a system and leave the
system as output to other systems.
• An organisation is a dynamic system as
it is responsive to its environment. It is
vulnerable to change in its environment.

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THE CONTINGENCY APPROACH
1. Contingency Approach - sometimes called the situational approach
2. No leading theory to follow, combinations of theories to achieve the desired
results, business operate in a changing environment, on constant
environment, require them to be adaptive
▪ There is no one universally applicable set of management principles
(rules) by which to manage organizations.
▪ Organizations are individually different, face different situations
(contingency variables), and require different ways of managing.

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THE PHILOSOPHERS

REVISION

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FREDERICK TAYLOR

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 HENRY FAYOL

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ELTON MAYO AND HIS TEAM

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MAX WEBER

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 THE END

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